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This is a Bill, not an Act. For current law, see the Acts databases.
Western Australia
Mineral Sands (Eneabba) Agreement
Amendment Bill 2008
CONTENTS
1. Short title 2
2. Commencement 2
3. Act amended 2
4. Section 2 amended 2
5. Section 5 inserted 2
5. 2008 Variation Agreement 2
6. Schedule 3 inserted 3
Schedule 3 -- The 2008 Variation Agreement
006--1 page i
Western Australia
LEGISLATIVE ASSEMBLY
Mineral Sands (Eneabba) Agreement
Amendment Bill 2008
A Bill for
An Act to amend the Mineral Sands (Eneabba) Agreement Act 1975.
The Parliament of Western Australia enacts as follows:
page 1
Mineral Sands (Eneabba) Agreement Amendment Bill 2008
s. 1
1. Short title
This is the Mineral Sands (Eneabba) Agreement Amendment
Act 2008.
2. Commencement
5 This Act comes into operation as follows --
(a) sections 1 and 2 -- on the day on which this Act
receives the Royal Assent;
(b) the rest of the Act -- on the day after that day.
3. Act amended
10 This Act amends the Mineral Sands (Eneabba) Agreement
Act 1975.
4. Section 2 amended
In section 2 before the definition of the Agreement insert:
15 the 2008 Variation Agreement means the agreement a
copy of which is set out in Schedule 3;
5. Section 5 inserted
After section 4 insert:
20
5. 2008 Variation Agreement
(1) The 2008 Variation Agreement is ratified and its
implementation is authorised.
(2) Without limiting or otherwise affecting the application
25 of the Government Agreements Act 1979, the 2008
Variation Agreement operates and takes effect despite
any other Act or law.
page 2
Mineral Sands (Eneabba) Agreement Amendment Bill 2008
s. 6
6. Schedule 3 inserted
After Schedule 2 insert:
Schedule 3 -- The 2008 Variation Agreement
5 [s. 2]
THIS AGREEMENT is made this 28th day of July 2008
BETWEEN
THE HONOURABLE ALAN JOHN CARPENTER MLA.,
Premier of the State of Western Australia acting for and on behalf
10 of the said State and its instrumentalities from time to time (State)
AND
ILUKA RESOURCES LIMITED ACN 008 675 018 of Level 23,
140 St Georges Terrace, Perth, Western Australia (Company).
RECITALS
15 A. The State and the Company are now the parties to the
agreement dated 27 June 1975 which was ratified by and is
scheduled to the Mineral Sands (Eneabba) Agreement Act 1975
and which as subsequently varied is referred to in this
Agreement as the "Principal Agreement".
20 B. In order to prolong the economic life of its Narngulu mineral
processing facilities as the quantities of heavy mineral
concentrates produced from the Mining Lease diminish, the
Company wishes, as part of its operations under the Principal
Agreement, to handle at such facilities the separation into heavy
25 minerals of heavy mineral concentrates produced from its
Jacinth-Ambrosia Project in South Australia and, with the
Minister's consent, of heavy mineral concentrates produced by
itself or third parties from other projects within Australia or
overseas.
30 C. The State for the purpose of promoting the development of the
heavy minerals sands industry generally in Western Australia
and employment opportunities generally in the Mid-West region
page 3
Mineral Sands (Eneabba) Agreement Amendment Bill 2008
s. 6
of Western Australia has agreed to vary the Principal Agreement
upon the terms and conditions set out in this Agreement to
enable the Company to undertake such new activities as part of
its operations under the Principal Agreement.
5 THE PARTIES AGREE AS FOLLOWS:
1. Subject to the context, the words and expressions used in this
Agreement have the same meanings respectively as they have in
and for the purpose of the Principal Agreement.
2. The State shall introduce and sponsor a Bill in the Parliament of
10 Western Australia to ratify this Agreement and endeavour to
secure its passage as an Act prior to 31 December 2008 or
such later date as the parties may agree.
3. (1) Clause 4 does not come into operation unless or until an
Act passed in accordance with clause 2 ratifies this Agreement.
15 (2) If by 31 December 2008, or such later date as may be
agreed pursuant to clause 2, clause 4 has not come into
operation then unless the parties hereto otherwise
agree this Agreement shall cease and determine and
neither party hereto shall have any claim against the other
20 party with respect to any matter or thing arising out of
done performed or omitted to be done or performed under
this Agreement.
(3) On clause 4 coming into operation all the provisions of
this Agreement will operate and take effect despite any
25 enactment or other law.
