##### 



Lihir Gold Limited
Contract LGL-MO-0107
Provision of Geothermal Coring Services
Part I: Formal Instrument of Agreement
    
    (LOGO)
 LIHIR GOLD LIMITED
 AND
 WASHINGTONS DRILLING (INTERNATIONAL) LIMITED
NZ Company Number: 1965214
 FORMAL INSTRUMENT OF AGREEMENT
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Lihir Gold Limited
Contract LGL-MO-0107
Provision of Geothermal Coring Services
Part I: Formal Instrument of Agreement
    
    (LOGO)
 THIS AGREEMENT
 BETWEEN:
 LIHIR GOLD LIMITED (Principal
  Contractor
 RECITALS:
 (a)
    
    The Principal requires a geothermal drilling and coring rig to drill and core 5 geothermal
wells on Lihir Island, with the option to require an additional 5 wells to be drilled.(b)
    
    The Contractor is in the business of providing those services and has represented to the
Principal that it has the financial resources, technical competence and management skill
necessary to carry out and complete the work required by the Principal.(c)
    
    The Principal has agreed to engage the Contractor to perform the services referred to in
Recital (a), and the Contractor has agreed to perform those services, on and subject to the
terms of the Contract.
 THE PARTIES AGREE as follows
 1.
    
    The Contractor shall carry out and complete the Works in accordance with the Contract.2.
    
    The parties shall in all respects observe, comply with and carry out all and singular the
terms, conditions and stipulations of the Contract.3.
    
    The documents annexed hereto and set out below shall together with this Agreement constitute
the Contract between the parties and those documents shall be read in conjunction with this
Formal Instrument of Agreement as if they were set forth herein. The expression the
Contract includes any written and signed amendments or variations made from time to time to
this Formal Instrument of Agreement or the documents referred to below. In the event of any
conflict between any of the following referenced documents, they shall take precedence in the
order listed:
 (i)
    
    Part I  This Formal Instrument of Agreement (referenced in the General
Conditions of Contract as the Formal Instrument of Agreement)(ii)
    
    Part II   Special Conditions of Contract (Annexure A and Annexure B)(iii)
    
    Part III  General Conditions of Contract(iv)
    
    Part IV  Specifications(v)
    
    Letter of Intention from the Principal to the Contractor dated on or about
15 May 2007.
 4.
    
    Thirty days before the conclusion of the fifth (5th) geothermal well to be drilled
by the Contractor, the Principal may, in its absolute discretion, direct the Contractor to
carry out additional work under the contract encompassing an additional 1 to 5 geothermal
wells at the Principals direction.
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Lihir Gold Limited
Contract LGL-MO-0107
Provision of Geothermal Coring Services
Part I: Formal Instrument of Agreement
    
    (LOGO)
 Should the Principal exercise its option under this clause, the definition of work under
contract shall be amended accordingly and all references in the balance of the contract
shall be read as though they apply to the additional wells nominated by the Principal. The
Schedule of rates shall continue to apply to the additional wells.For the removal of doubt, the Principal may require the Contractor to carry out
1, 2, 3, 4 or 5 additional wells but makes no representation as to whether it will
require any works beyond the original 5 wells.5.
    
    To the extent of any inconsistency between the documents listed above, the documents shall be
given precedence in the order they appear above.6.
    
    As full consideration for the satisfactory performance by Contractor of this Contract, the
Principal shall pay to the Contractor compensation in accordance with the prices and payment
provisions set forth in the Contract. For the removal of doubt, the Principal will withhold an
amount equal to the as-current rate of foreign contractors withholding tax payable in Papua
New Guinea (which is presently 12%) from all payments made under this Contract.7.
    
    The Contractor guarantees that its equipment (known as Rig 43), in its current
configuration, shall at all times operate in accordance with the manufacturers specifications
for that model of equipment and that based on the manufacturers specifications, the equipment
is capable of completing the works in accordance with the Specification. If Rig 43 does not
meet or exceed the original manufacturers specifications for that type of rig, then the
Contractor shall, expeditiously and at its own cost, upgrade the equipment so as to be in
accordance with the manufacturers specifications (no delay costs are payable by the Principal
should work be required to be performed on Rig 43 pursuant to this clause).8.
    
    Unless the context requires otherwise:
 (a)
    
    words defined elsewhere in the Contract shall have the same meanings in
this Formal Instrument of Agreement; and(b)
    
    words defined in any part of the Contract shall have the same meaning in
every other part of the Contract
 9.
    
    The Contract represents the entire final and concluded agreement between the Principal and
the Contractor and all previous representations and correspondence, except if and to the
extent expressly incorporated into and identified as forming part of the Contract, will have
no effect.
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Lihir Gold Limited
Contract LGL-MO-0107
Provision of Geothermal Coring Services
Part I: Formal Instrument of Agreement
    
    (LOGO)
 
 IN WITNESS
 CONTRACTOR
 SIGNED for and on behalf of
    
    
    )WASHINGTONS DRILLING
    
    
    )
    
    
    Signature of Director/Secretary(INTERNATIONAL) LIMITED
    
    
    )NZ COMPANY NUMBER: 1965214
    
    
    )in accordance with its constitution
    
    
    ))
    
    
    Print name of Director))Signature of Witness:
    
    
    )
    
    
    Signature of Director/ Secretary))Name of Witness
    
    
    )
    
    
    Name of Director/ SecretaryPRINCIPALSIGNED for and on behalf of LIHIR
    
    
    )GOLD LIMITEDby its duly authorised
    
    
    )representative in the presence of:
    
    
    )
    
    
    (Representative)))Name:
    
    
    )
    
    
    (Witness Signature))Position/Title:
    
    
    )
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure A  Special Conditions
    
    (LOGO)
 Part II: Annexure A  Special Conditions
 Table of Contents
    
    Page NoANNEXURE TO THE AUSTRALIAN STANDARD
    
    
    3GENERAL CONDITIONS OF CONTRACT
    
    
    3Construction of Contract
    
    
    3Interpretation
    
    
    3Nature of Contract
    
    
    4Bill of Quantities
    
    
    5Security, Retention Monies and Performance Undertakings
    
    
    5Evidence of Contract
    
    
    6Contract Documents
    
    
    6Assignment and Subcontracting
    
    
    6selected and nominated subcontractors
    
    
    6Provisional Sums
    
    
    7Statutory Requirements
    
    
    7Protection of People and Property
    
    
    8DAMAGE TO PERSONS AND PROPERTY OTHER THAN THE WORKS
    
    
    8Insurance of the Works
    
    
    8Public Liability Insurance
    
    
    9Insurance of Employees
    
    
    9Site
    
    
    9Quality of Materials and Work
    
    
    9Quality Assurance
    
    
    10Working Hours
    
    
    10Progress & Programming of the Works
    
    
    10Times for Commencement and Practical Completion
    
    
    13Delay or Disruption Costs
    
    
    13Variations
    
    
    13Certificates and Payments
    
    
    14Default or Insolvency
    
    
    14Termination by frustration
    
    
    15TIME FOR NOTIFICATION OF CLAIMS
    
    
    15Dispute Resolution
    
    
    1549. Cancellation of Contract
    
    
    1650. Force Majeure
    
    
    1751. Special Conditions applying to Lihir
    
    
    1852. Compliance with project procedures
    
    
    2153. Withholding Taxes and Currency
    
    
    2254. INDEMNITIES
    
    
    2255. CAP ON LIABILITY
    
    
    22
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure A  Special Conditions
    
    (LOGO)
  Appendix A
    
    AccommodationAppendix B
    
    InsurancesAppendix C
    
    Training and LocalisationAppendix D
    
    Safety PolicyAppendix E
    
    Environment RequirementsAppendix F
    
    Community Relations PolicyAppendix G
    
    Payment ScheduleAppendix H
    
    Dates, Periods, Liquidated Damages and BonusesAppendix I
    
    Schedule of Rates
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure A  Special Conditions
    
    (LOGO)
 PART II
 ANNEXURE TO THE AUSTRALIAN STANDARD
GENERAL CONDITIONS OF CONTRACT
      1
    
    CONSTRUCTION OF CONTRACTThe law applicable is that of the state of Queeensland, Australia.Delete the second paragraph and insert:Unless otherwise provided, values and prices specified in the Contract are in United
States of America currency and payments required to be made under the Contract are to
be made in that currency to the bank account nominated by the Contractor.The Contract shall not be subject to price fluctuations, exchange rate fluctuations
or rise and fall calculations.2
    
    INTERPRETATIONThe Principal is:
Lihir Gold Limited
7th Floor, Pacific Place, corner Champion Parade and Musgrave Street
Port Moresby
PAPUA NEW GUINEASeparable Portions  For definitions of Separable Portions refer to the Specification.Superintendent  All references to the Superintendent shall be substituted with
Principals Representative.The meaning of Superintendent shall apply to the Principals Representative.
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure A  Special Conditions
    
    (LOGO)
  The Principals Representative is:The Project Manager Geothermal Exploration Drilling
Lihir Gold Limited
Mining Department, Ladolam Mine Site,
Lihir Island, New Ireland Province,
PAPUA NEW GUINEASuperintendents Representative  All references to the Superintendents
Representative shall be substituted with Site Representative.The meaning of Superintendents Representative shall apply to the Site Representative.Repair Time shall mean the time when certain parts of the Constructional Plant
fails or is under repair. During this Repair Time the applicable Repair Rate shall
apply as defined in the Schedule of Rates. Repair Time shall not be applied when down
hole operations are held up due to the Contractor not carrying out his obligation to
supply any part of the Constructional Plant or consumables (the Contractor shall not
be entitled to any hourly compensation for this down time).No  Payment time shall mean the time when the Contractors and subcontractors
Constructional Plant, materials, equipment or consumables are not available for the
efficient and safe execution of drilling or workover operations and for which no rate
in the Schedule of Rates is payable or allowed. This also includes any proven
negligence on the part of the Contractor or its subcontractors.3
    
    NATURE OF CONTRACT3.2
    
    Delete the first sentence and insert:Quantities in the Bill of Quantities are estimated quantities only and are not to be taken as actual or correct quantities of work to be
carried out.The Principal does not warrant or make any representation as to the accuracy or adequacy of these quantities.The Contractor acknowledges that:the Contractor has placed no reliance on the accuracy or adequacy of those quantities but has entered into the Contract based on its own
investigations, interpretation and information; and
that the Principal has entered into the Contract in reliance upon this acknowledgement by the Contractor.3.3(b) Limits of accuracy applying to quantities for which the Principal accepted a rate or rates: The Bill of Quantities and Schedule of Rates
will not be subject to limits of accuracy.
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure A  Special Conditions
    
    (LOGO)
  3
    
    A            After clause 3, insert the following new clause 3A:3A CONTRACTORS WARRANTIESThe Contractor warrants to the Principal that the Contractor:
 (a)
    
    will at all times be suitably qualified and experienced, and will exercise due skill, care and diligence in the execution and
completion of the work under the Contract;(b)
    
    will engage subcontractors who are suitably qualified and experienced;(c)
    
    is unaware of any defect or omission in the tender documents which will affect the Contractors ability to carry out the Works in
accordance with the Contract;(d)
    
    will carry out the work under the Contract in a proper and workmanlike manner;(e)
    
    has examined and carefully checked all equipment, materials and methods of construction proposed or specified and that they are
suitable, appropriate and adequate for their purposes stated in the Contract; and(f)
    
    will execute and complete the work under the Contract in accordance with all the requirements of the Contract.
 4
    
    BILL OF QUANTITIES4.1
    
    Bill of Quantities  the alternative applying: Alternative 1.4.2
    
    The priced Bill of Quantities and Schedule of Rates shall be as set out in Part II : Annexure B  Appendix I.5
    
    SECURITY, RETENTION MONIES AND PERFORMANCE UNDERTAKINGS.5.2
    
    The Contractor shall provide security in the amount of US.5.2
    
    The Principal shall not provide security.5.3
    
    Delete clause and substitute:The Contractor shall provide security for the proper performance of the Contract to the Principal in the form of an unconditional bank
guarantee, to the approval of the Principal. The performance security shall be denominated in United States dollars.5.4
    
    Delete clause and substitute:Security shall be lodged within 21 Days after the date of execution of the Contract.5.5
    
    No period of notice is required of a partys intention to have recourse to retention moneys and/or to convert security.5.7
    
    The security shall be fully released upon issue of the Certificate of Practical Completion for the last Separable Portion executed under
this Contract.
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure A  Special Conditions
    
    (LOGO)
  5.9
    
    Not applicable.5.10
    
    All references to Corporations Law should be replaced by Corporations Act 2001.6
    
    EVIDENCE OF CONTRACT6.1
    
    Delete clause and substitute:Until the parties execute a formal Instrument of Agreement, the Contract between the parties shall be evidenced by Notice of Acceptance
of Tender, signed by Contractor.6.2
    
    Add new paragraph:No Payment shall be made to the Contractor until the Contractor has executed the Instrument of Agreement.8.0
    
    CONTRACT DOCUMENTS8.3
    
    The Principal shall supply two sets of the Contract Documents.8.4
    
    The number of copies of documents to be supplied by the Contractor: Two.9.0
    
    ASSIGNMENT AND SUBCONTRACTING9.1
    
    Clause 9.1 is replaced by the following:The Contractor shall not assign its rights under the Contract without the prior written consent of the Principal.The Principal may freely assign all or any part of its rights and/or obligations under the Contract to any other party (providing that
party has the financial capacity to satisfy any of the Principals remaining obligations to the Contractor under the Contract) without
the need to obtain the consent of the Contractor after providing notice to the Contractor of the Principals intention to do so. The
Contractor agrees at its own expense, on the request of the Principal, to do everything reasonably necessary to give effect to any such
assignment including, but not limited to, the execution of documents.9.2
    
    Subcontracts requiring approval  all subcontracts, with the exception of Century Resources International Pty Limited ACN: 093 442 767.10.0
    
    SELECTED AND NOMINATED SUBCONTRACTORS10.5
    
    Direct Payment of Nominated Subcontractor
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure A  Special Conditions
    
    (LOGO)
  Delete clause11
    
    PROVISIONAL SUMS11(b) The percentage for profit and attendance:11(c) The amount or percentage for profit and attendance: Not applicable.14
    
    STATUTORY REQUIREMENTS14.1
    
    In clause 14.1 in the first sentence of the first paragraph, insert the words ensure that it executes the work under the Contract in
full compliance after The Contractor shall and delete the word comply.
In clause 14.1, sub-paragraphs (a), (b) and (c) of the first paragraph are replaced by:
 (a)
    
    any National or State Statute, Ordinance or Law in relation to the execution and completion of the work under the Contract;(b)
    
    any regulation or by-law of any local or other duly constituted authority in relation to the execution and completion of the work
under the Contract;(c)
    
    the rules and regulations of all public bodies and companies whose property or rights are affected or may be affected in any way by
the work under the Contract.
 14.4
    
    In clause 14.4, add the following sub-paragraph (e):
 (e)
    
    The Contractor shall provide the Principal with all necessary documentation required by the Papua New Guinea Taxation Office in
relation to certificates of exemption in relation to it before any payment is made to the Contractor.
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure A  Special Conditions
    
    (LOGO)
  
 14.5
    
    The following clause 14.5 is added:14.5 Certificates and ApprovalsThe Contractor shall apply for and obtain, or cause to be applied for and obtained, all certificates, licences, consents, permits and
other approvals of authorities necessary for the execution of the Works (including all operational requirements), except those which the
Contract provides are to be obtained by or on behalf of the Principal. The certificates, licences, consents, permits and other
authorities to be obtained by or on behalf of the Principal are as follows:
 1.
    
    All licences, consents, permits or approvals associated with access to and right to occupy the land on which the Works are to be
performed or such other land through which access is required. This includes (for example) land owner persmission and mining leases.2.
    
    All licences, consents, permits or approvals associated with using or allowing to use water for the purposes of providing the Works. 
 15
    
    PROTECTION OF PEOPLE AND PROPERTYIn clause 15, add the following paragraph:Without limiting the generality of the Contractors obligations under the Contract, the Contract shall comply with the insurance
requirements set out in Part II Special Conditions Annexure B. Add the following paragraph :The Principal shall be responsible for negotiating and settling any dispute with the local population that affects the Contractors
access, operation, personnel or equipment except where the dispute is as a result of the Contractors action or inaction.17
    
    DAMAGE TO PERSONS AND PROPERTY OTHER THAN THE WORKS17.1
    
    In clause 17.1, add the following paragraph:
 (vi)
    
    liability for loss of actual or anticipated profits or any consequential, special, or indirect losses or damages.
 In clause 17.1 at the end of the clause, add the following paragraph:The Contractor shall indemnify the Principal against all damages, expenses, loss or liability suffered or incurred or to be suffered or
incurred by the Principal as a result of any claims and demands made by any employees or subcontractors of the Contractor which arise out
of or are connected with the Contract.18
    
    INSURANCE OF THE WORKS
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure A  Special Conditions
    
    (LOGO)
  18
    
    Refer to Annexure B  Appendix B appended to these Special Conditions for insurance requirements.19
    
    PUBLIC LIABILITY INSURANCERefer to Annexure B  Appendix B appended to these Special Conditions for insurance requirements.20
    
    INSURANCE OF EMPLOYEESRefer to Annexure B  Appendix B of these Special Conditions for insurance requirements.27
    
    SITE27.1
    
    The time for giving Possession of the Site shall be on the Date of Acceptance or as otherwise agreed between the parties.
In clause 27.1, at the end of the clause, insert the following:
The Contractor acknowledges and agrees that it will have non exclusive possession and use of the Site and may be required to share
possession and use of the Site with others including the Principal, its agents, employees, consultants or other contractors;27.2
    
    The Contractor shall not have sole use of the Site. Refer to the Specification for others employed on the Site.30.1
    
    QUALITY OF MATERIALS AND WORKClause 30.1 is replaced by the following:The Contractor warrants to the Principal that all work under the Contract performed by the Contractor or any subcontractor (including,
but not limited to plant, materials, goods, workmanship and methods used by the Contractor or subcontractor):
 (a)
    
    is of good workmanlike quality and suitable in all respects for its intended purposes as specified in the Contract;(b)
    
    meets the requirements set out in the Contract; and(c)
    
    complies with all relevant statutory requirements, including any statutory requirements imposed on the Principal, affecting or
applicable to the Works and with all relevant standards and codes and proper engineering practices to the extent consistent with this
Contract.
 Notwithstanding any other provision of the Contract, the Contractor also warrants to the Principal that it is responsible for:
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure A  Special Conditions
    
    (LOGO)
  
 (i)
    
    the means, methods, techniques, sequences and procedures employed by the Contractor by its subcontractors and by its suppliers in the
execution of the Works;(ii)
    
    the failure of any subcontractor to carry out the work under the Contract in accordance with the relevant subcontract;(iii)
    
    the failure of any supplier to carry out its obligations;(iv)
    
    the management and control of all industrial relations in connection with the Works concerning the Contractors personnel and its
subcontractors personnel
 30.2
    
    QUALITY ASSURANCEIn clause 30.2, the first paragraph is replaced by the following:The Contractor shall:
 (a)
    
    plan, establish and maintain a quality system for the performance of the Works which conforms to the Scope of Works;(b)
    
    provide the Principals Representative with access to that quality system of the Contractor (and each subcontractor of the
Contractor), to enable monitoring and quality auditing.
 30.3
    
    In clause 30.3, the words at its own cost are inserted after the second occurrence of the word Contractor in the first sentence.32
    
    WORKING HOURSWorking Hours shall be as defined in the Specification.33
    
    PROGRESS & PROGRAMMING OF THE WORKSDelete clause and substitute the following-33.1
    
    RATE OF PROGRESSThe Contractor shall proceed with the work under the Contract with due expedition and without delay.The Contractor shall not suspend the progress of the whole or any part of the work under the Contract except where the suspension is
under Clause 44.9 or is directed or approved by the Principals Representative under Clause 34 or is pursuant to Clause 50.
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure A  Special Conditions
    
    (LOGO)
  The Contractor shall give the Principals Representative reasonable advance notice of when the Contractor requires any information,
materials, documents or instructions from the Principals Representative or the Principal.
The Principal and the Principals Representative shall not be obliged to furnish any information, materials, documents or instructions
earlier than the Principal or the Principals Representative, as the case may be, should reasonably have anticipated at the Date of
Acceptance.33.2
    
    CONSTRUCTION PROGRAM33.2.1
    
    DEFINITIONFor the purposes of this Clause 33, a Construction Program means a program in writing setting out the dates by which or the times
within various stages or parts of the work under the Contract are to be executed and which would contain the following:Showing the dates by which the various Separable Portions 1 and 2 are to be executed or completed.Showing in detail the time activity relationship for shipping consumables and equipment required during the execution of the work under
the Contract.Detailing the time activity relationship for moving the Constructional Plant and consumables from well site to well site.Showing the times within which each well will be completed assuming normal geothermal drilling conditions and assuming no Principal
controlled time,Detailing the following performance parameters the programmed tripping in and tripping out rate, the programmed time to nipple up and
nipple down the various blow preventer equipment, casing running rate, cementing rate, any other performance parameter which the
Principals Representative may from time to time direct be included in the Construction Program.Where the word programme is used in the Contract it shall mean the same as the word program, the two words being interchangeable.33.2.2
    
    PURPOSE OF PROGRAMA Construction Program shall not affect rights or obligations in Clause 33.1 or under this Contract but shall be the document by which
the Principals Representative measures the Contractors progress, delays, changes in work content and extensions of time.33.2.3
    
    SUBMISSION, APPROVAL AND DEFAULTThe Principal shall prepare a Construction Program or Programs as directed by the Principals Representative.
The Principals Representative may from time to time, approve or direct a deviation from the Construction Program submitted by the
Contractor pursuant to this Clause and, in any such event, the Principals Representative may direct the Contractor to submit to the
Principals Representative a further program.Should the Contractor fail to submit a program by the required date, or submit a program that is unacceptable to the Principals
Representative, then the Principals Representative will notify the Contractor in writing that the due date for submission has passed, or
that
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure A  Special Conditions
    
    (LOGO)
  the program submitted is unacceptable.Should the Contractor fail to comply with a requirement to submit a program or further program or a program to the satisfaction of the
Principals Representative within twenty eight (28) days of a direction to do so then the Principals Representative may determine the
Construction Program. Any costs to the Principals Representative in preparing a Construction Program, as a part of this determination
shall be at the Contractors expense and considered as a set off under Clause 42.10.The Principal may, without prejudice to any other right or remedy, suspend payment under the Contract until such time as a program has
been submitted by the Contractor and accepted by the Principals Representative.33.2.4
    
    DEPARTURES FROM CONSTRUCTION PROGRAMThe Contractor shall not, without an approval or direction of the Principals Representative under this clause 33 or other reasonable
cause, depart from:
 (a)
    
    a Construction Program included in the Contract;(b)
    
    a Construction Program submitted to, and accepted by the Contractors Representative; or(c)
    
    a Construction Program determined by the Principals Representative.
 33.2.5
    
    MEASURES TO MAINTAIN FLEXIBILITYThe Contractor acknowledges the Principals need to retain flexibility in relation to the performance of work under the Contract and
agrees:
 (a)
    
    the Principal may alter any aspect of the timing of the performance of work under the Contract including the date of commencement and
the duration and sequencing of work under the Contract.(b)
    
    the Contractor shall comply with all timing requirements of the Principal at no cost to the Principal save as is provided for
expressly in the Contract.(c)
    
    to undertake work under the Contract in a manner consistent with that in which the Principal is undertaking work on the Site.
 33.3
    
    CONTRACTORS FAILURE TO MAINTAIN RATE OF PROGRESSThe Contractor, whenever required by the Principals Representative, shall demonstrate to the satisfaction of the Principals
Representative that the resources necessary for compliance with the Contract are being utilised by the Contractor.If in the opinion of the Principals Representative, the Contractor has failed or is failing to maintain sufficient progress to enable
the works to be completed in accordance with the current Construction Program, after making due allowance for approved extensions of
time, the Principals Representative may from time to time, without prejudice to any other right either:
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure A  Special Conditions
    
    (LOGO)
  
 (a)
    
    direct the Contractor at the Contractors own cost to increase the Contractors resources, or take such other measures as are
specified by the Principals Representative to enable the Contractor to comply with the Contractors obligations under this Contract, in
which case the Contractor shall promptly confirm to the Principals Representative in writing the measures taken;(b)
    
    (i) vary this Contract by deleting any work under this Contract;
(ii) employ others to undertake the deleted work under the Contract; and
(iii) deduct the costs incurred as a result of the performance of the work under the Contract by others from the security, retention
moneys, or any other sum otherwise due to the Contractor from time to time; or(c)
    
    apply the provisions of Clause 44.
 35
    
    TIMES FOR COMMENCEMENT AND PRACTICAL COMPLETION35.1
    
    The Contract Period for Separable Portions and the work under the Contract shall commence on the Date of execution of the Formal
Instrument of Agreement.35.2
    
    For Dates of Practical Completion for the Work and Separable Portions refer to Annexure B  Appendix H of these Special Conditions.35.5(a)
    
    Inclement weather shall not be a reason for an Extension of Time.35.6
    
    Liquidated damages (where specified) shall be payable in accordance with Appendix H to these Special Conditions.35.7
    
    The Limit on Liquidated Damages shall be in accordance with new clause 55 to these Special Conditions.35.8
    
    Delete36
    
    DELAY OR DISRUPTION COSTSExtra costs incurred by the Contractor for Extensions of time granted under Clauses 35.5 (b) (ii  xi) shall be determined by the
Principals Representative. Extra costs shall be net costs without any further adjustments.37
    
    DEFECTS LIABILITY PERIODDelete existing text of clause 37 and replace with not used.40
    
    VARIATIONS
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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure A  Special Conditions
    
    (LOGO)
  40.1
    
    (f) Insert new item:Vary the sequence in carrying out the work.40.5
    
    Delete last paragraph and insert:The Contractor is deemed to have allowed in the Contract Sum the cost of processing Variations.42
    
    CERTIFICATES AND PAYMENTS42.1
    
    For schedule of Payments refer to Appendix G of these Special Conditions.Insert:No payment shall be made until the Principal has received the Security referred to in Clause 5.0.42.3
    
    Not applicable42.4
    
    Unfixed Plant or Materials  the alternative applying: Alternative 2.42.9
    
    The rate of interest on overdue payments: 10 % per annum.44
    
    DEFAULT OR INSOLVENCY44.5
    
    In clause 44.5, add the following paragraph at the end of the clause:If the Principal takes work out of the hands of the Contractor under clause 44.4 (a) upon receipt of any such notice, the Contractor
shall at the Contractors own cost, unless the notice requires otherwise:
 (a)
    
    immediately discontinue work on the date and to the extent specified in the notice(b)
    
    place no further orders or subcontracts for materials, services or facilities other than as may be reasonably necessary or required
for Completion of such proportion of work under the Contract that is not terminated.(c)
    
    assign to the Principal or such other persons or companies as the Principal designates, those orders, subcontracts and agreements;(d)
    
    promptly make every reasonable effort to cancel orders, subcontracts and agreements other than those referred to in paragraph (c)
above to the extent that they relate to the performance of work terminated;(e)
    
    assist the Principal as specifically requested in writing, in the maintenance, protection and disposition of property acquired by
the Principal under the Contract;(f)
    
    if required by a Principals direction to do so, remove from the Site, immediately the Contractors equipment, tools, sheds and
materials;
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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure A  Special Conditions
    
    (LOGO)
  (g)
    
    assign to the Principal any other rights, titles and commitments relating to the works under the Contract which the Contractor has
acquired in the Contractors dealings with third parties in connection with the performance of the work under the Contract;(h)
    
    take any other action relating to the termination of the work under the Contract which the Principal may require; and(i)
    
    provide to the Principals Representative all drawings, documents, written information brought into existence for the purposes of the
work under the Contract and required completing them.
 44.7
    
    The delay in giving possession of the Site, shall be a substantial breach: 14 Days.44.11
    
    In clause 44.11:
 
    
    insert or other controller after a receiver in paragraph (i); and
    
    add new paragraph (m):
 (m) an administrator is appointed to a party.Clause 44.11(l)(i) is replaced by:where the other party is the Principal, the Principal may without giving notice to show cause, exercise the right under Clause 44.4 (a)
or (b)In clause 44.11, add the following paragraph at the end of the clause:Where the Contractor is a joint venture of two or more parties and any party to the joint venture commits an act as defined in clauses
44.11 (a)  (m) the Principal reserves its rights under clause 44.11(l)(i) or to continue in the Contract with the non defaulting party
or parties.45
    
    TERMINATION BY FRUSTRATION45
    
    Delete clause.46
    
    TIME FOR NOTIFICATION OF CLAIMS46.2
    
    Delete clause.47
    
    DISPUTE RESOLUTION47.2
    
    Alternative 2 shall apply47.3
    
    The Principal, acting reasonably, shall appoint the Arbitrator.47.3
    
    The arbitration shall be on Lihir Island, Papua New Guinea.
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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure A  Special Conditions
    
    (LOGO)
 
  49.
    
    CANCELLATION OF CONTRACT
 (a)
    
    The Principal may, at any time and at the Principals absolute discretion including, in order to appoint
a new contractor to undertake the work under the Contract, cancel the Contract in whole or from time to time
in part by giving the Contractor thirty (30) days written notice thereof whether or not the Contractor is in
default pursuant to Clause 44 herein. Upon expiry of such cancellation notice, the Contractor shall waive any
claims for damages, including loss of anticipated profits, on account thereof, but as the sole right and
remedy of the Contractor, the Principal shall pay the Contractor in accordance with sub-paragraph (b) below,
provided, however, that those provisions of the Contract which by their very nature shall remain in full
force and effect after such termination to the extent provided in such provisions.(b)
    
    Upon receipt of any such notice, the Contractor shall, unless the notice requires otherwise:
 (i)
    
    immediately discontinue work on the date and to the extent specified in the notice;(ii)
    
    place no further orders or subcontracts for materials, services or facilities, other than
as may be necessary or required for completion of such portion of work under the Contract that
is not cancelled;(iii)
    
    assign to the Principal or such other persons or companies as the Principal designates
those orders subcontracts and agreements as are designated by the Principals Representative;(iv)
    
    promptly make every reasonable effort to cancel upon terms satisfactory to the Principal
all orders subcontracts and agreements other than those referred to in paragraph (iii) above to
the extent that they relate to the performance of work cancelled;(v)
    
    assist the Principal and the Principals Representative, as specifically requested in
writing, in the maintenance, protection and disposition of property acquired by Principal under
the Contract;(vi)
    
    enable the Principal or the Principals nominee to take possession of all buildings,
constructions, goods, and all things incorporated in the work under the Contract or on the Site
and purchased for incorporation in the work under the Contract;(vii)
    
    if directed to do so by the Principals Representative, immediately upon receipt of the
Principals Representatives directions remove from the Site the Contractors equipment,
machines, tools, sheds, and materials; and(viii)
    
    assign to the Principal any other rights, titles and commitments relating to the work
under the Contract which the Contractor has acquired in the Contractors dealings with third
parties in connection with the performance of the work under the Contract;(ix)
    
    take any other action relating to the cancellation of the work under the Contract which the
Principals Representative or the Principal may reasonably require;(x)
    
    provide all drawings, documents written information and software brought into existence for
the purposes of the work under the Contract and required completing them.
 (c)
    
    Upon any such cancellation the Principal will pay to Contractor an amount determined in
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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure A  Special Conditions
    
    (LOGO)
 accordance with
the following (without duplication of any item):
 (i)
    
    all amounts due and not previously paid to Contractor for work completed in accordance
with the Contract prior to such notice, and for work thereafter completed as specified in
such notice;(ii)
    
    the cost of settling and paying claims arising out of the cancellation of work under
subcontracts or orders as provided in subparagraph (b) (iv) above;(iii)
    
    all reasonable costs incurred pursuant to subparagraphs (b) (v), (vii) and (ix)
above;(iv)
    
    such other reasonable residual costs and expenses as the Contractor can demonstrate
to the reasonable satisfaction of the Principal have been incurred by the Contractor
solely for the purpose of performing work under the Contract.(v)
    
    if for what ever reason the Contract is cancelled by the Principal, the Principal
shall pay the demobilisation fee, as stipulated in Schedule or Rates to the Contract.
 (d)
    
    Notwithstanding anything contained in this clause 49, neither the Contractor, nor the Contractors
subcontractors or suppliers shall be entitled to any amount in lieu of profit on unperformed work.(e)
    
    All materials, supplies, work in progress, facilities, equipment, machinery or tools acquired by the
Contractor pursuant to the performance of the work under the Contract, and
for which the Contractor has
agreed to the reimbursement of costs in accordance with the provisions of this clause, shall be transferred
to the Principal.
 50.
    
    FORCE MAJEURE
 50.1
    
    Events of Force MajeureFor the purpose of the Contract, Force Majeure shall mean any of the following acts, events or
circumstances occurring without the fault or negligence of the party to the Contract claiming
it:
 (a)
    
    acts of God, perils of the sea, accidents of navigation, war, sabotage, riot, insurrection,
civil commotion, national emergency (whether in fact or law), martial law or blockade;(b)
    
    national or statewide strikes or other labour disorders but not strikes or labour disorders
involved or caused by the Contractors own workforce, including all the Contractors
subcontractors and their workforce or the Contractors materials or equipment suppliers or their
workforces.(c)
    
    expropriation, restraint, prohibition, intervention, requisition or embargo by legislation,
regulation, decree or other legally enforceable order of any competent authority (including any
court of competent jurisdiction);(d)
    
    earthquakes, floods, fire , cyclones or other physical or natural disasters, but not other
weather conditions including those that differ from the normal weather condition prevailing at
the Site.
 50.2
    
    Notice requiredIf either the Principal or the Contractor is or reasonably expects to be prevented from
performing any of their obligations under this Contract as a result of Force Majeure as herein
before
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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure A  Special Conditions
    
    (LOGO)
 described, they shall, within five (5) days of having knowledge of the act, event or
cause constituting Force Majeure, notify the other party of the nature of the Force Majeure and
likely duration of the disability resulting therefrom and shall further notify the other party
promptly upon cessation of such disability.50.3
    
    Performance suspendedUpon the giving of the above notice, any party to the Contract may immediately request a
consultation with the other party in order to reach agreement as to the best way to deal with
the situation. If no such request is made, then performance of this Contract by the party giving
notice pursuant to Clause 50.2 shall be suspended for the duration of and insofar as the same is
affected by the disability resulting from such Force Majeure and the party giving the above
mentioned notice shall not be liable for delay or failure in performance of the relevant
provisions of the Contract for such duration. During a Force Majeure event the Contractor will
be paid at the rate set out in Part II : Annexure B  Appendix I.50.4
    
    TimeThe time for Practical Completion of the Work shall be extended commensurate with any delay or
delays in performance by either the Contractor or the Principal when such delay is caused by
Force Majeure, and notice is given pursuant to Clause 50.2.50.5
    
    Each party to overcome Force MajeureAny party to the Contract notifying Force Majeure shall use their best endeavours to overcome
such Force Majeure or remedy the disability resulting therefrom as promptly as possible,
provided always that such party shall not be required hereby to settle any labour dispute on
terms contrary to their wishes nor to test the validity of any law, regulation, decree or order
by way of legal proceedings.50.6
    
    TerminationIf the performance of a substantial portion of the work remaining to be performed under the
Contract is suspended for a period longer than thirty (30) calendar days as a result of Force
Majeure, then a party to the Contract shall have the right at their option to terminate the
Contract upon five (5) days notice to the other party. In the event of such termination, the
Principal shall compensate the Contractor in accordance with the provisions of Clause 49.51.
    
    SPECIAL CONDITIONS APPLYING TO LIHIR51.1
    
    Accommodation and MealsThe Contractor is obligated to accommodate its employees at the Principals facilities at the
Site unless otherwise provided in the Contract or determined by the Principal. Messing,
accommodation and associated ablution facilities will be made available to the Contractor and
its employees in the form of single or multiple occupancy quarters at no cost and upon the terms
and conditions set out elsewhere in these documents.. The Principal reserves the right to
establish and modify camp rules of conduct, to assign rooms, and to evict or refuse to
accommodate any person who misconducts himself or whose behaviour is such as to make their
presence undesirable.51.2
    
    Medical and First Aid Facilities51.2.1
    
    The Principal will make available its medical and first aid facilities for the treatment of
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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure A  Special Conditions
    
    (LOGO)
 employees
of the Contractor who may be injured or become ill while engaged in the performance of the work under the
Contract.If medical and first aid facilities are made available to the Contractors employees then, in
consideration for the use of such facilities and the receipt of such services, the Contractor
hereby agrees that:It will release, defend, indemnify and save harmless the Principal and its contractors,
authorised representatives, officers and employees from and against any and all claims, demands
or liabilities arising from the receipt of such services by the Contractors employees or the
use of such facilities by the Contractors employees, except for claims and demands arising out
of the active gross negligence of the Principal, its contractors or authorised representatives,
officers and employees.In the event that any of the Contractors employees is transported to a physician or hospital by
means of vehicles or aircraft ambulance service, the Contractor will promptly pay for such
service directly to the provider of the service, and subsequently invoice the Principal;Should any of the Contractors employees require the services of a physician or hospital, the
Contractor will promptly pay all charges therefore directly to the physician or hospital, and
subsequently invoice the Principal.51.2.2
    
    The Contractor shall provide and maintain basic first-aid kits on Site at all areas of active
operations.51.3
    
    Training and Site Employment51.3.1
    
    The Principal is committed to the policy more fully explained in Part II : Special Conditions Annexure
B which maximises the employment of qualified Papua New Guinea citizens, promotes the transfer of skills
through participation in both off-the-job and on-the-job training of PNG citizens and utilises local content
to the maximum extent practicable.51.3.2
    
    The Contractor shall assist in compliance with the Principals training and localisation program by
using local Lihirian Labour whenever possible and economically justified and setting up the necessary
training classes as required.51.4
    
    Use of ExplosivesThe Contractor shall not use explosives or carry out any blasting operations without the
Principals prior permission to do so.51.5
    
    PNG Resources51.5.1
    
    When calling for tenders from potential subcontractors and suppliers, the Contractor must include
local and Papua New Guinea contractors and suppliers where:
 (i)
    
    the contractors have proven ability in performing work of a similar nature and size to that
required for the relevant Works, within the specified time period; or(ii)
    
    the suppliers are established and recognised suppliers of materials and equipment who have
marketed or distributed such materials and equipment and who have applied in writing to be
registered with, and have been approved by the Principal.
 Page 19 of 22




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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure A  Special Conditions
    
    (LOGO)
 
 51.5.2
    
    The Principal is required to provide the Papua New Guinea Department of Trade with periodic reports
regarding tendering and procurement of goods and services by contractors and sub-contractors. The Contractor
must submit reports containing such information as the Principal requires permitting the Principal to prepare
the above periodic reports or such other reports required to be submitted by the Principal. Such reports by
the Contractor shall be submitted no less frequently than once per quarter on the date specified by the
Principal.51.6
    
    Industrial Health, Safety and Welfare51.6.1
    
    Compliance with Lihirs Safety Policy, Industrial Health, Safety and Welfare Acts, Mining (Safety) Act
and other relevant legislationThe Contractor shall be responsible for compliance by its employees and for ensuring that all
its subcontractors, their employees, agents and representatives comply with the Principals
Safety Policy (set out elsewhere in these documents) and the prevailing industrial health,
safety and welfare acts of Papua New Guinea and its subsequent amendments as promulgated from
time to time during the time period the Contractor and its subcontractors are performing work at
the Site.51.6.2
    
    The Contractor shall at all times conduct all operations under the Contract in a manner as to avoid
risk of bodily harm to persons or risk of damage to any property. The Contractor shall promptly take all
precautions that are necessary and adequate against any conditions that involve a risk of bodily harm to
persons or risk of damage to any property. The Contractor shall continuously monitor conditions at the
Contractors work area and shall be solely responsible for discovery, determination and correction of any
dangerous or unsafe conditions in such area to ensure safety of personnel and property.51.6.3
    
    The Principal may in its sole discretion suspend the work or any part thereof for such periods as it
thinks fit if, in the Principals opinion, the Contractor has failed or neglected to comply with the said
Safety Policy, applicable laws and regulations. In this event, the Contractor shall not be entitled to and
shall not claim any extension of time for the Contract or additional compensation for delays due to the
Contractors failure or neglect as aforesaid.51.6.4
    
    The Contractor and its employees shall comply with the Safety Policy (Part II : Special Conditions
Annexure B) and any amendments published from time to time by the Principal.51.7
    
    Labour, Employees and Supervision51.7.1
    
    Employee DataThe Contractor shall at least ten (10) days prior to any proposed arrival date submit to the
Principal a list of any new employees of the Contractor proposed to be engaged under the
Contract and any new subcontractor proposed to be engaged under the Contract to provide any part
of the work under the Contract showing name, nationality, immigration status, classification and
relevant certificates for each such employee. The Principal reserves the right to, at its sole
discretion and acting reasonably refuse permission for any of the Contractors employees or
subcontractors to be engaged under the Contract or have access to or remain on the Principals
property including the Site.
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure A  Special Conditions
    
    (LOGO)
 The Principal will supply advance notice and give valid reasons to Contractor if it intends to
refuse permission for any of the Contractors employees or subcontractors to be engaged under
the Contract or have access to or remain on the Principals property. Any employee or
subcontractor terminated under the provisions of this Clause shall not be engaged by the
Contractor or subcontractor to the Contractor without the express permission of the Principal.51.7.2
    
    Industrial RelationsIt shall be Contractors responsibility to comply with all relevant statutory requirements,
including the current Papua New Guinea Employment and Industrial Acts, governing the employment
of labour and staff at the site at which the work under the Contract is to be provided, and
observe the requirements of all relevant labour agreements, industrial awards, and employment
conditions and maintain good industrial relations with its employees to prevent the occurrence
of industrial disputes with subsequent delays or work stoppages.The Contractor will be kept fully informed by the Principal with respect to the Site and the
Principals relevant industrial relations policies and procedures and will discuss with the
Contractor all matters of industrial relations of mutual interest and/or concern. The
Contractor shall not hold discussions, make commitments, or enter into agreements related to
industrial and labour relations affecting the implementation of the work under the Contract on
the Site without the prior approval of the Principal. All matters relating to industrial and
labour relations brought to the attention of the Contractor shall immediately be advised to the
Principal.In matter of disputes, strikes, bans, or limitations on labour or pending disputes, including
any demands for wages and/or conditions at variance with prevailing wage rates and conditions,
the Contractor shall immediately notify the Principal and all actions shall be subject to
approval by the Principal. The Contractor shall not enter into any new agreement on rates of
pay and conditions of employment without prior approval of the Principal.51.7.3
    
    Employment and Earnings DataThe Contractor shall keep appropriate records for each wage period showing the names of each
wage employee by nationality, job classification, position, wage rate and allowances, attendance
records including the nature of any absence from work (both authorised or unauthorised leave,
both paid or unpaid sick leave, etc), and the total amount paid to the employee in that
particular pay period. The Contractor shall certify the statement as true and complete. Such
records shall be readily available for inspection on request of the Principal, and certified
copies shall be made available if required by the Principal.51.7.4
    
    RepatriationAll contractors will be required to repatriate all non-Lihirian employees following completion
of their contract. Transfer to other contractors will not be allowed unless prior consent of
all parties is given. The Contractor accepting a transfer of an employee will be required to
repatriate that employee on completion of the Contract.
 52.
    
