Benga Coal Haulage Agreement - Issues

Clause Issue Remarks

3.4 e If customer is Non delayed party,
rehabilitation costs adjusted with
Haulage Charges
Customer can be a Non Delayed party even
if the Sena line has been rehabilitated but
CF has not completed the port facilities
!"#$ a%
5.3 Committed &olling Stoc' which cannot
be used for any other purpose e(cept
with the prior written agreement of the
Customer
)perator should be able to decide and
allocate rolling stoc' as per total demand,
including other mines#
5.5 b *iability of operator )perator should not be liable for events
beyond its control# +he clause needs to be
strengthened#
5.6 inimum ,olume means -./01 of
Nominated 2nnual +as'
inimum ,olume should have a fi(ed
component so that it does not fall below a
specified level
5.7 &eduction of inimum 3ayment4
itigating losses by diverting
resources
Implies using committed rolling stoc' for
operation
5.11 a'e 5p Coal Clause not clear
7.2 )perator will assume the ris' of coal
under transport whilst in )perator6s
possession#
If the operator has to assume the ris', third
party insurance charges should be included
in the tariff agreement#
8.5 a )perator shall provide bac'haul
services from 7eira port to ine to
customer at rate no more than -./01
of actual incremental cost#
&e8uires dedicated rolling stoc' else should
be subject to availability in the train running
from port to mine
8.5 b )perator may use &olling Stoc' to
provide Coal Haulage to third party
subject to Customer6s consent9
sharing of revenue with customer
)perator should be free to decide and
allocate rolling stoc' to other parties without
being subject to approval from customer
10.1 2ny subsidy or fiscal benefit offered to
the operator should proportionately
reduce haulage charges#
Fiscal benefits and subsidy should not be
coupled with haulage charges#
11.8 b Customer may engage a 8ualified
independent party to audit operator6s
actual costs
)perator should have a nominee in the
audit of its costs#
15.4 )perator to unload the rolling stoc' 2greement with an e(ternal party for
unloading#
24.2 a 2ll insurances which the )perator is
re8uired to be effected with insurers
approved by the customer#
+he operator should be free to select the
insurers#
24.2 f Customer6s consent is re8uired to
cancel an e(isting insurance policy#
+he operator should be free to select the
insurers#
24.2 g Customer may insure at operators
e(pense, if operator does not comply
with insurance obligations#
Insurance of rolling stoc' should be decided
by the operator
27.1 Indemnity of customer against all
claims as a result of loss, damage or
Claims should be addressed by third party
insurer and not the operator#