{"id":"mcarthur-river-project-agreement-ratification-act-1992","name":"Mcarthur River Project Agreement Ratification Act 1992","slug":"mcarthur-river-project-agreement-ratification-act-1992","collection":"act","jurisdiction":"nt","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":30345,"registerId":"nt-mcarthur-river-project-agreement-ratification-act-1992-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Mcarthur River Project Agreement Ratification Act 1992","content":"NORTHERN TERRITORY OF AUSTRALIA\nMCARTHUR RIVER PROJECT AGREEMENT RATIFICATION ACT 1992\nAs in force at 1 July 2024\nTable of provisions\n1 Short title ......................................................................................... 1\n2 Commencement .............................................................................. 1\n3 Definitions ........................................................................................ 1\n3A Incorporation of words of Mining Act 1980....................................... 1\n4 Agreement ratified ........................................................................... 2\n4A Regranting of mining interests ......................................................... 2\n4AB Ratification of certain instruments.................................................... 3\n4AC Application of Part 15 of the Environment Protection Act 2019 ....... 4\n4B Compensation ................................................................................. 4\n5 Enforcement .................................................................................... 6\n6 Calculation of royalties exclusive of GST ........................................ 6\nSchedule 1 McArthur River Project Agreement\nSchedule 2 McArthur River Project Area\nENDNOTES\n\n\n\nNORTHERN TERRITORY OF AUSTRALIA\n____________________\nAs in force at 1 July 2024\n____________________\nMCARTHUR RIVER PROJECT AGREEMENT RATIFICATION ACT 1992\nAn Act to ratify an agreement between the Territory and Mount Isa mines\nlimited, and for related purposes\n1 Short title\nThis Act may be cited as the McArthur River Project Agreement\nRatification Act 1992.\n2 Commencement\nThis Act shall come into operation on a date to be fixed by the\nAdministrator by notice in the Gazette.\n3 Definitions\nIn this Act:\nAgreement means the agreement between the Territory and the\nCompany which is set out in the Schedule and includes the\nAgreement as varied from time to time in accordance with its\nprovisions.\nCompany has the same meaning as in the Agreement.\nMcArthur River Project has the same meaning as in the\nAgreement.\n3A Incorporation of words of Mining Act 1980\n(1) For the purposes of this Act and the Agreement, the words used in\nthe Mining Act 1980 as in force or purporting to be in force\nimmediately before the commencement of this section, with the\nnecessary changes, are incorporated in and, subject to\nsection 4A(3) and (4) and clause 4(2) and (6) of the Agreement,\nshall be read and applied as provisions of this Act.\n(2) A reference in the Agreement or this Act to the Mining Act 1980\nincludes a reference to the words incorporated in this Act by\nsubsection (1).\n\nMcArthur River Project Agreement Ratification Act 1992 2\n4 Agreement ratified\n(1) For the purposes of clause 2(1) of the Agreement, the Agreement is\nratified.\n(2) The implementation of the Agreement is authorised.\n(3) Subject to section 4A, the provisions of the Agreement shall\noperate and take effect according to their terms notwithstanding\nanything to the contrary in any Act or law in force in the Territory.\n(4) Where a provision of the Agreement provides for the modification of\nan Act or law in force in the Territory, the Act or law shall, for the\npurposes of the Agreement, operate and take effect as provided for\nin the Agreement as if the Act or law had been so modified.\n(5) Subject to section 4A, an Act passed after the commencement of\nthis Act shall not amend, modify or repeal a provision of the\nAgreement or affect the operation of a provision of the Agreement\nunless the Act expressly provides accordingly.\n(6) The Territory, its Ministers, instrumentalities and authorities and any\nlocal government authority are authorised, empowered and\nrequired to do all things necessary or expedient for the carrying out\nor giving full effect to the Agreement.\n(7) Subject to this Act and the Agreement, the Company, its servants,\nagents and contractors shall observe and comply with all Acts and\nlaws in force in the Territory applicable in any way to the McArthur\nRiver Project.\n4A Regranting of mining interests\n(1) Notwithstanding the granting or purported granting of the mineral\nleases and the exploration licence specified in Schedule 2, there is\nhereby granted to the Company in respect of each area of land that\nwas, immediately before the commencement of this section –\n(a) comprised in the respective mineral leases or purported\nmineral leases; or\n(b) subject to the exploration licence or purported exploration\nlicence,\nspecified in Schedule 2, a mineral lease or an exploration licence,\nas the case may be, under this Act.\n\nMcArthur River Project Agreement Ratification Act 1992 3\n(2) Notwithstanding anything in the Agreement or the Mining Act 1980:\n(a) a mineral lease granted by subsection (1) is granted for a\nperiod of 50 years from the commencement of this section;\nand\n(b) subject to paragraph (a), in respect of a mineral lease or\nexploration licence granted by subsection (1), time shall be\ncalculated as if it were granted on 5 January 1993.\n(3) Subject to subsection (2), a mineral lease or exploration licence\nvalidated by section 3 of the McArthur River Project Agreement\nRatification Amendment Act 1993 or granted by subsection (1) of\nthis section has the same force and effect, and is subject to the\nsame terms and conditions, as applied or purported to apply to the\nmineral lease or exploration licence, as the case may be, in respect\nof the relevant area of land, granted or purported to have been\ngranted before the commencement of this section under the Mining\nAct 1980 in pursuance of the Agreement and, subject to\nsubsection (4), a reference in the Mining Act 1980 (other than\nsections 17, 19, 20, 22(1), 55(j), 57, 58, 59 and 163 of the Act) or\nthe Agreement to:\n(a) a mineral lease (or, in general terms, to a mining tenement); or\n(b) an exploration licence (including the renewal of an exploration\nlicence),\nincludes a reference to a mineral lease or exploration licence\ngranted by subsection (1) or so validated.\n(4) For the avoidance of doubt and notwithstanding any other law in\nforce in the Territory, a mineral lease or exploration licence is\nvalidly and effectively granted by subsection (1) notwithstanding\nthat an application has not been made nor any action that would be\nrequired before an equivalent lease or licence could be granted\nunder the Mining Act 1980 (including the giving of any notices and a\nhearing by and recommendation of the Warden) has not been\ntaken.\n4AB Ratification of certain instruments\n(1) Despite any law to the contrary, the Authorisation:\n(a) is valid and effective; and\n(b) authorises mining activity of any kind (including the conversion\nof the Mine from an underground into an open-cut mine).\n\nMcArthur River Project Agreement Ratification Act 1992 4\n(2) Despite any law to the contrary, the Mining Management Plan:\n(a) is valid and effective; and\n(b) was validly approved by the Minister for Mines and Energy on\n13 October 2006.\n(3) This section operates retrospectively and prospectively as follows:\n(a) subsection (1) operates on each of the constituent\nauthorisations from the date on which it was purportedly\nmade; and\n(b) subsection (2) operates from 13 October 2006.\n(4) In this section:\nAuthorisation means the constituent authorisations.\nconstituent authorisations means:\n(a) the authorisation under section 36 of the Mining Management\nAct 2001 dated 21 January 2003 and numbered 0059-01; and\n(b) the further authorisation under section 36 of the Mining\nManagement Act 2001, varying that authorisation, dated\n13 October 2006, and numbered 0059-02.\nMine means the mine that forms part of the McArthur River Project.\nmining activity, see section 13A of the Environment Protection\nAct 2019.\nMining Management Plan means the mining management plan\nrelated to the Mine and purportedly approved by the Minister for\nMines and Energy on 13 October 2006.\n4AC Application of Part 15 of the Environment Protection Act 2019\nDespite section 4AB, if there is any inconsistency between\nsection 4AB and Part 15 of the Environment Protection Act 2019,\nPart 15 of the Environment Protection Act 2019 prevails.\n4B Compensation\n(1) To the extent that a relevant legislative or administrative act results\nin the acquisition of property on terms that would not (apart from\nthis section) be just, the Territory is liable to pay compensation\nsufficient to remedy the injustice.