    COMPLIANCE WITH PROJECT PROCEDURES
 In addition to the Principals Lihir Safe policy, the Contractor and its employees shall
comply with all the Principals Project Procedures and Regulations supplied by the Principal to
the Contractor from time to time including but not limited to (refer Part II : Special
Conditions Annexure B): -
 Page 21 of 22




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure A  Special Conditions
    
    (LOGO)
 
 (i)
    
    Accommodation Rules and Regulations;(ii)
    
    Training and Localisation(ii)
    
    Safety Policy;(iii)
    
    Environmental Requirements;(iv)
    
    Community Relations Policy.
 A breach of the Project Procedures and Regulations by Contractor or its employees or
subcontractors shall be a fundamental breach of the Contract.
 53.
    
    WITHHOLDING TAXES AND CURRENCY
 It will be the responsibility of the Contractor to apply for and obtain, or caused to be applied
for and obtained, all certificates, licences, consents, permits, tax registration (including
GST) and other approvals of PNG authorities necessary for the performance of the Contract.  The
Contractor must ensure that any of its subcontractors comply with this requirement.Where required by law, the Principal shall withhold any amounts payable to any PNG government
agency having jurisdiction, unless the Contractor provides the Principal with all necessary
documentation required by the PNG Taxation Office in relation to certificates of exemption in
relation to it before any payment is made under the Contract.Where the Exchange Control Regulations of PNG so require, the relevant payments under the
Contract shall be paid by the Principal to the Contractor in PNG Kina.
 54.
    
    INDEMNITIES
 Any indemnity given by one party to the other party under the Contract is subject,
notwithstanding any other provision of the Contract to the following limitations and exclusions:
 (a)
    
    liability is excluded to the extent caused or contributed to by any breach by the other
party or any negligent or wilful act or omission by the other party, its employees and agents,
and;(b)
    
    liability is excluded for loss of actual or anticipated profits or any consequential,
special, or indirect damages or losses.
 55.
    
    CAP ON LIABILITY55.1
    
    The total aggregate liability of the Contractor to the Principal under the Contract (including
rectification of defects, payment of liquidated damages, breach of Contract, negligence, breach of warranty
or under any indemnity) shall be limited to the amount of         excluding the proceeds of any
insurance policies that may cover the loss.55.2
    
    Notwithstanding any other provision of the Contract, the Contractor shall not be liable to the
Principal for any kind of special, incidental, indirect or consequential loss or damage (including loss of
opportunity, loss of revenue, loss of profit or anticipated profit, any losses in connection with any of the
Principals customer contracts, any finance or holding costs, and demurrage costs or other type of economic
loss).
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure B  Appendix I Schedule of Rates
    
    (LOGO)
 PART II: ANNEXURE B  APPENDIX I SCHEDULE OF RATES
  Page No.1.
    
    FORM OF AGREEMENT
    
    
    21.
    
    APPENDIX I: SCHEDULE OF RATES
    
    
    32.
    
    SEPARABLE PORTIONS SUMMARY
    
    
    43.
    
    BILL OF QUANTITIES
    
    
    54.
    
    APPLICABILITY OF RATES
    
    
    64.1.
    
    SEPARABLE PORTIONS SCHEDULE OF RATES
    
    
    64.2.
    
    DAYWORK AND METRE RATES
    
    
    64.3.
    
    MOVING RATES
    
    
    74.4.
    
    CONSUMABLES
    
    
    74.5.
    
    DOWNHOLE TUBULARS  LOST IN HOLE
    
    
    74.6.
    
    BREAK DOWNS
    
    
    8
 Page 1 of 11




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure B  Appen
    
    (LOGO)
 1.
    
    FORM OF AGREEMENTCONTRACT FOR: PROVISION OF GEOTHERMAL CORING SERVICES
 TO PRINCIPAL:
    
    Lihir Gold Limited.7 th Floor, Pacific Place, Cnr Champion Parade and Musgrave StreetPO Box 789Port MoresbyPAPUA NEW GUINEA.
 1.
    
    Having examined the Site, the Conditions of Contract, Specification, Drawings, Bill of
Quantities and Schedule of Rates for the execution of the above named Works, we the
undersigned offer to supply one rig, execute and complete such Works and remedy any defects
therein in conformity with the Conditions of Contract, Specification, Bill of Quantities and
Schedule of Rates for the sum ofmade up as follows:
 DESCRIPTION
    
    UNITED STATES DOLLARS
    
    US$Separable Portion No. 1Work under the ContractSeparable Portion No. 2
 PLUS such other sums as may be ascertained in accordance with the said Conditions.2.
    
    For the removal of doubt, the Principal will withhold an amount equal to the as-current rate
of foreign contractors withholding tax payable in Papua New Guinea (which is presently 12%)
from all payments made under this Contract.3.
    
    We undertake to complete each Separable Portion and the whole of the Works comprised in the
Contract within the times and time stated in the Special Conditions of Contract.Dated this  day of  2007Signature  in the capacity ofWho confirm that they are duly authorised to sign for and on behalf of:Washingtons Drilling (International) Limited (NZ Company No. 1965214)
 Page 2 of 11




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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure B  Appen
    
    (LOGO)
 1.
    
    APPENDIX I: SCHEDULE OF RATESWhen completed, this entire Section shall be appended as part of Appendix I to the
Special Conditions  Annexure B.
 Page 3 of 11




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure B  Appendix I Schedule of Rates
    
    (LOGO)
 2.
    
    SEPARABLE PORTIONS SUMMARYMobilisation and demobilisation rates shall include the costs associated with the
mobilisation and demobilisation of Constructional Plant, materials, consumables and
personnel for one rig, as specified as the responsibility of the Contractor, to be
loaded and unloaded at the Contractors home base.
 DESCRIPTION
    
    UNIT
    
    TOTALSeparable PortionsSeparable Portion 1 (mobilisation)
    
    Lump SumSeparable Portion 2 (demobilisation)
    
    Lump Sum
 Page 4 of 11




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure B  Appendix I Schedule of Rates
    
    (LOGO)
 3.
    
    BILL OF QUANTITIESThe estimated quantity values in column labeled (Q) of the following table are the total for
one (1) coring and drilling rig. These are estimates for five (5) wells only. Prior to letting
the Contract or during the term of the Contract, the Principal cannot or will not give
guarantees or assurances of how much deviation from these estimated values or deviation on the
number of wells from the five (5) wells will occur.
 ESTIMATEDQUANTITYDESCRIPTION
    
    UNIT
    
    
    (Q)
    
    
    RATE (R)
    
    
    TOTAL (Q x R)Operating Rate:
    
    hours
    
    
    750Stand-by with Crew Rate:
    
    hours
    
    
    50Rig Move Rate:
    
    hours
    
    
    288Drilling and hole opening Rate
    
    hours
    
    
    800PQ Coring Rate:
    
    meter
    
    
    1500HQ Coring Rate:
    
    meter
    
    
    4,250NQ Coring Rate:
    
    meter
    
    
    500Directional Survey Rate
    
    month
    
    
    6Water supply pumping rate
    
    days
    
    
    180WORK UNDER THE CONTRACT SUM (US$)(to be entered on to the Form of Tender)
 
 *
    
    PQ, HQ and NQ rates used in the table are based on the highest rate corresponding to
the maximum angles from the vertical that will be cored.*
    
    For the removal of doubt, the Principal will withhold an amount equal to the
as-current rate of foreign contractors withholding tax payable in Papua New Guinea
(which is presently 12%) from all payments made under this Contract. Page 5 of 11




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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure B  Appen
    
    (LOGO)
 4.
    
    APPLICABILITY OF RATES4.1.
    
    SEPARABLE PORTIONS SCHEDULE OF RATESThe mobilization and demobilization rate shall include the costs
associated with the mobilization and demobilization of Constructional
Plant consisting of one rig, materials, personnel and consumables for
all services, including any standby charges incurred from
sub-contractors. It shall include the complete cost of all transport
where the Contractors equipment or materials are located, all
pre-shipment checks wharf fees, all shipping, personnel airfares and
visa costs.
 DESCRIPTION
    
    UNIT
    
    TOTALSeparable Portions
(enter results into Form of Tender)Separable Portion 1 (mobilization)
    
    Lump SumSeparable Portion 2 (demobilisation)
    
    Lump Sum
 
 *
    
    An advance payment of         shall be paid on confirmation of contract
execution and lodgment of a security in accordance with clause 5 of Part II: Annexure A
- Special Conditions. The remainder,          shall be paid when the rig is ready to
Spud the first well. 4.2.
    
    DAYWORK AND METRE RATES
 1)
    
    Daywork include the rates defined in the Schedule of Rates and
include:
 
    
    operating rate
    
    standby with crew rate
    
    standby without crew rate
    
    force majeure rate
 2)
    
    In computing the chargeable time to apply to the various daywork
rates (including No-Payment Time), the actual time will be adjusted to the nearest
half -hour, such that the daily total time shall not exceed 24 hours.3)
    
    In computing the drilled or cored metres for the application of metre
rates, the actual metres completed will be adjusted to the nearest half metre. A
section of hole shall not be measured twice or have more than one metre rate apply
to it.4)
    
    All daywork and metre rates include:
 
    
    the operating cost of the Constructional Plant with personnel including
the cost of rotating the Contractors personnel in and out of Lihir and the
site (the cost of air travel between Cairns and Lihir shall be to the
Principals account),
    
    the operating cost of the drilling equipment including all down hole
tools,
    
    the storage of materials supplied by the Contractor, the relevant care
and maintenance, and the transport from the Contractors storage area to the
drilling sites.
    
    the operation and maintenance of the rig equipment.
 Page 6 of 11




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure B  Appen
    
    (LOGO)
 1)
    
    No-Payment Time shall apply only when Operating Time is applicable
and if any one of the following occurs:
 
    
    Non availability of the rig to carry out operations in an efficient and
safe manner,
    
    Non availability of Contractor supplied consumables at the rig site that
delays operations for which Operating Time is applicable.
 4.3.
    
    MOVING RATESMoving rates shall cover the activities listed in the Scope of Work specified in the
Specification and shall cover all associated costs of carrying out the Scope of Work.
It shall be carried out in the fastest, safest and most practical way possible. The
Moving Rate shall apply between Rig Release and Spud of the next drill site.4.4.
    
    CONSUMABLESUnless otherwise stated, all consumables listed in the Schedule of Rates shall be brand
new. The rate for each consumable item shall include all costs associated with
purchasing, transporting, storage, inventory control, loading and unloading, and
bringing it to the drill site in a timely manner ready for use down hole. All other
consumables rates shall be payable when each item is on Site and has been brought to
the Site with the approval of the Principals Representative.Consumables shall be charged as Provisional Sums in accordance with clause 11 of the
General Conditions and the Schedule of Rates. The Contractor must obtain the Principal
Representatives approval for all consumables purchased.4.5.
    
    DOWNHOLE TUBULARS  LOST IN HOLETo the extent that the Contractor has not carried out a negligent act, and that the
Contractors insurance does not compensate the Contractor or the Principal, and subject
to the Contractor satisfying the Principal that the failure of the insurance was not as
a result of some default on the part of the Contractor; the Principal shall compensate
the Contractor for damage to or loss of Contractors drill bits, core bits, core rod,
core barrel, drill string and down-hole tools as a result of fishing operations and
working on stuck pipe and while the same are down-hole tools and while the same are
down-hole.Except for core bits and drill bits, the Principals liability for the replacement of
Contractors equipment shall be 100% of the landed new replacement cost of the item at
the Site less depreciation calculated from date of purchase, of zero percent (0%) per
year for drill strings and tubulars.Ownership of the equipment / tools damaged or lost is automatically transferred to the
Principal.
Unless otherwise specified in the Table 3.1, the rates apply to each rig in a two rig
package.
Down hole Tubulars shall be charged as Provisional Sums in accordance with clause 11 of
the General Conditions and the Schedule of Rates.
 Page 7 of 11




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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure B  Appen
    
    (LOGO)
 4.6.
    
    BREAK DOWNSThis clause shall apply when the rig and associated equipment is on an hourly rate (or
day rate in the case of the water supply pumping rate) and shall apply to any downtime
due to a break down or repair of the rig or other critical component of the rig,
including the water supply system, that prevents the rig from operating properly or
safely. For the first 48 hours accumulated over the course of a calendar month, the
applicable standby with crew rate shall apply.For anytime over 48 hours accumulated over the course of a calendar month, this shall
be No  Payment time and no hourly rate shall apply until such time as the rig and
associated equipment is fully functional.Any unused downtime shall not be carried over to the next calendar month.Table 3-1. Schedule of Rates
 ITEMNO.
    
    DESCRIPTION
    
    UNIT
    
    RATE (US$)DAY WORK RATES1.
    
    Moving Rate: This rate is for all time and activities to move
all of the rig equipment, personnel and materials from one
well site to another within the Site. It shall be done in the
fastest and safest way possible (approximately three days) and
apply only for the time the rig is moving. It shall apply to a
fully functional drilling and coring rig, full crew and shall
cover a duration from Rig Release to Spudding the new well. It
shall not apply to times when the rig is not moving, e.g. when
night time moves are prohibited due to lack of lighting at both
ends.
    
    hour2.
    
    Operating Rate: This rate applies to all activities covered by
Operating Time set out in the Part IV: Specification that
requires all or any part of the fully functional drilling rig
and equipment, full crew, consumables (Principal owned and
Contractors) and materials.
    
    hour3.
    
    Drilling Rate: This rate applies to all activities covered by
Operating Time set out in the Part IV: Specification that
requires all or any part of the fully functional drilling rig
and equipment, full crew, consumables (Principal owned and
Contractors) and materials. This rate shall apply for all
depths or hole intervals drilled or drilled/cored and opened
for any finished hole size with a diameter of 6-1/8 and
greater. This rate does not include any section of hole that is
PQ size or less.
    
    hour
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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure B  Appen
    
    (LOGO)
 ITEMNO.
    
    DESCRIPTION
    
    UNIT
    
    RATE (US$)4.
    
    PQ Coring Rate: This rate applies to all activities covered by
Drilling and Coring Time set out in the Part IV: Specification
that requires all or any part of the fully functional drilling
rig and equipment, full crew, consumables (Principal owned and
Contractors) and materials. This rate shall apply for all
depths or hole intervals that are PQ cored. It shall include
hole opening where required.
    
    metre5.
    
    HQ Coring Rate: This rate applies to all activities covered by
Drilling and Coring Time set out in the Part IV: Specification
that requires all or any part of the fully functional drilling
rig and equipment, full crew, consumables (Principal owned and
Contractors) and materials. This rate shall apply for all
depths or hole intervals that are HQ cored. It shall include
hole opening where required.
    
    metre6.
    
    NQ Coring Rate: This rate applies to all activities covered by
Drilling and Coring Time set out in the Part IV: Specification
that requires all or any part of the fully functional drilling
rig and equipment, full crew, consumables (Principal owned and
Contractors) and materials. This rate shall apply for all
depths or hole intervals that are NQ cored. It shall include
hole opening where required.
    
    metre7.
    
    Stand-by with Crew Rate: This rate will be applied when the rig
and personnel are not operating due to:
    
    hour(a) waiting for instructions from the Principals
Representative,
(b) natural calamity,
(c) waiting for the Principals Representative to carry out its
obligations under the terms of this Contract including waiting
on Principals provided permits and access to sites.
The rig and personnel must be in a state of readiness to begin
or resume operations.8.
    
    Stand-by without Crew Rate: This rate shall be applied when the
Contractor ceases all operations and releases his crew at the
written request of the Principals Representative. All
equipment may be secured, and personnel (except for site
security) need not attend. Stand-by without crew will continue
until normal operations are resumed. Transportation expenses
borne by the Contractor for personnel released or returned at
the end of the stand-by period, with prior approval of the
Principals Representative shall be reimbursed at cost by the
Principal to the Contractor. The Stand-by without Crew rate is
inclusive of the expenses for the minimum personnel necessary
at the rig site during the period of suspension of operations.
The Principals Representative, who will give the Contractor at
least five (5) days prior written notice, shall request the
re-mobilisation of the Contractors personnel. In the case that
the Contractors full crew as provided for in the Specification
is not available at the rig site at the end of such prior
notice the Contractor
    
    hour
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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure B  Appen
    
    (LOGO)
 ITEMNO.
    
    DESCRIPTION
    
    UNIT
    
    RATE (US$)shall receive no remuneration until the
moment the Contractors personnel become available or until
drilling operations recommence.9.
    
    Water supply pumping rate: This rate shall cover the supply of
adequate pumping units, pipelines and accessories to complete a
fully function water supply system as set out in Part IV: Specification, from a water source within the Site to the rig
tanks. The rate shall cover installing the system, operating
and maintaining the system, and picking up and moving of the
system to another location.
    
    day
    
    $10.
    
    Directional survey tool with heat shield including consumables
    
    month
    
    $11.
    
    Force Majeure Rate: The Force Majeure Rate shall be payable
during any period in which operations are not being carried on
because of force majeure up to a maximum of 20 days.
    
    day
    
    Standby rate with or
without crew, whichever
is applicable.CONSUMABLES (PROVISIONAL SUMS)12.
    
    Casing high temperature Teflon thread sealant
    
    litre13.
    
    High temperature thread locking compound
    
    litre14.
    
    Used NQ core rod or equivalent sized tubing slotted  per 3 m
length
    
    joint15.
    
    Used HQ core rod or equivalent sized tubing slotted  per 3 m
length
    
    joint16.
    
    New annular rubber elements or pipe ram rubber parts
    
    each17.
    
    New packer rubber for wireline BOP
    
    eachREPLACEMENT DOWN HOLE TUBULARS  BRAND NEW INCLUDING SHIPMENT TO LIHIR
(PROVISIONAL SUMS unless indicated otherwise)18.
    
    Directional survey tool (*Not a Provisional Sum)
    
    Each
    
    $19.
    
    Soft Formation PQ Coring Bit
    
    Each20.
    
    Medium Formation PQ Coring Bit
    
    Each21.
    
    Hard Formation PQ Coring Bit
    
    Each22.
    
    Soft Formation HQ Coring Bit
    
    Each23.
    
    Medium Formation HQ Coring Bit
    
    Each24.
    
    Hard Formation HQ Coring Bit
    
    Each25.
    
    Soft Formation NQ Coring Bit
    
    Each26.
    
    Medium Formation NQ Coring Bit
    
    Each
 Page 10 of 11




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part II: Annexure B  Appen
    
    (LOGO)
 ITEMNO.
    
    DESCRIPTION
    
    UNIT
    
    RATE (US$)27.
    
    Hard Formation NQ Coring Bit
    
    Each28.
    
    8 1/2 tricone bit  mill tooth
    
    Each29.
    
    8 1/2 tricone bit  tungsten insert
    
    Each30.
    
    8 1/2 integral string stabiliser
    
    Each31.
    
    8 1/2 integral near bit stabiliser
    
    Each32.
    
    2-7/8 or 4.5 drill pipe Grade E (range 1)
    
    Joint33.
    
    4-3/4 drill collar (range 1)
    
    Joint34.
    
    PQ coring rods (3 m length)
    
    Joint35.
    
    HQ coring rods (3 m length)
    
    Joint36.
    
    NQ coring rods (3 m length)
    
    Joint37.
    
    PQ core barrel (3 m length)
    
    Joint38.
    
    HQ core barrel (3 or 6 m length)
    
    Each39.
    
    NQ core barrel (3 or 6 m length)
    
    EachOTHER EQUIPMENT, MATERIALS AND SERVICES SUPPLIED BY CONTRACTOR40.
    
    Not used
  Page 11 of 11




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##### 



LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 PART II: ANNEXURE B  APPENDIX TO SPECIAL CONDITIONS
 APPENDIX A  ACCOMMODATION
 RULES AND REGULATIONS
 1.
    
    GENERAL
 The Principal will provide accommodation and messing together with laundering
facilities at the Site for the employees of the Contractor or subcontractor of the
Contractor authorized by the Principal subject to personnel compliance with policies,
camp rules and availability.Alternatively, at Principals request, Contractor shall provide furnished and serviced
accommodation with Principal providing messing only.Accommodation will be available on both a single and shared basis with detached
ablution blocks. Whereas the single accommodation shall be limited to key personnel, no
guarantee on availability of single accommodation is hereby given.Any person, who wilfully causes damage to any part of the Principals premises or its
facilities or acts in a manner that interferes with the use or enjoyment of the
facilities by other residents, will have their accommodation withdrawn without notice.The Contractor shall ensure that all its employees including the employees of any of
its subcontractors are fully familiar with the relevant provisions of this Appendix.Advance booking must be made as part of travel arrangements; no one shall be provided
camp accommodation without prior approval by the Principal.
 2.
    
    BOOKING IN/BOOKING OUT
 All persons shall be required to book into the accommodation facility through the camp
manager in the camp office. The camp manager shall only allocate accommodation to
those persons who have been approved by the Principal.All departing residents must book out through the camp office and obtain departing
residents clearance.
 3.
    
    CAMP RULES AND REGULATIONS
 Each resident of the camp shall be given a copy of the camp rules and regulations that
apply from time to time and shall be required to acknowledge receipt thereof. These
rules and regulations are subject to change by the Principal from time to time and are
as follows:Any disregard or breach of these rules and regulations can lead to withdrawal of an
individual accommodation without notice.
 Page 1 of 27




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##### 



LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 Accommodation
 1.
    
    Personnel approved to commence work under the Contract shall be
booked into the camp by their employer, in accordance with registration procedures
established by the Camp Manager.2.
    
    Each Camp resident will be allocated a bed, mattress, pillow, pillow
slip, set of sheets, one towel, waste paper basket laundry bag and lunch box. On
termination of accommodation the resident or his employer will pay for any
discrepancies.3.
    
    Dirty laundry and towels shall be placed in the bag and delivered to
the laundry. This laundry will only be washed and folded and returned. Towels are
issued on a one for one basis only.4.
    
    Littering is an offence in the Camp area.5.
    
    Report lost keys to the Camp office where a new key will be issued, a
charge may apply.6.
    
    Personal belongings are not insured against loss or damage by fire or
theft. Valuables and money should not be left in the rooms. The safekeeping and
insurance is the Camp residents responsibility.7.
    
    Camp residents must not interfere with any electrical appliances in
any part of the Camp.8.
    
    Persons other than those involved with the work under the Contract
are not allowed to stay in the Camp.9.
    
    Accommodation cannot be changed without the permission of the Camp
Manager.10.
    
    Pets are not allowed within the Camp area or on the Site.11.
    
    No alcohol is to be consumed in the Camp other than in the designated
wet canteen area.12.
    
    Persons involved in violent behaviour, damage to Camp property,
fighting, disturbing the peace, misconduct, theft and/or the use of abusive or
indecent language may be directed to vacate forthwith their allocated
accommodation.13.
    
    On termination of the accommodation the Camp Manager will issue the
Camp resident with a Camp clearance certificate signed by both the resident and
the Camp Manager and which shall list any loss or damage to Camp equipment and
buildings allocated to the resident. The Camp resident shall pay for the cost of
replacement or repair of lost or damaged items. Fair wear and tear excepted. The
cost of any replacement or repair may be deducted from the employees termination
pay.
 Page 2 of 27




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##### 



LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 14.
    
    Offensive weapons such as firearms, knives etc are prohibited in the
Camp area.15.
    
    No unauthorized motor vehicles are to be parked in the living
quarters area.16.
    
    Accommodation will be immediately withdrawn from any resident found
under the influence of, or in possession of illegal drugs. The possession of betel
nut is prohibited within the Camp area.17.
    
    Accommodation will be immediately withdrawn from any resident found
to be causing a nuisance, attempting or entering another residents room without
the authority of the Camp Manager or the occupant of the room.18.
    
    Any person found interfering with or discharging fire extinguishers
would be removed without warning.19.
    
    All Camp amenities, which have been arranged, installed or supplied
by the Company, are for use by Camp residents, and as such should be treated with
appropriate respect if the amenity is to continue.20.
    
    Organized gambling or other illegal activity may result in
accommodation being withdrawn.21.
    
    Only authorized persons are permitted to enter the female or male
quarters.22.
    
    It is forbidden to urinate or defecate in places other than the
toilets provided.23.
    
    To avoid continuation of daily charges whilst absent, it is the
residents responsibility to complete the Departure form and return the key,
laundry bag and lunchbox.24.
    
    Security reserve the right to check all bags etc belonging to Camp
residents, workers and visitors entering or leaving the Construction Camp.
Breaches of company policy may result in accommodation being withdrawn and or
legal proceedings may be implemented.
 Dry Mess
 1.
    
    Shorts or trousers and a shirt, T-shirt or similar type of garment
must be worn in the dining hall at meal times. Clothing worn shall be free of
grease, chemical contamination and mud etc. FOOTWEAR IS ESSENTIAL.2.
    
    No person shall be served a meal without producing Appropriate
Identification, or other authorization.3.
    
    Meal hours will be strictly observed and meals will not be served
outside these hours unless authorized by the Camp Manager for special reasons,
such as working emergency overtime.
 Page 3 of 27




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##### 



LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 4.
    
    Meals are not to be taken away for consumption outside the dining
hall without prior approval of the Camp Manager and unless the meal is intended
for a Camp occupant confined to bed through illness.5.
    
    Misconduct or abusive language in the dining hall will not be
permitted.6.
    
    Complaints as to the quantity, quality of food served are to be
directed only to the Camp Manager or his representative.7.
    
    No items of food, cutlery, crockery or other mess equipment are to be
removed from the dining hall.8.
    
    All dirty dishes and cutlery shall be returned to the servery.9.
    
    Alcohol is prohibited in the dining room with the exception of
approved functions or as directed by the Camp Manager.10.
    
    Hand washing facilities are installed in the mess foyer and must be
used prior to entering dining room.
 Wet Canteens & Recreation Areas
 1.
    
    Liquor shall not be served in the Canteen outside the normal
operating hours. These hours will be posted on a notice board outside the mess.2.
    
    The Wet Mess & Recreation amenities are available to registered Camp
residents and their legitimate guests only.3.
    
    Beer and wine are the only alcoholic beverages available for sale
from the Canteen.4.
    
    Liquor shall not be removed from the Canteen without prior written
approval of the Camp Manager.5.
    
    In accordance with the provisions of the PNG Liquor Act, liquor shall
not be given, sold, supplied or delivered to any person under the age of 18 years
or to any person in a state of intoxication.6.
    
    No person under the age of 18 years shall be permitted to be in the
bar or the Canteen.7.
    
    Gambling and/or other illegal activities are strictly prohibited in
the Canteen.8.
    
    The licensee reserves the right to remove any patron from the Canteen
& Recreation area without prior notice.9.
    
    Patrons shall observe the rules and normal operating hours as posted
on the notice boards.
 Page 4 of 27




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##### 



LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 10.
    
    No alcohol is to be consumed in the Camp other than in the designated
wet canteen area.
  4.
    
    INDEMNITY
 The Contractor shall indemnify and hold harmless the Principal, the Camp Manager and
all servants, officers and agents of the Principal from and against any and all claims,
demands, debts, accounts, expenses, costs, liens, actions and proceedings of any and
every kind whatsoever by any person, corporation or body arising from the accommodation
of any person who whilst booked into the Principals camp was an employee of the
Contractor or an employee of any subcontractor to the Contractor.
 Page 5 of 27




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##### 



LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 APPENDIX B  INSURANCES
 1.
    
    INSURANCES EFFECTED BY THE CONTRACTOR1.1.A
    
    MOTOR VEHICLE RELATED INSURANCES
 The Contractor shall, at its own expense, take out and maintain in effect, and cause
its subcontractors to take out and maintain in effect, the insurance set out below.
 (a)
    
    Motor Vehicle Third Party Insurance covering third party personal
injuries liability for all motor vehicles, as required by the PNG Motor Vehicles
(Third Party Insurance) Act.(b)
    
    Comprehensive Motor Vehicle Liability Insurance covering use of all
motor vehicles used by the Contractor or its subcontractors (whether or not owned
by them) in connection with the execution of the work under the Contract, with
not less than the following limits; Death, Bodily Injury and Kina equivalent of
AUD 2,000,000 each person/occurrence Property Damage AUD 2,000,000.
 The identity of insurers and the form of the policies shall be subject to the approval
of the Principals Representative, such approval not to be unreasonably withheld.
 1.1.B
    
    THIRD PARTY LIABILITY INSURANCE
 The Contractor shall, at its own expense take out and maintain in effect, and cause its
subcontractors to take out and maintain in effect Third Party Liability Insurance
covering all operations of the Contractor in the performance of work under the Contract
on or off the Site, including contractual liability insurance covering the liability
assumed in the Contract. This policy or policies shall provide AUD 2,000,000 combined
single limits for all injuries or death to persons and damages per occurrence. The
identity of the insurers and the form of the policies shall be subject to the approval
of the Principals Representative, such approval not to be unreasonably withheld.
 1.2.
    
    WORKERS COMPENSATION AND OCCUPATIONAL DISEASE INSURANCES
 The Contractor shall, at its own expense, take out and maintain in effect, and cause
its subcontractors (including those at sub-tier levels) to take out and maintain in
effect, insurance covering any damage, expense, loss or liability suffered or insured
by any person employed by it or its subcontractors during the performance of work under
the Contract until the date of completion of the work under the Contract, whether
arising;
 (a)
    
    by virtue of any statute (whether provincial, state or federal)
relating to workers or accident compensation or employers liability in any
relevant jurisdiction where services and work under the Contract are to be
performed;(b)
    
    by virtue of the PNG Workers Compensation Act; or(c)
    
    at common law
 Page 6 of 27




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##### 



LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 Such insurance shall include the following special coverage extensions:
 (a)
    
    Employers Liability Insurance coverage with limits of not less than
AUD 2,000,000 for any one occurrence attributable to a single source/each
employee;(b)
    
    Borrowed Servant endorsement providing that a Workers Compensation
claim brought against the Principal by a Contractors employee will be treated as
a claim against the Contractor;(c)
    
    In rem endorsement providing that a claim in rem shall be
treated as a claim against the Contractor; and,(d)
    
    extend to include the interest, if any, of Lihir Gold Limited or the
Principal.
 In the event of a Contractors employee being specifically directed by the Principals
Representative to travel outside of Papua New Guinea and Australia, the cost for
additional Workers Compensation insurance shall be the responsibility of the
Contractor.
 1.3.
    
    CONTRACTORS PLANT AND EQUIPMENT INSURANCE
 The Contractor, at the Contractors own expense, shall take out and maintain in effect,
and/or cause its subcontractors to take out and maintain in effect, insurance covering
all of the Contractors and/or its subcontractors major plant and equipment which the
Contractor or its subcontractors intend to bring onto the Site for the execution of the
work under the Contract. The identity of the insurers and the form of the policies
shall be subject to the approval of the Principals Representative, such approval not
be unreasonably withheld.
 1.4.
    
    FAILURE OF CONTRACTORS SUBCONTRACTORS TO INSURE
 If any of the Contractors subcontractors fail to effect or maintain in effect any of
the insurances contemplated under this Appendix B, the Contractor must effect and
maintain in effect those insurances at its own expense.
 1.5.
    
    PNG INSURANCE ACT REQUIREMENTS
 The Contractor shall, and ensure that each of its subcontractors shall comply with the
requirements of the PNG Insurance Act which requires all insurance covering risks
situated in Papua New Guinea to be arranged with PNG licensed insurers acceptable to
the Principals Representative, unless an exemption is obtained. Otherwise, insurance
required by the Contractor will be arranged with insurance companies acceptable to the
Principals Representative.
 1.6.
    
    CROSS LIABILITY
 (a)
    
    Where, in accordance with the provisions of the Contact, insurance
effected by the Contractor and its subcontractors are effected in joint names, the
Contractor must ensure that the insurance policies provide that all insurance
agreements and endorsements (with
 Page 7 of 27




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##### 



LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 the exception of limits of liability) operate as if there was a separate policy of
insurance covering each party comprising the insured under each policy.(b)
    
    The Contractor must ensure that each insurance policy effected by it
and its subcontractors provides that:
 (i)
    
    the interests of the Principal are noted on the policy as an
additional insured;(ii)
    
    Insurances must be with a reputable insurer;(iii)
    
    Prior to the commencement of the work under the Contract,
the Contractor must provide to the Principal certificates of currency for the
insurances listed above;(iv)
    
    All insurances must be maintained in full force and effect
for the duration of this Contract and any defects liability period following
termination of the Contract;(v)
    
    The Contractor must ensure that all policies of insurance
effected are written on an occurrence basis. If any policy is written on a
claims made basis, that policy must be maintained in full force and effect
for a period of 6 years.
 1.7.
    
    CERTIFICATES
 (a)
    
    The Contractor shall not commence work at the Site until a
certificate in evidence of each insurance coverage required to be effected by the
Contractor under the Contract has been provided to the Principals
Representative.(b)
    
    The Contractor shall be responsible for compliance by all its
subcontractors with the insurance requirements in the Contract and shall furnish
certificates to the Principals Representative evidencing the required insurance
for the subcontractors.(c)
    
    The Principals Representatives approval or failure to disapprove
insurance certificates furnished by the Contractor or its subcontractors shall
not release the Contractor or its subcontractors from full responsibility for
liability, damage and accidents set out in the Contract.(d)
    
    If at any time the required insurance policies referred to in this
Appendix are not offered or should be cancelled, terminated or modified so that
the insurance is not in full force and effect as required herein, the Principal
may terminate the Contract for default or obtain insurance coverage equal to that
required herein and recover costs therefore from the Contractor.(e)
    
    Certificates shall be made out to the Principal and delivered care
of the Principals Representative.
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LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 (f)
    
    Certificates shall be furnished to the Principals Representative
promptly and must reflect both the endorsement provisions referred to in this
Appendix and the additional interests, where applicable. Each certificate shall
specify the date when such benefits and insurance expire. Where certificates are
provided from non-registered PNG insurers, they are to be accompanied by the
supporting exemption authority from the PNG Insurance Commissioners Office. The
Contractor agrees that such benefits and insurance, as specified above, shall be
provided and maintained until the entire work under the Contract has been
completed and accepted by the Principals Representative. An original copy of
each certificate shall be mailed or delivered to the Principals Representative.
 1.8.
    
    DAMAGE TO VEHICLES
 In addition to the Contractors liability for property damage as set forth in the
Contract, the Contractor shall also be responsible for any damage to its vehicles and
the vehicles of its subcontractors, employees, and agents or representatives of the
Contractor or subcontractors while the vehicles are parked or used on the Principals
property and the Site.
 1.9.
    
    SPECIAL PROVISIONS OF INSURANCE POLICIES
 The Motor Vehicle Related policies under Clause 1.1A, Third Party Liability Insurance
under Clause 1.1.B and Contractors Plant and Equipment Insurance under Clause 1.3
shall:
 (a)
    
    provide that they may not be cancelled or the protection afforded
thereby substantially changed without 30 days prior written notice to the
Principals Representative;(b)
    
    be maintained in effect during the performance of work under the
Contract until the date of completion of the work under the Contract;(c)
    
    name Lihir Gold Limited, the Principal, and their subsidiaries,
associated and affiliated companies and their respective officers, directors and
employees as insured;(d)
    
    contain endorsements waiving the insurers right to subrogation
against Lihir Gold Limited, the Principal and their subsidiaries, associated, and
affiliated companies, and their respective officers, directors and employees; and(e)
    
    contain endorsements stating that the Contractors coverage is
primary to any coverage the Principal may elect to carry for its own account or
for the Contractor and its subcontractors.
 Any and all deductibles specified in such insurances provided by the Contractor shall
be assumed by, and for the account of, and at the sole risk of the Contractor.
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LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 APPENDIX C  TRAINING AND LOCALISATION
 1.
    
    TRAINING AND LOCALISATION
 The Principal is committed to the policy to maximize employment of qualified Papua New
Guinea citizens, promote skill transfer through position training of PNG citizens and
localize positions to the maximum extent practical.The Contractor must ensure that preference for employment and training is given in the
following order:
 (a)
    
    Lihirians;(b)
    
    New Irelanders;(c)
    
    All other Papua New Guineans.
 The Contractor will be required to give first preference in hiring graduates of the
Principals training program.
 2.
    
    CONTRACTOR, AND SUB-CONTRACTORS
 The Contractor and its subcontractors shall establish training procedures to ensure the
maximum practical participation of Papua New Guinea (PNG) citizens in the work, improve
the job skills of PNG citizens employed, and as a minimum shall:
 a)
    
    Submit to the Principal within thirty (30) days of the signing of the
Contract, the Contractors training program for PNG citizens.b)
    
    Comply with all applicable laws, regulations, and standards.c)
    
    Promptly comply with the Principals instructions or directions
related to training of PNG citizens.d)
    
    The Contractor and its subcontractors shall fill entry-level
positions from a pool of entry-level personnel nominated by the Principal.e)
    
    Provide where practical, for the continuity of employment and
development of PNG citizens who have prior training related to work being
performed.f)
    
    Appoint a training coordinator to monitor, facilitate, administer,
record, and report training activities.g)
    
    Maintain employment records for each PNG citizen employee that
reflects the employees training activities, for provision to the Principal.h)
    
    Report training achievements on a monthly basis to the Principal.i)
    
    Conduct on-job training for their employees.j)
    
    Conduct and or enrol their employees in off-job training where
appropriate.k)
    
    Provide certification (as appropriate) to employees upon successful
completion of on-job training and/or testing.
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LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 APPENDIX D: SAFETY POLICY
 1.
    
    PURPOSE
 These site safety procedures have been prepared to:
 1.
    
    provide safe working conditions for all persons engaged on work under
the Contract2.
    
    provide adequate protection for the job and all persons3.
    
    reduce losses from damage to equipment and property.
 The purpose will be achieved by the implementation of the contents of the Principals
Safety Policy and General Policies & Procedures and of all relevant PNG laws and
statutory requirements as well as the other documents, which from time to time may be
incorporated herein.Copies of the LihirSafe Manual and the Principal Policies & Procedures Manual will be
made available to the Contractor, before any work under the Contract is carried out.
 2.
    
    GENERAL RESPONSIBILITIES
 1.
    
    The Principal will provide leadership and direction to the Contractor
and will enforce site safety in all project areas.2.
    
    The Contractor shall accept that the Principal will have the right to
demand that safety and safe practices be employed and in the event of unsafe
practices being used demand that these be corrected in a reasonable time. If
corrections are not made the Principal may shut down the works without incurring
extra costs or extension of time to complete the work under the Contract.3.
    
    The prime responsibility for safety and accident prevention for the
Contract lies with the Contractor. Accident prevention and reduction of accident
costs are as much a part of the job as labour, material and equipment.4.
    
    The Contractor shall administer the safety programme to achieve
maximum employee and line management awareness and attention to safety. As well,
the Contractor shall complete and lodge the various reports identified within this
site safety plan. The Contractor shall attend as a minimum:
 
    
    Joint Safety Committee meetings
    
    Toolbox Safety meetings
    
    Other meetings or reviews called by the Principal.
 3.
    
    CONTRACTOR RESPONSIBILITIES
 3.1.
    
    GENERAL
 1.
    
    The accident record of an organization is only as good as its
management makes it. The Principal will have overall responsibility for ensuring
the effectiveness of the safety program for the work under the Contract but all
Contractors have a direct responsibility to implement the safety plan in their
area of responsibility.
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LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 2.
    
