DATE:
    
    10th October, 2008COMPANY:
    
    W.E. Smith Engineering Pty LtdATTENTION:
    
    Mr.
    
    FAX NO:FROM
    
    Mr.
    
    FAX NO:SUBJECT:
    
    LGL Million Ounce Plant Upgrade Project
MOPU-1003 Supply of Autoclave
 3
  LETTER OF AWARD
 DESIGN, MANUFACTURE & SUPPLY
AUTOCLAVE
 1.
    
    CONTRACT DOCUMENTThe Contract shall be entered Into by W.E. Smith Engineering Ply. Ltd. ABN 74 096 147 983
(WES) and Lihir Gold Limited ARBN 069 803 998 (LGL).The documents forming the Agreement shall be:
 
    
    Terms & Conditions described within LGL Tender Documentation:
          Tender
Enquiry No MOPU-1003 - Sections I, II, III & IV
 
    
    WESs tender submission documentation:
 
    
    Submission received
29th September - J0807701 Lihir R3.pdf
    
    Submission received 1st October including:
 
    
    J0807701F Form of Tender.pdf
    
    HSE Policy.pdf
 
    
    Other submissions received in Correspondence listed below.
 
    
    Correspondence  The applicable and agreed parts of correspondence that has passed between
the parties since the original Tender submission, including the following:
 MOPU.1003 Correspondence
 From
    
    Subject
    
    SentFrom VendorDebbie Wyatt
    

MOPU-1003L-
Autoclave supply  Notice to tenderers #4
    
    Tue 22/07/2008 9:55 AMDebbie Wyatt
    

WES CONFIDENTIAL QUOTATION : MOPU-1003-L - Autoclave
    
    Tue 5/08/2008 11:30 AM
 Lihir Island, New Ireland ProvinceLihir Gold Limited
    
    Phone: +675 986 4014
    
    Papua New GuineaIncorporated in Papua New Guinea
    
    Fax: +675 986 4018
    
    PO Box 789 Port Moresby NCD 121ARBN 069 803 998
    
    Website: www.LGL.gold.com
    
    Papua New Guinea




---



##### 



From
    
    Subject
    
    SentDebble Wyalt
    
    MOPU-1003-L  Autoclave RE: WES CONFIDENTIAL QUOTATION :
    
    Tue 5/08/2008 1:21 PMDebble Wyatt
    
    MOPU-1003-L  Autoclave RE: WES CONFIDENTIAL QUOTATION :
    
    Wed 6/08/2008 3:52 PMRoxane Fitzroy
    

MOPU-1003-L Autoclave supply tender  Post tender Questions #1
    
    Fri 15/08/2008 11:29 AMPaul McFarlane
    
    MOPU-1003-L Autoclave supply tender  Post tender Questions #1
    
    Tue 19/08/2008 6:56 PMDebble Wyatt
    
    MOPU-1003-L LGL Pressure Autoclave  Further clarification / Information
    
    Mon 29/08/2008 9:19 AMDebbie Wyatt
    
    MOPU-1003-L Autoclave Information
    
    Wed 1/10/08 2:14 PMDebble Wyeatt
    
    J0807701F  WES Insurance Schedules
    
    Thu 2/10/08 9:27 AMPaul McFarlane
    

RE: MOPU-1003-L Autoclave supply  Insurances
    
    Wed 8/10/08 4:48 PMPaul McFarlane
    

RE; MOPU-1003-L Terms and Conditions Negotiation table
    
    Thu 9/10/08 9:28 AMPaul McFarlane
    
    RE: MOPU-1003-L Autoclave Fixed Pricing
    
    Thu 9/10/08 3:28 PMPaul McFarlane
    
    RE: MOPU-1003-L Autoclave Fixed Pricing
    
    Fri 10/10/08 10:51 AMTo VendorAdam Dickens
    
    MOPU-1003-L Supply of Autoclave  Notice to Tenderers #1
    
    Mon 14/07/2008 8:34 AMAdam Dickens
    
    MOPU-1003-L Autoclave Supply  Notice to tenderers #2
    
    Thu 17/07/2008 11:23 AMAdam Dickens
    

MOPU-1003-L Autoclave Supply  Notice to tenderers #3
    
    Fri 18/07/2008 3:01 PMAdam Dickens
    

MOPU-1003-L Autoclave supply  Notice to tenderers #4
    
    Tue 22/07/2008 9:47 AMAdam Dickens
    
    MOPU-1003-L  Autoclave RE: WES CONFIDENTIAL QUOTATION :
    
    Tue 5/08/2008 11:52 AMAdam Dickens
    
    MOPU-1003-L Autoclave supply tender  Post tender Questions #1
    
    Fri 15/08/2008 11:23 AMAdam Dickens
    
    MOPU-1003-L LGL Pressure Autoclave  Further clarification / Information
    
    Mon 22/09/2008 1:54 PMAdam Dickens
    
    MOPU-1003-L Autoclave Information
    
    Tue 30/09/2008 12:59 PMAdam Dickens
    
    MOPU-1003-L Re: KNM  Terms & Conditions Table.doc
    
    Wed 1/10/08 9:31 AMAdam Dickens
    
    MOPU-1003-L Autodve supply  insurances
    
    Thu 2/10/08 12:14 PMAdam Dickens
    
    MOPU-1003-L Terms and Conditions Negotiation table
    
    Thu 2/10/08 4:15 PMAdam Dickens
    
    MOPU-1003-L Autoclave Fixed Pricing
    
    Wed 8/10/08 2:43 PMAdam Dickens
    
    MOPU-1003-L Autoclave Terms & Conditions Negotiation table
    
    Thu 9/10/08 12:48 PMAdam Dickens
    
    MOPU-1003-L Autoclave Fixed Pricing
    
    Thu 9/10/08 3:50 PM
 
    
    Special Conditions  Special conditions applicable to this equipment supply
shall be as stated in attached document,
MOPU-1003-0C-C PO Special conditions.
 A Purchase Order will be prepared and issued, for the items detailed in Item 3 herein
(Pricing Schedule). Until the Purchase Order is finalised, this Letter of Award evidences
the Agreement between the parties. Please note that The MOPU Project computer generated
purchase order system is due to go live on the 1st December 2008. Thereafter a
purchase order for this Contract will be issued to WES.2.
    
    LGL REPRESENTATIVEWES is advised that LGLs Representatives is:
 Ben Innes
Telephone  +61 7 3318 3392
E-MailBen.lnnes@LGLgold.com




---



##### 



All communications should be addressed in the first instance
to LGLs Company Representative.All correspondence is to be transmitted by e-mail and numbered sequentially using the
following protocol: in the Subject Line enter MOPU-1003-C-XXX followed by the subject title
where xxx is the sequential correspondence number. Similarly LGL correspondence will be
numbered MOPU-1003-L-XXX.3.
    
    PRICING SCHEDULE
 Project
    

Million Ounce Plant Upgrade ProjectEquipment Name
    
    AutoclaveEquipment Number(s)
    
    1343-AC2004Vendor
    
    W.E. Smith Engineering Pty LtdEngineering
Design
    
    IncludedWorkshop Fabrication Drawings
    
    IncludedAutoclave
    
    USDCommissioning
& Start up Spare Parts 
As detailed in the tender offer
    
    USDFOB Delivery / Transportation, KNM Port,
Kuantan, Malaysia
    
    USDTotal Cost (Excluding GST)
    
    USD
 4.
    
    SUPPLY SCHEDULE
 Activity
    
    Time After Contract AwardPreliminary Engineering DrawingsFinal Certified Engineering DrawingsInspection and Test PlanFixed and Firm Manufacturing scheduleCommence Autoclave ManufactureAutoclave available for inspection or testingAutoclave delivered FOB KNM Port, Kuantan
 5.
    
    CONTRACT NUMBERThe Contract No MOPU-1003and Purchase Order No (TBA)must be referenced in all
correspondence and invoices.6.
    
    ACKNOWLEDGMENT & ACCEPTANCEWES acknowledges and accepts this Letter of Award based on the conditions detailed above.Please acknowledge receipt and acceptance of this Letter of Award by having a duly authorised
representative of your Company sign the acknowledgment below and return promptly by fax to
the undersigned.




---



##### 



ACKNOWLEDGEMENT BY VENDOR
  Name:
    
    Terry ChewPosition:
    
    Director, Sales Division KNM Process SystemsSignature:
    
    /s/ Terry ChewDate:
    
    23-10-08




---



##### 



W.E. Smith Engineering Pty Ltd
MOPU-1003  Supply of Autoclave
Purchase Order Special Conditions
  1.
    
    Delete the entire paragraph 2, of Clause 5, Security and Retention and replace with LGL
will not withhold a percentage of any invoice without the Sellers prior written agreement.2.
    
    Delete the 3rd paragraph of clause 6.1 and replace with: Should the Australian or
PNG governments impose a Tax (other than Income Tax), the amount of this Tax will be
considered a debt due from the Seller to LGL and LGL will require the Sellers written
agreement to deduct this amount from the total Purchase Order value.3.
    
    Delete paragraph 7, of Clause 10, Payments and replace with If any amounts become due and
payable from the Seller to LGL either under this Purchase order or otherwise, LGL will the
Sellers written agreement to deduct these amounts from payments due from LGL to the Seller.4.
    
    Delete 2nd sentence of Clause 11, Cancellation, and replace with:Provided the Seller is not in default, LGL shall pay to Seller the cost, as outlined in the
below table, according to the time of cancellation, provided that the amount payable by LGL in
respect of such cost, when added to all previous payments made or becoming payable hereunder
shall not exceed the total price stated in the Purchase Order.Append the following table to Clause 11:
 Percentage of Purchase
    
    Cancellation ScheduleOrder Value
    
    (weeks from date of order)%
    
    0 to 2%
    
    3 to 4%
    
    4 to 6%
    
    7 to 9%
    
    10 to 16%
    
    17 to 28%
    
    29 to 34%
    
    35 to 40%
    
    41 to 48%
    
    48 to end of contract
 5.
    
    Amend Clause 12, Termination for Default, Paragraph 1 by deleting the words
including Sellers warranties.6.
    
    Amend Clause 12 (Termination for Default), Paragraph 2 by inserting the words (of
the portion of works in question) after the word payments before the words to the
seller.7.
    
    Amend Paragraph 2, Clause 13, Warranties, by:
 o
    
    Deleting the words (in the opinion of LGL) in Line 3; and,o
    
    Replace the words pay as a debt due and payable... Purchase Order (lines
3 to 5) with remedy so as to bring the performance guarantees to the
merchandise in compliance with the requisite requirement and standard
under this Purchase Order




---



##### 



8.
    
    Amend Clause 22, Inspection of Merchandise by deleting the words either resupply
the merchandise .  .  . or return of the merchandise (Lines 7 to 12) and replace
with the words remedy the unsatisfactory or defective merchandise so as to bring it
in compliance with the requirements and specifications under this Purchase Order.9.
    
    Amend Clause 26, Delay and Liquidated Damages, by deleting the word day and
replacing with the word week. Amend the 4th Paragraph by deleting the words
certified drawings and replacing them with the words Manufacturers Data Report.10.
    
    Amend Clause 27, Limitation of Liability, by inserting the words           percent
of, after the words ... Contract is limited to.11.
    
    Amend Paragraph 4 of Clause 29, Suspension by deleting the last sentence, and
replacing with If the suspension was caused by LGL, LGL shall only be liable to the
Seller for reasonable costs (but not profit) incurred under the Purchase order, during
the suspension period.12.
    
    Amend Clause 30, Non Waiver, by adding the words (as a new paragraph), The
provisions of this non waiver can be applied to the Seller, mutatis mutandis to the
end of the clause.13.
    
    Amend Clause 31, No Assignment, by inserting the words but subject always to
Sellers right to receive payment under the Purchase Order before the full stop at the
end of the clause in Line 4.




---



##### 



MOPU-1003 Correspondence
 From
    
    Subject
    
    SentWES
    
    RE: MOPU-1003-L Autoclave Fixed Pricing
    
    Friday, 10 October 2008LGL
    
    MOPU-1003-L Autoclave Fixed Pricing
    
    Thursday, 9 October 2008WES
    
    RE: MOPU-1003-L Autoclave Fixed Pricing
    
    Thursday, 9 October 2008LGL
    
    MOPU-1003-L Autoclave Terms & Conditions Negotiation table
    
    Thursday, 9 October 2008WES
    
    RE: MOPU-1003-L Terms and Conditions Negotiation table
    
    Thursday, 9 October 2008WES
    
    RE: MOPU-1003-L Autoclve supply  Insurances
    
    Wednesday, 8 October 2008LGL
    
    MOPU-1003-L Autoclave Fixed Pricing
    
    Wednesday, 8 October 2008LGL
    
    MOPU-1003-L Terms and Conditions Negotiation table
    
    Thursday, 2 October 2008LGL
    
    MOPU-1003-L Autoclve supply  Insurances
    
    Thursday, 2 October 2008WES
    
    J0807701F  WES Insurance Schedules
    
    Thursday, 2 October 2008WES
    
    MOPU-1003-L Autoclave Information
    
    Wednesday, 1 October 2008LGL
    
    MOPU-1003-L Re: KNM  Terms & Conditions Table.doc
    
    Wednesday, 1 October 2008LGL
    
    MOPU-1003-L Autoclave Information
    
    Tuesday, 30 September 2008WES
    
    MOPU-1003-L LGL Pressure Autoclave  Further clarification / information
    
    Monday, 29 September 2008LGL
    
    MOPU-1003-L LGL Pressure Autoclave  Further clarification / information
    
    Monday, 22 September 2008WES
    
    MOPU-1003-L Autoclave supply tender  Post tender Questions #1
    
    Tuesday, 19 August 2008WES
    
    MOPU-1003-L Autoclave supply tender  Post tender Questions #1
    
    Friday, 15 August 2008LGL
    
    MOPU-1003-L Autoclave supply tender  Post tender Questions #1
    
    Friday, 15 August 2008WES
    
    MOPU-1003-L  Autoclave RE: WES CONFIDENTIAL QUOTATION :
    
    Wednesday, 6 August 2008WES
    
    MOPU-1003-L  Autoclave RE: WES CONFIDENTIAL QUOTATION :
    
    Tuesday, 5 August 2008LGL
    
    MOPU-1003-L  Autoclave RE: WES CONFIDENTIAL QUOTATION :
    
    Tuesday, 5 August 2008WES
    
    WES CONFIDENTIAL QUOTATION : MOPU-1003-L  Autoclave
    
    Tuesday, 5 August 2008WES
    
    MOPU-1003-L Autoclave supply  Notice to tenderers #4
    
    Tuesday, 22 July 2008LGL
    
    MOPU-1003-L Autoclave supply  Notice to tenderers #4
    
    Tuesday, 22 July 2008LGL
    
    MOPU-1003-L Autoclave Supply  Notice to tenderers #3
    
    Friday, 18 July 2008LGL
    
    MOPU-1003-L Autoclave Supply  Notice to tenderers #2
    
    Thursday, 17 July 2008LGL
    
    MOPU-1003-L Supply of Autoclave  Notice to Tenderers #1
    
    Monday, 14 July 2008




---



##### 



Adam Dickens
 From:
    
    Paul McFarlaneSent:
    
    Friday, 10 October 2008 10:50 AMTo:
    
    Adam DickensCc:
    
    Roxane Fitzroy; Debbie Wyatt; MOPU; TC Mok; SY Kit; Ian McNaughtanSubject:
    
    RE: MOPU-1003-L Autoclave Fixed PricingAttachments:
    
    MOPU-1003-0E-C  WES  Terms Conditions Table.doc
  th
 WES Portion
    
    US$KNM Portion
    
    US$Spare Parts
    
    US$Inland Transport, FOB Barge
    
    US$Total
    
    US$
    
 
 
 From:  Sent:  To:  Cc:  Subject:
   th
 th
 Lihir Services Australia Pty Ltd




---



##### 



(LOGO)(LOGO)(LOGO)(LOGO)  www.lglgold.com
 From:  Sent:  To:  Cc:  Subject:
   WES Portion
    
    US$KNM Portion
    
    US$Spare Parts
    
    US$Inland Transport, FOB Barge
    
    US$Total
    
    US$
     
 
 
 From:  Sent:  To:  Cc:  Subject:  Importance:




---



##### 



st
 
    
    The price of USD
             is
based on the currency exchange rate of           .
    
    The price of USD
             is based on the currency exchange rate of           .
 th
 http://www.rba.gov.au/statistics/exchange_rates.html
 th th th
  Lihir Services Australia Pty Ltd
 (LOGO)(LOGO)(LOGO)(LOGO)
 www.lglgold.com




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    KNM / WES Response1.
    
    Clause 5
Security and
Retention
    
    Propose no withholding of percentage of any
invoice is allowed, unless with sellers prior
agreement in writing.
    
    24-9-08: This is acceptable to LGL
    
    Closed2.
    
    Clause 6.1
Liability for Tax
    
    Propose no withholding of percentage of any
payment is allowed, unless with sellers prior
agreement in writing.
    
    24-9-08: This will be acceptable as it is
envisaged that no tax liabilities would be
incurred between companies (export
arrangements)
2-10-08: Delete the 3rd paragraph of
clause 6.1 and replace with: Should the
Australian or PNG governments impose
a Tax (other than Income Tax), the
amount of this Tax will be considered a
debt due from the Seller to LGL and
LGL will require the Sellers written
agreement to deduct this amount from
the total Purchase Order value.
9-10-08:
LGL are not aware of any taxes that
WES would incur. However, WES
should fully inform itself of the
requirements under the agreement.
    
    Closed
Confirmed. As our obligations end at FOB
Barge (except the warrantee period) Import
duties or Taxes are not applicable in our
scope.3.
    
    Clause 10
Payments
    
    Propose no setoffs of any payment is allowed,
unless with sellers prior agreement in writing.
    
    24-9-08: This will be acceptable as
there are no other agreements with this
company.
    
    Closed4.
    
