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Prequalification Document for the Resident Supervision

PUNJAB MINERAL COMPANY (PVT.) LIMITED

PREQUALIFICATION DOCUMENT (PQD)

FOR THE RESIDENT SUPERVISION OF THE PROJECT


EXPLORATION AND RESOURCE ESTIMATION OF IRON ORE AND ASSOCIATED METALLIC MINERALS IN CHINIOT RAJOA, PUNJAB, PAKISTAN

36 E-REHMAN ARCADE, COURT STREET, NEAR CIVIL SECRETARIAT, LAHORE, PUNJAB, PAKISTAN Ph: # +92 42 9921 3892, +92 42 9921 2821 Fax: 92 42 9921 2822 Email: secretarymmgopb@gmail.com;email@pmc.punjab.gov.pk

PUNJAB MINERAL COMPANY (Pvt.) LIMITED

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Disclaimer

This Prequalification Document ("PQD") has been prepared by Punjab Mineral Company (Private) Limited ("PMC" or the "Client") and it constitutes no commitment on the part of PMC to enter into any arrangements with any person / entity. PMC reserves the right to withdraw from or cancel the process or any part thereof or to vary any of its terms at any time without giving any reason whatsoever. No financial or other obligation whatsoever shall accrue to PMC in such an event. The information contained in this PQD or subsequently provided to Applicants, whether verbally or in documentary or any other form by or on behalf of PMC or any of its employees or advisors, is provided to them on the terms and conditions set out in this PQD and such other terms and conditions subject to which such information is provided. This PQD does not constitute an agreement; its sole purpose is to provide interested parties with information that may be useful to them in submitting their Expressions of Interest ("EOIs") pursuant to issuance of this PQD. Any document and information submitted in response to this PQD becomes the property of PMC and PMC does not accept any responsibility for maintaining the confidentiality of the material including any trade secrets or proprietary data submitted to PMC. PMC shall not be responsible for non-receipt of correspondence sent by post / courier / email / fax. No decision should be based solely on the basis of the information provided in this PQD. PMC has no liability for any statements, opinions or information provided in this PQD. In submitting an EOI in response to this PQD, each Applicant certifies that it understands, accepts and agrees to the disclaimers set forth above. Nothing contained in any other provision of this PQD nor any statements made orally or in writing by any person or party shall have the effect of negating or suspending any of the disclaimers set forth in this disclaimer.

Prequalification Document for the Resident Supervision

TABLE OF CONTENTS

DEFINITIONS AND INTERPRETATIONS ......................................................................... SUBMISSION LETTER..................................................................................................... SECTION - A: INFORMATION TO APPLICANTS ............................................................ SECTION - B: TERMS OF REFERENCE........................................................................ SECTION - C: INSTRUCTIONS TO APPLICANTS......................................................... SECTION - D: SUBMISSION AND EVALUATION OF EOIs........................................... SECTION - E: FORMATS ................................................................................................ SECTION - F: ANNEXURE..............................................................................................

5 7 9 16 20 23 35 41

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DEFINITIONS AND INTERPRETATIONS


In this PQD, unless the context otherwise requires, the following terms shall have the meanings set forth below: "Applicant" means a Firm or a Consortium participating in the Prequalification Process for undertaking the Resident Supervision of the Project. The term Applicant has been interchangeably used with the term "Firm / Consortium" in this PQD. "Consortium" means a group of entities submitting a joint EOI for participating in the Prequalification Process for undertaking the Resident Supervision of the Project. "Contractor(s)" means the entity(ies) undertaking execution of the Project. Client or "PMC" means Punjab Mineral Company (Pvt.) Limited. "EOI" means an Expression of Interest submitted by an Applicant, in accordance with the guidelines provided in the PQD, for participating in the Prequalification Process to undertake Resident Supervision of the Project. "EOI Submission Date" is defined in paragraph 1.3 of Section - D of this PQD. "Firm" means an entity participating in the Prequalification Process for undertaking the Resident Supervision of the Project. "Project" means the exploration and resource estimation of iron ore and associated metallic minerals in Chiniot-Rajoa, Punjab, Pakistan to be undertaken by an entity/consortium to be selected by PMC pursuant to a separate bidding process. "Resident Supervision" means services to be offered in accordance with Section B: Terms of Reference of this PQD including any revisions in such Terms of Reference as are included in the Agreement to be signed between the Resident Consultant and the Client. In this PQD, unless the context otherwise requires: (a) any reference to a statutory provision shall include such provision as is from time to time modified or re-enacted or consolidated so far as such modification or re-enactment or consolidation applies or is capable of applying to any transactions entered into hereunder; the words importing singular shall include plural and vice versa, and words denoting natural persons shall include partnerships, firms, companies, corporations, joint ventures, trusts, associations, organizations or other entities (whether or not having a separate legal entity); the headings are for convenience of reference only and shall not be used in, and shall not affect, the construction or interpretation of this PQD; the words "include" and "including" are to be construed without limitation; any reference to any period of time shall mean a reference to that according to Pakistan Standard Time;
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(b)

(c) (d) (e)

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Prequalification Document for the Resident Supervision

(f) (g) (h) (i)

any reference to day shall mean a reference to a calendar day; any reference to month shall mean a reference to a calendar month; any reference to GoPb shall mean Government of the Punjab; the Annexure to this PQD or any Addenda issued later on to clarify matters, if any, form an integral part of this PQD and will be in full force and effect as though they were expressly set out in the body of this PQD; unless otherwise stated, any reference to any period commencing "from" a specified day or date and "till" or "until" a specified day or date shall include both such days or dates; any reference to "Prequalification Process" shall mean the entire process commencing from the invitation of EOIs until prequalification of Applicants; any reference to "Bidding Process" shall mean the entire process for selection of Resident Consultant commencing from issuance of Request for Proposals (RFP) to prequalified Applicants until signing of Agreement for Resident Supervision of Project; any reference to "Resident Consultant" shall mean the selected Applicant with whom Agreement for Resident Supervision of the Project will be signed.

(j)

(k) (l)

(m)

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SUBMISSION LETTER
(This letter shall be submitted by the Applicant or lead member, in case of a Consortium, on its letter head) Date: Month, Day, Year The Chief Executive Officer, Punjab Mineral Company (Pvt.) Limited 36-E Rehman Arcade, Court Street, Near Civil Secretariat, Lahore, Punjab, Pakistan. Dear Sir, SUBJECT: PREQUALIFICATION OF APPLICANT FOR THE RESIDENT SUPERVISION OF THE PROJECT EXPLORATION AND RESOURCE ESTIMATION OF IRON ORE AND ASSOCIATED METALLIC MINERALS IN CHINIOT RAJOA, PUNJAB, PAKISTAN The undersigned, being duly authorized to represent and act on behalf of (Applicant), applying to be prequalified for the Resident Supervision of the Project cited above, is pleased to enclose one (1) original (together with two copies) of our EOI in accordance with the terms set forth in the PQD and declare the following: a. We have examined and have no reservations to the PQD issued; b. We agree to comply with all the tender rules, laws and regulations governing the tender as issued by Client from time to time; c. We accept the exclusive application of the federal laws of Pakistan and provincial laws of Punjab with respect to procedures laid down in the PQD; d. We accept the right of the Client to (i) request additional information reasonably required to assess the EOI, (ii) amend the procedures and rules or make clarifications thereof, and (iii) extend or amend the schedule of the Prequalification Process and the Bidding Process; e. We understand that you may cancel the Prequalification Process at any time and that you are not bound either to accept any Application that you may receive or to invite the prequalified Applicants for the subject Project; f. Prequalified Applicants will be subjected to verification of all information submitted for prequalification at any time during the Prequalification Process; g. [Name of Applicant or lead member, in case of a Consortium] hereby represents and warrants that as of the date of this letter: All the information submitted is accurate in all respects;

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(Applicant members individually and as Consortium) has(ve) not been subject to any voluntary or involuntary bankruptcy or insolvency or similar proceeding during the last five (5) years; and (Applicant members individually and as Consortium), has(ve) paid all taxes due, except those which are being contested in good faith by appropriate proceedings and for which adequate reserves have been established. Capitalized terms used which have not been defined herein shall bear the meaning ascribed to them in the PQD. PMC and its authorized representatives may contact the following person(s) for further information, if needed: Name: Phone # Cell # Email: The undersigned declares that the statements made and the information provided in this EOI are complete, true and correct in every detail.