    The Contractor shall be accountable for the development of safe
standards of work in its area of responsibility.3.
    
    It is expected that the Joint Safety Council will develop
coordination of safety standards and accident procedures for work under the
Contract.4.
    
    The Contractor shall ensure that each employee is familiar with the
standards and rules. All employees will be inducted in the site safety plan and
standards upon commencement of their employment. The Contractor when allocating
work to employees, shall outline:
 
    
    the particular safety rules to be followed and safety equipment to
be used
    
    the reason and purpose for the safety rule
    
    the job hazards and how to avoid them.
 3.2.
    
    NEW EMPLOYEE SAFETY INDUCTION PROGRAMME
 1.
    
    The Principal has established on Site a Central Training Facility
that shall provide amongst other things, a general site induction for all new
employees on the Site.2.
    
    This induction shall be a mandatory requirement for all new employees
and visitors to the site other than for day or overnight visitors.3.
    
    The nominated representative of the Principal shall conduct the
induction programme over a period of approximately four (4) hours, which shall
include employee registration, photographs and issue of ID badges.4.
    
    The employees induction shall include the distribution of the safety
manual, and employees shall be informed of:
    
    their responsibility to abide by all safety rules and standards
    
    the responsibility of all supervisors for their employees safety
    
    the need to use all protective devices and protective clothing
    
    the availability of medical/first aid and facilities
    
    The need to report hazards.
 3.3.
    
    PERSONAL PROTECTION
 The Contractor shall provide, at Contractors cost, all personal protection equipment
defined in the regulations. The Contractor shall ensure that this equipment is worn in
the defined areas.
 3.4.
    
    EMPLOYEE SAFETY AWARENESS
 The Contractor shall make certain that the correct equipment is used by its employees
and sub-contractors and is designed and maintained to be as free of accident hazards as
is practical. However, it is important that employees are properly trained to
recognize accident-producing situations and to avoid or control them.
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LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 3.5.
    
    EMERGENCIES
 Prior to the commencement of the work, the Contractor shall have a suitable written
plan to handle emergency situations that may arise on the job site. This plan shall be
posted in the work place and shall address the following as a minimum:
 
    
    safe shutdown of all work activities;
    
    detailed instructions for notification of the proper authorities
(including phone numbers, locations, and the like)
    
    listing of the individuals responsible to organize and control the
emergency conditions;
    
    communication plan to ensure all the site personnel is aware of
their correct response to an emergency.
 3.6.
    
    WORK UNDER THE CONTRACT ELIMINATION OF UNSAFE CONDITIONS
 1.
    
    It is important that the Contractors managers and supervisors set a
good example by the prompt elimination of all unsafe conditions. All employees
shall be encouraged to report hazards in their work place.2.
    
    The wide diversification of work and labour components will require
supervising personnel to be well aware of safety measures. In effect, each
supervisor shall necessarily become a practicing Safety Officer and be responsible
for eliminating hazards in his area of responsibility.3.
    
    From time to time as considered necessary by the Principal, Hazard
Reports may be issued to advise the Contractor of any matters that could be
potentially unsafe.4.
    
    The Contractor is required to inform its employees and the employees
of the subcontractors of the contents of any such Hazard Report. Full compliance
with the terms of any Hazard Report is mandatory.
 3.7.
    
    MEDICAL AND FIRST AID
 1.
    
    A medical centre has been established by the Principal on Site for
the treatment of all Site personnel.2.
    
    In addition, Contractor shall provide and maintain a basic first aid
kit for each work site and for each work party in accordance with its contractual
obligations and with the requirements of relevant PNG laws and regulations.
 This first aid kit shall be:
 
    
    kept under the charge of a certified first aide nominated by the
Contractor who has been advised to all employees of the Contractor;
    
    kept secure and apart from other items and distinctively marked;
    
    replenished as and when items become defective or exhausted;
 3.8.
    
    ACCIDENT REPORT AND INJURY RECORDS
 The Contractor shall report to the Principals Representative as
soon as practicable all accidents, incidents or occurrences resulting
in unplanned spillages having environmental consequences, personal
injuries or damage to property, arising out of or during the course
of operations of the Contractor or subcontractors of the Contractor, and when requested
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LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 shall furnish the Principals Representative with a copy of all
reports made by the Contractor to the Contractors insurer
 1.
    
    Every employee engaged on work under the Contract must receive first
aid for every injury, no matter how trivial. Each treatment will be recorded on
the Principals Incident Report Form and the original copy forwarded to the
Principal.1.
    
    The Contractor shall investigate all accidents or near misses with
help from the Principal and a report prepared.2.
    
    A review of these reports shall indicate areas that are either unsafe
or where unsafe acts are being performed. The Contractor shall implement
corrective action.3.
    
    Where a fatal, serious or potentially serious accident occurs no
person shall, except with the consent of the Principal or an Industrial Safety
Officer or for the purpose of:
 
    
    saving human life
    
    relieving human suffering
    
    rendering the site safe,
 move, interfere with or destroy any article or thing at the place of, or
connected with, the accident.
 Note: An Industrial Safety Officer is defined as a person appointed to be an
Industrial Safety Officer pursuant to the PNG Industrial Safety, Health and
Welfare Act.The Contractor shall comply with all mandatory and statutory requirements
regarding the reporting of accidents.
 3.9.
    
    MONTHLY ACCIDENTS REPORTS
 1.
    
    Contractor shall maintain and provide a report to the Principal by
the third day of the month covering the previous month with the following
information:2.
    
    total number of man-hours worked including subcontractors employed on
the work under the Contract as reported in the progress summary;3.
    
    total number and relevant details of lost-time injuries;4.
    
    total lost time for the month including any cases carried over from
previous month(s);5.
    
    Details of any potentially serious accidents or incidents even if not
involving lost time injury.
 3.10.
    
    SIX MONTHLY REPORT
 1.
    
    The Contractor shall maintain the information necessary for the
compilation of accident frequency rates, accident severity rates and accident mean
duration rates in accordance with the Australian Standard 1885 relative to the
class of work being performed by such employees.
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LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 2.
    
    The Contractor shall be responsible to comply with all other
reporting requirements of the PNG government.
 4.
    
    JOINT SAFETY COMMITTEE
 1.
    
    The Joint Safety Committee shall comprise senior representatives from
the Principals team and the Contractor, and, if required, representatives of
subcontractors.2.
    
    In keeping with the objective of having top management leadership,
the most senior representative available shall represent the Contractor at
committee meetings. Meetings will be chaired by the Principal.3.
    
    The Contractors nominated representative and their safety officer
shall attend each committee meeting. The Principal will convene the committee
meetings, which will be held on a monthly basis.4.
    
    The agenda will be prepared by the Principal and will include the
following items:
 
    
    review of disabling injuries and damage reports to equipment, and near
misses for the period;
    
    review of statistical analysis.
 5.
    
    TOOLBOX SAFETY MEETING
 In addition to the induction programme pursuant to Clause 3.2, the Contractor shall
hold safety meetings every week with its employees and report to the Principal via
minutes kept of this meeting.
 6.
    
    SPECIALISED SAFETY PROCEDURES
 The Contractor will be required to demonstrate that it is familiar with PNG Government
Acts and how it will comply with those requirements relating to covering their plant
and equipment and employees in the execution of the Contract.
 6.1.
    
    CONTRACTORS EQUIPMENT
 All equipment such as rigging gear, scaffolding, electrical, ladders, abrasive blasting
and explosive power tools used shall comply with government regulations and/or safe
practices. The Principal has authority to instruct the removal of any dangerous or
faulty equipment from the work under the Contract.
 6.2.
    
    PLANT AND EQUIPMENT
 If plant or equipment has any danger tags or other indication intended to warn workers
not to start plant, machinery or electrical equipment, then they must not be used or
started unless authorized by an approved person.
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LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 6.3.
    
    WORK SITES
 1.
    
    If it is necessary to provide protection around a work area, the
protection should be in the form of temporary handrails that conform to standard
heights and spacing. A slack rope is not acceptable as a means of isolating a
work site.2.
    
    Appropriate warning notices must be erected. This applies
particularly to work being carried out above or below ground level. Government
regulations must be applied during all excavations.
 6.4.
    
    EXPLOSIVES
 (Deleted)
 6.5.
    
    ROAD SAFETY
 All drivers must hold a current license for all types of vehicles and machinery that
they are to drive. Drivers shall be reminded frequently of the necessity to drive with
due care and attention, both within and outside the Site. Speed limits, road signs and
good driving practices must be observed at all times. Breaches shall be dealt with by
strict disciplinary measures.
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LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 APPENDIX E: ENVIRONMENTAL REQUIREMENTS  LIHIR PROJECT
 1.
    
    LEGISLATION AND CONTRACTS
 The Contractor shall carry out all activities in compliance with:
 
    
    Papua New Guinea (PNG) Legislation and Government requirements;
    
    Principals Environmental Management System, as well as management plans and
contracts prepared by the Principal.
 This includes:
 
    
    The PNG Environmental Planning Act
    
    The PNG Water Resources Act
    
    The Environmental Plan and Environmental Management Reports prepared by the
Principal and conditions of approval as set out by the PNG Government.
 2.
    
    REQUIREMENTS OF ALL CONTRACTORS AND STAFF
 2.1.
    
    PERSONNEL
 All personnel entering the Site shall attend an Induction Course conducted by the
Principal, which will include environmental requirements, sound work practices and
waste management, and a review of the Principals Environmental Management System. An
environmental handbook will be issued to each employee and must be followed by the
employee while on the Site.
 2.2.
    
    PRESERVATION AND CLEAN UP OF SITE
 In conducting the work under the Contract the Contractor will:
 
    
    minimize damage to flora and fauna;
    
    drive only on roadways approved by the Principal;
    
    clean up various work sites and stockpile areas including removal of surplus
material, disposal of refuse, decommissioning of temporary facilities and
restoring sites as directed by the Principal.
    
    monitor pollution to ensure compliance in their area of responsibility.
Overall monitoring of pollution for the entire site will be carried out by the
Principal.
 If the Contractor, after due notice from the Principal fails to remediate a pollution
event, the Principal may conduct or commission the remediation and the costs thereof
shall be due and payable by the Contractor to the Principal.
 2.3.
    
    NATIVE PLANTS AND ANIMALS
 The possession of any domestic or native animals at the camp or work sites is
prohibited. Hunting, disturbing, capturing, taking or destroying native plants or
animals within the camp work sites or adjacent areas is prohibited. Relocation of
disturbed flora or fauna will be directed and approved by the Principal.
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LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 2.4.
    
    RELICS, FOSSILS AND ARTEFACTS
 Relics, fossils and artefacts shall not be destroyed, damaged, defaced or removed
without the prior approval of the Principal. The discovery of any relics, fossils or
artefacts shall be reported to the Principal. All fossils, artefacts or objects of
antique or of anthropological interest or value, which may be found, shall be
immediately handed over to the custody of the Principal. They shall remain the
property of the local landowner and/or the Papua New Guinea Government.
 2.5.
    
    DISRUPTION TO VILLAGE LIFE
 To avoid disruption to traditional village life, the Contractor shall ensure that
contact between the non-Lihirian and local population is minimized. The Contractor
shall adhere to all site rules and camp conditions as directed by the Principal.
 3.
    
    REQUIREMENTS FOR SPECIFIC ACTIVITIES
 In addition to the above general requirements, specific requirements are demanded of
the Contractor relating to:
 
    
    the disturbance of vegetation, soils or watercourses
    
    the creation of dust or noise above background levels
    
    the use of fuels, oils, hazardous or toxic chemicals
    
    the creation of wastes of any kind
    
    the involvement with the operation of a seagoing vessel
 The requirements for these activities are summarized in the following sections and
detailed in the various environmental management reports for the Site.
 3.1.
    
    REHABILITATION, EROSION AND SEDIMENTATION CONTROL
 The Contractor shall abide by the requirements for procedures as set out in the
Rehabilitation, Sediment and Dust Control Program for the Site. This includes
procedures for:
 
    
    vegetation clearing
    
    topsoil stripping and stockpiling
    
    spoil stockpile management
    
    design and construction of access tracks and major roads
    
    cleared site management
    
    extractions within watercourses
    
    quarries
    
    revegetation
    
    power-line construction
    
    pipeline installation
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LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
   (LOGO)
 3.2.
    
    DUST MITIGATION
 All activities generating dust (e.g. land clearing, soil moving, drilling and blasting,
crushing and screening, vehicle movements, burning) shall abide by the requirements and
performance criteria of the Dust Suppression Program as set out in Chapter Nine of the
Rehabilitation, Sediment and Dust Control Program prepared for the Site. Neither
respirable particulate or dust fallout may exceed the limits nominated in the
environmental management reports. Necessary dust mitigation measures may include:
 
    
    watering dusty roads, stockpiles and bare areas
    
    using water mists, screening or collecting dust at crushing plants and other
fixed sites
    
    adhering to speed limits on roads
    
    covering trucks while in transit
 Waste oil must not be used as a dust suppressant.
 3.3.
    
    CHEMICAL MANAGEMENT
 The ordering procedure, storage, and usage of all oils, fuels, pesticides, toxic
chemicals and paints and any other hazardous or dangerous materials shall be in
compliance with the Chemical Management Program prepared for the Site.
No person shall deliver or receive any consignment of the above-mentioned goods to the
Island without approval from the Principal.
The Contractor or its subcontractor as appropriate shall also:
 
    
    prepare and implement a Spill Control and Prevention Plan (SCPP) from the
Principals Generic SCPP;
    
    prepare and implement whenever necessary a Spill Response Plan (SRP);
    
    nominate a representative responsible for coordinating the SCPP and SRP;
    
    forward copies of new MSDSs (Materials Safety Data Sheets) to the Principal;
    
    maintain a set of relevant MSDSs for storage area and/or point of use;
    
    remove from the Site any unused or waste chemical;
    
    provide and document training;
    
    provide sufficient spill control equipment.
 Use of chlorinated hydrocarbons other than in aerosol containers is not permitted
without prior approval from the Principal.
Oils, fuels, toxic chemicals and paints shall be stored in bunded or approved
demarcation areas in accordance with the appropriate standards and regulations.
Unused oils generated shall be collected in drums and disposed of in a manner approved
by the Principal.
All loading and unloading connections to fuel tanks shall be capable of being locked in
the OFF position. Fuel dispensing nozzles shall be self-closing.
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LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 Equipment using or storing fuel shall be routinely inspected by the Contractor for
leaks and unsafe conditions.


Storm water runoff from fuel storage and transfer operation areas shall be intercepted
and drain to an oil-retaining sump. Accumulated oil shall be removed and disposed in a
manner approved by the Principal.
All Contractors must report all fuel or hazardous substances spill greater than 25
litres to the Principal. Smaller spills of particularly hazardous chemicals must also
be reported. All steps shall be taken to clean up the spilled material, depending on
the type and quantity as directed by the Principal or in accordance with the
Contractors Spill Response Plan.
Land-based equipment shall not be refuelled, maintained or repaired in or immediately
adjacent to water bodies.
 3.4.
    
    WASTE MANAGEMENT
 In all aspects of design, construction and operation, the Contractor will abide by the
principles and procedures set out in the Waste Management Program for the Site. This
applies to wastes from activity sites including catering, grease traps, kitchens,
medical facilities, landscaping, scrubber plants, offices, and laboratories.
Requirements for disposal of wastes including contaminated soil, scrap metal, spent
solvents and oils, wood and timber, plastics, used filters/barriers, tyres, concrete,
paints, equipment and glass will be followed as set out in the Waste Management Program
for the Site.
The Principal will establish and manage a contractors surplus materials compound.
This will be available to the Contractor to recycle approved surplus materials and
shall operate as a salvage yard.
The Contractors waste materials shall be disposed of in a manner approved by the
Principal.
 3.5.
    
    NOISE MITIGATION
 The Contractor will be made aware of noise-sensitive locations (e.g. residences at
Londolovit, Putput and Kunaie). The Contractor must make every effort to minimize
noise emissions near these sensitive locations.
Construction and operating noise pollution shall be kept to a reasonable practical
minimum below the equivalent eight-hour dose of 85-dB (A). Where this is not
practical, protection for personnel or soundproofing shall be implemented after receipt
of approval from the Principal.
Periodic monitoring will be conducted by the Principal to ensure that the Contractor
complies with the noise mitigation requirements.
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LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 APPENDIX F: COMMUNITY RELATIONS POLICY
 PROCEDURES AND REGULATIONS REGARDING VISITS TO LIHIRIAN VILLAGES AND USE OF CUSTOMARY
LAND FOR RECREATIONAL PURPOSES BY CONTRACTORS, CONTRACTORS EMPLOYEES, SUB-CONTRACTORS
OR AGENTS.
 1.
    
    INTRODUCTION
 The work under Lihir Gold Project has impacted on 3% of the total landmass of Lihir
Island. This area is covered by a Special Mining Lease, Leases for Mining Purposes,
Mining Leases and Mining Easements provided for under the Mining Act of PNG.The Lihirian people own the balance of the land under Customary Law.
 2.
    
    REGULATIONS
 The permission of the Principals Representative must be obtained before any
Contractors personnel visit a Lihirian village or land outside the Principals lease
areas.
 2.1.
    
    THE FOLLOWING SHALL APPLY TO THE CONTRACTOR OR HIS PERSONNEL:
 
    
    You will also need to seek the permission of the relevant community leader or
landowner of the area you wish to visit. If visiting at the invitation of a
Lihirian person, try and make sure that person has the customary authority to
extend an invitation. Community Relations may be able to assist in this regard.
    
    Make sure the area you wish to visit is not a customary Sacred Site area and
therefore one where it would be inadvisable to visit. An Information Paper
outlining the definition and location of almost all-Sacred Sites on Lihir and
outlying islands is available from Community Relations on request. Similar
remarks apply to areas of land and small patches of sea where a customary Gor Gor
may be in use for one reason or another. Community Relations Department has
available an Information Paper on this subject as well, which is also available on
request.
    
    Above all, remember you are a visitor to these islands and Lihirian people
expect you to apply the same principles of politeness and respect that you would
expect from them should they visit your village, land, or country.
 2.2.
    
    INFORMATION PAPER REGARDING SACRED SITES ON LIHIR
 Introduction:The Principals Community Relations as a guide to the Principals project employees and
contractors have prepared this information paper on sacred sites on Lihir.It is important to identify traditional sacred sites on Lihir in order for employees to
observe them and avoid landowner frustrations if they are disrupted or entered without
authority.
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LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 Employees who take time off for a swim, picnic or spend some hours during their free
time on beaches on Lihir must abide by the project rules, understand Lihirian behaviour
and able to know and identify the traditional taboo sign and identify sacred sites and
public areas.Going out to villages in groups for a swim or for a picnic is not a problem to the
communities. The locals understand and appreciate that employees need to take some
time off to relax and enjoy a few hours of fun. It is a pride to the villagers when
people come to spend time fishing, swimming and relaxing at a location next to their
village. They develop a feeling that you enjoy the site and appreciate going there.The Community Relations Office has identified various sites designated sacred by
landowners. These sacred sites are prohibited areas that must be strictly observed.
More details of these sites are explained hereunder.
 2.3.
    
    SACRED SITES
 A sacred site is a broad description of minor areas, either stones, beaches reefs,
creeks, hausboi areas, etc. In this context, we will concentrate on sacred sites on
the coastline of Lihir. These include beaches; traditional fishing grounds (mok),
trees, hausboi, hausboi stone walls, graves or burial grounds and newly established
sacred sites recognized by Lihir custom.Some sacred sites look attractive and may be good fishing, swimming and picnic sites
for employees. The Principals Community Relations recognizes that it is important to
identify sacred sites in order to warn employees so they can strictly observe and keep
away from these locations. No public gathering, fishing and swimming is to take place
at these sacred sites.Most sacred areas on Lihir are restricted and only men are allowed to enter. Failure
to observe the customary taboo would result in a fine where the offender would have to
pay shell money to the landowners. With serious cases, he or she would have to present
a pig to the owner of any sacred site that is disturbed.
 2.4.
    
    TRADITIONAL SIGNS OF SACRED SITES
 Landowners indicate the sacredness of the area with a traditional taboo sign frequently
symbolized by the gor gorplant. The gor goris placed on stones, tree branches at the
beachfront and bamboo and tree poles pegged on the reef next to the hausboi or village.Other sacred sites on Lihir do not have the taboo (gor gor) sign as it is traditionally
observed by landowners from one generation to the next generation. Therefore, it is
best that visitors to village seek information from landowners prior to entering the
area.
 2.5.
    
    PRECAUTIONS
 
    
    Before going out to any village for a swim, picnic or for a village tour, it is
proper to seek permission from the community leaders and landowners of the
adjacent villages. A Lihirian guide is needed to avoid landowner suspicions. The
Principal Community Relations staff are available to assist in matters relating to
obtaining community approval.
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LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 
    
    Please question landowners or your guide to see if it is okay for your group to
walk on the beach, swim or spend some hours at the beach. Also question your
guide or landowners on whether women are allowed at that particular beach or area.
Trees, stones, stone walls, sand and fish and other marine resources located at
sacred sites are considered as sacred objects of the particular site. Your local
guide will identify these sacred sites.
    
    Note that a woman is not allowed to enter a hausboi on Lihir unless she is from
the immediate clan; sub clan or family that owns the hausboi. The beach front at
the Lihirian hausboi have been reserved as sacred areas.
 Here are certain areas (beaches) in the project lease areas where employees can go for
a swim without causing any disturbance to the locals. Refer to map where they are
highlighted.
 
    
    From Lakunbut bay to Londolovit wharf.
    
    Kapit beach  after the village has been relocated.
    
    Sanabiet beach (Malie Is).
    
    Lakakot Plantation  with approval from the resort owner.
 Permission to go to other locations on Lihir will have to be approved by the local
resident landowners. Requests to go for a swim or picnic at a location next to a
village must be arranged through the Principal Community Relations Manager, who should
also be notified if visits are arranged at the invitation of Lihirian workers.
 2.6.
    
    SOME OF THE BEST SWIMMING AND PICNIC SITES ARE LISTED HEREUNDER:
 Sanabiet Island on Malie is a good picnic and swimming location for project employees.
The community has given approval for project personnel to use part of the beach.
Visitors must stay within the designated area and respect the privacy of the villagers.Malie is an island community where the residents take precautions in utilizing all
their resources. Coconut palms, pandanus, trees, stones, and logs on the beachfront
are very useful to the landowners. Do not fell trees and branches. A seedling or
medium plant at Sanabiet and Malie has a very useful purpose to the landowners.Pekian Water Front at the mouth of Aostalam creek between Zuen and Lienbel is a
suitable location because it is away from the main villages of Zuen and Lienbel.The Aostolam creek is considered sacred by the landowners. It is believed that
Tonglou; the Nissal clan maselai inhabits certain places to which clan members have a
feeling of attachment or identity. The river, reef, stones, caves, cliffs, trees and
the bay are the clans sacred objects. Discourage large groups gathering at the
location and reduce to groups of less than six people at a time. Do not play games nor
cause other disturbance because your actions may upset the landowners. The location is
intended for those who would like to relax, swim and enjoy some hours of their time at
this remote location. A Sunday visit to the site is recommended because that is when
villagers are occupied with church services and sports.
Please respect everything at the location, the Lihir customs and traditions, women, men
and children, property, sacred sites and do not use abusive language to residents and
landowners.
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LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 APPENDIX G: PAYMENT SCHEDULE
 PAYMENT SCHEDULE
  EVENT OR MILESTONE
    
    PAYMENTUpon Practical Completion of
Separable Portion 1.
    
    The rate given in the Schedule of
Rates for Separable Portion 1 when
adjusted in accordance with the
Contract Conditions, less any
payments previously certified for
the Separable Portion.Upon satisfactory completion of the
first well and subsequent wells.
    
    The rates given in the Schedule of
Rates multiplied by the applicable
certified quantities for work
carried out and consumables used
when adjusted in accordance with the
Contract Conditions, less any
payments previously certified.Upon Practical Completion of
Separable Portion 2.
    
    The rate given in the Schedule of
Rates for Separable Portion 2 when
adjusted in accordance with the
Contract Conditions, less any
payments previously certified for
the Separable Portion.
  Page 24 of 27




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##### 



LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 APPENDIX H:
 DATES, PERIODS, LIQUIDATED DAMAGES AND BONUSES
 CONTRACT KEY DURATIONS
 CONTRACTORDURATIONITEM
    
    DESCRIPTION
    
    (DAYS)1.
    
    Mobilisation to date of
Spudding first well (Separable
Portion 1)
    
    the number of days to 10
September 2007 (the agreed date
of Spudding the first well)2.
    
    At rig release, rig down, move
to next well, rig up, and ready
to spud.
    
    
    33.
    
    Demobilisation from rig release
on last well, clean up and
remove all Constructional Plant
from Lihir (Separable Portion
2).
    
    
    21
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##### 



LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 APPENDIX H: DATES, PERIODS, LIQUIDATED DAMAGES AND BONUSES
 Separable
    
    
    
    Period forPortion and
    
    
    
    calculating DueItem
    
    Earliest Date of Possession of
    
    Date ofNumber
    
    Site or portion of Site.
    
    Completion
    
    Bonuses
    
    Liquidated Damages1
    
    At Date of Acceptance of
Tender or a later date, as
advised by the Principals
Representative.
    
    the number of days
to 10 September
2007 (the agreed
date of Spudding
the first well)Work under the 
Contract
    
    After Practical Completion of
Separable Portion 1 and then
drill/ core 5 geothermal
exploration wells
    
    180 days2
    
    On Rig Release from the last
well.
    
    21 days
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LIHIR GOLD LIMITED
Contract No LGL-MO-0107
Provision of Geothermal Coring ServicesPart II: Annexure B  Appendix to Special Conditions
    
    (LOGO)
 APPENDIX I: SCHEDULE OF RATES
  Page 27 of 27




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##### 



Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 CONTENTS1. CONSTRUCTION OF CONTRACT
    
    
    62. INTERPRETATION
    
    
    63. NATURE OF CONTRACT
    
    
    93.1. Performance and Payment
    
    
    93.2. Quantities
    
    
    93.3. Adjustment for Actual QuantitiesSchedule of Rates
    
    
    104. BILL OF QUANTITIES
    
    
    104.1. Purpose of the Bill of Quantities
    
    
    104.2. Pricing and Lodgement
    
    
    104.3. Errors in Pricing
    
    
    114.4. Errors in Bills of Quantities
    
    
    115. SECURITY, RETENTION MONEYS AND PERFORMANCE UNDERTAKINGS
    
    
    125.1. Purpose
    
    
    125.2. Provision of Security
    
    
    125.3. Form of Security
    
    
    125.4. Time for Lodgement of Securities
    
    
    125.5. Recourse to Retention Moneys and Conversion of Security
    
    
    125.6. Substitution of Security for Retention Moneys
    
    
    135.7.* Reduction of Security and Retention Moneys
    
    
    135.8. Release of Security
    
    
    135.9. Interest on Security and Retention Moneys
    
    
    135.10. Deed of Guarantee, undertaking and Substitution
    
    
    146. EVIDENCE OF CONTRACT
    
    
    146.1. Contract in Absence of Formal Instrument of Agreement
    
    
    146.2. Formal Instrument of Agreement
    
    
    147. SERVICE OF NOTICES
    
    
    158. CONTRACT DOCUMENTS
    
    
    158.1. Discrepancies
    
    
    158.2. Dimensions
    
    
    158.3. Supply of Documents by Principal
    
    
    168.4. Supply of Documents by Contractor
    
    
    168.5. Availability of Documents
    
    
    178.6. Confidential Information
    
    
    178.7. Media Releases
    
    
    179. ASSIGNMENT AND SUBCONTRACTING
    
    
    179.1. Assignment
    
    
    179.2. Subcontracting
    
    
    179.3. Contractors Responsibility
    
    
    18
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##### 



Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 10. SELECTED AND NOMINATED SUBCONTRACTORS
    
    
    1810.1. Definitions
    
    
    1810.2. Selected Subcontract
    
    
    1910.3. Nominated Subcontract
    
    
    1910.4. Provisions Applying Generally to Selected and Nominated Subcontract Work
    
    
    2010.5.* Direct Payment of Nominated Subcontractor
    
    
    2110.6. Termination of Nominated Subcontract
    
    
    2111. PROVISIONAL SUMS
    
    
    2112. LATENT CONDITIONS
    
    
    2212.1. Definition
    
    
    2212.2. Notification
    
    
    2212.3. Extension of Time and Cost
    
    
    2312.4. Time Bar
    
    
    2313. PATENTS, COPYRIGHT AND OTHER INTELLECTUAL PROPERTY RIGHTS
    
    
    2314. STATUTORY REQUIREMENTS
    
    
    2414.1. Complying with Statutory Requirements
    
    
    2414.2. Payment Where There is No Variation
    
    
    2414.3. Notices and Fees
    
    
    2514.4. Documents Evidencing Approvals of Authorities
    
    
    2515. PROTECTION OF PEOPLE AND PROPERTY
    
    
    2516. CARE OF THE WORK AND REINSTATEMENT OF DAMAGE
    
    
    2616.1. Care of the Work Under the Contract
    
    
    2616.2. Reinstatement
    
    
    2616.3. Excepted Risks
    
    
    2617. DAMAGE TO PERSONS AND PROPERTY OTHER THAN THE WORKS
    
    
    2717.1. Indemnity by Contractor
    
    
    2717.2. Indemnity by the Principal
    
    
    2818. INSURANCE OF THE WORKS
    
    
    2819. PUBLIC LIABILITY INSURANCE
    
    
    2920. INSURANCE OF EMPLOYEES
    
    
    2921. INSPECTION AND PROVISIONS OF INSURANCE POLICIES
    
    
    3021.1. Proof of Insurance
    
    
    3021.2. Failure to Produce Proof of Insurance
    
    
    3021.3. Notices from or to the Insurer
    
    
    3021.4. Notices of Potential Claims
    
    
    3121.5. Settlement of Claims
    
    
    3121.6. Cross Liability
    
    
    31
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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 22. CLERK OF WORKS AND INSPECTORS
    
    
    3123. SUPERINTENDENT
    
    
    3224. SUPERINTENDENTS REPRESENTATIVE
    
    
    3225. CONTRACTORS REPRESENTATIVE
    
    
    3226. CONTROL OF CONTRACTORS EMPLOYEES AND SUBCONTRACTORS
    
    
    3327. SITE
    
    
    3327.1. Possession of Site
    
    
    3327.2. Access for the Principal and Others
    
    
    3427.3. Delivery of Materials to and Work on Site Before Possession
    
    
    3427.4. Use of Site by Contractor
    
    
    3427.5. Finding of Minerals, Fossils and Relics
    
    
    3428. SETTING OUT THE WORKS
    
    
    3528.1. Setting Out
    
    
    3528.2. Care of Survey Marks
    
    
    3528.3. Errors in Setting Out
    
    
    3528.4. Survey Mark Defined
    
    
    3529. MATERIALS, LABOUR AND CONSTRUCTIONAL PLANT
    
    
    3629.1. Provision of Materials, Labour and Constructional Plant
    
    
    3629.2. Removal of Materials and Constructional Plant
    
    
    3629.3. Manufacture and Supply of Materials
    
    
    3630. MATERIALS AND WORK
    
    
    3630.1. Quality of Materials and Work
    
    
    3630.2.* Quality Assurance
    
    
    3630.3. Defective Materials or Work
    
    
    3730.4. Variations due to Defective Materials or Work
    
    
    3730.5. Acceptance of Defective Material or Work
    
    
    3730.6. Generally
    
    
    3831. EXAMINATION AND TESTING
    
    
    3831.1. Superintendent May Order Tests
    
    
    3831.2. Covering Up of Work
    
    
    3831.3. Who Conducts Tests
    
    
    3831.4. Notice of Tests
    
    
    3931.5. Procedure if Tests Delayed
    
    
    3931.6. Results of Tests
    
    
    3931.7. Costs of Testing
    
    
    3931.8. Access for Testing
    
    
    3932. WORKING HOURS
    
    
    40
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##### 



Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 33. PROGRESS AND PROGRAMMING OF THE WORKS
    
    
    4033.1. Rate of Progress
    
    
    4033.2. Construction Program
    
    
    4034. SUSPENSION OF THE WORKS
    
    
    4134.1. Suspension by Superintendent
    
    
    4134.2. Suspension by Contractor
    
    
    4134.3. Recommencement of Work
    
    
    4134.4. Cost of Suspension
    
    
    4234.5. Effect of Suspension
    
    
    4235. TIMES FOR COMMENCEMENT AND PRACTICAL COMPLETION
    
    
    4235.1. Time for Commencement of Work on the Site
    
    
    4235.2. Time for Practical Completion
    
    
    4235.3. Separable Portions
    
    
    4235.4. Use of Partly Completed Works
    
    
    4335.5. Extension of Time for Practical Completion
    
    
    4335.6. Liquidated Damages for Delay in Reaching Practical Completion
    
    
    4535.7.* Limit on Liquidated Damages
    
    
    4535.8.* Bonus for Early Practical Completion
    
    
    4636. DELAY OR DISRUPTION COSTS
    
    
    4637. DEFECTS LIABILITY
    
    
    4638. CLEANING UP
    
    
    4739. URGENT PROTECTION
    
    
    4740. VARIATIONS
    
    
    4740.1. Variations to the Work
    
    
    4740.2. Proposed Variations
    
    
    4840.3. Pricing the Variation
    
    
    4840.4. Variations for the Convenience of the Contractor
    
    
    4840.5. Valuation
    
    
    4941. DAYWORK
    
    
    5042. CERTIFICATES AND PAYMENTS
    
    
    5042.1. Payment Claims, Certificates, Calculations and Time for Payment
    
    
    5042.2. Correction of Payment Certificates
    
    
    5242.3. Retention Moneys
    
    
    5242.4. Unfixed Plant and Materials
    
    
    5242.5. Certificate of Practical Completion
    
    
    5342.6. Effect of Certificates
    
    
    5342.7. Final Payment Claim
    
    
    5342.8. Final Certificate
    
    
    5342.9. Interest on Overdue Payments
    
    
    54
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##### 



Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 2.10. Set Offs by the Principal
    
    
    5442.11. Recourse for Unpaid Moneys
    
    
    5443. PAYMENT OF WORKERS AND SUBCONTRACTORS
    
    
    5544. DEFAULT OR INSOLVENCY
    
    
    5644.1. Preservation of Other Rights
    
    
    5644.2. Default by the Contractor
    
    
    5644.3. Requirements of a Notice by the Principal to Show Cause
    
    
    5644.4. Rights of the Principal
    
    
    5744.5. Procedure when the Principal Takes Over Work
    
    
    5744.6. Adjustment on Completion of the Work Taken Out of the Hands of the Contractor
    
    
    5844.7. Default of the Principal
    
    
    5844.8. Requirements of a Notice by the Contractor to Show Cause
    
    
    5944.9. Rights of the Contractor
    
    
    5944.10. Rights of the Parties on Termination
    
    
    5944.11. Insolvency
    
    
    5945. *TERMINATION BY FRUSTRATION
    
    
    6046. TIME FOR NOTIFICATION OF CLAIMS
    
    
    6146.1. Contractors Prescribed Notice
    
    
    6146.2. Time for Disputing Superintendents Direction
    
    
    6247. DISPUTE RESOLUTION
    
    
    6247.1. Notice of Dispute
    
    
    6247.2. Further Steps Required Before Proceedings
    
    
    6247.3. Arbitration
    
    
    6347.4. Summary or Urgent Reliefs
    
    
    6348. WAIVER OF CONDITIONS
    
    
    64
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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 
 
  1.
    
    CONSTRUCTION OF CONTRACTThe law governing the Contract, its interpretation, any agreement to arbitrate and the
conduct of any arbitration or litigation, is the law of the State or Territory stated
in the Annexure.Unless otherwise provided, prices are in Australian currency and payments shall be made
in Australian currency at the place stated in the Annexure.Communications between the Principal, the Superintendent and the Contractor shall be in
the English language.Measurements of physical quantities shall be in Australian legal units of measurement
within the meaning of the National Measurement Act 1960, as amended from time to time.Where provisions in the General Conditions of Contract are expressed to be alternatives
and the Contract fails to state which alternative applies, the first alternative shall
apply.2.
    
    INTERPRETATIONIn the Contract, except where the context otherwise requiresBill of Quantities means a document named therein as a Bill of Quantities issued to
tenderers by or on behalf of the Principal, stating estimated quantities of work to be
carried out;Constructional Plant means appliances and things used in the execution of the work
under the Contract but not forming part of the Works;Contract means the agreement between the Principal and the Contractor;Contract Sum means
 (a)
    
    where the Principal accepted a lump sum, the lump sum;(b)
    
    where the Principal accepted rates, the sum ascertained by
calculating the products of the rates and the corresponding quantities in the Bill
of Quantities or Schedule of Rates;


Page 6 of 64




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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 (c)
    
    where the Principal accepted a lump sum and rates, the aggregate of
the sums referred to in paragraphs (a) and (b), including provisional sums but
excluding any additions or deductions which may be required to be made under the
Contract;
 Contractor
 Date of Acceptance of Tender
  Date for Practical Completion
 (a)
    
    where the Annexure provides a date for Practical Completion, the
date;(b)
    
    where the Annexure provides a period of time for Practical
Completion, the last day of the period, but if any extension of time for Practical
Completion is granted by the Superintendent or allowed in any arbitration or
litigation, it means the date resulting therefrom;
 Date of Practical Completion
 (a)
    
    the date certified by the Superintendent in a Certificate of
Practical Completion issued pursuant to Clause 42.5, to be the date upon which
Practical Completion was reached; or(b)
    
    where another date is determined in any arbitration or litigation as
the date upon which Practical Completion was reached, that other date;
 day
 Drawings
 month
 person
 Practical Completion
 (a)
    
    the Works are complete except for minor omissions and minor defects
 (i)
    
    which do not prevent the Works from being reasonably
capable of being used for their intended purpose; and


Page 7 of 64




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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 (ii)
    
    which the Superintendent determines the Contractor has
reasonable grounds for not promptly rectifying; and(iii)
    
    rectification of which will not prejudice the convenient
use of the Works; and
 (b)
    
    those tests which are required by the Contract to be carried out and
passed before the Works reach Practical Completion have been carried out and
passed; and(c)
    
    documents and other information required under the Contract which, in
the opinion of the Superintendent, are essential for the use, operation and
maintenance of the Works have been supplied;
 Priced Bill of Quantities
 Principal
 provisional sum
 Schedule of Rates
 Separable Portion
 Site
 Specification
 Superintendent
 Superintendents Representative
 Temporary Works


Page 8 of 64




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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 work under the Contract
 Works
     3.
    
    NATURE OF CONTRACT3.1.
    
    PERFORMANCE AND PAYMENTThe Contractor shall execute and complete the work under the Contract.The Principal shall pay the Contractor
 (a)
    
    for work for which the Principal accepted a lump sum, the lump sum;(b)
    
    for work for which the Principal accepted rates, the sum ascertained
by multiplying the measured quantity of each section or item of work actually
carried out under the Contract by the rate accepted by the Principal for the
section or item,adjusted by any additions or deductions made pursuant to the Contract.
 3.2.
    
    QUANTITIESQuantities in a Bill of Quantities or Schedule of Rates are estimated quantities only.A direction shall not be required to be given by the Superintendent by reason of the
actual quantity of an item required to perform the Contract being greater or less than
the quantity shown in the Bill of Quantities or Schedule of Rates.


Page 9 of 64




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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 3.3.
    
    ADJUSTMENT FOR ACTUAL QUANTITIESSCHEDULE OF RATESWhere otherwise than by reason of a direction of the Superintendent to vary the work
under the Contract, the actual quantity of an item required to perform the Contract is
greater or less than the quantity shown in the Schedule of Rates
 (a)
    
    where the Principal accepted a lump sum for the item, the difference
shall be valued under Clause 40.5 as if it were varied work directed by the
Superintendent as a variation;(b)
    
    where the Principal accepted a rate for the item the rate shall apply
to the greater or lesser quantities provided that where limits of accuracy are
stated in the Annexure the rate shall apply to the greater or lesser quantities
within the limits and quantities outside the limits shall be valued under Clause
40.5 as if they were varied work directed by the Superintendent as a variation.
  4.
    
    BILL OF QUANTITIES4.1.
    
    PURPOSE OF THE BILL OF QUANTITIESAlternative 1A Bill of Quantities forms part of the Contract only to the extent provided in the Contract.Alternative 2A Bill of Quantities shall not form part of the Contract.Alternative 3A Bill of Quantities forms part of the Specification.4.2.
    
    PRICING AND LODGEMENTWhere there is a Bill of Quantities:
 (a)
    
    all items included in the Bill of Quantities shall be priced and
extended by the Contractor and the prices as extended shall, on addition, equal
the sum accepted by the Principal for the execution of the whole of the work to
which the Bill of Quantities relates,(b)
    
    the Contractor shall lodge the Bill of Quantities so priced and
extended with the Superintendent before the expiration of the time for lodgement
stated in the Annexure or such further time as may be directed by the
Superintendent from time to time;


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 (c)
    
    notwithstanding any other provision of the Contract, the Contractor
shall not be entitled to payment until the Contractor has lodged the Bill of
Quantities so priced and extended.
 4.3.
    