    Clause 11 
Cancellation
    
    Propose to include KNM Schedule of
compensation as per KNM proposal
    
    24-9-08: The cancellation schedule of
compensation is not acceptable to LGL.
KNM to propose a revised schedule to
better reflect the promised delivery
schedule, and anticipated milestones.
    
    We propose our revised Cancellation
Schedule as follows:
      % of PO value      weeks after order
      % of PO value      weeks after order
      % of PO value      weeks after order
      % of PO value      weeks after order
      % of PO value      weeks after order
      % of PO value      weeks after order
      % of PO value      weeks after order
      % of PO value      weeks after order
      % of PO value      weeks after order
      % of PO value above
      weeks after order
 IMPORTANT
     




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    KNM / WES Response5.
    
    Clause 12
Termination for
Default
    
    Line 5  propose to replace the word immediate
with upon the accruement of liquidated damages
Line 6  propose to replace the word 30 calendar
days of notice in writing by LGL with the
mutually agreed period.
Para 2  Propose to insert the words (of the
portion of works in question) after the word
payments before the words to the seller
Para 4  Propose no refund of monies paid
    
    24-9-08: Line 5  This is not acceptable
to LGL
Line 6  The mutually agreed period
shall be agreed prior to entering an
agreement which LGL believe to be 30
days.

Para 2  OK
Para 4  This is not acceptable to LGL.

2-10-08: Para 4  again this isnt
acceptable to LGL.

9-10-08: LGL agrees to the suggested
change, i.e., removal of the words
including Sellers Warranties in line 1
and 2 of this clause.
    
    Line 5  KNM agree to accept the text as
proposed by LGL.
Line 6  KNM agree to accept the text as
proposed by LGL.

Para 2  closed.

Para 4  May we request LGL to reconsider
its decision or propose alternative verbiage.
The reason is that KNM would have incurred
overhead and material costs up to this stage.
Closed.6.
    
    Clause 13
Warranties
Paragraph 2
    
    In line 3, propose to delete the words (in the
opinion of LGL)
Propose to replace the words pay as a debt due
and payable..... Purchase Order (lines 3 to 5) with
remedy so as to bring the performance
guarantees to the merchandise in compliance with
the requisite requirement and standard under this
Purchase Order
    
    24-9-08: LGL accepts the proposed
amendments
    
    Closed7.
    
    Clause 14
Sellers
Indemnity
    
    Propose that the cumulative aggregate limit of
liability of the Seller under this Purchase Order is
capped at             of the total value of this Purchase
Order.
    
    24-9-08: LGL cannot accept a cap of
liability of.            KNM to advise more
favourable cap. Refer also item 12
below.

2-10-08: LGL believes that the changes
proposed under clause 27 below effect
WESs requirement here, and as such
propose no changes to this clause.

9-10-08: The suggested change to
Paragraph 2 is NOT acceptable to LGL.
    
    KNM propose a cap of
            of the Purchase
Order value as the cumulative aggregate
limit of liability of the Seller under this
Purchase Order.
Para 2  KNM accepts the text as proposed
by LGL8.
    
    Clause 15
    
    Propose to maintain KNM insurance policy
    
    24-9-08: LGL requires further
    
    Attached please find our insurance policies.
 IMPORTANT
     




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    KNM / WES ResponseInsurance to be
arranged by the
Seller
    
    
    
    information regarding the insurances
held by KNM, to further analyse this
response.
2/10/08: LGL believes that your policies
meet the requirements of the contract,
and as such propose no changes be
made to the words.
9-10-08: Please advise re Insurance
policy noting the interests of the
Principal ASAP.
    
    10-10-08: It is confirmed that we have a
combined Liability Insurance policy of
$10,000,000. It is noted that Section 2 of this
Combined Liability Insurance policy makes
reference to Indemnity to Others. At this
stage it doesnt specifically reference LGL9.
    
    Clause 16
General
Insurance
provisions
    
    Propose to maintain KNM insurance policy
    
    24-9-08: LGL requires further
information regarding the insurances
held by KNM, to further analyse this
response.
2/10/08: LGL believes that your policies
meet the requirements of the contract,
and as such propose no changes be
made to the words.
9-10-08: Please advise re Insurance
policy noting the interests of the
Principal ASAP.
    
    Attached please find our insurance policies
10-10-08: It is confirmed that we have a
combined Liability Insurance policy of
$10,000,000. It is noted that Section 2 of this
Combined Liability Insurance policy makes
reference to Indemnity to Others. At this
stage it doesnt specifically reference LGL10.
    
    Clause 22
Inspection of
Merchandise
    
    Propose to delete the words either resupply the
merchandise ... or return of the merchandise
(Lines 7 to 12) and replace with the words
remedy the unsatisfactory or defective
merchandise so as to bring it in compliance with
the requirements and specifications under this
Purchase Order
    
    24-9-08: LGL accepts the proposed
amendment.
    
    Closed11.
    
    Clause 26
Delay and
Liquidated
Damages
    
    (a) Propose LD =            of the purchase order
value for each week of delay, up to a maximum of
           of the Purchase Order value.
(b) Propose LD is sole remedy for Delay
    
    24-9-08:
Item (a): is acceptable to LGL
Item (b): this is not acceptable to LGL,
as the clause allows for a situation
where the LDs are found not to be
    
    a. Closed
b. KNM accepts the text as proposed by LGL
c. Closed
d. KNM accepts the text as proposed by LGL
 IMPORTANT
     




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    KNM / WES Response(c) Para 2  propose to delete the words LGL
decides that it will not such delay event.
(d) Para 4  Propose to delete the paragraph in its
entirety.
    
    enforceable.
Item (c): is acceptable to LGL.
Item (d) Not accepted by LGL. LGL will
accept the sentence being amended by
deleting the words certified drawings
and replacing them with the words
Manufacturers Data Report12.
    
    Clause 27
Limitation of
Liability
    
    Item (a) Propose that the cumulative aggregate
limit of liability of the Seller under this Purchase
Order is capped at 10% of the total value of this
Purchase Order.
Item (b) Propose to delete the last paragraph in its
entirety
    
    24-9-08:
Item (a): A            cap is not acceptable to
LGL. A revised cap should be advised
by KNM. KNM should also consider
their available insurances.

Item (b): This is not acceptable to LGL
2-10-08:
    
    a. KNM propose a cap of            of the
Purchase Order value as the cumulative
aggregate limit of liability of the Seller under
this Purchase Order.
b. KNM accepts the text as proposed by LGLItem (a): Propose to Amend Clause 27,
Limitation of Liability, by inserting the
words          , after the
words ... Contract is limited to.
9-10-08: Agreed and closed.
    
    Closed13.
    
    Clause 29
Suspension
    
    Propose if suspension was caused by LGL, to
include reasonable costs, profit and overheads.
    
    24-9-08: LGL can accept covering
reasonable costs, but not profit.
Overheads would have to be shown as
a cost related to the works under the
Purchase order.
    
    KNM accepts the text as proposed by LGL14.
    
    Clause 30
Non Waiver
    
    Propose to include that the provisions of this non
waiver be applied to the Seller, mutatis mutandis.
    
    24-9-08: LGL accepts the proposed
amendment.
    
    Closed15.
    
    Clause 31
No Assignment
    
    Propose to insert but subject always to guarantee
payment to Seller before the full stop in line 4.
    
    24-9-08: LGL does not accept the
proposed change.
LGL proposes to insert the words but
subject always to Sellers right to receive
payment under the Purchase Order
before the full stop at the end of the
clause in Line 4.
    
    KNM accepts the text as proposed by LGL16.
    
    Clause 32
Disputes
    
    Propose to refer disputes to arbitration, instead of
court of competent jurisdiction and the
arbitration award shall be final and binding.
    
    24-9-08: LGL does not accept the
proposed change.
    
    KNM accepts the text as proposed by LGL
 IMPORTANT
     




---



##### 



Adam Dickens
 From:
    
    Adam DickensSent:
    
    Thursday, 9 October 2008 3:50 PMTo:
    
    Paul McFarlaneCc:
    
    Roxane Fitzroy; Debbie Wyatt; MOPU; TC Mok; SY Kit; Ian McNaughtanSubject:
    
    MOPU-1003-L Autoclave Fixed Pricing
   th
 th
 Lihir Services Australia Pty Ltd
 (LOGO)(LOGO)(LOGO)(LOGO)
 www.lglgold.com
 From:  Sent:  To:  Cc:  Subject:
  th
 WES Portion
    
    US$KNM Portion
    
    US$Spare Parts
    
    US$Inland Transport, FOB Barge
    
    US$Total
    
    US$




---



##### 



From:  Sent:  To:  Cc:  Subject:  Importance:
   st
 
    
    The price of
          is based on the currency exchange rate of           .
    
    The price of           is based on the currency exchange rate of           .
 th
 http://www.rba.gov.au/statistics/exchange__rates.html
 th th th
  Lihir Services Australia Pty Ltd
 (LOGO)(LOGO)(LOGO)(LOGO)
 www.lglgold.com




---



##### 



Adam Dickens
 From:
    
    Paul McFarlane [                    ]Sent:
    
    Thursday, 9 October 2008 3:30 PMTo:
    
    Adam DickensCc:
    
    Roxane Fitzroy; Debbie Wyatt; MOPU; TC Mok; SY KitSubject:
    
    RE: MOPU-1003-L Autoclave Fixed Pricing
  th
 WES Portion
    
    US$KNM Portion
    
    US$Spare Parts
    
    US$Inland Transport, FOB Barge
    
    US$Total
    
    US$
     
 
 
 From:  Sent:  To:  Cc:  Subject:  Importance:
   st
 
    
    The price of
          is based on the currency exchange rate of           .




---



##### 




    
    The price of           is based on the currency exchange rate of           .
 th
 http://www.rba.gov.au/statistics/exchange_rates.html
 th th th
  Lihir Services Australia Pty Ltd
 www.lglgold.com




---



##### 



Adam Dickens
 From:
    
    Adam DickensSent:
    
    Thursday, 9 October 2008 12:48 PMTo:
    
    Paul McFarlaneCc:
    
    MOPU; Debbie Wyatt; Roxane FitzroySubject:
    
    MOPU-1003-L Autoclave Terms & Conditions Negotiation tableImportance:
    
    HighAttachments:
    
    MOPU-1003-0E-C  WES  Terms & Conditions Table.doc
     Lihir Services Australia Pty Ltd
 (LOGO)(LOGO)(LOGO)(LOGO)
 www.lglgold.com




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    KNM / WES Response1.
    
    Clause 5
Security and
Retention
    
    Propose no withholding of percentage of any
invoice is allowed, unless with sellers prior
agreement in writing.
    
    24-9-08: This is acceptable to LGL
    
    Closed2.
    
    Clause 6.1
Liability for Tax
    
    Propose no withholding of percentage of any
payment is allowed, unless with sellers prior
agreement in writing.
    
    24-9-08: This will be acceptable as it is
envisaged that no tax liabilities would be
incurred between companies (export
arrangements)
    
    Closed2-10-08: Delete the 3rd paragraph of
clause 6.1 and replace with: Should the
Australian or PNG governments impose
a Tax (other than Income Tax), the
amount of this Tax will be considered a
debt due from the Seller to LGL and
LGL will require the Sellers written
agreement to deduct this amount from
the total Purchase Order value.
9-10-08:
LGL are not aware of any taxes that
WES would incur. However, WES
should fully inform itself of the
requirements under the agreement.
    
    Please advice us if there are any taxation
legislature that are being planned in Australia
or PNG that would affect KNM so that we
can accommodate this into our quote.3.
    
    Clause 10 Payments
    
    Propose no setoffs of any payment is allowed,
unless with sellers prior agreement in writing.
    
    24-9-08: This will be acceptable as
there are no other agreements with this
company.
    
    Closed4.
    
    Clause 11 
Cancellation
    
    Propose to include KNM Schedule of
compensation as per KNM proposal
    
    24-9-08: The cancellation schedule of
compensation is not acceptable to LGL.
KNM to propose a revised schedule to
better reflect the promised delivery
schedule, and anticipated milestones.
    
    We propose our revised Cancellation
Schedule as follows:
     % of PO value          weeks after order
     % of PO value          weeks after order
     % of PO value          weeks after order
     % of PO value          weeks after order
     % of PO value          weeks after order
     % of PO value          weeks after order
     % of PO value          weeks after order
     % of PO value          weeks after order
     % of PO value          weeks after order
     % of PO value above 48 weeks after
order
 IMPORTANT
     




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    KNM / WES Response5.
    
    Clause 12
Termination for
Default
    
    Line 5  propose to replace the word immediate
with upon the accruement of liquidated damages

Line 6  propose to replace the word 30 calendar
days of notice in writing by LGL with the
mutually agreed period.

Para 2  Propose to insert the words (of the
portion of works in question) after the word
payments before the words to the seller

Para 4  Propose no refund of monies paid
    
    24-9-08: Line 5  This is not acceptable
to LGL
Line 6  The mutually agreed period
shall be agreed prior to entering an
agreement which LGL believe to be 30
days. 

Para 2  OK

Para 4  This is not acceptable to LGL.2-10-08: Para 4  again this isnt
acceptable to LGL.
9-10-08: LGL agrees to the suggested
change, i.e., removal of the words
including Sellers Warranties in line 1
and 2 of this clause.
    
    Line 5  KNM agree to accept the text as
proposed by LGL.

Line 6  KNM agree to accept the text as
proposed by LGL.

Para 2  closed.

Para 4  May we request LGL to reconsider
its decision or propose alternative verbiage.
The reason is that KNM would have incurred
overhead and material costs up to this stage.
Para 1  KNM request the removal of the
words including Sellers warranties in line 1
and 2.6.
    
    Clause 13
Warranties
Paragraph 2
    
    In line 3, propose to delete the words (in the
opinion of LGL)
    
    24-9-08: LGL accepts the proposed
amendments
    
    ClosedPropose to replace the words pay as a debt due
and payable... Purchase Order (lines 3 to 5) with
remedy so as to bring the performance
guarantees to the merchandise in compliance with
the requisite requirement and standard under this
Purchase Order7.
    
    Clause 14
Sellers
Indemnity
    
    Propose that the cumulative aggregate limit of
liability of the Seller under this Purchase Order is
capped at           of the total value of this Purchase
Order.
    
    24-9-08: LGL cannot accept a cap of
liability of            KNM to advise more
favourable cap. Refer also item 12
below.
    
    KNM propose a cap of            of the Purchase
Order value as the cumulative aggregate
limit of liability of the Seller under this
Purchase Order.2-10-08: LGL believes that the changes
proposed under clause 27 below effect
WESs requirement here, and as such
propose no changes to this clause.

9-10-08: The suggested change to
Paragraph 2 is NOT acceptable to LGL.
    
    Para 2  KNM requests the deletion of line
item (iv)8.
    
    Clause 15
    
    Propose to maintain KNM insurance policy
    
    24-9-08: LGL requires further
    
    Attached please find our insurance policies.
 IMPORTANT
     




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    KNM / WES ResponseInsurance to be
arranged by the
Seller
    
    
    
    information regarding the insurances
held by KNM, to further analyse this
response.
2/10/08: LGL believes that your policies
meet the requirements of the contract,
and as such propose no changes be
made to the words.
9-10-08: Please advise re Insurance
policy noting the interests of the
Principal ASAP.9.
    
    Clause 16
General
Insurance
provisions
    
    Propose to maintain KNM insurance policy
    
    24-9-08: LGL requires further
information regarding the insurances
held by KNM, to further analyse this
response.
2/10/08: LGL believes that your policies
meet the requirements of the contract,
and as such propose no changes be
made to the words.
9-10-08: Please advise re Insurance
policy noting the interests of the
Principal ASAP.
    
    Attached please find our insurance policies.10.
    
    Clause 22
Inspection of
Merchandise
    
    Propose to delete the words either resupply the
merchandise ....... or return of the merchandise
(Lines 7 to 12) and replace with the words
remedy the unsatisfactory or defective
merchandise so as to bring it in compliance with
the requirements and specifications under this
Purchase Order
    
    24-9-08: LGL accepts the proposed
amendment.
    
    Closed11.
    
    Clause 26
Delay and
Liquidated
Damages
    
    (a) Propose LD =           of the purchase order
value for each week of delay, up to a maximum of
          of the Purchase Order value.
    
    24-9-08:
Item (a): is acceptable to LGL
    
    a. Closed
b. KNM accepts the text as proposed by LGL
c. Closed
d. KNM accepts the text as proposed by LGL(b) Propose LD is sole remedy for Delay
    
    Item (b): this is not acceptable to LGL,
as the clause allows for a situation
where the LDs are found not to be
 IMPORTANT
     




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    KNM / WES Responseenforceable.(c) Para 2  propose to delete the words LGL
decides that it will not such delay event.
    
    Item (c): is acceptable to LGL.(d) Para 4  Propose to delete the paragraph in its
entirety.
    
    Item (d) Not accepted by LGL.
LGL will
accept the sentence being amended by
deleting the words certified drawings
and replacing them with the words
Manufacturers Data Report12.
    
    Clause 27
Limitation of
Liability
    
    Item (a) Propose that the cumulative aggregate
limit of liability of the Seller under this Purchase
Order is capped at            of the total value of this
Purchase Order.

Item (b) Propose to delete the last paragraph in its
entirety
    
    24-9-08: 
Item (a): A            cap is not acceptable to
LGL. A revised cap should be advised
by KNM.
KNM should also consider
their available insurances.
Item (b): This is not acceptable to LGL
    
    a. KNM propose a cap of            of the
Purchase Order value as the cumulative
aggregate limit of liability of the Seller under
this Purchase Order.
b. KNM accepts the text as proposed by LGL2-10-08:Item (a): Propose to Amend Clause 27,
Limitation of Liability, by inserting the
words          , after the
words ... Contract is limited to.

9-10-08: Agreed and closed.
    
    Item (a): KNM accepts the text as proposed
by LGL.13.
    
    Clause 29
Suspension
    
    Propose if suspension was caused by LGL, to
include reasonable costs, profit and overheads.
    
