The contract shall be valid from the date of its execution and for a period of 30 years thereafter. After the initial 30-year period, the contract may be renewed by mutual agreement for periods of 5 years at a time.
Exploration and Mining Licenses for coal and all associated minerals required for the production of cement in the Zenda Jan plant, leased from the Government to MIP as per the terms of the agreement
Etude sur l'impact environnemental et plan de gestion
Before exploration activities may commence, MIP will submit an environmental and social proposal detailing the anticipated effects of the exploration work on the environment and affected communities. It will also detail an Environmental and Social Impact Assessment (ESIA), dealing with measures for safeguarding of and reparation of damage to the environment and affected communities. For the mining of all minerals, MIP must submit a problem that includes an Environmental and Social Management Plan (EMSP) dealing with measures for safeguarding and reparation of damage and giving special attention to waste material. Additionaly, MIP shall prepare an ESIA of the cement production activities and operations, and submit it to the Government prior to commencing construction of the cement production facilities. It shall also prepare a cement production ESMP that presents a detailed approach to the management, mitigation or elimination of cement production impacts and risks to the environment and local residents. MIP shall also prepare a plan for the usage of water and the protection of local communities.
The Government and the Ministry of Mines shall each have the power to audit and inspect books and records of MIP for purposes of calculating the royalties' amounts due. An adequate reporting procedure will be set up for the purpose of enabling each party to be informed of the performance of its activities. MIP shall submit to the Ministry of Mines quaterly and annual reports of its activities. MIP is to provide audited financial statements annually in accordance with International Finance Reporting Standards, together with production statistics in reasonable detail. The accounts should be audited by an internally recognized acounting firm acceptable to the Government of Aghanistan.
A performance bond in the amount of $1,200,000 USD shall be provided by MIT to the Government to ensure construction of a minimum 1-million tpy cement production facility, and its related infrastructure (the amounts associated with this bond will be returned to MIP in accordance with the developments of the construction works and the production's results). A guarantee bond in the amount of $200,000 USD shall be presented as compensation for any unmitigated environmental, social, or any other damages associated with the cement production facilities. A guarantee bond in the amount of $100,000 USD will be presented as compensation for any damanfes associated with the production of coal. . Additionally, a surface use fee will be paid annually during the exploration and explotation phases for the operations area and any areas affected by the operations in the amount of US$ 25 per hectare. Finally, in case MIP decides to utilize any or all of the Zenda Jan assets (lands, buildings, machines and equipment), MIP shall pay to the government an annual amount of $1,800,000.00 (in case it decides to use all assets), or another amount to be determined by the parties if it decides to use only certain assets.
As for mined raw materials utilized in the production of cement, MIP shall pay $2.00 USD per ton of cement manufactured. For the extraction of coal, MIP shall pay the amount of $20.11 USD per ton of coal extracted.
MIT shall engage in consultation with appropriate religious and government oficials concerning the implementation of special places were religious activities shall be conducted.
MIP agrees to build a health clinic for workers and local residents, residences for workers, a center of highr education for training and capacitation of Afghan nationals for all classifications of employment in the cement production facilities, a mosque, recreational facilities, a school for the families of employees and other local children, as well as to reconstruct 11km of a road linking the facilities to the general road.
MIP is required to engage necessary employees, mine workers, and expertise within the country. When there is no internal expertise available, and with the agreement of the Government, MIP may employ foreign expertise. Afghan nationals shall be employed to the extent practible in all classifications of employment. MIP shall also develop a training program and facility of suitable capacity for the training of Afghan citizens. There must be equal treatment, facilities and opportunities for all employees (Afghan and non-Afghan) in the same job classification, regardless of nationality.
MIP (and its subcontractors) shall use its best efforts to purchase goods and services in Afghanistan if available within the country with reasonably comparable quality and delivery time, and at comparable price than goods available from abroad, including freight.
MIP Co. agrees to build residences for workers, and if the property of local people is damaged it's activities, MIP Co. will pay compensation in an amount fixed by negotiation
MIP shall build the cement production facilities and pay for all associated costs. Additionaly, MIP shall build a number of facilities destined to the performance of social services, as well as of a road connecting the cement facilities to the main road (11 km), and will be responsible for maintaining and repairing the necessary roads and facilities. Other construction commitment are related to the installation of weighing devices and a laboratory for cement quality control. All fixed assets will be automatically transferred to the Government at the end of the contract's term, without the payment of any amounts as compensation.
La sécurité physique ou la protection de la propriété
The government shall be responsible for the security of the Cement Production Facilities, as provided for in the Security Agreement to be executed between the parties.
MIP is obligated to construct cement production facilities with a design capacity of 1 million tons per year, with an estimated investment of $150,000,000 USD. Construction shall be completed for production of cement to start within a term of 3 years, and in the first year MIP is obliged to produce 60% of the agreed annual production. For accounting purposes, MIP's investment in connection with the cement facilities shall be initially estimated in the Feasibility Study, with the final amount of the initial investment determined within 6 months following the date upon which MIP commences commercial operation.
Any dispute or controversy not solved by mutual agreement shall first be referred to the Common Chamber of Commerce between Iran and Afghanistan. In case such organ does not accept the dispute, then the parties will refer the dispute to the Arbitration Institute of the Stockholm Chamber of Commerce pursuant to the Rules of Arbitration of the United Nations Comission on International Trade Law (UNCITRAL). The place of arbitration shall be Stockholm and the tribunal shall be composed of 3 arbitrators appointed in accordance with the UNCITRAL rules
MIP shall be entitled to the protection provided by all applicable provisions of the Laws of Afghanistan, including with respect to expropriation, nationalization, deprivation and confiscation of any assets
MIP shall be entitled to the protection provided by all applicable provisions of the Laws of Afghanistan, including with respect to expropriation, nationalization, deprivation and confiscation of any assets