    ERRORS IN PRICINGAny errors in extension or addition, or both, or correction of incorrect or
inconsistent rates or prices (including the insertion of rates or prices wrongly
omitted and the deletion of rates or prices wrongly included) discovered by the
Principal or the Contractor in the Priced Bill of Quantities shall be notified to the
Superintendent in writing by the party making the discovery and corrected in a manner
agreed between the Contractor and the Superintendent or, in the event of failure to
agree, as determined by the Superintendent so that the total of all items in the Priced
Bill of Quantities continues to equal the sum accepted by the Principal for the
execution of the whole of the work to which the Bill of Quantities relates.4.4.
    
    ERRORS IN BILLS OF QUANTITIESIf the Bill of Quantities is in error in that it
 (a)
    
    contains an incorrect quantity in relation to any item included
therein, or(b)
    
    contains an item which should not have been included therein; or(c)
    
    omits an item which should have been included therein;
  (i)
    
    in the case of Clause 4.4(a) where the item is deficient
in quantity or in the case of Clause 4.4(c)upon application in writing to
the Superintendent by the Contractor; and(ii)
    
    in the case of Clause 4.4(a) where the item is excessive
in quantity or in the case of Clause 4.4(b)upon notification in writing to
the Contractor by the Superintendent,


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 5.
    
    SECURITY, RETENTION MONEYS AND PERFORMANCE UNDERTAKINGS5.1.
    
    PURPOSESecurity, retention moneys and performance undertakings are for the purpose of ensuring
the due and proper performance of the Contract.5.2.
    
    PROVISION OF SECURITYIf it is provided in the Annexure that a party shall provide security then the party
shall provide security in the amount stated in the Annexure and in accordance with this
Clause.5.3.
    
    FORM OF SECURITYThe security shall be in the form of cash, bonds or inscribed stock issued by the
Australian Government or the Government of a State or Territory of Australia, interest
bearing deposit in a trading bank carrying on business in Australia, an approved
unconditional undertaking given by an approved financial institution or insurance
company, or other form approved by the party having the benefit of the security.The party having the benefit of the security shall have a discretion to approve or
disapprove of the form of an unconditional undertaking and the financial institution or
insurance company giving it or other form of security offered. The form of
unconditional undertaking attached to these General Conditions is approvedIf the security is not transferable by delivery, it shall be accompanied by an executed
transfer or such other documentation as is necessary to effect a transfer of the
security. The costs (including all stamp duty or other taxes) of and incidental to the
transfer and retransfer, shall be borne by the party providing the security.5.4.
    
    TIME FOR LODGEMENT OF SECURITIESSecurity shall be lodged within 28 days of the Date of Acceptance of Tender.5.5.
    
    RECOURSE TO RETENTION MONEYS AND CONVERSION OF SECURITYA party may have recourse to retention moneys and/or cash security and/or may convert
into money security that does not consist of money where
 (a)
    
    the party has become entitled to exercise a right under the Contract
in respect of the retention moneys and/or security; and(b)
    
    the party has given the other party notice in writing for the period
stated in the Annexure, or if no period is stated, five days of the partys
intention to have recourse to the retention moneys and/or cash security and/or to
convert the security; and(c)
    
    the period stated in the Annexure or if no period is stated, five
days has or have elapsed since the notice was given.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 
 5.6.
    
    SUBSTITUTION OF SECURITY FOR RETENTION MONEYSThe Contractor shall be at liberty at any time to provide in lieu of retention moneys,
security in any of the forms permitted in Clause 5.3. To the extent that such security
is provided, the Principal shall not deduct retention moneys and shall forthwith
release retention moneys.5.7.
    
    *REDUCTION OF SECURITY AND RETENTION MONEYSUpon issue of the Certificate of Practical Completion, the Principals entitlement to
security and retention moneys shall be reduced to the percentage thereof stated in the
Annexure or, if no percentage is stated, to 50 per cent thereof.Subject to the first paragraph of Clause 5.7, if in the opinion of the Superintendent
it is reasonable to further reduce the Principals entitlement to security and
retention moneys, that entitlement shall be reduced to the amount which the
Superintendent determines to be reasonable.The Principal shall, within 14 days of the Superintendent making such a determination
release security and retention moneys in excess of the entitlement.5.8.
    
    RELEASE OF SECURITYIf the Contractor has provided additional security pursuant to Clause 42.4, the
Principal shall release that additional security within 14 days of the incorporation
into the Works of the unfixed plant or materials in respect of which the additional
security was furnished.If the Principal has provided security, then when the Contractor has been paid all
moneys finally due to the Contractor under the Contract or a Separable Portion, the
Contractor shall release the security lodged by the Principal in respect of the
Contract or the Separable Portion, as the case may be.If the Contractor has provided security, then the Principal shall release it when
required by Clause 42.8.5.9.
    
    INTEREST ON SECURITY AND RETENTION MONEYSAlternative 1A party holding retention moneys and/or cash security shall forthwith deposit the
moneys in an interest bearing account in a bank. That party shall nominate the bank and
the type of account. The account shall be in the joint names of the Principal and the
Contractor and shall be one from which moneys can only be drawn with the signatures of
two persons, one appointed by each of the Principal and the Contractor. The moneys
shall be held until the Principal or the Contractor is entitled to receive them.Interest earned on security lodged by the Contractor and on retention moneys belongs to
the Contractor. Interest earned on security lodged by the Principal belongs to the
Principal.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 Upon the Principal or the Contractor becoming entitled to receive any moneys, including
interest in the account, the other party shall forthwith have that partys appointee
sign all documentation necessary to withdraw the moneys and shall give the signed
documentation to the other party.Alternative 2
A party holding retention moneys or cash security shall own any interest earned on the
retention moneys or security. Except where retention moneys or cash security are held
by a government department or agency or a municipal, public or statutory authority,
retention moneys or cash security shall be held in trust by the party holding them for
the other party until the Principal or the Contractor is entitled to receive them.5.10.
    
    DEED OF GUARANTEE, UNDERTAKING AND SUBSTITUTIONWhere
 (a)
    
    a party is a corporation that is related to or is a subsidiary of
another corporation as defined in the Corporations Law as amended from time to
time; and(b)
    
    the Principal has included in the tender documents a form of Deed of
Guarantee, Undertaking and Substitution;
 that party shall, if requested by the other party in writing within 7 days after the
Date of Acceptance of Tender lodge with the other party within 14 days after that
request having been made a Deed of Guarantee, Undertaking and Substitution in the form
included in the tender documents duly executed by the first party and that other
corporation for the performance of the obligations and the discharge of the liabilities
of the first party under the Contract.For the purpose of Clause 5.10, the terms corporation and subsidiary have the
meanings defined in the Corporations Law.6.
    
    EVIDENCE OF CONTRACT6.1.
    
    CONTRACT IN ABSENCE OF FORMAL INSTRUMENT OF AGREEMENTUnless a Formal Instrument of Agreement is executed by the parties, the agreement in
writing between the parties for the execution of the work under the Contract, including
documents or parts of documents to which reference may properly be made to ascertain
the rights and obligations of the parties, shall evidence the Contract.6.2.
    
    FORMAL INSTRUMENT OF AGREEMENTIf the conditions of tender require a Formal Instrument of Agreement, the Principal
shall prepare in duplicate a Formal Instrument of Agreement and shall, within 28 days
after the Date of Acceptance of Tender, forward it to the Contractor with a request
that it be executed.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 Within 14 days after being requested in writing by the Principal so to do, the
Contractor shall execute both copies of the Formal Instrument of Agreement in the
manner directed in writing by the Principal and return them to the Principal.Within 14 days after receipt from the Contractor of the two copies of the Formal
Instrument of Agreement duly executed by the Contractor, the Principal shall execute
both copies, have them stamped (unless they are exempt from duty) and forward one copy
to the Contractor.The Superintendent may extend the periods under Clause 6.2 by notice in writing to the
parties.The Principal shall bear the cost of any stamp duty payable on the Contract.7.
    
    SERVICE OF NOTICESA notice shall be deemed to have been given when it is received by the person to whom
it is addressed or is delivered to the address of that person stated in the Contract or
last communicated in writing by that person to the person giving the notice, whichever
is the earlier.The Principal, the Contractor and the Superintendent shall each notify the others of a
change of address.Without limiting the generality of notice, it includes a document.8.
    
    CONTRACT DOCUMENTS8.1.
    
    DISCREPANCIESThe several documents forming the Contract are to be taken as mutually explanatory of
one another. If either party discovers any ambiguity or discrepancy in any document
prepared for the purpose of executing the work under the Contract, that party shall
notify the Superintendent in writing of the ambiguity or discrepancy. In the event of
an ambiguity or discrepancy being discovered and brought to the attention of the
Superintendent, or discovered by the Superintendent, the Superintendent shall direct
the Contractor as to the interpretation to be followed by the Contractor in carrying
out the work.If the direction causes the Contractor to incur more or less cost than the Contractor
could reasonably have anticipated at the time of tendering, the difference shall be
valued under Clause 40.5.8.2.
    
    DIMENSIONSWhere any discrepancy exists between figured and scaled dimensions, the figure
dimensions shall prevail.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 8.3.
    
    SUPPLY OF DOCUMENTS BY PRINCIPALThe Principal shall supply to the Contractor the number of copies stated in the
Annexure, or if no number is stated, then 5 copies of the Drawings, Specification, Bill
of Quantities (if any) and other documents required by the Contract to be supplied to
the Contractor by the Principal.Documents supplied to the Contractor by the Principal shall remain the property of the
Principal and shall be returned by the Contractor to the Principal on demand in
writing. The documents shall not, without the prior written approval of the Principal,
be used, copied or reproduced for any purpose other than the execution of the work
under the Contract.8.4.
    
    SUPPLY OF DOCUMENTS BY CONTRACTORIf the Contract requires the Contractor to supply documents, the Contractor shall
supply the number of copies stated in the Annexure or, if no number is stated, 5
copies.If the Contractor submits documents to the Superintendent, then
 (a)
    
    the Superintendent shall not be bound to check the documents for
errors, omissions or compliance with the requirements of the Contract(b)
    
    notwithstanding the provisions of Clause 23, the Superintendents
approval shall not relieve the Contractor from responsibility for the Contractors
errors or omissions or compliance with the requirements of the Contract;(c)
    
    if the Contract provides that the Contractor must obtain the
Superintendents direction whether documents are suitable or are not suitable then
within the time stated in the Annexure (or if no time is stated then within 14
days) after receipt of the documents, the Superintendent shall notify the
Contractor that the documents are suitable or are not suitable;(d)
    
    if the Superintendent notifies the Contractor that the documents are
not suitable, the Superintendent shall give reasons why the documents are not
suitable and the Contractor shall submit new or amended documents for the
Superintendents direction under this Clause;(e)
    
    the Superintendent shall not reject documents which are in accordance
with the requirements of the Contract.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 8.5.
    
    AVAILABILITY OF DOCUMENTSWhilst work under the Contract is being performed, one complete set of Drawings,
Specification and other written information supplied by the Principal, the
Superintendent and the Contractor shall be kept by the Contractor at the Site or other
location approved in writing by the Principal and shall be available at all times for
reference by the Principal, the Superintendent and any persons nominated in writing by
either of them.During the manufacture or assembly of any significant part of the work under the
Contract away from the part of the Site where the Works are to be constructed, a set of
the drawings and written information relevant to that part of the work shall be kept by
the Contractor at the place of manufacture or assembly and shall be available for
reference by the Principal, the Superintendent and any person nominated in writing by
either of them.8.6.
    
    CONFIDENTIAL INFORMATIONDrawings, specifications and other information, samples, models, patterns and the like
supplied by either the Contractor or the Principal and marked or otherwise identified
as confidential, shall be regarded as confidential and shall not be disclosed to a
third party except with the prior agreement of the other party to the Contract.If required in writing by a party, the other party shall enter into a separate
agreement not to disclose to anyone else any confidential matter even after the issue
of the Final Certificate pursuant to Clause 42.8 or the earlier termination of the
Contract.8.7.
    
    MEDIA RELEASESThe Contractor shall not issue any information, publication, document or article for
publication concerning the project in any media without prior approval of the
Principal, which approval shall not be unreasonably withheld. The Contractor shall
refer to the Principal any enquiries concerning the project from any media.9.
    
    ASSIGNMENT AND SUBCONTRACTING9.1.
    
    ASSIGNMENTNeither party shall, without the prior written approval of the other and except on such
reasonable terms and conditions as are determined in writing by the other, assign the
Contract or any payment or any other right or benefit or interest thereunder.9.2.
    
    SUBCONTRACTINGThe Contractor shall not without the written approval of the Superintendent, which
approval shall not be unreasonably withheld, subcontract or allow a subcontractor to
assign or subcontract work described in the Annexure.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 With a request for approval, the Contractor shall provide to the Superintendent
particulars in writing of the work to be subcontracted and the name and the address of
the proposed subcontractor.The Contractor shall provide to the Superintendent other information which the
Superintendent reasonably requests, including the proposed subcontract documents
without prices.Within 14 days after a request by the Contractor for approval, the Superintendent shall
advise the Contractor of approval or the reasons why approval is not given.Approval may be conditional upon the subcontract including
 (a)
    
    provision that the subcontractor shall not assign or subcontract
without the consent in writing of the Contractor;(b)
    
    provisions which may be reasonably necessary to enable the Contractor
to fulfil the Contractors obligations to the Principal.
 9.3.
    
    CONTRACTORS RESPONSIBILITYApproval to subcontract shall not relieve the Contractor from any liability or
obligation under the Contract. Except where the Contract otherwise provides, the
Contractor shall be liable to the Principal for the acts and omissions of
subcontractors and employees and agents of subcontractors as if they were acts or
omissions of the Contractor.10.
    
    SELECTED AND NOMINATED SUBCONTRACTORS10.1.
    
    DEFINITIONSIf the Contract provides that certain work or the supply of certain items shall be
subcontracted to a Selected or Nominated Subcontractor, the work or the supply of the
items is Selected Subcontract Work or Nominated Subcontract Work as the case may
be, and:Selected Subcontractor means a subcontractor identified in the Contractors tender
from a list of subcontractors provided by the Principal in the tender documents for
Selected Subcontract Work. The list may include one or more subcontractors.Nominated Subcontractor means
 (a)
    
    a subcontractor to whom the Contractor is directed by the
Superintendent to subcontract Nominated Subcontract Work; or(b)
    
    a subcontractor named in the Contract with whom the Principal has
entered into a prior contract for Nominated Subcontract Work, and in which prior
contract the subcontractor has consented to the assignment by the Principal of the
benefit of the prior contract, a copy of which is included in the tender
documents; or


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 (c)
    
    a subcontractor named in the Contract with whom the Principal has
entered into a prior contract for Nominated Subcontract Work, and in which prior
contract the subcontractor has consented to the novation of the prior contract by
the Principal pursuant to a deed of novation, a copy of which is included in the
tender documents
 Nominated Subcontract Work shall relate only to work or the supply of items for which
a Provisional Sum has been included in the Contract.10.2.
    
    SELECTED SUBCONTRACTIf the Contract includes Selected Subcontract Work, the Contractor shall subcontract
the Selected Subcontract Work to a Selected Subcontractor. If the tender documents
specify the terms and conditions upon which the subcontract is to be entered into, the
subcontract shall include those terms and conditions.10.3.
    
    NOMINATED SUBCONTRACTIf the Contract includes Nominated Subcontract Work, at such time as is necessary to
avoid delay to the Contractor, the Superintendent shall direct the Contractor to
subcontract the Nominated Subcontract Work to a Nominated Subcontractor.If the Contract provides that the Principal may assign to the Contractor the benefit of
a prior contract made between the Principal and a Nominated Subcontractor, the
Contractor shall when directed by the Superintendent, accept the assignment of that
prior contract.If the Contract provides that the Principal may novate to the Contractor a prior
contract made between the Principal and a Nominated Subcontractor in respect of
Nominated Subcontract Work, the Contractor shall when directed by the Superintendent,
execute a deed of novation of that prior contract in the form included in the tender
documents and unless the Contract otherwise provides the Contractor shall give the
Principal credit for payments made by the Principal to the Nominated Subcontractor in
respect of the Nominated Subcontract Work.The Contractor shall ensure that the provisions of the subcontract are severally set
out in the subcontract documents, so that the subcontract is fully expressed and
complete in itself and includes provisions
 (a)
    
    that in respect of the Nominated Subcontract Work, the Nominated
Subcontractor will undertake towards the Contractor obligations and liabilities
which will enable the Contractor to discharge the Contractors obligations and
liabilities to the Principal under the terms of the Contract;(b)
    
    that the Nominated Subcontractor will indemnify the Contractor
against loss resulting from any failure by the Nominated Subcontractor to perform
such obligations or fulfil such liabilities;(c)
    
    that the Nominated Subcontractor will indemnify the Contractor
against loss resulting from any negligence by the Nominated Subcontractor and the
Nominated


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 Subcontractors servants and agents and against any misuse by them of
any Constructional Plant or Temporary Works provided by the Contractor for the
purposes of the Contract;(d)
    
    that the Nominated Subcontractor will lodge security in a form
provided by Clause 5.3 and that security and retention moneys shall be calculated
on the same scale and on the same basis respectively as apply in the Contract;(e)
    
    equivalent to those in Clause 44.
   (i)
    
    the Contractor shall not be bound to discharge obligations and
liabilities under the Contract to the extent that the subcontract terms so
specified by the Superintendent are inconsistent with the discharge; and(ii)
    
    if the Contractor suffers loss arising out of the refusal of the
Nominated Subcontractor to accept such provisions, the Principal shall pay to the
Contractor the amount of loss which the Contractor could not reasonably avoid.
 10.4.
    
    PROVISIONS APPLYING GENERALLY TO SELECTED AND NOMINATED SUBCONTRACT WORKIf the Contractor is required by Clause 10 to enter into a subcontract, or to accept an
assignment or to execute a deed of novation, the Contractor shall proceed promptly to
do so and shall notify the Superintendent in writing as soon as the subcontract,
assignment or novation has been effected.With the consent of the Contractor, the Superintendent may direct the Contractor to
perform Selected or Nominated Subcontract Work.Notwithstanding Clause 16.2 if the Contractor is to be responsible to the Principal for
the design or suitability of Selected or Nominated Subcontract Work, as distinct from
the quality or workmanship, the responsibility shall be expressly stated in the
Contract and the Contractors liability for the design or suitability of the Selected
or Nominated Subcontract Work shall only be that which is expressly stated in the
Contract.Except as herein contained, and subject to any reasonable objection made by the
Contractor pursuant to this Clause


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 
 (i)
    
    the Principal shall have no liability to a Selected or Nominated
Subcontractor arising from the subcontract between the Contractor and the Selected
or Nominated Subcontractor; and(ii)
    
    the Principal shall not be liable to the Contractor for any act,
default or omission or breach of contract by a Selected or Nominated
Subcontractor, arising from the subcontract between the Contractor and the
Selected or Nominated Subcontractor.
 10.5.
    
    *DIRECT PAYMENT OF NOMINATED SUBCONTRACTORIn respect of Nominated Subcontract Work performed by a Nominated Subcontractor, the
Principal shall make payment directly to the Nominated Subcontractor. Except where the
Contractor has accepted an assignment of the benefit of a prior contract made between
the Principal and a Nominated Subcontractor
 (a)
    
    such payment shall be made on behalf of the Contractor; and(b)
    
    if the Contractor reasonably requests the Principal in writing not to
make a payment to the Nominated Subcontractor, the Principal shall withhold
payment but under no circumstances, including bankruptcy or winding up of the
Contractor, shall payment be made to the Contractor.
  10.6.
    
    TERMINATION OF NOMINATED SUBCONTRACTThe Contractor shall not unreasonably terminate a subcontract for Nominated Subcontract
Work and as early as possible the Contractor shall notify the Superintendent of the
Contractors intention to terminate and the reasons. If a Nominated Subcontractor
repudiates or abandons a subcontract or it is terminated, the Contractor shall
forthwith notify the Superintendent in writing and the Superintendent shall proceed
under Clause 10.3 to nominate a Nominated Subcontractor to complete the subcontract
work and Clause 11(b) shall apply.11.
    
    PROVISIONAL SUMSA provisional sum included in the Contract shall not itself be payable by the Principal
but where at the direction of the Superintendent the work or item to which the
provisional sum relates is performed or supplied by
 (a)
    
    the Contractor, the work or item shall be valued under Clause 40.5;(b)
    
    a subcontractor to the Contractor the Principal shall pay the
Contractor the amount payable by the Contractor to the subcontractor for the work
or item, disregarding any


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 damages payable by the Contractor to the subcontractor
or vice versa, plus the amount or percentage thereon for profit and attendance
stated in the Annexure or, where not so stated, as stated elsewhere in the
Contract; and(c)
    
    a Nominated Subcontractor pursuant to a prior contract made between
the Principal and a Nominated Subcontractor, the benefit of which has been
assigned to the Contractor, the Principal shall pay the Contractor the amount
stated in the Annexure or the percentage for profit and attendance stated in the
Annexure of the amount payable by the Principal to the Nominated Subcontractor for
the work or item or, where no amount or percentage is stated, as stated elsewhere
in the Contract, disregarding any damages payable by the Principal to the
Nominated Subcontractor or vice versa.
  12.
    
    LATENT CONDITIONS12.1.
    
    DEFINITIONLatent Conditions are
 (a)
    
    physical conditions on the Site or its surroundings, including
artificial things but excluding weather conditions, which differ materially from
the physical conditions which should reasonably have been anticipated by the
Contractor at the time of the Contractors tender if the Contractor had
 (i)
    
    examined all information made available in writing by the
Principal to the Contractor for the purpose of tendering; and(ii)
    
    examined all information relevant to the risks,
contingencies and other circumstances having an effect on the tender and
obtainable by the making of reasonable enquiries; and(iii)
    
    inspected the Site and its surroundings; and
 (b)
    
    any other conditions which the Contract specifies to be Latent
Conditions.
 12.2.
    
    NOTIFICATIONIf during the execution of the work under the Contract, the Contractor becomes aware of
a Latent Condition, the Contractor shall forthwith and where possible before the Latent
Condition is disturbed, give written notice thereof to the Superintendent.If required by the Superintendent, the Contractor shall provide to the Superintendent a
statement in writing specifying
 (a)
    
    the Latent Condition encountered and in what respects it differs
materially;


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 (b)
    
    the additional work and additional resources which the Contractor
estimates to be necessary to deal with the Latent Condition;(c)
    
    the time the Contractor anticipates will be required to deal with the
Latent Condition and the expected delay in achieving Practical Completion;(d)
    
    the Contractors estimate of the cost of the measures necessary to
deal with the Latent Condition; and(e)
    
    other details reasonably required by the Superintendent.
 12.3.
    
    EXTENSION OF TIME AND COSTDelay caused by a Latent Condition may justify an extension of time under Clause 35.If a Latent Condition causes the Contractor to
 (a)
    
    carry out additional work;(b)
    
    use additional Constructional Plant; or(c)
    
    incur extra cost (including but not limited to the cost of delay or
disruption),
  12.4.
    
    TIME BARIn making a valuation pursuant to Clause 12.3, regard shall not be had to the value of
additional work carried out, additional Constructional Plant used or extra cost
incurred more than 28 days before the date on which the Contractor gives the written
notice required by the first paragraph of Clause 12.2.13.
    
    PATENTS, COPYRIGHT AND OTHER INTELLECTUAL PROPERTY RIGHTSThe Principal warrants that unless otherwise provided in the Contract
 (a)
    
    design;(b)
    
    materials;(c)
    
    documents; and(d)
    
    methods of working,


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
  14.
    
    STATUTORY REQUIREMENTS14.1.
    
    COMPLYING WITH STATUTORY REQUIREMENTSThe Contractor shall comply with the requirements of
 (a)
    
    Acts of the Commonwealth;(b)
    
    Acts and Ordinances of the State or Territory in which the work under
the Contract or any part thereof is carried out;(c)
    
    Ordinances, regulations, by-laws, orders and proclamations under the
Acts and Ordinances;(d)
    
    persons acting in the exercise of statutory powers enabling them to
give directions affecting the work under the Contract.
 If a requirement is at variance with a provision of the Contract, as soon as the
Contractor discovers the variance the Contractor shall notify the Superintendent in
writing specifying the difference.If a requirement necessitates a change to the Works or so much of the Temporary Works
or method of working as may be specified in the Contract, the Superintendent shall
direct a variation under Clause 40.1.Except to the extent that the Contract provides for reimbursement in respect of a
requirement referred to in Clause 14.1 the Contractor shall bear the cost of complying
with the requirement, whether the requirement existed at the time of tendering or not.14.2.
    
    PAYMENT WHERE THERE IS NO VARIATIONIf a requirement does not necessitate a variation under Clause 40 but is
 (a)
    
    a change after the 28th day prior to the date of closing of tenders
in a requirement referred to in Clause 14.1(a), (b) or (c); or(b)
    
    a requirement referred to in Clause 14.1(d),


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 14.3.
    
    NOTICES AND FEESThe Contractor shall give the notices necessary to comply with the requirements
referred to in Clause 14.1.The Contractor shall pay any fees or charges necessary to comply with the requirements
referred to in Clause 14.1.If a requirement necessitates the provision or expansion of services of a municipal,
public or statutory authority in relation to the Works or the Temporary Works, the
Contractor shall pay any fee or charge payable to the authority for the services and to
the extent to which the services are not included in the work under the Contract, the
fee or charge shall be reimbursed by the Principal to the Contractor.If after the 14th day prior to the closing of tenders, there is required to be paid by
the Contractor to a municipal, public or statutory authority in relation to the Works
or the Temporary Works
 (a)
    
    an increase or decrease in a fee or charge, the difference shall be
valued under Clause 40.5; and(b)
    
    there is a new fee or charge, that fee or charge shall be reimbursed
by the Principal to the Contractor.
 14.4.
    
    DOCUMENTS EVIDENCING APPROVALS OF AUTHORITIESThe Contractor shall give the Principal copies of documents issued to the Contractor by
municipal, public or other statutory authorities in respect of the work under the
Contract and, in particular, any approvals of work.15.
    
    PROTECTION OF PEOPLE AND PROPERTYInsofar as compliance with the requirements of the Contract permits, the Contractor
shall
 (a)
    
    provide all things and take all measures necessary to protect people
and property;(b)
    
    avoid unnecessary interference with the passage of people and
vehicles;(c)
    
    prevent nuisance and unreasonable noise and disturbance.
 Without limiting the generality of the Contractors obligations, they include the
provision of barricades, guards, fencing, temporary roads, footpaths, warning signs,
lighting, watching,
traffic flagging, safety helmets and clothing, removal of obstructions and protection
of services.If the Contractor or the employees or agents of the Contractor damage property,
including but not limited to public utilities and services and property on or adjacent
to the Site, the


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 Contractor shall promptly make good the damage and pay any
compensation which the law requires the Contractor to pay.If the Contractor fails to comply with an obligation under Clause 15 the Principal may,
in addition to any other remedy, perform the obligation on the Contractors behalf and
the cost incurred by the Principal shall be a debt due from the Contractor to the
Principal.16.
    
    CARE OF THE WORK AND REINSTATEMENT OF DAMAGE16.1.
    
    CARE OF THE WORK UNDER THE CONTRACTFrom and including the earlier of the date of commencement of work under the Contract
and the date on which the Contractor is given possession of the Site to 4 p.m. on the
Date of Practical Completion of the Works, the Contractor shall be responsible for the
care of the work under the Contract.Without limiting the generality of the Contractors obligations, the Contractor shall
be responsible for the care of unfixed items the value of which has been included in a
payment certificate under Clause 42.1, things entrusted to the Contractor by the
Principal for the purpose of carrying out the work under the Contract, things brought
on the Site by subcontractors for that purpose, the Works, the Temporary Works and
Constructional Plant, and the Contractor shall provide the storage and protection
necessary to preserve these items and things, and the Works, the Temporary Works and
Constructional Plant.After 4 p.m. on the Date of Practical Completion the Contractor shall remain
responsible for the care of outstanding work and items to be removed from the Site by
the Contractor and shall be liable for damage occasioned by the Contractor in the
course of completing outstanding work or complying with obligations under Clauses 30.6,
31.1 and 37.16.2.
    
    REINSTATEMENTIf loss or damage (except loss or damage which is a direct consequence, without fault
or omission on the part of the Contractor, of an Excepted Risk defined in Clause 16.3)
occurs to anything while the Contractor is responsible for its care, the Contractor
shall at the Contractors own cost promptly make good the loss or damage.16.3.
    
    EXCEPTED RISKSThe Excepted Risks are
 (a)
    
    any negligent act or omission of the Principal, the Superintendent or
the employees, consultants or agents of the Principal;(b)
    
    any risk specifically excepted in the Contract;(c)
    
    war, invasion, act of foreign enemies, hostilities, (whether war be
declared or not), civil war, rebellion, revolution, insurrection or military or
usurped power, martial law or confiscation by order of any Government or public
authority;


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 (d)
    
    ionising radiations or contamination by radioactivity from any
nuclear fuel or from any nuclear waste from the combustion of nuclear fuel not
caused by the Contractor or the Contractors employees or agents;(e)
    
    use or occupation by the Principal or the employees or agents of the
Principal or other contractors to the Principal (not being employed by the
Contractor) or a Nominated Subcontractor engaged by the Principal pursuant to a
prior contract the benefit of which has been assigned to the Contractor pursuant
to the Contract) of any part of the Works or the Temporary Works;(f)
    
    defects in the design of the work under the Contract other than a
design provided by the Contractor.
 17.
    
    DAMAGE TO PERSONS AND PROPERTY OTHER THAN THE WORKS17.1.
    
    INDEMNITY BY CONTRACTORThe Contractor shall indemnify the Principal against
 (a)
    
    loss of or damage to property of the Principal, including existing
property in or upon which the work under the Contract is being carried out; and(b)
    
    claims by any person against the Principal in respect of personal
injury or death or loss of or damage to any property,
   (i)
    
    the extent that the liability of the Contractor is limited by another
provision of the Contract;(ii)
    
    exclude any other right of the Principal to be indemnified by the
Contractor;(iii)
    
    things for the care of which the Contractor is responsible under
Clause 16.1;(iv)
    
    damage which is the unavoidable result of the construction of the
Works in accordance with the Contract; and(v)
    
    claims in respect of the right of the Principal to construct the work
under the Contract on the Site.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 
 17.2.
    
    INDEMNITY BY THE PRINCIPALThe Principal shall indemnify the Contractor in respect of damage referred to in Clause
17.1(iv) and claims referred to in Clause 17.1(v).18.
    
    INSURANCE OF THE WORKSAlternative 1Before the Contractor commences work, the Contractor shall take out an insurance policy
covering all the things referred to in Clause 16.1 against loss or damage resulting
from any cause whatsoever until the Contractor ceases to be responsible for their care.Without limiting the generality of the obligation to insure, the policy shall cover the
Contractors liabilities under Clause 16.2 and things in storage off Site and in
transit to the Site.The insurance cover may exclude
 (a)
    
    the cost of making good fair wear and tear or gradual deterioration
but shall not exclude the loss or damage resulting therefrom;(b)
    
    the cost of making good faulty design, workmanship and materials but
shall not exclude the loss or damage resulting therefrom;(c)
    
    consequential loss of any kind, but shall not exclude loss of or
damage to the Works;(d)
    
    damages for delay in completing or for the failure to complete the
Works;(e)
    
    loss or damage resulting from ionising radiations or contamination by
radioactivity from any nuclear fuel or from any nuclear waste from the combustion
of nuclear fuel resulting from any cause;(f)
    
    loss or damage resulting from the Excepted Risks (b) and (c) in
Clause 16.3.
  (i)
    
    the Contract Sum;(ii)
    
    the amount stated in the Annexure to provide for costs of
demolition and removal of debris;(iii)
    
    the amount stated in the Annexure to cover fees of
consultants;(iv)
    
    the value stated in the Annexure of any materials or
things to be supplied by the Principal for the purposes of the work under
the Contract; and(v)
    
    the additional amount or percentage stated in the
Annexure of the total of the items referred to in sub-paragraphs (i) to (iv)
of this paragraph.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 
 The insurance policy shall be in the joint names of the Principal and the Contractor,
and shall cover the Principal, the Contractor and all subcontractors employed from time
to time in relation to the work under the Contract for their respective rights,
interests and liabilities and, unless otherwise specified elsewhere in the Contract,
shall be effected with an insurer and in terms both approved in writing by the
Principal which approvals shall not be unreasonably withheld. The policy shall be
maintained until the Contractor ceases to be responsible under Clause 16.1 for the care
of anything.Alternative 2On or before the Date of Acceptance of Tender, the Principal shall effect a policy of
insurance in relation to the work under the Contract in the terms of the policy or
proposed policy included in the documents on which the Contractor tendered. The policy
or proposed policy shall include the name of the insurer. The Principal shall maintain
the policy while ever the Contractor has an interest therein and the Principal shall
pay all premiums.19.
    
    PUBLIC LIABILITY INSURANCEAlternative 1Before the Contractor commences work, the Contractor shall take out a Public Liability
Policy of insurance in the joint names of the Principal and the Contractor which covers
the Principal, the Contractor, the Superintendent and all subcontractors employed from
time to time in relation to the work under the Contract for their respective rights and
interests and covers their liabilities to third parties. The policy shall also cover
the Contractors liability to the Principal and Principals liability to the Contractor
for loss of or damage to property (other than property required to be insured by Clause
18) and the death of or injury to any person (other than liability which is required by
law to be insured under a Workers Compensation Policy of insurance).The Public Liability Policy of insurance shall be for an amount in respect of any one
occurrence not less than the sum stated in the Annexure and, unless otherwise specified
elsewhere in the Contract, shall be effected with an insurer and in terms both approved
in writing by the Principal which approvals shall not be unreasonably withheld. The
policy shall be maintained until the Final Certificate is issued under Clause 42.8.Alternative 2.On or before the Date of Acceptance of Tender, the Principal shall effect in relation
to the work under the Contract a policy of insurance in the terms of the policy or
proposed policy included in the documents on which the Contractor tendered. The policy
or proposed policy shall include the name of the insurer. The Principal shall maintain
the policy while ever the Contractor has an interest therein and the Principal shall
pay all premiums.20.
    
    INSURANCE OF EMPLOYEESBefore commencing work the Contractor shall insure against liability for death of or
injury to persons employed by the Contractor including liability by statute and at
common law. The insurance cover shall be maintained until all work including remedial
work is completed.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 The insurance shall be extended to indemnify the Principal for the Principals
statutory liability to persons employed by the Contractor.The Contractor shall ensure that every subcontractor is similarly insured.21.
    
    INSPECTION AND PROVISIONS OF INSURANCE POLICIES21.1.
    
    PROOF OF INSURANCEBefore the Contractor commences work and whenever requested in writing by the other
party, a party liable to effect or maintain insurance shall produce evidence to the
satisfaction and approval of the other party of the insurance effected and maintained.The effecting of insurance shall not limit the liabilities or obligations of a party
under other provisions of the Contract.21.2.
    
    FAILURE TO PRODUCE PROOF OF INSURANCEIf, after being requested in writing by the other party so to do, a party fails to
produce evidence of compliance with insurance obligations under Clauses 18, 19 or 20 to
the satisfaction and approval of the other party, the other party may effect and
maintain the insurance and pay the premiums. The amount paid shall be a debt due from
the party in default to the other party. Where the defaulting party is the Contractor,
the Principal may refuse payment until evidence of compliance with insurance
obligations under Clauses 18, 19 and 20 is produced by the Contractor to the
satisfaction and approval of the Principal.The rights given by Clause 21.2 are in addition to any other right.21.3.
    
    NOTICES FROM OR TO THE INSURERThe party effecting insurance under Clause 18 or 19 shall ensure that each policy of
insurance contains provisions acceptable to the other party that will
 (a)
    
    require the insurer, whenever the insurer gives the Principal, the
Contractor or a subcontractor a notice of cancellation or other notice concerning
the policy at the same time to inform the other party in writing that the notice
has been given;(b)
    
    provide that a notice of claim given to the insurer by the Principal,
the Superintendent, the Contractor or a subcontractor shall be accepted by the
insurer as a notice of claim given by the Principal, the Superintendent, the
Contractor and the subcontractor; and(c)
    
    require the insurer, whenever the party fails to renew the policy or
to pay a premium, to give notice in writing thereof forthwith to the Principal and
the Contractor and prior to the insurer giving any notice of cancellation.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 
 21.4.
    
    NOTICES OF POTENTIAL CLAIMSThe Contractor shall, as soon as practicable, inform the Principal in writing of any
occurrence that may give rise to a claim under a policy of insurance required by Clause
18 or 19 and shall keep the Principal informed of subsequent developments concerning
the claim. The Contractor shall ensure that subcontractors in respect of their
operations similarly inform the Principal.Where a policy of insurance required by the Contract has been effected by the Principal
the Principal shall similarly inform the Contractor.21.5.
    
    SETTLEMENT OF CLAIMSUpon settlement of a claim under the insurance specified by Clause 18
 (a)
    
    to the extent that the work under the Contract needing reinstatement
has been the subject of a payment or allowance by the Principal to the Contractor,
if the Contractor has not completed reinstatement of that work, moneys received
shall, if requested by either party, be paid into a bank agreed upon by the
parties in an account in the joint names of the Contractor and the Principal. As
the Contractor proceeds to reinstate the loss or damage, the Superintendent shall
certify against the joint account for the cost of reinstatement; and(b)
    
    to the extent that the work to be reinstated has not been the subject
of a payment or allowance by the Principal to the Contractor, the Contractor shall
be entitled immediately to receive from moneys received, the amount of money so
paid in relation to any loss suffered by the Contractor relating to that work
under the Contract (including the supply of goods and materials on site whether or
not incorporated into the Works).
 21.6.
    
    CROSS LIABILITYAny insurance required to be effected by the Contractor in joint names in accordance
with the Contract shall include a cross-liability clause in which the insurer agrees to
waive all rights of subrogation or action against any of the persons comprising the
insured and for the purpose of which the insurer accepts the term insured as applying
to each of the persons comprising the insured as if a separate policy of insurance had
been issued to each of them (subject always to the overall sum insured not being
increased thereby).22.
    
    CLERK OF WORKS AND INSPECTORSThe Superintendent shall forthwith notify the Contractor in writing of the name of any
Clerk of Works or inspector appointed by the Principal or the Superintendent.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 23.
    
    SUPERINTENDENTThe Principal shall ensure that at all times there is a Superintendent and that in the
exercise of the functions of the Superintendent under the Contract, the Superintendent
 (a)
    
    acts honestly and fairly;(b)
    
    acts within the time prescribed under the Contract or where no time
is prescribed, within a reasonable time; and(c)
    
    arrives at a reasonable measure or value of work, quantities or time.
 If, pursuant to a provision of the Contract enabling the Superintendent to give
directions, the Superintendent gives a direction, the Contractor shall comply with the
direction.In Clause 23 direction includes agreement, approval, authorization, certificate,
decision, demand, determination, explanation, instruction, notice, order, permission,
rejection, request or requirement.Except where the Contract otherwise provides, a direction may be given orally but the
Superintendent shall as soon as practicable confirm it in writing.If the Contractor in writing requests the Superintendent to confirm an oral direction,
the Contractor shall not be bound to comply with the direction until the Superintendent
confirms it in writing.24.
    
    SUPERINTENDENTS REPRESENTATIVEThe Superintendent may from time to time appoint individuals to exercise any functions
of the Superintendent under the Contract but not more than one Superintendents
Representative shall be delegated the same function at the same time. The appointment
of a Superintendents Representative shall not prevent the Superintendent from
exercising any function.The Superintendent shall forthwith notify the Contractor in writing of
 (a)
    
    the appointment and the name of any Superintendents Representative
and the functions delegated to the Superintendents Representative;(b)
    
    the termination of the appointment of a Superintendents
Representative.
 If the Contractor makes a reasonable objection to the appointment of a representative,
the Superintendent shall terminate the appointment.25.
    
    CONTRACTORS REPRESENTATIVEThe Contractor shall personally superintend the execution of the work under the
Contract or, at all times during which any activities relating to the execution of the
work under the
Contract are taking place, have a competent representative present on the Site and, if


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 required by the Superintendent, at other places at which activities relating to the
execution of the work under the Contract are taking place.The Contractor shall forthwith notify the Superintendent in writing of the name of the
representative and of any subsequent changes. Any direction defined in Clause 23 shall
 (a)
    
    if it relates to the execution of work on the Site and is given to
the representative on the Site; or(b)
    
    if it relates to the execution of work at any other place and is
given to the representative at the other place,
 be deemed to have been given to the Contractor.Matters within the knowledge of a representative of the Contractor shall be deemed to
be within the knowledge of the Contractor.If the Superintendent makes a reasonable objection to the appointment of a
representative, the Contractor shall terminate the appointment and appoint another
representative.26.
    
    CONTROL OF CONTRACTORS EMPLOYEES AND SUBCONTRACTORSThe Superintendent may direct the Contractor to have removed from the Site or from any
activity connected with the work under the Contract, within such time as the
Superintendent directs, any person employed in connection with the work under the
Contract who, in the opinion of the Superintendent, is guilty of misconduct or is
incompetent or negligent. The person shall not thereafter be employed on the Site or on
activities connected with the work under the Contract without the prior written
approval of the Superintendent.27.
    
    SITE27.1.
    