    24-9-08: LGL can accept covering
reasonable costs, but not profit. Overheads would have to be shown as
a cost related to the works under the
Purchase order.
    
    KNM accepts the text as proposed by LGL14.
    
    Clause 30
Non Waiver
    
    Propose to include that the provisions of this non
waiver be applied to the Seller, mutatis mutandis.
    
    24-9-08: LGL accepts the proposed
amendment.
    
    Closed15.
    
    Clause 31
No Assignment
    
    Propose to insert but subject always to guarantee
payment to Seller before the full stop in line 4.
    
    24-9-08: LGL does not accept the
proposed change.
    
    KNM accepts the text as proposed by LGLLGL proposes to insert the words but
subject always to Sellers right to receive
payment under the Purchase Order
before the full stop at the end of the
clause in Line 4.16.
    
    Clause 32
Disputes
    
    Propose to refer disputes to arbitration, instead of
court of competent jurisdiction and the
arbitration award shall be final and binding.
    
    24-9-08: LGL does not accept the
proposed change.
    
    KNM accepts the text as proposed by LGL
 IMPORTANT
     




---



##### 



Adam Dickens
 From:
    
    Paul McFarlaneSent:
    
    Thursday, 9 October 2008 9:30 AMTo:
    
    Adam Dickens; Debbie Wyatt; Roxane FitzroyCc:
    
    MOPU_Subject:
    
    RE: MOPU-1003-L Terms and Conditions Negotiation tableAttachments:
    
    MOPU-1003-0D-C  WES  Terms Conditions Table 7Oct08.doc
     
 
 
 From:  Sent:  To:  Cc:  Subject:  Importance:
     Lihir Services Australia Pty Ltd
 +61 7 3318 3349 (Direct)(LOGO) +61 7 3318 3300 (Switch)   +61 7 3318 9203 (Fax)   Lvl 9, 500 Queen Street, Brisbane, QLD, 4000(LOGO) GPO Box 905,
Brisbane, QLD, 4001, Australia
 www.lglgold.com




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    KNM / WES Response1.
    
    Clause 5
Security and
Retention
    
    Propose no withholding of percentage of any
invoice is allowed, unless with sellers prior
agreement in writing.
    
    24-9-08: This is acceptable to LGL
    
    Closed2.
    
    Clause 6.1
Liability for Tax
    
    Propose no withholding of percentage of any
payment is allowed, unless with sellers prior
agreement in writing.
    
    24-9-08: This will be acceptable as it is
envisaged that no tax liabilities would be
incurred between companies (export
arrangements)
    
    Closed2-10-08: Delete the 3rd paragraph of
clause 6.1 and replace with: Should the
Australian or PNG governments impose
a Tax (other than Income Tax), the
amount of this Tax will be considered a
debt due from the Seller to LGL and
LGL will require the Sellers written
agreement to deduct this amount from
the total Purchase Order value.
    
    Please advice us if there are any taxation
legislature that are being planned in Australia
or PNG that would affect KNM so that we
can accommodate this into our quote.3.
    
    Clause 10
Payments
    
    Propose no setoffs of any payment is allowed,
unless with sellers prior agreement in writing.
    
    24-9-08: This will be acceptable as
there are no other agreements with this
company.
    
    Closed4.
    
    Clause 11 
Cancellation
    
    Propose to include KNM Schedule of
compensation as per KNM proposal
    
    24-9-08: The cancellation schedule of
compensation is not acceptable to LGL.
KNM to propose a revised schedule to
better reflect the promised delivery
schedule, and anticipated milestones.
    
    We propose our revised Cancellation
Schedule as follows:
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value above           weeks after
order5.
    
    Clause 12
Termination for
Default
    
    Line 5  propose to replace the word immediate
with upon the accruement of liquidated damages

Line 6  propose to replace the word 30 calendar
    
    24-9-08: Line 5  This is not acceptable
to LGL 

Line 6  The mutually agreed period
shall be agreed prior to entering an
    
    Line 5  KNM agree to accept the text as
proposed by LGL.

Line 6  KNM agree to accept the text as
proposed by LGL.
 IMPORTANT
     




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    KNM / WES Responsedays of notice in writing by LGL with the
mutually agreed period. 

Para 2  Propose to insert the words (of the
portion of works in question) after the word
payments before the words to the seller

Para 4  Propose no refund of monies paid
    
    agreement which LGL believe to be 30
days.

Para 2  OK

Para 4  This is not acceptable to LGL.
2-10-08: Para 4  again this isnt
acceptable to LGL, as we believe that
WE Smith could intentionally go into
breach of contract knowing that we
would have to take away the goods in
the condition they are in and have no
further obligation under the contract.
    
    Para 2  closed.
Para 4  May we request LGL to reconsider
its decision or propose alternative verbiage.
The reason is that KNM would have incurred
overhead and material costs up to this stage.
Para 1  KNM request the removal of the
words including Sellers warranties in line 1
and 2.6.
    
    Clause 13
Warranties
Paragraph 2
    
    In line 3, propose to delete the words (in the
opinion of LGL)
Propose to replace the words pay as a debt due
and payable... Purchase Order (lines 3 to 5) with
remedy so as to bring the performance
guarantees to the merchandise in compliance with
the requisite requirement and standard under this
Purchase Order
    
    24-9-08: LGL accepts the proposed
amendments
    
    Closed7.
    
    Clause 14
Sellers
Indemnity
    
    Propose that the cumulative aggregate limit of
liability of the Seller under this Purchase Order is
capped at            of the total value of this Purchase
Order.
    
    24-9-08: LGL cannot accept a cap of
liability of            KNM to advise more
favourable cap. Refer also item 12
below.

2-10-08: LGL believes that the changes
proposed under clause 27 below effect
WESs requirement here, and as such
propose no changes to this clause.
    
    KNM propose a cap of            of the Purchase
Order value as the cumulative aggregate
limit of liability of the Seller under this
Purchase Order.

Para 2  KNM requests the deletion of line
item (iv)8.
    
    Clause 15
Insurance to be
arranged by the
Seller
    
    Propose to maintain KNM insurance policy
    
    24-9-08: LGL requires further
information regarding the insurances
held by KNM, to further analyse this
response.

2/10/08: LGL believes that your policies
meet the requirements of the contract,
and as such propose no changes be
made to the words.
    
    Attached please find our insurance policies.
 IMPORTANT
     




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    KNM / WES Response9.
    
    Clause 16
General
Insurance
provisions
    
    Propose to maintain KNM insurance policy
    
    24-9-08: LGL requires further
information regarding the insurances
held by KNM, to further analyse this
response.
2/10/08: LGL believes that your policies
meet the requirements of the contract,
and as such propose no changes be
made to the words.
    
    Attached please find our insurance policies.10.
    
    Clause 22
Inspection of
Merchandise
    
    Propose to delete the words either resupply the
merchandise ... or return of the merchandise
(Lines 7 to 12) and replace with the words
remedy the unsatisfactory or defective
merchandise so as to bring it in compliance with
the requirements and specifications under this
Purchase Order
    
    24-9-08: LGL accepts the proposed
amendment.
    
    Closed11.
    
    Clause 26
Delay and
Liquidated
Damages
    
    (a) Propose LD =            of the purchase order
value for each week of delay, up to a maximum of
           of the Purchase Order value.
(b) Propose LD is sole remedy for Delay
    
    24-9-08:
Item (a): is acceptable to LGLItem (b): this is not acceptable to LGL,
as the clause allows for a situation
where the LDs are found not to be
enforceable.
    
    a. Closed
b. KNM accepts the text as proposed by LGL
c. Closedd. KNM accepts the text as proposed by LGL(c) Para 2  propose to delete the words LGL
decides that it will not such delay event.
    
    Item (c): is acceptable to LGL.(d) Para 4  Propose to delete the paragraph in its
entirety.
    
    Item (d) Not accepted by LGL. LGL will
accept the sentence being amended by
deleting the words certified drawings
and replacing them with the words
Manufacturers Data Report12.
    
    Clause 27
Limitation of
Liability
    
    Item (a) Propose that the cumulative aggregate
limit of liability of the Seller under this Purchase
Order is capped at            of the total value of this
Purchase Order.
    
    24-9-08:
Item (a): A           cap is not acceptable to
LGL. A revised cap should be advised
by KNM.
KNM should also consider
their available insurances.
Item (b): This is not acceptable to LGL
    
    a. KNM propose a cap of           of the
Purchase Order value as the cumulative
aggregate limit of liability of the Seller under
this Purchase Order.
b. KNM accepts the text as proposed by LGL
 IMPORTANT
     




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    KNM / WES ResponseItem (b) Propose to delete the last paragraph in its
entirety
    
    2-10-08:
Item (a): Propose to Amend Clause 27,
Limitation of Liability, by inserting the
words Twenty (20) percent of, after the
words ... Contract is limited to.
    
    Item (a): KNM accepts the text as proposed by LGL.13.
    
    Clause 29
Suspension
    
    Propose if suspension was caused by
LGL, to include reasonable costs, profit and overheads.
    
    24-9-08: LGL can accept covering
reasonable costs, but not profit Overheads would have to be shown as
a cost related to the works under the Purchase order.
    
    KNM accepts the text as proposed by
LGL14.
    
    Clause 30
Non Waiver
    
    Propose to include that the provisions of this non
waiver be applied to the Seller, mutatis mutandis.
    
    24-9-08: LGL accepts the proposed
amendment.
    
    Closed15.
    
    Clause 31
No Assignment
    
    Propose to insert but subject always to guarantee
payment to Seller before the full stop in line 4.
    
    24-9-08: LGL does not accept the
proposed change.
LGL proposes to insert the words but
subject always to Sellers right to receive
payment under the Purchase Order
before the full stop at the end of the
clause in Line 4.
    
    KNM accepts the text as proposed by LGL16.
    
    Clause 32
Disputes
    
    Propose to refer disputes to arbitration, instead of
court of competent jurisdiction and the
arbitration award shall be final and binding.
    
    24-9-08: LGL does not accept the
proposed change.
    
    KNM accepts the text as proposed by LGL
 IMPORTANT
     




---



##### 



Adam Dickens
 From:
    
    Paul McFarlaneSent:
    
    Wednesday, 8 October 2008 4:50 PMTo:
    
    Adam Dickens; Debbie Wyatt; Roxane FitzroyCc:
    
    MOPU; SY Kit; TC MokSubject:
    
    RE: MOPU- 1003-L Autoclve supply  Insurances
   
    
    LGL notes that WE Smiths insurance policies are limited to the design and
manufacture of heat exchangers. Please advise how this would affect this package of work,
given that it is for the supply of an Autoclave, or pressure vessel?
 WES Response
  
    
    LGL also notes that the insurance policies do not include any provisions for
Principals interest.
Please advise if policies can be amended to include the interests of the Principal?
 WES Response
    
 
 
 From:  Sent:  To:  Cc:  Subject:




---



##### 



Lihir Services Australia Pty Ltd
 www.lglgold.com




---



##### 



Adam Dickens
 From:
    
    Adam DickensSent:
    
    Wednesday, 8 October 2008 2:43 PMTo:
    
    Paul McFarlaneCc:
    
    Roxane Fitzroy; Debbie Wyatt; MOPUSubject:
    
    MOPU-1003-L Autoclave Fixed PricingImportance:
    
    High
   st
 §
    
    The price of
          is  based
on the currency exchange rate of
          .§

    
    The price of           is based on the currency exchange rate of           .
 th
 http://www.rba.gov.au/statistics/exchange__rates.html
 th th th
  Lihir Services Australia Pty Ltd
 www.lglgold.com




---



##### 



Adam Dickens
 From:
    
    Adam DickensSent:
    
    Thursday, 2 October 2008 4:15 PMTo:
    
    Paul McFarlane; Debbie Wyatt; Roxane FitzroyCc:
    
    MOPUSubject:
    
    MOPU-1003-L Terms and Conditions Negotiation tableImportance:
    
    HighAttachments:
    
    MOPU-1003-0D-C  WES  Terms & Conditions Table.doc
     Lihir Services Australia Pty Ltd
 www.lglgold.com




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    KNM / WES Response1.
    
    Clause 5
Security and
Retention
    
    Propose no withholding of percentage of any
invoice is allowed, unless with sellers prior
agreement in writing.
    
    24-9-08: This is acceptable to LGL
    
    Closed2.
    
    Clause 6.1
Liability for Tax
    
    Propose no withholding of percentage of any
payment is allowed, unless with sellers prior
agreement in writing.
    
    24-9-08: This will be acceptable as it is
envisaged that no tax liabilities would be
incurred between companies (export
arrangements)

2-10-08: Delete the 3rd paragraph of
clause 6.1 and replace with: Should the
Australian or PNG governments impose
a Tax (other than Income Tax), the
amount of this Tax will be considered a
debt due from the Seller to LGL and
LGL will require the Sellers written
agreement to deduct this amount from
the total Purchase Order value.
    
    Closed3.
    
    Clause 10
Payments
    
    Propose no setoffs of any payment is allowed,
unless with sellers prior agreement in writing.
    
    24-9-08: This will be acceptable as
there are no other agreements with this
company.
    
    Closed4.
    
    Clause 11 
Cancellation
    
    Propose to include KNM Schedule of
compensation as per KNM proposal
    
    24-9-08: The cancellation schedule of
compensation is not acceptable to LGL.
KNM to propose a revised schedule to
better reflect the promised delivery
schedule, and anticipated milestones.
    
    We propose our revised Cancellation
Schedule as follows:
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value above weeks after order5.
    
    Clause 12
Termination for
Default
    
    Line 5  propose to replace the word immediate
with upon the accruement of
liquidated damages

Line 6  propose to replace the word 30 calendar
days of notice in writing by LGL with the
    
    24-9-08: Line 5  This is not acceptable
to LGL 

Line 6  The mutually agreed period
shall be agreed prior to entering an
agreement which LGL believe to be 30
    
    Line 5  KNM agree to accept the text as
proposed by LGL. 

Line 6  KNM agree to accept the text as
proposed by LGL.
Para 2  closed.
 IMPORTANT
     




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    KNM / WES Responsemutually agreed period. 

Para 2  Propose to insert the words (of the
portion of works in question) after the word
payments before the words to the seller

Para 4  Propose no refund of monies paid
    
    days.

Para 2  OK

Para 4  This is not acceptable to LGL.

2-10-08: Para 4  again this isnt
acceptable to LGL, as we believe that
WE Smith could intentionally go into
breach of contract knowing that we
would have to take away the goods in
the condition they are in and have no
further obligation under the contract.
    
    Para 4  May we request LGL to reconsider
its decision or propose alternative verbiage.
The reason is that KNM would have incurred
overhead and material costs up to this stage.
 IMPORTANT
     




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    KNM / WES Response6.
    
    Clause 13
Warranties
Paragraph 2
    
    In line 3, propose to delete the words (in the
opinion of LGL)
    
    24-9-08: LGL accepts the proposed
amendments
    
    ClosedPropose to replace the words pay as a debt due
and payable. Purchase Order (lines 3 to 5) with
remedy so as to bring the performance
guarantees to the merchandise in compliance with
the requisite requirement and standard under this
Purchase Order7.
    
    Clause 14
Sellers
Indemnity
    
    Propose that the cumulative aggregate limit of
liability of the Seller under this Purchase Order is
capped at            of the total value of this Purchase
Order.
    
    24-9-08: LGL cannot accept a cap of
liability of           , KNM to advise more
favourable cap. Refer also item 12
below.
    
    KNM propose a cap of            of the Purchase
Order value as the cumulative aggregate
limit of liability of the Seller under this
Purchase Order.2-10-08: LGL believes that the changes
proposed under clause 27 below effect
WESs requirement here, and as such
propose no changes to this clause.8.
    
    Clause 15
Insurance to be
arranged by the
Seller
    
    Propose to maintain KNM insurance policy
    
    24-9-08: LGL requires further
information regarding the insurances
held by KNM, to further analyse this
response.
    
    Attached please find our insurance policies.2/10/08: LGL believes that your policies
meet the requirements of the contract,
and as such propose no changes be
made to the words.9.
    
    Clause 16
General
Insurance
provisions
    
    Propose to maintain KNM insurance policy
    
    24-9-08: LGL requires further
information regarding the insurances
held by KNM, to further analyse this
response.
    
    Attached please find our insurance policies.2/10/08: LGL believes that your policies
meet the requirements of the contract,
and as such propose no changes be
made to the words.10.
    
    Clause 22
Inspection of
Merchandise
    
    Propose to delete the words either resupply the
merchandise or return of the merchandise am
(Lines 7 to 12) and replace with the words
remedy the unsatisfactory or defective
    
    24-9-08: LGL accepts the proposed
endment.
    
    Closed
 IMPORTANT
     




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    KNM / WES Responsemerchandise so as to bring it in compliance with
the requirements and specifications under this
Purchase Order11.
    
    Clause 26
Delay and
Liquidated
Damages
    
    (a) Propose LD =            of the purchase order
value for each week of delay, up to a maximum of
           of the Purchase Order value.
    
    24-9-08:
Item (a): is acceptable to LGL
    
    a. Closed
b. KNM accepts the text as proposed by LGL
c. Closed
d. KNM accepts the text as proposed by LGL(b) Propose LD is sole remedy for Delay
    
    Item (b): this is not acceptable to LGL,
as the clause allows for a situation
where the LDs are found not to be
enforceable.(c) Para 2  propose to delete the words LGL
decides that it will not such delay event.
    
    Item (c): is acceptable to LGL.(d) Para 4  Propose to delete the paragraph in its
entirety.
    
    Item (d) Not accepted by LGL. LGL will
accept the sentence being amended by
deleting the words certified drawings
and replacing them with the words
Manufacturers Data Report12.
    
    Clause 27
Limitation of
Liability
    
    Item (a) Propose that the cumulative aggregate
limit of liability of the Seller under this Purchase
Order is capped at            of the total value of this
Purchase Order.
    