Signature of Authorized Signatory Name and Title of Signatory: Name of Firm: Address:

_____________________________ _____________________________ _____________________________ _____________________________

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SECTION - A: INFORMATION TO APPLICANTS

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1.

PROJECT DEVELOPMENT PROCESS AT A GLANCE

The sequence of activities to be performed during the Prequalification Process and Bidding Process is provided below for comprehension of the way forward leading to award of contract for Resident Supervision of the Project: Prequalification Process (i). (ii). (iii). (iv). (i). (ii). (iii). (iv). (v). (vi). (vii). (viii). (ix). (x). Invitation of EOIs including issuance of Prequalification Document (PQD); Submission of EOIs; Opening and Evaluation of EOIs; Prequalification of Applicants; Issuance of Request for Proposal (RFP) to the Prequalified Applicants. Pre-bid Meeting; Submission of Proposals including Bid Bond; Opening and Evaluation of Technical Proposals; Opening of Financial Proposals; Notice of Award through Issuance of Letter of Acceptance; Signing of Agreement for Resident Supervision of the Project; Placement of Performance Security and Release of Bid Bond; Commencement of Work; and Project Exit.

Bidding Process

2.

PROPOSED SCHEDULE

PMC shall endeavor to adhere to the following schedule during the Prequalification Process and Bidding Process, however, in case of any change in this schedule, PMC will inform the Applicants:
PUN JAB MINE RAL COM PAN Y (P vt.) L IMIT ED

Event Description Prequalification Process Issuance of Prequalification Document (PQD) Submission of EOIs Evaluation of EOIs Prequalification of Applicants Bidding Process

Date

January 22, 2014 February 7, 2014 February 15, 2014 February 20, 2014

Prequalification Document for the Resident Supervision

Issuance of Request for Proposal (RFP) to the Prequalified Applicants Pre-bid Meeting Submission of Proposals including Bid Bond Opening and Evaluation of Technical Proposals Opening of Financial Proposals Notice of Award through Issuance of Letter of Acceptance Signing of Agreement for Resident Supervision of the Project

February 24, 2014 March 7, 2014 March 19, 2014 March 21, 2014 April 2, 2014 April 3, 2014 April 5, 2014

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3.

INTRODUCTION AND BACKGROUND OF THE PROJECT

PURPOSE The purpose of this Prequalification Document (PQD) is to invite Expressions of Interest (EOIs) from the prospective Applicants for their prequalification. Applicants, who prequalify, will be invited to participate in the Bidding Process for award of contract for Resident Supervision of the Project. Information regarding the Project is set forth below: BRIEF INTRODUCTION 3.1 Mineral Potential in Punjab Punjab is the largest province of Pakistan with 53% contribution in national GDP whereas Punjabs Gross Regional Product is approximately PKR 13.532 trillion. Government of the Punjab, under the visionary and dynamic leadership of Chief Minister Punjab is fully committed to develop its metallic and industrial mineral resources with special focus on Iron Ore. These industrial minerals are being exploited and used at modest commercial scale, playing a significant role in the national development. Government of the Punjab has already got estimated coal resources in Salt Range Trans Indus Range at JORC Standards in February, 2013, by engaging Australian Consulting Firm M/s SNOWDEN. 3.2 The Client: Punjab Mineral Company (Pvt.) Limited (PMC) The Client (PMC) is a wholly owned company of Government of Punjab, established under Companies Ordinance 1984, duly registered with Securities & Exchange Commission of Pakistan. PMC has a highly experienced Board of Directors and, inter alia, has the mandate for promotion, exploration and resource estimation of the mineral resources of Punjab. PMC is keen to explore and accurately estimate (on International Standards) the Iron Ore and other metallic mineral resources like copper, gold, nickel, cobalt etc. as may be associated with it in the underlying polymetallic sulphide zone. 3.3 Background of Exploration and Resource Estimation of Iron Ore and Associated Metallic Minerals Potential Iron Ore resources have been discovered in Chiniot and Rajoa areas, District Chiniot in the Province of the Punjab, Pakistan. Chiniot is well connected area with the rest of the Punjab and is already famous for mining activities. The discovered Iron Ore resources are hosted by sub-surface volcanogenic rocks, which are part of the Pre-Cambrian Indian Shield rocks (almost entirely submerged under alluvial cover containing aquifers). The bedrock depth from the ground surface ranges from approximately 71 to 191 meters in Chiniot and 150 to 160 meters in Rajoa areas. At Chiniot, the mineralized body has a NW-SE strike length of 700 meters, a thickness of 200 meters and down dip extension of 330 to 400 meters, dipping steeply at 60 to 65 degrees SW. As a matter of fact, so far, 14 boreholes have been drilled in Chiniot and 3 in Rajoa area. The drilling sites are located between Latitude 31o 39' 21" to 31o 43' 16 and Longitude 72o 57' 44 to 73o 00' 30". At both locations, the

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mineralized body is not fully delineated. Map showing the probable location of the areas under exploration has been reflected below. 3.4 Exploration Area Map (Showing Bore Holes Location)

According to the past exploration, geological, geo-physical investigations / studies and drilling data carried out by Geological Survey of Pakistan (GSP), Punjab Mineral Development Corporation (PUNJMIN), and other Geo-Scientific Organizations/Firms/Consortiums, it was assessed that there are 110 million tonnes of Iron Ore deposits in Chiniot. In Rajoa area, the prospects of Iron Ore deposits need to be further explored. Based on available data, it is however anticipated that these deposits are approximately 500 million tonnes. The drill core sample analyses are also indicative of possible association of other important metallic mineral resources. Element/ Compounds Smelting Grade Iron Ore (Fe2O3> 85%) Fe2O3 % SiO2 % Al2O3 % S% 86.74 8.65 2.95 0.04 High Grade Iron Ore
(Fe2O3=70-85%)

Medium Grade Iron Ore


(Fe2O3=50- 70%)

Low Grade Iron Ore


(Fe2O3=30-50%)

75.25 15.4 2.81 0.35

55.50 31.15 5.95 0.10

39.63 41.56 7.96 0.25

Hematite Magnetite Goethite

36 80% 5 35% 50 62%

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Chemical Analysis Of Chiniot Area Element/ Compounds

Average Mineral Composition

Prequalification Document for the Resident Supervision

Pyrite/Chalcopyrite Quartz K-Feldspar Carbonate

2 8% 3 48% 2 5% 2 8%

Source: Resource Development Company (RDC) report (2000): Analysis conducted at Amdel Labs, Australia, and Chemix Labs, Vancouver, Canada as mentioned in the tables 2.1 and 2.2 of the report respectively. 3.5 Beneficiation Studies Preliminary beneficiation studies at PCSIR Labs, Lahore, Punjab showed following results: (i). (ii). Ore having > 85% Fe2O3 can directly be utilized for iron and steel making. Low, medium and high grade ores of Chiniot are amenable to upgradation using wet magnetic separation and floatation techniques, subject to pilot plant studies and economic viability of the process.

