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This is a Bill, not an Act. For current law, see the Acts databases.


RAILWAY AND PORT (THE PILBARA INFRASTRUCTURE PTY LTD) AGREEMENT BILL 2004

                      Western Australia



Railway and Port (The Pilbara Infrastructure
       Pty Ltd) Agreement Bill 2004

                        CONTENTS


      Part 1 -- Preliminary
1.    Short title                                        2
2.    Commencement                                       2
      Part 2 -- General provisions about the
           Agreement
3.    Terms used in this Part                            3
4.    Ratification and authorisation                     3
5.    State empowered under clause 23                    3
6.    Effect on other laws                               3
      Part 3 -- Provisions about access to the
           railway constructed under the
           Agreement
      Division 1 -- Amendment of the Railways (Access)
            Act 1998
7.    Railways (Access) Act 1998 amended                 4
8.    Section 3 amended                                  4
9.    Section 11B inserted                               4
      Division 2 -- Railways (Access) Code 2000
10.   Railways (Access) Code 2000 amended                5
11.   Section 3 amended                                  5
12.   Section 53 inserted                                6
13.   Schedule 1 amended                                 6
14.   Schedule 4 amended                                 6



                                                        page i
                          351--1B
Railway and Port (The Pilbara Infrastructure Pty Ltd) Agreement Bill 2004



Contents



           Schedule 1 -- Railway and Port (The
               Pilbara Infrastructure Pty Ltd)
               Agreement                                              7




page ii
                           Western Australia


                      LEGISLATIVE COUNCIL



  Railway and Port (The Pilbara Infrastructure
         Pty Ltd) Agreement Bill 2004


                               A Bill for


An Act --
•  to ratify, and authorise the implementation of, an agreement
    between the State and The Pilbara Infrastructure Pty Ltd and
    Fortescue Metals Group Ltd relating to the development of a
    multi-user railway and multi-user port facilities in the Pilbara
    region of the State;
•  to amend the Railways (Access) Act 1998 and the Railways
    (Access) Code 2000,
and for incidental and other purposes.



The Parliament of Western Australia enacts as follows:




                                                                page 1
    Railway and Port (The Pilbara Infrastructure Pty Ltd) Agreement Bill 2004
    Part 1         Preliminary

    s. 1



                             Part 1 -- Preliminary
    1.         Short title
               This Act may be cited as the Railway and Port (The Pilbara
               Infrastructure Pty Ltd) Agreement Act 2004.

5   2.         Commencement
         (1)   Subject to subsection (2), this Act comes into operation on the
               day on which it receives the Royal Assent.
         (2)   Part 3 comes into operation on a day fixed by proclamation.




    page 2
      Railway and Port (The Pilbara Infrastructure Pty Ltd) Agreement Bill 2004
                         General provisions about the Agreement          Part 2

                                                                               s. 3



          Part 2 -- General provisions about the Agreement
     3.         Terms used in this Part
                In this Part --
                "scheduled agreement" means the agreement of which a copy
5                   is set out in Schedule 1;
                "the Agreement" means the scheduled agreement or, if it is
                    varied in accordance with its terms, that agreement as
                    varied from time to time.

     4.         Ratification and authorisation
10        (1)   The scheduled agreement is ratified.
          (2)   The implementation of the Agreement is authorised.

     5.         State empowered under clause 23
                The State has power in accordance with clause 23 of the
                Agreement.
15   6.         Effect on other laws
          (1)   The Agreement operates and takes effect despite any enactment
                or other law.
          (2)   If a provision of the scheduled agreement expressly or by
                implication purports to modify or exclude the application or
20              operation of an enactment for a purpose or in relation to a
                person or thing, the application or operation of the enactment is
                modified or excluded for that purpose, or in relation to that
                person or thing, to the extent or for the period mentioned in the
                provision or necessary for the provision to have effect.
25        (3)   To avoid doubt, it is declared that the provisions of the Public
                Works Act 1902 section 96 do not apply to the railway
                constructed pursuant to the Agreement.
          (4)   This section does not limit or otherwise affect the application of
                the Government Agreements Act 1979.

                                                                            page 3
     Railway and Port (The Pilbara Infrastructure Pty Ltd) Agreement Bill 2004
     Part 3         Provisions about access to the railway constructed under the
                    Agreement
     Division 1     Amendment of the Railways (Access) Act 1998
     s. 7


            Part 3 -- Provisions about access to the railway
                   constructed under the Agreement
          Division 1 -- Amendment of the Railways (Access) Act 1998
     7.        Railways (Access) Act 1998 amended
5              The amendments in this Division are to the Railways (Access)
               Act 1998*.
               [* Reprinted as at 12 October 2001.
                  For subsequent amendments see Western Australian
                  Legislation Information Tables for 2003, Table 1, p. 323.]
10   8.        Section 3 amended
               Section 3(1) is amended as follows:
                 (a) by inserting in the appropriate alphabetical position --
               "
                         "TPI Railway and Port Agreement" has the meaning
15                          given to the term "the Agreement" in the Railway
                            and Port (The Pilbara Infrastructure Pty Ltd)
                            Agreement Act 2004 section 3.
                                                                                   ";
                   (b)    in the definition of "railways network" by deleting
20                        "and" after paragraph (b) and inserting --
                          "
                              (ba)   the railway constructed pursuant to the TPI
                                     Railway and Port Agreement; and
                                                                                   ".

25   9.        Section 11B inserted
               After section 11A the following section is inserted --
     "
            11B.         Exception to sections 10 to 11A
               (1)       Sections 10 to 11A do not apply if, in making an
30                       amendment to the Code, the Minister states that the

     page 4
      Railway and Port (The Pilbara Infrastructure Pty Ltd) Agreement Bill 2004
      Provisions about access to the railway constructed under the       Part 3
                                                       Agreement
                                    Railways (Access) Code 2000     Division 2
                                                                           s. 10


                       amendment is made under this section for the purpose
                       of the application of the Code to the railway
                       constructed pursuant to the TPI Railway and Port
                       Agreement.
5            (2)       Subsection (1) does not apply to an amendment made
                       after the expiration of the period of 3 years after the
                       day of the coming into operation of the Railway and
                       Port (The Pilbara Infrastructure Pty Ltd) Agreement
                       Act 2004 section 13.
10                                                                                ".
                   Division 2 -- Railways (Access) Code 2000
     10.     Railways (Access) Code 2000 amended
             The amendments in this Division are to the Railways (Access)
             Code 2000*.
15           [* Published in Gazette 8 September 2000, p. 5123-81.
                For subsequent amendments see Gazette 23 July 2004.]
     11.     Section 3 amended
             Section 3 is amended as follows:
               (a) by inserting in the appropriate alphabetical position --
20           "
                       "TPI Railway and Port Agreement" has the meaning
                          given to the term "the Agreement" in the Railway
                          and Port (The Pilbara Infrastructure Pty Ltd)
                          Agreement Act 2004 section 3.
25                                                                                ";
                 (b)    in the definition of "railways network" by deleting
                        "and" after paragraph (b) and inserting --
                        "
                            (ba)   the railway constructed pursuant to the TPI
30                                 Railway and Port Agreement; and
                                                                                  ".


                                                                              page 5
     Railway and Port (The Pilbara Infrastructure Pty Ltd) Agreement Bill 2004
     Part 3         Provisions about access to the railway constructed under the
                    Agreement
     Division 2     Railways (Access) Code 2000
     s. 12


     12.         Section 53 inserted
                 After section 52 the following section is inserted --
     "
           53.        Further transitional provision
5                     Until the Regulator publishes in the Gazette notice of a
                      determination under subparagraph (ia) of clause 3(1)(a)
                      of Schedule 4, the weighted average cost of capital for
                      the railway infrastructure referred to in that
                      subparagraph is such percentage as the Regulator fixes
10                    by notice published in the Gazette under this section.
                                                                                        ".

     13.         Schedule 1 amended
                 After Schedule 1 item 51 the following heading and item are
                 inserted --
15   "
           TPI Railway and Port Agreement Route
           52.        All tracks that are part of the railway constructed pursuant to
                      the TPI Railway and Port Agreement.
                                                                                        ".

20   14.         Schedule 4 amended
                 Schedule 4 clause 3(1)(a) is amended by deleting "and" after
                 subparagraph (i) and inserting --
                             "
                                 (ia)   the railway infrastructure associated with
25                                      that part of the railways network described
                                        in item 52 in that Schedule; and
                                                                                        ".




     page 6
      Railway and Port (The Pilbara Infrastructure Pty Ltd) Agreement Bill 2004



                Railway and Port (The Pilbara Infrastructure Pty Ltd)                  Schedule 1
                                                         Agreement


               Schedule 1 -- Railway and Port (The Pilbara
                   Infrastructure Pty Ltd) Agreement
                                                                                               [s. 3]
                                                 2004
5                       THE STATE OF WESTERN AUSTRALIA

                                                  and

                     THE PILBARA INFRASTRUCTURE PTY LTD
                                         ACN 103 096 340

                                                  and

10                         FORTESCUE METALS GROUP LTD

                                         ACN 002 594 872

     ------------------------------------------------------------------------------------------------

       RAILWAY AND PORT (THE PILBARA INFRASTRUCTURE PTY
                       LTD) AGREEMENT

15   ------------------------------------------------------------------------------------------------




20



                                    State Solicitor's Office
                                 Commercial and Conveyancing
25                                 141 St George's Terrace
                                       Perth WA 6000
                                  Telephone : (08) 9264 1888




                                                                                             page 7
     Railway and Port (The Pilbara Infrastructure Pty Ltd) Agreement Bill 2004



     Schedule 1        Railway and Port (The Pilbara Infrastructure Pty Ltd)
                       Agreement


     THIS AGREEMENT is made this 10th day of November 2004

     BETWEEN

     THE HONOURABLE GEOFFREY IAN GALLOP, B.Ec., MA., MPhil.,
     DPhil., M.L.A., Premier of the State of Western Australia, acting for and on
5    behalf of the said State and its instrumentalities from time to time (hereinafter
     called "the State") of the first part,

     THE PILBARA INFRASTRUCTURE PTY LTD ACN 103 096 340 of
     Level 1, 46-50 Kings Park Road, West Perth, Western Australia (hereinafter
     called "the Company" in which term shall be included its successors and
10   permitted assigns) of the second part, and

     FORTESCUE METALS GROUP LTD ACN 002 594 872 of Level 1,
     46-50 Kings Park Road, West Perth, Western Australia (hereinafter called
     "the Guarantor") of the third part.

     WHEREAS:
15   A.    The Guarantor is investigating the feasibility of developing in the vicinity
           of the Chichester Ranges in the Pilbara region of Western Australia a
           project for the mining and sale, either within Australia or by export to
           overseas purchasers, of iron ore from the said region and is negotiating
           with the State a separate agreement to facilitate that mining development.
20   B.    The Guarantor is also proceeding with detailed feasibility studies for the
           Company to construct and operate a multi-user railway from in the
           vicinity of the Chichester Ranges to multi-user port facilities within the
           Port of Port Hedland, or to a location near the boundary of that port for
           delivery to such port facilities by multi-user conveyor, and such multi-
25         user port facilities, for the shipping and export of iron ore products,
           freight goods and other products.
     C.    The Company proposes that the railway, any facilities outside the port for
           the transfer of iron ore products, freight goods and other products to the
           port facilities, and the port facilities which are all to be constructed under
30         this Agreement will operate under open third party access arrangements
           referred to in this Agreement.

     page 8
          Railway and Port (The Pilbara Infrastructure Pty Ltd) Agreement Bill 2004



                  Railway and Port (The Pilbara Infrastructure Pty Ltd)    Schedule 1
                                                           Agreement


     D.       The State for the purpose of promoting development of the iron ore
              industry and employment opportunity generally in Western Australia, and
              for the purposes of promoting the development of multi-user
              infrastructure facilities in the Pilbara region of Western Australia, has
5             agreed to assist the development of the above multi-user facilities upon
              and subject to the terms of this Agreement.

     NOW THIS AGREEMENT WITNESSES:

     Definitions
     1.     In this Agreement subject to the context:
10          "Access Act" means the Railways (Access) Act 1998;
            "Access Code" means the Railways (Access) Code 2000;
            "Additional Infrastructure" means a conveyor, train unloading and other
               infrastructure necessary for the transport of iron ore products, freight
               goods or other products from the SRL Railway to the Company's Port
15             Facilities within the Port;
            "advise", "apply", "approve", "approval", "consent", "certify",
                "direct", "notice", "notify", "request", or "require", means advise,
                apply, approve, approval, consent, certify, direct, notice, notify,
                request or require in writing as the case may be and any inflexion or
20              derivation of any of those words has a corresponding meaning;
            "approved proposal" means a proposal approved or deemed to be
                approved under this Agreement;
            "Commonwealth" means the Commonwealth of Australia and includes
               the Government for the time being thereof;
25          "EP Act" means the Environmental Protection Act 1986;
            "Government agreement" has the meaning given in the Government
               Agreements Act 1979;
            "iron ore products" includes iron ore of all grades and all products from
                the processing of iron ore;
30          "LAA" means the Land Administration Act 1997;
            "Lateral Access Roads" has the meaning given in clause 7(1);
            "Lateral Access Road Licence" means a miscellaneous licence granted
                pursuant to clause 14(1)(b) and according to the requirements of the



                                                                                page 9
     Railway and Port (The Pilbara Infrastructure Pty Ltd) Agreement Bill 2004