\n\nMcArthur River Project Agreement Ratification Act 1992 5\n(1A) The compensation is to be determined by agreement between the\nperson from whom the property was acquired and the Territory or,\nin default of agreement, by the Supreme Court.\n(2) A person is not entitled to compensation under this section unless,\nwithin 3 years after the acquisition, the person lodges a claim with\nthe Administrator setting out:\n(a) the person's name and an address for service in the Territory;\nand\n(b) the nature of the property acquired; and\n(c) the amount of compensation claimed.\n(3) If, at any time after a person has lodged a claim under this section,\nthe Administrator serves on the person a notice in writing that the\nAdministrator is satisfied, on reasonable grounds, that no\nagreement, or no further agreement, can be reached in respect of\nthe claim, an action by the person against the Territory under this\nsection for compensation shall not be instituted later than 6 months\nafter service of the notice.\n(4) Where an action has been instituted under this section in the\nSupreme Court and, on application by the Territory for an order\nunder this subsection, the Court is satisfied that the person claiming\ncompensation is not diligently prosecuting the action, the Court may\ndismiss the action for want of prosecution.\n(5) A notice by the Administrator for the purposes of this section may\nbe served by post on the claimant at the claimant's address in the\nTerritory for service set out in the claim lodged with the\nAdministrator.\n(6) In this section:\nacquisition of property includes:\n(a) the extinguishment or diminution of an interest in or right in\nrelation to land; and\n(b) any effect on such an interest or right, being an effect of a kind\nreferred to in section 174B or 174D of the Mining Act in\nrelation to private land.\ncompensation may include:\n(a) facilities or services agreed on between the claimant and the\nTerritory provided or to be provided to the claimant or as the\nclaimant directs; and\n\nMcArthur River Project Agreement Ratification Act 1992 6\n(b) property in substitution for property acquired.\nrelevant legislative or administrative act means:\n(a) a grant effected by section 4A; or\n(b) a validation effected by section 3 of the McArthur River Project\nAgreement Ratification Amendment Act 1993; or\n(c) the enactment of section 4AB; or\n(d) anything done under this Act.\n5 Enforcement\nNotwithstanding any Act or law in force in the Territory to the\ncontrary, a decree of specific performance may be granted and\nenforced against the Territory in respect of its obligations under the\nAgreement in the same circumstances and on the same conditions\nas such a decree could be granted and enforced against a subject\nof the Crown.\n6 Calculation of royalties exclusive of GST\n(1) For the purpose of calculating or recalculating an amount of royalty\nunder clause 22(4) of the Agreement, subject to subsection (2), an\namount or value that affects the calculation or recalculation is to be\ntaken to be the amount or value exclusive of the amount of GST (if\nany) payable in relation to a supply to which that amount or value\nrelates.\n(2) Where an amount or value that affects the calculation or\nrecalculation referred to in subsection (1) is directly attributable to\nan acquisition that relates to a supply that is input taxed, the\namount or value is to be taken to be the amount or value inclusive\nof the amount of GST (if any) payable in relation to the acquisition\nto which that amount or value relates.\n(3) For the purposes of section 4(5), the Agreement is to be taken to be\namended to the extent necessary to give effect to subsections (1)\nand (2).\n(4) In subsections (1) and (2), acquisition, GST, input taxed and\nsupply have the same respective meanings as in the A New Tax\nSystem (Goods and Services Tax) Act 1999 of the Commonwealth.\n\nSchedule 1 McArthur River Project Agreement\nMcArthur River Project Agreement Ratification Act 1992 7\nSchedule 1 McArthur River Project Agreement\nTHIS AGREEMENT is made the 25 th day of November 1992.\nBETWEEN\nTHE NORTHERN TERRITORY OF AUSTRALIA care of the Department of\nMines and Energy having its offices in the Paspalis Centrepoint Building,\nSmith Street, Darwin in the Northern Territory of Australia (the \"Territory\") of\nthe first part\nAND\nMOUNT ISA MINES LIMITED (A.C.N. 009 661 447) a company duly\nincorporated in the State of Queensland and having its registered office in that\nState at Level 2, MIM Plaza, 410 Ann Street, Brisbane (hereinafter with its\nsuccessors and permitted assigns called the \"Company\") of the second part\nWHEREAS\nA. In 1955 the Company discovered a major zinc, lead and silver\ndeposit called the H.Y.C. deposit in the McArthur River district in\nthe Northern Territory of Australia.\nB. Pursuant to section 147A of the Mining Ordinance by Notice in\nGazette No. 2 of 14 January 1977 certain lands at McArthur River\nwere reserved from occupation (\"Reservation from Occupation\nNo.581\"). The area of Reservation from Occupation No. 581 was\naltered by Notice in Gazette No. 13 of 31 March 1978.\nC. By virtue of section 69 of the Northern Territory (Self-Government)\nAct 1978 the H.Y.C. deposit was vested in the Territory.\nD. Pursuant to section 191(22) of the Mining Act, RO581 is deemed to\nbe a reservation from occupation under section 178(1) of that Act.\nE. Pursuant to section 178(2) of the Mining Act the Minister is\nempowered to authorise a person to occupy and use land reserved\nfrom occupation under section 178(1) provided that that person has\nentered into a contract with the Territory relating to the exploration,\nmining or treatment of deposits of a particular mineral or extractive\nmineral.\nF. On 4 October 1989 the Company entered into a contract with the\nTerritory under which the Company was required to carry out\nexploration which included feasibility studies of the H.Y.C. deposit\nin the northern portion of RO581 in accordance with a\npre-development program schedule.\n\nSchedule 1 McArthur River Project Agreement\nMcArthur River Project Agreement Ratification Act 1992 8\nG. On 4 October 1989 the Minister for Mines and Energy authorised\n(\"AN299\") the Company to occupy and use the northern portion of\nRO581 for the purposes of carrying out exploration, mining and\nfeasibility studies. A further authorisation (\"AN343\") to occupy and\nuse the northern portion of RO581 was issued on 13 December\n1990 with effect on and from 1 January 1991 to and including 31\nJanuary 1993.\nH. The Company is the holder of Existing Tenements situate within the\nexternal boundaries of RO581 but not forming part of RO581.\nI. Following technological and commercial studies, the Company\nwishes to commence development of the McArthur River Project.\nJ. The Territory and the Company wish to enter into this Agreement in\nrespect of the McArthur River Project for the purposes of:–\n(a) granting Mineral Leases for the purposes of the McArthur\nRiver Project situate within the external boundaries of the\nnorthern portion of RO581 and any adjoining area and over\nan area situate within the Bing Bong Pastoral Lease No. 686\nand adjacent Territory waters; and\n(b) facilitating the development, construction and operation of\nthe McArthur River Project.\nNOW THIS AGREEMENT witnesses as follows :–\n1. DEFINITIONS AND INTERPRETATION\n(1) In this Agreement unless the contrary intention appears –\nAgreement means this Agreement as varied from time to time in\naccordance with this Agreement.\nConcentrate means concentrate to be produced from the Ore.\nContractors includes subcontractors.\nExisting Tenements means the mining tenements set out in\nAnnexure A of this Agreement held by the Company together with\nany other mining tenement or interest granted pursuant to the\nMining Ordinance or the Mining Act including but not limited to a\nMiners Right, Reward Claim and Authority to Prospect held by the\nCompany, or any other related company approved in writing by the\nMinister, over or in connection with, all the land within the external\nboundaries of the northern portion of RO581.\nMcArthur River Project means the project to be developed by the\nCompany in the Northern Territory of Australia relating to the mining\n\nSchedule 1 McArthur River Project Agreement\nMcArthur River Project Agreement Ratification Act 1992 9\nof zinc-lead-silver from the mineral deposit known as the H.Y.C.\ndeposit and the subsequent treatment, storage and transport of Ore\nand Concentrate within and between the Mineral Leases within the\nexternal boundaries of the northern portion of RO581 as at the date\nof this Agreement and any adjoining areas and the area of one\nMineral Lease on the Bing Bong Pastoral Lease No. 686 and\nadjacent Territory waters. The project is for the purposes of:\n(a) mining of Ore;\n(b) processing, treatment and concentration of Ore;\n(c) storing Ore or Concentrate;\n(d) transporting Concentrate for sale, export or further processing;\n(e) exploration for minerals; and\n(f) for such other purposes in connection with the McArthur River\nProject as are necessarily incidental to paragraphs (a), (b), (c),\n(d) and (e).