3.6 Justification for Further Exploration and Drilling Needs The drilling results are encouraging but the available past geological, geophysical and drilling data is not sufficient to precisely estimate the resources leading to pragmatic development of these deposits. Following factors provide compelling justifications for further systematic exploration. (i). Previous magnetic surveys have indicated an area of over 20 square kilometres (5000 acres) as anomalous zone near Rajoa where only three boreholes have been drilled which are inadequate and insufficient. Lower contact of the ore body at Chiniot area is yet not known because no borehole has penetrated or crossed the underlying sulphide zone to determine the mineralized zone as the drilling capacity of the rigs was not sufficient. Deep vertical and possibly inclined drilling is required. The discovery of traces of copper, cobalt, nickel and high values of vanadium and tungsten in past drilling endeavours near Chiniot area fully justify further exploration. The Project area is conceived to spread over approximately 28 square kilometres in district Chiniot, Punjab; however, the exact extent and dimensions of the Exploration Area would depend upon the spread of the anomalies detected through geophysical surveys and interpretation thereof. Adequate infrastructure facilities/connectivity is available including roads, rail, motorway, electricity, gas and water. Skilled / semi-skilled manpower and labour is abundantly available in the adjoining areas.

(ii).

(iii).

3.7 Location/Logistic Information of the Project Area (i).

(ii). (iii).

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(iv).

Tertiary health care facilities, international airport, five star hotel, golf course, gymnasiums and sports clubs are available within a distance of 20 kilometres from the Project site. Industrial and personal insurance services and corporate / investment banking facilities are readily available. Multinational Japanese and French firms / EPC Contractor(s) have been operating near the area on Water Utility and other projects.

(v). (vi).

3.8 Selection and Engagement of Contractor(s) to undertake the Project PMC / Client through national / international advertisements, has already prequalified the firms / consortia and has issued the Request for Proposals to these prequalified firms / consortia for submission of their bids to undertake the Project titled "Exploration and Resource Estimation of Iron Ore and Associated Metallic Minerals in Chiniot - Rajoa, Punjab". Applicants are required to peruse and thoroughly familiarize themselves with the Request for Proposals issued to them by PMC through email, upon submission of request by the interested Applicants to obtain the RFP, in respect of the Project. 3.9 Selection and Engagement of Applicant for Resident Supervision of the Project In the backdrop of above, the Client desires to engage an Applicant, possessing sufficient capabilities and relevant experience, through competitive Bidding Process to act as Consultant for the Resident Supervision of the Project Contractor(s). The successful Applicant (Resident Consultant) shall be responsible for the supervision of the entire work/activities to be performed by the Contractor(s) executing the Project. The Scope of Work of the Resident Consultant is defined in Section B: Terms of Reference, of this PQD. Applicants, as part of submission of this PQD, are encouraged to propose any revisions / amendments in the Scope of Work of the Resident Consultant to make this function of Resident Supervision more effective and fruitful for the Project.

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SECTION - B: TERMS OF REFERENCE

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1. REQUIRED SCOPE OF WORK


The Applicant/Resident Consultant is to play an effective, positive and constructive role in discharging its functions, thereby facilitating the smooth implementation and operation of the Project. Broadly, the role of the Resident Consultant is but not limited to the following: (i). Review and understand: a) Available previous reports / data, provided by the Client, including geological, geophysical, drilling, chemical / mineralogical analyses regarding Iron Ore and associated metallic minerals in Chiniot and Rajoa areas, carried out in the past by various national / international organizations; b) Any other reports, images / data that can be accessed, at its own, if so required; c) Prequalification Document (PQD) / Request for Qualification (RFQ), Expression of Interests (EOIs) of the Contractor; d) Request for Proposal (RFP) of the Project; e) Technical and Financial Proposals of the Contractor; and f) Project Agreement. (ii). Independently supervise, monitor and verify that all the Project activities are being undertaken by the Contractor(s) as per International Standards in accordance with Annexure 5 of Section - F of this PQD and in compliance with provisions of the Project Agreement {between the Client and the Contractor(s)} inter-alia: a) Inception Report b) Certificates of Mobilization to be provided at both stages of mobilization c) Periodic Progress Reports d) Report on Completion of Geophysical Surveys e) Drilling Plan based on interpreted data of geophysical surveys and past studies, reports & surveys conducted by various national & international organizations. f) Boreholes Completion Report g) Samples Analyses Reports h) 3-D ore body models and ISOPACHs i) Ore Resources Report (iii). Report to the C l i e n t o n t he vario us physi cal, technical and financial aspects of the Project based on supervision, monitoring and verification of all the activities on the prescribed inspection formats duly approved by the Client; Assist the Parties in arriving at an amicable settlement of disputes, should the need arise; Provide to the Client Completion Certificates of Project Deliverables submitted
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(iv). (v).

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by the Contractor(s), on the formats duly approved by the Client, for processing of payments by the Client; (vi). Review, verify and maintain daily, weekly, fortnightly and monthly progress reports to be submitted by the Contractor(s) throughout the course of the Project execution, on pre-agreed formats; Pursue hand back of requirements in accordance with the Project Agreement to be signed between the Contractor(s) and the Client. Ensure that the Project activities are being executed according to the approved plans/schedules and as per International Standards; and that best exploration and resource estimation practices are being followed by the Contractor(s) and point out any deviations to the Client, if any; Ensure that health, safety and environment standards are being observed by the Contractor(s) during the course of conducting all the exploration activities; Inform Client of potential hazards/problems that may arise in connection with conducting surveys, drilling operations or any other Project activity and submit recommendations including suggestions and remedial measures; and Facilitate inspections of the Project by Clients Project staff and ensure that all relevant information and up to date progress reports are available. Participate in the Project review meetings held from time to time by the Parties and also participate in emergency or extraordinary meetings of the Parties held to deal with any Force Majeure Event or other exigencies and record minutes of these meetings. Maintain record of the activities undertaken by it in discharge of its functions and responsibilities. This would include records in respect of the following: a) Manpower deployed and other organizational arrangements of the Resident Consultant; b) Reviews of documents/Project Deliverables submitted to it by the Contractor(s) or Client to meet provisions of Terms of Reference of the Project; c) Inspections undertaken and notices/instructions issued to the Client or the Contractor(s); d) Review of Contractor(s) performance activities compliant with International Standards, Good Exploration Practices and other terms of the Project Agreement executed between the Client and the Contractor(s); e) Payment claims and verification of invoices; f) Variation in Terms of Reference; g) Emergency (including accidents); h) Force Majeure Events; i) Contractor(s) breaches and deviations; j) Feedback and transmission of site requirements;

(vii). (viii).

(ix). (x).

(xi).

Meetings, Records and Reporting (i).

(ii).

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k) Meetings held with Client and Contractor(s) management and concerned staff for quality assurance and quality control. l) Periodic performance compliance reports procedures (SOPs) produced for various tasks. (iii). of standard operating

Carry out any other work which is necessary and relevant in discharge of its obligations under the Agreement for Resident Supervision of Project to be signed with it or which is otherwise relevant for effective Resident Supervision as well as smooth operation of the Project.

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SECTION - C: INSTRUCTIONS TO APPLICANTS

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1.

INSTRUCTION TO APPLICANTS
The EOI and any related information will be written in English language for the ease of comprehension and comparability. Additionally, any original or preprinted information (e.g. brochures) furnished by the Applicant may be written in native language, provided that it is accompanied by a certified translation of its pertinent passages in English.