4. The Principal Agreement is hereby varied as follows:
(1) in clause 1:
(a) by inserting the following new definitions in their
appropriate alphabetical position:
30 "Jacinth-Ambrosia Project" means the project,
currently being undertaken by the Company, in the
Eucla Basin of South Australia for the mining and
concentration of rock soil or sand bearing heavy
minerals;
page 4
Mineral Sands (Eneabba) Agreement Amendment Bill 2008
s. 6
"Narngulu mineral processing facilities" means the
Meru separation plant, the Narngulu synthetic
rutile plant and associated facilities constructed
under this Agreement at Narngulu;
5 "Non-Mining Lease ore" means any rock soil or
sand bearing heavy minerals mined from areas
other than within the Mining Lease and whether
within or outside Australia;
(b) by deleting the definition of "heavy mineral
10 concentrates" and substituting the following new
definition:
"heavy mineral concentrates" means:
(a) ore;
(b) Non-Mining Lease ore,
15 concentrated prior to separation into component
heavy minerals;"
(2) in clause 6C(2) by deleting "section 40(1)(b)" and
substituting "Part IV";
(3) by deleting "If " at the beginning of clause 7 and
20 substituting "Subject to Clause 7A, if ";
(4) by inserting after clause 7 the following new clause:
"Non-Mining Lease heavy mineral concentrates
7A. (1) During the continuance of this Agreement
and while the Company is still mining ore
25 from the Mining Lease the Company may,
subject to the EP Act and the other
provisions of this Agreement, submit to the
Minister its fully detailed proposals
(including, in connection with any proposed
30 new works or modifications to existing
works, plans where practicable and
specifications where reasonably required by
the Minister and any other details normally
required by a local government in whose
page 5
Mineral Sands (Eneabba) Agreement Amendment Bill 2008
s. 6
area any such new or modified works are to
be situated) with respect to the separation
into heavy minerals at the Narngulu mineral
processing facilities of heavy mineral
5 concentrates produced from the
Jacinth-Ambrosia Project, and subject to
subclause (5) from other Non-Mining Lease
ore, and if the Company so wishes the
production at the Narngulu mineral
10 processing facilities of heavy mineral
products from such heavy minerals, and the
transport and shipment of such heavy
minerals and heavy mineral products
produced which proposals shall include the
15 location, area, lay-out, design, quantities,
materials and time programme for the
commencement and completion of
construction or the provision (as the case
may be) of each of the following matters:
20 (a) the unloading and storage at the port
of heavy mineral concentrates to be
used in such operations;
(b) the transport by road of such heavy
mineral concentrates from the port to
25 the Narngulu mineral processing
facilities;
(c) the modif ication or expans ion
of the Narngulu mineral processing
facilities including, without limitation,
30 by the construction of new works as
part of those facilities;
(d) the separation of such heavy minerals
concentrates into heavy minerals;
(e) the production (if the Company so
35 wishes) of any heavy mineral
products from such hea vy miner als
page 6
Mineral Sands (Eneabba) Agreement Amendment Bill 2008
s. 6
inclu ding, wit hout limitation,
synthetic rutile from ilmenite;
(f) water supplies;
(g) gas and electricity supplies;
5 (h) the transport by road of such heavy
minerals and heavy mineral products
from the Narngulu mineral
processing facilities to the port for
export;
10 (i) storage and ship loading facilities at
the port for such export;
(j) the storage upon the Mining
Lease during the cont inua nce of
this Agr eement of monazite and
15 any other heavy minerals separated
from the heavy mineral concentrates;
(k) disposal of waste rock and tailings;
(l) any other works, services or facilities
desired by the Company in connection
20 with the proposed operations; and
(m) subject to subclause (5)(c), any leases,
licences or other tenure of land
required from the State;
(n) measures to be taken for the
25 protection and management of the
environment including rehabilitation
and/or restoration of storage areas
upon the Mining Lease.
(2) Any of the proposals pursuant to
30 subclause (1) may with the approval of the
Minister, be submitted separately and in any
order as to the matters mentioned in one or
more of paragraphs (a) to (n) of
subclause (1). Until all of its proposals under
page 7
Mineral Sands (Eneabba) Agreement Amendment Bill 2008
s. 6
this Clause have been approved the
Company may withdraw and may resubmit
any proposal but the withdrawal of any
proposal shall not affect the obligations of
5 the Company to submit a proposal under this
Clause in respect of the subject matter of the
withdrawn proposal.
(3) The Company shall, whenever any of the
following matters referred to in this
10 subclause are proposed by the Company
(whether before or during the submission of
proposals under this Clause), submit to the
Minister details of any services (including
any elements of the project investigations,
15 design and management) and any works,
materials, plant, equipment and supplies that
it proposes to consider obtaining from or
having carried out or permitting to be
obtained from or carried out outside
20 Australia, together with its reasons therefore
and shall, if required by the Minister, consult
with the Minister with respect thereto.
(4) The provisions of subclauses (5) and (6) of
Clause 6B and the provisions of Clause 6C
25 shall mutatis mutandis apply to detailed
proposals submitted pursuant to this Clause
including pursuant to subclause (6) of this
Clause. For the avoidance of doubt the
reference in subclause (1)(b) of Clause 6C to
30 "subclause (3) of Clause 6B" is to be read as
a reference to subclause (1) of this Clause.