    24-9-08:
Item (a): A           cap is not acceptable to
LGL. A revised cap should be advised
by KNM. KNM should also consider
their available insurances.
    
    a. KNM propose a cap of            of the
Purchase Order value as the cumulative
aggregate limit of liability of the Seller under
this Purchase Order.
b. KNM accepts the text as proposed by LGLItem (b) Propose to delete the last paragraph in its
entirety
    
    Item (b): This is not acceptable to LGL
2-10-08:Item (a): Propose to Amend Clause 27,
Limitation of Liability, by inserting the
words          , after the
words  Contract is limited to.13.
    
    Clause 29
Suspension
    
    Propose if suspension was caused by LGL, to
include reasonable costs, profit and overheads.
    
    24-9-08: LGL can accept covering
reasonable costs, but not profit.
Overheads would have to be shown as
a cost related to the works under the
Purchase order.
    
    KNM accepts the text as proposed by LGL14.
    
    Clause 30
Non Waiver
    
    Propose to include that the provisions of this non
waiver be applied to the Seller, mutatis mutandis.
    
    24-9-08: LGL accepts the proposed
amendment.
    
    Closed
 IMPORTANT
     




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    KNM / WES Response15.
    
    Clause 31
No Assignment
    
    Propose to insert but subject always to guarantee
payment to Seller before the full stop in line 4.
    
    24-9-08: LGL does not accept the
proposed change.
    
    KNM accepts the text as proposed by LGLLGL proposes to insert the words but
subject always to Sellers right to receive
payment under the Purchase Order
before the full stop at the end of the
clause in Line 4.16.
    
    Clause 32
Disputes
    
    Propose to refer disputes to arbitration, instead of
court of competent jurisdiction and the
arbitration award shall be final and binding.
    
    24-9-08: LGL does not accept the
proposed change.
    
    KNM accepts the text as proposed by LGL
 IMPORTANT
     




---



##### 



Adam Dickens
 From:
    
    Adam DickensSent:
    
    Thursday, 2 October 2008 12:14 PMTo:
    
    Paul McFarlane; Debbie Wyatt; Roxane FitzroyCc:
    
    MOPUSubject:
    
    MOPU-1003-L Autoclve supply  Insurances
      Lihir Services Australia Pty Ltd
 www.lglgold.com




---



##### 



Adam Dickens
 From:
    
    Debbie WyattSent:
    
    Thursday, 2 October 2008 8:23 AMTo:
    
    Adam DickensCc:
    
    Paul McFarlane; MOPU; Soheil; Roxane Fitzroy; GC Chew (EPD)Subject:
    
    J0807701F  WES Insurance SchedulesAttachments:
    
    PI and PL.pdf; Industrial special risk & Crime.pdf; Marine Cargo.pdf; Cert of currency
ALLIANZ Workers Comp to 30.6.09.pdf; Machinery breakdown.pdf; MotorFleet.pdf;
Medical exp and Repatriate.pdf; Corporate travel.pdf
     W.E. Smith Engineering Pty Ltd




---



##### 








---



##### 



SCHEDULE OF COVER
Professional Indemnity
 INSURED
  BUSINESS OF INSURED
  PERIOD OF INSURANCE
  SCOPE OF COVER
    

: Section A  Public LiabilityIndonesia AUD            any one occurrence in excess of USD            any one occurrenceAustralia AUD            any one occurrenceSection B  Pollution  Not applicableSection C  Products LiabilityIndonesia AUD            any one occurrence and in the aggregate in excess of USD            any one occurrence and in the aggregate in any one period of insuranceAustralia AUD            any one occurrence and in the aggregate any one period of insuranceSection D  Professional IndemnityAUD            any one claim and in the aggregate in respect of all losses during the period of insuranceGEOGRAPHICAL LIMITS
    

For damages claims brought against the Insured in a court of Law within the Commonwealth of Australia.JURISDICTION LIMITS
    

The insurance shall be governed by and construed in accordance with the laws of Australia and each party agrees to submit to the exclusive jurisdiction of the courts of AustraliaPERIOD
    
    : 31/12/07 to 31/12/08 At 4pm Local TimeLIMITS OF LIABILITY
    
    : See Scope of CoverRETROACTIVE DATE
    
    : Unlimited in respect to Section D  Professional IndemnityEXCESS
    
    : Section A & C  Public and Products Liabilityeach and every loss inclusive of costs and expensesSection B  Pollution Liability: Not applicable




---



##### 



Section D  Professional Indemnityincluding costs and expenses, each and every claimENDORSEMENTS
    
    : Asbestos ExclusionWe are not liable to indemnify you in respect of any claim directly or indirectly based upon, attributable to, or in consequence of bodily injury and/or property damage (including loss of property) directly or indirectly caused by or arising from:i)    Mining, processing, transportation, distribution and/or storage asbestos.ii)  Manufacture of asbestos products and/or processing of material containing asbestos.iii)  Any process of decontamination treatment or control of asbestos.Item iii) shall only apply in those claims arising in consequence of inhalation of asbestos fibre or damage to or loss of use property due to presence of asbestos.Terrorism Exclusion EndorsementNotwithstanding any provision to the contrary within this insurance or any endorsement thereto it is agreed
that this insurance excludes death, injury, illness, loss, damage, cost or expense of whatsoever nature directly
or indirectly caused by, resulting from or in connection with any Act of Terrorism regardless of any other cause
or event contributing concurrently or in any other sequence to the loss;For the purpose of this endorsement an Act of Terrorism means an act, including but rot limited to the use of
force or violence and/or threat thereof, of any person or group(s) of persons, whether acting alone or on behalf
of or in connection with any organisation(s) or government(s) which form its nature or context is done for, or in
connection with, political, religious, ideological, ethnic or similar purposes or reasons, including the intentio to
influence any government and/or to put the public, or any section of the public, in fear.This endorsement also excludes death, injury, illness, loss, damage, cost or expense of whatsoever nature
directly or indirectly caused by, resulting from or in connection with any action taken in controlling, preventing,
suppressing or in any way relating to an Act of Terrorism.SPECIAL FEATURES
    
    : NOTE  You must clearly indentify all business
activities for which indemnity is required.NO CLAIM CAN BE MADE AGAINST THE POLICY ONCE IT
HAS EXPIRED OR HAS BEEN CANCELLED.
 POLICY WORDING
 
 NOTES




---



##### 



POLICY EXCLUSIONS
  INSURER
    
    
    
    
    
    PER CENT POLICY NO.HW Wood
    
    
    
    
    
    100.0000 PPL259180738 Mary Avenue LONDON ENGLAND UK EC3A8BHActual Insurers :Brit Syndicates Ltd  Syndicate 2987
    
    
    100.000055 Bishopsgate LONDON UK ECRN 3AS
 SPECIAL NOTE




---



##### 



SCHEDULE OF INSURANCE
 Policy Type:
    
    Industrial Special RisksPolicy Number:
    
    332894701ISRInsurer:
    
    Zurich Aust Insurance LtdPeriod of Insurance:
    
    31/12/07 4.00 pm Local Time to 31/12/08 4.00 pm Local TimeEffective Date:
    
    31/12/07Our Reference:
    
    07120241Name of Insured:
    
    KNM Pty Ltd, HEA Australia Pty Ltd, W E Smith Engineering Pty Ltd and PT Heat Exchangers Indonesia FTRR&IDescription of Business:
    
    All activities of the Insured, principally but not limited to:-Design and manufacture heat exchangersAnd any other activities incidental thereto.Situation:
    
    As per scheduleAnd anywhere in Australia (including contract sites where the Insured has property or carries on business, has goods or other property stored or being processed or has work done).Covering:
    
    Section 1  Property Damage
Physical loss destruction of or damage to the property as a result of a peril not excluded.Section 2  Consequential Loss
Loss resulting from interruption to the business consequent upon physical loss, destruction of or damage to the property insured under Section 1.Property Insured:
    
    All real and personal property of every kind and description belonging to the insured.Limits of Liability:
    
    The amounts set out hereunder represent the insurer(s) maximum limit(s) of liability any one loss or series of losses arising out of any one event at any one situation subject to any lesser sub-limit(s) specified elsewhere in the policy and the schedule.·      Section 1  Property Damage·      Section 2  Consequential LossAny One LossAny One LocationSub-Limits of Liability:
    
    The liability of the insurer(s) shall be further limited in respect of any one loss or series of losses arising out of any one event at any one situation as set out hereunder.Section 1  Property Damage




---



##### 



Accidental DamageBurglary & Theft of PropertyMoneyDirectors/Employees/Visitors Personal EffectsGlassRemoval Of DebrisExtra Cost of ReinstatementCost of Rewriting RecordsExpediting ExpensesSection 2  Consequential LossProfessional FeesAdditional Increased Cost of WorkingPublic UtilitiesPremises in the Vicinity (Prevention of Access)Indemnity Period:
    
    12 months monthsUninsured Working Expenses:
    
    All Business Expenses which vary with the Turnover of the BusinessDeclared Values:
    
    Section 1  Property DamageAssets
    
    As per ScheduleSection 2  Consequential LossAll Gross ProfitInsured PayrollAdditional Increased Cost of WorkingProfessional FeesDeductible:
    
    The Insured shall bear the following amounts in respect of each claim or series of claims arising out of any one original source or cause.
 .
    
    Earthquake, subterranean fire or volcanic eruptionAn amount equal to 1% of the total Declared Values
for property insured at the loss situation
or $20,000 whichever is the lesser..
    
    Flood at Boambee
    
    $.
    
    Directors/Employees Personal Property
    
    $.
    
    Public Utilities.
    
    Premises in the Vicinity (Prevention of Access).
    
    All Other Losses
    
    $
 Policy Wording:
    
    ICA/NIBA Mark IV Industrial Special Risks Wording
 INSURER
    

PER CENT
    
    

POLICY NO.Zurich Aust Insurance Ltd
    
    
    100.0000
    
    
    
    332894701ISRPO Box 442 WEST PERTH WA 6872




---



##### 



SPECIAL NOTE




---



##### 



Schedule of Declared Assets
Our Reference: 07120241




---



##### 



CRIME SECTION
 PROPERTY INSURED
 Declared Values
 Section 1

    
    All Property InsuredSection 2

    
    All Gross ProfitInsured PayrollAdditional Increased Cost of WorkingProfessional FeesLimits of LiabilitySection 1Section 2Sub-Limits of LiabilitySection 1  Material Loss or Damage Burglary/Theft or any attempt thereat (other than money) Directors/Employees/Visitors Personal Effects Money Removal of Debris Glass Theft of Property in the Open (Except Money) Expediting Expenses Cost of Rewriting Records Extra Cost of Reinstatement Accidental DamageSection 2  Consequential Loss Professional Fees Additional Increase in Cost of Working Public Utilities Premises in the Vicinity (Prevention of Access)Indemnity Period: 12 months
 Payroll Limits
 Initial Period
    
    100% for
    
    weeksRemaining Period
    
    25% for
    
    weeks as defined hereinConsolidation Period
    
    (Dual Basis)
    
    weeks
 PERILS INSURED
  SUM INSURED
  EXCESS
 1. Earthquake, Subterranean Fire or Volcanic Eruptiona)     
orb)      An amount equal to 1% of the total declared values
at the Situation where the damage occurs, whichever
is the lesser2. Directors/Employees Personal Property3. Public Utilities4. Premises
in the Vicinity (Prevention of Access)




---



##### 



5. All Other Losses
    
    each and every claim.
 GEOGRAPHIC LIMITS




---



##### 



SCHEDULE OF COVER
Marine Cargo/Transit Insurance
Our Reference: 08010259
 INSURED
  PERIOD OF INSURANCE
  TYPE OF INSURANCE
  DESCRIPTION OF OPERATIONS
  INTEREST INSURED
  GEOGRAPHIC LIMITS
  CONVEYANCES
  LIMIT ANY ONE LOSS
 ImportsExportsInland
 BASIS OF VALUATION
 Overseas
 Insureds own plant and equipment and office equipment
 Inland or Indonesia
 METHODS OF TRANSPORT
  DESCRIPTION OF PACKING




---



##### 



Allianz Workers Compensation (NSW) Limited
 CERTIFICATE OF CURRENCY
    
    (ALLIANZ LOGO)
  
  1. STATEMENT OF COVERAGE
 Workers
Compensation Act 1987
 This Certificate is valid from 11/08/2008 to 30/06/2009
  2.
EMPLOYERS INFORMATION
 POLICY NUMBER
    
    MWP 0123637LEGAL NAME
    
    W E SMITH ENGINEERING PTY LTDTRADING NAME
    
    W E SMITH ENGINEERING PTY LTDABN
    
    74 096 147 983ACN/ARBN
    
    096 147 983
 WorkCoverIndustryClassificationNumber (WIC)
    
    Industry
    
    Numbers of Workers*
    
    Wages+276900
    
    
    MFG EXCHANGE AND PRESSURE VESSELS
    
    
    151
 
 *
    
    Number of workers includes contractors/deemed workers+
    
    Total wages estimated for the current period 3.
IMPORTANT INFORMATION
 Workers Compensation Act 1987
   Carly SmithCarly SmithAuthorised Officer
    
    (NSW WORKCOVER LOGO)Agent Underwriting DepartmentPhone: 1300 130 664 Fax: 02 9266 7223GPO Box 5429Sydney NSW 2001




---



##### 



SCHEDULE OF COVER
Machinery Breakdown
Our Reference: 07120236
 INSURED
PLANT AND/OR INSURED EQUIPMENT
 1.
    
    
    Specified Items of Electrical Electronic and
Mechanical Plant as shown on the attached
schedule, including electronic
control equipment associated exclusively
with and forming part of the insured plant.Excesson all plate rolling machines and any items of plant with a declared
value of $200,000on all other items2.
    
    
    Other unspecified Electrical and Mechanical
Items of Plant, including electronic control
equipment associated exclusively
with and forming part of the insured
plant.In respect of overhead cranes the cover is limited to
motors and gearboxes.No other mobile or lifting and
handling plant is insured.Excesson any items of plant with a declared value of
$200,000, and all plate rolling machineson all other items3.
    
    
    Boilders and Unfired Pressure Vessels,
together with associated pressure pipe
systems connected thereto.Excess4.
    
    
    Computer and Peripheral Equipment Breakdown
 on insured equipment as per the following
schedule:Schedule of Equipment to be suppliedExcess




---



##### 



5.
    
    

Option
A: Electronic Data
Restoration Costs following
insured damage to insured
equipment covered under Item
No. 4.Excess6.
    
    

Option
B: Increased Cost of
Working following insured
damage to insured equipment
covered under Item No. 4.Indemnity Period: 3 monthsExcess
 SITUATION/S




---



##### 



SCHEDULE OF COVER
Motor Fleet
 INSURED
  DESCRIPTION OF OPERATIONS
  PERIOD OF INSURANCE
  COVERING
  SUMS INSURED
 Material Damage Cover
 
 Third Party Liability Cover
 Third Party Property Damage Cover
  Third Party Bodily Injury Supplementary Cover
  EXCESSES
  POLICY WORDING
  NOTES
 INTERESTED PARTY
 
 INSURER
    
    PERCENT
    
    POLICY NO.QBE Insurance (Australia) Limited  200 St Georges Terrace PERTH WA 6000
    
    
    100.0000
    
    
    
    41A399050MVA
 SPECIAL NOTE




---



##### 



SCHEDULE OF VEHICLES
Reference: 08010114
 Item
    
    Regn
    
    Year
    
    Description
    
    Sum Insd
    
    Cover
    
    Excess1
    
    
    
    
    2002
    
    
    Mitsubishi Triton Ute
    
    Market Value
    
    Comprehensive2
    
    
    
    
    2003
    
    
    Toyota Hilux
    
    Market Value
    
    Comprehensive3
    
    
    
    
    2005
    
    
    Holden Rodeo
    
    Market Value
    
    Comprehensive4
    
    
    
    
    2006
    
    
    Nissan Pulsar Sedan
    
    Market Value
    
    Comprehensive5
    
    
    
    
    2003
    
    
    Mitsubishi Lancer Sedan
    
    Market Value
    
    Comprehensive6
    
    
    
    
    2004
    
    
    Holden Acclaim
    
    Market Value
    
    Comprehensive7
    
    
    
    
    2005
    
    
    Holden Commodore Equipe
    
    Market Value
    
    Comprehensive8
    
    
    
    
    1998
    
    
    Ford Falcon Sedan
    
    Market Value
    
    Comprehensive9
    
    
    
    
    2002
    
    
    Ford Falcon AU Forte
    
    Market Value
    
    Comprehensive10
    
    
    
    
    2002
    
    
    Ford Falcon AU Forte
    
    Market Value
    
    Comprehensive11
    
    
    
    
    2003
    
    
    Nissan Navara OX
    
    Market Value
    
    Comprehensive




---



##### 



SCHEDULE OF COVER
Medical Expenses/Repatriation
Our Reference 08010150
 INSURED
  DESCRIPTION OF OPERATIONS
  PERIOD OF INSURANCE
  PROPERTY INSURED
 AGGREGATE LIMITS OF LIABILITY
 (a) Personal Injury(i) Any One Accident or Occurrence(ii) Non Scheduled Air Travel(b) Kidnap, Ransom & Extortion(c) Political Evacuation & Nautral Disaster Expenses
 SCHEDULE OF SUMS INSURED
 Sums Insured(each Insured Person)Coverage Section
    
    Single1.
    
    Medical Expenses2.
    
    Emergency Medical Evacuation3.
    
    Repatriation of Mortal Remains4.
    
    Personal InjuryEvents 1-16 Lump Sum BenefitEvent 17 Temporary Total Disablement Weekly Benefit Amount5.
    
    Personal Liability6.
    
    Kidnap, Ransom & ExtortionInsuring Clause 1Insuring Clause 2Insuring Clause 37.
    
    Political Evacuation
 Sums Insured(each Insured Person)Coverage Section
    
    Couple/Family1.
    
    Medical Expenses2.
    
    Emergency Medical Evacuation3.
    
    Repatriation of Mortal Remains4.
    
    Personal InjuryEvents 1-16 Lump Sum BenefitEvent 17 Temporary Total Disablement Weekly Benefit Amount




---



##### 



5.
    