1.1. Language of EOI

1.2. Costs The Applicant shall bear all costs and expenses associated with the preparation and submission of its EOI, including, without limitation, all costs and expenses related to Applicant's preparation of responses to questions or requests for clarification issued by the Client. 1.3. Evaluation Requirements If the Applicant is a Consortium, it shall clearly indicate, in its EOI, which Consortium member(s) are to be evaluated for each such criteria. In case, it does not specify the same, the Lead Member of the Applicant will be considered for evaluation. 1.4. Applicant Lead Members An Applicant may be a single entity or may take the form of a Consortium comprising of companies, firms, corporate bodies or other legal entities. Each Consortium Applicant shall appoint and authorize one (1) lead member ("Lead Member"), through submission of duly executed Power of Attorney in the form set forth in Annexure 2 of Section - F of this PQD, to represent and irrevocably bind all members of the Applicant in all matters connected with the Prequalification Process, including but not limited to the submission of the EOI on behalf of the Applicant. 1.5. Consortium Participation Restrictions In case an Applicant has also submitted its Bid and it is selected for rolling out the Project as Contractor(s), its EOI or Bid as the case may be, shall be turned down for selection as Resident Consultant by the Client No Applicant may prequalify if it owns more than five per cent (5%) of the shares (directly or indirectly, in terms of voting rights and/or rights to dividends) of another Applicant. No Applicant may prequalify if it has any representative on the Board of Directors of another Applicant. No Firm or Applicant member may prequalify if any of the Clients advisors or external consultants holds any shares or has any representatives in the Board of Directors of the Applicant. Notwithstanding the foregoing, an Applicant may prequalify if it can present evidence reasonably satisfactory to the Client that arrangements have been established such that any such cross shareholdings do not materially affect the independent decisions of the Applicant in which such cross shareholding exists.

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1.6. Ineligibility of an Applicant If an Applicant has been barred by any Central, State or local government or government instrumentality in Pakistan or in any other jurisdiction to which the Applicant belongs or in which the Applicant conducts its business, from participating in any project, and the bar subsists as on the EOI Submission Deadline, such entity shall not be eligible to submit an EOI, either individually or as a member of an Applicant Consortium. 1.7. Prequalification Criteria Each Applicant's general and particular experience, personnel and financial position, as demonstrated by the Applicant's responses in the prescribed forms will be evaluated as per prequalification criteria given in this PQD. The Client reserves the right to waive minor deviations, if these do not materially affect the capability of an Applicant to perform the contract. Sub-Contractor(s) experience and resources shall not be taken into account for determining the Applicants compliance with the prequalification criteria. 1.8. Partnering between Prequalified Applicants Any prequalified Applicant shall be precluded from partnering (directly or indirectly) with another prequalified Applicant without the express written approval of the Client, who shall be free to accept or refuse at its discretion, and in all cases taking into account the likely effects of the proposed partnering on the competitiveness of the Bidding Process. If the Applicant is a Consortium, the above procedure shall apply to all members of the Applicant. 1.9. Partnering between Prequalified Applicant and Non-Prequalified Applicant Non-prequalified Applicant shall not be entitled to partner with a prequalified Applicant.

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SECTION - D: SUBMISSION AND EVALUATION OF EOIs

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1.

SUBMISSION OF EOI

1.1. Format and Signing of the EOI The EOI shall be submitted in triplicate (one original and two copies) and placed in a sealed envelope clearly marked EOI Resident Supervision of the Project Exploration and Resource Estimation of Iron Ore and Associated Metallic Minerals in Chiniot - Rajoa, Punjab. The EOI shall be signed by a duly authorized representative of the Applicant. The EOIs shall include a Power of Attorney (Annexure - 1 of Section - F of this PQD) authorizing such representative to sign and submit the EOIs to PMC on behalf of the Applicant. Authorized representative of Applicants shall make initials on each page of EOI. The Applicant may modify, substitute or withdraw its EOI after submission, provided that written notice of the modification, substitution or withdrawal is received by PMC prior to the EOI Submission Date. No EOI shall be modified, substituted or withdrawn by the Applicant on or after the EOI Submission Date. The modification, substitution or withdrawal notice shall be prepared, sealed, marked, and delivered with the envelopes being additionally marked MODIFICATION, SUBSTITUTION or WITHDRAWAL, as appropriate. Any alteration/ modification in the EOI or additional information supplied subsequent to the EOI Submission Date shall be disregarded. 1.2. Sealing and Marking of EOI The Applicant shall seal the original EOI and each copy in separate envelopes and shall mark the envelopes as "Original" and "Copies" (all duly marked as required herein). The envelopes shall be sealed in an outer envelope. The inner and outer envelopes shall be addressed to the Client (PMC) at the following address: The Chief Executive Officer, Punjab Mineral Company (Pvt.) Limited 36-E Rehman Arcade, Court Street, Near Civil Secretariat, Lahore, Punjab, Pakistan. Ph: +92 42 9921 3892, +92 42 9921 2821, Fax: +92 42 9921 2822 The inner and outer envelopes shall each bear the words: EOI - RESIDENT SUPERVISION OF THE PROJECT: EXPLORATION AND RESOURCE ESTIMATION (ERE) OF IRON ORE AND ASSOCIATED METALLIC MINERALS IN CHINIOT RAJOA, PUNJAB, PAKISTAN" The outer envelope shall indicate the name and address of the Applicant to enable the relevant EOI to be returned unopened in the event that it is declared "late". If the outer envelope is not sealed and marked as required, the Client will assume no responsibility for any misplacement or premature opening of the EOI.

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1.3. Deadline for Submission of EOIs EOIs shall be submitted to the Client at the address specified above no later than 14:00 hrs PAKISTAN TIME, February 7, 2014 (the "EOI Submission Date"). Any EOI submitted after the EOI Submission Date shall be rejected and shall be returned unopened to the Applicant. PMC may, at its discretion, extend the EOI Submission Date by amending the PQD, and in such case, all rights and obligations of PMC and the Applicants subject to the previous deadline shall thereafter be subject to the deadline as extended. 1.4. Addendum At any time prior to the EOI Submission Date of EOIs, the Client may amend the PQD by issuing addenda. Any addendum issued shall be part of the PQD and shall be communicated through e mail or other suitable means as decided by PMC to all who have requested to obtain the PQD in pursuance to the Advertisement inviting EOIs.

2.

EVALUATION OF EOI

2.1. Preliminary Examination of EOIs The Client will carry out a preliminary examination of each EOI to determine whether it is complete, whether the documents have been properly signed, and whether it is generally in order. Where the Client deems it convenient or necessary, it may request supplementary information or documentation from an Applicant for determining its eligibility for prequalification. Whenever such request is made, the Applicant shall provide the same to the Client by such date as may be specified by the Client. Any EOI found to be non-responsive may be rejected by the Client and not included for further consideration. 2.2. Evaluation of EOIs The Client will carry out a detailed evaluation of the EOIs that have not been rejected after the preliminary examination. Subsequently, the Client will examine the information provided by the Applicant in the EOI for its prequalification to be done in accordance with Prequalification Criteria specified in the following pages. Applicant whose EOI is determined by the Client to be substantively responsive thereby meeting the prequalification criteria specified shall be invited to participate in the next stages of the Bidding Process. Applicant whose EOI is determined by the Client to be substantively nonresponsive thereby not meeting the Prequalification Criteria specified shall be disqualified from participating in the Bidding Process. Verification of the information provided by the Applicant in the EOI submitted for prequalification may be made in such manner as the Client may decide.
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2.3. Test of Responsiveness Prior to detailed evaluation of EOIs, PMC shall determine whether each EOI is responsive to the requirements of this PQD. An EOI shall be considered responsive only if: (i). (ii). (iii). (iv). (v). (vi). (vii). (viii). It is duly signed and each page is initialed on behalf of the Applicant by the duly authorized representative; It is prepared and received as per the formats and Annexure given in Section E and Section F of this PQD; It is received by the EOI Submission Date including any extension thereof, if any; It is sealed and bound together in hard cover and marked as stipulated in the above clauses; It is accompanied by the latest three years Audited Financial Statements in accordance with Form 1 of Section - E of this PQD; It is accompanied by the Power(s) of Attorney in accordance with Annexure 1 and Annexure - 2 of Section - F of this PQD; It is accompanied by the Affidavit in accordance with Annexure 3 of Section - F of this PQD; and It does not contain any condition i.e. it is unconditional.