\nMineral Lease means a mineral lease granted pursuant to clause 4\nof this Agreement.\nMinister means the Minister of the Territory who for the time being\nis the Minister administering the Mining Act and includes any\nMinister for the time being acting for and on behalf of the Minister.\nMortgage means any mortgage, charge, assignment,\nencumbrance or other dealing by way of security.\nnorthern portion of RO581 means that portion of RO581 as is\nhatched black in the plan shown in Annexure C.\nOre means ore containing zinc, lead or silver together with any\nassociated minerals which must necessarily be mined in\nconjunction with the minerals of zinc, lead or silver.\nRO581 means the Reservation from Occupation No. 581 notified by\nGazette Notice Serial No. 46/77 in the Northern Territory\nGovernment Gazette No. 2 of 14 January 1977 but excluding from\nthat area so reserved all that land described in the Schedule to the\nNotice in Northern Territory Government Gazette No. 13 of\n31 March 1978.\nServices means the services of engineers, surveyors, architects\nand other professional consultants, experts and specialists, project\nmanagers, manufacturers, wholesalers, retailers, suppliers and\nContractors and includes any other services necessary or incidental\n\nSchedule 1 McArthur River Project Agreement\nMcArthur River Project Agreement Ratification Act 1992 10\nto the construction, continued operation or care and maintenance of\nthe McArthur River Project.\n(2) This Agreement shall be interpreted in accordance with the\nInterpretation Act 1978 of the Territory as if it were a document\nsubject to interpretation in accordance with that Act.\n2. RATIFICATION BY PARLIAMENT\n(1) This Agreement, other than sub-clause (2), shall have no force or\neffect and shall not be binding on either party unless and until it is\nsigned by both parties and is ratified by the Legislative Assembly of\nthe Northern Territory of Australia, with the assent as provided by\nthe Northern Territory (Self-Government) Act 1978 of the\nCommonwealth.\n(2) The Minister shall take all necessary action to have submitted to the\nLegislative Assembly at the earliest practicable date a Bill for an Act\nto ratify this Agreement.\n3. TERM\nThis Agreement shall commence on the date the McArthur River\nProject Agreement Ratification Act 1992 comes into operation and\nshall continue for the term of the Mineral Leases or any of them and\nany renewal unless the Agreement is terminated in accordance with\nthe terms of this Agreement.\n4. MINERAL LEASES AND EXPLORATION LICENCE\n(1) Subject to sub-clause (2) of this clause, the Company may apply for\nMineral Leases in accordance with the provisions of the Mining Act\nfor the purposes of the McArthur River Project over areas of land\nwithin the external boundaries of the northern portion of RO581,\nany area adjoining the northern portion of RO581 but outside of\nRO581 and in any event subject to and in accordance with\nsection 25 of the Mining Act, and one Mineral Lease over an area of\nland within the Bing Bong Pastoral Lease No. 686 and adjacent\nTerritory waters.\n(2) For a period of 2 years from the commencement of this Agreement\nthe provisions of sections 57, 58, 59 and 163 of the Mining Act shall\nnot apply to the McArthur River Project and the Minister shall as\nsoon as practicable following the applications made by the\nCompany grant the Mineral Leases for a term of 25 years in respect\nof the areas applied for notwithstanding there being no\nrecommendation of the Warden.\n(3) The Minister shall renew the Mineral Leases in accordance with\nsection 68 of the Mining Act for a further term of 25 years.\n\nSchedule 1 McArthur River Project Agreement\nMcArthur River Project Agreement Ratification Act 1992 11\n(4) For the purposes of this Agreement and section 168 of the Mining\nAct, the Mineral Leases within the external boundaries of the\nnorthern portion of RO581 shall be deemed to be granted in\nsubstitution for those Existing Tenements set out in Annexure A,\nthose Existing Tenements being automatically cancelled by the\ngranting of the Mineral Leases.\n(5) The Company's, and any related company's, obligations and\nliabilities under the Existing Tenements set out in Annexure A which\nwould survive or commence to apply upon cancellation, expiration\nor substitution of those Existing Tenements shall become part of\nthe obligations and liabilities of the Company under the Mineral\nLeases provided that where there is any inconsistency between the\nCompany's obligations and liabilities under the Existing Tenements\nand those under the Mineral Leases, the latter shall prevail.\n(6) Following receipt by the Minister of applications by the Company for\nMineral Leases under this clause, the following shall apply:\n(a) The Company shall as soon as possible thereafter deliver to\nthe Minister a letter stating that it does not propose to apply for\nany further mineral leases under this clause.\n(b) Upon receipt of that letter the Minister shall cancel the\nnorthern portion of RO581 with effect immediately upon\nsignature of the notice of cancellation and notwithstanding\nsection 178 of the Mining Act.\n(c) Immediately upon that cancellation, the Company shall make\napplication for and the Minister shall grant to the Company an\nexploration licence under the Mining Act for a term of 6 years\nover the balance of the former northern portion of RO581 as is\nnot the subject of any mineral lease application by the\nCompany. For the purpose of that grant, sections 17, 19, 20,\n22(1) and 163 of the Mining Act shall not apply.\n5. LEASES, LICENCES, EASEMENTS AND RIGHTS OF WAY\nThe Territory shall use its best endeavours to grant or cause to be\ngranted to the Company, upon such terms and conditions as shall\nbe agreed upon in writing between the parties, mining tenements,\nlicences, easements and rights of way reasonably required or\nincidental to the construction and operation by the Company of the\nMcArthur River Project, for a term terminating no later than the\ntermination or expiration of the Mineral Leases or any renewals of\nthe Mineral Leases.\n\nSchedule 1 McArthur River Project Agreement\nMcArthur River Project Agreement Ratification Act 1992 12\n6. ACQUISITION\n(1) The Company shall use its best endeavours to voluntarily acquire\nland or any interest in land reasonably required for the purposes of\nthe McArthur River Project before making any written request to the\nTerritory pursuant to subclause (2) of this clause.\n(2) On the written request of the Company, the Territory shall use its\nbest endeavours to voluntarily acquire or under the Lands\nAcquisition Act compulsorily acquire land or any interest in that land\nif, in the reasonable opinion of the Minister, it is of significance to\nand is reasonably required for the purposes of the McArthur River\nProject and shall sell, lease or grant licences, easements or rights\nof way in respect of that land to the Company on terms which shall\nbe agreed between the Territory and the Company.\n(3) Subject to the provisions of any agreement entered into pursuant to\nsubclause (2) of this clause the Company shall reimburse the\nTerritory for any moneys paid by the Territory in respect of the\nacquisition of that land or any interest in that land.\n7. RESUMPTION\n(1) The Territory may under and in accordance with the Lands\nAcquisition Act 1978 resume any of the land the subject of the\nMineral Leases for the purposes of roads, rights of way, stock\nroutes, railways, pipelines, power lines, communications routes,\ndrainage, schools and health facilities of any kind provided that the\nresumption does not now or in the future unreasonably prejudice or\ninterfere with the McArthur River Project.\n(2) For all other purposes, the Territory shall not, without the written\nconsent of the Company (which shall not be unreasonably\nwithheld), resume any part of the land the subject of the Mineral\nLeases.\n(3) Nothing in this clause shall prevent the Territory, its servants,\nagents and Contractors and any other person authorised by the\nTerritory from lawfully entering upon and remaining on any of the\nland the subject of the Mineral Leases or any part of the land the\nsubject of the Mineral Leases at any time.\n8. ROADS\n(1) Subject to this clause, the Territory shall, at no expense to the\nCompany, with all reasonable expedition having regard to the\nproposed timetable for the McArthur River Project and subject to\nclause 19 Force Majeure, where necessary construct and maintain\nall the road from the intersection of the access road from the H.Y.C.\ndeposit with the Carpentaria Highway to the Mineral Lease on Bing\n\nSchedule 1 McArthur River Project Agreement\nMcArthur River Project Agreement Ratification Act 1992 13\nBong Pastoral Lease No. 686 as shown in Annexure B (in this\nclause referred to as the \"road\").\n(2) The road shall be a public road which may where necessary be\nexcised by the Territory from Bing Bong Pastoral Lease No.686 at\nno cost to the Territory.