     Schedule 1        Railway and Port (The Pilbara Infrastructure Pty Ltd)
                       Agreement


               context describes the area of land from time to time the subject of that
               licence;
         "laws relating to native title" means laws applicable from time to time in
             Western Australia in respect of native title and includes the Native
5            Title Act 1993 (Commonwealth);
         "local government" means a local government established under the
             Local Government Act 1995;
         "Mining Act" means the Mining Act 1978;
         "Mining Agreement" means the agreement intended to be made in
10          accordance with clause 38 for the purposes of assisting the
            establishment of iron ore mining operations in the vicinity of the
            Chichester Ranges;
         "Minister" means the Minister in the Government of the State for the time
            being responsible for the administration of the Act to ratify this
15          Agreement and pending the passing of that Act means the Minister for
            the time being designated in a notice from the State to the Company
            and includes the successors in office of the Minister;
         "Minister for Mines" means the Minister in the Government of the State
            for the time being responsible for the administration of the Mining
20          Act;
         "month" means calendar month;
         "person" or "persons" includes bodies corporate;
         "Pilbara Iron Ore Railways" means each railway constructed under a
             Government agreement which is located wholly or substantially in one
25           or more of the local government districts of Ashburton, East Pilbara,
             Port Hedland and Roebourne at the date of this Agreement;
         "Port" means the Port of Port Hedland;
         "Port Additional Infrastructure" means that part of the Additional
             Infrastructure (if any) which is or is to be located (as the case may be)
30           in the Port;
         "Port Additional Infrastructure Area" means that part of the Port the
             subject of a subsisting agreement pursuant to clause 8(1)(b)(i);
         "Port Additional Infrastructure Licence" means the licence granted to
             the Company under the Port Authorities Act as referred to in clause
35           14(7)(b) and according to the requirements of the context describes
             the area from time to time the subject of that licence;


     page 10
     Railway and Port (The Pilbara Infrastructure Pty Ltd) Agreement Bill 2004



             Railway and Port (The Pilbara Infrastructure Pty Ltd)     Schedule 1
                                                      Agreement


       "Port Authority" means the Port Hedland Port Authority, being the body
           corporate established for the Port under the Port Authorities Act;
       "Port Authorities Act" means the Port Authorities Act 1999;
       "Port Facilities" means facilities (excluding the Port Railway and
5          Additional Infrastructure (if any)) necessary for the construction,
           operation and maintenance of a ship loading terminal, which may
           include train unloading, conveyor, stockpiling, ore blending, screening
           and loading facilities and a wharf;
       "Port Facilities Area" means that part of the Port the subject of a
10         subsisting agreement pursuant to clause 8(1)(a);
       "Port Lease" means the lease granted to the Company under the Port
           Authorities Act as referred to in clause 14(7)(a) and according to the
           requirements of the context describes the area from time to time the
           subject of that lease;
15     "Port Railway" means that part of the Railway (if any) which is or is to be
           (as the case may be) located in the Port;
       "Port Railway Area" means that part of the Port the subject of a
           subsisting agreement pursuant to clause 8(1)(c);
       "Port Railway Licence" means the licence granted to the Company under
20         the Port Authorities Act as referred to in clause 14(7)(c) and according
           to the requirements of the context describes the area from time to time
           the subject of that licence;
       "Private Roads" means Lateral Access Roads and the Company's access
           roads within the Railway Corridor;
25     "Project" means the construction and operation under this Agreement of
           the Railway, access roads, the Lateral Access Roads, the Additional
           Infrastructure (if any) and Port Facilities each approved pursuant to
           proposals submitted under clause 10, the provision of access (as
           defined in clause 16) to the Railway, the provision of rail transport
30         services over the Railway and access (as defined in clause 18) to the
           Port Facilities and the Additional Infrastructure (if any);
       "Rail Safety Act" means the Rail Safety Act 1998;
       "Railway" means a standard gauge heavy haul railway initially from the
           mining area to be developed under the Mining Agreement in the
35         vicinity of the Chichester Ranges in the Pilbara region of the said
           State to the Company's Port Facilities within the Port or to a location
           near the boundary of the Port together with all railway track,


                                                                             page 11
     Railway and Port (The Pilbara Infrastructure Pty Ltd) Agreement Bill 2004



     Schedule 1       Railway and Port (The Pilbara Infrastructure Pty Ltd)
                      Agreement


               associated track structures including sidings, turning loops, over or
               under track structures, supports (including supports for equipment or
               items associated with the use of a railway) tunnels, bridges, train
               control systems, signalling systems, switch and other gear,
5              communication systems, electric traction infrastructure, buildings
               (excluding office buildings, housing and freight centres), workshops
               and associated plant, machinery and equipment and including rolling
               stock maintenance facilities, terminal yards, depots, culverts and
               weigh bridges which railway is or is to be (as the case may be) the
10             subject of approved proposals under clauses 10 and 11 of this
               Agreement and includes any extension or enlargement thereof which
               is the subject of approved proposals under clauses 12 or 13;
         "Railway Corridor" means, prior to the grant of the Special Railway
             Licence, the land for the route of the SRL Railway, access roads
15           (other than Lateral Access Roads) and such of the Additional
             Infrastructure (if any) which is to be located outside the Port and
             which is the subject of a subsisting agreement pursuant to clause 7(1)
             and upon the grant of the Special Railway Licence the land the subject
             of the Special Railway Licence less any portion of the Railway
20           Corridor surrendered by the Company from time to time under the
             terms of the Special Railway Licence;
         "Railway Operation Date" means the date of the first carriage of iron ore
             products, freight goods or other products over the Railway (other than
             for construction or commissioning purposes);
25       "said State" means the State of Western Australia;
         "SRL Railway" means that part of the Railway which is or is to be (as the
             case may be) located outside the Port;
         "Special Railway Licence" means the miscellaneous licence for railway
             and, if applicable, other purposes, granted to the Company pursuant to
30           clause 14(1)(a) and according to the requirements of the context
             describes the area of land from time to time the subject of that licence;
         "this Agreement", "hereof" and "hereunder" refer to this Agreement,
              whether in its original form or as from time to time added to, varied or
              amended; and
35       "Trade Practices Act" means the Trade Practices Act 1974
             (Commonwealth).




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          Railway and Port (The Pilbara Infrastructure Pty Ltd) Agreement Bill 2004



                  Railway and Port (The Pilbara Infrastructure Pty Ltd)      Schedule 1
                                                           Agreement


     Interpretation
     2.     (1) In this Agreement:
                 (a)   monetary references are references to Australian currency
                       unless otherwise specifically expressed;
5                (b)   power given under any clause other than clause 30 to extend
                       any period or date shall be without prejudice to the power of the
                       Minister under clause 30;
                 (c)   clause headings do not affect interpretation or construction;
                 (d)   words in the singular shall include the plural and words in the
10                     plural shall include the singular according to the requirements
                       of the context;
                 (e)   one gender includes the other genders;
                 (f)   a covenant or agreement by more than one person binds, and is
                       enforceable against, those persons jointly and each of them
15                     severally;
                 (g)   reference to an Act includes the amendments to that Act for the
                       time being in force and also any Act passed in substitution
                       therefor or in lieu thereof and the regulations for the time being
                       in force thereunder;
20               (h)   reference to the Access Code includes the amendments to that
                       code for the time being in force and also any code established
                       or made in substitution therefor or in lieu thereof;
                 (i)   reference in this Agreement to any other document includes
                       that document as from time to time added to, varied or amended
25                     and notwithstanding any change in the identity of the parties;
                 (j)   reference to a clause or schedule is a reference to a clause or
                       schedule to this Agreement, and a reference to a subclause or
                       paragraph is a reference to the subclause of the clause or
                       paragraph of the clause or subclause as the case may be in, or in
30                     relation to, which the reference is made;
                 (k)   "including" means "including, but not limited to"; and
                 (l)   reference to a "person" includes a body corporate.
            (2) Nothing in this Agreement shall be construed to exempt the State or
                the Company from compliance with or to require the State or the
35              Company to do anything contrary to any law relating to native title or
                any lawful obligation or requirement imposed on the State or the

                                                                                 page 13
     Railway and Port (The Pilbara Infrastructure Pty Ltd) Agreement Bill 2004



     Schedule 1        Railway and Port (The Pilbara Infrastructure Pty Ltd)
                       Agreement


               Company as the case may be pursuant to any law relating to native
               title.
          (3) Nothing in this Agreement shall be construed to exempt the Company
              from compliance with any requirement in connection with the
5             protection of the environment arising out of or incidental to its
              activities under this Agreement that may be made by or under the
              EP Act.

     Ratification and operation
     3.   (1) The State shall introduce and sponsor a Bill in the State Parliament of
10            Western Australia prior to 31 December 2004 or such later date as
              may be agreed between the parties hereto to ratify this Agreement.
              The State shall endeavour to secure the timely passage of such Bill as
              an Act.
          (2) The provisions of this Agreement other than this clause and clauses 1
15            and 2 will not come into operation until the Bill referred to in
              subclause (1) has been passed by the State Parliament of Western
              Australia and comes into operation as an Act and the Mining
              Agreement is signed by all of the parties to it.
          (3) If by 31 December 2005 the said Bill has not commenced to operate
20            as an Act or the Mining Agreement has not been signed by all of the
              parties to it then, unless the parties hereto otherwise agree, this
              Agreement will then cease and determine and no party hereto will
              have any claim against any other party hereto with respect to any
              matter or thing arising out of, done, performed, or omitted to be done
25            or performed under this Agreement.
          (4) On the later of:
               (a)   the date on which the said Bill commences to operate as an Act;
                     and
               (b)   the date on which the Mining Agreement is signed by all of the
30                   parties to it,
               all the provisions of this Agreement will operate and take effect
               despite any enactment or other law.




     page 14
          Railway and Port (The Pilbara Infrastructure Pty Ltd) Agreement Bill 2004



                  Railway and Port (The Pilbara Infrastructure Pty Ltd)           Schedule 1
                                                           Agreement


     Initial obligations of the State
     4.          The State shall subject to the adequate protection of the environment
                 (including flora and fauna) and the land affected (including
                 improvements thereon), and subject to the Company furnishing to the
5                Minister the written consents referred to in clause 7(3)(a), arrange for
                 the issue of requisite authority under the LAA to allow the Company
                 to enter upon Crown land as defined in the LAA (including, if
                 applicable, land the subject of a pastoral lease, but excluding land
                 within the Port) with plant and equipment to carry out all works to the
10               extent reasonably necessary for the purposes of undertaking its
                 obligations under clause 5(1).

     Initial obligations of the Company
     5.     (1) The Company shall continue field and office geological, geophysical,
                geotechnical, engineering and environmental investigations and
15              studies and marketing and finance studies and other matters necessary
                for the purposes of clauses 7 and 8 and to enable it to finalise and to
                submit to the Minister the detailed proposals referred to in clause 10.
            (2) The Company shall keep the State fully informed in writing at
                quarterly intervals from the later of the dates specified in clause 3(4)
20              as to the progress and results of its operations under subclause (1) and
                supply to the Minister such information in relation thereto as the
                Minister may request from time to time.
            (3) The Company shall co-operate with the State and consult with the
                representatives or officers of the State regarding matters referred to in
25              subclauses (1) and (2) and any other relevant studies in relation to
                those subclauses that the Minister may wish the Company to
                undertake.

     Aboriginal Heritage Act 1972
     6.          For the purposes of this Agreement the Aboriginal Heritage Act 1972
30               applies as if it were modified by:
                 (a)       the insertion before the full stop at the end of section 18(1) of
                           the words:
                       "
                           and the expression "the Company" means the persons from
35                         time to time comprising "the Company" in their capacity as

                                                                                      page 15
     Railway and Port (The Pilbara Infrastructure Pty Ltd) Agreement Bill 2004



     Schedule 1       Railway and Port (The Pilbara Infrastructure Pty Ltd)
                      Agreement


                     such under the agreement made on 10 November 2004 between
                     The Honourable Geoffrey Ian Gallop, Premier of the State of
                     Western Australia acting for and on behalf of the said State and
                     its instrumentalities from time to time, The Pilbara
5                    Infrastructure Pty Ltd ACN 103 096 340 and Fortescue Metals
                     Group Ltd ACN 002 594 872, in relation to the use or proposed
                     use of land pursuant to that agreement after and in accordance
                     with approved proposals under that agreement and in relation to
                     the use of that land before any such approval of proposals
10                   where the Company has the requisite authority to enter upon
                     and so use the land
                                                                                    ";
               (b)   the insertion in sections 18(2), 18(4), 18(5) and 18(7) of the
                     words "or the Company as the case may be" after the words
15                   "owner of any land";
               (c)   the insertion in section 18(3) of the words "or the Company as
                     the case may be" after the words "the owner";
               (d)   the insertion of the following sentences at the end of
                     section 18(3):
20             "
                     In relation to a notice from the Company the conditions that the
                     Minister may specify can as appropriate include, among other
                     conditions, a condition restricting the Company's use of the
                     relevant land to after the approval or deemed approval as the
25                   case may be under the abovementioned agreement of all of the
                     Company's submitted proposals thereunder for the Project (as
                     defined in the abovementioned agreement), or in the case of
                     additional proposals submitted or to be submitted by the
                     Company to after the approval or deemed approval under that
30                   agreement of such additional proposals, and to the extent so
                     approved.
                                                                                "; and
               (e)   the insertion in sections 18(2) and 18(5) of the words "or it as
                     the case may be" after the word "he".
35             The Company acknowledges that nothing in this clause 6 nor the
               granting of any consents under section 18 of the Aboriginal Heritage
               Act 1972 will constitute or is to be construed as constituting the
               approval of any proposals submitted or to be submitted by the


     page 16
          Railway and Port (The Pilbara Infrastructure Pty Ltd) Agreement Bill 2004



                  Railway and Port (The Pilbara Infrastructure Pty Ltd)       Schedule 1
                                                           Agreement


                 Company under this Agreement or as the grant or promise of land
                 tenure for the purposes of this Agreement.