PMC reserves the right to reject any EOI which is non-responsive and no request for alteration, modification, substitution or withdrawal shall be entertained in respect thereof. 2.4. Invitation for Request for Proposal (RFP) At the end of evaluation activity, the Client will issue RFP to the prequalified Applicants for participating in the next stages of the Bidding Process. Moreover, if the prequalified Applicant is a Consortium, it shall not change the structure of the Consortium for participating in the Bidding Process without the prior written consent of the Client.

3.

PREQUALIFICATION CRITERIA
The maximum marks are 100 with the following weightage distribution. (i). (ii). Weightage for technical criteria is 80% Weightage for financial criteria is 20%

Minimum 50% marks for each section/segment of technical and financial criteria are required for prequalification. Cumulative/Aggregate (technical + financial) prequalifying marks after assigning above mentioned weightages will be 65%. Final Score for prequalification shall be calculated as follows:
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Prequalification Score Marks obtained in Technical Criteria x (0.80) A Marks obtained in Financial Criteria x (0.20) B Total Score (A+B) This score should be exceeding 65 for an Applicant to prequalify.

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3.1. Technical Criteria The following technical criteria shall be used to prequalify the Applicants: A. B. C. Applicant's Profile and Strengths Relevant Experience Profile of Proposed Team

Prequalification of Applicants will be done on the basis of score obtained out of 100 according to the following table: Evaluation Areas Maximum Score 35 35 30 100 Obtained Score

A. Applicant's Profile and Strengths B. Relevant Experience C. Profile of Proposed Team Total

Minimum qualifying score in each sub section will be 50% for the Applicant to prequalify in technical criteria.

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A.

Applicant's Strengths

Profile

and

Total Marks = 35 Max. Score Obtained Score

Criteria Overall Experience in Resident Supervision or Execution of Exploration and Resource Estimation of: a.

Range

Surface Metallic and/or One mark be Subsurface Metallic / Non- will awarded for Metallic Mineral Projects one year of experience with a capping of 10 marks

10

05 additional marks to be awarded for minimum two years of experience in Subsurface Note: Each Applicant shall clearly Metallic demonstrate its experience along with Mineral suitable evidence thereof to facilitate Projects evaluation under this section. Local presence International presence Local and international presence

b.

Subsurface Metallic Mineral Projects

05

05 05 10

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B.

Relevant Experience

Total Marks = 35 Max. Score 25 Obtained Score

Criteria Five Surface Metallic and / or Subsurface Metallic / Non-Metallic Mineral Projects completed and / or in progress. For each project the Firm/Consortium will specify each of the following activities undertaken. Accordingly, following marking scheme will be observed for marking each project mentioned: Activity (a) Geophysical Survey (b) Drilling (c) Sampling Analysis (d) 3D Modeling Marks 01 02 01 01

Range Each project will carry five marks

Two Subsurface Metallic Mineral Projects completed and / or in progress. For each project the Firm/Consortium will specify each of the following activities undertaken. Accordingly, following marking scheme will be observed for marking each project mentioned: Activity (e) Geophysical Survey (f) Drilling (g) Sampling Analysis (h) 3D Modeling Marks 01 02 01 01

Each project will carry five marks

10

PUNJAB MINERAL COMPANY (Pvt.) LIMITED

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Note 1: Each Applicant shall fill Form -1 to express its experience. Note 2: Each Applicant shall clearly demonstrate its experience of undertaking the project in the form of a completion / ongoing work certificate from the client to which services were rendered or being rendered in case of ongoing projects.

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C.

Profile of Proposed Team

Total Marks = 30 Max. Score 06 Obtained Score

Criteria Nomination of Dedicated Team Leader, through submission of detailed resume, holding minimum Masters degree in Geological disciplines and having at least: (i) fifteen years experience of exploration and resource estimation and/or resident supervision of Surface Metallic and/or Subsurface Metallic / Non-Metallic Mineral Projects; and/or (ii) fifteen years experience of exploration and resource estimation and/or resident supervision of Subsurface Metallic Mineral Projects

Range

Each of the projects mentioned will carry three marks Four additional marks will be awarded such that each of the projects mentioned will carry two marks Each project will carry five marks 04

Project Team Members holding minimum Masters or equivalent degree in geological disciplines and having at least six years of experience and expertise of geophysical surveys, drilling, sampling analysis and/or 3-D modeling of Surface Metallic and/or Subsurface Metallic / NonMetallic Mineral Projects as Geologists, Geophysicists etc. Project Team Members holding minimum Masters or equivalent degree in geological disciplines and having at least six years of experience and expertise of geophysical surveys, drilling, sampling analysis and/or 3-D modeling of Subsurface Metallic Mineral Projects as Geologists, Geophysicists Note: Each Team member shall fill Form 2 to demonstrate its experience.
PUNJAB MINERAL COMPANY (Pvt.) LIMITED

15

Each project will carry two and half marks

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3.2. Financial Criteria The following financial criteria shall be used to prequalify the Applicants: Prequalification of Applicants will be done on the basis of score obtained out of 100 according to the following table: Evaluation Areas Applicant's Financial Strength: A. Average Net Worth B. Average Gross Revenue/Sales/Turnover Total Annual 50 50 100 Maximum Score Obtained Score

Minimum qualifying score in each sub section will be 50% for the Applicant to prequalify in financial criteria.

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Applicant's Financial Strength

Total Marks = 100 Max. Score Obtained Score

Criteria A. Average Net Worth

Range

Total Marks = 50 Up to PKR 0.01 Billion Exceeding PKR 0.01 Billion 30 50

Average Net Worth

B. Average Gross Annual Revenue/Sales/Turnover

Total Marks = 50 PKR 0.10 Billion 0.15 Billion Exceeding PKR 0.15 Billion 30

Average Gross Annual Revenue

50

Note: Each Applicant shall fill Form - 3 to express its Financial Strength.

PUNJAB MINERAL COMPANY (Pvt.) LIMITED

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SECTION - E: FORMATS

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FORM 1: RELEVANT EXPERIENCE


Applicants shall provide the details of projects completed or in progress using the below Form: SECTION I - Details of Surface Metallic and/or Subsurface Metallic / NonMetallic Mineral Projects 1. Name of Project: Country of Execution: Activities undertaken: (a) (b) (c) (d) 2. 3. 4. Geophysical Survey Drilling Sampling Analysis 3D Modeling

Name and Contact Details of Procuring Agency: Nature and scope of work executed: Value of Services Provided in PKR for each component: (a) (b) (c) (d) Geophysical Survey Drilling Sampling Analysis 3D Modeling

5. 6.

Date of Award: Date of Completion:

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SECTION II - Details of Subsurface Metallic Mineral Projects 1. Name of Project: Country of Execution: Activities undertaken: (a) (b) (c) (d) 2. 3. 4. Geophysical Survey Drilling Sampling Analysis 3D Modeling

Name and Contact Details of Procuring Agency: Nature and scope of work executed: Value of Services Provided in PKR for each component: (a) (b) (c) (d) Geophysical Survey Drilling Sampling Analysis 3D Modeling

5. 6.

Date of Award: Date of Completion:

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FORM 2: RELEVANT PROJECT PERSONNEL


Title of Position: Personnel Information Present Employment Name Professional qualifications Name of employer Address of employer Telephone Fax Job title / Position Contact (manager / personnel officer) E-mail Years with present employer Date of birth

Please summarize professional experience in reverse chronological order. Indicate particular technical and managerial experience relevant to the proposed Project. Serial # Project Name From To Particulars

Company Name: Position Held: Work Done on the project:

Company Name: Position Held: Work Done on the project:

Note: The Applicant shall not change the proposed team for the project while submitting its Technical Proposal except with prior written approval of the Client.