\n(3) The construction and maintenance of the road shall at least be to a\nstandard determined by the Territory which is reasonable for the\npurposes of the operation of the McArthur River Project following\nconsultation with the Company, its agents and Contractors.\n(4) Vehicles used on any public street as defined by the Motor Vehicles\nAct 1949 during the construction and operation of the McArthur\nRiver Project shall be registered in the Northern Territory and\noperated in accordance with the Motor Vehicles Act 1949, the\nControl of Roads Act 1953 and the Traffic Act 1987.\n(5) Subject to sub-clause (4) of this clause, the Company, its servants,\nagents and Contractors with vehicles of all types shall at all times\nbe entitled to use the road for all purposes associated with the\nMcArthur River Project.\n(6) The Territory shall not assess any road toll or subject to sub-clause\n(4) of this clause other charges in relation to the use of the road by\nthe Company, its agents and Contractors.\n(7) Subject to subclauses (1) and (3) of this clause, the Territory shall\nnot be liable for any failure to maintain or construct the road within\nany time or to any standard under this clause.\n10. PORT\n(1) Construction of the barge loading facility (in this clause referred to\nas the \"port\") to be located within the Mineral Lease over an area\nsituate within the Bing Bong Pastoral Lease No. 686 and adjacent\nTerritory waters, shall be the responsibility of the Company.\n(2) The Company shall be the manager and operator of the port and\nshall be entitled to license or permit the use of the port or parts of\nthe port by other persons and to charge users of the port such fees\nas are necessary to recover the Company's costs of the port.\n(3) The Territory shall use its best endeavours to issue all necessary\nconsents, permits, licences and approvals to allow construction,\nmaintenance and operation of the port and if requested so to do will\njoin with the Company in seeking any consents, permits, licences\nand approvals which may be necessary from any Commonwealth\nDepartment or Authority.\n\nSchedule 1 McArthur River Project Agreement\nMcArthur River Project Agreement Ratification Act 1992 14\n11. ELECTRICITY\n(1) Subject to subclause (2) of this clause and subject to the signing of\nan electricity supply contract between the Territory and the\nCompany, the Territory shall provide electricity for the McArthur\nRiver Project.\n(2) The Company is entitled to provide electricity for the McArthur River\nProject. If the Company elects to construct, maintain and operate\nfacilities necessary for the supply of electricity for the purposes of\nthe McArthur River Project by itself, its agents or Contractors or in\nconjunction with the Territory, the Territory shall use its best\nendeavours to issue all necessary consents, permits, licences and\napprovals to allow construction, maintenance and operation of\nthose facilities. Any on-selling of electricity by the Company will be\nsubject to the prior written consent of the Territory.\n12. DOWNSTREAM PROCESSING\n(1) Having regard to the Territory's intention to have established\ndownstream processing within the Northern Territory, the Company\nshall in accordance with this clause, unless otherwise agreed in\nwriting by the Minister, investigate downstream processing of zinc,\nlead and silver within the Northern Territory.\n(2) The Company shall within 7 years of the date of this Agreement\nand every 5 years thereafter provide to the Minister, unless\notherwise agreed in writing, a written report setting out the technical\nand economic feasibility of downstream processing of zinc, lead\nand silver.\n(3) The Company shall use its best endeavours to encourage and\nsupport downstream processing of zinc, lead and silver within the\nNorthern Territory if it is technically feasible and commercially\nsound.\n(4) Nothing in this clause shall oblige the Company to disclose its own\nconfidential information or any information the disclosure of which\nwill or may be in breach of any obligation (whether statutory or\notherwise) and which in either event will or may render the\nCompany liable to a fine, penalty, forfeiture or detriment of any kind.\n(5) Nothing in this clause shall oblige the Company to process or sell\nthe Ore or Concentrate on other than commercial terms acceptable\nto it or impinge upon or restrict in any way the rights of the\nCompany to enter into and comply with contracts for the sale of\nzinc, lead and silver in any form.\n\nSchedule 1 McArthur River Project Agreement\nMcArthur River Project Agreement Ratification Act 1992 15\n13. USE OF LOCAL PROFESSIONAL SERVICES, LABOUR AND\nMATERIALS\n(1) The Company shall, for the purposes of the McArthur River Project,\nexcept in those cases where the Company can reasonably\ndemonstrate to the Territory that it is impractical for commercial,\ntechnical or other reasons so to do:\n(a) use labour available within the Northern Territory;\n(b) use Services located and available within the Northern\nTerritory or if such Services are not available within the\nNorthern Territory then as far as practical, use Services\notherwise available within Australia;\n(c) when preparing specifications, calling for tenders and letting\ncontracts for works, materials, plant, equipment and supplies\nensure that the Services providers within the Northern\nTerritory are given a reasonable opportunity to tender or\nquote; and\n(d) give, and require Contractors of the Company to give,\npreference to workers and Services providers within the\nNorthern Territory when letting contracts or placing orders for\nworks, materials, plant, equipment and supplies where price,\nquality, delivery and service are equal to or better than that\nobtainable elsewhere.\n(2) The Company shall, when requested by the Minister, such request\nnot to be made more frequently than annually, submit a written\nreport concerning the Company's compliance with and\nimplementation of the provisions of this clause and use its best\nendeavours to provide reasonable information concerning the\nContractor's compliance with paragraph (d) of sub-clause (1) of this\nclause.\n(3) For the purpose of this clause, the Company shall, at no expense to\nitself, accept the secondment of an officer of the Territory Industrial\nSupplies Office, on terms and conditions to be agreed between the\nTerritory and the company.\n14. NON DISCRIMINATION\n(1) Except as provided in clause 22 of this Agreement and section 64\nof the Mining Act, the Territory shall not impose or allow its\ninstrumentalities or authorities, or any local government authority to\nimpose discriminatory taxes, rates or charges on or in respect of\nthe activities of the Company, its agents or Contractors in the\nconstruction and operation of the McArthur River Project.\n\nSchedule 1 McArthur River Project Agreement\nMcArthur River Project Agreement Ratification Act 1992 16\n(2) The Territory shall not take or permit to be taken, any other\ndiscriminatory action which would deprive the Company of full\nenjoyment of the rights granted or to be granted to the Company\nunder this Agreement. Provided that nothing in this sub-clause\nshall prevent the Territory, servants, agents, and statutory\ncorporations from taking any lawful action under a law in force in\nthe Territory relating to the protection, conservation or rehabilitation\nof the \"environment\" as defined in the Mining Act.\n15. FINANCE\n(1) The Territory shall if it gives a notice, request or demand to the\nCompany under this Agreement, concerning other than routine\nmatters, provide to a party which has the benefit of a Mortgage a\ncopy of that notice, request or demand.\n(2) The Company shall notify the Territory of the name, address,\ntelephone and facsimile numbers of any party which has the benefit\nof a Mortgage upon execution of this Agreement and any change in\nany of them within 14 days of such a change.\n(3) It is agreed between the parties that the provisions of\nsub-clause (1) of this clause shall in no way affect the Territory's\nremedies at law against the Company.\n(4) A party which has the benefit of a Mortgage shall not be liable for\nthe Company's operation of the McArthur River Project or for the\nperformance of any of the Company's obligations under this\nAgreement provided that where pursuant to any Mortgage, such a\nparty conveys to itself an interest in a Mineral Lease and the\nMcArthur River Project, such party may then become so liable to\nthe extent of the interest so conveyed.\n16. VARIATION\n(1) The parties may vary this Agreement by further agreement in\nwriting signed by the Territory and the Company.\n(2) The Territory shall cause any further agreement made pursuant to\nsub-clause (1) of this clause, to be laid before the Legislative\nAssembly at the next sittings of the Legislative Assembly.\n(3) The Legislative Assembly may, within 10 full sitting days including\nthe day upon which the further agreement was laid before it, pass a\nresolution disallowing the further agreement, but if after the last day\non which the further agreement might have been disallowed the\nLegislative Assembly has not passed such a resolution the further\nagreement shall have effect from and after that last day.