     Railway Corridor
     7.     (1) As soon as practicable during its studies under clause 5, and from time
5               to time during those studies as required by either the Company or the
                State, the Company shall consult with the Minister to seek the
                agreement of the Minister as to:
                 (a)   where the SRL Railway will begin and end;
                 (b)   a route for the SRL Railway, access roads to be within the
10                     Railway Corridor and Additional Infrastructure (if any) which
                       is to be located outside the Port and the land required for that
                       route;
                 (c)   if Additional Infrastructure is to be located outside the Port, the
                       nature and capacity of such Additional Infrastructure; and
15               (d)   the routes of, and the land required for, roads outside the
                       Railway Corridor for access to it to construct the SRL Railway
                       (such roads as agreed being "Lateral Access Roads").
                 In seeking such agreement, regard shall be had to achieving a balance
                 between engineering matters including costs, the nature and use of any
20               lands concerned and interests therein and the costs of acquiring the
                 land (all of which shall be borne by the Company). The parties
                 acknowledge the intention is for the Company to construct the SRL
                 Railway, the access roads which are to be within the Railway Corridor
                 and the relevant Additional Infrastructure (if any) along the centreline
25               of the Railway Corridor subject to changes in that alignment to the
                 extent necessary to avoid heritage, environmental or poor ground
                 conditions that are not identified during preliminary investigation
                 work. The provisions of clause 35 shall not apply to this subclause.
            (2) If the date by which the Company must submit detailed proposals
30              under clause 10(1) is extended or varied by the Minister pursuant to
                clause 30, any agreement made pursuant to subclause (1) before such
                date is extended or varied shall unless the Minister notifies the
                Company otherwise be deemed to be at an end and neither party shall
                have any claim against the other in respect of it.
35          (3) The Company acknowledges that it shall be responsible for liaising
                with every title holder in respect of the land affected and for obtaining

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                       Agreement


               in a form and substance acceptable to the Minister all consents of each
               such title holder to, and all statutory consents required in respect of
               the land affected for:
               (a)   the issue of requisite authority under the LAA pursuant to
5                    clause 4 and the undertaking of the matters referred to in
                     clause 5(1);
               (b)   the grant of the Special Railway Licence for the construction,
                     operation and maintenance within the Railway Corridor of the
                     SRL Railway, access roads to be within the Railway Corridor
10                   and Additional Infrastructure (if any) to be located outside the
                     Port; and
               (c)   the grant of Lateral Access Road Licences for the construction,
                     use and maintenance of Lateral Access Roads over the routes
                     for the Lateral Access Roads agreed pursuant to clause 7(1),
15             in accordance with this Agreement. For the purposes of this
               subclause (3), "title holder" means a management body (as defined in
               the LAA) in respect of any part of the affected land, a person who
               holds a mining or petroleum right (as defined in the LAA) in respect
               of any part of the affected land, a person who holds a lease or licence
20             under the LAA in respect of any part of the affected land, a person
               who holds any other title granted under or pursuant to a Government
               agreement in respect of any part of the affected land, a person who
               holds a lease or licence in respect of any part of the affected land
               under any other Act applying in the said State and a person in whom
25             any part of the affected land is vested, immediately before in respect
               of paragraph (a) the grant of the authority referred to therein and in
               respect of paragraphs (b) and (c) the provision of such consents to the
               Minister as referred to in clause 10(5)(b).
         (4) The parties acknowledge that, at the date of this Agreement, due to
30           possible constraints on availability of land within the Port for the
             Railway, it is not settled whether the Railway will continue into the
             Port or whether it will cease at a point outside the Port, in which case
             the Company intends to construct a conveyor, train unloading and
             other infrastructure in order to transport iron ore products, freight
35           goods or other products as the case may be from the Railway to within
             the Port. It is the preference of the State and the Company that the
             Railway continue into the Port and the Company shall proceed on that
             basis if there is land available within the Port for the Railway.


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                  Railway and Port (The Pilbara Infrastructure Pty Ltd)        Schedule 1
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     Port Facilities
     8.     (1) As soon as practicable during its studies under clause 5, and from time
                to time during those studies as required by either the Company or the
                State, the Company shall consult with the Minister to seek the
5               agreement of the Minister as to:
                 (a)   an area of the Port to be the subject of the Port Lease and in
                       which the Port Facilities are to be constructed;
                 (b)   if there is to be any Port Additional Infrastructure:
                       (i)    an area of the Port (which may be or include part of the
10                            Port Facilities Area) to be the subject of the Port
                              Additional Infrastructure Licence and in which the Port
                              Additional Infrastructure is to be constructed; and
                       (ii)   the nature and characteristics of the Port Additional
                              Infrastructure, including the capacity of the Port
15                            Additional Infrastructure;
                 (c)   if any part of the Railway is to be in the Port, an area of the Port
                       to be the subject of the Port Railway Licence and in which that
                       part of the Railway and access roads to be located within the
                       Port Railway Area are to be constructed; and
20               (d)   the nature and characteristics of the Port Facilities, including
                       the capacity of the Port Facilities.
            (2) If the date by which the Company must submit detailed proposals
                under clause 10(1) is extended or varied by the Minister pursuant to
                clause 30, any agreement made pursuant to subclause (1) before such
25              date is extended or varied shall unless the Minister notifies the
                Company otherwise be deemed to be at an end and neither party shall
                have any claim against the other in respect of it.
            (3) The provisions of clause 35 shall not apply to this clause.

     Community development plan
30   9.     (1) In this clause, the term "community and social benefits" includes:
                 (a)   training and guaranteed employment for indigenous and non-
                       indigenous persons living in the Pilbara region of the said State;
                 (b)   regional development and local procurement of goods and
                       services;


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               (c)   contribution to community services and facilities; and
               (d)   a regionally based workforce.
         (2) The Company acknowledges the need for community and social
             benefits flowing from this Agreement.
5        (3) The Company agrees that, prior to the time at which it submits any
             proposals pursuant to clause 10, and, if required by the Minister, prior
             to the time at which it submits any additional proposals pursuant to
             clause 12 or 13, it shall:
               (a)   consult with the relevant local government or local
10                   governments with respect to the need for community and social
                     benefits in relation to the developments proposed;
               (b)   following such consultation, prepare a plan which describes the
                     Company's proposed strategies for achieving community and
                     social benefits in connection with the developments proposed,
15                   and such plan shall include a process for regular consultation by
                     the Company with the relevant local government or local
                     governments in respect of the strategies; and
               (c)   submit to the Minister the plan prepared pursuant to
                     subclause (3)(b) and confer with the Minister in respect of the
20                   plan.
         (4) The Minister shall within one month after receipt of a plan submitted
             under subclause (3)(c), either notify the Company that the Minister
             approves the plan as submitted or notify the Company of changes
             which the Minister requires be made to the plan. If the Company is
25           unwilling to accept the changes which the Minister requires it shall
             notify the Minister to that effect and either party may refer to
             arbitration hereunder the question of the reasonableness of the
             changes required by the Minister.
         (5) The effect of an award made on an arbitration pursuant to
30           subclause (4) shall be that the plan submitted by the Company
             pursuant to subclause (3)(c) shall, with such changes required by the
             Minister under subclause (4) as the arbitrator determines to be
             reasonable (with or without modification by the arbitrator), be deemed
             to be the plan approved by the Minister under this clause.




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         (6) During the continuance of this Agreement, the Company shall
             implement the plan approved or deemed to be approved by the
             Minister under this clause.
         (7) The Company shall report to the Minister about the results of its
5            periodic ongoing consultation with the relevant local government or
             local governments in accordance with the plan approved or deemed to
             be approved by the Minister under this clause and as soon as
             practicable after each such consultation takes place.
         (8) At the request of either of them made at any time and from time to
10           time, the Minister and the Company shall confer as to any
             amendments desired to any plan approved or deemed to be approved
             by the Minister under this clause and may agree to amendment of the
             plan or adoption of a new plan. Any such amended plan or new plan
             will be deemed to be the plan approved by the Minister under this
15           clause.

     Company to submit proposals
     10. (1) The Company shall, subject to the EP Act, the provisions of this
             Agreement, agreement at that time subsisting in respect of the matters
             required to be agreed pursuant to clauses 7(1) and 8(1) and approval
20           of a plan as referred to in clause 9, submit to the Minister by
             31 December 2005 to the fullest extent reasonably practicable its
             detailed proposals (including plans where practicable and
             specifications where reasonably required by the Minister and any
             other details normally required by a local government in whose area
25           any works are to be situated) with respect to undertaking of the
             Project, which proposals shall include the location, area, layout,
             design, materials and time program for the commencement and
             completion of construction or the provision (as the case may be) of
             each of the following matters namely:
30            (a)   the SRL Railway including fencing (if any) and crossing places
                    within the Railway Corridor and the matters referred to in
                    subclause (2)(a);
              (b)   Port Facilities within the Port Facilities Area;
              (c)   if any part of the Railway is to be in the Port, the Port Railway
35                  within the Port Railway Area including fencing (if any) and
                    crossing places within the Port Railway Area and the matters
                    referred to in subclause (2)(a);

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                       Agreement


               (d)   Additional Infrastructure (if any) both within the Railway
                     Corridor and the Port Additional Infrastructure Area;
               (e)   temporary accommodation and ancillary facilities for the
                     railway workforce on, or in the vicinity of, the Railway
5                    Corridor and housing and other appropriate facilities elsewhere
                     for the Company's workforce;
               (f)   water supply;
               (g)   energy supplies;
               (h)   access roads within the Railway Corridor, the Port Railway
10                   Area and the Port Additional Infrastructure Area (as the case
                     may be) and Lateral Access Roads within the routes for those
                     roads agreed between the Minister and the Company pursuant
                     to clause 7(1) or 8(1) (as the case may be);
               (i)   any other works, services or facilities desired by the Company;
15                   and
               (j)   use of local labour, professional services, manufacturers,
                     suppliers contractors and materials and measures to be taken
                     with respect to the engagement and training of employees by
                     the Company, its agents and contractors.
20       (2) (a)     Proposals as to the matters specified in subclause (1)(a) and
                     (1)(c) must provide for the Railway to have:
                     (i)    a capacity which enables the transport of not less than
                            70 million tonnes of iron ore products per annum over the
                            Railway; and
25                   (ii)   either without modifications or with modifications which
                            are technically feasible at a reasonable cost, such
                            characteristics as enable:
                            (A)   rail operations of the kind carried out on the
                                  Pilbara Iron Ore Railways to be carried out on the
30                                Railway, and vice versa; and
                            (B)   connection of the Railway to any one or more of
                                  the Pilbara Iron Ore Railways.
               (b)   Proposals pursuant to subclause (1) must specify the matters
                     agreed for the purpose pursuant to clauses 7(1) and 8(1) and
35                   must not be contrary to or inconsistent with such agreed
                     matters.


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             Railway and Port (The Pilbara Infrastructure Pty Ltd)       Schedule 1
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       (3) Each of the proposals pursuant to subclause (1) may with the approval
           of the Minister or must if so required by the Minister, be submitted
           separately and in any order as to the matter or matters mentioned in
           one or more of paragraphs (a) to (j) of subclause (1), and until all of its
5          proposals under 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 the Company to submit a
           proposal under this clause in respect of the subject matter of the
           withdrawn proposal.
10     (4) The Company shall, whenever any of the following matters referred to
           in this 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, design and management) and any works, materials,
15         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 Australia, together with its reasons therefor and shall, if
           required by the Minister consult with the Minister with respect
           thereto.
20     (5) At the time when the Company submits the last of the said proposals
           pursuant to this clause, it shall:
            (a)   furnish to the Minister's reasonable satisfaction evidence of:
                  (i)    the financial capability of the Company to undertake the
                         operations to which the said proposals refer;
25                (ii)    all accreditations under the Rail Safety Act which are
                          required to be held by the Company or any other person
                          for the construction of the Railway;
                  (iii)   all arrangements and agreements it has at that time made
                          or proposes to make in respect of access (as defined in
30                        clause 16) to the Railway or in respect of transport of any
                          iron ore products, freight goods or other products over
                          the Railway, and in respect of access (as defined in clause
                          18) to the Port Facilities and the Additional Infrastructure
                          (if any); and
35                (iv)    the readiness of the Company to embark upon and
                          proceed to carry out the operations referred to in the said
                          proposals; and


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     Schedule 1       Railway and Port (The Pilbara Infrastructure Pty Ltd)
                      Agreement


               (b)   furnish to the Minister the written consents referred to in
                     clause 7(3)(b) and 7(3)(c).

     Consideration of proposals
     11. (1) In respect of each proposal pursuant to clause 10(1) the Minister shall
5            subject to the EP Act:
               (a)   approve of the proposal without qualification or reservation; or
               (b)   defer consideration of or decision upon the same until such time
                     as the Company submits a further proposal or proposals in
                     respect of some other of the matters mentioned in clause 10(1)
10                   not covered by the said proposal or until such time as
                     clause 10(5) has been complied with by the Company; or
               (c)   require as a condition precedent to the giving of his approval to
                     the said proposal that the Company make such alteration thereto
                     or comply with such conditions in respect thereto as he (having
15                   regard to the circumstances including the overall development
                     of and the use by others as well as the Company of all or any of
                     the facilities proposed to be provided) thinks reasonable and in
                     such a case the Minister shall disclose his reasons for such
                     conditions,
20             PROVIDED ALWAYS that where implementation of any proposals
               hereunder have been approved pursuant to the EP Act subject to
               conditions or procedures, any approval or decision of the Minister
               under this clause shall if the case so requires incorporate a
               requirement that the Company make such alterations to the proposals
25             as may be necessary to make them accord with those conditions or
               procedures.
         (2) The Minister shall within 2 months after the later of:
               (a)   receipt of proposals pursuant to clause 10(1);
               (b)   where the proposals are to be assessed under Part IV of the
30                   EP Act, service on the Minister of an authority under
                     section 45(7) of the EP Act; and
               (c)   where a proposal will or may require the State to do any act
                     which affects any native title rights and interests, completion of
                     all processes required by laws relating to native title to be