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FORM 3: FINANCIAL STATUS


a. Summarize the required financial data in the form below, based on audited financial statements for the latest three (3) financial years. b. For Conversion of Net Worth, Gross Annual Revenue/Turnover/Sale of the Applicant into PKR (Pakistan Rupees), the Exchange Rate prevailing as on January 31, 2014 in accordance with the data published by the State of Bank of Pakistan will be used. Particulars 1. Net Worth 2. Gross Annual Revenue Note: The Applicant shall fill this table based on the audited financial statements, which statements shall be submitted by the Applicants with their EOIs duly translated in English language from a certified translator. Latest Year 1 Year 2 Year 3

PUNJAB MINERAL COMPANY (Pvt.) LIMITED

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FORM 4: LITIGATION HISTORY


Applicants, including each of the members of an Applicant Consortium, shall provide information on any history of litigation or arbitration resulting from contracts executed in the last five years or currently under execution. A separate sheet should be used for each Consortium member. A consistent history (50% or more) of award against the Applicant or any member of a Consortium may result in rejection of the application. A. Year Decided Litigation: Award For or Against Applicant Name of client, cause of litigation, and matter in dispute Disputed amount (Current value Pak Rs. or equivalent)

B. Year

Pending Litigation: Matter in Dispute Value of Pending Claim in US$ Equivalent Value of Pending Claim as a Percentage of Net Worth

PUNJAB MINERAL COMPANY (Pvt.) LIMITED

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SECTION - F: ANNEXURE

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ANNEXURE 1 POWER OF ATTORNEY FROM APPLICANT IN FAVOUR OF ITS AUTHORIZED SIGNATORY Date: Power of Attorney Know all men by these presents, We___________________ name and address of the registered office) do hereby constitute, appoint and authorize Mr./ Ms. ___________________ name and residential address) who is presently employed with us and holding the position of ___________________ as our attorney, to do in our name and on our behalf, all such acts, deeds and things necessary in connection with or incidental to our EOI for "Prequalification of Applicant for the Resident Supervision of The Project Exploration and Resource Estimation of Iron Ore and Associated Metallic Minerals in Chiniot Rajoa, Punjab, Pakistan, including signing and submission of all documents and providing information / responses to the Punjab Mineral Company (Pvt.) Limited (PMC), representing us in all matters before PMC, and generally dealing with PMC in all matters in connection with our EOI for the said Resident Supervision Project. We hereby agree to ratify all acts, deeds and things lawfully done by our said attorney pursuant to this Power of Attorney and that all acts, deeds and things done by our aforesaid attorney shall and shall always be deemed to have been done by us. Signature of Authorized Attorney Name and Title of Attorney: Name of Firm: Address: _____________________________ _____________________________ _____________________________ _____________________________

Note: To be executed by all the members in case of a Consortium. The mode of execution of the Power of Attorney should be in accordance with the procedure, if any, laid down by the applicable law and the charter documents of the executant(s) and when it is so required the same should be under common seal affixed in accordance with the required procedure.

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ANNEXURE 2 POWER OF ATTORNEY BY APPLICANT MEMBERS IN FAVOUR OF LEAD APPLICANT MEMBER Power of Attorney Whereas, the Punjab Mineral Company (Pvt.) Limited (PMC) has invited EOIs from interested parties for the "Prequalification of Applicant for the Resident Supervision of The Project Exploration And Resource Estimation of Iron Ore and Associated Metallic Minerals in Chiniot Rajoa, Punjab, Pakistan. Whereas, the undersigned members of the Applicant are interested in prequalification for the abovementioned Resident Supervision of the Project in accordance with the terms and conditions of the Prequalification Document (PQD). Whereas, it is necessary under the PQD for the members of the Applicant to designate one of them as the Lead Member with all necessary power and authority to do for and on behalf of the Applicant and its members, all acts, deeds and things as may be necessary in connection with the Applicants EOI for the Project. NOW THIS POWER OF ATTORNEY WITNESSETH THAT; We, M/s. __________________ M/s ________________ and M/s ________________ (the respective names and addresses of the registered office) do hereby designate M/s ________________ being one of the members of the Applicant, as the Lead Member of the Applicant, to do on behalf of the Applicant and all its members, all or any of the acts, deeds or things necessary or incidental to the Applicants EOI for the Project, including submission of EOI, responding to queries, submission of information / documents and generally to represent the Applicant in all its dealings with PMC, any other Government Agency or any person, in connection with the Resident Supervision Project until culmination of the process of prequalification. We hereby agree to ratify all acts, deeds and things lawfully done by the Lead Member pursuant to this Power of Attorney and that all acts deeds and things done by our aforesaid attorney shall and shall always be deemed to have been done by us/Applicant. Dated this the _______Day of ________201___ (Executants) Signature of Authorized Attorney Name and Title of Attorney: Name of Firm: Address: _____________________________ _____________________________ _____________________________ _____________________________

(To be executed by all the members of the Applicant) Note: The mode of execution of the Power of Attorney should be in accordance with the procedure, if any, lay down by the applicable law and the charter documents of the executant(s) and when it is so required the same should be under common seal affixed in accordance with the required procedure.

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ANNEXURE 3 AFFIDAVIT Date: The Chief Executive Officer Punjab Mineral Company (PMC) 36-E, Rehman Arcade, Court Street, Lower Mall, Near Civil Secretariat, Lahore, Pakistan We, [insert name of Applicant] hereby represent and warrant that, as of the date of this letter [Name of Applicant / Lead Member of Applicant], and each member of Applicant (if applicable): a. b. c. is not in bankruptcy or liquidation proceedings; has not been convicted of, fraud, corruption, collusion or money laundering; and is not aware of any conflict of interest or potential conflict of interest arising from prior or existing contracts or relationships which could materially affect its capability to comply with the obligations in respect of the subject Project for which prequalification is being done.

We further represent and warrant that all information and documentation submitted as part of our Expression of Interest is true and accurate. We have also attached a clearance certificate duly attested by the chamber of commerce / registration authority evidencing registration. Yours sincerely,

Signature of Authorized Signatory Name and Title of Signatory: Name of Firm: Address:

_____________________________ _____________________________ _____________________________ _____________________________

PUNJAB MINERAL COMPANY (Pvt.) LIMITED

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Prequalification Document for the Resident Supervision

ANNEXURE 4 LIST OF EXISTING STUDIES AND DATA

SR. NO. 01.

SUBJECT Discovery of Iron Ore Deposits in the Buried Precambrian Shield Rocks of Punjab Plains, Chiniot Area, Punjab, Pakistan by Geological Survey of Pakistan (1990). Integrated Geophysical Investigations for Iron Ore in Chiniot Area, Punjab Pakistan by Geological Survey of Pakistan (1993). Iron Mineralization Associated With The Precambrian Shield Rocks In The Chiniot Area, Punjab, Pakistan by Geological Survey of Pakistan (1997). Brief of Prospective Project on Chiniot & Rajoa Iron Ore Deposits Of District Chiniot, Punjab, Pakistan (December 2000). Report Regarding Pre-Feasibility Study Chiniot Iron Ore Deposits, Jhang1 District Punjab Province Pakistan (Volume-I) Executive Summary by RDC International (Pvt.) Ltd. Lahore (December 2000). Report Regarding Pre-Feasibility Study Chiniot Iron Ore Deposits Jhang District Punjab Province Pakistan. (Volume-II). Geological Studies & Iron Ore Resource Evaluation by RDC International (Pvt.) Ltd. Lahore (December 2000). Report Regarding Pre-Feasibility Study Chiniot Iron Ore Deposits Jhang District Punjab Province Pakistan. (Volume-II) Geological Studies & Iron Ore Resource Evaluation Appendix-I Drill Holes Log by RDC International (Pvt.) Ltd. Lahore. (December 2000). Report Regarding Pre-Feasibility Study Chiniot Iron Ore Deposits Jhang District Punjab Province Pakistan. (Volume-II). Geological Studies & Iron Ore Resource Evaluation Appendix-II Mineralogical and Chemical Studies by RDC International (Pvt.) Ltd. Lahore (December 2000). Report Regarding Pre-Feasibility Study Chiniot Iron Ore Deposits Jhang District Punjab Province, Pakistan (Volume-II) Geological Studies & Iron Ore Resource Evaluation Appendix-III Computation of Iron Ore Grades and Reserves by RDC International (Pvt.) Ltd. Lahore (December 2000). Report Regarding Pre-Feasibility Study Chiniot Iron Ore Deposits Jhang District Punjab Province Pakistan. (Volume-III). Preliminary Beneficiation & Mining Studies by RDC International (Pvt.) Ltd. Lahore. (December 2000).

