Uranium (Yeelirrie) Agreement Act 1978

ship in its requirements of fuel oil and caustic soda through the ports of Esperance or Geraldton or such other port or ports as the Minister may approve; and

ship out its products from the treatment plant through the port of Fremantle or such other port or ports as the Minister may approve

Notwithstanding subclause (1) of this Clause, the Corporation may negotiate with third parties already operating at the port of Esperance or Geraldton or such other port or ports as the Minister may approve with a view to sharing at no cost to the State port facilities already provided by others.

The Corporation shall pay to the appropriate Port Authority all relevant charges properly and lawfully levied by that authority from time to time.

In the event of the Corporation demonstrating to the satisfaction of the Minister that the provisions of sub‑clause (1) of this Clause would be unduly prejudicial to its operations, or if the State Energy Commission is unable to provide supply, the Corporation may —

in accordance with its approved proposals hereunder and subject to the provisions of the Electricity Act and the approval and requirements of the State Energy Commission, install and operate without cost to the State, at an appropriate location equipment to generate electricity of sufficient capacity for its operations hereunder;

transmit power within the mining areas and from the mining areas to the town or elsewhere subject to the provisions of the Electricity Act and the approval and requirements of the State Energy Commission; and

subject to the provisions of the Electricity Act and the requirements of the State Energy Commission sell power transmitted pursuant to paragraph (b) of this subclause to third parties within the mining areas and to third parties elsewhere.

In the event that the Corporation is unable to procure easements or other rights over laid required for the purposes of subclause (2) of this Clause on reasonable terms the State shall assist the Corporation to such extent as may be reasonably necessary to enable it to procure the said easements or other rights over land.

Notwithstanding the provisions of the State Energy Commission Act the State may at any time give to the Corporation 12 months notice of its intention to acquire and may thereafter acquire the Corporation’s electricity facilities or any part thereof up to the first point of voltage breakdown or such other appropriate point as may be agreed, at a price to be agreed between the parties and the Corporation shall take all such steps as may be necessary to effect the acquisitions. The State undertakes that in such event the Corporation shall for its purposes hereunder have such priority on the power generated and transmitted by such electricity facilities so acquired as is agreed between the State and the Corporation at the time of the said acquisition and the State undertakes subject only to its inability to supply power for any of the reasons set forth in Clause 36 to supply the Corporation with power for its purposes hereunder up to the normal continuous full load capacity (after allowing for standby plant) of the electricity facilities so acquired and that in the event of such inability to supply power occurring the State shall take all possible steps to restore such supply regardless of the time or day when such inability arises and may call upon the Corporation to provide employees for that purpose at the State’s expense.

In the event of the State acquiring the Corporation’s electricity facilities the Corporation shall pay to the State Energy Commission the cost of all electricity supplied to the Corporation by the State Energy Commission at a rate equal to the standard tariff from time to time applying to the State Energy Commission’s system. In the event that the Corporation’s cost of operating the electricity facilities (including inter alia appropriate capital charges) at the time of the said acquisition is less than the standard tariff time to time applying, then the State Energy Commission and the Corporation shall negotiate such reduction in tariff from time to time as will ensure that the cost of electricity to the Corporation is no more than the cost it would have paid had it continued to operate such electricity facilities. The State Energy Commission’s rate for electricity supplied determined as aforesaid shall apply only in respect of an amount of electricity equal to the continuous full load capability (after allowing for standby plant) of the electricity facilities so acquired and the Corporation shall pay for all electricity supplied to it by the State Energy Commission in excess of such amount at the State Energy Commission’s standard tariff applicable from time to time. Should the Corporation desire to expand its operations hereunder and for that purpose require power beyond the continuous full load capacity of the electricity facilities so acquired the Corporation shall give to the State 30 months’ notice of its additional power requirements and the State shall thereupon cause the State Energy Commission to negotiate with the Corporation the terms and conditions under which the additional generating capacity required to meet the needs of such expansion may be implemented.

Should the Corporation’s relevant approved proposal provide for the State Energy Commission to reticulate electricity to houses occupied by the Corporation’s workforce and by any other persons connected directly with the Corporation’s operations whether employees or not and to commercial establishments directly connected with such operations, the Corporation shall sell to the State Energy Commission in bulk electricity in sufficient quantities to meet the needs of such workforce persons and establishments at a price equal to the Corporation’s actual cost of generating and transmitting such electricity including, inter alia, appropriate capital charges.