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             Railway and Port (The Pilbara Infrastructure Pty Ltd)      Schedule 1
                                                      Agreement


                  undertaken by the State before that act may be done by the
                  State,
            give notice to the Company of his decision in respect to the proposals.
       (3) If the decision of the Minister is as mentioned in either of
5          paragraphs (b) or (c) of subclause (1) the Minister shall afford the
           Company full opportunity to consult with him and should it so desire
           to submit new or revised proposals either generally or in respect to
           some particular matter.
       (4) If the decision of the Minister is as mentioned in either of
10         paragraphs (b) or (c) of subclause (1) and the Company considers that
           the decision is unreasonable the Company within 2 months after
           receipt of the notice mentioned in subclause (2) may elect to refer to
           arbitration in the manner hereinafter provided the question of the
           reasonableness of the decision PROVIDED THAT any requirement of
15         the Minister pursuant to the proviso to subclause (1) shall not be
           referable to arbitration hereunder.
       (5) An award made on an arbitration pursuant to subclause (4) shall have
           force and effect as follows:
            (a)   if by the award the dispute is decided against the Company then
20                unless the Company within 3 months after delivery of the award
                  gives notice to the Minister of its acceptance of the award this
                  Agreement shall on the expiration of that period of 3 months
                  cease and determine; or
            (b)   if by the award the dispute is decided in favour of the Company
25                the decision shall take effect as a notice by the Minister that he
                  is so satisfied with and approves the matter or matters the
                  subject of the arbitration.
       (6) Notwithstanding any provision of this Agreement (other than
           clause 30) or that any matter required to be agreed pursuant to
30         clauses 7(1) and 8(1) has not been agreed, or that the plan required to
           be approved pursuant to clause 9 has not been approved, or that under
           this clause any proposals of the Company are approved by the
           Minister or determined by arbitration award, unless each and every
           proposal and matter required pursuant to clause 10 is so approved or
35         determined by 31 December 2006 then the Minister may give to the
           Company 12 months notice of intention to determine this Agreement


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     Schedule 1       Railway and Port (The Pilbara Infrastructure Pty Ltd)
                      Agreement


               and unless before the expiration of the said 12 months period all the
               detailed proposals and matters are so approved or determined this
               Agreement shall on the expiration of that period cease and determine
               subject however to the provisions of clause 32.
5        (7) Subject to and in accordance with the EP Act and any approvals and
             licences required under that Act the Company shall implement the
             approved proposals in accordance with the terms thereof so that the
             Railway, the Lateral Access Roads, the Additional Infrastructure (if
             any) and the Port Facilities are constructed and operational within 3
10           years of the approval of the proposals.
         (8) Notwithstanding clause 28, the Minister may during the
             implementation of approved proposals approve variations to those
             proposals.
         (9) The Minister may extend the periods set forth in clause 10(1) and
15           subclause (7) of this clause (in addition to any extension granted under
             clauses 29 and 30) upon request of the Company for such reasonable
             period or periods as the Minister considers appropriate to enable the
             Company to comply with laws relating to native title.

     Additional proposals
20   12. (1) Subject to clause 13, if the Company at any time during the
             continuance of this Agreement desires to construct outside the Port a
             spur line connecting to the SRL Railway or desires to significantly
             modify, expand or otherwise vary its activities that are the subject of
             this Agreement and that may be carried on by it pursuant to this
25           Agreement (other than by the construction of a spur line) beyond
             those activities specified in any approved proposals it shall give notice
             of such desire to the Minister and furnish to the Minister with that
             notice an outline of its proposals in respect thereto (including such
             matters mentioned in clause 10(1) as are relevant or as the Minister
30           otherwise requires).
         (2) If the notice relates to a spur line, the provisions of clauses 4, 5, 7 and
             9 shall mutatis mutandis apply prior to submission of detailed
             proposals in respect thereof.
         (3) Subject to the EP Act, the provisions of this Agreement and agreement
35           at that time subsisting in respect of any matters required to be agreed
             pursuant to clause 7(1) as referred to in subclause (2), and approval of
             a plan as referred to in clause 9, the Company shall submit to the

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             Minister within a reasonable timeframe, as determined by the Minister
             after receipt of the notice referred to in subclause (1), detailed
             proposals in respect of the proposed construction of such spur line or
             the proposed modification, expansion or variation of its activities
5            including such of the matters mentioned in clause 10(1) as the
             Minister may require.
         (4) The provisions of clause 10 (other than subclause 5(a)) and clause 11
             (other than subclauses (5)(a), (6) and (7) of clause 11) shall mutatis
             mutandis apply to detailed proposals submitted pursuant to this clause
10           with the proviso that the Company may withdraw such proposals at
             any time before approval thereof or, where any decision of the
             Minister in respect thereof is referred to arbitration, within 3 months
             after the award by notice to the Minister that it shall not be proceeding
             with the same. Subject to and in accordance with the EP Act and any
15           approvals or licences required under that Act, the Company shall
             implement approved proposals pursuant to this clause in accordance
             with the terms thereof.
     Expansion of Project within the Port
     13. (1) The Company shall not:
20           (a)    increase the capacity of Port Facilities or of Port Additional
                    Infrastructure or of that part of the Railway within the Port as
                    the case may be above that specified in approved proposals; or
             (b)    change the nature and characteristics of Port Facilities or Port
                    Additional Infrastructure from that specified in approved
25                  proposals; or
             (c)    otherwise significantly modify, expand or vary its activities
                    within the Port that are the subject of this Agreement and that
                    may be carried on by it pursuant to this Agreement beyond
                    those specified in approved proposals,
30           without the prior consent of the Minister and approval of detailed
             proposals in regard thereto in accordance with this clause.
         (2) (a)    If the Company desires to do anything mentioned in subclause
                    (1) it shall give notice thereof to the Minister and furnish to the
                    Minister with that notice an outline of its proposals in respect
35                  thereto (including such matters mentioned in paragraphs (e) -
                    (g), (i) and (j) of clause 10(1) or as the Minister otherwise
                    requires).

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               (b)   The Minister shall within one month of a notice under
                     paragraph (a) of this subclause advise the Company whether or
                     not he approves in principle the proposed action by the
                     Company so notified. An approval by the Minister under this
5                    subclause may be given subject to conditions including
                     conditions as to the matters referred to in clauses 8(1)(b)(ii) and
                     8(1)(d) provided that any such condition shall not without the
                     consent of the Company require variations of:
                     (i)    the term of the Special Railway Licence, Lateral Access
10                          Road Licences, the Port Lease, the Port Infrastructure
                            Licence or the Port Railway Licence;
                     (ii)   the rentals payable under any lease or licence granted
                            under or pursuant to this Agreement; or
                     (iii) this Agreement.
15                   The Minister shall afford the Company full opportunity to
                     consult with him in respect of any decision of the Minister
                     under this subclause.
         (3) (a)     If the Minister approves in principle the proposed action of the
                     Company the Company shall within 18 months or such longer
20                   period as the Minister may from time to time allow of that
                     approval submit to the Minister detailed proposals in respect
                     thereof in accordance with any conditions of that approval,
                     otherwise that approval shall lapse.
               (b)   The Company acknowledges that the provisions of clause 9
25                   must be complied with before the Company submits its detailed
                     proposals and that notwithstanding the plan required to be
                     approved pursuant to clause 9 has not been approved, the
                     Minister's in-principle approval will lapse as provided in
                     paragraph (a) if the Company's detailed proposals are not
30                   submitted within the time required by that paragraph.
               (c)   The provisions of clause 12(4) shall apply to detailed proposals
                     submitted pursuant to this subclause.
         (4) On and after approval or determination of any such proposal pursuant
             to subclause (3)(c) the provisions of this clause shall apply mutatis
35           mutandis to any subsequent desires of the Company referred to in
             subclause (1).



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               Railway and Port (The Pilbara Infrastructure Pty Ltd)     Schedule 1
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     Grant of Licences and Lease
     14. (1) On application made by the Company to the Minister in such manner
             as the Minister may determine, not later than 3 months after all its
             proposals submitted pursuant to clause 10(1) have been approved or
5            deemed to be approved and the Company has complied with the
             provisions of clause 10(5), the State notwithstanding the Mining Act
             shall cause to be granted to the Company:
              (a)   a miscellaneous licence to conduct within the Railway Corridor
                    and in accordance with its approved proposals all activities
10                  (excluding the taking of stone, sand, clay and gravel) necessary
                    for the planning, design, construction, commissioning,
                    operation and maintenance within the Railway Corridor of the
                    SRL Railway, access roads and such of the Additional
                    Infrastructure (if any) which is to be located outside the Port
15                  ("the Special Railway Licence") such licence to be granted
                    under and subject to, except as otherwise provided in this
                    Agreement, the Mining Act in the form of Schedule 1 hereto
                    and subject to such terms and conditions as the Minister for
                    Mines may from time to time consider reasonable and at a
20                  rental calculated in accordance with the Mining Act:
                    (i)    prior to the Railway Operation Date, as if the width of the
                           Railway Corridor were 100 metres; and
                    (ii)   on and from the Railway Operation Date, at the rentals
                           from time to time prescribed under the Mining Act; and
25            (b)   a miscellaneous licence or licences to allow the construction,
                    use and maintenance of Lateral Access Roads within the routes
                    agreed for those Lateral Access Roads under clause 7(1) (each a
                    "Lateral Access Road Licence"), each such licence to be
                    granted under and subject to, except as otherwise provided in
30                  this Agreement, the Mining Act in the form of Schedule 2
                    hereto and subject to such terms and conditions as the Minister
                    for Mines may from time to time consider reasonable and at the
                    rentals from time to time prescribed under the Mining Act.
         (2) Notwithstanding the Mining Act, the term of the Special Railway
35           Licence shall, subject to the sooner determination thereof on the
             cessation or sooner determination of this Agreement, be for a period
             of 50 years commencing on the date of grant thereof.



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     Schedule 1        Railway and Port (The Pilbara Infrastructure Pty Ltd)
                       Agreement


         (3) Notwithstanding the Mining Act, the term of any Lateral Access Road
             Licence shall, subject to the sooner determination thereof on the
             cessation or sooner determination of this Agreement, be for a period
             of 4 years commencing on the date of grant thereof.
5        (4) Notwithstanding the Mining Act, and except as required to do so by
             the terms of the Special Railway Licence, the Company shall not be
             entitled to surrender the Special Railway Licence or any Lateral
             Access Road Licence or any part or parts of them without the prior
             consent of the Minister.
10       (5) For the purposes of this Agreement and without limiting the operation
             of subclauses (1) to (4) above and subclause (6), the application of the
             Mining Act and the regulations made thereunder are specifically
             modified;
               (a)   in section 91(1) by:
15                   (i)     deleting "the mining registrar or the warden, in
                             accordance with section 42 (as read with section 92)" and
                             substituting "the Minister";
                     (ii)    deleting "any person" and substituting "the Company"
                             (as defined in the agreement made on 10 November 2004
20                           between The Honourable Geoffrey Ian Gallop, Premier
                             of the State of Western Australia acting for and on behalf
                             of the said State and its instrumentalities from time to
                             time, The Pilbara Infrastructure Pty Ltd
                             ACN 103 096 340 and Fortescue Metals Group Ltd
25                           ACN 002 594 872)";
                     (iii)   deleting "for any one or more of the purposes prescribed"
                             and substituting "for the purpose specified in
                             clause 14(1)(a), or for the purpose specified in
                             clause 14(1)(b), of the agreement made on
30                           10 November 2004 between The Honourable Geoffrey
                             Ian Gallop, Premier of the State of Western Australia
                             acting for and on behalf of the said State and its
                             instrumentalities from time to time, The Pilbara
                             Infrastructure Pty Ltd ACN 103 096 340 and Fortescue
35                           Metals Group Ltd ACN 002 594 872";




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             Railway and Port (The Pilbara Infrastructure Pty Ltd)      Schedule 1
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            (b)   in section 91(3)(a), by deleting "prescribed form" and
                  substituting "form required by the agreement made on
                  10 November 2004 between The Honourable Geoffrey Ian
                  Gallop, Premier of the State of Western Australia acting for and
5                 on behalf of the said State and its instrumentalities from time to
                  time, The Pilbara Infrastructure Pty Ltd ACN 103 096 340 and
                  Fortescue Metals Group Ltd ACN 002 594 872";
            (c)   by deleting sections 91(6), 91(9), 91(10) and 91B;
            (d)   in section 92, by deleting "Sections 41, 42, 44, 46, 46A, 47 and
10                52(1a) apply," and inserting "Section 46A (excluding in
                  subsection (2)(a) "the mining registrar, the warden or")
                  applies," and by deleting "in those provisions" and inserting "in
                  that provision";
            (e)   by deleting the full stop at the end of the section 94(1) and
15                inserting, "except to the extent otherwise provided in, or to the
                  extent that such terms and conditions are inconsistent with, the
                  agreement made on 10 November 2004 between
                  The Honourable Geoffrey Ian Gallop, Premier of the State of
                  Western Australia acting for and on behalf of the said State and
20                its instrumentalities from time to time, The Pilbara
                  Infrastructure Pty Ltd ACN 103 096 340 and Fortescue Metals
                  Group Ltd ACN 002 594 872.";
            (f)   by deleting sections 94(2), (3) and (4);
            (g)   in section 96(1), by inserting after "miscellaneous licence" the
25                words "(not being a miscellaneous licence granted pursuant to
                  the agreement made on 10 November 2004 between The
                  Honourable Geoffrey Ian Gallop, Premier of the State of
                  Western Australia acting for and on behalf of the said State and
                  its instrumentalities from time to time, The Pilbara
30                Infrastructure Pty Ltd ACN 103 096 340 and Fortescue Metals
                  Group Ltd ACN 002 594 872)";
            (h)   by deleting mining regulations 37(2), 37(3), 42 and 42A; and
            (i)   by inserting at the beginning of mining regulations 41(c) and (f)
                  the words "subject to the agreement made on
35                10 November 2004 between The Honourable Geoffrey Ian
                  Gallop, Premier of the State of Western Australia acting for and
                  on behalf of the said State and its instrumentalities from time to