    Personal Liability6.
    
    Kidnap, Ransom & ExtortionInsuring Clause 1Insuring Clause 2Insuring Clause 37.
    
    Political Evacuation
 PERILS INSURED
 Insured Persons
  Schedule of Insured Persons
 Country of
    
    Commencement
    
    Pre-ExistingInsured Person
    
    Dependants
    
    Residence
    
    Date
    
    Conditions Excl
 SUM INSURED
  EXCESS
  
  GEOGRAPHIC LIMITS
  POLICY WORDING
  NOTES
  AnnualPremium
    
    GST
    
    Stamp DutySingle (expat)Single (Inpat)CoupleFamily
 OUT OF POCKET EXPENSES




---



##### 



DISCRETIONARY PAYMENTS
  a)
    
    the Insured Person has returned to Australia
on a
permanent basis;b)
    
    within thirty (30) days of permanently
returning to
Australia, the Insured Person has applied to join
or
reactivate membership of an Australian registered
Health Fund;c)
    
    the Insured Person is not eligible for benefits from
that
Fund because of provisions relating to pre-existing conditions or waiting periods; andd)
    
    the Medical Expenses are incurred within 13 months of
the Insured Person permanently returning to Australia.
  INSURER
    
    PER CENT
    
    POLICY NO.Chubb Insurance Co Ltd
    
    
    100.0000
    
    
    
    93105628Level 22 Exchange Plaza 2 The Esplanade PERTH WA 6000
 SPECIAL NOTE




---



##### 



SCHEDULE OF COVER  Corporate Travel
 INSURED
  BUSINESS OF INSURED
  PERIOD OF INSURANCE
  INSURED PERSONS
  SCOPE OF COVER
  GEOGRAPHICAL LIMITS
  PERIOD OF COVER
  BENEFITS
 AGGREGATE LIMITS OF LIABILITY
 Section 1 
    
    Personal Injury(i) Any one Accident or Occurrence(ii) Non Scheduled Air Travel Single Engine Multi Engine HelicopterSection 11 
    
    Extra Territorial Workers CompensationSection 12 
    
    Kidnap, Ransom & ExtortionSection 13 
    
    Political Evacuation & Natural Disaster
Expenses




---



##### 



SCHEDULE OF SUMS INSURED
 1.
    
    
    Personal InjuryIf Spouse/Partner and
Dependant Children are covered by the Policy, please
refer below for the Sums Insured
under Coverage Section 1.Event 1 DeathEvent 2 Permanent Total DisablementEvents 3-19 Other Permanent DisablementEvent 20 Temporary Total DisablementSpouse/PartnerEvent 1 DeathEvent 2 Permanent Total DisablementEvents 3-19 Other Permanent DisablementEvent 20 Temporary Total DisablementDependant ChildrenEvent 1 DeathEvent 2 Permanent Total DisablementEvents 3-19 Other Permanent DisablementEvent 20 Temporary Total Disablement2.
    
    
    Medical Expenses3.
    
    
    Emergency Medical Evacuation4.
    
    
    Repatriation of Mortal Remains5.
    
    
    Cancellation/Curtailment/Additional Expenses6.
    
    
    Personal Liability7.
    
    
    Luggage, Personal Effects, Travel
Documents, Money & Credit CardsSpecified Items: Portable Business Equipment8.
    
    
    Alternative Employee or Resumption
of Assigment Expenses9.
    
    

Rental Vehicle Collision Damage & Theft Excess Cover10.
    
    
    Missed Transport Connection11.
    
    
    Extra Territorial Workers CompensationWeekly BenefitsCommon Law12.
    
    
    Kidnap, Ransom & ExtortionInsuring Clause 1Insuring Clause 2Insuring Clause 313.
    
    
    Political Evacuation & Natural
Disaster Expenses14.
    
    
    Corporate Travellers Family
Assistance
 DEDUCTIBLE
 Temporary Total Disablement  WeeklyBenefits  InjuryLuggagePortable Business Equipment




---



##### 



POLICY WORDING
  INSURER
    
    PER CENT
    
    POLICY NO.Chubb Insurance Co Ltd
    
    
    100.0000
    
    
    
    93102492Level 22 Exchange Plaza 2 The Esplanade PERTH WA 6000
 SPECIAL NOTE
   OUR REMUNERATION
  COOLING OFF PERIOD
    IMPORTANT NOTICE




---



##### 



Adam Dickens
 From:
    
    Debbie WyattSent:
    
    Wednesday, 1 October 2008 2:12 PMTo:
    
    Adam DickensCc:
    
    Paul McFarlane; Roxane Fitzroy; Soheil; GC Chew (EPD); MOPUSubject:
    
    MOPU-1003-L Autoclave InformationImportance:
    
    HighAttachments:
    
    MOPU-1003-OB-C  KNM  Terms & Conditions Table.doc; HSE Policy.pdf; Safety
Statistic.pdf; Safety Awards.pdf; MOPU -1003-OA-T Section IV 30.9.08.pdf; List of
Insurance & policies.pdf; J0807701F Form of Tender.pdf
     W.E. Smith Engineering Pty Ltd
  
 
 From:
    
    Adam.DickensSent:
    
    Tuesday, 30 September 2008 12:59To:
    
    Debbie Wyatt; Paul McFarlane; Roxane FitzroyCc:
    
    MOPU_0801@lglgold.comSubject:
    
    MOPU-1003-L Autoclave InformationImportance:
    
    High
   
    
    Please submit pricing, in native currency components, along with the exchange rates used to
convert price to USD;
 KNM Response:
The price of
          is based
on the currency exchange rate of           .
The price of           is based on the currency exchange rate of           .
This equals the Autoclave price per our Price Schedule (Rev 3) of           .




---



##### 




    
    Please submit completed Section 4 based on your latest submission (and revised drawing),
noting ALL technical deviations from the spec (if any), and include all other information requested
within section 4, and other information as discussed in post tender correspondence;
 KNM Response: Please refer to attached files for updated Form of Tender.
 
    
    Please submit price for the Autoclave to be delivered FOB KNM Port, Kuantan, not FAS as
described in your latest offer;
 KNM Response: We confirm our delivery term FOB Malaysian Port, rolled onto ocean going barge
supplied ready by client for off loading. All barge, barge ramps shall be supplied by client.
In case of shipping, our delivery shall be FOB (underhook, excluding loading onto ship). It is the
intention that client supplied ship shall have the lifting crane facilities to perform lifting
responsibilities.
 
    
    Please find attached Contract Terms and conditions negotiation table. Please review,
and advise if these are acceptable to KNM / WE Smith; and,
 KNM Response: Please refer to attached response in Contract Terms & Conditions negotiation table.
  KNM Response: As WES is responsible for project design, materials procurement & project
management, and are only subontracting part of the fabrication to KNM, the contract would be
placed on W.E. Smith Engineering Pty Ltd.
 st
   Lihir Services Australia Pty Ltd
 www.lglgold.com




---



##### 








---



##### 



LGL
 MILLION OUNCE PLANT UPGRADE (MOPU)
 EQUIPMENT SUPPLY TENDER
SECTION IV FORM OF TENDER
 Date:
    
    1 OCT 2008Name of Tender:
    
    W. E. SMITH ENG PIL / KNM PROCESS SYSProposal Number:
    
    J0807701F / K0807036Validity of Proposal:
    
    30 daysEquipment:
    
    AC2004  Pressure Oxidation AutoclaveMake:Model:Type:Manufacturer:
    
    KNM PROCESS SYSTEMS SON BHDDealer distributor in Country:
    
    MALAYSIA




---



##### 



Equipment Tender # and Description
    
    AutoclaveTenderers Name:All prices to be in Australian or US currency (refer clause 4 of Section 1 Part A)Currency of Manufacturers QuotationLocation of Sellers Premises
 Table 1.1 Cost Breakdown
    
    UOM
    
    QTY
    
    Unit Cost
    
    Extended[List
item] -1343-AC-2004
    
    EA
    
    
    1[List
item] Start Up & Commissioning Spare
    
    EAEquipment Options
    
    EASpecial Tools
    
    EAExtended Warranty Costs (if applicable)
    
    EADiscount (if any)
    
    EAExport Packing
    
    EALoading to
Transport (FCA KNM workshop)
    
    EAForward Cover Foreign Currency Risk (if any)
    
    EASubtotal FCA (Incoterms 2000) Point of Manufacture (KNM Workshop)
 Freight/Logistics Cost Breakdown
    

UOM
    
    QTY
    
    Unit Cost
    
    ExtendedFreight to
nearest Seaport (FOB Malaysia Nearest Port of Export)
    
    EA
    
    
    1Customs/Port Terminal Charges (if any)
    
    EAForward Cover Foreign Currency Risk (if any)
    
    EASubtotal
FOB Malaysia Port(Incoterms 2000) SeaportTOTAL FAS COST
 
 We confirm our delivery term FOB Malaysian Port, rolled onto ocean going
barge supplied ready by client for off loading. All barge, barge ramps shall be
supplied by client. In case of shipping, our delivery shall be FOB (under hook,
excluding loading onto ship). It is the intention that client supplied ship
shall have the lifting crane facilities to perform lifting responsibilities. Section IV Form of Tender
    
    Pricing
    
    Page 1




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 COMMERCIAL DETAILS
 Equipment Tender # and Description
Tenderers Name:
 Tenderers Proposed Terms of Payment  Please refer propose payment team as per our proposal dated 29th Sept 2008.
 Cancellation
charges  Please refer propose cancellation charge as per our proposal dated 29th Sept 2008.
 Point(s) of Manufacture   KNM Malaysia Shop (Melaka, Gebeng/Kuantan Shop)
 Shipment Location   (Port Klang/Kuantan Port)
 Sub-Suppliers
  Please refer our sub-supplier list as attached.
 Progress Reports and Schedule(Detailed design, procurement, manufacturing, assembly, testing, delivery schedule and progress report)Number of weeks from date of Purchase Order
    
    of weeksFrequency of updates
    
    of weeks
 Liquidated Damages  Manufacturers Proposal, Subject to Assessment by LGL(Include details)Per Diem Rate (%)
    
    %Maximum Amount (%)
    
    %Warranties/GuaranteesFrom date of equipment startup-commissioning (Number of months)
    
    of months *From date of final component shipment (Number of months)
    
    of months ** whichever come first.Extended WarrantyList all extended warranties for the Equipment and componentsExtended Warranty Cost (if applicable)
    
    N/AOther Details(Add information if required)N/ADoes the Seller accept the Warranty Terms and Conditions?
    
    Yes oNo þ
 
 Section IV  Form of Tender
    
    Commercial Details
    
    Page 2




---



##### 



Drawings Operators Manuals and Parts Manuals(Where applicable)Preliminary Engineering Drawings for approvalNumber of days from date of Purchase OrderFinal Certified Engineering DrawingsNumber of days from date of approved preliminary drawingsFinal Certified(Where preliminary drawings are not required for approval)Number of days from date of Purchase OrderOperators Manuals(Installation, Operation, Maintenance and Training)Operator Manuals in addition to requirements outlined in Section IAdditional sets (Indicate cost if applicable)
    
    
    N/AElectronic sets  CD-R (Indicate cost if applicable)
    
    
    N/AParts Manuals(Including Bearings, Seals, and Filter Conversions)Parts Manuals in addition to requirements outlined in Section IAdditional sets (Indicate cost if applicable)
    
    
    N/AElectronic sets  CD-R (Indicate cost if applicable)
    
    
    N/AQuality Assurance/Quality Control(Include details)SeeISO/ U Stamp as per attached.Health Safety Environmental & Human Rights Compliance(Include details)See HSE as per attached.
 Tools
 Description
    
    AmountN/ATotal
    
    $
    0.00
 Control Local/Overseas Content
 Description
    
    AmountNot Applicable (We are self-operating)Total Contract Value
    
    $
    0.00
 
 Section IV  Form of Tender
    
    Commercial Details
    
    Page 3




---



##### 



LGL EQUIPMENT SUPPLY TENDER
  Additional
Items / Details  N/A
 
 Section IV  Form of Tender
    
    Commercial Details
    
    Page 4




---



##### 



Section IV Form of Tender
    
    Alternative Tender
    
    Page 5




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 COMMERCIAL DETAILS
 Equipment Tender
# and Description:Tenderers Name:
 Table
2.1 Schedule of key Dates
 Place of
    
    Start
    
    Available For
    
    Dispatch ExItem
    
    Tag
    
    Manufacture
    
    Manufacture
    
    Inspection or Testing
    
    Works
    
    Delivery Site(Weeks After Order)1343-AC-2004 (Autoclave)
    
    
    
    KNM Malaysia
Shop
 Table 2.2 Contractual Delivery Schedule
  Manufacture and SupplyDelivery Completion Date
 Table 2.3 Witnessed and Verified Performance
Tests
  Component and Test
    
    Cost Included?
    
    
    
    CostN/A
    
    N/ATotal Cost:
 
 Section IV  Form of Tender
    
    Schedule of Key Dates
    
    Page 6




---



##### 



Section IV  Form of Tender
    
    Weights and Dimensions
    
    Page 7




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 SPARE PARTS
 Equipment Tender # and Description:
Tenderers Name:
 Spare Parts
 Recommended spare parts for two (2)year of Operation(Tenderer to provide separate list of spare parts in Excel format)Commissioning spare parts(Tenderer to provide separate list of commissioning parts in Excel format)(see attach start up & commissioning spare)Spare Components(Tenderer to provide pricing for spare components)Export/Domestic PackingFreight (to nearest Port of Exit) (Malaysia Nearest Port)Ocean Freight to Port of EntryCustoms/Port Terminal Charges (if any)Inland Freight to Project SiteTOTAL COSTParts Discount (This parts discount would apply for all initial spare parts purchased)
 W.E Smith Engineering Pty Ltd, Hamilton Drive, Boambee via Coffs
Harbour, N.S.W 2450, Australia
 
 Approximate
value for Equipment spare parts carried at named locations
 N/A
 N/A
 
 Section IV  Form of Tender
    
    Spare Parts
    
    Page 8




---



##### 



Section IV  Form of Tender
    
    List of Spare Parts
    
    Page 9




---



##### 



Section IV  Form of Tender
    
    Availability Guarantees
    
    Page 10




---



##### 



Section IV  Form of Tender
    
    Technical On-Site Personnel and Support
    
    Page 11




---



##### 



Section IV  Form of Tender
    
    Technical On-Site Personnel and Support
    
    Page 12




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 Equipment Tender # and Description
Tenderers Name:
 Table 4.1 Technical Data Schedule
 Weeks After
    
    Vendor AgreementItem
    
    Award
    
    (Y/N)DATA WITH TENDERPreliminary general arrangement drawing
    
    With TenderProposed manufacturing Schedule
    
    With TenderRecommended commissioning & capital spares
    
    With TenderDATA AFTER AWARDDetailed and dimensioned general arrangement drawing including:   Lifting details   Operating and maintenance tolerances N/A   Piping and electrical interface details N/A   Itemised list of components (Body Drawing)Fixed and firm manufacturing scheduleInspection and test planOperating and maintenance manuals:   Preliminary
    
    N/A   Final
    
    At deliveryAs-built drawings
    
    At delivery
 
 Section IV  Form of Tender
    
    Technical Data Schedule
    
    Page 13




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    KNM / WES Response1.
    
    Clause 5 Security and  Retention
    
    Propose no withholding of percentage of
any invoice is allowed, unless with sellers prior agreement in writing.
    
    24-9-08: This is acceptable to LGL
    
    Closed2.
    
    Clause 6.1
Liability for Tax
    
    Propose no withholding of percentage of
any payment is allowed, unless with
sellers prior agreement in writing.
    
    24-9-08: This will be acceptable
as it is envisaged that no tax
liabilities would be incurred
between companies (export
arrangements)
    
    Closed3.
    
    Clause 10 Payments
    
    Propose no setoffs of any payment is
allowed, unless with sellers prior
agreement in writing.
    
    24-9-08: This will be acceptable
as there are no other agreements
with this company.
    
    Closed4.
    
    Clause 11Cancellation
    
    Propose to include KNM Schedule of
compensation as per KNM proposal
    
    24-9-08: The cancellation
schedule of compensation is not
acceptable to LGL. KNM to propose
a revised schedule to better
reflect the promised delivery
schedule, and anticipated
milestones.
    
    We propose our revised Cancellation
Schedule as follows:
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value           weeks after order
     % of PO value above weeks after order5.
    
    Clause 12Termination forDefault
    
    Line 5  propose to replace the word
immediate with upon the accruement of
liquidated damages 
Line 6  propose to replace the word 30
calendar days of notice in writing by
LGL with the mutually agreed period.
Para 2  Propose to insert the words
(of the portion of works in question)
after the word payments before the
words to the seller 
Para 4  Propose no refund of monies paid
    
    24-9-08: Line 5  This is not
acceptable to LGL 
Line 6  The mutually agreed
period shall be agreed prior to
entering an agreement which LGL
believe to be 30 days. 
Para 2  OK
Para 4  This is not
acceptable to LGL.
    
    Line 5  KNM agree to accept the text
as proposed by LGL.
Line 6  KNM agree to accept the text
as proposed by LGL.
Para 2  closed.
Para 4  May we request LGL to
reconsider its decision or propose
alternative verbiage.
The reason is that KNM would have
incurred overhead and material costs up
to this stage.
 IMPORTANT
     




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    KNM / WES Response6.
    
    Clause 13 Warranties Paragraph 2
    
    In line 3, propose to delete the words (in the
opinion of LGL)
Propose to replace the words pay as a debt due
and payable.... Purchase Order (lines 3 to 5)
with remedy so as to bring the performance
guarantees to the merchandise in compliance
with the requisite requirement and standard
under this Purchase Order
    
    24-9-08: LGL accepts the
proposed amendments
    
    Closed7.
    
    Clause 14
Sellers Indemnity
    
    Propose that the cumulative aggregate limit of
liability of the Seller under this Purchase
Order is capped at           of the total value of
this Purchase Order.
    