\n\nSchedule 1 McArthur River Project Agreement\nMcArthur River Project Agreement Ratification Act 1992 17\n17. NO ASSIGNMENT\n(1) The Company shall not assign its rights or obligations under this\nAgreement or any of them without the prior written consent of the\nMinister first had and obtained. Such consent shall not be\nunreasonably withheld.\n(2) The Company may mortgage, charge or encumber a Mineral Lease\nand the Minister shall consent to that mortgage, charge or\nencumbrance, provided that the consent of the Minister shall be\nrequired for any subsequent sale or transfer by the mortgagee,\nchargee or encumbrancee exercising its powers under the\nmortgage, charge or encumbrance.\n18. POWER TO VARY PERIODS\nNotwithstanding any provision of this Agreement, the Territory may\nin writing and at the request of the Company, vary any period in this\nAgreement whether or not the period to be varied has expired.\n19. FORCE MAJEURE\n(1) Subject to this clause, the time for the performance of any\nobligation of this Agreement or the Mineral Leases, except an\nobligation to pay money, which performance is delayed by\ncircumstances beyond the reasonable control of the party\nresponsible for the performance of such obligation, shall be\nextended by the period of the delay but no longer and a party shall,\nsubject to sub-clauses (2) and (3) of this clause, not be liable in\ndamages to the other nor shall any action, claim or demand be\ntaken or made against a party by reason solely of such delay in the\nperformance of such obligation in circumstances beyond the\nreasonable control of that party.\n(2) The party responsible for the performance of any such obligation\nshall use all reasonable diligence to remove the said circumstances\nand minimise the effects of the said circumstances as soon as is\nreasonably practicable after notice of the same shall have come to\nits attention save and except that the settlement of any strike,\nlockout, or other industrial dispute shall be entirely within the\ndiscretion of any party directly concerned therewith and nothing\nherein shall require the settlement thereof by acceding to the\ndemands of the opposing party or parties where such course is\nconsidered inadvisable in the absolute discretion of the party so\nconcerned.\n(3) A party shall as soon as reasonably practicable give notice to the\nother party of each event alleged to constitute circumstances\nbeyond its reasonable control, of any delay in the performance of\n\nSchedule 1 McArthur River Project Agreement\nMcArthur River Project Agreement Ratification Act 1992 18\nany obligation of this Agreement or the Mineral Leases, of the likely\nduration of the delay and of the cessation of the circumstances.\n(4) In this clause, the expression \"circumstances beyond the\nreasonable control\" shall include, without limitation, earthquakes,\nfloods, storms, tempests, cyclones, washaways, fires not caused by\nthe wilful default or gross negligence of the party responsible for\nsuch performance, acts of God, acts of war, acts of public enemies,\nriots and civil commotions, strikes, lockouts, bans, \"go-slow\"\nactivity, stoppages, restraints of labour or other similar acts\n(whether partial or entire), acts or omissions of the Commonwealth\nor any instrumentality of the Commonwealth (whether legislative,\nexecutive or administrative) or any other government or\ngovernmental authority or instrumentality or any local government\nauthority (whether legislative, executive or administrative),\nshortages of labour or essential materials, reasonable inability to\nobtain Contractors or, retain Contractors, delays of Contractors,\nactual or reasonably forecast inability to profitably sell the minerals,\ndelays or restrictions on the remittance or provision of funds to a\nparty, inability or delay in obtaining any government or local\ngovernment authority approval, permit or licence, or any other\ncause whether of a kind specifically enumerated above or otherwise\nwhich is not reasonably within the control of the party delayed.\n20. TERMINATION\n(1) The Territory may terminate this Agreement, by giving not less than\na period of one hundred and eighty (180) days notice in writing to\nthe Company in the event that the Company:\n(a) is in default in the due and punctual performance or\nobservance of any of the provisions in this Agreement, which\ndefault the Territory reasonably considers material and which\nhas not been remedied within that notice period;\n(b) subject to clause 19 abandons the McArthur River Project and\ndoes not resume operations on the McArthur River Project\nwithin that notice period. For the purposes of this provision,\n\"abandons\" shall include placing the McArthur River Project\non a care and maintenance basis for a period of more than\none year or a number of periods which total more than one\nyear, provided that the Minister may in writing in his discretion\nextend that period of one year;\n(c) repudiates any obligation the Territory reasonably considers\nmaterial under this Agreement and does not rectify such\nrepudiation within that notice period;\nsuch that this Agreement shall terminate upon the expiration of that\n\nSchedule 1 McArthur River Project Agreement\nMcArthur River Project Agreement Ratification Act 1992 19\nnotice period unless such default has been sooner remedied or\nunless such operations have been sooner resumed, or unless such\nrepudiation has been sooner rectified (as the case may be).\nProvided that in the case of a default by the Company which is not\nof the type capable of remedy within that notice period, and if the\nCompany has promptly commenced to use, upon receipt of that\nnotice, and has continued to use, its best endeavours to remedy\nthat default, then this Agreement shall not terminate upon the\nexpiration of that notice period and the Minister shall extend that\nnotice period for such further period as is reasonably necessary to\nremedy the default. Upon such an extension, the Company shall\ncontinue to use its best endeavours to remedy that default or may\npay to the Territory in lieu thereof such sum as is adequate to\ncompensate the Territory, its servants, agents, Contractors,\ninstrumentalities, authorities and local government authorities for\nthat default.\n(2) The Territory may terminate this Agreement by giving not less than\na period of ninety (90) days notice in writing to the Company if the\nCompany goes into liquidation (other than voluntary liquidation for\nthe purposes of reconstruction) and the Agreement shall terminate\nat the expiration of that ninety (90) day period unless within that\nperiod the interest of the Company in this Agreement is assigned to\nan assignee approved in writing by the Minister.\n(3) The Company may terminate this Agreement by giving not less\nthan a period of one hundred and eighty (180) days notice in writing\nto the Territory in the event that the Territory:\n(a) is in default in the due and punctual performance or\nobservance of the provisions in this Agreement, which default\nthe Company reasonably considers material and which has\nnot been remedied within that notice period; or\n(b) enacts legislation which significantly increases the obligations\nof the Company pursuant of the McArthur River Project;\nsuch that this Agreement shall terminate upon the expiration of that\nnotice period unless such default has been sooner remedied or\nunless such legislation has been sooner repealed (as the case may\nbe).\n(4) Notice given pursuant to this clause shall specify the nature of the\ndefault or the ground entitling the party to exercise such right of\ntermination.\n(5) A party who has the benefit of a Mortgage shall be entitled but not\nobliged, to rectify the default within the relevant notice period.\n\nSchedule 1 McArthur River Project Agreement\nMcArthur River Project Agreement Ratification Act 1992 20\n(6) This Agreement may be terminated at any time by agreement in\nwriting signed by the Territory and the Company.\n21. EFFECTS OF TERMINATION\n(1) On termination of this Agreement the Company shall immediately\npay all amounts due under this Agreement but unpaid to the\nTerritory.\n(2) Notwithstanding any notice of termination by the Territory, nothing\nin clause 20 shall prevent the Territory from administering and\nenforcing the law in force in the Territory in its application to the\nCompany, the McArthur River Project and the Mineral Leases.\n(3) Termination of this Agreement shall not terminate the Mineral\nLeases or any lease, licence, easement or right of way.\n(4) Any obligations of confidentiality between the parties shall continue\nafter termination of this Agreement unless otherwise agreed.\n(5) Termination of this Agreement shall not otherwise affect any\naccrued rights or remedies a party may have against the other\nparty.\n22. IMPOSTS\n(1) Subject to this clause, the Company shall not be exempt from rent,\nroyalty, duties, fees, levies, taxes or any other impost.