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     Schedule 1       Railway and Port (The Pilbara Infrastructure Pty Ltd)
                      Agreement


                     time, The Pilbara Infrastructure Pty Ltd ACN 103 096 340 and
                     Fortescue Metals Group Ltd ACN 002 594 872.".
         (6) If any spur line to the SRL Railway is the subject of additional
             proposals approved in accordance with clause 12, the Minister shall
5            include such spur line in the Special Railway Licence by endorsement.
         (7) On application by the Company to the Minister in such manner as the
             Minister may determine, not later than 3 months after all its proposals
             submitted pursuant to clause 10(1) have been approved or deemed to
             be approved and the Company has complied with the provisions of
10           clause 10(5), the State shall arrange to have the Port Authority grant to
             the Company under the Port Authorities Act:
               (a)   a lease to allow in accordance with its approved proposals the
                     construction, operation and maintenance within the Port
                     Facilities Area of the Port Facilities ("Port Lease"); and
15             (b)   if there is to be any Port Additional Infrastructure, a licence to
                     allow in accordance with its approved proposals the
                     construction, operation and maintenance within the Port
                     Additional Infrastructure Area of the Port Additional
                     Infrastructure and access roads ("Port Additional
20                   Infrastructure Licence"); or
               (c)   if any part of the Railway is to be in the Port, a licence to allow
                     in accordance with its approved proposals the construction,
                     operation and maintenance within the Port Railway Area of the
                     Railway and access roads ("Port Railway Licence"),
25             each for a term which commences on the date of grant thereof and
               which ends at the same time as the Special Railway Licence and on
               such terms and conditions including rental as shall be reasonable and
               as are consistent with the terms of this Agreement and with approved
               proposals.
30       (8) The State shall ensure that the Port Authority does not:
             (a) charge the Company a rental on a basis which is different from
                   the basis on which the Port Authority charges other users of the
                   Port for rentals; or




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              (b)   impose on the Company charges (other than rentals) for
                    services or matters (including for port enhancement) which are
                    different from charges which the Port Authority imposes on
                    other users of the Port for the same services or matters,
5             except:
              (c) where and to the extent that such a difference can be
                    commercially justified by the Port Authority on reasonable
                    grounds; or
              (d)   where, in any particular case of a difference between a rental or
10                  charge imposed on the Company and a rental or charge imposed
                    on another user of the Port, the rental or charge which the Port
                    Authority imposes upon that other user is required to be
                    imposed at a particular rate or level due to a legally binding
                    obligation owed by the Port Authority to the other user which is
15                  in existence at the date of this Agreement and the Port
                    Authority is not subject to a similar obligation owed to the
                    Company;
              (e)   where the differences in the charge reasonably and consistently
                    recognize the contribution to common user infrastructure by
20                  another user and where the monies raised by such charges,
                    together with all interest earned on that money, less the
                    proportion of the dividend payable by the Port Authority from
                    time to time under section 84 of the Port Authorities Act and of
                    the tax equivalent sum payable by the Port Authority from time
25                  to time under the State Enterprises (Commonwealth Tax
                    Equivalents) Act 1996, are applied, or will be applied, to the
                    provision of further common user infrastructure.

     Construction and Operation of Railway and Additional Infrastructure
     15. (1) Subject to and in accordance with approved proposals, the Rail Safety
30           Act and the State having assured to the Company all necessary rights
             over Crown land (as defined in the LAA) available for the purpose the
             Company shall in a proper and workmanlike manner and in
             accordance with recognised standards for railways of a similar nature
             operating under similar conditions construct the Railway and
35           associated access roads within the Railway Corridor and the Port
             Railway Area and shall also construct inter alia any necessary sidings,
             crossing points, bridges, signalling switches and other works and
             appurtenances and provide for crossings and (where appropriate and

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     Schedule 1        Railway and Port (The Pilbara Infrastructure Pty Ltd)
                       Agreement


               required by the Minister) grade separation or other protective devices
               including flashing lights and boom gates at places where the Railway
               crosses or intersects with major roads or existing railways.
         (2) The Company shall during the continuance of this Agreement:
5              (a)   keep the Railway and any Additional Infrastructure constructed
                     under this Agreement in operation;
               (b)   ensure that the Railway and any Additional Infrastructure
                     constructed under this Agreement are operated in a safe and
                     proper manner in compliance with all applicable laws from time
10                   to time; and
               (c)   without limiting subclause (2)(b) or clause 19, ensure that the
                     obligations imposed under the Rail Safety Act on an owner and
                     an operator (as those terms are therein defined) are complied
                     with in connection with the Railway and (from such time as the
15                   Access Act and the Access Code apply to the Railway) ensure
                     that the obligations imposed under the Access Act and the
                     Access Code on a railway owner (as that term is therein
                     defined) are complied with in connection with the Railway,
               and nothing in this Agreement shall be construed to exempt the
20             Company or any other person from compliance with the Rail Safety
               Act and (from such time as they apply as referred to in clause 16(2))
               the Access Act and the Access Code, or limit their application to the
               Company's operations generally.
         (3) The Company shall provide crossings for livestock and also for any
25           roads, other railways, conveyors, pipelines and other utilities which
             now exist and the Company shall on reasonable terms and conditions
             allow such crossings for roads, railways, conveyors, pipelines and
             other utilities which may be constructed for future needs and which
             may be required to cross the Railway.
30       (4) In relation to its use of the Railway when transporting passengers or
             carrying iron ore products, freight goods or other products, the
             Company shall not be deemed to be a common carrier at law or
             otherwise.
         (5) The Company shall at all times be the holder of the Special Railway
35           Licence, Lateral Access Road Licences, the Port Additional
             Infrastructure Licence and the Port Railway Licence and (without


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             Railway and Port (The Pilbara Infrastructure Pty Ltd)      Schedule 1
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            limiting clause 34) shall at all times own manage and control the use
            of the Railway and all Additional Infrastructure constructed under this
            Agreement.
       (6) The Company shall not be entitled to exclusive possession of the land
5          the subject of the Special Railway Licence or any Lateral Access
           Road Licence to the intent that the State, the Minister, the Minister for
           Mines and any persons authorised by any of them from time to time
           shall be entitled to enter upon the land or any part of it at all
           reasonable times and on reasonable notice with all necessary vehicles,
10         plant and equipment and for purposes related to this Agreement or
           such other purposes as they think fit but in doing so shall be subject to
           the reasonable directions of the Company so as not to unreasonably
           interfere with the Company's operations.
       (7) The Company's ownership of the Railway and Additional
15         Infrastructure constructed under this Agreement shall not give it an
           interest in the land underlying them.
       (8) The Company shall not at any time without the prior consent of the
           Minister dismantle, sell or otherwise dispose of any part or parts of the
           Railway or Additional Infrastructure constructed under this
20         Agreement, or permit this to occur, other than for the purpose of
           maintenance, repair, upgrade or renewal.
       (9) The Company shall use all reasonable endeavours to ensure that,
           during the continuance of this Agreement, the Railway has or could
           have, with modifications which are technically feasible at a reasonable
25         cost, such characteristics as enable:
            (a)   rail operations of the kind carried out on the Pilbara Iron Ore
                  Railways to be carried out on the Railway, and vice versa; and
            (b)   connection of the Railway to any one or more of the Pilbara
                  Iron Ore Railways.
30     (10) The Company shall, subject to and in accordance with approved
            proposals, in a proper and workmanlike manner, construct any
            Additional Infrastructure approved for construction under this
            Agreement and associated access roads and the Lateral Access Roads.
       (11) The Company shall:
35          (a)   be responsible for the cost of construction and maintenance of
                  all Private Roads;

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     Schedule 1       Railway and Port (The Pilbara Infrastructure Pty Ltd)
                      Agreement


               (b)   at its own cost erect signposts and take other steps that may be
                     reasonable in the circumstances to prevent any persons and
                     vehicles (other than those engaged upon the Company's
                     activities and its invitees and licensees and persons who have
5                    rights under the Access Act and the Access Code to use those
                     roads) from using the Private Roads; and
               (c)   at any place where any Private Roads are constructed by the
                     Company so as to cross any railways or public roads provide at
                     its cost such reasonable protection and signposting as may be
10                   required by the Commissioner of Main Roads or the Public
                     Transport Authority as the case may be.
         (12) During the continuance of this Agreement the Company shall not
              trade in iron ore products.

     Access Obligations for Railway
15   16. (1) For the purposes of this clause:
               (a)   "access" includes use by persons of the Railway and the
                         Company's access roads within the Railway Corridor and
                         within the Port Railway Area but does not, for the purposes
                         of subclause 5(c) or (7)(a) include use of the Company's
20                       rolling stock, rolling stock maintenance facilities, office
                         buildings, housing, freight centres, terminal yards and
                         depots or other facilities which are not railway
                         infrastructure (as that term is defined in the Access Act);
               (b)   "Access Date" means the date on which all of the documents
25                       and matters referred to in subclause (8)(c) are approved or
                         determined under the relevant section of the Access Act or
                         of the Access Code;
               (c)   "agreement" includes an agreement, commitment or
                         arrangement which is binding or takes effect when made
30                       and an agreement, commitment or arrangement which
                         becomes binding or takes effect during the currency of this
                         Agreement with the giving of notice, lapse of time,
                         occurrence of any event, passing of any date or for any
                         other reason;
35             (d)   "railway owner" has the same meaning as in the Access Act;
               (e)   "Regulator" has the same meaning as in the Access Act; and


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             Railway and Port (The Pilbara Infrastructure Pty Ltd)          Schedule 1
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            (f)   "year" means the period of 12 months commencing on the
                      Railway Operation Date or any subsequent period of
                      12 months during the continuance of this Agreement.
       (2) (a)    The State and the Company intend that the Access Act and the
5                 Access Code shall apply to the Railway as soon as possible
                  after the Railway is constructed but before the Railway
                  Operation Date.
            (b)   The Company shall from the date occurring 6 months before the
                  date for completion of construction of the Railway specified in
10                its time program for the commencement and completion of
                  construction of the Railway submitted under clause 10(1), keep
                  the Minister fully informed as to:
                  (i)    the progress of that construction and its likely
                         completion; and
15                (ii)   the likely Railway Operation Date.
            (c)   The Company shall on the Railway Operation Date notify the
                  Minister that the first carriage of iron ore products, freight
                  goods or other products as the case may be over the Railway
                  (other than for construction or commissioning purposes) has
20                occurred.
       (3) The Company acknowledges that one of the intentions of the State and
           the Company in entering into this Agreement is that the Access Act
           and the Access Code apply to and in respect of the Railway (but not to
           the Company's rolling stock, rolling stock maintenance facilities,
25         office buildings, housing, freight centres, terminal yards and depots
           and any other facilities which are not railway infrastructure (as that
           term is defined in the Access Act) and access roads of the Company
           within the Railway Corridor and within the Port Railway Area. The
           Company:
30          (a)   acknowledges that the State shall from time to time be entitled
                  to make such legislative changes as are necessary to achieve
                  that purpose; and
            (b)   shall do all such things as the Minister reasonably requests for
                  the purposes of the Access Code applying and continuing to
35                apply to and in respect of the Railway which are not
                  inconsistent with this Agreement.



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     Schedule 1        Railway and Port (The Pilbara Infrastructure Pty Ltd)
                       Agreement


         (4) During the period prior to the Access Date:
             (a) subject to subclause (4)(b), no agreement for access to the
                  Railway or provision of rail transport services over the Railway
                  (including for purposes of transport of iron ore products, freight
5                 goods or other products) shall be made without the prior
                  consent of the Minister; and
               (b)   one or more agreements for access to the Railway or provision
                     of rail transport services over the Railway for the purposes of
                     the transport of iron ore products may be made without the prior
10                   consent of the Minister, but such agreements:
                     (i)     shall only be entered into by the Company;
                     (ii)    shall not, either alone or when taken together, allow or
                             provide for the transport (whether by the Company or any
                             other person using the Railway) of more than 45 million
15                           tonnes of iron ore products over the Railway in any year
                             during the currency of this Agreement; and
                     (iii)   shall comply with subclause (5).
         (5) The Company shall ensure that each agreement for access to the
             Railway or provision of rail transport services over the Railway
20           entered into prior to the Access Date:
               (a)   does not and will not in any way prevent alteration of practices
                     or methods of operation in relation to control and management
                     of the Railway and its use (including in respect of allocation
                     and management of the use of train paths on the Railway and
25                   management of train control and operating standards for the
                     Railway) to the extent necessary to comply with obligations of
                     a railway owner in connection with the Railway under the
                     Access Act and the Access Code after the Access Date
                     (including obligations to comply with train management
30                   guidelines in connection with the Railway from time to time
                     approved or determined under section 43 of the Access Code
                     and directions given under that section, statements of policy in
                     connection with the Railway from time to time approved or
                     determined under section 44 of the Access Code and an
35                   arrangement from time to time approved, and directions from
                     time to time given, under section 29 of the Access Act for or to
                     the railway owner in respect of the Railway);



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             Railway and Port (The Pilbara Infrastructure Pty Ltd)      Schedule 1
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            (b)   without limiting subclause (5)(a):
                  (i)   does not and will not in any way limit the discretion of
                        the Regulator in approving, determining or giving a
                        direction in respect of train management guidelines in
5                       connection with the Railway under section 43 of the
                        Access Code or approving or determining a statement of
                        policy in connection with the Railway under section 44 of
                        the Access Code or under section 29 of the Access Act
                        approving an arrangement for or issuing a direction to the
10                      railway owner in respect of the Railway; and
                  (ii)   provides that, if any provision of the agreement is
                         inconsistent with a provision of the Access Act or the
                         Access Code in effect as at the Access Date (other than a
                         provision in Schedule 4 of the Access Code), or
15                       inconsistent with any statement, document, determination
                         or other requirement issued, made, approved or
                         determined under either or both of the Access Act and the
                         Access Code as at the Access Date, the relevant provision
                         of the Access Act or the Access Code or the statement,
20                       document, determination or other requirement (as the
                         case may be) shall prevail over the provision of the
                         agreement to the extent of that inconsistency;
            (c)   does not impose on the Company obligations, or create in
                  favour of any other person any interest, in relation to use of the
25                Railway (including in relation to allocation of train paths on the
                  Railway and management of train control for the Railway)
                  which may in effect preclude other entities from access to the
                  Railway in accordance with the Access Act and the Access
                  Code;
30          (d)   would, if that agreement were an "access agreement" within the
                  meaning of the Access Code, comply with sections 17(1)(a),
                  17(1)(c) and 36(2)(c) of the Access Code; and
            (e)   is, with effect from the Access Date, altered to comply with and
                  to be consistent with the Access Act and the Access Code
35                (except Schedule 4 of the Access Code) as at that time and with
                  each statement, document, determination and other requirement
                  at that time issued, made, approved or determined under the
                  Access Act or the Access Code as if the agreement were an
                  access agreement (as that term is defined in the Access Code).