If the State Energy Commission desires to purchase power for its own use and the Corporation has the ability to supply such power, the Corporation shall use its best endeavours to supply under such terms and conditions to be negotiated between the State Energy Commission and the Corporation, and the Corporation shall in that event be empowered to supply such power.

Subject to the performance by the Corporation of its obligations under this Agreement and the Mining Act and notwithstanding any provisions of the Mining Act to the contrary, the term of the mineral lease shall be for a period of 21 years commencing from the date of receipt of application with the right during the currency of this Agreement to take successive renewals of the said term each for a period of 21 years upon the same terms and conditions subject to the sooner determination of the said term upon the cessation or determination of this Agreement such right to be exercisable by the Corporation making written application for any such renewal not later than 1 month before the expiration of the current term of the mineral lease.

The State shall ensure that during the currency of this Agreement and subject to compliance with its obligations hereunder the Corporation shall not be required to comply with the labour conditions imposed by or under the Mining Act in regard to the mineral lease.

The State shall not during the currency of this Agreement register any claim or grant any lease or other mining tenement under the Mining Act or otherwise by which any person other than the Corporation or an associated company will obtain under the laws relating to mining or otherwise any rights to mine or take the natural substances (other than petroleum as defined in the Petroleum Act 1967) within the mineral lease and so long as the Temporary Reserve created pursuant to Clause 5 remains in force, within that Temporary Reserve and within the areas of any blue mineral claims or surrendered blue mineral claims (as defined in sub‑clause (7) of this Clause) which are not included in the mineral lease.

Subject to compliance with the requirement of any Act Regulation or By‑Law from time to time in force the Corporation may for the purposes of this Agreement remove stone sand clay or gravel from the mineral lease.

Notwithstanding the provision of this Clause the Corporation may with the consent of the Minister for Mines from time to time (with abatement of future rent in respect to the area surrendered but without any abatement of the rent already paid or any rent which has become due and has been paid in advance) surrender to the State all or any portion or portions (of reasonable size and shape) of the mineral lease.

In respect of mineral claims which the Corporation holds over the areas bordered blue on the said plan marked “A” (in this Clause called “blue mineral claims”) at the date application is made for a mineral lease pursuant to subclause (1) of this Clause (in this Clause called “the application date”) —

The State shall ensure that subject to compliance with its obligations under this Agreement the Corporation shall not be required to copy with the labour conditions imposed by the Mining Act.

The Corporation shall continue to carry out a programme of exploration in respect of the blue mineral claims and report on the results of such exploration to the Minister for Mines at yearly intervals after the application date.

The Corporation may surrender all or any of the blue mineral claims during a period of 5 years following the date the treatment plant comes into operation on any anniversary of the application date, and at the end of such period shall surrender all other blue mineral claims held by it.

The Corporation shall have the right in respect of blue mineral claims surrendered, at the respective times of surrender referred to in paragraph (c) of subclause (7) of this Clause to apply for and have included in the mineral lease such of the areas of those surrendered blue mineral claims as the Corporation elects.

At any times the Corporation applies pursuant to subclause (8) of this Clause, to have included in the mineral iron lease the areas of surrendered blue mineral claims, the parties may agreed to also include in the mineral lease such of the red areas as are necessary for the Corporation’s operations hereunder.

Any land included in the mineral lease pursuant to subclauses (8) and (9) of this Clause shall be upon and subject to the same terms covenants and conditions as apply to the mineral lease (with such apportionment of rents as is necessary) and shall be deemed to be included in the mineral lease as and from the date of surrender of the applicable blue mineral claim notwithstanding that the survey of such additional land has not been completed (but subject to correction to accord with the survey when made at the Corporation’s expense).

The provisions of subclauses (7) (8) (9) and (10) of this Clause shall take effect notwithstanding the provisions of the Mining Act.

The State shall in accordance with the Corporation’s approved proposals grant to the Corporation or arrange to have the appropriate authority or other interested instrumentality of the State grant for such periods and on such terms and conditions (including renewal rights) as shall be reasonable having regard to the requirements of the Corporation leases and where applicable licences easements and rights of way for all or any of the purposes of the Corporation’s operations hereunder.