(5) Notwithstanding any other provisions of this
Agreement the Company shall not without
the Minister's prior consent submit
35 proposals under this Clause:
(a) in respect of more than 600,000
tonnes (in aggregate) of heavy
minerals concentrates; or
page 8
Mineral Sands (Eneabba) Agreement Amendment Bill 2008
s. 6
(b) in respect of heavy mineral
concentrates obtained other than from
the Jacinth-Ambrosia Project; or
(c) for the grant of any leases, licences or
5 other tenure to support the
undertaking of operations pursuant to
such proposals; or
(d) to bring heavy mineral concentrates
into Western Australia otherwise than
10 through the port or to export heavy
minerals or heavy mineral products
obtained from such heavy minerals
otherwise than through the port.
(6) Subject to subclause (5) if the Company at
15 any time during the continuance of this
Agreement desires to significantly modify
expand or otherwise vary its activities in
relation to Non-Mining Lease ore that are
the subject of this Agreement and that may
20 be carried on by it pursuant to this
Agreement beyond those activities specified
in any proposals submitted and approved
pursuant to this Clause it shall give notice of
such desire to the Minister and shall within
25 2 months thereafter submit to the Minister
detailed proposals in respect of all matters
covered by such notice and such of the other
matters mentioned in subclause (1) as the
Minister may require.
30 (7) To avoid doubt the parties acknowledge that
the provisions of this Agreement do not
apply to the mining of Non-Mining Lease
ore, the production of heavy mineral
concentrates from such ore or to the
35 transport of such heavy mineral concentrates
to Western Australia.";
page 9
Mineral Sands (Eneabba) Agreement Amendment Bill 2008
s. 6
(5) in clause 12 by inserting the following new subclause:
"(17) This Clause does not apply to the transport of
heavy mineral concentrates produced from
Non-Mining Lease ore or to heavy minerals or
5 heavy mineral products produced from such heavy
mineral concentrates.";
(7) by inserting in clause 20 the following new subclause:
"(4) (a) In this subclause :
"Mining Lease heavy mineral concentrates"
10 means ore concentrated prior to separation
into component heavy minerals; and
"Non-Mining Lease heavy mineral
concentrates" means Non-Mining Lease ore
concentrated prior to separation into
15 component heavy minerals.
(b) The Company may with the approval from
time to time of the Minister blend a heavy
mineral resulting from the separation of
Mining Lease heavy mineral concentrates
20 with the same type of heavy mineral
resulting from the separation of Non-Mining
Lease heavy mineral concentrates.
(c) The authority given under paragraph (b) is
subject to the Minister being reasonably
25 satisfied that there is in place adequate
systems and controls for the correct
apportionment between the Mining Lease
and the areas from within which
Non-Mining Lease ore is being mined of the
30 quantities of the relevant heavy mineral
being blended and which systems and
controls monitor production, concentration,
processing, transportation, stockpiling and
shipping activities in respect of all such
35 blended heavy minerals. If at any time the
Minister ceases to be so satisfied he may,
page 10
Mineral Sands (Eneabba) Agreement Amendment Bill 2008
s. 6
after consulting the Company and provided
that Company has not within three (3)
months after the commencement of such
consultation addressed the matters of
5 concern to the Minister to his satisfaction,
by notice in writing to the Company suspend
the above authority in respect of the relevant
blending arrangements until he is again
satisfied in terms of this paragraph (c).
10 (d) If any blending occurs as contemplated by
this subclause then for the purposes of
calculating royalty as provided in
subclause (1) on the quantity of heavy
mineral resulting from the separation of
15 Mining Lease heavy mineral concentrates
and used in the admixture, the gross sale
price of the blended heavy mineral product
as set out in the invoices relating to the sale
(and converted if necessary to Australian
20 currency in accordance with the Mining
Regulations 1981) shall be apportioned to
the abovementioned quantity of heavy
mineral (as its gross invoice value) in the
same proportion as that quantity of heavy
25 mineral bears to the total quantity of the
blended heavy mineral product." ;
(8) by deleting clause 23; and
(9) by inserting after clause 39 the following new clause:
"Term of Agreement
30 39A. Subject to the provisions of Clauses 32 and 33, this
Agreement shall expire on the earlier of:
(a) the date occurring 5 years (or with the
Minister's approval such longer time not
exceeding 7 years) after the Company ceases
35 to mine ore from the Mining Lease; and
page 11
Mineral Sands (Eneabba) Agreement Amendment Bill 2008
s. 6
(b) the expiration or sooner determination of the
Mining Lease."
EXECUTED as a deed.
5 SIGNED by THE HONOURABLE )
ALAN JOHN CARPENTER )
in the presence of: )
A J Carpenter
Name
10 Kent Frederick Alott
Kent Alott
THE COMMON SEAL of )
ILUKA RESOURCES LIMITED )
15 ACN 008 675 018 was hereto affixed ) [C.S.]
in accordance with its constitution )
in the presence of: )
David Robb
Director
20 C. Wilson
Director/Secretary
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