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     Schedule 1       Railway and Port (The Pilbara Infrastructure Pty Ltd)
                      Agreement


         (6) Without limiting clause 36, the Company must, during the currency of
             this Agreement, consult with and keep the State fully informed
             concerning any steps that the Company proposes to take or is taking,
             or concerning any steps which the Company is aware any other person
5            proposes to take or is taking, to have the Railway made subject to
             Part IIIA of the Trade Practices Act.
         (7) The Company shall:
               (a)   use all reasonable endeavours to promote access to, and attract
                     customers for, the Railway; and
10             (b)   not without the prior consent of the Minister enter into or allow
                     to be entered into any agreement or arrangement, or otherwise
                     adopt any practice, whereby the Railway is connected to
                     another railway for the purpose of running rolling stock in a
                     circuit over them, or whereby the Railway otherwise does not or
15                   cannot accommodate traffic moving in both directions.
         (8) The Company shall:
               (a)   ensure that the publication referred to in section 6 of the Access
                     Code is prepared and made available for purchase no later than
                     7 days after the Access Act and the Access Code apply to the
20                   Railway;
               (b)   ensure the submission to the Regulator of the arrangement for
                     the railway owner in respect of the Railway required to be
                     approved by the Regulator under section 29 of the Access Act,
                     each of the statements in connection with the Railway required
25                   to be prepared and submitted to the Regulator under sections
                     43(3), 44(2), 46(1) and 47(1) of the Access Code and any other
                     document the subject of a notice from the Minister to the
                     Company, being a document which the Access Act or the
                     Access Code requires to be submitted by a railway owner to the
30                   Regulator, no later than 7 days after the Access Act and the
                     Access Code apply to the Railway or such earlier date specified
                     in the Access Act or the Access Code (as the case may be) for
                     preparation and submission of such arrangement or statements;
                     and




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              Railway and Port (The Pilbara Infrastructure Pty Ltd)       Schedule 1
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             (c)   conduct itself in such a manner as to, and do all such things as
                   are reasonable to, facilitate the approval or determination of:
                   (i)     train management guidelines in connection with the
                           Railway under section 43 of the Access Code;
5                  (ii)    statements of policy in connection with the Railway
                           under section 44 of the Access Code;
                   (iii)   costing principles in connection with the Railway under
                           section 46 of the Access Code;
                   (iv)    over-payment rules in connection with the Railway under
10                         section 47 of the Access Code;
                   (v)     an arrangement referred to in section 29(1) of the Access
                           Act for the railway owner in respect of the Railway; and
                   (vi)    any other document or matter the subject of a notice from
                           the Minister to the Company, being a document or matter
15                         which the Access Act or the Access Code requires be
                           approved or determined in connection with a railway
                           owner,
                   as soon as possible after the Access Act and the Access Code
                   apply to the Railway. Nothing in this subclause shall be taken
20                 to exempt the railway owner in respect of the Railway from any
                   obligation or requirement of the railway owner under the
                   Access Act or the Access Code.

     Construction and Operation of Port Facilities
     17. (1) Subject to and in accordance with approved proposals the Company
25           shall:
             (a)   construct the Port Facilities within the Port Facilities Area in a
                   proper and workmanlike manner and in accordance with
                   recognised standards for port facilities of a similar nature
                   operating under similar conditions;
30           (b)   keep the Port Facilities in operation; and
             (c)   ensure the Port Facilities are operated in a safe and proper
                   manner in compliance with all applicable laws.




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     Schedule 1       Railway and Port (The Pilbara Infrastructure Pty Ltd)
                      Agreement


         (2) The Company shall at all times be the holder of the Port Lease and
             (without limiting clause 34) shall at all times manage and control the
             use of the Port Facilities.
         (3) The Company shall not at any time without prior consent of the
5            Minister dismantle, sell or otherwise dispose of any part or parts of the
             Port Facilities constructed under this Agreement, or permit this to
             occur other than for the purpose of maintenance, repair, upgrade or
             renewal.

     Access Obligations for Port Facilities and Additional Infrastructure
10   18. (1) For the purposes of this clause:
             (a) "access" includes use by persons of the services provided by
                        Port Facilities and Additional Infrastructure constructed
                        under this Agreement;
               (b)   "Access Date" means the day on which the access regime
15                       referred to in subclause (2) is approved by the Minister;
               (c)   "agreement" includes an agreement, commitment or
                         arrangement which is binding or takes effect when made
                         and an agreement, commitment or arrangement which
                         becomes binding or takes effect during the currency of this
20                       Agreement with the giving of notice, lapse of time,
                         occurrence of any event, passing of any date or for any
                         other reason;
               (d)   "Government Agreement Product" means iron ore produced,
                        or products derived from the processing of iron ore
25                      produced, from mining tenements or other titles granted
                        under or pursuant to a Government agreement in existence
                        at the date of this Agreement; and
               (e)   "year" means the period of 12 months commencing on the
                         Railway Operation Date or any subsequent period of
30                       12 months during the continuance of this Agreement.
         (2) Prior to the time at which iron ore products, freight goods or other
             products are first shipped from the Port Facilities constructed under
             this Agreement, the Company must have in place, and thereafter
             during the currency of this Agreement maintain, an access regime that
35           is approved by the Minister which provides for access to the Port
             Facilities and any Additional Infrastructure that is constructed under


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            this Agreement. When considering whether an access regime
            proposed by the Company under this clause is acceptable, the Minister
            shall have regard to the principles for access contained in section 6(4)
            of the Competition Principles Agreement made on 11 April 1995
5           between the Commonwealth, New South Wales, Victoria,
            Queensland, Western Australia, South Australia, Tasmania, the
            Australian Capital Territory and the Northern Territory.
       (3) During the continuance of this Agreement, the Company shall
           implement and comply with the access regime approved by the
10         Minister under subclause (2).
       (4) During the period prior to the commencement of an access regime
           approved by the Minister under subclause (1), subject to
           subclause (9):
            (a)   and subject to subclause (4)(b), no agreement for access to or
15                use by any person of Port Facilities or Additional Infrastructure
                  constructed under this Agreement shall be made without the
                  prior consent of the Minister (including for purposes of
                  shipping of iron ore products, freight goods or other products);
            (b)   one or more agreements for access to Port Facilities and
20                Additional Infrastructure constructed under this Agreement for
                  the purposes of shipping or transport (as applicable) of iron ore
                  products may be made without the prior consent of the Minister,
                  but such agreements:
                  (i)     shall only be entered into by the Company;
25                (ii)    shall not, either alone or when taken together, allow or
                          provide for the shipping (whether by the Company or any
                          other person using Port Facilities or Additional
                          Infrastructure constructed under this Agreement) of more
                          than 45 million tonnes of iron ore products from the Port
30                        in any year during the currency of this Agreement; and
                  (iii)   shall comply with subclause (5);
                  and
            (c)   in the event the capacity of the Port Facilities is expanded to
                  exceed 45 million tonnes per annum, the Company shall,
35                subject to subclause (4)(a), provide persons, or ensure that
                  persons are provided, with access to Port Facilities and
                  Additional Infrastructure constructed under this Agreement on


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     Schedule 1       Railway and Port (The Pilbara Infrastructure Pty Ltd)
                      Agreement


                     reasonable terms and conditions (having regard to the cost of
                     the Port Facilities or the Additional Infrastructure (as the case
                     may be) to the Company).
         (5) The Company shall ensure that each agreement for access to the Port
5            Facilities or Additional Infrastructure constructed under this
             Agreement which is entered into prior to the Access Date:
               (a)   does not and will not prevent alteration of practices or methods
                     of operation in relation to control and management of the Port
                     Facilities and Additional Infrastructure constructed under this
10                   Agreement and their use (including in respect of allocation of
                     berthing priority) to the extent necessary to comply with the
                     obligations of the Company under the access regime approved
                     by the Minister under subclause (2);
               (b)   without limiting subclause (5)(a), provides that, where any
15                   provision of the agreement is inconsistent with a provision of
                     the access regime approved by the Minister under subclause (2),
                     the relevant provision of the access regime shall prevail over the
                     provision of the agreement to the extent of that inconsistency;
               (c)   does not impose on the Company obligations, or create in
20                   favour of any other person any interest, in relation to access to
                     the Port Facilities or the Additional Infrastructure constructed
                     under this Agreement which may in effect preclude other
                     entities from access to the Port Facilities or the Additional
                     Infrastructure constructed under this Agreement in accordance
25                   with the access regime approved by the Minister under
                     subclause (2); and
               (d)   is, with effect from the Access Date, altered to comply with and
                     to be consistent with the access regime approved by the
                     Minister under subclause (2).
30       (6) Without limiting clause 36, the Company must, during the currency of
             this Agreement, consult with and keep the State fully informed
             concerning any steps that the Company proposes to take or is taking,
             or concerning any steps which the Company is aware any other person
             proposes to take or is taking, to have Port Facilities or Additional
35           Infrastructure constructed under this Agreement made subject to
             Part IIIA of the Trade Practices Act.




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               Railway and Port (The Pilbara Infrastructure Pty Ltd)       Schedule 1
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         (7) The Company shall use all reasonable endeavours to promote access
             to, and attract customers for, Port Facilities and Additional
             Infrastructure constructed under this Agreement.
         (8) Subject to clauses 9 and 13 the Company shall, provided such
5            investment can be justified commercially, invest in additional
             infrastructure to expand the capacity of Port Facilities and Additional
             Infrastructure constructed under this Agreement to accommodate
             demand for access. The Company shall from time to time consult
             with the Minister at the Minister's request with respect to such
10           investment and provide the Minister with such information and
             documents as the Minister requests to review whether such investment
             can be justified commercially. In the event of disagreement between
             the Minister and the Company with respect to whether any particular
             investment proposed can be justified commercially, it may be referred
15           by either party to arbitration hereunder as a dispute between the
             Company and the State. Nothing in this clause limits the discretion of
             the Minister in approving an access regime under subclause (2), or
             limits the provisions of any access regime so approved.
         (9) The Port Facilities may not at any time, unless the Minister's prior
20           consent is given, be subject to an agreement for shipping of
             Government Agreement Product.
         (10) Nothing in this Agreement shall be taken to limit the rights of the
              State to regulate access to the Port, Port Facilities and Additional
              Infrastructure in the future, or the Company's obligations to comply in
25            respect of any such regulation.

     Compliance with Laws
     19. (1) In the construction operation maintenance and use of any work
             installation plant machinery equipment service or facility provided or
             controlled by the Company, the Company shall throughout the
30           continuance of this Agreement comply with and observe the
             provisions hereof and subject thereto the laws for the time being in
             force in the said State.
         (2) The Company shall be responsible for obtaining such leases,
             authorities, permits and licences as it shall require for the obtaining of
35           stone, sand, clay and gravel for the construction of the Railway, the
             Lateral Access Roads, Additional Infrastructure (if any) and the Port
             Facilities.

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     Schedule 1        Railway and Port (The Pilbara Infrastructure Pty Ltd)
                       Agreement


     Maintenance
     20.       Throughout the continuance of this Agreement the Company shall at
               all times keep and maintain in good repair and working order and
               condition (which obligation includes, where necessary, replacing or
5              renewing all parts which are worn out or in need of replacement or
               renewal due to their age or condition) the Railway, Additional
               Infrastructure (if any), and the Port Facilities and all such other works
               installations plant machinery and equipment for the time being the
               subject of this Agreement.

10   Use of local labour professional services and materials
     21. (1) Except as otherwise agreed by the Minister the Company shall, for the
             purposes of this Agreement:
               (a)   except in those cases where the Company can demonstrate it is
                     not reasonable and economically practicable so to do, use
15                   labour available within the said State (using all reasonable
                     endeavours to ensure that as many as possible of the workforce
                     be recruited from the Pilbara region) or if such labour is not
                     available then, except as aforesaid, use labour otherwise
                     available within Australia;
20             (b)   as far as it is reasonable and economically practicable so to do,
                     use the services of engineers, surveyors, architects and other
                     professional consultants experts and specialists, project
                     managers, manufacturers, suppliers and contractors resident and
                     available within the said State, or if such services are not
25                   available within the said State, then, as far as practicable as
                     aforesaid, use the services of such persons otherwise available
                     within Australia;
               (c)   during design and when preparing specifications, calling for
                     tenders and letting contracts for works, materials, plant,
30                   equipment and supplies (which shall at all times, except where
                     it is impracticable so to do, use or be based upon Australian
                     Standards and Codes) ensure that suitably qualified Western
                     Australian and Australian suppliers, manufacturers and
                     contractors are given fair and reasonable opportunity to tender
35                   or quote;
               (d)   give proper consideration and, where possible, preference to
                     Western Australian suppliers, manufacturers and contractors


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             Railway and Port (The Pilbara Infrastructure Pty Ltd)         Schedule 1
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                  when letting contracts or placing orders for works, materials,
                  plant, equipment and supplies where price, quality, delivery and
                  service are equal to or better than that obtainable elsewhere or,
                  subject to the foregoing, give that consideration and, where
5                 possible, preference to other Australian suppliers,
                  manufacturers and contracts; and
            (e)   if, notwithstanding the foregoing provisions of this subclause, a
                  contract is to be let or an order is to be placed with other than a
                  Western Australian or Australian supplier, manufacturer or
10                contractor, give proper consideration and, where possible,
                  preference to tenders, arrangements or proposals that include
                  Australian participation where price, delivery and service are
                  otherwise equal or better.
       (2) Except as otherwise agreed by the Minister, the Company shall, in
15         every contract entered into with a third party for the supply of
           services, labour, works, materials, plant, equipment or supplies for the
           purposes of this Agreement require as a condition thereof that such
           third party shall undertake the same obligations as are referred to in
           subclause (1) and shall report to the Company concerning such third
20         party's implementation of that condition.
       (3) The Company shall:
            (a)   in respect of developments the subject or to be the subject (as
                  the case may be) of proposals submitted under clause 10,
                  submit a report to the Minister at quarterly intervals from the
25                later of the dates specified in clause 3(4) to the date of the first
                  submission of proposals under clause 10 and thereafter at
                  monthly intervals until commissioning of the Railway and the
                  Port Facilities and thereafter as requested by the Minister from
                  time to time; and
30          (b)   in respect of developments the subject or to be the subject (as
                  the case may be) of proposals submitted under clause 12 or 13,
                  submit a report to the Minister at quarterly intervals from the
                  date on which it gives notice under clause 12(1) or 13(2)(a) as
                  the case may be to the date of the first submission of proposals
35                in connection with that notice under clause 12 or 13 as the case
                  may be and thereafter at monthly intervals until commissioning
                  of the developments the subject of the proposals approved



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     Schedule 1        Railway and Port (The Pilbara Infrastructure Pty Ltd)
                       Agreement


                      pursuant to clause 12 or 13 as the case may be and thereafter as
                      requested by the Minister from time to time,
               concerning its implementation of the provisions of this clause,
               together with a copy of any report received by the Company pursuant
5              to subclause (2) during that month or longer period as the case may be
               PROVIDED THAT the Minister may agree that any such reports need
               not be provided in respect of contracts of such kind or value as the
               Minister may from time to time determine.
           (4) The Company shall keep the Minister informed on a regular basis as
10             determined by the Minister from time to time or otherwise as
               reasonably required by the Minister during the currency of this
               Agreement of any services (including any elements of the project
               investigations, design and management) and any works, materials,
               plant, equipment and supplies that it may be proposing to obtain from
15             or have carried out or permit to be obtained from or carried out
               outside Australia, together with its reasons therefor and shall, as and
               when required by the Minister, consult with the Minister with respect
               thereto.

