Common use of Railways Clause in Contracts

Railways. (1) Subject to the by-laws made under the Government Railways Act, 1904, (insofar as those by-laws are not inconsistent with this Agreement) and subject to the provisions of this Clause the Company shall consign at its own risk, and the State shall cause the Railways Commission to transport, by rail, all the Company’s requirements of — (a) ore and nickel-containing products from the railhead at ▇▇▇▇▇▇▇ to the plant site of Lake View and Star Limited at Fimiston or to any other processing plant in the vicinity of Kalgoorlie approved by the Minister; and (b) nickel-containing products from Fimiston or ▇▇▇▇▇▇▇ to Esperance or such other port as may be approved hereunder. (2) The Company shall from time to time as required by the Railways Commission pay to the State a sum or sums to be agreed between the parties towards the cost of upgrading or reconstructing the existing railway line between ▇▇▇▇▇▇▇ and Kalgoorlie in narrow gauge (3 feet 6 inches) in accordance with proposals from time to time approved under Clause 5 (including the cost of providing inter alia any deviations, loops, spurs, sidings, crossings, points, bridges, and other works and appurtenances) to achieve a capacity to enable the Railways Commission to transport ore or nickel concentrates at a rate not exceeding seven hundred thousand (700,000) tons per annum and all other rail freight required by the Company for its operations hereunder for a period of five (5) years from the date on which rail haulage of the Company’s ore or nickel concentrates commences. (3) Not later than eighteen (18) months after the date of commencement of haulage of ore referred to in subclause (2) of this Clause the Company shall give notice to the State of its estimated future rail transport requirements hereunder (including provisional annual tonnages) of ore and nickel-containing products. (4) On receipt of the notice referred to in subclause (3) of this Clause the State shall cause the Railways Commission in consultation with the Company to prepare a specification (including all necessary plans and bills of quantities) of the works required to further upgrade or reconstruct the existing ▇▇▇▇▇▇▇ to Kalgoorlie railway line in narrow gauge (3 feet 6 inches) to enable the Railways Commission to transport the Company’s rail freight to the extent specified and in accordance with the said notice. (5) As soon as practicable after completion of the specification mentioned in subclause (4) of this Clause the State shall cause the Railways Commission to call tenders in accordance with the said specifications. The amount of each tender received by the Railways Commission pursuant to this subclause shall be notified to the Company. (6) The Company shall pay to the State a sum or sums to be agreed between the parties as being the Company’s fair share of the cost of the works referred to in subclause (4) of this Clause having regard to the proposed use of the works by the Company. (7) In the event that the State requires all or any part of the works referred to in either or both of subclauses (2) and (4) of this Clause to be completed in standard gauge (4 feet 8 inches) the State may in its discretion so proceed in which case the Company’s contribution will be a sum to be determined by the Railways Commission not exceeding the amount which would have been payable by the Company if the works had been completed in narrow gauge (3 feet 6 inches). (8) The Company shall — (a) pay to the State a sum or sums to be agreed between the parties towards the cost of providing any new railway required for the purpose of the operations of the Company hereunder (including all necessary land acquisitions, loops, spurs, sidings, crossings, points, bridges and other works and appurtenances) to enable the Railways Commission to transport the Company’s rail freight in the course of its operations hereunder; (b) at its own cost provide and maintain such sidings, shunting loops, spurs and other connections as are required solely for its operations hereunder and provide and maintain loading and unloading facilities sufficient to meet train operating requirements and terminal equipment (including weighing device), together with a staff adequate to ensure the proper operation of all such loading and unloading facilities and terminal equipment; (c) if required by the State contribute to the cost of reconstructing the railway between Kalgoorlie and an agreed terminal point on the plant site of Lake View and Star Limited at Fimiston or at any other processing plant in the vicinity of Kalgoorlie approved by the Minister. (9) The Company shall — (a) If required by the Railways Commission provide sufficient wagons (including spare wagons) and necessary replacements except replacements made necessary by the wilful misconduct of the Railways Commission (to a design and specification approved by the Railways Commission) to carry all the Company’s requirements of ore and nickel concentrates in the course of its operations hereunder; and (b) if required by the Railways Commission provide sufficient locomotives and brakevans (to a design and specification approved by the Railways Commission) for the transport of all rail freight offering in the course of its operations hereunder and lease such locomotives and brakevans to the Railways Commission on such terms and conditions as may be agreed by the parties. (10) Subject to the provisions of paragraph (b) of subclause (8) of this Clause the State shall at its own expense maintain and service all railways, locomotives, brakevans and wagons necessary for the purposes of this Agreement. (11) In addition to the provisions of subclause (3) of this Clause the Company shall provide to the satisfaction of the Railways Commission adequate notice in advance of its requirements (including anticipated tonnages in each year) as to the use of the railway to enable the Railways Commission to make arrangements to meet those requirements and shall thereafter give adequate notice of any change in those requirements. In particular the Company shall agree with the Railways Commission the pattern of working including weekly and monthly despatches and the hours of working. (12) The Company shall ensure that all wagons are properly trimmed and loaded to the tonnages prescribed in the First Schedule hereto. (13) The Company shall pay to the State freight in respect of all commodities specified in the First Schedule hereto carried by the Railways Commission pursuant to this Agreement at the appropriate freight rates and in the manner set out in that schedule.