\n(2) Stamp Duty\nThe Territory shall exempt from or refund where already paid stamp\nduty which but for the operation of this clause would or might be\nassessed and chargeable against any party to:\n(a) any joint venture agreement;\n(b) any agreement granting a right to acquire from the Company\nan interest in any of the Existing Tenements and a right to\nparticipate in a joint venture; or\n(c) any transfer or assignment of an interest in or grant of a right\nto occupy the existing tenements or Mineral Leases or any of\nthem;\nbeing an agreement, transfer or assignment entered into or grant\nmade by the Company before 30 April 1994 for the purpose of the\nMcArthur River Project.\n\nSchedule 1 McArthur River Project Agreement\nMcArthur River Project Agreement Ratification Act 1992 21\n(3) Business Franchise Act Licence Fees\nIf the Company, its agents or Contractors, acquire in the Northern\nTerritory any of their fuel for the McArthur River Project through\ndistributors operating in the Northern Territory, the Territory shall\nwaive any fee payable in respect of that fuel by the Company, its\nagents or Contractors under the Business Franchise Act to the\nextent that that fee exceeds, in the reasonable opinion of the\nMinister, that which would have been payable in Queensland under\nthe equivalent legislation (if any) had the McArthur River Project\nbeen in Queensland and the fuel was acquired in Queensland.\n(4) Royalty\n(a) Subject to this clause, the Company shall pay royalty to the\nTerritory in accordance with the provisions of the Mineral\nRoyalty Act.\n(b) Notwithstanding the Mineral Royalty Act, but subject to\nsection 4D of that Act and paragraph (c) of this sub-clause,\nthe Minister shall allow additional deductions being for costs\nincurred by the Company, or by any other related company,\nand directly relating to the McArthur River Project and the\nExisting Tenements or any of them or to RO581, in calculating\nnet value for royalty under the Mineral Royalty Act, being\ncosts so incurred from 1 January 1955 which are otherwise\nnot deductible provided that the total additional deductions of\nthe Company shall be included in the assessment of royalty in\nthe first royalty year of the Company (subject to paragraph (d)\nof this sub-clause) and shall not exceed thirty-two million\ndollars (A$32,000,000.00) in actual dollars incurred.\n(c) The Minister shall appoint a person for the purposes of\nparagraph (b) of this sub-clause. The additional deductions\nshall be allowed under that paragraph after that person has\nchecked the relevant accounts and other records and has\nadvised the Secretary in writing that he has reasonably\nsatisfied himself that the amounts claimed as additional\ndeductions were incurred by the Company or by any related\ncompany in the manner specified in paragraph (b) of this sub-\nclause.\n(d) In calculating net value for royalty under the Mineral Royalty\nAct, the Company shall be entitled to carry forward into the\nnext royalty year as a deduction any negative net value\nassessed in respect of production by the Company from the\nMineral Leases for the immediately preceding royalty year.\n\nSchedule 1 McArthur River Project Agreement\nMcArthur River Project Agreement Ratification Act 1992 22\n(e) The rate of royalty shall upon request from either party be\nreviewed by the Territory ten (10) years from the 30th day of\nJune prior to the first royalty year covered by the first royalty\nreturn, the Territory having regard to such matters as the\nprofitability of the McArthur River Project and the level of\nroyalties generally in the Commonwealth of Australia for zinc,\nlead and silver over that ten (10) year period.\n(f) The rate of or formula for royalty payable by the Company for\nthe period succeeding the review shall be the rate or formula\nagreed in writing by the parties or in the event that agreement\nis not reached then the Mineral Royalty Act will continue to\napply.\n(g) If the Company undertakes downstream processing in the\nNorthern Territory of the zinc, lead or silver Concentrate\nproduced from the McArthur River Project, then:\n(i) for the purposes of calculation of royalty payable by the\nCompany, the value of the Concentrate used in that\ndownstream processing shall be used as the basis of\nthat calculation;\n(ii) in consideration of the Company undertaking\ndownstream processing in the Northern Territory, the\nMinister may, by further agreement in writing with the\nCompany, reduce the royalty rate.\n23. TERRITORY ASSISTANCE\n(1) The Company shall from time to time make application to the\nCommonwealth or to the Commonwealth constituted agency,\nauthority or instrumentality concerned for the grant to it of any\npermit, consent, approval, authorisation, licence under the laws of\nthe Commonwealth required for the purposes of the McArthur River\nProject.\n(2) On request by the Company and where appropriate, the Territory\nshall make representations to the Commonwealth or to the\nCommonwealth constituted agency, authority or instrumentality\nconcerned for the grant to the Company of any permit, consent,\napproval, authorisation, licence or permission referred to in\nsub-clause (1) of this clause.\n\nSchedule 1 McArthur River Project Agreement\nMcArthur River Project Agreement Ratification Act 1992 23\n24. CONFIDENTIALITY\n(1) Except to the extent otherwise required by law or the Stock\nExchange Listing Rules, the Territory and the Company agree that\na party shall not make public any confidential information provided\nby the other party pursuant to this Agreement without first obtaining\nthe consent of the other party.\n(2) Nothing in sub-clause (1) of this clause shall prevent the Territory\nfrom conducting its affairs of government in the usual way.\n25. NOTICES\n(1) A notice given under this Agreement shall be:\n(a) in writing;\n(b) addressed to the address of the recipient specified in this\nAgreement or as altered by notice given in accordance with\nthis clause; and\n(c) hand delivered or sent by pre-paid post to that address or sent\nby telex or facsimile transmission and immediately confirmed\nby hand delivery or pre-paid post.\n(2) A notice given in accordance with sub-clause (1) of this clause shall\nbe deemed received:\n(a) if hand delivered, on the date of delivery;\n(b) if sent by pre-paid post, ten (10) days after the date of posting;\n(c) if sent by telex, on the business day immediately following\nreceipt by the sender of the answerback of the addressee at\nthe end of the message; and\n(d) if sent by facsimile, on the business day immediately following\nthe day of transmission (provided that the addressee has\nacknowledged receipt, which receipt shall be promptly\nacknowledged).\n(3) Notice shall be sent to the parties at the following addresses:\nThe Territory: care of The Minister for\nMines and Energy\nNT House, Mitchell Street\nDarwin NT 0800\nTelephone: (089) 896 277\nFacsimile: (089) 813 640\n\nSchedule 1 McArthur River Project Agreement\nMcArthur River Project Agreement Ratification Act 1992 24\nor where appropriate: The Secretary\nDepartment of Mines and Energy\nPaspalis Centrepoint Building,\nSmith Street,\nDarwin NT 0800\nTelephone: (089) 895461\nFacsimile: (089) 411284\nThe Company: The Secretary\nMount Isa Mines Limited\n(A.C.N. 009 661 447)\nLevel 2, MIM Plaza\n410 Ann Street\nBrisbane Qld 4000\nTelephone: (07) 833 8000\nTelex: AA40160\nFacsimile: (07) 832 2426\nor to such other address which is advised in writing by one party to\nthe other party from time to time.\n26. APPLICABLE LAW\nThis Agreement is governed by the laws of the Northern Territory of\nAustralia and the Company shall comply with all applicable laws of\nthe Commonwealth and subject to the McArthur River Project\nAgreement Ratification Act 1992 and this Agreement, all laws of the\nTerritory applicable to the McArthur River Project.\nANNEXURE A\nExisting Tenements held by the Company as at 31 July 1992:–\nTITLE LOCATION SIZE GRANT DATE\nMLN 586 McArthur River 16.18 Hect. 1.3.60\nMLN 587 \" \" \" \" 1.3.60\nMLN 588 \" \" \" \" 3.11.64\nMLN 589 \" \" \" \" \"\nMLN 590 \" \" \" \" \"\nMLN 591 \" \" \" \" \"\nMLN 592 \" \" \" \" \"\nMLN 593 \" \" \" \" \"\nMLN 594 \" \" \" \" \"\nMLN 595 \" \" \" \" \"\nMLN 596 \" \" \" \" \"\nMLN 597 \" \" \" \" \"\nMLN 598 \" \" \" \" \"\nMLN 599 \" \" \" \" \"\n\nSchedule 1 McArthur River Project Agreement\nMcArthur River Project Agreement Ratification Act 1992 25\nMLN 600 \" \" \" \" \"\nMLN 601 \" \" \" \" \"\nMLN 602 \" \" \" \" 5.1.77\nMLN 603 \" \" \" \" \"\nMLN 604 \" \" \" \" \"\nMLN 605 \" \" \" \" \"\nMLN 606 \" \" \" \" \"\nMLN 607 \" \" \" \" \"\nMLN 608 \" \" \" \" \"\nMLN 609 \" \" \" \" \"\nMLN 610 \" \" \" \" \"\nMLN 611 \" \" \" \" \"\nMLN 612 \" \" \" \" \"\nMLN 613 \" \" \" \" \"\nMLN 614 \" \" \" \" \"\nMLN 615 \" \" \" \" \"\nMLN 616 \" \" \" \" \"\nMLN 618 McArthur River 16.18 Hect. 5.1.77\nMLN 619 \" \" \" \" \"\nMLN 620 \" \" \" \" \"\nMLN 621 \" \" \" \" \"\nMLN 622 \" \" \" \" \"\nMLN 623 \" \" \" \" 5.1.77\nMLN 637 \" \" \" \" \"\nMLN 638 \" \" \" \" \"\nMLN 639 \" \" \" \" \"\nMLN 640 \" \" \" \" \"\nMLN 641 \" \" \" \" \"\nMLN 642 \" \" \" \" \"\nMLN 643 \" \" \" \" \"\nMLN 644 \" \" \" \" \"\nMLN 645 \" \" \" \" \"\nMLN 646 \" \" \" \" \"\nMLN 647 \" \" \" \" \"\nMLN 648 \" \" \" \" \"\nMLN 649 \" \" \" \" \"\nMLN 650 \" \" \" \" \"\nMLN 651 \" \" \" \" \"\nMLN 652 \" \" \" \" \"\nMLN 653 \" \" \" \" \"\nMLN 965 \" \" \" \" \"\nMLN 1114 \" \" \" \" 6.4.66\nMLN 1115 \" \" \" \" \"\n\nSchedule 1 McArthur River Project Agreement\nMcArthur River Project Agreement Ratification Act 1992 26\nAuthorised Holdings\nHLDN 88 6.71 Hect. 28.7.75 (Regn 12.8.75)\nHLDN 89 2.7 Hect. 28.7.75 (Regn 12.8.75)\nHLDN 90 6.1 Hect. 6.12.78 (Regn 23.1.79)\nHLDN 91 1.0 Hect. 6.12.78 (Regn 23.1.79)\n\nSchedule 1 McArthur River Project Agreement\nMcArthur River Project Agreement Ratification Act 1992 27\nANNEXURE B\nROAD\nANNEXURE C\nNORTHERN PORTION OF RO581\n\nSchedule 1 McArthur River Project Agreement\nMcArthur River Project Agreement Ratification Act 1992 28\nIN WITNESS WHEREOF the parties have executed this Agreement.