(a) The State shall upon the Corporation surrendering Yeelirrie Station Pastoral Lease No. 3114/620 cause to be granted to the Corporation a special lease under the Land Act of the area bordered green on the said plan marked “A” for the purpose of creating a buffer zone for the Corporation’s operations hereunder for such periods and on such terms and conditions (including renewal rights) as shall be reasonable having regard to the requirements of the Corporation.

The State shall at the request of the Corporation from time to time cause to be added to the special lease referred to in paragraph (a) of this subclause so much of —

the area bordered dotted green on the said plan marked “A”;

the area of any surrendered blue mineral claims (as defined in sub‑clause 7 of Clause 21) which are not included in the mineral lease; and

the area of the expired Temporary Reserve created pursuant to Clause 5;

The State shall at the Corporation’s expense resume such land as may be necessary for the grant of the special lease or any extension of the area thereof under this subclause.

Notwithstanding the provisions of the Land Act and the Mining Act the land contained in the lease granted under paragraph (a) of this subclause shall be deemed to be Crown land for the purposes of the Mining Act.

For the purpose of, this Agreement in respect of any land sold or leased to the Corporation by the State the of Land Act shall be deemed to be modified by —

the substitution for subsection (2) of section 45A or the following subsection —

the deletion of the proviso to section 116;

the deletion of section 135;

the deletion of section 143;

the inclusion of a power to grant occupancy rights over land on such terms and conditions as the Minister for Lands may determine;

the inclusion of a power to offer for sale or leasing land within or in the vicinity of the townsite notwithstanding that the townsite has not been constituted a townsite under section 10;

the inclusion of a power to offer for sale or grant leases or licences for terms or periods and on such terms and conditions (including renewal rights) and in forms consistent with the provisions of this Agreement in lieu of the terms or periods, the terms and conditions and the forms referred to in the Land Act.

Notwithstanding the provisions of the Sale of Land Act 1970 the Corporation shall, subject to the prior consent of the Minister, have the right after the declaration of the townsite under section 10 of the Land Act and during the currency of any lease or leases or occupancy rights granted to it under subclause (1) of this Clause to enter into an agreement to sell at a price to be approved by the Minister any lot the subject of such lease or leases or occupancy rights on condition that the purchaser erects on such lot within 2 years from the date of such agreement, buildings or structures the cost of which is not less than $15 000 for each such lot or in the case of dwelling houses when averaged over the lot being purchased not less than $10 000 for each thousand square metres of such lot.

provide at the townsite such housing accommodation services and works (including sewerage reticulation and treatment works water supply works and main drainage works and also social cultural and civic facilities) as may be necessary in order to provide for the needs of persons (and the dependants of those persons) connected directly with the Corporation’s operations under this Agreement, whether or not such persons are employed by the Corporation;

provide at the townsite all necessary public roads and buildings required for educational, hospital, medical, police, recreation, fire and other services;

provide all equipment required for the operation and proper functioning of the services and works referred to in sub‑paragraphs (i) and (ii) of this paragraph;

service maintain and where necessary repair and renovate the housing accommodation services roads and works mentioned in subparagraphs (i) and (ii) of this paragraph;

(subject to and in accordance with by‑laws from time to time to be made and altered by the Corporation which include provisions for fair and reasonable prices rentals or charges or if no such by‑laws are made or in force then at such prices rentals or charges and upon and subject to such terms and conditions as are fair and reasonable) ensure that the said housing accommodation services and works are at all times readily available to persons requiring the same being employees licencees or agents of the Corporation or persons engaged in providing a legitimate and normal service to or for the Corporation or its employees licencees or agents including the dependants of such persons; and

ensure that the roads buildings and other works mentioned in subparagraph (ii) of this paragraph and the equipment mentioned in subparagraph (iii) of this paragraph are readily available free of charge to the State.

Nothing contained in paragraph (a) of this subclause shall be construed as placing on the Corporation an obligation to provide and pay for personnel required to operate the educational hospital medical or police services mentioned in that paragraph.

The Corporation shall at its cost or with finance arranged by it equip all the buildings mentioned in paragraph (a) of subclause (1) of this Clause to the extent and of a standard at least equal to that normally adopted by the State in similar types of buildings used for similar purposes in comparable townsites.