    POSSESSION OF SITEThe Principal shall on or before the expiration of the time stated in the Annexure give
the Contractor possession of the Site or sufficient of the Site to enable the
Contractor to commence work. If the Principal has not given the Contractor possession
of the whole Site, the Principal shall from time to time give the Contractor possession
of such further parts of the Site as may be necessary to enable the Contractor to
execute the work under the Contract in accordance with the requirements of the
Contract. The Principal shall advise the Contractor in writing of the date upon which
the Site or any part thereof will be available.Notwithstanding the provisions of Clause 27.1, if the Contractor is in breach of Clause
21.1, the Principal may refuse to give the Contractor possession of the Site or any
part of the Site until the Contractor has complied with the requirements of Clause
21.1.Possession of the Site shall confer on the Contractor a right to only such use and
control as is necessary to enable the Contractor to execute the work under the
Contract.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 27.2.
    
    ACCESS FOR THE PRINCIPAL AND OTHERSThe Principal and the Principals employees and agents may at any time after reasonable
notice to the Contractor have access to any part of the Site for any purpose.The Contractor shall permit the execution of work on the Site by persons engaged by the
Principal and shall cooperate with them and coordinate the Contractors work with their
work.If requested by the Contractor, the Principal shall provide to the Contractor the names
of the persons so engaged.The Contractor shall at all reasonable times give the Principal, the Superintendent,
the Clerk of Works and inspectors appointed under Clause 22, and other persons
authorized in writing by the Principal or by the Superintendent access to the work
under the Contract at any place where the work is being carried out or materials are
being prepared or stored.The Principal shall ensure that the Contractor is not impeded in the execution of the
Contractors work by any persons referred to in Clause 27.2, whilst exercising the
right of access given by Clause 27.2.27.3.
    
    DELIVERY OF MATERIALS TO AND WORK ON SITE BEFORE POSSESSIONUntil possession of the Site or part of the Site is given to the Contractor under
Clause 27.1, the Contractor shall not deliver materials to or perform work on the Site
or part of the Site, as the case may be, unless approval in writing is given by the
Superintendent.27.4.
    
    USE OF SITE BY CONTRACTORUnless the Contract otherwise provides or the Superintendent gives prior written
approval, the Contractor shall not use the Site or allow it to be used for
 (a)
    
    camping;(b)
    
    residential purposes; or(c)
    
    any purpose not connected with the work under the Contract.
 27.5.
    
    FINDING OF MINERALS, FOSSILS AND RELICSValuable minerals, fossils, articles or objects of antiquity or of anthropological or
archaeological interest, treasure trove, coins and articles of value found on the Site
shall as between the parties be and remain the property of the Principal. Immediately
upon the discovery of these things the Contractor shall take precautions to prevent
their loss or removal or damage and shall notify the Superintendent of the discovery.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 If compliance with obligations under Clause 27.5 causes the Contractor to incur more or
less cost than the Contractor could reasonably have anticipated at the time of
tendering, the difference shall be valued under Clause 40.5.28.
    
    SETTING OUT THE WORKS28.1.
    
    SETTING OUTThe Superintendent shall supply to the Contractor the information and survey marks
necessary to enable the Contractor to set out the Works and the survey marks specified
in the Contract. Upon receipt of any necessary information and survey marks, the
Contractor shall set out the Works in accordance with the Contract and shall provide
all instruments and things necessary for that purpose.28.2.
    
    CARE OF SURVEY MARKSThe Contractor shall keep in their true positions all survey marks supplied by the
Superintendent.If a survey mark is disturbed or obliterated, the Contractor shall immediately notify
the Superintendent and, unless the Superintendent otherwise directs, the Contractor
shall reinstate the survey mark.If the disturbance or obliteration is caused by a person referred to in Clause 27.2,
other than the Contractor, the cost incurred by the Contractor in reinstating the
survey mark shall be valued under Clause 40.5.28.3.
    
    ERRORS IN SETTING OUTIf the Contractor discovers an error in the position, level, dimensions or alignment of
any work under the Contract, the Contractor shall immediately notify the Superintendent
and, unless the Superintendent otherwise directs, the Contractor shall rectify the
error.If the error has been caused by incorrect information, survey marks or data supplied by
the Superintendent, the cost incurred by the Contractor in rectifying the error shall
be valued under Clause 40.5.28.4.
    
    SURVEY MARK DEFINEDSurvey mark in Clause 28 means a survey peg, bench mark, reference mark, signal,
alignment, level mark or any other mark for the purpose of setting out, checking or
measuring work under the Contract.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 29.
    
    MATERIALS, LABOUR AND CONSTRUCTIONAL PLANT29.1.
    
    PROVISION OF MATERIALS, LABOUR AND CONSTRUCTIONAL PLANTExcept to the extent that the Contract otherwise provides, the Contractor shall supply
everything necessary for the proper performance of the Contractors obligations and
discharge of the Contractors liabilities under the Contract.29.2.
    
    REMOVAL OF MATERIALS AND CONSTRUCTIONAL PLANTFrom time to time the Superintendent may by written notice to the Contractor direct the
Contractor not to remove from the Site Constructional Plant or materials. Thereafter,
the Contractor shall not remove the materials or the Constructional Plant without the
prior written approval of the Superintendent, which approval shall not be unreasonably
withheld.29.3.
    
    MANUFACTURE AND SUPPLY OF MATERIALSThe Superintendent may direct the Contractor to supply particulars of
 (a)
    
    the mode and place of manufacture;(b)
    
    the source of supply;(c)
    
    the performance capacities; and(d)
    
    other information,
 in respect of any materials, machinery or equipment to be supplied by the Contractor
under or used in connection with the Contract.30.
    
    MATERIALS AND WORK30.1.
    
    QUALITY OF MATERIALS AND WORKThe Contractor shall use the materials and standards of workmanship required by the
Contract. In the absence of any requirement to the contrary, the Contractor shall use
suitable new materials.30.2.
    
    *QUALITY ASSURANCEThe Contractor shall, if requirements are so stated in the Contract
 (a)
    
    plan, establish and maintain a quality system which conforms to those
requirements;(b)
    
    provide the Superintendent with access to the quality system of the
Contractor and each of the subcontractors of the Contractor to enable monitoring
and quality auditing.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 
 Any such quality system shall be used only as an aid to achieving compliance with the
Contract and to document such compliance. Such system shall not relieve the Contractor
of the responsibility to comply with the Contract.NOTE: The inclusion of Quality Assurance requirements in a contract will require
detailed clauses in the Specification or elsewhere in the Contract which have regard to
the Quality Standard selected for the work.30.3.
    
    DEFECTIVE MATERIALS OR WORKIf the Superintendent discovers material or work provided by the Contractor which is
not in accordance with the Contract, the Superintendent may direct the Contractor to
 (a)
    
    remove the material from the Site;(b)
    
    demolish the work;(c)
    
    reconstruct, replace or correct the material or work; or(d)
    
    not to deliver the material or work to the Site.
 The Superintendent may direct the times within which the Contractor must commence and
complete the removal, demolition, replacement or correction.If the Contractor fails to comply with a direction issued by the Superintendent
pursuant to Clause 30.3 within the time specified by the Superintendent in the
direction and provided the Superintendent has given the Contractor notice in writing
that after the expiry of 7 days from the date on which the Contractor receives the
notice the Principal intends to have the work carried out by other persons, the
Principal may have the work of removal, demolition, replacement or correction carried
out by other persons and the cost incurred by the Principal in having the work so
carried out shall be a debt due from the Contractor to the Principal.30.4.
    
    VARIATIONS DUE TO DEFECTIVE MATERIALS OR WORKInstead of a direction under Clause 30.3, the Superintendent may direct a variation
pursuant to Clause 40. The variation shall be valued under Clause 40.5 and
 (a)
    
    if the variation causes an increase or decrease in the value to the
Principal of the Works, regard shall also be had to the increase or decrease; and(b)
    
    if the variation results in the Contractor incurring more or less
cost than would reasonably have been incurred had the Contractor been given a
direction under Clause 30.3, regard shall also be had to the difference.
 30.5.
    
    ACCEPTANCE OF DEFECTIVE MATERIAL OR WORKInstead of a direction under Clause 30.3 or 30.4, the Superintendent may notify the
Contractor that the Principal elects to accept the material or work notwithstanding
that it is


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 not in accordance with the Contract. In that event the resulting increase or
decrease in the value to the Principal of the Works and any other loss suffered by the
Principal shall be valued under Clause 40.5.30.6.
    
    GENERALLYThe Superintendent shall give either a direction under Clause 30.3 or 30.4 or a notice
under Clause 30.5 as soon as practicable after the Superintendent becomes aware that
material or work is not in accordance with the Contract. The Superintendent may give
the direction or notice at any time before the issue of the Final Certificate under
Clause 42.8.Except to the extent that to do so would be inconsistent with a direction under Clause
30.4 or a notice under Clause 30.5 and notwithstanding that the Superintendent has not
given a direction under Clause 30 3, the Contractor shall promptly remove, demolish,
replace or correct material or work that is not in accordance with the Contract.A progress payment, or a test or a failure by the Superintendent or anyone else to
disapprove any material or work shall not prejudice the power of the Superintendent too
subsequently give a direction under Clause 30 3 or 30.4 or a notice under Clause 30.5.Nothing in Clause 30 shall prejudice any other right which the Principal may have
against the Contractor arising out of the failure of the Contractor to provide material
or work in accordance with the Contract.The Superintendent shall not be obliged to give a direction under Clause 30.4 or a
notice, under Clause 30.5 to assist the Contractor.31.
    
    EXAMINATION AND TESTING31.1.
    
    SUPERINTENDENT MAY ORDER TESTSIn Clause 31 test includes examine and measure.
At any time prior to the issue of the Final Certificate the
Superintendent may direct that any material or work under the
Contract be tested. The Contractor shall provide such assistance and
samples and make accessible such parts of the work under the
Contract as may be required by the Superintendent On completion of
the tests, the Contractor shall make good the work under the
Contract so that it fully complies with the Contract.31.2.
    
    COVERING UP OF WORKThe Superintendent may direct that any part of the work under the Contract shall not be
covered up or made inaccessible without the Superintendents prior approval.31.3.
    
    WHO CONDUCTS TESTSTests shall be conducted as provided in the Contract or by the Superintendent or a
person (which may include the Contractor) nominated by the Superintendent.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 31.4.
    
    NOTICE OF TESTSBefore conducting a test under the Contract the party conducting the test, being the
Superintendent or the Contractor, shall give reasonable notice in writing to the other
of the time, date and place of the test. If the other does not then attend, the test
may nevertheless proceed.31.5.
    
    PROCEDURE IF TESTS DELAYEDWithout prejudice to any other right, if the Contractor or the Superintendent delays in
conducting a test, the other, after giving reasonable notice in writing of intention to
do so, may conduct the test.31.6.
    
    RESULTS OF TESTSResults of tests shall be promptly made available by each party to the other and to the
Superintendent.31.7.
    
    COSTS OF TESTINGCosts of and incidental to testing shall be valued under Clause 40.5 and shall be borne
by the Principal or paid by the Principal to the Contractor unless
 (a)
    
    the Contract provides that the Contractor shall bear the costs or the
test is one which the Contractor was required to conduct other than pursuant to a
direction under Clause 31.1;(b)
    
    the test shows that the material or work is not in accordance with
the Contract;(c)
    
    the test is in respect of work under the Contract covered up or made
inaccessible without the Superintendents prior approval where such was required;(d)
    
    the test is consequent upon a failure of the Contractor to comply
with a requirement of the Contract.
 Where such costs are not to be borne by the Principal, they shall be borne by the
Contractor or paid by the Contractor to the Principal.31.8.
    
    ACCESS FOR TESTINGIf, during the Defects Liability Period
 (a)
    
    the Principal or the Superintendent asserts that material or work is
not in accordance with the Contract; and(b)
    
    the Contractor requests permission to test the material or work,
 the Principal shall not unreasonably refuse the Contractor access to test the material
or work.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 32.
    
    WORKING HOURSThe working hours and working days shall be as stated in the Contract and if not so
stated as notified by the Contractor to the Superintendent prior to commencement of
work on Site and shall not be varied without the prior approval of the Superintendent
except when in the interests of safety of the work under the Contract or to protect
life or property the Contractor finds it necessary to carry out work outside the
working hours or on other than the working days stated in the Contract. In such cases
the Contractor shall notify the Superintendent in writing of the circumstances as early
as possible.All costs attributable to the contract administration by or on behalf of the Principal
of work during times approved pursuant to the previous paragraph shall be borne by the
Principal.33.
    
    PROGRESS AND PROGRAMMING OF THE WORKS33.1.
    
    RATE OF PROGRESSThe Contractor shall proceed with the work under the Contract with due expedition and
without delay.The Contractor shall not suspend the progress of the whole or any part of the work
under the Contract except where the suspension is under Clause 44.9 or is directed or
approved by the Superintendent under Clause 34.The Contractor shall give the Superintendent reasonable advance notice of when the
Contractor requires any information, materials, documents or instructions from the
Superintendent or the Principal.The Principal and the Superintendent shall not be obliged to furnish any information,
materials, documents or instructions earlier than the Principal or the Superintendent,
as the case may be, should reasonably have anticipated at the Date of Acceptance of
Tender.The Superintendent may direct in what order and at what time the various stages or
parts of the work under the Contract shall be performed. If the Contractor can
reasonably comply with the direction, the Contractor shall do so. If the Contractor
cannot reasonably comply, the Contractor shall notify the Superintendent in writing,
giving reasons.If compliance with the direction causes the Contractor to incur more or less cost than
otherwise would have been incurred had the Contractor not been given the direction, the
difference shall be valued under Clause 40.5.33.2.
    
    CONSTRUCTION PROGRAMFor the purposes of Clause 33, a construction program is a statement in writing
showing the dates by which, or the times within which, the various stages or parts of
the work under the Contract are to be executed or completed.A construction program shall not affect rights or obligations in Clause 33.1.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 The Contractor may voluntarily furnish to the Superintendent a construction program.The Superintendent may direct the Contractor to furnish to the Superintendent a
construction program within the time and in the form directed by the Superintendent.The Contractor shall not, without reasonable cause, depart from
 (a)
    
    a construction program included in the Contract; or(b)
    
    a construction program furnished to the Superintendent.
 The furnishing of a construction program or of a further construction program shall not
relieve the Contractor of any obligations under the Contract including the obligation
to not, without reasonable cause, depart from an earlier construction program.34.
    
    SUSPENSION OF THE WORKS34.1.
    
    SUSPENSION BY SUPERINTENDENTIf the Superintendent considers that the suspension of the whole or part of the work
under the Contract is necessary
 (a)
    
    because of an act or omission of
 (i)
    
    the Principal, the Superintendent or an employee,
consultant or agent of the Principal; or(ii)
    
    the Contractor, a subcontractor or an employee or agent
of either;
 (b)
    
    for the protection or safety of any person or property; or(c)
    
    to comply with an order of a court,
 the Superintendent shall direct the Contractor to suspend the progress of the whole or
part: of the work under the Contract for such time as the Superintendent thinks fit.34.2.
    
    SUSPENSION BY CONTRACTORIf the Contractor wishes to suspend the whole or part of the work under the Contract,
otherwise than under Clause 44.9, the Contractor shall obtain the prior written
approval of the Superintendent. The Superintendent may approve of the suspension and
may impose conditions of approval.34.3.
    
    RECOMMENCEMENT OF WORKAs soon as the Superintendent becomes aware that the reason for any suspension no
longer exists, the Superintendent shall direct the Contractor to recommence work on the
whole or on the relevant part of the work under the Contract.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 If work is suspended pursuant to Clause 34.2 or 44.9, the Contractor may recommence
work at any time after reasonable advance notice to the Superintendent.34.4.
    
    COST OF SUSPENSIONAny cost incurred by the Contractor by reason of a suspension under Clause 34.1 or
Clause 34.2 shall be borne by the Contractor but if the suspension is due to an act or
omission of the Principal, the Superintendent or an employee, consultant or agent of
the Principal and the suspension causes the Contractor to incur more or less cost than
otherwise would have been incurred but for the suspension, the difference shall be
valued under Clause 40.5.34.5.
    
    EFFECT OF SUSPENSIONSuspension shall not affect the Date for Practical Completion but the cause of
suspension may be a ground for extension of time under Clause 35.5.35.
    
    TIMES FOR COMMENCEMENT AND PRACTICAL COMPLETION35.1.
    
    TIME FOR COMMENCEMENT OF WORK ON THE SITEThe Contractor shall give the Superintendent 7 days notice of the date upon which the
Contractor proposes to commence work on the Site.The Superintendent may reduce the period of notice required.The Contractor shall commence work on the Site within 14 days after the Principal has
given the Contractor possession of sufficient of the Site to enable the Contractor to
commence work.The Superintendent may extend the time for commencement of work on the Site.35.2.
    
    TIME FOR PRACTICAL COMPLETIONThe Contractor shall execute the work under the Contract to Practical Completion by the
Date for Practical Completion.Upon the Date of Practical Completion the Contractor shall give possession of the Site
and the Works to the Principal.35.3.
    
    SEPARABLE PORTIONSThe interpretations of
 (a)
    
    Date for Practical Completion;(b)
    
    Date of Practical Completion;(c)
    
    Practical Completion,


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 
 and Clauses 5.7, 16, 35, 37, 38, 42.3 and 42.5 shall apply separately to each Separable
Portion and references therein to the Works and to work under the Contract shall mean
so much of the Works and the work under the Contract as is comprised in the relevant
Separable Portion.If the Contract does not make provision for the amount of security, retention moneys,
liquidated damages or bonus applicable to a Separable Portion, the respective amounts
applicable shall be such proportion of the security, retention moneys, liquidated
damages or bonus applicable to the whole of the work under the Contract as the value of
the Separable Portion bears to the value of the whole of the work under the Contract.35.4.
    
    USE OF PARTLY COMPLETED WORKSIf a part of the Works has reached a stage equivalent to that of Practical Completion
but another part of the Works has not reached such a stage and the parties cannot agree
upon the creation of Separable Portions, the Superintendent may determine that the
respective parts shall be Separable Portions.In using the Separable Portion that has reached Practical Completion, the Principal
shall not hinder the Contractor in the performance of the work under the Contract.35.5.
    
    EXTENSION OF TIME FOR PRACTICAL COMPLETIONWhen it becomes evident to the Contractor that anything, including an act or omission
of the Principal, the Superintendent or the Principals employees, consultants, other
contractors or agents, may delay the work under the Contract, the Contractor shall
promptly notify the Superintendent in writing with details of the possible delay and
the cause.When it becomes evident to the Principal that anything which the Principal is obliged
to do or provide under the Contract may be delayed, the Principal shall give notice to
the Superintendent who shall notify the Contractor in writing of the extent of the
likely delay.If the Contractor is or will be delayed in reaching Practical Completion by a cause
described in the next paragraph and within 28 days after the delay occurs the
Contractor gives the
Superintendent a written claim for an extension of time for Practical Completion
setting out the facts on which the claim is based, the Contractor shall be entitled to
an extension of time for Practical Completion.The causes are
 (a)
    
    events occurring on or before the Date for Practical Completion which
are beyond the reasonable control of the Contractor including but not limited toindustrial conditions;inclement weather;


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 (b)
    
    any of the following events whether occurring before, on or after the
Date for Practical Completion
 (i)
    
    delays caused by
  the Principal; the Superintendent;the Principals employees, consultants, other contractors or agents;
 (ii)
    
    actual quantities of work being greater than the
quantities in the Bill of Quantities or the quantities determined by
reference to the upper limit of accuracy stated in the Annexure (otherwise
than by reason of a variation directed under Clause 40);(iii)
    
    latent conditions;iv)
    
    variations directed under Clause 40;v)
    
    repudiation or abandonment by a Nominated Subcontractor;vi)
    
    changes in the law;vii)
    
    directions by municipal, public or statutory authorities
but not where the direction arose from the failure of the Contractor to
comply with a requirement referred to in Clause 14.1;viii)
    
    delays by municipal, public or statutory authorities not
caused by the Contractor;ix)
    
    claims referred to in Clause 17.1(v);x)
    
    any breach of the Contract by the Principal;xi)
    
    any other cause which is expressly stated in the Contract
to be a cause for extension of time for Practical Completion.
    whether the Contractor can reach Practical Completion by the Date for
Practical Completion without an extension of time;


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
  whether the Contractor can, by committing extra resources or
incurring extra expenditure, make up the time lost.
 With any claim for an extension of time for Practical Completion, or as soon as
practicable thereafter, the Contractor shall give the Superintendent written notice of
the number of days extension claimed.If the Contractor is entitled to an extension of time for Practical Completion the
Superintendent shall, within 28 days after receipt of the notice of the number of days
extension claimed, grant a reasonable extension of time. If within the 28 days the
Superintendent does not grant the full extension of time claimed, the Superintendent
shall before the expiration of the 28 days give the Contractor notice in writing of the
reason.In determining a reasonable extension of time for an event causing delay, the
Superintendent shall have regard to whether the Contractor has taken all reasonable
steps to preclude the occurrence of the cause and minimise the consequences of the
delay.Notwithstanding that the Contractor is not entitled to an extension of time the
Superintendent may at any time and from time to time before the issue of the Final o
Certificate by notice in writing to the Contractor extend the time for Practical
Completion for any reason.A delay by the Principal or the failure of the Superintendent to grant a reasonable
extension of time or to grant an extension of time within 28 days shall not cause the
Date for Practical Completion to be set at large but nothing in this paragraph shall
prejudice s any right of the Contractor to damages.35.6.
    
    LIQUIDATED DAMAGES FOR DELAY IN REACHING PRACTICAL COMPLETIONIf the Contractor fails to reach Practical Completion by the Date for Practical
Completion, the Contractor shall be indebted to the Principal for liquidated damages at
the rate stated in the Annexure for every day after the Date for Practical Completion
to and including the
Date of Practical Completion or the date that the Contract is terminated under Clause
44, whichever first occurs.If after the Contractor has paid or the Principal has deducted liquidated damages, the
time for Practical Completion is extended, the Principal shall forthwith repay to the
Contractor any liquidated damages paid or deducted in respect of the period up to and
including the new Date for Practical Completion.35.7.
    
    *LIMIT ON LIQUIDATED DAMAGESThe Contractors liability under Clause 35.6 is limited to the amount stated in the
Annexure.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 35.8.
    
    *BONUS FOR EARLY PRACTICAL COMPLETIONIf the Date of Practical Completion is earlier than the Date for Practical Completion
the Principal shall pay the Contractor the bonus stated in the Annexure for every day
after the Date of Practical Completion to and including the Date for Practical
Completion.The total of the bonus shall not exceed the limit stated in the Annexure.36.
    
    DELAY OR DISRUPTION COSTSWhere the Contractor has been granted an extension of time under Clause 35.5 for any
delay caused by any of the events referred to in Clause 35.5 (b)(i), the Principal
shall pay to the Contractor such extra costs as are necessarily incurred by the
Contractor by reason of the delay.Where the Contractor has been granted an extension of time under Clause 35.5 for any
delay caused by any other event for which payment of extra costs for delay or
disruption is provided for in the Annexure or elsewhere in the Contract, the Principal
shall pay to the Contractor such extra costs as are necessarily incurred by the
Contractor by reason of the delay.Nothing in Clause 36 shall
 (a)
    
    oblige the Principal to pay extra costs for delay or disruption which
have already been included in the value of a variation or any other payment under
the Contract; or(b)
    
    limit the Principals liability for damages for breach of contract.
 37.
    
    DEFECTS LIABILITYThe Defects Liability Period stated in the Annexure shall commence on the Date of
Practical Completion.As soon as possible after the Date of Practical Completion, the Contractor shall
rectify any defects or omissions in the work under the Contract existing at Practical
Completion.At any time prior to the 14th day after the expiration of the Defects Liability Period,
the Superintendent may direct the Contractor to rectify any omission or defect in the
work sounder the Contract existing at the Date of Practical Completion or which becomes
apparent prior to the expiration of the Defects Liability Period. The direction shall
identify the omission or defect and state a date by which the Contractor shall complete
the work of rectification and may state a date by which the work of rectification shall
commence. The direction may provide that in respect of the work of rectification there
shall be a separate Defects Liability Period of a stated duration not exceeding the
period stated in the Annexure. The separate Defects Liability Period shall commence on
the date the Contractor completes the work of rectification. Clause 37 shall apply in
respect of the work of rectification and the Defects Liability Period for that work of
rectification.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 If the work of rectification is not commenced or completed by the stated dates, the
Principal may have the work of rectification carried out at the Contractors expense,
but without prejudice to any other rights that the Principal may have against the
Contractor with respect to such omission or defect and the cost of the work of
rectification incurred by the Principal shall be a debt due from the Contractor.If it is necessary for the Contractor to carry out work of rectification, the
Contractor shall do so at times and in a manner which cause as little inconvenience to
the occupants or users of the Works as is reasonably possible.38.
    
    CLEANING UPThe Contractor shall keep the Site and the work clean and tidy. The Contractor shall
regularly remove rubbish and surplus material.Within 14 days after the Date of Practical Completion the Contractor shall remove
Temporary Works and Constructional Plant.The Superintendent may extend the time for removal of Temporary Works or Constructional
Plant necessary to enable the Contractor to perform remaining obligations.Notwithstanding the provisions of Clause 44, if the Contractor fails to comply with any
obligation imposed on the Contractor by Clause 38, the Superintendent may, after the
Superintendent has given reasonable notice in writing to the Contractor, have the work
of cleaning and tidying up carried out by other persons and the reasonable cost
incurred by the Principal in having the work so carried out may be recovered by the
Principal as a debt due from the Contractor to the Principal. The rights given by this
paragraph are in addition to any other right.39.
    
    URGENT PROTECTIONIf urgent action is necessary to protect the work under the Contract, other property or
people and the Contractor fails to take the action, the Principal may take the
necessary action.If the action was action which the Contractor should have taken at the Contractors
cost, the cost incurred by the Principal shall be a debt due from the Contractor.If time permits, the Superintendent shall give the Contractor prior written notice of
the Principals intention to take action under Clause 39.40.
    
    VARIATIONS40.1.
    
    VARIATIONS TO THE WORKThe Superintendent may direct the Contractor to
 (a)
    
    increase, decrease or omit any part of the work under the Contract;


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 (b)
    
    change the character or quality of any material or work;(c)
    
    change the levels, lines, positions or dimensions of any part of the
work under the Contract;(d)
    
    execute additional work; and/or(e)
    
    demolish or remove material or work no longer required by the
Principal.
 The Contractor shall not vary the work under the Contract except as directed by the
Superintendent or approved in writing by the Superintendent under Clause 40.The Contractor is bound only to execute a variation that is within the general scope of
the Contract.The Contractor shall not be bound to execute a variation directed after Practical
Completion unless the variation is in respect of rectification work referred to in
Clause 37.40.2.
    
    PROPOSED VARIATIONSUpon receipt of a notice in writing from the Superintendent advising the Contractor of
a proposed variation under Clause 40, the Contractor shall advise the Superintendent
whether the proposed variation can be effected. If the variation can be effected, the
Contractor shall
 (a)
    
    advise the Superintendent of the effect which the Contractor
anticipates that the variation will have on the construction program and time for
Practical Completion; and(b)
    
    provide an estimate of the cost (including delay costs, if any) of
the proposed variation.
 The Principal shall reimburse the Contractor for the reasonable costs of complying with
the requirements of Clause 40.2.40.3.
    
    PRICING THE VARIATIONUnless the Superintendent and the Contractor agree upon the price for a variation, the
variation directed or approved by the Superintendent under Clause 40.1 shall be valued
under Clause 40.5.The Superintendent may direct the Contractor to provide a detailed quotation for the
work of a variation supported by measurements or other evidence of cost.40.4.
    
    VARIATIONS FOR THE CONVENIENCE OF THE CONTRACTORIf the Contractor requests the Superintendent to approve a variation for the
convenience of the Contractor, the Superintendent may do so in writing. The approval
may be conditional.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 Unless the Superintendent otherwise directs in the notice approving the variation, the
Contractor shall not be entitled to
 (a)
    
    an extension of time for Practical Completion; or(b)
    
    extra payment,
 in respect of the variation or anything arising out of the variation which would not
have arisen had the variation not been approved.The Superintendent shall not be obliged to approve a variation for the convenience of
the Contractor.40.5.
    
    VALUATIONWhere the Contract provides that a valuation shall be made under Clause 40.5, the
Principal shall pay or allow the Contractor or the Contractor shall pay or allow the
Principal as the case may require, an amount ascertained by the Superintendent as
follows
 (a)
    
    if the Contract prescribes specific rates or prices to be applied in
determining the value, those rates or prices shall be used;(b)
    
    if Clause 40.5(a) does not apply, the rates or prices in a Priced
Bill of Quantities or Schedule of Rates shall be used to the extent that it is
reasonable to use them;(c)
    
    to the extent that neither Clause 40.5(a) or 40.5(b) apply,
reasonable rates or prices shall be used in any valuation made by the
Superintendent;(d)
    
    in determining the deduction to be made for work which is taken out
of the Contract, the deduction shall include a reasonable amount for profit and
overheads;(e)
    
    if the valuation is of an increase or decrease in a fee or charge or
is a new fee or charge under Clause 14.3, the value shall be the actual increase
or decrease or the actual amount of the new fee or charge without regard to
overheads or profit;(f)
    
    if the valuation relates to extra costs incurred by the Contractor
for delay or disruption, the valuation shall include a reasonable amount for
overheads but shall not include profit or loss of profit;(g)
    
    if Clause 11(b) applies, the percentage referred to in Clause 11(b)
shall be used for valuing the Contractors profit and attendance; and(h)
    
    daywork shall be valued in accordance with Clause 41.
 When under Clause 40.3 the Superintendent directs the Contractor to support a variation
with measurements and other evidence of cost, the Superintendent shall allow the
Contractor the reasonable cost of preparing the measurements or other evidence of cost
that has been incurred over and above the reasonable overhead cost.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 41.
    
    DAYWORKThe Superintendent may direct that quantities greater than those determined by
reference to the upper limit of accuracy referred to in Clause 3.3 or variations
directed by the Superintendent under Clause 40.1 shall be carried out as Daywork. The
Contractor shall thereafter each day record particulars of all resources used by the
Contractor for the execution of the Daywork and each day furnish to the Superintendent
the particulars and copies of time sheets, wages sheets, invoices, receipts and other
documents evidencing the cost of the Daywork. The Superintendent may direct the manner
in which matters are to be recorded.In determining the value of Daywork regard shall be had to
 (a)
    
    the amount of wages and allowances paid or payable by the Contractor
at the rates obtaining on the Site at the time as established by the Contractor to
the satisfaction of the Superintendent or at such other rates as may be approved
by the Superintendent;(b)
    
    the amount paid or payable by the Contractor in accordance with any
statute or award applicable to day labour additional to the wages paid or payable
under Clause 41(a);(c)
    
    the amount of hire charges in respect of Constructional Plant
approved by the Superintendent for use on the work in accordance with such hiring
rates and conditions as may be agreed between the Superintendent and the
Contractor or, in the absence of agreement, in accordance with such rates and
conditions as may be determined by the Superintendent;(d)
    
    the amounts paid for services, subcontracts and professional fees;(e)
    
    the actual cost to the Contractor at the Site of all materials
supplied and required for the work; and(f)
    
    the charge stated in the Annexure or, if no charge is stated, a
charge agreed between the Superintendent and the Contractor to cover overheads,
administrative costs, site supervision, establishment costs, attendance and profit, or, in the absence of
agreement, a reasonable charge determined by the Superintendent.
 Amounts payable for Daywork shall not be subject to adjustment for rise and fall in
costs notwithstanding that the Contract may provide for adjustment for rise and fall in
costs.42.
    
    CERTIFICATES AND PAYMENTS42.1.
    
    PAYMENT CLAIMS, CERTIFICATES, CALCULATIONS AND TIME FOR PAYMENTAt the times for payment claims stated in the Annexure and upon issue of a Certificate
of Practical Completion and within the time prescribed by Clause 42.7, the Contractor
shall deliver to the Superintendent claims for payment supported by evidence of the
amount due to


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 the Contractor and such information as the Superintendent may reasonably
require. Claims for payment shall include the value of work carried out by the
Contractor in the performance of the Contract to that time together with all amounts
then due to the Contractor arising out of or in connection with the Contract or for any
alleged breach thereof.Within 14 days after receipt of a claim for payment, the Superintendent shall issue to
the Principal and to the Contractor a payment certificate stating the amount of the
payment which, in the opinion of the Superintendent, is to be made by the Principal to
the Contractor or by the Contractor to the Principal. The Superintendent shall set out
in the certificate the calculations employed to arrive at the amount and, if the amount
is more or less than the amount claimed by the Contractor, the reasons for the
difference. The Superintendent shall allow in any payment certificate issued pursuant
to this Clause 42.1 or any Final Certificate issued pursuant to Clause 42.8 or a
Certificate issued pursuant to Clause 44.6, amounts paid under the Contract and amounts
otherwise due from the Principal to the Contractor and/or due from the Contractor to
the Principal arising out of or in connection with the Contract including but not
limited to any amount due or to be credited under any provision of the Contract.If the Contractor fails to make a claim for payment under Clause 42.1, the
Superintendent may nevertheless issue a payment certificate.Subject to the provisions of the Contract, within 28 days after receipt by the
Superintendent of a claim for payment or within 14 days of issue by the Superintendent
of the Superintendents payment certificate, whichever is the earlier, the Principal
shall pay to the Contractor or the Contractor shall pay to the Principal, as the case
may be, an amount not less than the amount shown in the Certificate as due to the
Contractor or to the Principal as the case may be, or if no payment certificate has
been issued, the Principal shall pay the amount of the Contractors claim. A payment
made pursuant to this Clause shall not prejudice the right of either party to dispute
under Clause 47 whether the amount so paid is the amount properly due and payable and
on determination (whether under Clause 47 or as otherwise agreed) of the amount so
properly due and payable, the Principal or Contractor, as
the case may be, shall be liable to pay the difference between the amount of such
payment and the amount so properly due and payable.Payment of moneys shall not be evidence of the value of work or an admission of
liability or evidence that work has been executed satisfactorily but shall be a payment
on account only, except as provided by Clause 42.8.Notwithstanding Clause 42.4, the Principal shall be obliged to pay for any item of
unfixed plant and materials where that item is
 (i)
    
    to be imported into Australia, provided the Contractor has given the
Principal a clean on board bill of lading or its equivalent, drawn or endorsed to
the order of the Principal and, where appropriate, a customs invoice for the
item; or


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 (ii)
    
    listed in the Annexure and which is not an item to be imported into
Australia, provided the Contractor establishes to the satisfaction of the
Superintendent that the Contractor has paid for the item, and the item is properly
stored, labelled the property of the Principal and adequately protected.
 Upon payment to the Contractor of the amount which includes the value of the item, the
item shall be the property of the Principal free of any lien or charge.Except as provided in the Contract, the Principal shall not be obliged to pay for any
item of unfixed plant and materials which is not incorporated in the Works.42.2.
    
    CORRECTION OF PAYMENT CERTIFICATESAt any time and from time to time, the Superintendent may by a further certificate
correct any error which has been discovered in any previous certificate, other than a
Certificate of Practical Completion or Final Certificate.42.3.
    
    RETENTION MONEYSThe Principal may deduct from moneys otherwise due to the Contractor amounts up to the
limit of the percentages, if any, stated in the Annexure of so much of the value of the
respective items stated in the Annexure as is included in the calculation of a payment.42.4.
    
    UNFIXED PLANT AND MATERIALSAlternative 1If the Contractor claims payment for plant or materials intended for incorporation in
the Works but not incorporated, the Principal shall not be obliged to make payment for
the plant or materials unless the Contractor provides additional security in one of the
forms provided by Clause 5.3 in an amount equal to the payment claimed for the plant or
materials.Alternative 2If the Contractor claims payment for plant or materials intended for incorporation in
the Works but not incorporated the Principal shall not be obliged to make payment for
such plant or materials but the Principal may make payment, if the Contractor
establishes to the satisfaction of the Superintendent that
 (a)
    
    such plant or materials have reasonably but not prematurely been
delivered to or adjacent to the Site;(b)
    
    ownership of such plant and materials will pass to the Principal upon
the making of the payment claimed; and(c)
    
    such plant or materials are properly stored, labelled the property of
the Principal and adequately protected.
 Upon payment to the Contractor of the amount claimed, the plant or materials the
subject of the claim shall be the property of the Principal free of any lien or charge.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 Alternative 3The Contractor shall not be entitled to payment for plant or materials not incorporated
in the Works.42.5.
    
    CERTIFICATE OF PRACTICAL COMPLETIONThe Contractor shall give the Superintendent at least 14 days notice of the date upon
which the Contractor anticipates that Practical Completion will be reached.When the Contractor is of the opinion that Practical Completion has been reached, the
Contractor shall in writing request the Superintendent to issue a Certificate of
Practical Completion. Within 14 days of the receipt of the request, the Superintendent
shall give to the Contractor and to the Principal a Certificate of Practical Completion
certifying the Date of Practical Completion or give the Contractor in writing the
reasons for not issuing the Certificate.When the Superintendent is of the opinion that Practical Completion has been reached,
the Superintendent may issue a Certificate of Practical Completion whether or not the
Contractor has made a request for its issue.42.6.
    
    EFFECT OF CERTIFICATESThe issue of a payment certificate or a Certificate of Practical Completion shall not
constitute approval of any work or other matter nor shall it prejudice any claim by the
Principal or the Contractor.42.7.
    
    FINAL PAYMENT CLAIMWithin 28 days after the expiration of the Defects Liability Period, or where there is
more than one, the last to expire, the Contractor shall lodge with the Superintendent a
final payment claim and endorse it Final Payment Claim.The Contractor shall include in that claim all moneys which the Contractor considers to
be due from the Principal under or arising out of the Contract or any alleged breach
thereof.After the expiration of the period for lodging a Final Payment Claim, any claim which
the Contractor could have made against the Principal and has not been made shall be
barred.42.8.
    
    FINAL CERTIFICATEWithin 14 days after receipt of the Contractors Final Payment Claim or, where the
Contractor fails to lodge such claim, the expiration of the period specified in Clause
42.7 for the lodgement of the Final Payment Claim by the Contractor, the Superintendent
shall issue to the Contractor and to the Principal a final payment certificate endorsed
Final Certificate. In the certificate the Superintendent shall certify the amount
which in the Superintendents opinion is finally due from the Principal to the
Contractor or from the Contractor to the Principal under or arising out of the Contract
or any alleged breach thereof.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 Unless either party, either before the Final Certificate has been issued or not later
than 15 days after the issue thereof, serves a notice of dispute under Clause 47, the
Final Certificate shall be evidence in any proceedings of whatsoever nature and whether
under the Contract or otherwise between the parties arising out of the Contract, that
the Works have been completed in accordance with the terms of the Contract and that any
necessary effect has been given to all the terms of the Contract which require
additions or deductions to be made to the Contract Sum, except in the case of
 (a)
    
    fraud, dishonesty or fraudulent concealment relating to the Works or
any part thereof or to any matter dealt with in the said Certificate;(b)
    
    any defect (including omission) in the Works or any part thereof
which was not apparent at the end of the Defects Liability Period, or which would
not have been disclosed upon reasonable inspection at the time of the issue of the
Final Certificate;or(c)
    
    any accidental or erroneous inclusion or exclusion of any work,
plant, materials or figures in any computation or any arithmetical error in any
computation.
 Within 14 days after the issue of a Final Certificate which certifies a balance owing
by the Principal to the Contractor, the Principal shall release to the Contractor any
retention moneys or security then held by the Principal.42.9.
    
    INTEREST ON OVERDUE PAYMENTSIf any moneys due to either party remain unpaid after the date upon which or the
expiration of the period within which they should have been paid then interest shall be
payable thereon from but excluding the date upon which or the expiration of the period
within which they should have been paid to and including the date upon which the moneys
are paid. The rate of interest shall be the rate stated in the Annexure and if no rate
is stated the rate shall be 18 percent per annum. Interest shall be compounded at six
monthly intervals.42.10.
    
    SET OFFS BY THE PRINCIPALThe Principal may deduct from moneys due to the Contractor any money due from the
Contractor to the Principal otherwise than under the Contract and if those moneys are
insufficient, the Principal may, subject to Clause 5.5, have recourse to retention
moneys and, if they are insufficient, then to security under the Contract.42.11.
    
    RECOURSE FOR UNPAID MONEYSWhere, within the time provided by the Contract, a party fails to pay the other party
an amount due and payable under the Contract, the other party may, subject to Clause
5.5, have recourse to retention moneys, if any, and, if those moneys are insufficient,
then to security under the Contract and any deficiency remaining may be recovered by
the other party as a debt due and payable.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 43.
    