\nSIGNED for and on behalf of )\nthe NORTHERN TERRITORY OF )\nAUSTRALIA by BARRY )\nFRANCIS COULTER, Minister ) (Sgd.) Barry Coulter\nfor Mines and Energy in the ) ......................………\npresence of: ) Signature\n(Sgd.) Mary Louise Potts\n............................………………………….\nSignature of Witness\nMary Louise Potts\n............................………………………….\nName of Witness\n25 November 1992\n............................………………………….\nDate\nThe COMMON SEAL of )\nMOUNT ISA MINES LTD )\n(A.C.N. 009 661 447) )\nwas hereunto affixed by ) (Sgd.) N. Coldham-Fussell\nauthority of a resolution ) (Sgd.) R.E. Freund\nof its Board of Directors ) .......................…………….\nin the presence of: ) Signature/Common Seal\nNorman Coldham-Fussell\n.........................……………\nName\n(Sgd.) R.P. Woods\n............................…………………………. Peter Edwin Freund\nSignature of Witness\n.......................……………...\nName\nRichard Paul Woods\n..............................………………………..\nName of Witness\n25 November 1992\n..............................\nDate\n\nSchedule 2 McArthur River Project Area\nMcArthur River Project Agreement Ratification Act 1992 29\nSchedule 2 McArthur River Project Area\nsection 4A(1)\nML N1121 372.40 Hct\nML N1122 3348.00 Hct\nML N1123 3884.00 Hct\nML N1124 3283.00 Hct\nML N1125 656.80 Hct\nML N1126 900.00 Hct\nEL 8078 6 blocks\n\nENDNOTES\nMcArthur River Project Agreement Ratification Act 1992 30\nENDNOTES\n1 KEY\nKey to abbreviations\namd = amended od = order\napp = appendix om = omitted\nbl = by-law pt = Part\nch = Chapter r = regulation/rule\ncl = clause rem = remainder\ndiv = Division renum = renumbered\nexp = expires/expired rep = repealed\nf = forms s = section\nGaz = Gazette sch = Schedule\nhdg = heading sdiv = Subdivision\nins = inserted SL = Subordinate Legislation\nlt = long title sub = substituted\nnc = not commenced\n2 LIST OF LEGISLATION\nMcArthur River Project Agreement Ratification Act 1992 (Act No. 79, 1992)\nAssent date 18 December 1992\nCommenced 5 January 1993 (Gaz S1, 5 January 1993)\nMcArthur River Project Agreement Ratification Amendment Act 1993 (Act No. 27, 1993)\nAssent date 30 June 1993\nCommenced 30 June 1993\nFinancial Relations Agreement (Consequential Provisions) Act 2000 (Act No. 32, 2000)\nAssent date 27 June 2000\nCommenced 1 July 2000 (s 2)\nMcArthur River Project Amendment (Ratification of Mining Authorities) Act 2007 (Act\nNo. 6, 2007)\nAssent date 4 May 2007\nCommenced 4 May 2007\nEnvironment Protection Legislation Amendment Act 2023 (Act No. 34, 2023)\nAssent date 6 December 2023\nCommenced pt 1, pt 3, div 1, ss 207 and 219 and pt 5: 7 December 2023\n(s 2(1)); pt 3, div 2: 1 March 2024 (s 2(2), s 2 Environment\nProtection Legislation Amendment (Chain of Responsibility)\nAct 2022 (Act No. 32, 2022) and (Gaz G4, 15 February 2024,\np 1); pt 4: 1 July 2024 (Gaz G4, 15 February 2024, p 2);\nrem: 1 March 2024 (Gaz G4, 15 February 2024, p 2)\n3 GENERAL AMENDMENTS\nGeneral amendments of a formal nature (which are not referred to in the table\nof amendments to this reprint) are made by the Interpretation Legislation\nAmendment Act 2018 (Act No. 22, 2018) to: ss 1, 3A, 4A and 4AB.\n\nENDNOTES\nMcArthur River Project Agreement Ratification Act 1992 31\n4 LIST OF AMENDMENTS\ns 3A ins No. 27, 1993, s 4\ns 4 amd No. 27, 1993, s 5\ns 4A ins No. 27, 1993, s 6\ns 4AB ins No. 6, 2007, s 3\namd No. 34, 2023, s 203\ns 4AC ins No. 34, 2023, s 204\ns 4B ins No. 27, 1993, s 6\namd No. 6, 2007, s 4\ns 6 ins No. 32, 2000, s 45\nsch 1 amd Deed 11 January 1995, (table paper No. 414)\nsch 2 ins No. 27, 1993, s 7","sortOrder":0}],"analysis":{"kimi_summary":{"_metrics":{"source":"grok-batch-everything"},"content_quality":"ok","complexity_score":8,"scope_assessment":{"changed":true,"description":"The original 1992 ratification and Agreement contemplated development based on the H.Y.C. underground deposit within RO581 with supporting infrastructure. Later insertions (section 4AB in 2007 and section 4AC in 2023) expanded scope to retrospectively validate open-cut conversion, broader mining activities and environmental authorisations, materially increasing the project's scale, environmental impact and interaction with modern regulatory regimes beyond the initial 1992 intent."},"complexity_factors":["26-clause Agreement in Schedule 1 with over 30 defined terms and extensive cross-references to the Mining Act 1980, Mineral Royalty Act, Lands Acquisition Act and Environment Protection Act 2019","Incorporation of historical Mining Act 1980 wording via section 3A, with carve-outs in section 4A(3)-(4) and Agreement clause 4(2) and (6)","Retrospective validations, procedural overrides (no Warden hearing required under section 4A(4)) and specific precedence rules (section 4AC)","Layered compensation regime in section 4B with 3-year claim limit, Supreme Court fallback, and dismissal for want of prosecution","Nested GST adjustments in section 6 and multiple amendment layers (1993, 2000, 2007, 2023) affecting royalty, authorisation and environmental provisions"],"plain_english_summary":"**This law ratifies a detailed agreement between the Northern Territory government and Mount Isa Mines Limited (the Company) to develop and operate the McArthur River zinc-lead-silver mine.** \n\nIt legally validates the project agreement in Schedule 1, grants the Company specific mineral leases and an exploration licence for up to 50 years (section 4A), and authorises infrastructure like roads, a barge port, and electricity supply. The Act overrides conflicting laws where needed (section 4(3)), incorporates parts of the old Mining Act 1980, and retrospectively validates key mining approvals and the switch to open-cut operations (section 4AB). \n\nIt requires the Company to prefer local workers and services where practical, investigate downstream processing of minerals every five years, and pay royalties with special historical cost deductions. If government actions under the law affect property rights unfairly, compensation must be paid (section 4B), with strict time limits for claims. Environmental rules from the Environment Protection Act 2019 can override parts of the ratification if they conflict (section 4AC). \n\nThe law matters because it gives the mine long-term security of tenure and government support while setting ongoing obligations on the Company to support the local economy and environment."},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":true,"description":"The Act’s original scope—ratifying a project agreement and providing tenure and implementation authorisations—has been expanded and clarified by later amendments. Statutory additions regrant and validate specific mineral leases and an exploration licence with specified terms and retrospective effect (s 4A added), validate and retrospectively confirm particular mining authorisations and a mining management plan (s 4AB added), introduce a compensation mechanism for property acquisition arising from acts under the Act (s 4B added), and preserve the primacy of Part 15 of the Environment Protection Act 2019 where inconsistent with s 4AB (s 4AC). These changes are recorded in the Act’s amendment history (Endnotes/List of amendments) and materially extended the Act’s operational and remedial architecture beyond the original ratification text."