iron ore rhodes ridge agreement

Here is the agreement...

http://www.austlii.edu.au/au/legis/wa/consol_act/ioraaa1972445/sch1.html

Can the ex RIO people confirm that RIO met its obligations? See some of the requirements below (SECTIONS 5.01, 5,02 and 12.01). Note particularly the 5+4 years (unless agreement to extend obtained).

The problem for Cazaly, as I see it, is that State and the Minister have numerous obligations themselves - if these have not been met, that probably lets RIO off the hook..., for instance in SECTION 3.09:

"The right of occupancy will ... cease ... on the happening any of the following events namely —
...
(b) upon the initial or any renewed period thereof expiring by effluxion of time; or

(e) upon the Joint Venturers making default in the due performance or observance of any of the other of the terms and conditions ... and failing to comply with a notice from the State specifying such default and calling upon the Joint Venturers to remedy the same within a period of fourteen (14) days of the service of such notice."

My reading would be that if the State did not issue a notice of default, then the "occupation" is not terminated for (e) (ie the provision is waived).

Regards
Nix
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"SECTION 5.01 INITIAL PORT PROPOSAL As soon as practicable after the completion of the investigations mentioned in Section 4.02 the Joint Venturers will submit to the Minister proposals..."

"SECTION 5.02 DETAILED PROPOSALS Subject to the proposals or any alternative proposals as to the location and development of the port being approved the Joint Venturers will on or before the fifth anniversary of the commencement date or on or before such later date as the Minister may approve submit to the Minister detailed proposals..."

"SECTION 12.01 IMPLEMENTATION OF PROPOSALS The Joint Venturers will within four (4) years next following the date on which all the said proposals required to be submitted pursuant to Section 5.02 have become approved proposals at a cost of not less than sixty million dollars ($60,000,000) construct install provide and do all things necessary to enable them to mine from the mineral lease to transport by rail to the Joint Venturers’ wharf and to commence shipment therefrom in commercial quantities at an annual rate of not less than one million (1,000,000) tons of iron ore and without lessening the generality of this provision the Joint Venturers shall within the aforesaid period or extended period as the case may be —

(a) construct install and provide upon the mineral lease or in the vicinity thereof or at the port (as the case may be) mining plant and equipment crushing screening stockpiling and car loading plant and facilities power house workshop and other things of a design and capacity adequate to enable the Joint Venturers to meet and discharge their obligations hereunder and to mine handle load and deal with not less than three thousand (3,000) tons of iron ore per diem such capacity to be built up progressively to not less than ten thousand (10,000) tons of iron ore per diem within three (3) years next following the export date;

(b) actually commence to mine transport by rail and ship from the Joint Venturers’ wharf iron ore from the mineral lease so that the average annual rate during the first two years after export date shall not be less than one million (1,000,000) tons."