    PAYMENT OF WORKERS AND SUBCONTRACTORS
 (a)
    
    Before the Principal makes each payment to the Contractor, the
Superintendent may, not less than 5 days before a Payment Certificate is due, in
writing request the Contractor
 (i)
    
    to give the Superintendent a statutory declaration by the
Contractor or, where the Contractor is a corporation, by a representative of
the Contractor who is in a position to know the facts declared, that all
workers who have at any time been employed by the Contractor on work under
the Contract have at the date of the request been paid all moneys due and
payable to them in respect of their employment on the work under the
Contract; and(ii)
    
    to provide documentary evidence to the Superintendent
that at the date of the request all workers who have been employed by a
subcontractor of the Contractor have been paid all moneys due and payable to
them in respect of their employment on the work under the Contract.
 (b)
    
    Not earlier than 14 days after the Contractor has made each claim for
payment under Clause 42.1, and before the Principal makes that payment to the
Contractor, the Contractor shall give to the Superintendent a statutory
declaration by the Contractor or, where the Contractor is a corporation, by a
representative of the Contractor who is
in a position to know the facts declared, that all subcontractors have been paid
all moneys due and payable to them in respect of work under the Contract.(c)
    
    If the Contractor fails
 (i)
    
    within five days after a request by the Superintendent
under Clause 43(a), to provide the statutory declaration, or the documentary
evidence (as the case may be) required pursuant to Clause 43; or(ii)
    
    to comply with Clause 43(b),
 notwithstanding Clause 42.1, the Principal may withhold payment of moneys due to the
Contractor until the statutory declaration or documentary evidence (as the case may be)
is received by the Superintendent.If the Contractor provides to the Superintendent satisfactory proof of the maximum
amount due and payable to workers and subcontractors by the Contractor, the Principal
shall not be entitled to withhold any amount in excess of the maximum amount.At the written request of the Contractor and out of moneys payable to the Contractor,
the Principal may on behalf of the Contractor make payments directly to any worker or
subcontractor.If any worker or subcontractor obtains a court order in respect of moneys referred to
in Clause 43(a) or (b) and produces to the Principal the court order and a statutory


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 declaration that it remains unpaid, the Principal may pay the amount of the order, and
costs included in the order, to the worker or subcontractor and the amount paid shall
be a debt due from the Contractor to the Principal.After the making of a sequestration order or a winding up order in respect of the
Contractor, the Principal shall not make any payment to a worker or subcontractor
without the concurrence of the official receiver or trustee of the estate of the
bankrupt or the liquidator as the case may be.44.
    
    DEFAULT OR INSOLVENCY44.1.
    
    PRESERVATION OF OTHER RIGHTSIf a party breaches or repudiates the Contract, nothing in Clause 44 shall prejudice
the right of the other party to recover damages or exercise any other right.44.2.
    
    DEFAULT BY THE CONTRACTORIf the Contractor commits a substantial breach of contract and the Principal considers
that damages may not be an adequate remedy, the Principal may give the Contractor a
written notice to show cause.Substantial breaches include but are not limited to
 (a)
    
    suspension of work, in breach of Clause 33.1;(b)
    
    failing to proceed with due expedition and without delay, in breach
of Clause 33.1;(c)
    
    failing to lodge security in breach of Clause 5;(d)
    
    failing to use the materials or standards of workmanship required by
the Contract, in breach of Clause 30.1;(e)
    
    failing to comply with a direction of the Superintendent under Clause
30.3, in breach of Clause 23;(f)
    
    failing to provide evidence of insurance, in breach of Clause 21.1;
and/or(g)
    
    in respect of Clause 43, knowingly providing a statutory declaration
or documentary evidence which contains a statement that is untrue.
 44.3.
    
    REQUIREMENTS OF A NOTICE BY THE PRINCIPAL TO SHOW CAUSEA notice under Clause 44.2 shall
 (a)
    
    state that it is a notice under Clause 44 of the General Conditions
of Contract;(b)
    
    specify the alleged substantial breach;


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 (c)
    
    require the Contractor to show cause in writing why the Principal
should not exercise a right referred to in Clause 44.4;(d)
    
    specify the time and date by which the Contractor must show cause
(which time shall not be less than 7 clear days after the notice is given to the
Contractor); and(e)
    
    specify the place at which cause must be shown.
 44.4.
    
    RIGHTS OF THE PRINCIPALIf by the time specified in a notice under Clause 44.2 the Contractor fails to show
reasonable cause why the Principal should not exercise a right referred to in Clause
44.4, the Principal may by notice in writing to the Contractor
 (a)
    
    take out of the hands of the Contractor the whole or part of the work
remaining to be completed; or(b)
    
    terminate the Contract.
  (i)
    
    the date upon which the Contractor shows reasonable cause;(ii)
    
    the date upon which the Principal takes action under Clause 44.4(a)
or (b); or(iii)
    
    the date which is 7 days after the last day for showing cause in the
notice under Clause 44.2.
 If the Principal exercises the right under Clause 44.4(a), the Contractor shall not be
entitled to any further payment in respect of the work taken out of the hands of the
Contractor unless a payment becomes due to the Contractor under Clause 44.6.44.5.
    
    PROCEDURE WHEN THE PRINCIPAL TAKES OVER WORKIf the Principal takes work out of the hands of the Contractor under Clause 44.4(a) the
Principal shall complete that work and the Principal may without payment of
compensation take possession of such of the Constructional Plant and other things on or
in the vicinity of the Site as are owned by the Contractor and are reasonably required
by the Principal to facilitate completion of the work.If the Principal takes possession of Constructional Plant or other things, the
Principal shall maintain the Constructional Plant and, subject to Clause 44.6, on
completion of the work the Principal shall return to the Contractor the Constructional
Plant and any things taken under this Clause which are surplus.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 44.6.
    
    ADJUSTMENT ON COMPLETION OF THE WORK TAKEN OUT OF THE HANDS OF THE CONTRACTORWhen work taken out of the hands of the Contractor under Clause 44.4(a) is completed
the Superintendent shall ascertain the cost incurred by the Principal in completing the
work and shall issue a certificate to the Principal and the Contractor certifying the
amount of that cost.If the cost incurred by the Principal is greater than the amount which would have been
paid to the Contractor if the work had been completed by the Contractor, the difference
shall be a debt due from the Contractor to the Principal. If the cost incurred by the
Principal is less than the amount that would have been paid to the Contractor if the
work had been completed by the Contractor, the difference shall be a debt due to the
Contractor from the Principal. The Principal shall keep records of the cost in a
similar manner to that prescribed in Clause 41.If the Contractor is indebted to the Principal, the Principal may retain Constructional
Plant or other things taken under Clause 44.5 until the debt is satisfied. If after
reasonable notice, the Contractor fails to pay the debt, the Principal may sell the
Constructional Plant or other things and apply the proceeds to the satisfaction of the
debt and the costs of sale. Any excess shall be paid to the Contractor.44.7.
    
    DEFAULT OF THE PRINCIPALIf the Principal commits a substantial breach of contract and the Contractor considers
that damages may not be an adequate remedy, the Contractor may give the Principal a
written notice to show cause.Substantial breaches include but are not limited to
 (a)
    
    failing to make a payment, in breach of Clause 42.1;(b)
    
    failure by the Superintendent to either issue a Certificate of
Practical Completion or give the Contractor, in writing, the reasons for not
issuing the Certificate within 14 days of receipt of a request by the Contractor
to issue the Certificate, in breach of Clause 42.5;(c)
    
    failing to produce evidence of insurance, in breach of Clause 21.1;(d)
    
    failing to give the Contractor possession of sufficient of the Site,
in breach of Clause 27.1, but only if the failure continues for longer than the
period stated in the Annexure; and/or(e)
    
    failing to lodge security in breach of Clause 5.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 44.8.
    
    REQUIREMENTS OF A NOTICE BY THE CONTRACTOR TO SHOW CAUSEA notice under Clause 44.7 shall
 (a)
    
    state that it is a notice under Clause 44 of the General Conditions
of Contract;(b)
    
    specify the alleged substantial breach;(c)
    
    require the Principal to show cause in writing why the Contractor
should not exercise a right referred to in Clause 44.9;(d)
    
    specify the time and date by which the Principal must show cause
(which shall not be less than 7 clear days after the notice is given to the
Principal); and(e)
    
    specify the place at which cause must be shown.
 44.9.
    
    RIGHTS OF THE CONTRACTORIf by the time specified in a notice under Clause 44.7 the Principal fails to show
reasonable cause why the Contractor should not exercise a right referred to in Clause
44.9, the Contractor may by notice in writing to the Principal suspend the whole or any
part of the work under the Contract.The Contractor shall lift the suspension if the Principal remedies the breach but if
within 28 days after the date of suspension under Clause 44.9, the Principal fails to
remedy the breach or, if the breach is not capable of remedy, fails to make other
arrangements to the reasonable satisfaction of the Contractor, the Contractor may by
notice in writing to the Principal terminate the Contract.The Contractor shall be entitled to recover from the Principal any damages incurred by
the Contractor by reason of the suspension.44.10.
    
    RIGHTS OF THE PARTIES ON TERMINATIONIf the Contract is terminated under Clause 44.4(b) or Clause 44.9 the rights and
liabilities of the parties shall be the same as they would have been at common law had
the defaulting party repudiated the Contract and the other party elected to treat the
Contract as at an end and recover damages.44.11.
    
    INSOLVENCYIf
 (a)
    
    a party informs the other party in writing or creditors generally
that the party is insolvent;(b)
    
    a party commits an act of bankruptcy;


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 (c)
    
    a bankruptcy petition is presented against a party;(d)
    
    a party is made bankrupt;(e)
    
    a meeting of creditors of a party is called with a view to
 (i)
    
    entering a scheme of arrangement or composition with
creditors; or(ii)
    
    placing the party under official management;
 (f)
    
    a party enters a scheme of arrangement or composition with creditors;(g)
    
    a resolution is passed at a meeting of creditors to place a party
under official management;(h)
    
    a party is placed under official management;(i)
    
    a receiver of the property or part of the property of a party is
appointed;(j)
    
    an application is made to a court for the winding up of a party and
not stayed within 14 days;(k)
    
    a winding up order is made in respect of a party, and/or(l)
    
    execution is levied against a party by creditors, debenture holders
or trustees or under a floating charge
 (i)
    
    where the other party is the Principal, the Principal
may, without giving a notice to show cause, exercise the right under Clause
44.4(a);(ii)
    
    where the other party is the Contractor, the Contractor
may, without giving a notice to show cause, exercise the right under Clause
44.9.
 The rights given by Clause 44.11 are in addition to any other rights and may be
exercised notwithstanding that there has been no breach of contract.45.
    
    *TERMINATION BY FRUSTRATIONIf, under the law governing the Contract, the Contract is frustrated, the Principal
shall pay the Contractor
 (a)
    
    for work executed prior to the date of frustration, the amount which
would have been payable if the Contract had not been frustrated and the Contractor
had made a progress claim on the date of frustration;(b)
    
    the cost of materials reasonably ordered by the Contractor for the
work under the Contract, which the Contractor is liable to accept, but only if the
materials become the property of the Principal upon payment;


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 (c)
    
    costs reasonably incurred by the Contractor in the expectation of
completing the whole of the work under the Contract and not included in any
payment by the Principal;(d)
    
    all retention moneys and security;(e)
    
    the reasonable cost of removal of Constructional Plant;(f)
    
    the reasonable cost of return to their place of recruitment of the
Contractors employees engaged in the work under the Contract at the date of
frustration.
 46.
    
    TIME FOR NOTIFICATION OF CLAIMS46.1.
    
    CONTRACTORS PRESCRIBED NOTICEThe Principal shall not be liable upon any claim by the Contractor in respect of or
arising out of a breach of the Contract unless within 28 days after the first day upon
which the Contractor could reasonably have been aware of the breach, the Contractor has
given to the Superintendent the prescribed notice.The Principal shall not be liable upon any other claim by the Contractor for any extra
cost or expense in respect of or arising out of any direction or approval by the
Superintendent unless within 42 days after the first day upon which the Contractor
could reasonably have been aware of the entitlement to make the claim, the Contractor
has given to the Superintendent the prescribed notice.The prescribed notice is a notice in writing which includes particulars of all of the
following
 (a)
    
    the breach, act, omission, direction, approval or circumstances on
which the claim is or will be based;(b)
    
    the provision of the Contract or other basis for the claim or
proposed claim; and(c)
    
    the quantum or likely quantum of the claim.
  (i)
    
    any claim for payment to the Contractor of an amount or amounts
forming part of the Contract Sum or any part thereof;(ii)
    
    any claim for payment for a variation directed by the Superintendent
or to be made pursuant to Clause 12.3;(iii)
    
    any claim for an extension of time for Practical Completion; or(iv)
    
    the provisions of Clause 46.2.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 46.2.
    
    TIME FOR DISPUTING SUPERINTENDENTS DIRECTIONIf the Superintendent
 (a)
    
    has given a direction (other than a decision under Clause 47.2)
pursuant to the Contract; and(b)
    
    has served a notice in writing on each party that if a party wishes
to dispute the direction then that party is required to do so under Clause 47,
 the direction shall not be disputed unless a notice of dispute in accordance with
Clause 47.1 is given by one party to the other party and to the Superintendent within
56 days after the date of service on that party of the notice pursuant to Clause
46.2(b).47.
    
    DISPUTE RESOLUTION47.1.
    
    NOTICE OF DISPUTEIf a dispute between the Contractor and the Principal arises out of or in connection
with the Contract, including a dispute concerning a direction given by the
Superintendent, then either party shall deliver by hand or send by certified mail to
the other party and to the Superintendent a notice of dispute in writing adequately
identifying and providing details of the dispute.Notwithstanding the existence of a dispute, the Principal and the Contractor shall
continue to perform the Contract, and subject to Clause 44, the Contractor shall
continue with the work under the Contract and the Principal and the Contractor shall
continue to comply with Clause 42.1.A claim in tort, under statute or for restitution based on unjust enrichment or for
rectification or frustration, may be included in an arbitration.47.2.
    
    FURTHER STEPS REQUIRED BEFORE PROCEEDINGSAlternative 1Within 14 days after service of a notice of dispute, the parties shall confer at least
once, and at the option of either party and provided the Superintendent so agrees, in
the presence of the Superintendent, to attempt to resolve the dispute and failing
resolution of the dispute to explore and if possible agree on methods of resolving the
dispute by other means. At any such conference each party shall be represented by a
person having authority to agree to a resolution of the dispute.In the event that the dispute cannot be so resolved or if at any time either party
considers that the other party is not making reasonable efforts to resolve the dispute,
either party may by notice in writing delivered by hand or sent by certified mail to
the other party refer such dispute to arbitration or litigation.Alternative 2


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 A party served with a notice of dispute may give a written response to the notice to
the other party and the Superintendent within 28 days of the receipt of the notice.
Within 42 days of the service on the Superintendent of a notice of dispute or within 14
days of the receipt by the Superintendent of the written response, whichever is the
earlier, the Superintendent shall give to each party the Superintendents written
decision on the dispute, together with reasons for the decision.If either party is dissatisfied with the decision of the Superintendent, or if the
Superintendent fails to give a written decision on the dispute within the time required
under Clause 47.2 the parties shall, within 14 days of the date of receipt of the
decision, or within 14 days of the date upon which the decision should have been given
by the Superintendent confer at least once to attempt to resolve the dispute and
failing resolution of the dispute to explore and if possible agree on methods of
resolving the dispute by other means. At any such conference, each party shall be
represented by a person having authority to agree to a resolution of the dispute.In the event that the dispute cannot be so resolved or if at any time after the
Superintendent has given a decision either party considers that the other party is not
making reasonable efforts to resolve the dispute, either party may, by notice in
writing delivered by hand or sent by certified mail to the other party, refer such
dispute to arbitration or litigation.47.3.
    
    ARBITRATIONArbitration shall be effected by a single arbitrator who shall be nominated by the
person named in the Annexure, or if no person is named, by the Chairperson for the time
being of the Chapter of the Institute of Arbitrators Australia in the State or
Territory named in the Annexure. Such arbitration shall be held in the State or
Territory stated in the Annexure.Unless the parties agree in writing, any person agreed upon by the parties to resolve
the dispute pursuant to Clause 47.2 shall not be appointed as an arbitrator, nor may
that person be called as a witness by either party in any proceedings.Notwithstanding Clause 42.9, the arbitrator may award whatever interest the arbitrator
considers reasonable.If one party has overpaid the other, whether pursuant to a Superintendents certificate
or not and whether under a mistake of law or fact, the arbitrator may order repayment
together with interest.47.4.
    
    SUMMARY OR URGENT RELIEFSNothing herein shall prejudice the right of a party to institute proceedings to enforce
payment due under Clause 42 or to seek urgent injunctive or declaratory relief in
respect of a dispute under Clause 47 or any matter arising under the Contract.


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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part III: General Conditions of Contract
    
    (LOGO)
 48.
    
    WAIVER OF CONDITIONSExcept as provided at law or in equity or elsewhere in the Contract, none of the terms
of the Contract shall be varied, waived, discharged or released, except with the prior
consent in writing of the Principal in each instance.
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 PART IV : SPECIFICATION
  Page No.1. DESCRIPTION OF SITE AND WORKS
    
    
    31.1. SITE
    
    
    31.2. WELL NAMES
    
    
    51.3. UNITS OF MEASURE AND DEFINITIONS
    
    
    51.3.1. UNITS
    
    
    51.3.2. DEFINITIONS AND INTERPRETATIONS
    
    
    51.4. ACCESS
    
    
    61.4.1. WHARF FACILITIES
    
    
    61.4.2. WELL SITES
    
    
    61.4.3. WATER RESERVOIR
    
    
    61.5. DEFINITION OF SEPARABLE PORTION 1
    
    
    61.6. DEFINITION OF WORK UNDER THE CONTRACT
    
    
    71.7. DEFINITION OF SEPARABLE PORTION 2
    
    
    71.8. SCOPE OF WORK
    
    
    71.8.1. GENERAL SCOPE OF WORK
    
    
    71.8.2. SCOPE OF WORK FOR, AND APPLICABILITY OF, OPERATING TIME
    
    
    111.8.3. SCOPE OF WORK FOR, AND APPLICABILITY OF, CORING OR DRILLING TIME
    
    
    142. PLANT
    
    
    162.1. GENERAL REQUIREMENTS
    
    
    162.2. CORING UNIT
    
    
    162.3. CIRCULATING SYSTEM
    
    
    172.4. BLOWOUT PREVENTION EQUIPMENT (BOPE)
    
    
    182.4.1. BOPE REQUIRED FOR CORE RECOVERY
    
    
    182.4.2. BOP EQUIPMENT REQUIRED FOR ALL CASING AND HOLE SIZES
    
    
    182.4.3. BOPE REQUIRED ON 13-3/8 CASING FOR CORING HOLE AND OPENING OUT TO REQUIRED DIAMETER
    
    
    182.4.4. BOPE CONTROL SYSTEM
    
    
    192.4.5. BOP RUBBERS AND SEALS
    
    
    192.4.6. SPOOLS/FLANGES
    
    
    192.4.7. BOP ASSEMBLY, DISASSEMBLY AND BRACING
    
    
    192.5. AUXILIARY EQUIPMENT
    
    
    192.6. MUD MONITORING EQUIPMENT
    
    
    202.7. CHOKE MANIFOLD
    
    
    20
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 Page No.2.8. CEMENTING EQUIPMENT
    
    
    202.9. FISHING TOOLS
    
    
    202.10. CASING TOOLS
    
    
    212.11. CORE ROD, BHA AND CORE BARRELS
    
    
    212.12. OTHER EQUIPMENT & SERVICES
    
    
    222.13. SPARE PARTS INVENTORY
    
    
    232.14. MATERIALS AND SUPPLIES
    
    
    232.15. RIG TRANSPORTATION EQUIPMENT
    
    
    233. PERSONNEL
    
    
    244. CONSUMABLES
    
    
    264.1. GENERAL
    
    
    264.2. BITS
    
    
    264.3. CORE BARREL AND WIRELINE CONSUMABLES
    
    
    264.4. CORING FLUID CONSUMABLES
    
    
    264.5. BOP CONSUMABLES
    
    
    274.6. CASING THREAD COMPOUNDS
    
    
    274.7. CORE ROD FOR CASING OR SLOTTED LINER
    
    
    275. ACTIVITY RESPONSIBILITY
    
    
    286. PRINCIPALS SUPPLY OBLIGATIONS
    
    
    35Appendix A. Typical drilling and coring programmeAppendix B. Constructional Plant  Equipment Supplied by Contractor
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 1.
    
    DESCRIPTION OF SITE AND WORKS1.1.
    
    SITEThe description of the land to which this specification relates is that portion of Lihir Island, New Ireland, Papua New
Guinea as shown on Figure 1.

The land is occupied and controlled by the Principal under a Mining Lease for the primary purpose of open pit mining and
processing of gold bearing ore. In parts of the site, the ore has to be extracted from formations with geothermal
conditions where ground and fluid temperatures are in excess of 100 oC.The location of the Site where the wells will be drilled and cored are as indicated on Figure 1. Approximately five 1500 m
deep geothermal wells are proposed to be drilled and cored by the Contractors geothermal coring rig with the option (at
the Principals absolute discretion) for an additional five 1500m wells. One workover on an established well drilled under
the Contract may be required. The Principal reserves the right to drill and core additional wells or not drill and core
all of the wells specified and not carry out a workover, for whatever reason. The wells are expected to be drilled and
cored for the purposes of assessing and exploring the extent of the geothermal energy resources within the Site. Based on
other subsurface information, insitu formation temperatures at or near 1500 m below the surface may exceed 200 oC.The other purposes of the geothermal wells covered by the work under the Contract is to
 
    
    produce geothermal fluids with the purpose of sampling the geothermal fluid.
    
    provide access for temperature and pressure gauges over the full length of the well.
    
    obtain downhole geological and permeability information.
 As owner the Principal warrants that he has the authority to deal with the land in the manner described in the work under
the Contract.
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LOGO)
 
 
 Figure 1. Portion Of Lihir Island. The Site Is Bounded By the Thick Blue Line and the Ocean
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 1.2.
    
    WELL NAMESThe wells drilled under this Contract shall be given the name by the Principal.1.3.
    
    UNITS OF MEASURE AND DEFINITIONS1.3.1.
    
    UNITSThe units used for drilling and workovers shall be as follows (where more than one
unit is given, the first unit is preferred):
 Down hole depth and length
    
    metresHole and casing diameter
    
    inches or millimetreDown hole tool diameter
    
    inches or millimetrePressure
    
    kilopascals (kPa) or pounds per square inch (psi)Mass
    
    kilograms (kg) or pounds (lb) or ton (=2000 lb)Mass per unit length
    
    kilograms per metre (kg/m) or pounds per foot (lb/ft or ppf)Volume
    
    litres (l) or US gallons (gal) or barrels (bbls) = 42 US gallonsFlow rate
    
    litres per minute (l/min) or gallons per minute (gpm)Density
    
    specific gravity or kilograms per cubic metre or pounds per gallon (ppg)Force
    
    kilo Newton (kN) or pound force (lbf).Power
    
    kilowatts (kW) or horsepower (HP)Torque
    
    kilonewton metre (kN m) or foot pound (ft lb)
 1.3.2.
    
    DEFINITIONS AND INTERPRETATIONSIn addition to the interpretations given in the General Conditions of Contract and
Special Conditions, the following shall apply to work under the Contract:Rig or drilling rig or coring rig shall mean the entire drilling and coring
equipment and shall be part of the Constructional Plant as defined in the General
Conditions of Contract. The term may refer to one rig or two rigs in the case that two
rigs are supplied under the Contract. In the case of two rigs, reference to rig shall
apply to each rig.Spudding or Spud shall mean the time or instance when the rig and other parts of
the Constructional Plant is in the state of complete readiness, together with all the
necessary services, materials and consumables, to commence drilling a new well and
actually begins drilling the well. In the case of commencing work on an existing well
Spudding or Spud shall mean the time or instance when the rig is in the state of
complete readiness to commence entering the well and actually enters the well. The time
of Spudding or Spud shall be entered on to the daily drilling report.Rig Release shall mean when the rig and other Constructional Plant has completed
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 operations on a well and is deemed by the Principals Representative to be no longer
required for operations and can be dismantled and moved away from the well pad. The
time of rig release shall be entered on to the daily drilling report.1.4.
    
    ACCESS1.4.1.
    
    WHARF FACILITIESWharf facilities for loading and unloading deep water shipping have
been developed on the south side of Luise Harbour (refer figure 1)
at Putput Point. Customs clearing facilities are available at the
port. An over width two lane all weather access road is provided
between the wharf and the Contractors storage areas.1.4.2.
    
    WELL SITESAccess to the well sites will be formed from the established
roading network from the Contractors storage area to the area of
mining operations. The Principal reserves the right to change the
existing access within this area to fit in with mining operations
at the time the designated well is programmed for drilling or
workover.1.4.3.
    
    WATER RESERVOIRWater ways may also be dammed by the Principals Representative for
the purpose of providing a convenient water source for the work
under the Contract. Access to the water supply will be by way of a
formed road. The Principal will provide reasonable assistance in
supplying water to the drill site for remote or high altitude sites
during performance of the Works.1.5.
    
    DEFINITION OF SEPARABLE PORTION 1Separable Portion 1 shall comprise of the provision of a set of standard operating
procedures, preparation at the Contractors home base (including conducting pre
mobilisation repairs, additions or replacements, to the satisfaction of the Principals
Representative), the loading, shipment, assisting the Principal with unloading of
Constructional Plant and consumables from the designated Contractors (and
subcontractors) home location to Lihir Port, assisting the Principal with the
transport from Lihir Port to Contractors storage area or rig site, assembling and
setting up the rig and other Constructional Plant, including those of the
subcontractors, in readiness for Spudding. It shall also include the complete
mobilisation of:
 1.
    
    the Constructional Plant consisting of a fully equipped drilling and
coring rig, all down hole tools, cementing equipment, together with associated
equipment, services and materials as described in Appendix B and meeting the
requirements of Sections 3, 4 and 5 of this Specification.2.
    
    persons and labour (skilled and semi skilled) as specified in
Sections 3.3, 4.3 and 5.3.3.
    
    consumables as specified in Sections 3.4, 4.4 and 5.4 of this
Specification and described in Appendix C of this Specification.4.
    
    the subcontractors plant and equipment, spare parts, materials,
consumables and personnel.5.
    
    where applicable, carry out the Scope of Work as prescribed in
Sections 1.8.
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 
 1.6.
    
    DEFINITION OF WORK UNDER THE CONTRACTThe work under the Contract shall comprise of the supply and setting up of a fully
equipped and manned drilling and coring rig, supply of consumables, rental items,
drilling and coring 5 geothermal exploration wells and potentially working over 1
existing well for one coring rig (or such further wells as directed by the Principal in
accordance with this Contract). The work under the Contract shall each comprise of the
efficient operation and maintenance of all the necessary Constructional Plant,
personnel, services and timely supply of consumables required for the drilling and
completing of each respective Principal nominated geothermal well described in Appendix
A appended to this Specification. Work under the Contract shall also include
 1.
    
    providing and applying all the specified drilling
consumables to drill and complete each respective Principal nominated
geothermal well drilled or worked over.2.
    
    making up, running, landing, and where applicable,
cementing the casing and slotted liner supplied by the Principal.3.
    
    carrying out drilling and coring operations and providing
complete directional, cementing, and mud services.4.
    
    where applicable, carry out the Scope of Work prescribed
in Sections 1.85.
    
    dismantling the rig and other parts of the Constructional
Plant immediately following Rig Release after each respective Principal
nominated geothermal well is drilled or worked over.6.
    
    preparing and transporting this and the Principals
equipment and consumables to the next drilling or workover site or well pad
nominated by the Principal, and7.
    
    assembling and setting up the rig and other
Constructional Plant in readiness for Spudding of the second and each
subsequent well.
 1.7.
    
    DEFINITION OF SEPARABLE PORTION 2Separable Portion 2 shall comprise of the efficient operation and maintenance of all
the necessary Constructional Plant, personnel, and services required for dismantling
and moving off the rig and other parts of the Constructional Plant, including materials
and consignment consumables, immediately following Rig Release from the last well
drilled or worked over. It shall also include carrying out the Balance of the Contract
Works including demobilising from the site.
 1.8.
    
    SCOPE OF WORK1.8.1.
    
    GENERAL SCOPE OF WORK
  1.
    
    where applicable, the work under the Contract, shall be carried out
in accordance with the New Zealand Standard, Code of Practice for Deep Geothermal
Wells, NZS 2403 :
1991, published by the New Zealand Standards Association, and any amendments
(hereafter referred to as NZS2403), relevant API specifications and recommended
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 practices; IADC Code of Practice, relevant Australian Drilling Industry Association
specifications and recommended practices, the Principals policies and procedures,
the PNG mining regulations and the environmental management plan applicable to any
particular area within the Site.2.
    
    transporting, assembling and preparing at the Contractors home base
(including conducting pre-mobilisation repairs to the satisfaction of the
Principals Representative) the Constructional Plant in anticipation of mobilising
to the site;3.
    
    in conjunction with the shipping agent of the Principal, mobilisation
of the Constructional Plant including the arranging and supervision of the
loading, transport from the Port of Origin, unloading at the Lihir Port and
transporting to the Lihir site, and paying for all costs, duties, taxes, and fees
associated with these activities at the Port of Origin;4.
    
    supplying all of the Constructional Plant as specified herein
including Sections 2 and carrying out the Contractors responsibilities as set out
in Section 5;5.
    
    assembling and setting up the Constructional Plant for the purposes
of carrying out coring or work over operations in an efficient and safe manner;6.
    
    setting up a reliable temporary water supply system, including piping
and pumps, from the Principals water reservoir to each rig site or well pad for
coring, quenching, testing or carrying out workovers. In some cases, where coring
operations are in conflict with mining operations, the Principal will supply water
to the Rig;7.
    
    final leveling of the core site to accommodate the coring rig and
equipment;8.
    
    supply of highly competent, skilled, and experienced personnel in
accordance with the requirements of Section 3 to cover all phases of the work
under the Contract;9.
    
    loading, transport and unloading the Constructional Plant and
personnel to the coring locations;10.
    
    supplying, setting up, testing, operating and dismantling diverters
and blow out prevention equipment.11.
    
    during coring operations, achieving more than 95 % core recovery
while on a metre rate basis and in accordance with the Principals coring
programme (Appendix A appended to this Specification).12.
    
    in addition to Principal supplied consumables, supplying and paying
for all consumables for the efficient coring of each hole.13.
    
    under the control, direction and supervision of the Principals
Representative, run casing and slotted liner in accordance with the coring
programme (Appendix A appended to
this Specification);
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 14.
    
    plugging back with cement any wells which are not designated as
permanent wells by the Principals Representative;15.
    
    providing or paying for such materials, equipment, supplies and
services as the Contractor is obliged to provide or pay for in accordance with the
Specification and maintaining adequate stock levels of all such items for the
safe, efficient and uninterrupted performance of the Contractors obligations;16.
    
    providing a full time manager on Lihir in accordance with Section 3;17.
    
    assisting with the moving, setting up, and dismantling the mud,
cementing and logging services;18.
    
    ensuring that subcontractors carry out its responsibilities and
obligations in an efficient and timely manner;19.
    
    providing transportation for all personnel and providing truck
transportation for the Contractors and Principals (including third party)
materials, equipment and consumables to and from each coring or work over
location;20.
    
    being responsible for all stores kept and, where applicable,
accounting for all supplies provided by the Principal at the rig site;21.
    
    providing storage requirements in excess of that provided by the
Principal;22.
    
    providing personnel to reliably extract, handle, label and store
cores during continuous coring operations as directed by the Principals
Representative.23.
    
    assisting with the loading and delivery of core boxes to the
Principals coreshed;24.
    
    providing records (countersigned by the Principals Representative)
as required under the Contract, including sub-contractors, including three copies
of a daily report on coring or workover operations (hereafter called the Daily
Drilling Report) showing the depth of the hole and such other data as required by
the Principals Representative including but not limited to:
 
    
    drill or core string (length, I.D. and O.D. of core rod, core barrel, weight
on bit, rpm, etc.)
    
    bit records (type of bit, dull condition, nozzle sizes, bearings, gauge,
etc.)
    
    coring fluid or mud properties (weight, viscosity, in and out temperature,
etc.)
    
    hydraulics (circulation rates, pressure, pump liner size, length of stroke,
stroke per min, etc.).
    
    materials consumed in coring the well (e.g. fuel, cement, polymers,
bentonite, casing, etc)
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 
 25.
    
    maintaining well control equipment in good operating condition at all
times, testing it as prescribed in the API Standards and Recommended Practices and
shall use all reasonable means to prevent and control blowouts;26.
    
    pre-assembling, disassembling or assembling materials and equipment
to be furnished by the Principals Representative only when and as directed by the
Principals Representative and when the work can be accomplished by normal rig
personnel;27.
    
    turning in to the Principals Representative all delivery tickets
covering any materials or supplies furnished by the Principals Representative or
furnished by vendors for which the Principals Representative is obligated to
reimburse the Contractor. The quantity, description and condition of materials and
services so furnished shall be verified and checked by the Contractor, and such
delivery tickets shall be properly certified as to receipt by the Contractors
representative;28.
    
    moving the Principals consumables and equipment from warehouse to
well site and from well site to well site;29.
    
    observing core rod design operating limits and recommended practices
contained in the manufacturers specification;30.
    
    complying with the Principals Lihir Safe policy;31.
    
    allowing the Principals Representatives safety officer from time to
time to inspect, to test or to require the testing of the Contractors safety
equipment on the site and to report upon procedures used by the Contractor, with a
view to assessing the effectiveness of such safety equipment of procedures in
connection with safety of personnel. For the purposes of this subsection, the
Contractor shall operate, in the manner specified, any equipment on the site to
allow the safety officer to check its performance. The Contractor shall comply
with all reasonable recommendations of the Principals Representative or the
Principals safety officer;32.
    
    reporting to the Principals Representative as soon as practicable
all accidents, incidents or occurrences resulting in unplanned spillages having
environmental consequences, personal injuries or damage to property, arising out
of or during the course of operations of the Contractor or subcontractors of the
Contractor, and when requested shall furnish the Principals Representative with a
copy of all reports made by the Contractor to the Contractors insurer;33.
    
    promptly notifying the Principals Representative of any coring
breaks, loss of circulation fluids or change in lithology.34.
    
    performing work under the Contract involving any downhole operations
on a 24 hour/day, 7 day/week basis.35.
    
    notifying the Principals Representative if fluid flow, abnormal
pressure, loss of circulation, heaving formations, hole collapse, or other similar
condition is encountered
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 which makes coring abnormally difficult or hazardous,
causes sticking of core rod or casing, or other similar difficulty which precludes
coring ahead under reasonably normal procedures. The Contractor shall, in all
cases, immediately make every reasonable effort to overcome the difficulty;36.
    
    avoiding pollution of natural surface water bodies or courses and
damage to any land by reason thereof, to avoid injury to any crops, fences,
livestock, structures, and other property;37.
    
    providing to the rig site in a timely manner all consumables
specified in Section 4;38.
    
    prior to running strings of casing (including perforated core rod),
ensuring each joint is completely drifted with an appropriate sized drift tool.
Drift tools sized in accordance with API Standards shall be provided by the
Contractor;39.
    
    keeping thread protectors on the casing until it is taken from the
racks to be run in the hole, and shall lubricate the thread as it is made up with
a suitable thread compound. Where specified, the Contractor shall apply thread
locking and sealing compounds to threads to the satisfaction of the Principals
Representative. The Contractor shall preserve all protectors and after each well
is completed shall break down all surplus casing and put protectors on same as it
is broken down;40.
    
    maintaining adequate measures of blow out protection while running in
the slotted liner;41.
    
    reciprocating the casing strings to be cemented, up and down as
directed by the Principals Representative;42.
    
    carrying out the balance of the Contract Works including
demobilisation of the Constructional Plant including the core rig, removal of the
Contractors temporary water supply system, clean up of the Site and removal of
temporary structures from each rig site or well pad immediately after the
completion or suspension of activities on the rig site or well pad of the last
well cored or worked over.
 1.8.2.
    
    SCOPE OF WORK FOR, AND APPLICABILITY OF, OPERATING TIMEWhen Operating Time is applicable, it is assumed that the Contractor is not making
progress in advancing the depth of the well. As a general rule, and subject to the
requirements below, it shall cover all tasks associated with work on the well head,
working stuck pipe, running and cementing pipe or liner). When Operating Time is
applicable, the Contractor shall carry out all the work in accordance with the
requirements of this Contract , and shall include, but not be limited to the following:
 1.
    
    preparing tools for running casing, pipe, core rods specifically
intended to cement in the hole or land as slotted liner;2.
    
    supplying and operating cementing mixing and pumping equipment for
carrying out
cementing operations;
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 3.
    
    running casing, pipe, core rods specifically intended to cement in
the hole or land as slotted liner;4.
    
    retrieving or reciprocating casing, pipe, core rods specifically
intended to cement in the hole or slotted liner;5.
    
    mixing and pumping cement from Contractors or Principals equipment
for the purpose of cementing in casing, pipe, core rods as part of the well
construction;6.
    
    waiting on the setting of cement after cementing in casing, pipe,
core rods as part of the well construction;7.
    
    carrying out remedial casing cement jobs as directed by the
Principals Representative;8.
    
    cutting or preparing casing ready for assembling and setting up of
the casing head flange, and assembling the same.9.
    
    when deemed by the Principals Representative as being a serious hole
problem, and not due to the negligence of the Contractor, working stuck pipe or
core rod, cutting, abandoning, cement plugging and side tracking until the
original core depth has been achieved (an example of negligence by the Contractor
is the failure to use or maintain core rods in good condition as evidenced by
regular occurrences of core rod failures downhole or failure of circulating
systems. This provision excludes any time working stuck pipe for the first 1 hour
of any one incident and working stuck pipe as a result of pipe failure),10.
    
    fishing of core rod, drill pipe or coring equipment left in hole and
for which the cause of the fishing is not due to the negligence of the Contractor
(an example of negligence by the Contractor is the failure to use or maintain core
rods in good condition as evidenced by regular occurrences of core rod failures
downhole.)11.
    
    controlling a well under blowout or kick conditions in excess of 1
hour duration for any one incident while the incident occurs during Coring Time.12.
    
    drilling or coring any hardened cement which may exist in the casing
from the shoe up to 5 metres above the upper most casing float collar, or 5 metres
above the casing shoe, if a casing float collar does not exist.13.
    
    drilling or coring any hardened cement which may exist in the casing
from any depth to the casing shoe if the reason for the excess hardened is not due
to failure of Contractors equipment or not due to Contractors negligence,
inattention, not following the program, not following standard operating
procedures and not following directions of the Principals Representative.14.
    
    when loss of circulation occurs, and only when directed to in writing
by the Principals Representative, running in a cementing string, mixing, pumping
and squeezing a cement
plug, waiting, pulling out, tripping in, and drilling or coring out the plug;
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 15.
    
    when a well is designated to be plugged and abandoned by the
Principals Representative, running in a cementing string, mixing, pumping and
squeezing a cement plug, waiting, pulling out, tripping in, and repeating the
process if directed by the Principals Representative;16.
    
    supply of highly competent, skilled, and experienced personnel to
carry out the tasks in Operating Time in an efficient and safe manner;17.
    
    supply of all tools, cranes, hoists, transport and equipment to carry
out the tasks in Operating Time in an efficient and safe manner;18.
    
    loading, transporting and unloading the Principals equipment and
consumables during the course of carrying out the activities covered by this
section.19.
    
    loading, transporting and unloading the Constructional Plant and
personnel during the course of carrying out the activities covered by this
section.20.
    
    working over any well designated by the Principals Representative
and for which specified tasks are not covered by any other applicable time (for
which a separate rate in the Schedule of Rates applies).21.
    
    preparing and installing the diverter system on to a temporary casing
head flange with its upper face horizontal or tilted at any angle up to 60
degrees from the horizontal;22.
    
    preparing and installing the full BOP stack consisting of annular
blow out preventor, pipe ram, valves and Principal supplied master valve (or
double ram), and side valve on to a temporary or permanent casing head flange with
its upper face horizontal or tilted at any angle over 60 degrees from the
horizontal;23.
    
    nippling up and testing the diverter system or full BOP stack,
including valves, and fixing leaks until the tests are successful.24.
    
    nippling down and safely tearing down of the full BOP stack,
including valves, when it can be safely carried out and at the completion of
casing cementing, landing of the slotted liner or plugging a well to the surface.25.
    
    where required, installing and checking the permanent master valve
and side valve;26.
    
    carrying out any other activity as directed by the Principals
Representative and not specifically covered by any other rate in the Schedule of
Rates.27.
    
    carrying out any other activity not specifically covered by any other
rate in the Schedule of Rates.28.
    
    carrying out directional surveys or any other surveys that may be
specified in the coring program.29.
    
    tripping in and out of core rods and core barrels while coring on
Coring Time.
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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 30.
    
    moving of the rig from site to site in the fastest and safest manner
possible. When moving operations temporarily ceases due to, say, darkness, No
Payment time shall apply.31.
    
    half hour at crew changes to cover safety checks, tool box meetings
and rig servicing.32.
    
    when deemed by the Principals Representative as being a serious
formation or downhole problem which prevents the Contractor from achieving an
average of more than 50 metres per continuous 24 hour period while on Coring Time,
then this period shall be on Operating Time until such time that the serious
formation or downhole problem ceases and the coring averaged over any 12 hour
period increases.33.
    
    assembling, making up and tripping (or stripping) in of core barrels
of any sizes specified in the Principals coring programme;34.
    
    drilling with a tricone bit at any angle from 90 to 60 degrees from
the horizontal using mud or water until the target depth specified in the
Principals coring programme, or a depth as specified by the Principals
Representative, has been achieved;35.
    
    hole opening of a cored hole to suit.
   1.
    
    other applicable time applies (for which there is a separate rate in
the Schedule of Rates).2.
    
    following stuck pipe or side tracking, normal coring commences from
the core depth previously reached.3.
    
    the rig or any component is under repair and prevents the normal and
efficient progress of any task covered by operating time. This shall be classified
as Repair Time.4.
    
    the rig has been released.
 1.8.3.
    