     No discriminatory charges
20   22.       Except as provided in this Agreement the State must not impose, nor
               shall it permit or authorise any of its agencies or instrumentalities or
               any local government or other authority of the State to impose,
               discriminatory taxes, rates or charges of any nature whatsoever on or
               in respect of the titles, property or other assets, products, materials or
25             services used or produced by or through the activities of the Company
               in the conduct of the Project nor will the State take or permit to be
               taken by any such State authority any other discriminatory action
               which would deprive the Company of full enjoyment of the rights
               granted or intended to be granted under this Agreement. In the
30             application of this clause the conferral of rights upon parties to
               Government agreements shall be disregarded.

     Taking of land for the purposes of this Agreement
     23. (1) The State is hereby empowered, as and for a public work under Parts 9
             and 10 of the LAA and the Public Works Act 1902, to take for the
35           purposes of this Agreement any land (other than any part of the Port)
             which in the opinion of the Company is necessary for the Project and


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                 Railway and Port (The Pilbara Infrastructure Pty Ltd)           Schedule 1
                                                          Agreement


                which the Minister determines is appropriate to be taken for the
                Project (except any land the taking of which would be contrary to the
                provisions of a Government agreement entered into before the
                submission of the proposals relating to the proposed taking) and
5               notwithstanding any other provisions of those Acts may license that
                land to the Company.
           (2) In applying Parts 9 and 10 of the LAA and the Public Works Act 1902
               for the purposes of this Clause -
                (a)   "land" in those Acts includes a legal or equitable estate or
10                    interest in land;
                (b)   sections 170, 171, 172, 173, 174, 175 and 184 of the LAA do
                      not apply; and
                (c)   the LAA applies as if it were modified in section 177(2) by
                      inserting -
15                    (i)        after "railway" the following -
                             "
                                 or land is being taken pursuant to a Government
                                 agreement as defined in section 2 of the Government
                                 Agreements Act 1979
20                                                                                 "; and
                      (ii)       after "that Act" the following -
                                 "   or that Agreement as the case may be   ".
           (3) The Company shall pay to the State on demand the costs of or
               incidental to any land taken at the request of and on behalf of the
25             Company including but not limited to any compensation payable to
               any holder of native title or of native title rights and interests in the
               land.

     No taking of land
     24.        Subject to the performance by the Company of its obligations under
30              this Agreement, but without limiting clause 15(3) the State shall not,
                during the currency of this Agreement, without the consent of the
                Company, take or suffer or permit to be taken by any State
                instrumentality or by any local authority or other authority of the State
                any of the works, installations, plant, equipment or other property for
35              the time being belonging to the Company and the subject of or used


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     Schedule 1        Railway and Port (The Pilbara Infrastructure Pty Ltd)
                       Agreement


               for the purpose of this Agreement or any of the works on the lands the
               subject of the Special Railway Licence and, without such consent
               (which shall not be unreasonably withheld), the State shall not create
               or grant or permit or suffer to be created or granted by any
5              instrumentality or authority of the State as aforesaid any road, right-
               of-way, water right or easement of any nature or kind whatsoever over
               or in respect of any such lands which may unduly prejudice or
               interfere with the Company's activities under this Agreement.

     Commonwealth licences and consents
10   25. (1) The Company shall from time to time make application to the
             Commonwealth or to the Commonwealth constituted agency,
             authority or instrumentality concerned for the grant to it of any licence
             or consent under the laws of the Commonwealth necessary to enable
             or permit the Company to enter into this Agreement and to perform
15           any of its obligations hereunder.
           (2) On request by the Company the State shall make representations to the
               Commonwealth or to the Commonwealth constituted agency,
               authority or instrumentality concerned for the grant to the Company of
               any licence or consent mentioned in subclause (1).
20   Zoning
     26.       The State shall ensure after consultation with the relevant local
               governments that the lands the subject of the Special Railway Licence
               or a Lateral Access Road Licence shall be and remain zoned for use or
               otherwise protected during the currency of this Agreement so that the
25             activities of the Company hereunder may be undertaken and carried
               out thereon without any interference or interruption by the State or
               any State agency or instrumentality or by any local government or
               other authority of the State on the ground that such activities are
               contrary to any zoning by-law, regulation or order.
30   Assignment
     27. (1) Subject to the provisions of this clause the Company may at any time
             with the consent of the Minister assign, mortgage, charge, sublet or
             dispose of to any person the whole or any part of the rights of the
             Company hereunder (including to ownership of the Railway and the
35           Additional Infrastructure (if any) and its right to or as the holder of the
             Special Railway Licence, a Lateral Access Road Licence, the Port
             Lease, the Port Additional Infrastructure Licence or the Port Railway

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               Railway and Port (The Pilbara Infrastructure Pty Ltd)     Schedule 1
                                                        Agreement


              Licence and of the obligations of the Company hereunder subject
              however in the case of an assignment or disposition to the assignee or
              disponee (as the case may be) executing in favour of the State (unless
              the Minister otherwise determines) a deed of covenant in a form to be
5             approved by the Minister to comply with observe and perform the
              provisions hereof on the part of the Company to be complied with,
              observed or performed in regard to the matter or matters the subject of
              such assignment or disposition.
         (2) Notwithstanding anything contained in or anything done under or
10           pursuant to subclause (1) the Company will at all times during the
             currency of this Agreement be and remain liable for the due and
             punctual performance and observance of all the covenants and
             agreements on its part contained in this Agreement PROVIDED
             THAT the Minister may agree to release the Company from such
15           liability where the Minister considers such release will not be contrary
             to the interests of the State.
         (3) Notwithstanding the provision of the Mining Act insofar as the same
             may apply:
              (a)   no assignment, mortgage, charge, sublease or disposition made
20                  or given of or over the Special Railway Licence or any other
                    licence granted pursuant to this Agreement in accordance with
                    the provisions of subclause (1) and the terms of consent
                    thereunder; and
              (b)   no transfer, assignment, mortgage or sublease made or given in
25                  exercise of any power contained in any such mortgage or
                    charge,
              shall require any approval or consent other than such consent as may
              be necessary under subclause (1) and no equitable mortgage or charge
              shall be rendered ineffectual by the absence of any approval or
30            consent (otherwise than as required by this clause) or because the
              same is not registered under the provisions of the Mining Act.
     Variation or determination
     28. (1) The parties to this Agreement may from time to time by agreement in
             writing add to, substitute for, cancel or vary all or any of the
35           provisions of this Agreement for the purpose of more efficiently or
             satisfactorily implementing or facilitating any of the objects of this
             Agreement.


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     Schedule 1        Railway and Port (The Pilbara Infrastructure Pty Ltd)
                       Agreement


           (2) The Minister shall cause any agreement made pursuant to
               subclause (1) to be laid on the Table of each House of Parliament
               within 12 sitting days next following its execution.
           (3) Either House may, within 12 sitting days of that House after the
5              agreement has been laid before it, pass a resolution disallowing the
               agreement, but if after the last day on which the agreement might have
               been disallowed neither House has passed such a resolution the
               agreement shall have effect from and after that last day.
           (4) The parties may at any time by mutual agreement determine this
10             Agreement, PROVIDED THAT no matter in connection with a failure
               by the parties to agree under this subclause (4) shall be referable to
               arbitration hereunder.

     Force majeure
     29.       This Agreement shall be deemed to be made subject to any delays in
15             the performance of the obligations under this Agreement and to the
               temporary suspension of continuing obligations under this Agreement
               that may be caused by or arise from circumstances beyond the power
               and control of the party responsible for the performance of those
               obligations including (without limiting the generality of the foregoing)
20             delays or any such temporary suspension as aforesaid caused by or
               arising from act of God, force majeure, earthquakes, floods, storms,
               tempest, washaways, fire (unless caused by the actual fault or privity
               of the party responsible for such performance) act of war, act of public
               enemies, riots, civil commotions, strikes, lockouts, stoppages, restraint
25             of labour or other similar acts (whether partial or general), acts or
               omissions of the Commonwealth, shortages of labour or essential
               materials, reasonable failure to secure contractors, delays of
               contractors, factors due to overall world economic conditions or
               factors due to action taken by or on behalf of any government or
30             governmental authority (other than the State or any authority of the
               State) or factors that could not reasonably have been foreseen
               PROVIDED ALWAYS that the party whose performance of
               obligations is affected by any of the said causes must promptly give
               notice to the other party or parties of the event or events and shall use
35             its best endeavours to minimise the effects of such causes as soon as
               possible after the occurrence.




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                Railway and Port (The Pilbara Infrastructure Pty Ltd)       Schedule 1
                                                         Agreement


     Power to extend periods
     30.       Notwithstanding any provision of this Agreement, the Minister may at
               the request of the Company from time to time extend or further extend
               any period or vary or further vary any date referred to in this
5              Agreement for such period or to such later date as the Minister thinks
               fit, whether or not the period to be extended has expired or the date to
               be varied has passed.

     Determination of Agreement
     31. (1) If:
10           (a)      (i)    the Company makes default which the State considers
                             material in the due performance or observance of any of
                             the covenants or obligations of the Company in this
                             Agreement or in the Special Railway Licence, a Lateral
                             Access Road Licence, the Port Lease, the Port Additional
15                           Infrastructure Licence or the Port Railway Licence; or
                      (ii)   the Company abandons or repudiates this Agreement or
                             abandons or repudiates its activities under this
                             Agreement,
                      and such matter is not remedied within a period of 180 days
20                    after notice is given by the State as provided in subclause (2) or
                      if the matter is referred to arbitration, then within the period
                      mentioned in subclause (3); or
               (b)    the Company goes into liquidation (other than a voluntary
                      liquidation for the purpose of reconstruction) and unless within
25                    3 months from the date of such liquidation the interest of the
                      Company is assigned to an assignee approved by the Minister
                      under clause 27,
               the State may by notice to the Company determine this Agreement.
           (2) The notice to be given by the State to the Company in terms of
30             subclause (1)(a) must specify the nature of the default or other ground
               so entitling the State to exercise such right of determination and where
               appropriate and known to the State the party or parties responsible
               therefor and shall be given to the Company and all such assignees,
               mortgagees, chargees and disponees for the time being of the
35             Company's said rights to or in favour of whom or by whom an
               assignment, mortgage, charge or disposition has been effected in

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     Schedule 1       Railway and Port (The Pilbara Infrastructure Pty Ltd)
                      Agreement


               terms of clause 27 whose name and address for service of notice has
               previously been notified to the State by the Company or, any such
               assignee, mortgagee, chargee or disponee.
         (3) (a) If the Company contests the alleged default or other ground
5                referred to in subclause (1)(a) the Company shall within 60 days
                 after notice given by the State as provided in subclause (2) refer
                 the matter in dispute to arbitration.
               (b)   If the question is decided against the Company, the Company
                     must comply with the arbitration award within a reasonable
10                   time to be fixed by that award PROVIDED THAT if the
                     arbitrator finds that there was a bona fide dispute and that the
                     Company was not dilatory in pursuing the arbitration, the time
                     for compliance with the arbitration award shall not be less than
                     90 days from the date of such award.
15       (4) If the default referred to in subclause (1)(a) has not been remedied
             within a period of 180 days after receipt of the notice referred to in
             that subclause or within the time fixed by the arbitration award as
             aforesaid the State instead of determining this Agreement as aforesaid
             because of such default may itself remedy such default or cause the
20           same to be remedied (for which purpose the State by agents workmen
             or otherwise shall have full power to enter upon lands occupied by the
             Company and to make use of all plant, machinery, equipment and
             installations thereon) and the actual costs and expenses incurred by the
             State in remedying or causing to be remedied such default shall be a
25           debt payable by the Company to the State on demand.