},"complexity_factors":["Interplay of an embedded commercial Agreement (Schedule 1) with statutory overrides of Territory law (s 4(3)–(5))","Statutory regranting and validation of mining tenures and administrative approvals, including retrospective effect (s 4A(1)–(4); s 4AB(1)–(3))","Multiple discrete remedies and processes (court‑ordered specific performance (s 5) and a capped compensation procedure with strict time limits (s 4B(1)–(6)))","Technical fiscal adjustments to royalty calculation tied to GST treatment and Mineral Royalty Act interaction (s 6; Schedule 1 cl 22)","Extensive delegated discretion to the Minister and Administrator across consents, approvals, and termination (Schedule 1 clauses and s 4B)","Cross‑reference to incorporated words from a repealed/older Mining Act text (s 3A) and exclusions of particular Mining Act sections (s 3A(1); s 4A(3))","Detailed operational obligations in the Agreement (infrastructure, procurement, local content, downstream processing) that impose ongoing compliance and reporting requirements (Schedule 1 cl 8, 10–13)","Amendment history and later legislative interactions (see Endnotes and s 4AC) that change the Act’s relationship with contemporary environmental law"],"plain_english_summary":"### What this law does, in plain terms\n\n- It formally ratifies and gives legal effect to a written agreement between the Northern Territory and Mount Isa Mines Limited about developing the McArthur River mining project (the Agreement) and authorises steps needed to implement it (s 4(1)–(6)).\n\n- It creates and validates mining tenures over specified areas by granting mineral leases and an exploration licence to the Company, fixes their effective dates and terms, and provides that those grants operate even if usual Mining Act procedures were not completed (s 4A(1)–(4); Schedule 2). Time for those grants is to be calculated from 5 January 1993 and mineral leases are granted for 50 years from the commencement of s 4A(2)(a) (s 4A(2)).\n\n- It incorporates words from the (former) Mining Act 1980 into this Act and the Agreement so those expressions can be applied here unless specifically excluded (s 3A).\n\n- It retrospectively and prospectively validates particular statutory authorisations and a mining management plan for the McArthur River mine, including an authorisation that allows conversion from underground to open-cut mining (s 4AB(1)–(3)).\n\n- It provides that, if there is any inconsistency between that validation and Part 15 of the Environment Protection Act 2019, Part 15 prevails (s 4AC).\n\n- It establishes a compensation process where the Territory must pay compensation if a legislative or administrative act arising from this Act results in acquisition of property on unjust terms; claims must be lodged within 3 years and disputes are by agreement or determined by the Supreme Court (s 4B(1)–(6)).\n\n- It permits courts to order specific performance against the Territory in respect of the Territory’s obligations under the Agreement on the same footing as against private parties (s 5).\n\n- It sets rules for calculating royalty bases so amounts used in royalty formulas are treated exclusive of GST except where input‑taxed treatment requires inclusion (s 6).\n\n- The full text of the Agreement is contained in Schedule 1 and sets out operational arrangements and reciprocal promises: grant and renewal of mineral leases, obligations about roads, port construction, electricity supply, local procurement and employment preferences, downstream processing reporting, stamp duty refunds for certain transactions, royalty calculation and review, acquisition procedures, resumption limits, termination rights and notice procedures (Schedule 1 clauses 1–26 and Annexures).\n\n\nWho is affected and who decides\n\n- The Company (Mount Isa Mines Limited and successors/permitted assigns) obtains long-term mineral leases, rights to construct and operate project infrastructure (port, internal roads, plant), and certain fiscal and administrative concessions (Schedule 1; s 4A; cl 8, 10, 22).\n\n- The Northern Territory government is required to take actions (for example, to grant tenures, construct/maintain a specified road at no cost to the Company, assist with Commonwealth approvals where requested, and consider certain waiver/refund obligations) and is exposed to enforcement by courts and to compensation obligations if property interests are acquired on unjust terms (s 4(6); cl 8; cl 23; s 4B; s 5).\n\n- Third parties are affected indirectly: holders of mortgages receive procedural protections (cl 15); local suppliers and labour are given contractual preference obligations from the Company (cl 13); users of the port may be licensed by the Company (cl 10).\n\n- The Minister and the Administrator retain decision-making roles with several discretions: granting consents, approving instruments, appointing a person to check additional deduction claims for royalty calculation, serving compensation‑related notices, consenting to assignments, and deciding termination (Schedule 1 cl 4, 15, 16, 17; s 4B(1A)–(3); cl 20).\n\n\nWhy it matters practically (mechanics, costs, incentives, and trade-offs)\n\n- Concentrated benefit: the Company receives secure, long-dated tenure and several project-specific concessions (grant/renewal terms, limited exclusions of Mining Act procedures, tax/fee concessions, and additional royalty deductions up to A$32,000,000) (s 4A; Schedule 1 cl 4; cl 22(b)–(d)). Those are direct, substantial advantages to the project operator.\n\n- Public obligations and costs: the Territory is obliged to act to implement the Agreement (s 4(2), (6)) and to build and maintain a specified public road at no expense to the Company (Schedule 1 cl 8(1)). The Territory may face compensation liabilities if acts under this Act acquire property on unjust terms (s 4B(1)). Those obligations can generate fiscal and administrative costs for the Territory.\n\n- Legal certainty and procedural override: the Act makes the Agreement operate notwithstanding contrary Territory laws and prevents later Territory Acts from altering Agreement provisions unless such later Acts expressly provide (s 4(3)–(5)). The Act also validates specific administrative authorisations and a mining management plan retrospectively (s 4AB(1)–(3)). Mechanically, that reduces legal uncertainty for the Company but limits the normal operation of Territory legislative or administrative processes in the specified areas.\n\n- Discretion and compliance burden: the Company must meet reporting, local‑sourcing, and operational compliance obligations (Schedule 1 cl 12, cl 13). The Minister has multiple discretionary powers (consents to assign, approval processes, appointment for verification of royalty deductions) which will shape outcomes in practice (Schedule 1 cl 15, 16, 17; cl 22(b)–(c)).\n\n- Enforcement and remedies: the Company (and others) can seek specific performance against the Territory in the Supreme Court in the same situations as against private parties (s 5), creating an enforceable remedy to compel Territory performance of Agreement obligations.\n\n- Administrative and judicial timelines: compensation claims are subject to time limits and procedural steps (3‑year claim period; potential 6‑month limitation after Administrator’s notice; court oversight over prosecution) which channel how, when, and by whom disputes are advanced (s 4B(2)–(4)).\n\n- Tax and royalty mechanics: the Act adjusts the royalty base to exclude GST in most cases (s 6(1)), while allowing inclusion where the acquisition relates to an input‑taxed supply (s 6(2)). The Agreement also sets out a review mechanism for royalty rates after ten years and allows for carrying forward negative net value for royalty calculation (Schedule 1 cl 22(e)–(f), (d)). Those rules affect project economics and tax administration.\n\n\nKey implementation risks and trade-offs to watch (mechanisms, not judgments)\n\n- Retrospective validation of approvals and leases (s 4A(4); s 4AB(3)) reduces pre-existing procedural challenges for the Company but can create legal and administrative friction for other stakeholders and regulators who would otherwise have exercised procedural roles.\n\n- The Territory’s commitments (infrastructure, consents, stamp duty refunds, fee waivers) impose potential fiscal or administrative costs; performance failures can be enforced by specific performance (s 5) or lead to compensation claims (s 4B).\n\n- The Minister’s and Administrator’s discretions (consent to assignments, appointment for audit of deductions, notices in compensation procedure) concentrate decision authority within the executive and produce implementation uncertainty tied to those exercises of discretion (Schedule 1 cl 15; cl 17; cl 22(c); s 4B(3)).\n\n- The Agreement confers project-specific fiscal treatment (royalty deduction allowances and other exemptions) that are concentrated in benefit and time‑bound (Schedule 1 cl 22(b)–(d)); the Act mechanically preserves those arrangements (s 4(3)–(5)).\n\n\nPrimary source references: key provisions cited above are from the McArthur River Project Agreement Ratification Act 1992 (ss 3A, 4, 4A, 4AB, 4AC, 4B, 5, 6) and Schedule 1 (the Agreement) as reproduced in the Act (clauses cited inline)."}},"importantCases":[],"_links":{"self":"/api/acts/mcarthur-river-project-agreement-ratification-act-1992","history":"/api/acts/mcarthur-river-project-agreement-ratification-act-1992/history","analysis":"/api/acts/mcarthur-river-project-agreement-ratification-act-1992/analysis","conflicts":"/api/acts/mcarthur-river-project-agreement-ratification-act-1992/conflicts","importantCases":"/api/acts/mcarthur-river-project-agreement-ratification-act-1992/important-cases","documents":"/api/acts/mcarthur-river-project-agreement-ratification-act-1992/documents"}}