    SCOPE OF WORK FOR, AND APPLICABILITY OF, CORING TIME
  1.
    
    preparing tools for any size of hole including the hole for the
conductor pipe.2.
    
    supplying, paying for and being responsible for the following
consumables, including core bits, stabilizers (but not including redressing
costs), core rods, cable, , core barrel parts.
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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 3.
    
    (intentionally blank)4.
    
    cutting core at any angle from 90 to 60 degrees from the horizontal
and ensuring 95 percent, or greater core recovery, on a continuous basis until the
target depth specified in the Principals coring programme, or a depth as
specified by the Principals Representative, has been achieved;5.
    
    where the Principals coring programme permits, or when the
Principals Representative directs for safety reasons, coring a small diameter
hole at any angle from 90 to 60 degrees from the horizontal the target depth
specified in the Principals coring programme, or a depth as specified by the
Principals Representative, has been achieved,6.
    
    mixing and pumping coring fluids, monitoring and cooling return
fluids, attempting to seal any losses (and not stopping to seal the losses) as
these are encountered as specified in the Principals coring programme;7.
    
    coring with water (and additives which the Contractor may recommend
providing these are approved by the Principals Representative) below the
Production Casing shoe (4-1/2 casing in Figure 2 in Appendix A).8.
    
    being solely responsible for maintaining a good coring performance or
coring progress including being responsible for overcoming any difficult coring
conditions, working tight rods or drill string, cores, or core barrels, and minor
fishing operations (caused by negligence of Contractor);9.
    
    tripping (or stripping) in and tripping (or stripping) out of
wireline to set or retrieve core inner tube necessary to carry out coring
operations.10.
    
    preparing casing, core rods or pipes, and slotted liner on the racks,
measuring, drifting and fitting casing accessories in anticipation of running the
same into the hole.11.
    
    being responsible for controlling flow backs and kicks, and where the
Contractor has difficulty in controlling a well, or is deemed by the Principals
Representative to be having difficulty in controlling a well, carry out the
directions of the Principals Representative to bring the well under control or to
continue coring in a safe and controlled manner (applicable for any incident up to
1 hour duration).12.
    
    loading, transporting and unloading the Principals equipment and
consumables during the course of carrying out the activities covered by this
section.13.
    
    loading, transporting and unloading the Constructional Plant and
personnel during the course of carrying out the activities covered by this
section.
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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 
 
 1.
    
    other applicable time applies (for which there is a separate rate in
the Schedule of Rates).2.
    
    tripping out of the coring assembly has commenced after the target
depth specified in the Principals coring programme, or a depth as specified by
the Principals Representative, has been achieved.
 2.
    
    PLANT2.1.
    
    GENERAL REQUIREMENTSThe Contractor shall provide the following plant, materials and
equipment that shall form part of the Constructional Plant. Each item
shall be in good working condition and able to perform to the
manufacturers specification. The Contractor shall take cognizance of
the Sites isolation and shall carry adequate spare parts or spare
units. Where any item of plant, material or equipment is not working,
is unusable, or is not working efficiently, the Contractor shall
repair or bring it into a usable condition immediately. When
Operating Time is being applied on any hole or well, the Principals
Representative may direct that Repair Time is invoked if he
determines that an item or unit is requiring repair and is critical
to carrying out the work under the Contract or he determines that the
Contractor has:
 1.
    
    ignored notices issued by the Principals Representative;
or2.
    
    shown a lack of urgency, to repair any item, regardless
of whether or not it is critical to carrying out the work under the
Contract.
 2.2.
    
    CORING UNIT
 1.
    
    The Contractor shall provide one (1) self contained self propelled or
trailer mounted (with prime mover), diamond core rig and ancillary equipment rated
to an NRQ coring depth of 1500 metres taking into account that, the holes will be
spudded from vertical to 60 degrees below horizontal.2.
    
    The rig shall be capable of coring any size of hole up to PQ size,
drilling or hole opening up to 8-1/2 diameter, and handling core rods from NRQ up
to PQ size taking into account any hole will be partially or completely filled
with fluids other than typical coring fluid including, but not limited to water,
steam, air, nitrogen, other liquids, gases, or solids.3.
    
    The coring unit major components shall have worked for at least 18
months within the last five years, preferably in geothermal coring.4.
    
    The coring unit shall be equipped with hydraulic core rod makeup and
breakout with a minimum torque capacity of 18,000 ft lb, hydraulically operated
rod clamp and drop-in
slips to hold rod clamp.5.
    
    The coring unit shall have a derrick capable of handling 6 m long
core rods and rated to a minimum pull up capacity of forty thousand pounds (40,000
lbs.) and a minimum pull down capacity of fifteen thousand pounds (18,000 lb).6.
    
    The coring unit must be hydraulically operated using a minimum 320 hp
(at 2000 rpm)
 Page 16 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 diesel engine to power the hydraulics.7.
    
    The coring unit must have a top-drive hoisting assembly capable of
producing a minimum rotary torque of 3,700 ft lb between 5 to 100 rpm, 350 ft lb
at 1000 rpm and 200 ft lb at 1700 rpm at 100 % efficiency.8.
    
    The clear working height of derrick or mast and substructure must be
arranged such that it permits the making up, breaking out, handling and running in
of 10 m lengths, or lesser length, API casing and steel pipe from 3-1/2 to
13-3/8 outside diameter up.9.
    
    The coring unit must be capable of drilling or hole opening with API
range 2 drill pipe and collars, and bits and hole openers up to 8-1/2 diameter10.
    
    The rig must be a jackup type and the sub-structure or jack-up height
shall have a distance of at least 2.5 metres from ground level to the underside of
the rod clamp/ slip table floor beams to accommodate a diverter system and full
BOP stack at any angle from vertical to 25 degrees from vertical (Figure 3 of
Appendix A).11.
    
    The sub structure shall have provision for the efficient installation
and, when in place, bracing, of a diverter system and full BOP stack at any angle
from vertical to 30 degrees from vertical (Figure 3 in Appendix A).12.
    
    The coring unit shall be equipped with a wireline winch with a
minimum full drum pull capacity of 750 lb at 280 metres per minute. The drum shall
include at least 1500 m of a minimum 3/16 inch wire rope.13.
    
    The derrick and wireline assembly must have sufficient room to
accommodate the wireline blow out preventer.14.
    
    The coring unit shall be furnished with adequate sectionalised
matting to suit the substructure, pumps etc.15.
    
    The coring unit shall be provided with all the necessary safety
equipment, fittings and devices in compliance with NZS2403 and API Standards and
Recommended practices and Australian coring industry standards.16.
    
    The rig must be capable of rigging up and down in a short time and
move off one well site and on to another in no more than three days.
 2.3.
    
    CIRCULATING SYSTEM
 1.
    
    The coring unit shall be equipped with at two (2) independent duplex
or triplex mud pumps each rated to 150 horsepower, complete with a pulsation
dampener, shear relief valves, powered by independent drives and each capable of
pumping 350 gallons per minute at 500 psig in tandem and 125 gpm at 1000 psi.
Each pump to be fully dressed with pistons and liners.2.
    
    The coring unit shall be equipped with a coring fluids pump system in
addition to the above pumps.3.
    
    The coring unit shall be equipped with a coring fluids circulating
system suitable for use with water based coring fluids with a minimum pit capacity
as follows:
 a.
    
    Active mud system  50 bbl. minimumb.
    
    Pre-hydration capacity  10 bbl minimumc.
    
    Water tank capacity  50 bbl. minimum
 4.
    
    The water tank shall be manifolded to one duplex or triplex mud pump
so that water can be pumped to the full capacity of the pump at any time.5.
    
    All tanks must be skid mounted and plumbing for easy connect and
disconnect.6.
    
    The Contractor shall provide an accurate diagram of the mud system
showing all valves, lines, pumps, and other equipment.
 Page 17 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 
 2.4.
    
    BLOWOUT PREVENTION EQUIPMENT (BOPE)2.4.1.
    
    BOPE REQUIRED FOR CORE RECOVERYA wireline blow out preventer shall be provided. It shall be capable of sealing off
around the wire completely at full pressure (minimum 500 psi) or at a controlled
pressure to allow stripping of the wireline. An in-string core rod manual valve (or
similar) shall be provided to allow for the recovery of core when the inside of the
core rod is under pressure. The Contractor shall also provide a drop down core rod
string BOP, or equivalent non-return valve.
 2.4.2.
    
    BOP EQUIPMENT REQUIRED FOR ALL CASING AND HOLE SIZESAs a minimum, the Contractor shall provide the following BOP equipment. Small size
BOPs (7-1/6 ID) may be supplied but this must be in addition to that specified below.
If smaller BOPs are used, the Contractor shall also comply with the relevant
requirements set down below, e.g. and annular and gate ram type must be provided in
addition to that specified below. The rig shall be capable of having the full BOP stack
fit beneath the rig floor, and when installed, it must be fully functional:
 1.
    
    11 ID x 2000 psi annular blow out preventer.2.
    
    11 ID x 2000 psi double or single gate ram type blow out preventer.3.
    
    11 ID x 2000 psi diverter spool4.
    
    All necessary crossover, spacer spools and bracing to mount BOPE on
all casing sizes, at angles of 90 to 60 degrees from the horizontal to be supplied
by Contractor5.
    
    Choke and kill valves and lines as shown in Figure 3 of Appendix A.
If hoses are used, they must be rated to withstand high temperature geothermal
conditions.6.
    
    Rubber components of all the above shall be rated to withstand high
temperature geothermal conditions7.
    
    temporary flanges for welding by the Contractor to all casing sizes.8.
    
    All additional necessary crossover and spacer spools or adaptor
flanges to rig up on the Principal furnished permanent 4-1/16 ANSI Class 600
Master Valve or Principal supplied 6 casing head flange.
 2.4.3.
    
    BOPE REQUIRED ON 13-3/8 CASING FOR CORING HOLE AND OPENING OUT TO REQUIRED DIAMETER
 1.
    
    13-5/8 ID x 1000 psi (minimum) annular blow out preventer (this item
is optional. The Principal has a 13-5/8 ID x 2000 psi annular blow out preventer
and well control unit. This will be available to the Contractor subject to the
Contractor operating and maintaining it at its cost. Spare parts including
replacement rubber element will be to the account of the Principal).2.
    
    12.375 ID x 1000 psi (minimum) diverter spool3.
    
    All necessary crossover, spacer spools and bracing to mount BOPE on
13-3/8 casing, at angles of 60 degrees to be supplied by Contractor4.
    
    Diverter and kill valves and lines as shown in Figure 3. If hoses are
used, they must be rated to withstand high temperature geothermal conditions
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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 5.
    
    Rubber components of all the above shall be rated to withstand high
temperature geothermal conditions6.
    
    temporary flange for welding by the Contractor to the 13-3/8 casing.
 2.4.4.
    
    BOPE CONTROL SYSTEMA BOP control system shall be provided satisfying the following minimum requirements.
The control system must:
 1.
    
    have a primary and secondary or backup system such that if the
primary system fails, the secondary or backup system is fully functional.2.
    
    have a secondary or backup system with enough capacity to close and
open one preventer ram, wireline BOP and annular element one time.3.
    
    have enough capacity to close the diverter and open the diverter
(choke) valve one time with the primary system out of service.4.
    
    close all BOP equipment within 30 seconds.5.
    
    capable of repeating the above operations within 15 minutes6.
    
    include one or more remote BOP Control stations. NOTE: The diverter
shall be designed so that the choke valve opens prior to diverter closing.
 2.4.5.
    
    BOP RUBBERS AND SEALSThe Contractor shall provide seals to meet the following requirements:
 1.
    
    the ram BOPs to be equipped with blind, 2-7/8, 4-1/2, 5, NQ, and
HQ ram assemblies.2.
    
    rubber components of all the above shall be rated to withstand high
temperature geothermal conditions.3.
    
    all seals in hydraulic circuit and bonnet seals to be rated to
withstand high temperature service.4.
    
    Contractor to supply and install at the Principals cost all
replacement wireline BOP rubbers, ram rubbers and annular BOP packing units
approved by manufacturer for the Contractors equipment:
 2.4.6.
    
    SPOOLS/FLANGESThe Contractor shall provide all spools and flanges necessary to
install BOP equipment as directed by Principals Representative.
Refer to Figure 3 in Appendix A.2.4.7.
    
    BOP ASSEMBLY, DISASSEMBLY AND BRACINGThe Contractor shall provide devices or assembly cradles for the
efficient assembly and disassembly of BOP equipment at any angle
from vertical to 25 degrees from vertical. The Contractor shall
provide guylines, props, supports, turnbuckles and anchors to brace
BOP
when installed. The bracing shall allow for any thermal growth or contraction in the
casing to which the BOP or diverter is attached.2.5.
    
    AUXILIARY EQUIPMENT
 1.
    
    Rig Motors: Caterpillar or equivalent units. All units must meet or
exceed appropriate
 Page 19 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 Papua New Guinea regulatory agency requirements for noise
control, spark control, and exhaust emissions.2.
    
    Coring unit to have one (1) generator unit to supply sufficient AC
electricity to the coring unit and ancillary equipment.3.
    
    coring unit shall have installed floodlights and fluorescent type for
the substructure, rig floor and derrick.4.
    
    the contractor shall supply sufficient mobile lighting plants.
 2.6.
    
    MUD MONITORING EQUIPMENT
 1.
    
    One centrifugal pump for continuous filling of the hole during trips.2.
    
    Contractor shall furnish one (1) flow sensor with rig floor
indicator, recorder and alarm to monitor flow line flow rate.3.
    
    two (2) calibrated continuous temperature monitoring gauges.4.
    
    Contractor shall furnish mud testing kit for density and viscosity.
 2.7.
    
    CHOKE MANIFOLD
 1.
    
    Contractor shall furnish one actuated valve and one manual valve on
the choke line outlet. Valves to be furnished with geothermal trim, including
Stellite gates. Actuator to be suitable for high temperature geothermal service.2.
    
    Contractor to furnish one manual valve and one check valve on coring
spool kill line outlet, which shall be hooked up to pump from the duplex or
triplex mud pump or cementing unit pump. Valves to be furnished with geothermal
trim, including Stellite gates.3.
    
    One (1) 0-300 psi pressure gauge.4.
    
    Choke manifold shall be designed to return fluid to mud system or
vent line to sump.5.
    
    Contractor to furnish manifold and lines for pumping through kill
line.
 2.8.
    
    CEMENTING EQUIPMENTThe Contractor shall supply a minimum of 1500 m of CHD76 cementing string/ work over
string. The coring unit shall be equipped with a cement batch mixing and pumping tank
with a minimum 15 barrel capacity suitable for mixing and pumping cement slurries with
densities up to 15 lb/gal. The tank must be equipped with a motorised paddle agitator
or jet mixer (equivalent of a mud gun). It must also be equipped with a hopper
arrangement for cutting cement sacks and jet mixing cement. The Contractor shall
provide a pump for pumping the cement down hole with pressure / flowrate
characteristics equivalent to the duplex or triplex pump mentioned in section 2.3. The
Contractor shall provide all steel pipe, chiksans, valves and other equipment rated to
a minimum of 1000 psi for pumping cement down hole. He shall also supply suitable
cementing heads for each core rod, 4-1/2 casing, 7 and 9-5/8 casing.2.9.
    
    FISHING TOOLSThe coring unit to be equipped with all first run fishing tools for
the Contractors core string(s) (drill pipe, drill collars, core
rods, core barrels, etc.), which shall include, but not limited to
core rod cutters, overshots, taper taps, magnets, mills and spears.
This shall include grapples (for spears and overshots) sized to
catch worn internal and external diameters.
 Page 20 of 46




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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 2.10.
    
    CASING TOOLSThe Contractor shall furnish complete casing handling tools for the Principals
3-1/2 liner, 4-1/2 (flush joint, bevel ended and welded), 7 and 9-5/8 casing
(buttress threaded coupling)2.11.
    
    CORE ROD, BHA AND CORE BARRELSThe Contractor shall furnish the following core string items;
 1.
    
    1500 metres NRQ core rods, 3 m lengths, in good working condition,
suitable for safe and efficient coring operations.2.
    
    1500 metres HQ core rods, 3 m lengths, in good working condition,
suitable for safe and efficient coring operations.3.
    
    800 metres PQ or HWT core rods, 3 m lengths, in good working
condition, suitable for safe and efficient coring operations.4.
    
    two (2) each NQ core barrels, (minimum) 3 m lengths, suitable for
safe and efficient coring operations.5.
    
    two (2) each HQ core barrels, (minimum) 3 m lengths, suitable for
safe and efficient coring operations.6.
    
    two (2) each PQ core barrels, (minimum) 1.5 m and 3 m lengths,
suitable for safe and efficient coring operations.7.
    
    for each core barrel, inner barrels and all accessories for running,
breaking, retaining and retrieving inner barrel.8.
    
    for each inner barrels, core extraction systems acceptable to the
Principals Representative.9.
    
    250 metres 2-7/8 or 4.5, Range 1, 10.40 lb/ft Premium class grade E
drill pipe. Pipe shall not be plastic coated. Drill pipe shall be maintained
within the specifications of Premium class in accordance with API RP7G.10.
    
    Five (5) each 4-3/4 OD Range 1 drill collars.11.
    
    Four (4) each 6 OD Range 1 drill collars.12.
    
    One lot of drill pipe, drill colar and core rod crossover subs and
bit subs.13.
    
    5-5/8, 8-1/2 and 12-1/4 hole openers.14.
    
    Two each integral string stabilisers for 5-5/8, 8-1/2 and 12-1/4.15.
    
    One each integral near bit stabilisers for 5-5/8, 8-1/2 and
12-1/4.16.
    
    Bit breakers and gauge rings for 5-5/8, 8-1/2 and 12-1/4 tri-cone
rock bits or hole openers.17.
    
    The above core string items to be complete with all handling tools,
thread protectors, lifting subs, safety clamps, hydraulic rod breakout Rigid
Stilsons (or equivalent) and tongs.18.
    
    The above bit subs shall be bored back for a float. The Contractor
shall provide drill pipe floats at its cost suitable for use in high temperature
environments. The Contractor shall maintain an adequate stock of spare parts for
each float.19.
    
    Foot clamps and slips shall be provided for all casing, core rods,
drill pipe and drill collars.20.
    
    Elevators and lifting gear shall be provided for all casing, core
rods, drill pipe and drill collars.
 Page 21 of 46




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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 21.
    
    The Contractor shall provide and use a thermal grade drill pipe dope
conforming to API specifications. Zinc based pipe dope shall not be used. If
copper based pipe dope is used the Contractor shall ensure that all threads on new
tool joints avoid the use of copper or a copper based product as a corrosion
protection coating or plating.
 2.12.
    
    OTHER EQUIPMENT & SERVICES
 1.
    
    The Contractor shall provide a reliable temporary water supply
system. This shall include two independent powered pumps, each capable of pumping
350 gpm at 100 psi., a minimum of 1000 m of 4 OD water line. The Contractor shall
install this equipment at a site designated by the Principals Representative and
at the expense of the Contractor. Also the Contractor shall be responsible for
operating, maintaining and removing the system under the direction and at the
expense of the Contractor.2.
    
    The Contractor shall furnish one (1) 50 gpm recirculating pump with
hoses to recycle back to the coring fluid tanks any fluids which may accumulate in
the sump.3.
    
    The Contractor shall furnish one (1) complete set of well deviation
(azimuth and inclination) survey instruments and accessories which shall include
recorders to cover 0° to 60° in appropriate stepped ranges, wire line unit with
1500 metres of steel line and counter and instrument retrieving tools. The
instrument shall be provided with a heat shield rated for temperatures up to 220
o C and with an outside diameter small enough to allow the complete
tool to be run inside all tubulars and cross overs supplied by the Contractor.4.
    
    The coring unit shall include the following instrumentation (and
maintained in working condition):
 
 5.
    
    The coring unit shall have rig fuel day tanks plus storage of 5,000
litres at or near the rig site. The Contractor shall be responsible for obtaining
access to the Principals diesel bulk storage area and organising its fuel
delivery schedules. Loading, transporting and unloading of the fuel to the rig
site or the Contractors storage areas shall be the Contractors responsibility.
The Contractor shall note and take into
account the relevant sections of the Principals environmental plan pertaining to
storage and use of fuel.6.
    
    The coring unit shall have one (1) unit complete with all necessary
spares, tools and equipment for rig repair and maintenance.7.
    
    The Contractor shall furnish wooden walkways in wet weather.8.
    
    The Contractor shall supply H2S detection and alarm systems. In
particular the Contractor shall provide, install and maintain:
 Page 22 of 46




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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 
 
    
    a wind sock in two elevated locations (mast and at the edge of the core
site),
    
    a reliable 2 channel gas analyser unit with audible and visual alarm
systems connected to all weather sensors.
    
    provide a set of 2 x15 minute self contained breathing packs in a weather
proof storage area located about 25 metres away from the cellar.
    
    provide a set of 2 x 1 hour self contained breathing packs in a similar
location.
   
    
    engage an expert technician to regularly calibrate and maintain the fixed
and mobile gas monitoring units.
    
    train personnel in evacuation techniques and use of the self contained
breathing packs.
    
    produce and submit a written set of procedures to cover this training.
    
    conduct regular drills.
 9.
    
    The coring unit shall have welding equipment:
One (1) mobile 300  400 amp. electric arc welder complete.
One (1) set of cutting torches complete with oxygen and acetylene equipment.10.
    
    The coring unit shall have at least 300 m of new coring line on a
spool.11.
    
    The coring unit shall be equipped with a minimum of 2 steel
fabricated pipe racks.12.
    
    The coring unit shall be equipped with a complete cellar pump.
 2.13.
    
    SPARE PARTS INVENTORYThe Contractor shall ensure that it has sufficient spare parts and supplies for a
continuous coring and workover programme. The Contractor shall provide to Principals
Representative each calendar month a complete and accurate inventory of spare parts.2.14.
    
    MATERIALS AND SUPPLIESThe Contractor shall provide:
 1.
    
    drill pipe and core rod thread lubricants, lubricating oils,
hydraulic oils and accumulator oils required for Contractors equipment.2.
    
    all drill pipe and core rod thread protectors and lifting eyes plus
drill pipe wiper rubbers.3.
    
    welding units and supplies including rods, oxygen and acetylene.4.
    
    all general rig materials and supplies.5.
    
    all consumables specified as Contractor supply.6.
    
    one eye wash facility.7.
    
    at the rig site, all first aid medical supplies and all prescription
and non-prescription medications for the Contractor, Principals Representative
and Principals third party contractor personnel.
 2.15.
    
    RIG TRANSPORTATION EQUIPMENT
 Page 23 of 46




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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 The Contractor shall supply all trucks or mobile units to transport
the rig, other Constructional Plant, materials and personnel for rig
moves and for any other transport specified to be the Contractors
responsibility. The Contractor shall also provide an all terrain
fork lift or loader with a minimum 3 tonne capacity. The Contractor
shall also provide adequate ancillary transportation for the
Principals consumables and support services and personnel movement.3.
    
    PERSONNELThe Contractor shall provide a normal complement of coring and supervisory personnel,
including replacement, subsistence, wages, benefits, accommodations and all other
costs. The Contractor shall comply with the Principals training and localisation
policy whereby preference for any employment position is given to Papua New Guinea
citizens. This training and localisation policy is attached as Appendix C of the
Special Conditions. However, in Table 3-1 below, reference to Expatriate Staff should
not preclude the position being filled by any suitably qualified and experienced Papua
New Guinea citizen from within the Contractors existing work force. The Contractor
shall provide to the Principals Representative curricula vitae (CVs), contact details
of referees and proof of stated qualifications for all positions designated with a
Yes in the CV column. These details shall be furnished and approval must be sought
from the Principals Representative before any personnel are mobilised to the site for
the first time.
 Table 3-1. Contractors Personnel on Site
 POSITION
    
    NUMBER
    
    MINIMUM
    
    CVREQUIRED
    
    QUALIFICATIONS ANDIN LIHIR
    
    EXPERIENCEExpatriate staffCoring superintendent
/ Contractors 
Representative
    
    1
    
    3 years as coring
superintendent or
supervisor, geothermal
experience essential, BOP
certificate/ ticket no
older than 1 year,
experience with use of
all fishing equipment.
    
    YesDriller
    
    2
    
    3 years as a diamond
coring driller,
geothermal experience
essential, BOP
certificate/ ticket no
older than 1 year
    
    YesAssistant Driller
    
    2
    
    3 years as a diamond
coring derrickman or
assistant driller,
geothermal experience
preferred,
    
    YesMechanic /Electrician
    
    2Open PositionsFloormen
    
    4
    
    1 year as floorman on a
diamond corerig floor.Roustabouts
    
    4Welder (certified)
    
    1
    
    Certified (refer note 4)
 Page 24 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
  1.
    
    where applicable all designated rig personnel shall have
successfully completed a certified Well Control School within the last year. This
certification shall be maintained throughout the term of this Contract including
any extensions. All costs are for Contractors account.2.
    
    All designated expatriate positions shall be filled by people fluent
in speaking and writing the English language. They must have the specified
experience with geothermal operations and be familiar with the coring unit.3.
    
    The Contractor shall be responsible for ensuring that Contractors
personnel are certified in accordance with Papua New Guinean legal requirements
for each designated job function.4.
    
    The rig welder shall hold a valid certificate conforming to ASME
Boiler and Pressure Vessel Code and the Internationally Recognised Code  Section
IX -Qualification Standard for Welding and Brazing Procedures, Welders, Brazers,
and Welding and Brazing Operators.5.
    
    The superintendent shall be the Contractors representative on Lihir.
He shall also be responsible for ensuring that the responsibilities and
obligations of any sub-contractors are carried out efficiently and in a timely
manner. He shall also be the safety and environmental representative for the
Contractor and shall be fully conversant with the requirements of the Principals
Safety Policy and Environmental Management Plan.6.
    
    The Contractor shall observe the Papua New Guinea Mining regulations
which governs the working hours of personnel. Personnel are allowed to work 12
hour shifts for 13 days continuous. On the 14 th day the person must have a 24
hour break.7.
    
    Where floormen are otherwise engaged, roustabouts shall be available
during daylight hours (and where required, for night duties) to carry out duties
for the Principals Representative which will include, but not limited to:
 
    
    assisting with cutting bentonite sacks or coring fluid additives
    
    assisting with core extraction, handling and storing
    
    assisting with cutting cement sacks and cement additives
    
    assisting with measurement of casing on the pipe racks
    
    assisting with the assembly of the Principals equipment or consumables
    
    assisting with the cleaning of equipment or consumables
    
    general labouring
 Page 25 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 4.
    
    CONSUMABLES4.1.
    
    GENERALAs this Contract is a based on a cored metre rate, the Contractor shall be responsible
for the supply at his cost of all necessary consumables for coring and operating blow
out equipment. Although the Contractor is responsible for selecting the consumables,
full specifications, features, and material safety data sheets shall be furnished to
the Principals Representative for his approval before any new consumable is shipped
from the Contractors port of origin. The Principals Representative reserves the right
to withhold approval of any consumable which he considers unsuitable or unsafe for the
conditions at the site. The Contractor shall immediately provide details of
alternatives for the Principals Representative approval.4.2.
    
    BITSThe Contractor shall supply all coring bits at his cost. If, in the Principals
Representative opinion, a core bit wears out or is damaged due to formation conditions
before it has achieved a total of 100 m, cumulatively, then this bit shall be to the
cost of the Principal.The Contractor shall be responsible for choosing the type and quantity of bits to stock
at Lihir. Unless otherwise approved by the Principals Representative, the Contractor
shall, for safety reasons, core the uppermost section (30 -50 metres) of each hole
using an HQ core bit and then open out to the specified diameter (refer Figure 2 of
Appendix A). Below the shoe of the first cemented in casing string, the Contractor may
use a core bit with a diameter equal to the hole diameter specified in Figure 2.
Alternatively, the Contractor may core with the core bit size specified in Figure 2 and
open up to the required diameter. In all cases, the Contractor shall be responsible for
the coring penetration rate, coring efficiency and blow out safety. The Contractor
shall furnish the Principals Representative with details of the bits he proposes to
use and the overall rate of making each hole size.4.3.
    
    CORE BARREL AND WIRELINE CONSUMABLESThe Contractor shall supply all core barrel and wireline consumables including
stabilisers at his cost.4.4.
    
    CORING FLUID CONSUMABLESDuring the application of Coring Time, the Principals Representative will provide
Wyoming bentonite, caustic soda, and other mud products available to the Principal, at
no cost to the Contractor. At its cost, the Contractor shall supply all coring fluid
chemicals, low temperature and high temperature polymers, lubricating additives and
lost circulation material. Coring fluid chemicals shall be environmentally safe and
shall not contain any hydrocarbons.The Contractor and the Principals Representative shall work together to enable the
Contractor to confer directly with the Principals mud supplier(s) to provide possible
optimisations of mud products for use in the Works. Any cost savings achieved through
this optimisation must be passed onto the Principal.
 Page 26 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 4.5.
    
    BOP CONSUMABLESThe Contractor shall supply all BOP consumables including those for the wireline BOP at
the Principals cost.4.6.
    
    CASING THREAD COMPOUNDSThe Contractor shall provide
 1.
    
    high temperature Teflon based casing thread sealant2.
    
    high temperature thread locking compound for thread locking casing,
casing collars and shoes.
 All compounds shall be manufactured in accordance with the API Specifications.4.7.
    
    CORE ROD FOR CASING OR SLOTTED LINERAt the cost of the Principal, the Contractor shall provide used HQ
core rod, or equivalent size pipe, for use as casing or slotted liner
for leaving in the hole as cemented in string or as slotted liner. He
shall also provide slotted NQ rod for situations where the HQ core
rod is unable to reach the specified due to hole problems. The core
rod shall be in reasonable condition with good connections and at
least 70 % of the original wall thickness. The Contractor shall also
slot the HQ designated by the Principals Representative as being
slotted liner.The Contractor shall also supply float collars equipment for the HQ rod used as
cementing in string. The float collars shall be made of material which can be easily
cored through with an NQ core bit.
 Page 27 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 5.
    
    ACTIVITY RESPONSIBILITY
 ITEM
    
    DESCRIPTION
    
    PROVIDED BY:
    
    ACCOUNT OF:1.
    
    Coring, completion, repair, workover and abandonment of holes and
wells in accordance with the Contract.
    
    C
    
    PRIG INSPECTION2.
    
    Rig up and testing of Contractors coring unit to Principals
satisfaction, allowing for access for extensive third party
inspection, prior to mobilisation, at Port of Origin or Contractors
yard.
    
    C
    
    C3.
    
    Rig modifications required to bring coring unit into compliance with
the Specifications.
    
    C
    
    C4.
    
    All rig inspection including meal and transportation expenses.
    
    P
    
    P5.
    
    Transportation to visit rig or rig components from nearest accessible
area to remote areas, if necessary.
    
    C
    
    CMOBILISATION AND DEMOBILISATION6.
    
    All transportation costs to mobilise the Constructional Plant and
consumables to the first location and demobilise from the last
location. To and from the Port(s) of Origin.
    
    C
    
    C7.
    
    On demobilisation, clean up of Contractors storage area and last rig
location areas of any supplies and rubbish.
    
    C
    
    C8.
    
    All fees, registration payments and permits required by government
agencies for Contractor to operate in Papua New Guinea.
    
    C
    
    C9.
    
    Value added taxes, provided Contractor is a compulsory VAT collector
assessed by Papua New Guinea for work under the Contract.
    
    C
    
    C10.
    
    Customs, duties and all other charges on importation of Contractors
equipment and supplies into Lihir Island.
    
    C
    
    C11.
    
    Passport processing, immigration/quarantine fees, work permits, visas
and other documents required by Contractors personnel including all
agent expenses.
    
    C
    
    C12.
    
    Rig modifications related to compliance with governmental or local
regulations.
    
    C
    
    CCORING LOCATION AND SITE AREA13.
    
    Licenses and consents to perform the operations, including coring,
completion, suspension or abandonment.
    
    P
    
    P14.
    
    Licenses and consents to perform the operations, including access
road and location land use permits.
    
    P
    
    P15.
    
    Site preparation including leveling, grading and compaction of
location.
    
    P
    
    P16.
    
    Main core water supply from Principals reservoir to rig water tanks.
    
    C
    
    C
 Page 28 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 ITEM
    
    DESCRIPTION
    
    PROVIDED BY:
    
    ACCOUNT OF:17.
    
    Hook up of main water supply to Core site and all Core site water
supply connections, pumping and distribution to tanks.
    
    C
    
    C18.
    
    Auxiliary water supply system to each well site and provide, install,
operate and maintain pump at a water source close to rig site.
    
    C
    
    C19.
    
    Remove Contractors water line and pump after it is no longer
required for the coring unit.
    
    C
    
    C20.
    
    Construct reserve pit or sump and reparation of it at end of well.
    
    P
    
    P21.
    
    Construct cellar, if required.
    
    P
    
    P22.
    
    If required, furnish conductor casing, temporary pipe for coring and
head flanges or flow line.
    
    C
    
    C23.
    
    Cut to height and weld on any temporary casing head flange or flow
line.
    
    C
    
    C24.
    
    Furnish level area for Contractors storage and workshop facilities.
    
    P
    
    P25.
    
    Prepare area for and rig up Contractors storage and workshop
facilities.
    
    C
    
    C26.
    
    Supply potable water to core sites.
    
    C
    
    C27.
    
    Maintain roads for coring operations.
    
    P
    
    P28.
    
    Maintain core site, and reserve pit (sump) for coring operations.
    
    C
    
    C29.
    
    Supply sectionalized matting for sub-base, pumps, and ancillary
equipment.
    
    C
    
    CCOMMUNICATION SYSTEMS30.
    
    Supply and maintain a minimum of three portable Tait radio/ phones,
complete with battery chargers (Principals Representative to provide
trunk numbers for each radio).
    
    C
    
    CBASE OFFICE AND STORAGE31.
    
    Contractor office in storage area.
    
    C
    
    C32.
    
    Storage, open area and covered warehouse, for Contractors equipment,
material and supplies at storage area outside the Site (limited to
items for short term storage awaiting delivery to/from coring unit).
    
    C
    
    C33.
    
    Limited open storage area for Contractors equipment, material and
supplies at the Site (limited to items for short-term storage
awaiting delivery to/from coring unit).
    
    P
    
    P34.
    
    Storage on site and where necessary, storing under cover, for
companys equipment, materials and supplies.
    
    C
    
    CMATERIALS HANDLING35.
    
    All loading, unloading, and materials handling of Principal and Third
Party equipment, materials, consumables and supplies outside the Site
area.
    
    P
    
    P
 Page 29 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 ITEM
    
    DESCRIPTION
    
    PROVIDED BY:
    
    ACCOUNT OF:36.
    
    All loading, unloading, and materials handling of Principal,
Contractor and Third Party equipment, materials, consumables and
supplies within the Site area.
    
    C
    
    C37.
    
    All loading, unloading and materials handling of Contractors items,
materials, consumables and supplies outside the Site area.
    
    C
    
    CTRANSPORTATION38.
    
    All transportation costs to mobilise rig to first location, move
between locations, and demobilise rig from last location.
    
    C
    
    C39.
    
    Excluding air transportation between Cairns and Lihir, transportation
of Contractors personnel within and outside Site area.
    
    C
    
    C39A
    
    Transportation of Contractors Personnel between Cairns and Lihir
    
    P
    
    P40.
    
    Transportation of Principals items, materials, consumables and
supplies within the Site area.
    
    C
    
    C41.
    
    Transport of fuel to Contractors bulk storage tank including bulk
storage at rig site.
    
    C
    
    P42.
    
    Transport of fuel or reticulation from Contractors bulk storage tank.
    
    C
    
    C43.
    
    If required, transport of potable water to coring unit .
    
    C
    
    CMAINTENANCE, SUPPLIES AND SPARES44.
    
    Disposal to rig site sump of Principals coring, drilling or hole
opening waste (including cuttings) from or around rig site.
    
    C
    
    C45.
    
    Containers for and disposal outside of the Site area of Contractors
waste from anywhere within the Site area.
    
    C
    
    C46.
    
    Medical equipment/supplies  supplied for all personnel at rig site
or on the coring unit.
    
    C
    
    C47.
    
    Nitrogen for pre-charging accumulator unit.
    
    C
    
    C48.
    
    All consumable oxygen/acetylene and other gasses as well as welding
rods and associated equipment.
    
    C
    
    CACCOMMODATIONS49.
    
    Accommodations on Lihir including lodging, meals, housekeeping, and
laundry for Contractors personnel engaged on work under the
Contract.
    
    P
    
    PCORING SERVICES50.
    
    Coring, working over, coring, completion, and abandonment if
necessary, of wells.
    
    C
    
    P51.
    
    While on Coring Time, working stuck rod or pipe (up until such time
Principals Representative determines that Operating Time shall
apply), fishing, and curing losses.
    
    C
    
    C
 Page 30 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 ITEM
    
    DESCRIPTION
    
    PROVIDED BY:
    
    ACCOUNT OF:52.
    
    Working stuck rod or pipe, cutting and extracting core rod, plug and
abandon core rod or drill pipe, cement plugging and side tracking,
all while on Operating Time.
    
    C
    
    P53.
    
    Providing cementing heads for Principals casing and tubulars.
    
    C
    
    P54.
    
    Re -coring, re-cementing, working over, re-coring, completion, and
abandonment of wells if this work is due to Contractors negligence.
    
    C
    
    C55.
    
    Well logging and well testing.
    
    P
    
    P56.
    
    When approved by Principals Representative, supply of coring fluid
materials and mud engineering services.
    
    C
    
    P57.
    
    Mixing of mud materials and chemicals.
    
    C
    
    C58.
    
    Cement, additives and cementing accessories, float equipment, and
centralisers, for primary and remedial cementing of all cemented
casing or pipe sizes.
    
    P
    
    P59.
    
    Cementing mixing tank, pumping lines, valves, cement pump and
cementing heads for all Contractors core rod and tubulars.
    
    C
    
    C60.
    
    Coring services, including the provision and operation of core
barrels, catchers, other necessary equipment, core barrel
consumables, handling tools, packaging and labeling.
    
    C
    
    C61.
    
    Casing running services and supplying casing running tools.
    
    C
    
    C62.
    
    Single shot survey tool (direction and azimuth), heat shield,
recorders, retrieving tools.
    
    C
    
    P62a.
    
    Single shot survey tool retrieving shackles and slickline unit with
depth counter.
    
    C
    
    C63.
    
    Mud testing kit (temperature gauge, density and viscosity only).
    
    C
    
    C64.
    
    All standard fishing tools for fishing Contractors downhole
equipment.
    
    C
    
    C65.
    
    Tubular Inspection of Contractors core string at commencement of
contract and during the Contract.
    
    C
    
    P66.
    
    Tubular inspection of Contractors core string in addition to those
listed above.
    
    P
    
    P67.
    
    Magnetic particle inspection of pipe handling equipment including
elevators, pipe tongs, and elevator links prior to start of first
well and at six month intervals thereafter. Forms part of
Mobilisation.
    
    C
    
    PMATERIALS AND SUPPLIES68.
    
    Casing and casing accessories (except for core rod).
    
    P
    
    P69.
    
    Cement, bentonite and cement additives.
    
    P
    
    P70.
    
    Temporary starting flange for all casing strings except permanent
wellhead.
    
    C
    
    C
 Page 31 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 ITEM
    
    DESCRIPTION
    
    PROVIDED BY:
    
    ACCOUNT OF:71.
    
    Cleaning solvents, soft rope, rags etc.
    
    C
    
    C72.
    
    Deleted73.
    
    All lubricants and hydraulic fluids required for Contractors
equipment.
    
    C
    
    C74.
    
    Subject to approval by Principals Representative, all lubricants
suitable for high rotational coring in geothermal conditions.
    
    C
    
    P75.
    
    Drill pipe and core rod tool joint compound suitable for geothermal
use.
    
    C
    
    C76.
    
    Casing sealant and casing thread protectors.
    
    C
    
    P77.
    
    Coring and coring bits, accessories, etc for standard coring
conditions.
    
    C
    
    C78.
    
    Repairs, consumables, spares and replacement parts for Contractors
fishing tools damaged or lost as a result of fishing.
    
    C
    
    PCORING UNIT AND CORING EQUIPMENT79.
    
    Complete coring unit capable of carrying out the program as specified
by the Principal.
    
    C
    
    C80.
    
    All personnel and supervision necessary to operate and maintain the
coring rig and auxiliary equipment.
    
    C
    
    C81.
    
    All fishing tools normally used to recover Contractors drill pipe,
core rods, and downhole tools.
    
    C
    
    C82.
    
    Two duplex or triplex mud pumps (not part of the cementing equipment)
    
    C
    
    C83.
    
    Mud tanks, agitators, etc.
    
    C
    
    C84.
    
    Replacement and repair of Contractors down hole tools damaged as a
result of fishing.
    
    C
    
    P85.
    
    Replacement and repair of Contractors down hole tools damaged by any
cause other than fishing.
    
    C
    
    C86.
    
    Bell nipple, flow line and all connections.
    
    C
    
    C87.
    
    Rig foundation wooden mats.
    
    C
    
    C88.
    
    Electric fixtures and bulbs.
    
    C
    
    C89.
    