    24-9-08: LGL cannot accept a
cap of liability of           . KNM
to advise more favourable
cap. Refer also item 12
below.
    
    KNM propose a cap of           of the Purchase
Order value as the cumulative aggregate
limit of liability of the Seller under this
Purchase Order.8.
    
    Clause 15
Insurance to be
arranged by the
Seller
    
    Propose to maintain KNM insurance policy
    
    24-9-08: LGL requires further
information regarding the
insurances held by KNM, to
further analyse this
response.
    
    Attached please find our insurance policies.9.
    
    Clause 16
General Insurance
provisions
    
    Propose to maintain KNM insurance policy
    
    24-9-08: LGL requires further
information regarding the
insurances held by KNM, to
further analyse this
response.
    
    Attached please find our insurance policies.10.
    
    Clause 22
Inspection of
Merchandise
    
    Propose to delete the words either resupply the
merchandise or return of the merchandise
(Lines 7 to 12) and replace with the words
remedy the unsatisfactory or defective
merchandise so as to bring it in compliance with
the requirements and specifications under this
Purchase Order
    
    24-9-08: LGL accepts the
proposed amendment.
    
    Closed11.
    
    Clause 26
Delay and
Liquidated Damages
    
    (a) Propose LD =           of the purchase order
value for each week of delay, up to a maximum
of           of the Purchase Order value.
(b) Propose LD is sole remedy for Delay
    
    24-9-08: 
Item (a): is acceptable to LGL
Item (b): this is not
acceptable to LGL, as the
clause allows for a situation
where the LDs are found not
to be enforceable.
    
    a. Closed
b. KNM accepts the text as proposed by LGL
c. Closed
d. KNM accepts the text as proposed by LGL
 IMPORTANT
     




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    KNM / WES Response(c) Para 2 - propose to delete  the
words LGL  decides that it  will not  such delay event. (d) Para 4 -
Propose to delete  the paragraph in  its entirety.
    
    Item (c): is acceptable to LGL.
Item (d) Not accepted by LGL. LGL will
accept the sentence being amended by
deleting the words certified
drawings and replacing them with the
words Manufacturers Data Report12.
    
    Clause 27 Limitation of Liability
    
    Item (a) Propose
that the cumulative
aggregate limit of
liability of the
Seller under this
Purchase Order is
capped at           of
the total value of
this Purchase
Order.
Item (b) Propose to
delete the last
paragraph in its
entirety
    
    24-9-08: 
Item (a): A           cap is not acceptable
to LGL. A revised cap should be
advised by KNM. KNM should also
consider their available insurances.
Item (b): This is not acceptable to LGL
    
    a. KNM propose a cap of           of the
Purchase Order value as the cumulative
aggregate limit of liability of the
Seller under this Purchase Order.
b. KNM accepts the text as proposed by LGL13.
    
    Clause 29 Suspension
    
    Propose if
suspension was
caused by LGL, to
include reasonable
costs, profit and
overheads.
    
    24-9-08: LGL can accept covering
reasonable costs, but not profit.
Overheads would have to be shown as a
cost related to the works under the
Purchase order.
    
    KNM accepts the text as proposed by LGL14.
    
    Clause 30 Non Waiver
    
    Propose to include
that the provisions
of this non waiver
be applied to the
Seller, mutatis
mutandis.
    
    24-9-08: LGL accepts the proposed
amendment.
    
    Closed15.
    
    Clause 31 No
Assignment
    
    Propose to insert
but subject always
to guarantee
payment to Seller
before the full
stop in line 4.
    
    24-9-08: LGL does not accept the
proposed change.
LGL proposes to insert the words but
subject always to Sellers right to
receive payment under the Purchase
Order before the full stop at the end
of the clause in Line 4.
    
    KNM accepts the text as proposed by LGL16.
    
    Clause 32 Disputes
    
    Propose to refer
disputes to
arbitration,
instead of court
of competent
jurisdiction and
the arbitration
award shall be
final and binding.
    
    24-9-08: LGL does not accept the
proposed change.
    
    KNM accepts the text as proposed by LGL
 IMPORTANT
     




---



##### 



Anne SmithFrom:
    
    Adam DickensSent:
    
    Tuesday, 30 September 2008 12:59 PMTo:
    
    Debbie Wyatt; Paul McFarlane; Roxane FitzroyCc:
    
    MOPUSubject:
    
    MOPU-1003-L Autoclave InformationImportance:
    
    High
   
    
    Please submit pricing, in native currency components, along with the exchange rates used to convert
price to USD;
    
    Please submit completed Section 4 based on your latest submission (and revised drawing), noting ALL
technical deviations from the spec (if any), and include all other information requested within section 4,
and other information as discussed in post tender correspondence;
    
    Please submit price for the Autoclave to be delivered FOB KNM Port, Kuantan, not FAS as described
in your latest offer;
    
    Please find attached Contract Terms and conditions negotiation table. Please review, and advise if
these are acceptable to KNM / WE Smith; and,
    
    Please stipulate the entity that LGL would enter into a contract with, if your company is successful, for
the supply of the Autoclave?
 st
   Lihir Services Australia Pty Ltd
 www.lglgold.com




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    Final Resolution1.
    
    Clause 5
Security and
Retention
    
    Propose no withholding of percentage of
any invoice is allowed, unless with
sellers prior agreement in writing.
    
    24-9-08: This is acceptable to LGL2.
    
    Clause 6.1
Liability for Tax
    
    Propose no withholding of percentage of
any payment is allowed, unless with
sellers prior agreement in writing.
    
    24-9-08: This will be acceptable
as it is envisaged that no tax
liabilities would be incurred
between companies (export
arrangements)3.
    
    Clause 10 Payments
    
    Propose no setoffs of any payment is
allowed, unless with sellers prior
agreement in writing.
    
    24-9-08: This will be acceptable
as there are no other agreements
with this company.4.
    
    Clause 11
Cancellation
    
    Propose to include KNM Schedule of
compensation as per KNM proposal
    
    24-9-08: The cancellation
schedule of compensation is not
acceptable to LGL. KNM to propose
a revised schedule to better
reflect the promised delivery
schedule, and anticipated
milestones.5.
    
    Clause 12
Termination for
Default
    
    Line 5  propose to replace the word
immediate with upon the accruement of
liquidated damages
Line 6  propose to replace the word 30
calendar days of notice in writing by
LGL with the mutually agreed period.Para 2  Propose to insert the words
(of the portion of works in question)
after the word payments before the
words to the seller
Para 4  Propose no refund of monies paid
    
    24-9-08: Line 5  This is not
acceptable to LGL
Line 6  The mutually agreed
period shall be agreed prior to
entering an agreement which LGL
believe to be 30 days.
Para 2  OK Para 4  This is not
acceptable to LGL.6.
    
    Clause 13
Warranties
Paragraph 2
    
    In line 3, propose to delete the words
(in the opinion of LGL)

Propose to replace the words pay as a
debt due and payable.... Purchase Order
(lines 3 to 5) with remedy so as to
bring the performance guarantees to the
merchandise in compliance with the
requisite requirement and standard under
this
    
    24-9-08: LGL accepts the proposed
amendments
 IMPORTANT       




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    Final Resolution7.
    
    Clause 14
Sellers Indemnity
    
    Purchase Order
Propose that the cumulative aggregate limit of liability of the Seller under this Purchase Order
is capped at           of the total value of this Purchase Order.
    
    24-9-08: LGL cannot accept a cap of
liability of           . KNM to advise more favourable cap. Refer also item 12 below.8.
    
    Clause 15
Insurance to be
arranged by the
Seller
    
    Propose to maintain KNM insurance policy
    
    24-9-08: LGL requires further
information regarding the insurances
held by KNM, to further analyse this
response.9.
    
    Clause 16
General Insurance
provisions
    
    Propose to maintain KNM insurance policy
    
    24-9-08: LGL requires further
information regarding the insurances
held by KNM, to further analyse this
response.10.
    
    Clause 22
Inspection of
Merchandise
    
    Propose to delete the words either
resupply the merchandise or return of
the merchandise (Lines 7 to 12) and
replace with the words remedy the
unsatisfactory or defective merchandise
so as to bring it in compliance with
the requirements and specifications
under this Purchase Order
    
    24-9-08: LGL accepts the proposed
amendment.11.
    
    Clause 26
Delay and
Liquidated Damages
    
    (a) Propose LD =           of the purchase
order value for each week of delay, up
to a maximum of           of the Purchase
Order value.
(b) Propose LD is sole remedy for Delay
(c) Para 2  propose to delete the
words LGL decides that it will not
such delay event.
    
    24-9-08: Item (a): is acceptable to LGL
Item (b): this is not acceptable to
LGL, as the clause allows for a
situation where the LDs are found not
to be enforceable.
Item (c): is acceptable to LGL.(d) Para 4  Propose to delete the
paragraph in its entirety.
    
    Item (d) Not accepted by LGL. LGL will
accept the sentence being amended by
deleting the words certified
drawings and replacing them with the
words
 IMPORTANT
     




---



##### 



Lihir Gold Limited Commercial Departures Tracking Sheet
 Contract No:
    
    MOPU-1003
    
    LGL Contact:
    
    Adam DickensContract Name:
    
    Pressure Oxidation Autoclave
    
    External Contact:
    
    KNM  Paul McFarlane
 No.
    
    Clause
    
    Contractors Position
    
    Lihirs Position
    
    Final ResolutionManufacturers Data Report12.
    
    Clause 27
Limitation of Liability
    
    Item (a) Propose that the cumulative aggregate limit of
liability of the Seller under this Purchase Order is capped at           of the total value of this
Purchase Order.
Item (b) Propose to delete the last paragraph in its entirety
    
    24-9-08:
Item (a): A           cap is not acceptable to LGL. A revised cap should be advised by KNM. KNM should also
consider their available insurances.
Item (b): This is not acceptable to LGL13.
    
    Clause 29Suspension
    
    Propose if suspension was caused by LGL, to include reasonable
costs, profit and overheads.
    
    24-9-08: LGL can accept covering
reasonable costs, but not profit.
Overheads would have to be shown as a
cost related to the works under the
Purchase order.14.
    
    Clause 30Non Waiver
    
    Propose to include that the provisions of this non waiver
be applied to the Seller, mutatis mutandis.
    
    24-9-08: LGL accepts the proposed
amendment.15.
    
    Clause 31No Assignment
    
    Propose to insert but subject always to guarantee payment
to Seller before the full stop in line 4.
    
    24-9-08: LGL does not accept the
proposed change.
LGL proposes to insert the words but
subject always to Sellers right to
receive payment under the Purchase
Order before the full stop at the end
of the clause in Line 4.16.
    
    Clause 32Disputes
    
    Propose to refer disputes to arbitration, instead of court of
competent jurisdiction and the arbitration award shall be final and binding.
    
    24-9-08: LGL does not accept the proposed change.17.18.19.
 IMPORTANT
     




---



##### 



Anne Smith
 From
 Sent
 To:
 Cc
 Subject
      W.E. Smith Engineering Pty Ltd
 
 
 
 From  Sent  To  Cc  Subject  Importance
     W.E. Smith Engineering Pty Ltd




---



##### 



From  Sent  To  Cc  Subject  Importance
   
    
    Please find attached the latest Autoclave layout drawings and associated other drawings and
specifications (please put hold on seal ring material until advised by LGL). Please submit
revised price for this latest layout? Please ensure that pricing is submitted in accordance
with that as requested within the original tender;
 KNM Response: Please refer to our attached revised quotation.
 
    
    Please confirm fixed and firm delivery period for the design, manufacture and supply of this
pressure vessel;
 KNM
Response: 17 months from date of order.
 
    
    Please confirm pricing is FOB, KNM Port, Kuantan. Please confirm KNMs ability to load onto
an ocean going barge at this port; and,
 KNM
Response: We note your requirement for FOB however our offer is based
on FAS KNM Port, Kuantan.
We confirm we have the ability to load equipment onto an ocean going barge at this port.
 
    
    Please confirm number of permanent and transportation saddles included with KNMs offer.
 WES
Response: We have allowed for the three existing permanent saddles
and 2 transport saddles.
 th
   Lihir Services Australia Pty Ltd
 www.lglgold.com




---



##### 



(LOGO)
    
    W.E SMITH ENGINEERING PTY LTD (a subsidiary
of knm group)
    
    WES/EPD/QUO-001Rev 2Corporate Office
    
    
    
    30th October 2007Hamilton Drive, Coffs Harbour NSW 2450Tel. (+61 2)-6650 8888
    
    Fax (+61 2)-6658 3499E-mail: sales@wesknm.com.au                   Website: www.wesknm.com
 WES Ref. No.
    
    :
    
    J0807701 (K0807036F)      Revision 3Client RFQ No.
    
    :
    
    MOPU-1003-LDate
    
    :
    
    29 September 2008Lihir Gold LtdLevel 9500 Queen StBRISBANE QLD 4001Attention
    
    :
    
    Adam DickensPhone
    
    :Fax
    
    :Via email
    
    :PROJECT
    
    :
    
    MOPUEQUIPMENT
    
    :
    
    Autoclave
      W.E Smith Engineering Pty Ltd
 
 Paul McFarlane
Commercial Manager
 
 Encl. Attachment.
 Page 1 of 12




---



##### 



(KNM LOGO)
    
    KNM PROCESS SYSTEMS SDN BHD (200140-X)Corporate Office15 Jalan Dagang SB4/1, Taman
Sungai Besi Indah, 43300 Seri Kembangan, Selangor Darul Ehsan, MalaysiaTel. (60 3)-8946 3000 Fax (60 3)-8943
4781 E-mail: epd3@knm-group.com Website: www.knm-group.com
 KNM Ref. No.
    
    :
    
    K0807036 F/EPD3/E/80433Client RFQ No.
    
    :
    
    MOPU-1003-LDate
    
    :
    
    29 September 2008
 W.E Smith Engineering Pty Ltd.
 Attention
    
    :
    
    Mr. Paul McFariane / Mr. Ken SiminqtonPhone
    
    :Fax
    
    :Via email
    
    ::Dear Sirs,PROJECT
    
    :
    
    Million Ounce Plant Upgrade Project, Lihir IslandEQUIPMENT
    
    :
    
    Autoclave (Rev 3 )
    KNM Process Systems Sdn Bhd
 /s/ Chua Young Fong

CHUA YOUNG FONG
    
    /s/ Terry Chew

TERRY CHEWManager  Estimation & Engineering
    
    Director, Sales Division




---



##### 



(KNM LOGO)
    
    KNM PROCESS SYSTEMS SDN BHD
(200140-X)Corporate Office
15 Jalan Dagang SB4/1, Taman Sungai Besi Indah, 43300 Seri Kembangan, Selangor Darul Ehsan,
Malaysia
Tel. (60 3)-8946 3000 Fax (60 3)-8943 4781 E-mail: epd3@knm-group.com Website: www.knm-group.com
     1. Price:
  2. Scope of Supply and Work
 2.1.0 Equipment Scope of Supply
 o
    
    (X)
    
    Equipment proper complete with saddle support; nozzle and manway to be supplied by WES and welding to shell by KNM.o
    
    (X)
    
    Type of nozzle reinforcement(  ) Reinforcing pads
    
    (X) Self reinforcement
    
    (  ) Saddle/lip type self reinforced nozzleso
    
    (X)
    
    Internals attachment directly welded on the equipment only.o
    
    (  )
    
    Template for foundation (if required)o
    
    (  )
    
    Sliding/shiming plateo
    
    (X)
    
    Name plate and its supporto
    
    (  )
    
    Top davitso
    
    (X)
    
    Davit for manhole covero
    
    (X)
    
    Earthing lugso
    
    (X)
    
    Lifting lugs / lifting trunnions and tailing lugs C/W reinforcement beam (if required)o
    
    (  )
    
    Insulation support clips/rings (if required)o
    
    (  )
    
    Nuts for Fire protection (if required)o
    
    (  )
    
    Internal feed pipe until 1st flange connection (if applicable)o
    
    (  )
    
    Internal demister as specified in the datasheeto
    
    (X)
    
    Transportation saddleso
    
    (X)
    
    Spare part for construction & commissioning shall consists of 200% gasket & 10% bolts and
nuts (min 2/sets size) for manholes and nozzles with blindo
    
    (  )
    
    Spare parts for two year operation (quote separately as optional) shall consists of 200%
gasket & 10% bolts and nuts (min 2 /sets size) for manholes and nozzles with blind
 2.2.0 External Accessories
 o
    
    (X)
    
    Design, supply, fabricate and inspection of
Platform and Ladder clips and piping support cleats(X)
    
    (Unit price            ex-work for CS material)(  )
    
    (Unit price            ex-work for SS material)
 2.3.0 Engineering
 o
    
    (X)
    
    Mechanical Design (mechanical calculation, foundation loads and detail workshop
drawings)o
    
    (X)
    
    WPS/ PQR, ITP and manufacturer data report (MDR)o
    
    (X)
    
    Special Calcs  FEA
 2.4.0 Material Certificates
 o
    
    (X)
    
    Pressure Containing Parts(X)
    
    EN 10204 Type 3.1(  )
    
    EN 10204 Type 3.2o
    
    (X)
    
    Non Pressure Part (Steel Structure Parts)(X)
    
    EN 10204 Type 2.2(  )
    
    EN 10204 Type 3.1
 Page 2 of 14




---



##### 



(KNM LOGO)
    
    KNM PROCESS SYSTEMS SDN BHD (200140-X)Corporate Office
15 Jalan Dagang SB4/1, Taman Sungai Besi Indah, 43300 Seri Kembangan, Selangor Darul Ehsan,
Malaysia
Tel. (60 3)-8946 3000 Fax (60 3)-8943 4781 E-mail:
epd3@knm-group.com Website: www.knm-group.com
 2.5.0 Quality Assurance/Control
 
 o
    
    (X)
    
    Shop inspection, controls and tests, hydrostatic testo
    
    (X)
    
    Materials procurement as per KNM/WES approved Sub-Vendors Listo
    
    (X)
    