02. 03. 04. 05.

06.

07.

08.

09.

10.

Now Chiniot District. Page 45 of 53

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Prequalification Document for the Resident Supervision

11.

Report Regarding Pre-Feasibility Study Chiniot Iron Ore Deposits Jhang District Punjab Province Pakistan. (Volume-IV). Geophysical Survey In Chiniot-Rajoa Area by RDC International (Pvt.) Ltd. Lahore. (December 2000). Geophysical Survey Report, Rajoa Iron Ore Project by Diviners & Bitman International Ltd. (April 2007). Location Map of Drill Holes Along with List of Grid Reference and Coordinates Of Boreholes Drilled by PUNJMIN In Rajoa And Chiniot Area.. OTHER RELATED STUDIES

12. 13.

Sr. No. 01

SUBJECT Hydrogeologic Investigations of the Area Between Jhang Branch Canal And Chenab River Near Chiniot by L.A Khan, Hydrogeology Directorate WAPDA, Lahore (August 1982) A Study on Geo-Resistivity Survey And Exploratory Drilling At Well Field Between Chenab River And Jhang Canal by Nihon Suido Consultants Co. Ltd., Tokyo, Japan. (September 1982) Ground Water Sources of Faisalabad / Faisalabad Environmental Infrastructure Master Plan Study by Inter-consult AS Consulting Services Kjorboveien 25, N1300 Sandvika Norway (1992)

02

03

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ANNEXURE 5 1. REQUIRED SCOPE OF WORK OF THE CONTRACTOR(S) APPOINTED FOR EXECUTION OF THE PROJECT TO BE

The Scope of Work of the Project includes but is not limited to the extent summarized below: 1.1 Data, Reports and Literature Review (i). Careful study of the Existing Studies and Data and available previous reports / data, provided by the Client, for review and evaluation including but not limited to the available geological, geophysical, drilling, chemical / mineralogical analyses regarding Iron Ore and associated metallic minerals in Chiniot and Rajoa areas, carried out in the past by various national / international organizations. Firm / Consortium may collect and study any other reports, images / data, at its own, if so required. Compile an Inception Report on the outcome of the reviewed studies / data for submission to the Client. Firm / Consortium will plan, guide, supervise and conduct the execution of the entire work as per the detailed Scope of Work, to achieve the objectives of the Project while assuring quality standards. Conduct geophysical surveys to delineate the anomalous zones, map the basement topography of subsurface rocks / ore bodies and formulate comprehensive drilling plan. Geophysical surveys should include but not be limited to the following: a. Electrical Resistivity (Dipole-Dipole) & Induced Polarization surveys, b. Magnetic Survey c. Gravity Survey d. Seismic Survey (reflecting and refracting) (ii). The Firm / Consortium would be encouraged to adopt latest cost effective survey types / techniques and software without compromising the efficacy of the stated objective. The surveys mentioned above are indicative. The work plan and methodology to be submitted by the Bidder would define the genuinely required surveys (including types, quantum, scale etc, as deemed suitable) without compromising the value for money criteria. Drill the detected Iron Ore and metallic detected anomalous zones vertically as well as inclined (where deemed necessary) upto the lower contact of the ore bodies or as advised by the Client. In case of failure to complete the identified borehole upto the lower contact of the ore bodies or as advised by the Client as the case may be, the Firm/Consortium will drill a new borehole at its own cost. In such case, the Firm/Consortium will not be entitled for any payment in respect of work done on the incomplete borehole.
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(ii). (iii).

1.2 Geophysical Surveys (i).

1.3 Drilling and Sample Analysis (iii).

(iv).

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Prequalification Document for the Resident Supervision

(v). (vi). (vii). (viii).

Collect and preserve the core in core boxes, prepare lithological logs, split the core for sampling and analyses. Undertake geophysical logging (density logs) using digital logger and down-hole surveys of drilled boreholes. Hand over the requisite quantity of core samples to the Client for utilization (at its discretion). Safe transportation of core samples (other than handed over to the Client) to the lab(s) of International Standard (to be identified upfront) for analyses and reports. The sequence of actions/activities in drilling and sample analyses is not restricted as stated above and the Bidder is fully encouraged to introduce latest approaches/techniques in order to achieve cost efficiency without any compromise on the output/outcome of the drilling and sample analyses, thus leading to achievement of Project objectives. Use and process geophysical surveys, drilling, logging and assay data, delineate and develop an accurate computer aided contour map, bed rock topography, 3-D ore body modeling and development of ISOPACHs through appropriate software. Estimate tonnage and grades of ore bodies by application of leading International Standards / methods, e.g., latest geo-statistical techniques. Submit draft and final Resource Estimation Report/Ore Resources Report of Iron Ore and associated metallic minerals on leading International Standards. The report must include recommendations and way forward for the Client (PMC) for adopting further course of action as encapsulated in the Project objective.

(ix).

1.4 Data Processing, 3-D Modeling and Estimation of Resources (i).

(ii).

1.5 Submission of Report (i).

2.

TERMS AND CONDITIONS TO EXECUTE THE DRILLING WORK


The Firm / Consortium shall recover at least 90% core in the Iron Ore bodies and metallic sulphide zone(s). Any occurrence of less recovery, for reasons beyond the control of the Firm / Consortium, must immediately be notified to the Client, giving possible reasons and suggesting remedial measures for Clients consideration. In no case shall the diameter of the recovered core be less than standard NQ Size at the deepest / lowest point of all drilled holes.

2.1 Core Recovery

2.2 Preservation of core The Firm / Consortium will preserve the entire core in good quality core boxes, tag sampled portions, marking the borehole number and depth etc. on the core boxes, indicating the depth in meters at the end of each core run along with colored digital photographs of the same. All cores will be the property of the Client and all unused core and remaining portions of the laboratory tested samples will be delivered to the Client at its desired destination by the Firm / Consortium.
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2.3 Sample Preparation and Analysis The Firm / Consortium will adopt internationally acceptable sampling and sample preparation methods, which best suit such Iron Ore and metallic minerals, keeping in view the requirements for mineralogical, petrography, metallurgical and physical / analytical tests. Adequate number of samples would be taken, keeping in view the lithological changes and inter-distance of samples in each borehole. The Firm / Consortium will also furnish an appropriate quantity of the representative samples to the Client as reference samples. The samples will be duly numbered, transported / handed over by the Firm / Consortium to renowned national / international accredited laboratory(ies) acceptable to the Client. The methods of analyses must be appropriate for the samples and standard assay quality control measures will be taken as approved by the Client in liaison with Resident Consultant. 2.4 Control Samples As part of assay quality control procedure, the Client may introduce resort to counter checking of samples, of known assay value, for analyses in the laboratory along with the batches of samples being sent by the Firm / Consortium. 2.5 Abandoning of boreholes No borehole will be abandoned unless certified in writing by the Client through the Client's Representative at the Clients Site Office. 2.6 Lithological Logs The Firm / Consortium will prepare and provide the lithological logs in hard as well as electronic form, in the formats as per acceptable International Standards, in good order to the Client on completion of each borehole. X, Y, Z coordinates of each borehole for calculation of mineable intersections for Iron Ore bodies / metallic minerals and any other relevant observations encountered during drilling will be given on the lithological logs. Depth to water table in each borehole will be recorded and marked on the lithological logs. 2.7 Geophysical logs The Firm / Consortium will prepare and provide the geophysical logs in hard as well as electronic form, in the formats as per acceptable International Standards, to the Client on completion of each borehole. 2.8 Cross Section / Correlation Chart and Interpretation The Firm / Consortium will prepare cross sections and correlation charts of Iron Ore and metallic bodies encountered in the boreholes along with interpretation with the help of lithological / geophysical logs data. Computer-aided 3-D geological models based on generated data together with resource estimates must be presented in accordance with international definitions / standards. 2.9 Down Hole Survey Down hole survey of each completed borehole will be conducted by Firm / Consortium with appropriate equipment, software and other relevant parameters. The Firm / Consortium will arrange and provide all the requisite facilities, office aids etc. to its staff at its own cost and expenditures.
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3.