    Rig maintenance.
    
    C
    
    C90.
    
    All specified drill pipe, core rods, all subs and pup joints.
    
    C
    
    C91.
    
    Casing and tubing handling tools (tongs, elevator and slips) for the
ranges of casings specified in the Coring Programme.
    
    C
    
    C92.
    
    Welding for rig use.
    
    C
    
    C93.
    
    All BOP equipment, coring spools, temporary casing flanges, adapter
flanges, reduction spools, diverter spools and, where
    
    C
    
    C
 Page 32 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 ITEM
    
    DESCRIPTION
    
    PROVIDED BY:
    
    ACCOUNT OF:applicable,
equipped with high temperature rubber components and with a minimum
bore compatible with Principals coring programme.94.
    
    Maintenance and repair of Contractors BOP.
    
    C
    
    C95.
    
    Sets of seals and other spare parts for Contractors BOP equipment.
    
    C
    
    C96.
    
    First brand new element and rubber components for Contractors BOP
equipment.
    
    C
    
    C97.
    
    Replacement annular element and rubber components for Contractors
BOP equipment after first element damaged or worn out.
    
    C
    
    P98.
    
    Repair of any Contractor-furnished wellhead equipment, core through
equipment due to wear or damage for any reason.
    
    C
    
    C99.
    
    Double stud adaptor flanges, including ring gaskets, between
Contractors flanges and 4-1/16 ANSI 300 Master Valve.
    
    C
    
    C100.
    
    Provision of tarpaulins or temporary cover for cement and mud
chemicals at rig site.
    
    C
    
    C101.
    
    Materials or services for any permanent installation that will remain
part of well i.e. flanges, master and side valves.
    
    P
    
    P102.
    
    Installation of any permanent fixtures that will remain part of well
i.e. flanges, master and side valves.
    
    C
    
    P103.
    
    Kill line, choke system and high temperature valves.
    
    C
    
    C104.
    
    Reserve pit (sump) pump unit, suction and discharge pipe, power
supply, with capability and capacity to pump sump fluids back to mud
tanks.
    
    C
    
    C105.
    
    Operation and maintenance of all rig site pumps.
    
    C
    
    C106.
    
    Specialist welding services for installing coring flanges to casing.
    
    C
    
    P107.
    
    Roustabouts and floormen, labor and transport services to handle the
Principals filled coring boxes.
    
    C
    
    C108.
    
    Adequate sound mufflers and spark arresters for Contractors prime
movers.
    
    C
    
    C109.
    
    Drill pipe and core rod wipers.
    
    C
    
    C110.
    
    Drill pipe and core rod cementing heads.
    
    C
    
    C111.
    
    Casing cementing heads for Principals casing.
    
    C
    
    P112.
    
    Elevators, tongs and handling tools for all sizes of casing.
    
    C
    
    C113.
    
    Deleted114.
    
    Replacement of core string components after inspection if shown to be
below acceptable coring standards.
    
    C
    
    C115.
    
    Replacement or repair of any downhole tools when lost-in-hole or
damaged during fishing operations.
    
    C
    
    P
 Page 33 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 ITEM
    
    DESCRIPTION
    
    PROVIDED BY:
    
    ACCOUNT OF:116.
    
    Mud pump fluid and power end parts and consumables.
    
    C
    
    C117.
    
    Spares for choke manifold. Goods to be suitable for geothermal use.
    
    C
    
    C118.
    
    Spares for diverter valves.
    
    C
    
    C119.
    
    Maintenance, spare parts and consumables for all Contractors
equipment unless otherwise provided herein.
    
    C
    
    CWELL EQUIPMENT120.
    
    Permanent casing head and side outlet valves, and master valves.
    
    P
    
    P121.
    
    If required, ot hole retrievable test packer for installing or
replacing well head gear on an active geothermal well.
    
    P
    
    P122.
    
    All wellhead ring joint gaskets, including those required for
installation between items of the Contractors equipment.
    
    C
    
    C123.
    
    All consumables used in the construction of the coring location.
    
    P
    
    PSAFETY124.
    
    First aid, equipment and medical supplies at the coring unit for all
Contractors, Principals and third party services personnel.
    
    C
    
    C125.
    
    Qualified medic and medical supplies at Site area.
    
    P
    
    P126.
    
    Safety hats, safety boots, gloves for Contractors personnel and all
other safety equipment necessary.
    
    C
    
    C127.
    
    Fire fighting equipment as required complying with an acceptable
international standard and any relevant government regulations.
    
    C
    
    C128.
    
    H2S system hookup, installation, maintenance, and training.
    
    C
    
    CFUEL AND LUBRICANTS129.
    
    Fuel for coring unit, transportation, equipment and for use inside
Site area only.
    
    P
    
    P130.
    
    Lubricants for all Contractors equipment
    
    C
    
    C131.
    
    Storage of fuel for coring unit, transportation equipment at rig site.
    
    C
    
    C
 
 Page 34 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 
 6.
    
    PRINCIPALS SUPPLY OBLIGATIONSThe Principal will provide at its cost the following materials, services and equipment
 1.
    
    Cement, bentonite, caustic soda, and other mud products available to
the Principal, 7 and 4-1/2 casing, permanent well heads, mud engineering
expertise, casing accessories, and fuel for completing the wells and workovers not
covered by the work under the Contract.2.
    
    Access to approximately 400 m2 of storage area for the Contractors
use.3.
    
    Medical facilities in accordance with Appendix D of the Special
Conditions.4.
    
    Accommodation, laundry and meals for the Contractors personnel
engaged in the work under the Contract and in accordance with policies and Camp
rules set down in Appendix B of the Special Conditions.5.
    
    Diesel fuel at its depot at the site.6.
    
    Carrying out those obligations specified as the Principals
responsibility or cost as indicated in Section 5.7.
    
    Providing access roads and a flat compacted well pad for each well
site, each pad measuring 30 metres by 30 metres The Contractor shall note that
access roads will be surfaced with rock and gravel, all weather and may have
grades as steep as 25% (i.e. 1m vertical for every horizontal 4 m). Providing
plant to tow contractors equipment as required at no additional cost.8.
    
    Providing a water reservoir with sufficient capacity to deliver 350
gpm continuously throughout the year9.
    
    Preparing the detailed coring programme for each well.10.
    
    Providing handheld H2S crickets at cost to the Contractor. Contractor
shall pay for any lost units that are replaced.11.
    
    Providing heavy equipment required to expedite moves on steep access
roads at no cost to the Contractor.
 
 Page 35 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 
 APPENDICES
 TO THE
 SPECIFICATIONS
 Page 36 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 APPENDIX A
 TYPICAL DRILLING AND CORING PROGRAMME
 Page 37 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 1. SUMMARY DATA
 Well name
    
    GW xxAngle and Azimuth
    
    Well may be drilled at any angle up to 60 degrees from
the horizontalCasingsConductor
    
    13-3/8 (provided by Principal) to 3 m and cementedSurface Casing
    
    9-5/8 BTC to 60 m in 12-1/4 hole and cementedAnchor casing
    
    6-5/8 BTC in 8-1/2 hole and cemented, 200 m to 300 m
measured depthProduction casing
    
    4-1/2 OD schedule 40 pipe butt welded and cemented to
surface from 400 to 700 m measured depth.Liner
    
    Perforated 3.5 / 4.5 casing or other as determined by
final open hole sizes and advised by Principal. Run from
12 m above the shoe of the 4-1/2 to TD (not cemented)Rotary drilling
    
    From surface to 430m unless there are significant losses
after 300m it may be cored from here. Sections below
this will be cored, with some sections opened out with
rotary drilling BHAsTotal depth
    
    Approximately 1500 m measured depth
    2. OBJECTIVES
  3. SITE
  4. WELL TRACK AND SURVEYS
  Page 38 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
  5. GEOLOGY
 Structural Targets and Permeability
    Depth below sea
    
    BPD Temperature
    
    Depth below sea level -
    
    BPD Temperaturelevel - metres
    
    Degrees C
    
    metres
    
    Degrees C100
    
    180
    
    500
    
    250200
    
    210
    
    600
    
    260300
    
    230
    
    700
    
    270400
    
    240
    
    800
    
    280
  Water Sensitive Clays
  Formation Temperatures and Pressures
  6. HOLE AND CASING PROGRAMME
     Page 39 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LOGO)
       7. WELLHEADS
      8. CEMENTING
  Recipe
    
    A Class Cement, 1% BWOC Prehydrated Bentonite, 6.44 gps mix water.Slurry weight
    
    14.5 ppgThickening Time
    
    3 hrs 43 min at 35o C.Slurry Yield
    
    1.32 cu ft per sack. (4.26 sacks per bbl slurry)
      Page 40 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LOGO)
 Recipe
    
    A Class Cement, 4% BWOC Prehydrated Bentonite, 13.19 gps mix water.Slurry weight
    
    12.0 ppgThickening Time
    
    4 hrs 15 min at 35o C.Slurry Yield
    
    2.22 cu ft per sack. (2.53 sacks per bbl slurry)
   9. DRILLING FLUIDS PROGRAMME
 General
   12-1/4 and 8-1/2
    
    Deeper Cored HoleRotary hole
    
    Polymer MudMarsh Funnel Viscosity (sec/qt)
    
    Gel Mud
    
    35-40Maximum Mud weight (ppg)
    
    Gel Mud
    
    8.4-8.6Plastic viscosity (cp)
    
    Gel Mud
    
    As Low as possibleYield point
    
    Gel Mud
    
    >10Gel strength
    
    Gel Mud
    
    >2/<10Filtrate loss (cc/30min max)
    
    Gel Mud
    
    NCHTHP fluid loss, cc/30 min.
    
    Gel Mud
    
    NCWall cake, 32 nds of inch.
    
    Gel Mud
    
    NCpH
    
    11 - 12
    
    9.5 - 10.0Maximum Sand content
    
    0.30%
    
    0.10%
 8-1/2 Inch Diameter Hole.
   
  Page 41 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LOGO)
   Records
  10. CORES AND CUTTING SAMPLES
    11. PRESSURE AND BOP TESTS
      12. PROGRAMME
 1.
    
    Rig up at the designated well. Mix mud and be prepared to start drilling.2.
    
    If not pre-installed, install and cement the 13-3/8 conductor.3.
    
    Wait on cement, drill out just past the shoe of the conductor and re-cement if there is
leakage past the shoe.4.
    
    Rotary drill 8-1/2 hole to the approximate 9-5/8 casing shoe depth plus 1 m of rat
hole. Drill a short distance (6 m +/-) past any losses then seal with LCM or cement.
Continue drilling to depth. Open hole to 12-1/4. Cement all new major losses encountered
in this hole section. Alternatively, the Contractor can drill the 12-1/4 hole in one step.5.
    
    Condition mud and run 9-5/8 casing. Circulate and reciprocate casing until mud is low
gel and a
minimum temperature.6.
    
    Cement surface casing back to surface and WOC.7.
    
    When the cement is hardened at surface, back off landing length leaving a coupling at
ground level.
 Page 42 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LOGO)
 8.
    
    Screw on 10 class 600 casing stub with flange.9.
    
    Install the 11 BOP.10.
    
    Function and pressure test the wellhead.11.
    
    Rotary drill 8-1/2 hole to the next casing depth plus a 2 m rathole.12.
    
    Seal losses as they occur.13.
    
    Circulate the hole to a minimum temperature and condition the mud to low gel strength
and water loss.14.
    
    POOH and run the 6-5/8 casing using a landing length to set the upper coupling just
above ground level.15.
    
    Circulate the casing to a minimum temperature and cement it back to surface. Displace
the cement to 12 m above the casing shoe with mud or water.16.
    
    Release the pressure from the casing and check that the float shoe is holding. If not
then maintain a pressure inside the casing until the cement is firm.17.
    
    While waiting on cement disconnect from the bottom flange, lift and drain the wellhead.18.
    
    Cut the 9-5/8 casing at ground level and remove the coupling from the 6-5/8 casing.19.
    
    Install the casing head flange and 7-1/16 or 11 BOP on to the 6-5/8 casing.20.
    
    Function and pressure test the wellhead.21.
    
    Drill to within 5 m of the casing shoe and pressure test.22.
    
    Drill 1 metre below the bottom of the previously cored hole to expose new formation and
undertake a formation leak off test (FLOT) using water.23.
    
    Core and then open out to 5-5/8 hole to the 4-1/2 casing shoe depth plus 2 m. Seal
loss zones as they are encountered.24.
    
    Circulate the hole to a minimum temperature and condition the mud to low gel strength
and water loss.25.
    
    Stand the hole without circulation but with continued pipe movement for 6 hours and
check for flowback. If there are losses then pump down the back fill while waiting. If
the well does flow then further treatment will be required to allow time to POOH and start
to run the welded 4-1/2 casing26.
    
    POOH and run the 4-1/2 casing. As the wellhead will remain on the 6-5/8 casing, a
landing length is not required.27.
    
    Circulate the casing to a minimum temperature and cement it back to surface. Displace
the cement to 12 m above the casing shoe with mud.28.
    
    Release the pressure from the casing and check that the float shoe is holding.29.
    
    While waiting on cement drain and flush the wellhead.30.
    
    Lift the BOP stack and cut the 4-1/2 casing at the top of the 6 casing head flange.31.
    
    Reinstall the BOP wellhead onto the 6-5/8 casing and pressure test.32.
    
    Drill out cement to 5 m above the shoe and pressure test.33.
    
    Drill out shoe and previously drilled hole plus 1 metre.34.
    
    Complete a FLOT test.35.
    
    Core HQ, reducing to NQ if necessary to final TD.36.
    
    Maintain water flow to backfill at all times while tripping and running/pulling core
barrel. Use wireline BOP when pulling inner tube.37.
    
    Circulate hole clean.38.
    
    Obtain a final directional survey and use a maximum reading thermometer to obtain a
temperature from TD.39.
    
    Run 3-1/2 perforated liner and land to cover from TD back inside the 4-1/2 casing.40.
    
    POOH the landing string and run in the hole with a NQ scraper string and clean liner
for completion tests.41.
    
    Carry out completion tests.42.
    
    Install permanent side valve and 6 Class 600 master valve.43.
    
    Rig release and rig down.
 Page 43 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LOGO)
 
 
 Figure 2. Typical well profile
 
 Page 44 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LOGO)
 
 
 Figure 3. Set up of BOP for drilling below 100 m (approximately). A smaller diameter BOP components
may be used for smaller holes
 
 Page 45 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification
    
    (LIHIR LOGO)
 
 APPENDIX b
 CONSTRUCTIONAL PLANT
 EQUIPMENT SUPPLIED BY CONTRACTOR
 Page 46 of 46




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification  Appendix B Constructional Plant Supplied by Contractor
    
    (LIHIR)
 PART IV : SPECIFICATION  APPENDIX B CONSTRUCTIONAL PLANT SUPPLIED BY CONTRACTOR
  Page No.1. PART IV : SPECIFICATION  APPENDIX B CONSTRUCTIONAL PLANT SUPPLIED BY CONTRACTOR
    
    
    21.1. DRILLING AND CORING UNIT AND ANCILLIARY EQUIPMENT
    
    
    21.2. BITS TO BE SUPPLIED.
    
    
    201.3. RIG SITE LAY-OUT
    
    
    201.4. RIG SERVICES CONSUMABLES
    
    
    211.5. PERSONNEL
    
    
    21
 Page 1 of 21




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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification  Appendix B Constructional Plant Supplied by Contractor
    
    (LIHIR)
 1.
    
    PART IV : SPECIFICATION  APPENDIX B CONSTRUCTIONAL PLANT SUPPLIED BY CONTRACTOR1.1.
    
    DRILLING AND CORING UNIT AND ANCILLIARY EQUIPMENT
 DRILLING UNIT
 Name of Drill Unit (Rig):
    
    UDR 1500Drilling Unit type
    
    Hydraulic Top DriveOwner:
    
    ContractorNumber of days (from rig release to spud) to move rig,
equipment and consumables from one well pad to the next
well pad separated by up to 1.0 km distance.
    
    Three daysNumber of truckloads for Contractors coring unit,
materials and other equipment only.
    
    TenIf rig is truck or trailer mounted
    
    NA- minimum turning radius
    
    NA- length of trailer
    
    NA- overall length (truck, trailer, mast laydown)
    
    NARig history- date of manufacture
    
    2000- place of manufacture
    
    Perth- date of last major overhaul
    
    2002- components overhauled
    
    Mast- metres cored in last 18 months
    
    800 meter hole- deepest hole cored in last 18 months
    
    NQ- core size for deepest hole
    
    Auckland- location of coring during last 18 months
    
    New Zealand Northland.- current location of coring rig
 SECTION A: FUEL CONSUMPTION
 NO
    
    DESCRIPTION
    
    QUANTITY OF DIESEL(LITRES/HR)A1.
    
    Coring unit during normal coring operations:
    
    60A2.
    
    Coring unit during maximum coring operations (pumps operating):
    
    166
 Page 2 of 21




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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification  Appendix B Constructional Plant Supplied by Contractor
    
    (LIHIR)
 SECTION B: MAJOR DIMENSIONS
 NO
    
    DESCRIPTION
    
    QUANTITY / DETAILSB1.
    
    Vertical height of main deck to derrick floor/ coring table above ground
level:
    
    2metersB2.
    
    Vertical height of top of mast or derrick above derrick floor/ coring
table:B3.
    
    Maximum length of core rod that can be hoisted into mast, made up, run
into hole through a diverter or full stack BOP and rotated.
    
    12mB4.
    
    Maximum length of drilling assembly (drill pipe, collars, stabilisers)
which can be hoisted into mast, made up, run into hole through a
diverter or full stack BOP and rotated (details shall be provided on
methods for dealing with assemblies in holes which are angled at 30
degrees from the vertical).
    
    9m
Will be assisted
with the top of
mast hydraulic
boom/winchB5.
    
    Maximum length of casing which can be hoisted into mast, made up and run
into hole (details shall be provided on methods for dealing with casing
in holes which are angled at 30 degrees from the vertical).
    
    10 mB6.
    
    Overall made up vertical height of diverter stack above casing head
flange.
    
    Approximately 2mB7.
    
    Overall made up vertical height of the full BOP stack above the casing
head flange.
    
    2mSECTION C: COMMUNICATIONS EQUIPMENTC1.
    
    Portable Tait radio telephone (3 sets must be included)- Manufacturer and type
    
    Tait- Number
    
    3 plus baseSECTION D: RIG TRANSPORTATION EQUIPMENTD1.
    
    Four Wheel Drive Passenger Vehicle 1 (must be included)- Make
    

    4x4 Toyota- Model
    
    2000- Age (years)
    
    5- Condition
    

GoodD2.
    
    Four Wheel Drive Passenger Vehicle 2- Make
    
    Toyota- Model
    
    4x4 van- Age (years)
    
    5- Condition
    
    Propose to bring 4x4 motor bike with trailer for mechanic
 Page 3 of 21




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification  Appendix B Constructional Plant Supplied by Contractor
    
    (LIHIR)
 D3.
    
    Support Truck (must be included)- Make
    
    Details to be provided by Contractor no later than 30 June 2007.- Model- Age (years)- ConditionD4.
    
    Support Trailer- Make
    
    Details to be provided by Contractor no later than 30 June 2007.- Model- Age (years)- ConditionD5.
    
    Crane 1 (optional)- Manufacturer
    
    Details to be provided by Contractor no later than 30 June 2007.- Type/model- Boom length
    
    (PROVISIONAL SUM)- Typical lift capacity at specified radii(a) main hoist(b) whip line- Maximum rated load capacityD6.
    
    Fork Lift (must be included)
    
    Hire on Island (Caterpillar 920 with fork reach attachment)- Manufacturer- Type- Power source- Handling capabilitiesSECTION E: POWER EQUIPMENTE1.
    
    Rig Diesel Engines (must be included)- Manufacturer
    
    Mercedes MTU- Type- Output (HP) at RPM
    
    326@1800rpm- Fuel consumption (average operating)
    
    60 litres per hr
 Page 4 of 21




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification  Appendix B Constructional Plant Supplied by Contractor
    
    (LIHIR)
 E2.
    
    Hydraulic pump (must be included)
    
    Commercial P365- Manufacturer
    
    A10v0140- Type
    
    Brueninghaus piston & triple vane pumps- Output (KW)E3.
    
    Generators (must be included)- Manufacturer
    
    Kubota AC/DC- Type
    
    10 KVA- Output (KW)E4.
    
    AC Distribution/Transformer (must be included)- Manufacturer- Type- Input/output- Major units poweredE5.
    
    Planned Maintenance System (must be included)
    
    Daily, weekly, monthly check sheets.- Type- Time since PMS started on coring unitSECTION F: COMPRESSED AIR SYSTEMF1.
    
    Air Compressors- Manufacturer- Type- Output pressure- Output volumeF2.
    
    Main Air Receivers- CapacityF3.
    
    Pressure Regulating System- Manufacturer- TypeF4.
    
    Air Filters- Manufacturer
 Page 5 of 21




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification  Appendix B Constructional Plant Supplied by Contractor
    
    (LIHIR)
 - TypeSECTION G: WATER PUMPSG1.
    
    Water supply pumps and pipeline (must be included)- Pipeline size and connecting system
    
    4 100 psi- Number of Valves and pressure rating
    
    Two- Number of Pumps
    
    150 litres centrifical- Fuel consumption per day
    
    Details to be provided by Contractor no later than 30 June 2007.- Manufacturer and type- Output and pressure (maximum head)SECTION H: FIRE & SAFETY EQUIPMENTH1.
    
    Escape Breathing Apparatus (must be included)(a) Coring location for use in H2S conditions
    
    4 BA units Drager(b) Self contained breathing apparatus (limited duration)
    
    4H2.
    
    H2S and CO2/O2 Monitoring Equipment (must be included)- Fixed- type and manufacturer
    
    Drager 2 channel- type of alarms- number of sensors- Hand held- number
    
    Crikets- type and manufacturer
    
    Audio- type of alarms- number of sensorsSECTION I: MEDICAL FACILITIESI1.
    
    Rescue stretchers (optionalI2.
    
    Location of first-aid boxes/supplies
    
    RigI3.
    
    Emergency shower and eye bath (must be included)
    
    As per spec
 Page 6 of 21




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification  Appendix B Constructional Plant Supplied by Contractor
    
    (Company Logo)
 SECTION J: DRILLING RIG
 J1. Mast (must be included)- Manufacturer and type
    
    _UDR- Mast pull out capacity
    
    12.5m_- Mast length (extended)
    
    14.6m- maximum angle of deviation from vertical
    
    45degrees- rod storage facility included (Y/N)
    
    No- Rod handling system
    
    RacksJ2. Hydraulic Rotation Head (must be included)- Manufacturer and type
    
    KL900- Rated depth with HQ core rods
    
    1500 meters- Motor power output (Nm)
    
    118rpm@15785Nm- Power source
    
    Hydraulic- RPM range
    
    176 to 1476- Load  or pull back rating (static)
    
    21000kg- Load  or pull back rating (rotating)
    
    21000kg- Pull down rating (static)
    
    26000kg- Pull down rating (rotating)
    
    26000kg- Torque (continuous)
    
    1210Nm_to_8750Nm- Torque (intermittent)- Cooling system type
    
    Water- Swivel manufacturer
    
    Longyear- Swivel internal diameter
    
    75mm- Swivel pressure rating
    
    1500psi- No. of gears
    
    3- Output torque ft lb at 100 RPM
    
    6417- Output torque ft lb at 500 RPM
    
    1600- Output torque ft lb at 1000 RPM
    
    893- spindle ID
    
    70mm- maximum RPM
    
    1476- length of head traverse
    
    8.5m- rate of head traverse down
    
    Infinitely variable- rate of head traverse up
    
    900mm/secJ3. Main Hoist (must be included)- Manufacturer and type
    
    KL1500
 Page 7 of 21




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification  Appendix B Constructional Plant Supplied by Contractor
    
    (Company Logo)
 - Rated depth with HQ core rods
    
    1500m- Drive
    
    Dual_volvo_F11-150_hydraulic_motors- Auxiliary brake
    
    Dual spring applied hydraulic releasebrakes.- Emergency back-up system for auxiliary brake- Maximum input HP
    
    22000_kg- Maximum pull
    
    820mm_per_second.- pull speed at maximum load
    
    Hydraulic over cable- pull speed at minimum load
    
    26000- pull down system
    
    12.5m- maximum pull down load
    
    _9m_- rod pull lengthJ4. Wireline Hoist (must be included)- Coring line size and length
    
    8mm_x_2000m- Core retrieval line size and length
    
    8mm_x_2000m- full drum pull rate for core retrieval line
    
    666_kg- bare drum pull rate for core retrieval line
    
    2663_kg
 SECTION K: PUMPS AND CORING FLUID SYSTEM
 K1. Coring/ drilling fluid Circulating Pump 1 (must be included)- Manufacturer
    
    National- Type
    
    USA- Drive
    
    Duplex- Maximum input horsepower per pump
    
    Hydraulic- Liner sizes available
    
    300- Pulsation dampeners (1 per pump)
    
    8inch- Reset relief valves (1 per pump)
    
    1- Isolation value
    
    1 rated to 1500psiHigh pressure ball valve- Type- Pressure rating
    
    1200psi- Pre-charge pumps
    
    NA- Manufacturer- Size- Motor RPM/HP- Impeller sizes available
 Page 8 of 21




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification  Appendix B Constructional Plant Supplied by Contractor
    
    (LOGO)
 -
    
    Filters prior to pre-charge pumpsK2. Coring /drilling fluid Circulating Pump 2 (must be included)
    
    OPI-
    
    Manufacturer
    
    350D triplex-
    
    Type
    
    Diesel-
    
    Drive
    
    Clutch and transmission.-
    
    Maximum input horsepower per pump 300
    
    8x6-
    
    Liner sizes available
    
    1-
    
    Pulsation dampeners (1 per pump)
    
    1-
    
    Reset relief valves (1 per pump)shear pin type.
    
    Ball valve-
    
    Isolation value
    
    2610-
    
    Type
    
    2610psi-
    
    Pressure rating-
    
    Pre-charge pumps-
    
    Manufacturer-
    
    Size-
    
    Motor RPM/HP
    
    1-
    
    Impeller sizes available
    
    Ball valve-
    
    Filters prior to pre-charge pumps
    
    1000psiK3. Coring Pump (must be included)-
    
    Manufacturer
    
    FMC-
    
    Type
    
    Triplex-
    
    Drive
    
    Hydraulic-
    
    Maximum input horsepower
    
    Hydraulic drive-
    
    Pressure rating
    
    1000psiK4. Active Mud Tanks (must be included with diagram)Size and capacity tank 1 27218 litres
    
    6.3m_x_2.4_x_1.8_27218ltSize and capacity tank 2 12528 litres
    
    5.8_x_2.4_x_0.9_12528_ltSize and capacity tank 3 12528 litresSize and capacity water tank 27218 litres
    
    12528ltAgitator hydraulic
    
    27218 liters-      Manufacturer
    
    Hydraulic-      HorsepowerPump
 Page 9 of 21




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification  Appendix B Constructional Plant Supplied by Contractor
    
    (LOGO)
 -      Manufacturer
    
    All pumps connected via manifold to tanks.-      Model-     Type-     Maximum input horsepower-     Pressure ratingSECTION L: BLOWOUT PREVENTION AND WELL CONTROLL1. 11 BOP Stack (must be included)-
    
    Height of stack (include dimensioned diagram)
    
    3000psi-
    
    Maximum working pressure-
    
    Temperature rating of elements and sealsL2. First 11 Ram Preventer (must be included)-
    
    Manufacturer
    
    Shaffer-
    
    Type
    
    mechanical-
    
    Nominal size
    
    11_inch-
    
    Pressure rating
    
    3000psi-
    
    Temperature rating of seals-
    
    Connection details-      bottom
    
    Flange-      top-
    
    Locking mechanism
    
    Details to be provided by Contractor no later than 30 June 2007.-
    
    Rams installed-
    
    Spare rams-
    
    Side outlets-      Size-      Connection details-      Pressure rating-
    
    Locking mechanism- primary- secondaryL3. Second 11 Ram Preventer (optional)-
    
    Manufacturer-
    
    Type-
    
    Nominal size-
    
    Pressure rating-
    
    Temperature rating of seals
 Page 10 of 21




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification  Appendix B Constructional Plant Supplied by Contractor
    
    (LOGO)
 - Connection details- bottom- top- Locking mechanism- Rams installed- Spare rams- Side outlets- Size- Connection details- Pressure rating- Locking mechanism- primary- secondaryL4.
    
    11 Annular Preventer (must be included)
    
    Details to be provided by Contractor no- Manufacturer
    
    later than 30 June 2007.- Type- Size- Pressure rating- Temperature rating of annular element- Temperature rating of seals- Connection details- Top- BottomL5.
    
    Kill/Choke Lines (must be included)
    
    Valves and lines will be supplied
as per- Outlet position
    
    specification- Outlet size- Outlet pressure ratingL6.
    
    Kill/Choke Valves (bi-directional) (must be included)
    
    Valves and lines will be supplied
as per- Manufacturer
    
    specification- Type- Size- Temperature rating choke valves- Temperature rating of other valves- Pressure rating- Hydraulic actuator- Manufacturer
 Page 11 of  21




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Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification  Appendix B Constructional Plant Supplied by Contractor
    
    (LOGO)
 - Type- Pressure rating- Temperature rating- Position of valve in lineL7.
    
    7-1/16 BOP Stack (optional)- Height of stack (include dimensioned diagram)- Maximum working pressure- Temperature rating of elements and sealsL8.
    
    7-1/16 First Ram Preventer (optional)- Manufacturer- Type- Nominal size- Pressure rating- Temperature rating- Connection details- bottom- top- Locking mechanism- Rams installed- Spare rams- Side outlets- Size- Connection details- Pressure rating- Locking mechanism- primary- secondaryL9.
    
    7-1/16 Second Ram Preventer (optional)- Manufacturer- Type- Nominal size- Pressure rating- Temperature rating- Connection details- bottom
 Page 12 of  21




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification   Appendix B Constructional Plant Supplied by Contractor
    
    (LOGO)
 -  top-  Locking mechanism-  Rams installed-  Spare rams-  Side outlets-  Size-  Connection details-  Pressure rating-  Locking mechanism-  primary-  secondaryL10.
    
    Kill/Diverter Valves (directional)(must be included)
    
    Details to be provided by
Contractor no later than-  Manufacturer
    
    30 June 2007-  Type-  Size-  Temperature rating choke valvesL11.
    
    Wireline BOP(must be included)-  Manufacturer
    
    Guiberson-  Type
    
    Hydraulic Wireline_____-  Nominal size
    
    PQ,HQ.NQ-  Pressure rating
    
    1500psi________-  Remote closing mechanism-  Maximum wireline size
    
    12mm__________________-  Side outlets
    
    4_inch_________-  Size
    
    Cross over subs-  Connection details
    
    1500psi__________-  Pressure ratingL12.
    
    Surface Control Equipment(must be included)
    
    Details to be provided by
Contractor no later than-  Hydraulic accumulator and control manifold
    
    30 June 2007-  Manufacturer and type-  Electric powered pump(s)-  Number-  Output rate, gal/min-  Output pressure, psi-  Accumulators
 Page 13 of  21




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification   Appendix B Constructional Plant Supplied by Contractor
    
    (LOGO)
 -  Capacity-  Working pressure-  Hydraulic fluid reservoir capacity-  Location of remote control panel(s)Accumulators sufficient for working all RAM functions.SECTION M: DOWNHOLE EQUIPMENTM1.
    
    2-7/8 or 4-1/2 Drill Pipe(must be included)
    
    Details to be provided-  Manufacturer
    
    by Contractor no later-  Grade
    
    than 30 June 2007.-  OD, wt./ft.,-  Tool joint manufacturer
    
    Included will be 1500m-  Joint OD/ID
    
    of CHD76 cementing string.-  Tool joint thread-  Class of pipe-  Integral plastic coating-  Thread protectorsM2.
    
    Drill Collars - 4-3/4 OD(must be included)-  I.D. and approx.
    
    Details to be provided by Contractor no laterweight/collar
    
    than 30 June 2007.-  Length
    
    Supplying 4 collars-  Connection-  Thread protectors
    
    31/2_IF____-  Type-  Spiral collars (number)-  Slip and elevator recesses-  Year of manufacture-  Lifting subs-  Hard banding (optional)M3.
    
    8-1/2 string Stabiliser(must be included)
    
    Details to be provided-  I.D. and approx.
    
    by Contractor no later than 30 June 2007.-  Length
    
    .7m___________________-  Connection-  Thread protectors
    
    Tungsten______________-  type of abrasion protection
 Page 14 of  21




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification   Appendix B Constructional Plant Supplied by Contractor
    
    (LOGO)
 M4.
    
    8-1/2 near bit Stabiliser(must be included)
    
    Details to be provided by-  I.D. and approx.
    
    Contractor no later than 30 June 2007.-  Length-  Connection-  Thread protectors
    
    Tungsten-  type of abrasion protectionM5.
    
    PQ Core Rod(must be included)-  Manufacturer
    
    Longyear-  Grade
    
    HWT_________________-  OD, wt./ft.,
    
    HWT_________________-  threaded connection type-  Joint OD/ID-  Tool joint thread-  length of each rod
    
    3m-  Integral plastic coating-  Thread protectorsM6.
    
    HQ Core Rod(must be included)-  Manufacturer
    
    Longyear______________-  Grade-  OD, wt./ft.,-  threaded connection type
    
    HQ_________________-  Joint OD/ID-  Tool joint thread-  length of each rod-  Integral plastic coating-  Thread protectorsM7.
    
    NQ Core Rod(must be included)-  Manufacturer
    
    Longyear-  Grade-  OD, wt./ft.,
    
    NRQ__________________-  threaded connection type-  Joint OD/ID-  Tool joint thread-  length of each rod
 Page 15 of  21




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification   Appendix B Constructional Plant Supplied by Contractor
    
    (LOGO)
 -  Integral plastic coating-  Thread protectorsM8.
    
    Overshots (to catch tools supplied by CONTRACTOR)(must be included)-  Large OD Overshoots-  Manufacturer and type
    
    Bowen-  length and OD of body
    
    HW_____-  I.D.
    
    2_7/8"_API____________-  Connection details-  Small OD Overshot-  Manufacturer and type
    
    Bowen-  length and OD of body
    
    HQ___________________-  I.D.
    
    API___________________-  Connection detailsM9.
    
    Core rod cutters(must be included)-  Manufacturer and type
    
    Longyear-  length and OD of body
    
    HW-  cutter for core rod sizes
    
    HW-  Connection details
    
    NW rod_______________M10.
    
    Taper taps(must be included)-  Manufacturer and type
    
    Longyear-  length and OD of body
    
    NQ___________________-  I.D.
    
    BW Rod-  Connection detailsM11.
    
    Magnets(must be included)
    
    Details to be provided-  Manufacturer and type
    
    by  Contractor no later-  length and OD of body
    
    than 30 June 2007.-  I.D.-  Connection detailsM12.
    
    Internal Spears(must be included)
    
    Bowen_____________-  Manufacturer and type
    
    ______________-  OD of body
    
    _PQ<HQ<NQ____________________-  I.D.-  Connection details
 Page 16 of  21




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##### 



Lihir Gold Limited
Contract No LGL-MO-0107
Provision of Geothermal Coring Services
Part IV : Specification   Appendix B Constructional Plant Supplied by Contractor
    
    (LOGO)
 M13.
    
    Core Barrel PQ (must be included)-  Manufacturer and type
    
    Longyear-  OD of body-  I.D.-  core diameter-  wireline catch details-  core retainer-  Length
    
    3m-  Number
    
    twoM14.
    
    Core Barrel HQ (must be included)
    
    Longyear______________-  Manufacturer and type
    
    ___________________-  OD of body-  I.D.-  core diameter-  wireline catch details-  core retainer-  Length
    
    3m2-  NumberM15.
    
    Core Barrel NQ (must be included)-  Manufacturer and type
    
    Longyear______________-  OD of body-  I.D.-  core diameter-  wireline catch details-  core retainer-  Length
    
    3m____-  NumberM16.
    
    Core extractor (must be included)
    
    Details to be provided-  Manufacturer and type
    
    by Contractor no later-  method of extraction
    
    than 30 June 2007.-  core sizes to which applicableM17.
    

Substitutes (must be included and attach detailed list)
    
    Details to be providedby Contractor no later-  Manufacturer and type
    
    than 30 June 2007.-  OD and connections-  number
 Page 17 of  21




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Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part IV : Specification  Appendix B Constructional Plant Supplied by Contractor
    
    (LOGO)
 
 SECTION N: HANDLING TOOLS  RIG FLOOR EQUIPMENT ELEVATORS
  Standard  String Elevators or Lifting Sub must be included
 Manual or AirSize
    
    Make
    
    Type
    
    Operated
    
    Load Rating6-5/841/22-7/8PQ rod
    
    Longyear
    
    Pulling_plugHQ rodNQ rod
 Casing Elevators (must be included)
 Size
    
    Make
    
    Type
    
    Load Rating6-5/8
    

Details
to be provided by Contractor no laterthan 30 June 2007.PQ rodHQ rodNQ rod
 Foot Operated Floor Slips (must be included)
 Size
    
    Make
    
    Type
    
    Load Rating4-1/2
    
    UDR
    
    Hydraulic
    
    25tonne2- 7/8PQ rodHQ rodNQ rod
 Standard Manual Slips must be included
 SIZE
    
    MAKE
    
    TYPE
    
    LOAD RATINGDetails to be provided byContractor no later than30 June 2007.
 
 Page 18 of 21




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##### 



Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part IV : Specification  Appendix B Constructional Plant Supplied by Contractor
    
    (LOGO)
 Drill Pipe and Core Rod must be included
 SIZE
    
    MAKE
    
    TYPE41/2
    
    Details to be provided by Contractor no later than 30 June2-7/8
    
    2007.PQHQNQ
 SECTION O: INSTRUMENTATION & RECORDING EQUIPMENT
 O1.
    
    Weight Indicator/Drillers Console(must be included)
    
    Manufacturer
    
    Type
    
    Mud pressure gauge
    
    Cameron
    
    Torque indicator type
    
    Hydraulic
    
    Pump (SPM) type
    
    Rotary (RPM) type
    
    Hydraulic
    
    Wireline tension
    
    Wireline anchor, manufacturer and typeO3.
    
    Tong Torque Indicator(must be included)
    
    Manufacturer and typeO4.
    
    Mud Testing Equipment(must be included)
    
    Baroid
    
    Manufacturer
    
    type
    
    Vis funnel
    
    DescriptionO6.
    
    Directional survey equipment(must be included)
    
    Eastman
    
    Manufacturer
    
    Type
    
    AccessoriesSECTION T: OTHER ITEMS OF EQUIPMENT
 Page 19 of 21




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##### 



Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part IV : Specification  Appendix B Constructional Plant Supplied by Contractor
    
    (LOGO)
 1.2.
    
    BITS TO BE SUPPLIED.Details to be provided by contractor no later than 30 June
2007.
 Core
    
    
    Hole
    
    
    Quantity onCoring and drilling bits
    
    Brand
    
    
    Diameter
    
    
    diameter
    
    
    SiteSoft Formation PQ Coring BitMedium Formation PQ Coring BitHard Formation PQ Coring BitSoft Formation HQ Coring BitMedium Formation HQ Coring BitHard Formation HQ Coring BitSoft Formation NQ Coring BitMedium Formation NQ Coring BitHard Formation NQ Coring Bit
 IADC
    
    
    
    
    
    
    Quantity onDrill bits
    
    coding
    
    
    Brand
    
    
    site8-1/2 tricone bitNozzles for tricone bit
 1.3.
    
    RIG SITE LAY-OUT
  1.
    
    Site layout drawings detailing the minimum dimensions and locations
of the rig and all items of equipment, all sumps, tanks and pits including
capacities, and all level areas.2.
    
    Site design specifications such as rig loading factors and gradient
tolerances.3.
    
    Water and mud tank compartment diagram showing volumes and flow
diagram.
 Page 20 of 21




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##### 



Lihir Gold Limited 
Contract No LGL-MO-0107
Provision of Geothermal Coring Services 
Part IV : Specification  Appendix B Constructional Plant Supplied by Contractor
    
    (LOGO)
 LIST OF CONSUMABLES
 1.4.
    
    RIG SERVICES CONSUMABLESWhen completed, this entire Section shall be appended as part of
Appendix C to the Specification.
 Consumable Item
    
    Brand
    
    Details/CommentsCasing high temperature Teflon thread sealantHigh temperature thread locking compound
    
    
    
    BakerlocAnnular preventor rubber elementUsed HQ core rod plainUsed HQ core rod plainHQ core rod coreable float collar
 1.5.
    
    PERSONNEL
 ATTACH DETAILS AND CVs POSITION
    

NUMBER ON LIHIR ISLAND
    
    PROPOSED ROTATIONCountry Manager (Expat)
    
    2
    
    28 days on / 28 days offDriller (Expat)
    
    2
    
    28 days on / 28 days offAssistant Driller
    
    2
    
    28 days on / 28 days offMechanic Welder
    
    3
    
    28 days on / 28 days offSafety Officer/ Storeman
    
    1
    
    28 days on / 28 days offRoughnecks
    
    4
    
    28 days on / 28 days offOperator
    
    1
    
    28 days on / 28 days off
 Page 21 of 21