    ASME Code stamp
 2.6.0 NDE
 o
    
    (   )
    
    Non PWHT Equipment(   )
    
    UT / RT as per specso
    
    (X)
    
    PWHT Equipment(   )
    
    50mmthk and Below: UT and RT before PWHT; UT after
PWHT(X)
    
    Above 50mmthk: UT and TOFD before PWHT; UT after PWHT
 2.7.0 Finishing & Painting
  o
    
    (X)
    
    External surface preparation and painting as per spec 362-MA-103-00-001 Rev. 0.o
    
    (   )
    
    Internal coating for Carbon Steel material as per speco
    
    (   )
    
    Pickling and Passivation for Stainless Steel surfaceo
    
    (X)
    
    Rust prevention of vessel internals proper for transportation and storing as per specification(X)
    
    Filling desiccant (Silica gel) for equipment(   )
    
    Nitrogen (N2) charge at 0.5 Bar with valve and 2 pressure gauges for
equipment
 2.8.0 Other
 o
    
    (X)
    
    Our proposal is based on 3nos of permanent saddles and 2nos of transport
saddles.o
    
    (   )o
    
    (   )o
    
    (   )o
    
    (   )o
    
    (   )
 3. Exclusion from Scope of Work
 o
    
    (X)
    
    All site erection work & site assemblyo
    
    (X)
    
    Foundation works, anchor bolts, nuts and washerso
    
    (X)
    
    All instrumentation including agitators, motors, valves, gauge, spray
nozzles, electrical heat tracing, etco
    
    (X)
    
    Insulation and fireproofing material and workso
    
    (X)
    
    All special tools and fittings including sight glasso
    
    (X)
    
    All taxes, duties and VATo
    
    (X)
    
    All consequential losseso
    
    (X)
    
    All completed removable internal piping systems or other parts not welded to the vesselo
    
    (X)
    
    All completed removable process internals including trays, packings, distributors,
support grid, vane internal, inlet device, spraying systems etco
    
    (X)
    
    All thermal/process designo
    
    (X)
    
    Design, supply, fabricate and Inspection of platform and ladder C/W
finishing as per spec and trial assembly of platform & laddero
    
    (X)
    
    Special polishing for stainless steel materialo
    
    (X)
    
    Ferroxyl Testing.o
    
    (X)
    
    Lead/Membrane / Brick Lining.
 Page 3 of 14




---



##### 



(KNM LOGO)
    
    KNM PROCESS SYSTEMS SDN BHD (200140-X)Corporate Office
15 Jalan Dagang SB4/1, Taman Sungai Besi Indah, 43300 Seri Kembangan, Selangor Darul Ehsan,
Malaysia
Tel. (60 3)-8946 3000 Fax (60 3)-8943 4781 E-mail: epd3@knm-group.com Website:
www.knm-group.com
 4. Mechanical warranty
  5. Delivery Term:
     * Contractual specification
    
    Before Received of Order* Basic design data to allow purchasing of main materials
    
    Before Received of Order* Nozzle Elevation/Size
    
    At the time of Order* Nozzle Orientation
    
    weeks ARO* All Internal Attachment Information
    
    weeks ARO* All Pipe Support, Platform & Ladder Clips Information
    
    weeks ARO
 6. Validity:
   7. Payment Term:
   %
    
    
    - down payment after award of order%
    
    
    - on procurement of major material (shell & head plate)%
    
    
    - on complete assembly of shell to head%
    
    
    - upon completion of hydrostatic test at shop%
    
    
    - on submission of manufacturer data report (MDR)
 8. Other Commercial Matters
 *
    
    Free storage of equipments is limited to maximum 2 weeks, after that it
will be subjected to unit rates of USD50/M2/week*
    
    Liquidated Damages: Our proposal is NOT provided for LAD at this stage*
    
    Cancellation / Termination Costs
 Percentage of
    
    Cancellation ScheduleNo
    
    Total Contract Sum
    
    (week)1
    
    
    
    weeks from date of order2
    
    
    
    weeks from date of order3
    
    
    
    weeks from date of order4
    
    
    
    weeks from date of order5
    
    
    
    weeks from date of order
 Page 4 of 14




---



##### 



Price Schedule
 Client
    
    :
    
    W.E Smith Engineering Pty Ltd.Project
    
    :
    
    Million Ounce Plant Upgrade Project, Lihir IslandKNM
Ref No.
    
    :
    
    K0807036 F/EPD3 /E / 80433Client RFQ No.
    
    :
    
    MOPU-1003-LEquipment
    
    :
    
    Autoclave (Rev 3)Date
    
    :
    
    29th September 2008
 Price Schedule (Base Case)
Rev.2 COMMERCIAL
 PriceProcess Internal
    
    vessel
    
    Equipment
    
    DeliveryI/D
    
    TL ~ TL
    
    Win. Thk.
    
    
    
    
    
    Unit Wt.
    
    Total Wt.
    
    Unit Price
    
    Unit Price
    
    Total Price
    
    MonthsNo.
    
    Tag No.
    
    Description
    
    Material
    
    (mm)
    
    (mm)
    
    (mm)
    
    Qty
    
    (MT)
    
    (MT)
    
    ( USD )
    
    ( USD )
    
    ( USD )
    
    ARO1
    
    1343-AC-2004
    
    Autoclave
    
    SA516Gr.70N
    
    
    5,600
    
    
    
    44,820
    
    
    Head
    
    
    67
    
    
    
    1
    
    
    
    517.19
    
    
    
    517.19
    
    
    
    0682
    
    Spare part for start up and commissioning as per specified in our proposal
    
    
    
    
    
    LUMPSUM3
    
    Inland transportation of equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    LUMPSUMGrand Total
    
    FAS to Nearest Port of Export
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
 Page 6 of 14




---



##### 



Technical Data Summary
 Client
    
    :
    
    W.E Smith Engineering Pty Ltd.Project
    
    :
    
    Million Ounce Plant Upgrade Project, Lihir IslandKNM Ref No.
    
    :
    
    K0807036 F / EPD3 / E/ 80433Client RFQ No.
    
    :
    
    MOPU-1003-LEquipment
    
    :
    
    Autoclave (Rev 3)Date
    
    :
    
    29th September 2008
 Technical Data Summary Rev.2
 I/D
    
    TL ~ TL
    
    Min. Thk.
    
    
    
    
    
    Unit Wt.
    
    Total Wt.
    
    
    
    
    
    
    
    
    
    Painting
    
    DesignNo.
    
    Tag No.
    
    Description
    
    Material
    
    (mm)
    
    (mm)
    
    (mm)
    
    Qty
    
    (MT)
    
    (MT)
    
    RT
    
    PWHT
    
    Internal
    
    External
    
    Code1
    
    1343-AC-2004
    
    Autoclave
    
    SA516 Gr.70N
    
    
    5,600
    
    
    
    44,820
    
    
    Head
    
    
    67
    
    
    
    1
    
    
    
    610.56
    
    
    
    
    
    
    Full
    
    Yes
    
    No
    
    Yes
    
    ASME VIII DIV.168TOTAL
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
 Page 7 of 14




---



##### 



Shipping Data Summary
 Client
    
    :
    
    W.E Smith Engineering Pty Ltd.Project
    
    :
    
    Million Ounce Plant Upgrade Project, Lihir IslandKNM Ref No.
    
    :
    
    K0807036 F / EPD3 / E / 80433Client RFQ No.
    
    :
    
    MOPU-1003-LEquipment
    
    :
    
    Autoclave (Rev 3)Date
    
    :
    
    29th September 2003
 Shipping Data Summary Rev.2
 Dimension (m)
    
    Volume ( m3 )
    
    Weight (MT)No.
    
    Tag No.
    
    Description
    
    Qty
    
    Height
    
    Width
    
    Length
    
    Unit
    
    Total
    
    Unit
    
    Total1
    
    1343-AC-2004
    
    Autoclave
    
    
    1
    
    
    
    6.60
    
    
    
    6.40
    
    
    
    48.50
    
    
    
    2,049
    
    
    
    2,049
    
    
    
    610.56
    
    
    
    610.56TOTAL
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,049
    
    
    
    
    
    
    
    610.56
 Page 8 of 14




---



##### 



Anne Smith
 From:
    
    Adam DickensSent:
    
    Monday, 22 September 2008 1:54 PMTo:
    
    Paul McFarlaneCc:
    
    MOPU; Roxane Fitzroy; Debbie WyattSubject:
    
    MOPU-1003-L LGL Pressure Autoclave  Further clarification / informationImportance:
    
    High
   
    
    Please find attached the latest Autoclave layout drawings and associated other
drawings and specifications (please put hold on seal ring material until advised by LGL).
Please submit revised price for this latest layout? Please ensure that pricing is
submitted in accordance with that as requested within the original tender;
    
    Please confirm fixed and firm delivery period for the design, manufacture and supply
of this pressure vessel;
    
    Please confirm pricing is FOB, KNM Port, Kuantan. Please confirm KNMs ability
to load onto an ocean going barge at this port; and,
    
    Please confirm number of permanent and transportation saddles included with KNMs offer.
 th
   Lihir Services Australia Pty Ltd
 ( +61 7 3318 3349 (Direct)(LOGO) +61 7 3318 3300 (Switch)(LOGO) +61 7 3318 9203 (Fax)(LOGO) Lvl 9, 500 Queen Street, Brisbane, QLD, 4000(LOGO) GPO Box 905, Brisbane, QLD, 4001, Australia  www.lglgold.com




---



##### 



KNM REF.:
    
    K0807036 F / EPD3 / E / 80433WES REF.:
    
    J0807701FCLIENT REF.:
    
    MOPU-1003-LPROJECT:
    
    MILLION OUNCE PLANT UPGRADE PROJECT, LIHIR ISLANDEQUIPMENT:
    
    AUTOCLAVE
 COMMENTS ON LGL (MOPU) PURCHASE ORDER TERMS & CONDITIONS
 Article
    
    
    
    DESCRIPTION / COMMENTS
    
    REMARKSSECTION 1 PART B: PURCHASE ORDER
TERMS AND CONDITIONS5
    
    Security And Retention
    
    Propose no withholding of percentage of any invoice is allowed unless, with Sellers prior
agreement in writing.6
    
    Tax6.1
    
    Liability For Tax
    
    Propose no withholding of percentage of any payment is allowed unless, with Sellers prior
agreement in writing.10
    
    Payments
    
    Propose no setoffs of any payment is allowed unless, with Sellers prior agreement in writing.11
    
    Cancellation
    
    Propose to include KNM Schedule of Compensation as per KNM proposal.12
    
    Termination For DefaultLine 5
    
    
    
    Propose to replace the word immediate with upon the accruement of the Liquidated Damages.Line 6
    
    
    
    Propose to replace the word 30 calendar dove of notice in writing by LGL with the mutually
agreed period.Para 2
    
    
    
    Propose to insert: (of the portion of works in question)  after the word payments before
to the Seller.Para 4
    
    
    
    Propose no refund of monies paid.13
    
    Warranties
    
    Propose to delete the words (in the opinion of LGL)  in Line 3.Para 2Propose to replace the words pay as a debt duo and payable an amount,. of its loss. This
guarantees to the Merchandise in compliance with the requisite requirement and standard under
this Purchase Order  in Lines 3 to 5, with
remedy so as to bring the performance guarantees
to the Merchandise in compliance with the requisite requirement and standard under this Purchase
Order.14
    
    Sellers Indemnity
    
    Propose that the cumulative aggregate limit of liability of the Seller under this PO be capped
at            of the total PO value.15
    
    Insurance To Be Arranged By
Seller
    
    Propose to maintain KNM insurance policy.16
    
    General Insurance Provisions
    
    Propose to maintain KNM insurance policy.22
    
    Inspection Of Merchandise
    
    Propose to delete the words either resupply now Merchandise or return of the
Merchandise  in Line 7 to 12, and to replace the same with remedy the unsatisfactory or
defective Merchandise so as to bring it in compliance with the requirements and specifications
under his Purchase Order.26
    
    Delays And Liquidated Damages
    
    Propose LD =            of PO value for each week of delay, up to a maximum of           of the
Purchase Order Value.Propose LD is the sole remedy for late delivery.Para 2
    
    
    
    Propose to delete the words
LGL decides that it will not such Delay Event,  in Lines 3 to 4.Para 4 (last para)
    
    
    
    Propose to delete this para in its entirety i.e. from LGL will withhold...... Completed Tender Section..... Form of Tender..27
    
    Limitation Of Liability
    
    Propose that the cumulative aggregate limit of liability of the Seller under this PO be capped at
          of the total PO value.Propose also to delete the last para in its entirety i.e. from The limitation of liability.......e) Liability...... cannot contact.29
    
    Suspension
    
    Propose if suspension was caused by LGL, to include reasonable cost, profit and overheads.30
    
    Non-Waiver
    
    Propose to include that the provisions of this Non-Waiver clause be applied to Seller, mutatis mutandis.31
    
    No Assignment
    
    Propose to insert but subject always to guarantee payment to Seller  at the end of the clause, in Line 4 before full stop.32
    
    Disputes
    
    Propose to refer disputes to Arbitration, instead of court of competent jurisdiction...and the Arbitration Award shall be final and binding.




---



##### 



Anne Smith
 From:
    
    Roxane FitzroySent:
    
    Friday, 15 August 2008 1 1:29 AMTo:
    
    Adam Dickens; Paul McFarlane; Debbie WyattCc:
    
    MOPUSubject:
    
    RE: MOPU-1003-L Autoclave supply tender  Post tender Questions #1
      From :  Sent:  To:  Cc:  Subject:  Importance:




---



##### 



Lihir Services Australia Pty Ltd
 +61 7 3318 3349 (Direct)(LOGO) +61 7 3318 3300 (Switch)(LOGO) +61 7 3318 9203 (Fax)(LOGO) Lvl 9, 500 Queen Sfreef, Brisbane, QLD, 4000(LOGO) GPO Box 905, Brisbane, QLD, 4001, Australiawww.lglgold.com




---



##### 



Anne Smith
 From:
    
    Adam DickensSent:
    
    Friday, 15 August 2008 11:23 AMTo:
    
    Paul McFarlane; Debbie Wyatt; Roxane FitzroyCc:
    
    MOPUSubject:
    
    MOPU-1003-L Autoclave supply tender  Post tender Questions #1Importance:
    
    High
                  Lihir Services Australia Pty Ltd
 +61 7 3318 3349 (Direct)(LOGO) +61 7 3318 3300 (Switch)(LOGO) +61 7 3318 9203 (Fax)(LOGO) Lvl 9, 500 Queen Sfreel Brisbane, QLD, 4000(LOGO) GPO Box 905, Brisbane, QLD, 4001, Australiawww.lglgold.com




---



##### 



Anne Smith
 From:
    
    Debbie WyattSent:
    
    Wednesday, 6 August 2008 3:52 PMTo:
    
    Adam DickensCc:Subject:
    
    RE: MOPU-1003-L  Autoclave RE:WES CONFIDENTIAL QUOTATION :Importance:
    
    High
     W.E. Smith Engineering Pty Ltd
 
 
 
 From :  Sent:  To:  Cc:  Subject:  Importance:




---



##### 



From :  Sent:  To:  Cc:  Subject:  Importance:
      W.E. Smith Engineering Pty Ltd




---



##### 



LGL
 MILLION OUNCE PLANT UPGRADE (MOPU)
 EQUIPMENT SUPPLY TENDER
SECTION IV FORM OF TENDER
 Date:
    
    6 August 2008Name of Tenderer:
    
    W.E Smith Engineering Pty Ltd / KNM Process Systems Sdn BhdProposal Number:
    
    J0807701F/K0807036Validity of Proposal:
    
    30 daysEquipment:
    
    AC2004  Pressure Oxidation AutoclaveMake:Model:Type:Manufacturer:
    
    KNM Process Systems Sdn BhdDealer distributor in Country:
    
    Malaysia




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 PRICING SUMMARY
 Equipment Tender # and Description
    
    AutoclaveTenderers Name:
    
    W.E. Smith Engineering / KNM Process Systems
 All prices to be in Australian or US currency (refer clause 4 of Section I Part A)
 Currency of Manufacturers Quotation
    
    USD
 Location of Sellers Premises
    
    Boambee, NSW, Australia
 Table 1.1 Cost Breakdown
 UOM
    
    QTY
    
    Unit Cost
    
    Extended[List item]  1343-AC-2004
    
    EA
    
    1[List item] Start Up& CommissioningSpare
    
    EAEquipment Options
    
    EASpecial Tools
    
    EAExtended
Warranty Costs (if applicable)
    
    EADiscount (if any)
    
    EAExport Packing
    
    EALoading to Transport (FCA KNM workshop)
    
    EAForward Cover Foreign Currency Risk (if any)
    
    EASubtotal FCA (Incoterms 2000) Point of Manufacture (KNM Workshop)
 UOM
    
    QTY
    
    Unit Cost
    
    ExtendedFreight/Logistics Cost BreakdownFreight to
nearest Seaport (FAS Malaysia Nearest Port of Export)
    
    EA
    
    1Customs/Port Terminal Charges (if any)
    
    EAForward Cover Foreign Currency Risk (if any)
    
    EASubtotal FAS Malaysia Port (Incoterms 2000) SeaportTOTAL FAS COST
 Section IV Form of Tender
    
    Pricing
    
    Page 1




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 COMMERCIAL DETAILS
 Equipment Tender # and Description
Tenderers Name:
 Tenderers Proposed Terms of Payment  Please refer propose payment team as per our proposal as attached.
 Cancellation Charges  Please refer propose cancellation charge as per our proposal.
 Point(s) of Manufacture   KNM Malaysia Shop (Melaka, Gebeng/Kuantan Shop)
 Shipment Location   (Port Klang/Kuantan Port)
 Sub-Suppliers   Please refer our sub-supplier list as attached.
 Progress Reports and Schedule
 Number of weeks from date of Purchase Order
    
    of weeksFrequency of updates
    
    of weeks
 Liquidated Damages  Manufacturers Proposal, Subject to Assessment by LGL
 Per Diem Rate (%)
    
    %Maximum Amount (%)
    
    %
 Warranties/Guarantees
 From date of equipment startup-commissioning (Number of months)
    
    of months *From date of final component shipment (Number of months)
    
    of months *
 
 *
    
    whichever come first. Extended Warranty
 Extended Warranty Cost (if applicable)
    
    N/AOther Details(Add information if required)N/ADoes the Seller accept the Warranty Terms and Conditions?
    
