The term of this contract shall commence on the effective date and shall expire at the earlier of (a) such time as BHP Billiton World Exploration shall have completed exploration activities and resource evaluation, or (b) 3 years after the effective date with an extension of 2 years at the option of BHP Billiton World Exploration plus any period of renewal to which the Government may agree.
The parties recognize that operations may result in some pollution contamination or other environmental damage to land, water and the atmosphere within the contract area and elsewhere. Accordingly BHP Billiton World Exploration shall submit an environmental impact statement to the Minister of Lands Mines and Energy at the commencement of exploration and production. The environmental impact statement shall show the adverse effects operations will have on the environment and review plans to mitigate such effects.
BHP Billiton World Exploration shall take preventive, corrective and/or restorative measures to ensure that all streams and water bodies within or bordering Liberia all dry land surfaces and the atmosphere be protected from pollution, contamination or damage resulting from operations related to this contract.
Subject to the terms and conditions herein provided and solely for the purposes incidental to the exercise of the rights granted to BHP Billiton World Exploration under this contract, the government hereby grants BHP Billiton World Exploration the right within the exploration areas:
(b) To remove, extract and use solely for its own exploration purpose, free of tax or other charge or fee imposed by the Government, any water, gravel sand, stone and timber (except protected fauna and flora), except that where any land houses person, or watering places for animals have been supplied water by night through custom, BHP Billiton World Exploration shall not deprive them of a constant and reasonable supply of usable water, nor shall BHP Billiton World Exploration without the government's consent interfere with any water or other rights enjoyed by anyone under any agreement with the government.
BHP Billiton World Exploration shall be subject to Liberian Income Tax Law of General Application except that notwithstanding any provisions of such laws the rate of tax applicable to all the taxable income of the BHP Billiton World Exploration shall be 30%.
Surface fees for exploration license:
BHP Billiton World Exploration shall make a payment of US$0.30 per acre for land in exploration and US$5.00 per acre for land for mining.
The first payment for the exploration license fee and surface rental shall be made in within 10 days of the effective date. Subsequent payments shall be made within 30 days after each subsequent anniversary of the effective date
BHP Billiton World Exploration shall encourage economic and social development during the term of this operation and shall provide for meetings on a regular bases between representatives of BHP Billiton World Exploration and the local communities for the purposes of considering and making recommendations to BHP Billiton World Exploration and to the Government with respect to matters of community interest, such that it shall not hinder the BHP Billiton World Exploration's work
BHP Billiton World Exploration shall not employ foreign unskilled labor. To the maximum extent feasible, BHP Billiton World Exploration shall employ Liberian citizens at all levels.
BHP Billiton World Exploration shall provide for the training of its Liberian employees to qualify them for skilled technical, administrative and managerial positions.
(a) BHP Billiton World Exploration shall commencing operations no later than 6 months after the effective date and without
interruption explore for and evaluate Iron ore deposits within the exploration area.
(b) During the exploration period BHP Billiton World Exploration shall expend
not less than US$1 per acre during each calendar year as exploration costs exploration.
Any dispute between the Government and BHP Billiton World Exploration arising out of, in relation to or in connection with this contract or its formation, or the validity interpretation performance shall be exclusively and finally settled by binding arbitration pursuant to the convention in accordance with the rules of the centre in effect on the date of this contract's signing, unless resolution by submission to an expert is specifically provided elsewhere in this contract.