The Corporation shall at its cost or with finance arranged by it provide adequate housing accommodation for married and single staff directly connected with the educational hospital medical and police services mentioned in subparagraph (i) and (ii) of paragraph (a) of subclause (1) of this Clause.

If the approved proposals provide for the assimilation into any existing town of the whole or part of the Corporation’s workforce (including their dependants) and any other persons (including their dependants) connected directly with the Corporation’s operations (whether employees of the Corporation or not) whereby the normal population of such existing town is significantly increased then the Corporation to the extent necessary to provide for the needs of the said increase in population of much existing town shall bear the cost of the provision at that existing town of the matters mentioned in subparagraphs (i) (ii) and (iii) of paragraph (a) of subclause (1) of this Clause. The said additional housing services works and equipment may be provided by the State or by another party under an agreement with the State and in either case shall be to the extent and of a standard at least equal to that normally adopted by the State in similar types of buildings used for similar purposes in comparable towns. The Corporation shall pay to the State or such other party such proportion of the cost of such additional housing cervices works and equipment as is fair and reasonable having regard to the extent of the said increase in the population of such existing town.

Should the approved proposals place an obligation on the State to provide for any of the matters mentioned in subparagraphs (i) (ii) and (iii) of paragraph (a) of subclause (1) of this Clause or require the State to procure and accept the responsibility of the provision of any services and facilities the State shall provide or procure the provision of the same but (unless the approved proposals otherwise provide) subject to the following conditions namely —

that the State is satisfied that the need to provide such services and facilities results from or is reasonably attributable to the Corporation’s operations under this Agreement; and

the Corporation agrees to bear the capital cost involved and thereafter to pay reasonable charges for the maintenance and operation of the said services or facilities other than the operation charges in respect of education hospital medical and police services.

Notwithstanding the provisions of this Clause the State shall during the currency of this Agreement continue to investigate ways of assisting the Corporation in providing the services and facilities required to be provided by the Corporation pursuant to this Clause.

Unless and until the townsite concerned is declared a townsite pursuant to section 10 of the Land Act or otherwise with the consent of the Minister, the Governor in Executive Council may upon the recommendation of the Corporation make alter and repeal by‑laws for the purpose of enabling the Corporation to fulfil its obligations under this Clause upon terms and subject to conditions (including terms and conditions as to user charging and limitation of the liability of the Corporation) consistent with the provisions hereof at any time it appears that any by‑law made hereunder has as a result of altered circumstances become unreasonable or inapplicable then the Corporation shall recommend to the Governor that he makes such alteration or repeal thereof as the State may reasonably require or (in the event of there being any dispute as to the reasonableness of such requirement) as may be decided by arbitration as herein provided.

If at any time the Minister is of the opinion that it would be desirable that the sewerage facilities operated by the Corporation under subclause (1) of this Clause be controlled and operated by the State, the Minister may (after first affording the Corporation a reasonable opportunity to consult with him) on giving 6 months prior notice to the Corporation of his intention, acquire the Corporation’s sewerage facilities for a monetary consideration to be determined by the Minister. Thereafter in respect of sewerage facilities operated by or on behalf of the State within the town rates and charges as levied from time to time pursuant to the provisions of the Country Towns Sewerage Act 1948 shall apply.

For the purpose of this Clause the expression f.o.b. value means the gross sales price for uranium oxide produced from the mineral lease (whether sold as such or converted outside Australia to uranium hexafluoride) the subject of any shipment or sale which is payable by the purchaser thereof to the Corporation or an associated company, less all export duties and export taxes payable on or in respect of such uranium oxide and less all costs and charges properly incurred and payable on or in respect of such uranium oxide by the Corporation or an associated company to the State or a third party from the time when the uranium oxide is placed on ship to the time when the uranium oxide or the uranium hexafluoride is delivered and accepted by the purchaser, there being included in such costs and charges —

directly related discounts and commissions;

ocean freight;

marine insurance;

costs of compliance with international safeguard requirements;

port and handling charges at port of discharge;

in the case of uranium oxide shipped but not sold the cost whether payable to a third party or not (including the cost of capital) to the Corporation of retaining ownership of the uranium oxide from the point of export from Australia until the same is delivered to and accepted by the purchaser. For the purposes of this paragraph “the cost of capital” shall be deemed to be interest on that capital during the period referred to in this paragraph calculated at the maximum bank interest rate for trading bank overdrafts with limits of less than $100 000 as published in the Reserve Bank of Australia Statistical Bulletin as applying at the date of shipment from Australia;