     Effect of cessation or determination of Agreement
     32. (1) On the cessation or determination of this Agreement:
             (a) except as otherwise agreed by the Minister the rights of the
                   Company to, in or under this Agreement and the rights of the
30                 Company or any mortgagee or chargee to or in the Railway,
                   Additional Infrastructure and Port Facilities constructed under
                   this Agreement or to, in or under the Special Railway Licence,
                   Lateral Access Road Licences (if still current), the Port Lease,
                   the Port Additional Infrastructure Licence, and the Port Railway
35                 Licence, shall thereupon cease and determine but without
                   prejudice to the liability of any of the parties hereto in respect
                   of any antecedent breach or default under this Agreement or in


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                Railway and Port (The Pilbara Infrastructure Pty Ltd)       Schedule 1
                                                         Agreement


                     respect of any guarantee or indemnity given under this
                     Agreement;
               (b)   the Company shall forthwith pay to the State all money which
                     may then have become payable or accrued due; and
5              (c)   save as aforesaid and as otherwise provided in this Agreement
                     none of the parties shall have any claim against the other of
                     them with respect to any matter or thing in or arising out of this
                     Agreement.
           (2) Upon the cessation or determination of this Agreement:
10             (a)   the Minister may by notice to the Company require the
                     Company to, at the Company's cost, remove the SRL Railway
                     and any Additional Infrastructure from the Railway Corridor
                     and return the land in the Railway Corridor to a condition as
                     near as possible to the condition that land was in prior to the
15                   grant of authority under the LAA in respect of the land as
                     contemplated by clause 4; and
               (b)   (i)    the Port Facilities, that part of the Railway which is in the
                            Port and the Port Additional Infrastructure constructed
                            under this Agreement shall become and remain the
20                          absolute property of the Port Authority; and
                     (ii)   unless the Minister gives notice under subclause (2)(a),
                            the SRL Railway and Additional Infrastructure located
                            outside the Port shall become and remain the absolute
                            property of the State,
25                   without the payment of any compensation or consideration to
                     the Company or any other party and freed and discharged from
                     all mortgages and other encumbrances and the Company shall
                     do and execute all such deeds, documents and other acts,
                     matters and things (including surrenders) as the State may
30                   reasonably require to give effect to the provisions of this
                     subclause.

     Indemnity
     33.       The Company shall indemnify and keep indemnified the State and its
               servants agents and contractors in respect of all actions suits claims
35             demands or costs of third parties arising out of or in connection with
               any work carried out by or on behalf of the Company pursuant to this
               Agreement or relating to its activities hereunder or arising out of or in

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     Schedule 1         Railway and Port (The Pilbara Infrastructure Pty Ltd)
                        Agreement


               connection with the construction maintenance or use by the Company
               or its servants agents contractors or assignees of the Company's works
               or services the subject of this Agreement or the plant apparatus or
               equipment installed in connection therewith PROVIDED THAT
5              subject to the provisions of any relevant Act such indemnity will not
               apply in circumstances where the State, its servants, agents, or
               contractors are negligent in carrying out work for the Company
               pursuant to this Agreement.

     Subcontracting
10   34.       Without affecting the liabilities of the parties under this Agreement
               each of the State and the Company will have the right from time to
               time to entrust to third parties the carrying out as their agent of any
               portions of the activities which it is authorised or obliged to carry out
               hereunder.
15   Arbitration
     35. (1) Except as provided in this Agreement, any dispute or difference
             between the State and the Company arising out of or in connection
             with this Agreement, the construction of this Agreement or as to the
             rights duties or liabilities of either of them under this Agreement or as
20           to any matter to be agreed upon between them under this Agreement
             must, in default of agreement between them and in the absence of any
             provision in this Agreement to the contrary, be referred to and settled
             by arbitration under the provisions of the Commercial Arbitration
             Act 1985 and each party may be represented before the arbitrator by a
25           duly qualified legal practitioner or other representative.
           (2) Except where otherwise provided in this Agreement, the provisions of
               this clause will not apply to any case where the State, the Minister or
               any other Minister in the Government of the State is by this
               Agreement given either expressly or impliedly a discretionary power.
30         (3) The arbitrator of any submission to arbitration under this Agreement is
               hereby empowered upon the application of either the State or the
               Company, to grant in the name of the Minister any interim extension
               of any period or variation of any date referred to herein which having
               regard to the circumstances may reasonably be required in order to
35             preserve the rights of that party or of the parties to the arbitration and
               an award may in the name of the Minister grant any further extension
               or variation for that purpose.

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                Railway and Port (The Pilbara Infrastructure Pty Ltd)        Schedule 1
                                                         Agreement


     Consultation
     36.       The Company must during the currency of this Agreement consult
               with and keep the State fully informed on a confidential basis
               concerning any action that the Company proposes to take with any
5              third party (including the Commonwealth or any Commonwealth
               constituted agency, authority, instrumentality or other body) which
               might significantly affect the overall interest of the State under this
               Agreement.

     Notices
10   37.       Any notice consent or other writing authorised or required by this
               Agreement to be given or sent by the State to the Company or to the
               Guarantor will be deemed to have been duly given or sent if signed by
               the Minister or by any senior officer of the Public Service of the State
               acting by the direction of the Minister and forwarded by prepaid post
15             or handed to the Company or to the Guarantor as the case may be at
               its address hereinbefore set forth or other address in Western Australia
               nominated by the Company, or by the Guarantor as the case may be,
               to the Minister and by the Company or by the Guarantor to the State if
               signed on its behalf by any person or persons authorised by the
20             Company or by its solicitors, or by the Guarantor or by its solicitors as
               the case may be, as notified to the State from time to time and
               forwarded by prepaid post or handed to the Minister and except in the
               case of personal service any such notice consent or writing shall be
               deemed to have been duly given or sent on the day on which it would
25             be delivered in the ordinary course of post.

     Mining Agreement
     38.       The State and the Guarantor shall negotiate the terms and conditions
               of the Mining Agreement and will use all reasonable endeavours to
               enter into the agreement by not later than 31 January 2005 or as soon
30             thereafter as is practicable. The provisions of clause 35 shall not
               apply to this clause.

     Guarantee of the Company's performance
     39.       Notwithstanding any addition to or deletion or variation of the
               provisions of this Agreement or any time or other indulgence granted
35             by the State or by the Minister to the Company whether or not notice


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     Schedule 1        Railway and Port (The Pilbara Infrastructure Pty Ltd)
                       Agreement


               thereof is given to the Guarantor by the State, the Guarantor hereby
               guarantees to the State the due performance by the Company of all of
               the Company's obligations to be performed hereunder. The Minister
               may agree to release the Guarantor from this guarantee where the
5              Minister is reasonably satisfied that the Company has the financial
               capacity to perform its obligations under this Agreement. Except as
               provided in a release given under this clause, the guarantee given
               under this clause 39 shall continue notwithstanding the cessation or
               determination of this Agreement.

10   Term of Agreement
     40. (1) Subject to the provisions of clause 11(6) and clauses 31 and 32, this
             Agreement shall expire on the expiration or sooner determination or
             surrender of the Special Railway Licence.
           (2) Unless this Agreement has already determined, at any time after
15             1 January 2045, at the request of the Company, the State will confer
               with the Company with respect to agreeing to commence negotiations
               for a new agreement. The provisions of clause 35 shall not apply to
               this clause.

     Applicable law
20   41.       This Agreement is to be interpreted according to the law for the time
               being in force in the State of Western Australia.




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               Railway and Port (The Pilbara Infrastructure Pty Ltd)      Schedule 1
                                                        Agreement



                                   SCHEDULE 1

                               WESTERN AUSTRALIA

        RAILWAY AND PORT (THE PILBARA INFRASTRUCTURE PTY
                      LTD) AGREEMENT ACT

5                                 MINING ACT 1978

              MISCELLANEOUS LICENCE FOR A RAILWAY AND
                         OTHER PURPOSES

     No.
     WHEREAS by the Agreement (hereinafter called "the Agreement") ratified by
10   the Railway and Port (The Pilbara Infrastructure Pty Ltd) Agreement Act [date]
     the State agreed to grant to The Pilbara Infrastructure Pty Ltd ACN 103 096 340
     of Level 1, 46-50 Kings Park Road, West Perth, Western Australia (hereinafter
     with its successors and permitted assigns called "the Company") a
     miscellaneous licence for the construction operation and maintenance of the
15   SRL Railway (as defined in the Agreement and otherwise as provided in the
     Agreement) and, if applicable, other purposes AND WHEREAS the Company
     pursuant to clause 14(1) of the Agreement has made application for the said
     licence;
     NOW in consideration of the rents reserved by and the provisions of the
20   Agreement and in pursuance of the Railway and Port (The Pilbara Infrastructure
     Pty Ltd) Agreement Act [date] the Company is hereby granted by this licence
     authority to conduct on the land the subject of this licence as more particularly
     delineated and described from time to time in the Schedule hereto all activities
     (excluding the taking of stone, sand, clay and gravel) necessary for the
25   planning, design, construction, commissioning, operation and maintenance on
     the land the subject of this licence of the SRL Railway and Additional
     Infrastructure (as defined in the Agreement) and access roads to be located on
     the land the subject of this licence in accordance with the provisions of the
     Agreement and proposals approved under the Agreement, for the term of
30   50 years from the date hereof (subject to the sooner determination or cessation
     of the Agreement) and upon and subject to the terms covenants and conditions


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     Schedule 1          Railway and Port (The Pilbara Infrastructure Pty Ltd)
                         Agreement


     set out in the Agreement and the Mining Act 1978 as it applies to this licence,
     and any amendments to the Agreement and the Mining Act 1978 from time to
     time and to the terms and conditions (if any) now or hereafter endorsed hereon
     and the payment of rentals in respect of this licence in accordance with
5    clause 14(1)(a) of the Agreement PROVIDED ALWAYS that this licence shall
     not be determined or forfeited otherwise than in accordance with the
     Agreement.
     In this licence:
          -      If the Company be more than one the liability of the Company
10               hereunder shall be joint and several.
          -      Reference to an Act includes all amendments to that Act for the time
                 being in force and also any Act passed in substitution therefor or in
                 lieu thereof and to the regulations and by-laws of the time being in
                 force thereunder.
15                                  ENDORSEMENTS
     1.       [The area of this licence to be reduced as soon as possible after
              construction of the SRL Railway to a minimum of 80-100 metres in
              width or as otherwise approved by the Minister for the safe operation of a
              railway line and access roads.]
20   2.       [Any further conditions or stipulations as the Minister for Mines may,
              consistent with the provisions of the Agreement, determine and thereafter
              impose in respect of this licence including during the term of the
              Agreement.]
                                        SCHEDULE
25                                     Land description



     DATED at Perth this                           day of                         .


30   MINISTER FOR MINES




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               Railway and Port (The Pilbara Infrastructure Pty Ltd)    Schedule 1
                                                        Agreement



                                  SCHEDULE 2

                              WESTERN AUSTRALIA

        RAILWAY AND PORT (THE PILBARA INFRASTRUCTURE PTY
                      LTD) AGREEMENT ACT

5                                MINING ACT 1978

        MISCELLANEOUS LICENCE FOR A LATERAL ACCESS ROAD

     No.
     WHEREAS by the Agreement (hereinafter called "the Agreement") ratified by
     the Railway and Port (The Pilbara Infrastructure Pty Ltd) Agreement Act [date]
10   the State agreed to grant to The Pilbara Infrastructure Pty Ltd ACN 103 096 340
     of Level 1, 46-50 Kings Park Road, West Perth, Western Australia (hereinafter
     with its successors and permitted assigns called "the Company") a
     miscellaneous licence for the construction use and maintenance of the Lateral
     Access Roads (as defined in the Agreement) AND WHEREAS the Company
15   pursuant to clause 14(1) of the Agreement has made application for the said
     licence;
     NOW in consideration of the rents reserved by and the provisions of the
     Agreement and in pursuance of the Railway and Port (The Pilbara Infrastructure
     Pty Ltd) Agreement Act [date] the Company is hereby authorised to construct
20   use and maintain a road on the land more particularly delineated and described
     from time to time in the Schedule hereto in accordance with the provisions of
     the Agreement and proposals approved under the Agreement for a term of
     4 years commencing on the date hereof subject to the sooner determination or
     cessation of the Agreement and for the purposes and upon and subject to the
25   terms covenants and conditions set out in the Agreement and the Mining
     Act 1978 as it applies to this licence, and any amendments to the Agreement and
     the Mining Act 1978 from time to time and to the terms and conditions (if any)
     now or hereafter endorsed hereon and the payment of rentals in respect of this
     licence in accordance with clause 14(1)(b) of the Agreement PROVIDED
30   ALWAYS that this licence shall not be determined or forfeited otherwise than
     in accordance with the Agreement.


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     Schedule 1          Railway and Port (The Pilbara Infrastructure Pty Ltd)
                         Agreement


     In this licence:
          -      If the Company be more than one the liability of the Company
                 hereunder shall be joint and several.
          -      Reference to an Act includes all amendments to that Act for the time
5                being in force and also any Act passed in substitution therefor or in
                 lieu thereof and to the regulations and by-laws of the time being in
                 force thereunder.
                                    ENDORSEMENTS
     1.       [Land to be surveyed at Company's cost]
10   2.       [Any further terms and conditions or stipulations as the Minister for
              Mines may, consistent with the provisions of the Agreement, determine
              and thereafter impose in respect of the licence, including during the term
              of the Agreement.]
                                        SCHEDULE
15                                    Description of land



     DATED at Perth this                           day of                         .
20

     MINISTER FOR MINES




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                 Railway and Port (The Pilbara Infrastructure Pty Ltd)    Schedule 1
                                                          Agreement


     IN WITNESS WHEREOF this Agreement has been executed by or on behalf of
     the parties hereto the day and year first hereinbefore mentioned.


5

     SIGNED by the HONOURABLE GEOFFREY IAN                          )    [Signature]
     GALLOP in the presence of:                                     )
                                                                    )




     Witness:      [Signature]
10   Name:         CLIVE MORRIS BROWN




15

     THE COMMON SEAL of THE PILBARA                                 )    [C.S.]
     INFRASTRUCTURE PTY LTD ACN 103 096 340 was                     )
     hereunto affixed in accordance with its constitution in the    )
     presence of:                                                   )




     Director:     [Signature]
20   Name:         WILLIAM GRAEME ROWLEY



     Director/Secretary:         [Signature]
     Name:                       ROD CAMPBELL
25




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    Schedule 1       Railway and Port (The Pilbara Infrastructure Pty Ltd)
                     Agreement


    THE COMMON SEAL of FORTESCUE METALS                  )                   [C.S]
    GROUP LTD ACN 002 594 872 was hereunto affixed in )
    accordance with its constitution in the presence of: )




    Director:    [Signature]
5   Name:        WILLIAM GRAEME ROWLEY



    Director/Secretary:        [Signature]
    Name:                      ROD CAMPBELL




 


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