REQUISITE QUALIFICATION CONSORTIUM

AND

EXPERIENCE

OF

THE

FIRM

The Firm / Consortium shall deploy the same staff along with equipment and machinery etc. as specified in their expressions of interest at the time of pre qualification. In case of an issue, a replacement may be allowed by the Client subject to the condition that the qualification/experience/specification would not the less than the requirement specified in PQD. 4. DELIVERABLES TO BE SUBMITTED BY THE CONTRACTOR(S) The main Project Deliverables to be submitted by the Contractor(s) will be as under: 4.1. Inception Report: A report incorporating the outcome of the Contractor(s)s review of Existing Studies and Data, setting out in detail the geological concept for further Exploration Operations, plan of execution, quality assurance / control program to be implemented through all stages of Project till its completion. This report should also indicate the additional quantum of geological / geophysical investigations, other surveys etc., infill, scout and detailed drilling, requisite core samples analyses types and related geological work required to develop 3D models of the Iron Ore and associated metallic mineral resource(s) and estimation reports compliant with acceptable International Standards. The entire work plan should clearly be elucidated on a standard Gant Chart. 4.2. Certificates of Mobilization Mobilization of human resource, equipment, machinery and accessories will be carried out in the following two stages: (i). Mobilization of pre-qualified Team Leader and geophysical surveys staff along with all necessary geophysical surveys equipments and establishment of Site Office and intimation to the Client; Submission of Completion Certificate (which may also be referred to as Certificate of Mobilization of Stage I) by the Resident Consultant certifying mobilization in respect of stage (i) including logistic supports and establishment of office with all facilities required to start the Project works as required in the Scope of Work (SOW). (ii). Mobilization of pre-qualified exploration and drilling staff along with drilling rigs and accessories etc. Submission of Completion Certificate of Mobilization by the Resident Consultant (which may also be referred to as Certificate of Mobilization of Stage II) certifying mobilization in respect of stage (ii) as required in the Scope of Work. 4.3. Periodic Progress Reports The Contractor(s) will furnish, throughout the course of the Project execution, fortnightly and monthly progress reports of activities, on a pre-agreed format, in accordance with the work plan.

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Prequalification Document for the Resident Supervision

4.4. Completion of Geophysical Surveys On the completion of geophysical surveys, the Contractor(s) will furnish a comprehensive report, in hard and soft form, comprising the surveys data, their analysis and interpretation, maps and recommended drilling plan as per acceptable International Standards. 4.5. Borehole Completion Report On the completion of each borehole, the Contractor(s) will furnish a comprehensive report, in hard and soft forms, comprising the lithological logs, geophysical logs, down hole survey and collection of samples and their dispatch to laboratories for analyses as per acceptable International Standards. 4.6. Sample Analysis Report This report will contain details of the analytical results of the sample. 4.7. 3-D ore body models and ISOPACHs The Contractor(s) will demonstrate 3-D ore body models and ISOPACHs by using data generated through geophysical surveys, drilling, lithological logging, sample analysis, geo physical logging and down hole surveys etc. 4.8. Ore Resources Report A report, compliant with International Standards spelling out the results of Iron Ore and metallic mineral resources estimation in the following manner: (i) Draft Report of Iron Ore and associated metallic mineral Resource Estimation (also referred to as Ore Resources Report) to be submitted for Clients review, comments and acceptance as per its satisfaction. (ii) Final Ore Resources Report to be submitted for Clients review, comments and acceptance as per its satisfaction, in the light of Scope of Work as already elaborated (including Isopachs and tonnage and quality etc). (iii) The final Ore Resources Report estimated at International Standards should lead to development of bankable documentation going forward. The Contractor(s) will provide ten (10) hard and soft sets of each of all the Project Deliverables along with all the electronic data of the 3-D resource models and illustrations / drawings in hard form on a viewable scale and in a presentable manner. Additionally, the Contractor(s) may also need to present such Project Deliverables in review meeting(s) in Lahore, Pakistan, as required by the Client. All Project Deliverables must be certified by the qualified person / competent person of the Contractor(s) under the International Standards. A Project Deliverable will only be considered delivered when a Completion Certificate in respect of the same has been issued by the Resident Consultant. 5. TIMELINES FOR COMPLETION OF DELIVERABLES Contractor(s) would be required to complete all the above specified work / services and deliver the relevant Project Deliverables of the Project within a period of eighteen (18) months from the Commencement Date (as defined in the Project Agreement) as per table 1 given below.

PUNJAB MINERAL COMPANY (Pvt.) LIMITED

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Prequalification Document for the Resident Supervision

6.

PAYMENT The payments will be made by the Client as per table 1 below against delivery of Project Deliverables and verification of invoices by the Resident Consultant in accordance with the terms set forth in the Conditions of Project Agreement. However, each such payment shall be subject to retention amount equal to five percent of the relevant payment, which will be released in accordance with the terms set forth in the Conditions of Project Agreement. Table 1 Sr. No. Project Deliverables (In Days) Timelines (reckoned from the Commencement Date) 30 Payments

1.

Inception Report

15% of the Bid amount in respect of geophysical surveys* 10% of the Bid amount in respect of geophysical surveys* 50% of the Bid amount in respect of geophysical surveys* 25% of the Bid amount in respect of geophysical surveys* After completion of each borehole, amount as per quoted Bid for each borehole depending upon its depth on acceptance
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2.

Certificate of Mobilization of 45 Stage I Team Leader, Geophysical Surveys Staff & equipment along with logistics supports

3.

Geophysical Surveys Report

120

Certificate of Mobilization of 150 Stage II Exploration / drilling staff and rigs along with all accessories 4. Boreholes Report Completion 470

PUNJAB MINERAL COMPANY (Pvt.) LIMITED

Prequalification Document for the Resident Supervision

of the invoice. ** 5. Sample Analysis Report 470 60% of the Bid amount in respect of sampling divided by the number of boreholes 10% of the Bid amount in respect of Sample Analysis 10% of the Bid amount in respect of all the samples and analyses 20% of the Bid Amount in respect of all the samples and analyses

6.

Submission of 3-D ore body 470 models and ISOPACHs

7.

Draft Ore Resources Report

520

8.

Final Ore Resources Report

550

7.

CHANGE IN SCOPE OF WORK A Project Steering Committee comprising the following members may meet as and when required to review / monitor the work done, time lines and may improve or change the Scope of Work subject to the ongoing data interpretation to achieve the objectives. Team Leader or authorized representative of the Contractor(s) and Resident Consultant will also attend the meeting.

PUNJAB MINERAL COMPANY (Pvt.) LIMITED

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