costs of delivery (including warehousing costs) from port of discharge to the purchaser;

weighing, sampling, assaying, inspection and representation costs incurred on discharge or delivery;

shipping agency charges;

import taxes payable in the country of the port of discharge;

demurrage incurred after loading and at port of discharge;

the cost of conversion from uranium oxide to uranium hexafluoride, where applicable, including the convertors’ service charge; and

such other costs and charges as the parties (having regard inter alia to such matters as the parties to and the bona fide nature of the transaction as the result of which the cost or charge was incurred) shall agree to include or failing agreement as fixed by arbitration as hereinafter provided.

The Minister may from time to time after consultation with the Corporation in respect of either the f.o.b. value or any of the costs or charges mentioned in Items (a) to (m) (inclusive) in subclause (2) of this Clause incurred in relation any particular shipment or sale notify the Corporation that he does not regard the f.o.b. value as calculated by the Corporation as being a true and proper value calculated on an arms length basis or a cost or charge as being properly incurred (having regard inter alia to the terms and conditions of the relevant sale agreement and all the circumstances prevailing at the time the relevant sale price was agreed between the Corporation and the purchaser and any reduction in the f.o.b. value as a result of prepayment arrangements), and in that event the Minister shall determine the f.o.b. value and/or treat the charge (as the case may be) as not being properly incurred.

Should the Corporation disagree with the Minister’s decision under subclause (3) of this Clause it may refer the matter in question to arbitration as hereinafter provided but unless and until it is otherwise determined the f.o.b. value as set by the Minister shall be used as the basis for the calculation of royalty under subclause (1) of this Clause. If by the award on arbitration the dispute is determined in favour of the Corporation the State shall refund to the Corporation any royalty overpaid by the Corporation (with interest if the award so provides),

The rate of royalty payable pursuant to subclause (1) and the method of determining it pursuant to sub‑clauses (2) (3) and (4) of this Clause shall be reviewed and fixed by the Minister after consultation with the Corporation, 7 years after the date the treatment plant comes into operation and thereafter as at the last day of each succeeding period of 5 years.

The Corporation shall pay to the State in respect of all minerals other than uranium oxide produced from the mineral lease and shipped or sold by it royalties at the rates from time to time prescribed under or pursuant to the provisions of the Mining Act.

The Corporation shall during the continuance of this Agreement within 14 days after the following quarter days (in this subclause referred to as “the due date”) namely the last days of March June September and December in each year (commencing with the quarter day next following the date the treatment plant comes into operation) furnish to the Minister a return showing the quantity of all minerals on which royalty is payable hereunder and shipped or sold during the quarter immediately preceding the due date of the return and shall not later than two months after such due date pay to the Minister the amount of royalty payable hereunder calculated on the basis of the invoices or provisional invoices (as the case may be) rendered by the Corporation to the purchaser (which invoices the Corporation shall render without delay and simultaneously shall furnish copies thereof to the Minister) and shall from time to time when the f.o.b. value realised in respect of the shipments has been ascertained in the next following appropriate return and payment, make (in the return and by cash) all such necessary adjustments and give to the Minister full details thereof.

The Corporation shall permit the Minister or his nominee at all reasonable times to inspect the books of account and records of the Corporation relative to the Corporations operations hereunder and to any shipment or sale of uranium oxide including sales contracts and to take copies or extracts therefrom. For the purpose of determining the f.o.b. value payable in respect of any shipment or sale of uranium oxide hereunder the Corporation shall take reasonable steps (either by the certificate of a competent independent party acceptable to the Minister or otherwise to the Minister’s satisfaction) to satisfy the State as to the correctness of all relevant weights assays and analyses and shall give due regard to any objection or representation made by the Minister or his nominee as to any particular weight assay or analysis that may affect the amount of royalty payable hereunder. The information obtained by the Minister or his nominee as a result of any such inspection shall be used only for the purposes of verifying the amount of royalty payable by the Corporation and for no other purpose and shall not be disclosed by the State the Minister or his nominee to any other party for any other purpose.