    Yes oNo þ
 Section IV  Form of Tender
    
    Commercial Details
    
    Page 2




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 COMMERCIAL DETAILS
 Drawings, Operators Manuals and Parts Manuals(Where applicable)Preliminary Engineering Drawings for approvalNumber of days from date of Purchase OrderFinal Certified Engineering DrawingsNumber of days from date of approved preliminary drawingsFinal Certified(Where preliminary drawings are not required for approval)Number of days from date of Purchase OrderOperators Manuals(Installation, Operation, Maintenance and Training)Operator Manuals in addition to requirements outlined in Section 1Additional sets (Indicate cost if applicable)Electronic sets  CD-R (Indicate cost if applicable)Parts Manuals(Including Bearings, Seals, and Filter Conversions)Parts Manuals in addition to requirements outlined in Section 1Additional sets (Indicate cost if applicable)Electronic sets  CD-R (Indicate cost if applicable)Quality Assurance/Quality Control(Include details)See ISO/ U Stamp as per attached.Health, Safety, Environmental & Human Rights Compliance(Include details)SeeHSE as per attached.Tools(Special tools required for installation, operation and maintenance of Equipment)
 Description
    
    AmountN/ATotal
 Contract Local/Overseas Content
 Description
    
    AmountNotApplicable (We are self-operating)Total Contract Value
 Section IV  Form of Tender
    
    Commercial Details
    
    Page 3




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 COMMERCIAL DETAILS
 Additional Items/Details
 Section IV  Form of Tender
    
    Commercial Details
    
    Page 4




---



##### 



Section IV Form of Tender
    
    Alternative Tender
    
    Page 5




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 COMMERCIAL DETAILS
 Equipment Tender # and Description:Tenderers Name:
 Table 2.1 Schedule of Key Dates
 Place of
    
    
    Start
    
    
    Available For
    
    
    Dispatch ExItem
    
    Tag
    
    
    Manufacture
    
    
    Manufacture
    
    
    Inspection or Testing
    
    
    Works
    
    
    Delivery Site(Weeks After Order)1343-AC-2004 (Autoclave)
    
    
    
    
    
    KNM MalaysiaShop
 Table 2.2 Contractual Delivery Schedule
  Manufacture and SupplyDelivery Completion Date
 Table
2.3 Witnessed and Verified Performance Tests
  Component and Test
    
    Cost Included?
    
    
    
    CostN/A
    
    
    
    N/ATotal Cost
 Section IV  Form of Tender
    
    Schedule of Key Dates
    
    Page 6




---



##### 



Section IV  Form of Tender
    
    Weights and Dimensions
    
    Page 7




---



##### 



LGL
EQUIPMENT SUPPLY TENDER
 SPARE PARTS
 Equipment Tender # and Description:
Tenderers Name:
 Spare PartsRecommended spare parts for two (2) year of Operation(Tenderer to provide separate list of spare parts in Excel format)Commissioning spare parts(Tenderer to provide separate list of commissioning parts in Excel format)(see attach start up & commissioning spare)Spare Components(Tenderer to provide pricing for spare components)Export/Domestic PackingFreight (to nearest Port of Exit) (Malaysia Nearest Port)Ocean Freight to Port of EntryCustoms/Port Terminal Charges (if any)Inland Freight to Project SiteTOTAL COSTParts Discount (This parts discount would apply for all initial spare parts purchased)Nearest Service Depot and/or Distributor (State name and address)W.E Smith Engineering Pty Ltd, Hamilton Drive, Boambee via Coffs Harbour, N.S.W 2450, AustraliaOther locations for spare parts support (State name and address)W.E Smith Engineering Pty Ltd, Hamilton Drive, Boambee via Coffs Harbour, N.S.W 2450, AustraliaApproximate value for Equipment spare parts carried at named locationsRecommended major components as consignment stock at Work Site without cost to Buyer(Tenderer to provide separate list of major components or modules in Excel format) N/ARecommended list and pricing for all high turnover consumables(Tenderer to provide separate list of consumables in Excel format) N/A
 Section IV  Form of Tender
    
    Spare Parts
    
    Page 8




---



##### 



LGL EQUIPMENT SUPPLY TENDER
spares
Equipment Tender # and Description
Tenderers Name:
Table 3.1 Commissioning Spares
Item Description Recommended Unit Price If Unit Price If
Quantity Purchased With Supplied At
Main Order Later Date
see attach commissioning spare as per our proposal
Table 3.2 Capital Spares
Item Description Recommended Unit Price If Unit Price If
Quantity Purchased With Supplied At
Main Order Later Date
Not Applicable - Section IV  Form of Tender
    
    List of Spare Parts
    
    Page 9




---



##### 



LGL EQUIPMENT SUPPLY TENDER
AVAILABILITY GUARANTEES
Equipment Tender # and Description
Tenderers Name:
Equipment Availability Guarantees
Year 1 %
Yearly      %
Not Applicable zz%
Year 4 %
Year 5 %
Compensation for availability guarantee(s) not
being met: Conditions of availability
guarantees(s): Section IV  Form of Tender
    
    Availability Guarantees
    
    Page 10




---



##### 



LGL EQUIPMENT SUPPLY TENDER
Equipment Tender # and Description
Tenderers Name:
Technical On-Site Personnel (if Applicable)
Reimbursable Sum per Person from X to Cairns or return (detail point of origin) 0.00
Daily Rates for technical on-Site personnel  detail skills/trades 0.00
Not Applicable 
Equipment (List required equipment) 0.00
Location of Representation
Number of Representatives
Estimated length of stay
Number/Frequency of VjSjtsAdditional Items/Details
Number of Technical On-Site Personnel days available at no cost to Buyer
Emergency Contact for Technical On-Site requirements (Provide details)
Sub- Contractors
Provide the company names of sub-contractors that would be considered for technical on-Site
personnel supply and state their involvement
Discounted Labour Rate (In the event of additional work outside the scope of work) |
$0.00 Section IV  Form of Tender
    
    Technical On-Site Personnel and Support
    
    Page 11




---



##### 



LGL EQUIPMENT SUPPLY TENDER
SERVICE & SUPPORT
Product Support(Technical Service and Training)
Outline recommendations for Operator and Maintenance Training Personnel (Provide details)
Outline the period Service Personnel will be provided without cost to Buyer. Assume
this is an advice/troubleshooting role.
Outline the period Training Personnel will be provided without cost to Buyer.
Cost of Service Personnel (Hourly rate) $0.00
Cost of Training Personnel (Hourly rate) $0.00
Name and address of Manufacturers Representative
Identify from which location of Service and Training Personnel wilt be provided
Not Applicable
Identify any major components or modules that Tenderer recommends and is prepared to locate
in the LGL warehouse as consignment stock at no cost to Buyer
Other Details(Add information if required) Section IV  Form of Tender
    
    Technical On-Site Personnel and Support
    
    Page 12




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 TECHNICAL DATA SCHEDULE
 Equipment Tender # and Description
Tenderers Name:
 Table 4.1 Technical Data Schedule
 Weeks After
    
    Vendor AgreementItem
    
    Award
    
    (Y/N)DATA WITH TENDERPreliminary general arrangement drawingProposed manufacturing ScheduleRecommended commissioning & capital sparesDATA AFTER AWARDDetailed and dimensioned general arrangement drawing including:
Lifting details
Operating and maintenance tolorances N/A
Piping and electrical interface details N/A Itemised list of components (Body Drawing)Fixed and firm manufacturing scheduleInspection and test planOperating and maintenance manuals: Preliminary FinalAs-built drawings
 Section IV  Form of Tender
    
    Technical Data Schedule
    
    Page 13




---



##### 



1.
    
    Continuous example and commitment by all levels of management to ensure that
employees will have no doubt in their minds as to the sincerity of the company in its
endeavours to eliminate accident.2.
    
    Elimination of unsafe working conditions and practices.3.
    
    The taking of all practicable steps to safeguard employees and the public from injury
and health hazards.4.
    
    Prevention of loss or damages to property.5.
    
    Safeguarding the natural environment by preventing pollution of the environment.6.
    
    Application of sound engineering practices in design, installation and maintenance
of equipment.7.
    
    Maintaining effective procedures for accident reporting and investigation.8.
    
    Education of all Employees pertaining to established procedures and adherence to
safety rules and regulations.9.
    
    Continuous review of safety performance and auditing of the safety programme10.
    
    To meet or exceed as appropriate those standards contained in appropriate Statutes
affecting the Industry.
 /s/
Ir. Lee Swee Eng

Ir. Lee Swee EngGroup Managing Director
 Revision
    
    :
    
    03Date
    
    :
    
    07th March 2007




---



##### 



(KNM LOGO)
    
    KNM PROCESS SYSTEMS SDN BHDSafety Statistics
    
    (LOGO)
 
 2003
    
    2004
    
    2005
    
    2006
    
    2007LTA
    
    
    0
    
    
    
    2
    
    
    
    0
    
    
    
    0
    
    
    
    0Medical Treatment Case
    
    
    3
    
    
    
    2
    
    
    
    9
    
    
    
    10
    
    
    
    8First Aid Case
    
    
    6
    
    
    
    8
    
    
    
    3
    
    
    
    4
    
    
    
    7Near Misses
    
    
    21
    
    
    
    18
    
    
    
    12
    
    
    
    20
    
    
    
    15Total Manhours
    
    
    2,146,826.0
    
    
    
    1,977,610.0
    
    
    
    2,351,564.0
    
    
    
    3,055,555.0
    
    
    
    3,934,884.5LTA Frequency
    
    
    0
    
    
    
    1
    
    
    
    0
    
    
    
    0
    
    
    
    0LTA Severity
    
    
    0
    
    
    
    4
    
    
    
    0
    
    
    
    0
    
    
    
    0Lost Workdays
    
    
    0
    
    
    
    8
    
    
    
    0
    
    
    
    0
    
    
    
    0Major Fire Inci.
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0No of Fatalities
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0




---



##### 



SAFETY AWARDS




---



##### 



Anne Smith
 From:
    
    Adam DickensSent:
    
    Tuesday, 5 August 2008 11:52 AMTo:
    
    Debbie WyattCc:Subject:
    
    MOPU-1003-L -Autoclave RE: WES CONFIDENTIAL QUOTATION :Importance:
    
    High
    
 From:  Sent:  To:  Cc:  Subject:  Importance:
      W.E. Smith Engineering Pty Ltd




---



##### 



Anne Smith
 From:
    
    Debbie WyattSent:
    
    Tuesday, 5 August 2008 11:30 AMTo:
    
    Adam DickensCc:Subject:
    
    WES CONFIDENTIAL QUOTATION : MOPU-1003-L  AutoclaveImportance:
    
    High
      W.E. Smith Engineering Pty Ltd




---



##### 



(NES LOGO)
    

    W.E SMITH ENGINEERING PTY LTD(a subsidiary of KNM Group )
    
    WES/EPD/QUO-001Rev 230th October 2007.Corporate OfficeHamilton Drive, Coffs Harbour NSW 2450Tel. (+61 2)-6650 8888
    
    Fax(+61 2)-6658 3499E-mail: sales@wesknm.com.au
    
    Website: www.wesknm.com
 WES Ref. No.
    
    :
    
    J080770J (K0807036F)
    
    Revision 0Client RFQ No.
    
    :
    
    MOPU-1003-LDate
    
    :
    
    4 August 2008Lihir Gold LtdLevel 9500 Queen StBRISBANE QLD 4001Attention
    
    :
    
    Adam DickensPhoneFaxVia email
    
    :PROJECT
    
    :
    
    MOPUEQUIPMENT
    
    :
    
    AutoclaveDear Sirs,
      W.E Smith Engineering Pty Ltd
 
 Paul McFarlane
Commercial Manager
 Tel No: +61 2 6650 8840
Fax No: +61 2 6658 3103
Mobile: +61 418 975 324
 Encl. Attachment.
 Page 1 of 12




---



##### 



KNM PROCESS SYSTEMS SDN BHD (200140-X)(KNM LOGO)
    
    Corporate Office15 Jalan Dagang SB4/1, Taman Sungai
Besi Indah, 43300 Seri Kembangan, Selangor Darul Ehsan,
MalaysiaTel. (603)-89463000 Fax (603)-89434781 E-mail: epd3@knm-group.com Website: www.knm-group.com
 KNM Ref.No.
    
    :
    
    K0807036F/EPD3/E/80433WES Ref
    
    :
    
    J0807701FClient RFQ No.
    
    :
    
    MOPU-1003-LDate
    
    :
    
    4th August 2008
 Lihir Gold Ltd
 Attention
    
    :
    
    Adam DickensPhone
    
    :Fax
    
    :Via email
    
    :Dear Sirs,PROJECT
    
    :
    
    Million Ounce Plant Upgrade Project, Lihir IslandEQUIPMENT
    
    :
    
    Autoclave
    KNM Process Systems Sdn Bhd
 /s/ Chua Young Fong
    
    /s/ Terry HewCHUA YOUNG FONG
    
    TERRY HEWManager  Estimation & Engineering
    
    Director, Sales Division
  Page 1 of 4




---



##### 



KNM PROCESS SYSTEMS SDN BHD (200140-X)(KNM LOGO)
    
    Corporate Office15 Jalan Dagang SB4/1, Taman Sungai
Besi Indah, 43300 Seri Kembangan, Selangor Darul Ehsan,
MalaysiaTel. (603)-89463000 Fax (603)-89434781 E-mail: epd3@knm-group.com Website: www.knm-group.com
     1. Price :
  2.
Scope of Supply and work
 2.1.0
Equipmet Scope of  Supply
 o
    
    (X)
    
    Equipment proper complete with nozzles, manholes, skirt supporto
    
    (X)
    
    Type of nozzle reinforcement( )
    
    Reinforcing pads (X) Self reinforcement ( ) Saddle/lip type self reinforced nozzleso
    
    (X)
    
    Internals attachment directly welded on the equipment only.o
    
    ( )
    
    Template for foundation (if required)o
    
    ( )
    
    Sliding/shiming plateo
    
    (X)
    
    Name plate and its supporto
    
    ( )
    
    Top davitso
    
    (X)
    
    Davit for manhole covero
    
    (X)
    
    Earthing lugso
    
    (X)
    
    Lifting lugs / lifting trunnions and tailing lugs C/W reinforcement beam (if required)o
    
    ( )
    
    Insulation support clips/rings (if required)o
    
    ( )
    
    Nuts for Fire protection (if required)o
    
    ( )
    
    Internal feed pipe until 1st flange connection (if applicable)o
    
    ( )
    
    Internal demister as specified in the datasheeto
    
    (X)
    
    Transportation saddleso
    
    (X)
    
    Spare part for construction & commissioning shall consists of 200%
gasket & 10% bolts and nuts (min 2 /sets size) for manholes and nozzles with blindo
    
    ( )
    
    Spare parts for two year operation (quote separately as optional) shall consists of 200% gasket & 10%
bolts and nuts (min 2 /sets size) for manholes and nozzles with blind
 2.2.0 External Accessories
 o
    
    (X)
    
    Design, supply, fabricate and inspection of Platform and Ladder
clips and piping support cleats
 (X)
    
    (Unit price          
ex-work for CS material)( )
    
    (Unit price           ex-work
for SS material)
 2.3.0 Engineering
 o
    
    (X)
    
    Mechanical Design (mechanical calculation, foundation loads and
detail workshop drawings)o
    
    (X)
    
    WPS/ PQR, ITP and manufacturer data report (MDR)o
    
    (X)
    
    Special Calcs- FEA
 2.4.0 Material Certificates
 o
    
    (X)
    
    Pressure Containing Parts
 (X)
    
    EN 10204 Type 3.1( )
    
    EN 10204 Type 3.2
 o
    
    (X)
    
    Non Pressure Part (Steel Structure Parts)
 (X)
    
    EN 10204 Type 2.2( )
    
    EN 10204 Type 3.1
 Page 2 of 4




---



##### 



KNM PROCESS SYSTEMS SDN BHD (200140-X)(KNM LOGO)
    
    Corporate Office15 Jalan Dagang SB4/1, Taman Sungai
Besi Indah, 43300 Seri Kembangan, Selangor Darul Ehsan,
MalaysiaTel. (603)-89463000 Fax (603)-89434781 E-mail: epd3@knm-group.com Website: www.knm-group.com
 2.5.0 Quality Assurance/Control
  o
    
    (X)
    
    Shop inspection, controls and tests, hydrostatic testo
    
    (X)
    
    Materials procurement as per KNM/WES approved
Sub-Vendors Listo
    
    (X)
    
    ASME Code stamp
 2.6.0NDE
 o
    
    ( )
    
    Non PWHT Equipment
 ( )
    
    UT/RT as per specs
 o
    
    (X)
    
    PWHT Equipment
 ( )
    
    50mmthk and Below : UT and RT before PWHT; UT after PWHT(X)
    
    Above 50mmthkeq : UT and TOFD before PWHT; UT after PWHT
 2.7.0
Finishing & Painting
  o
    
    (X)
    
    External surface preparation and painting as per spec 362-MA-103-00-001 Rev. 0.o
    
    ( )
    
    Internal coating for Carbon Steel material as per speco
    
    ( )
    
    Pickling and Passivation for Stainless Steel surfaceo
    
    (X)
    
    Rust prevention of vessel internals proper for transportation and storing as
per specification
 (X)
    
    Filling desiccant (Silica gel) for equipment( )
    
    Nitrogen (N2) charge at 0.5 Bar with valve and 2 pressure gauges for
equipment
 2.8.0 Other
 o
    
    ( )o
    
    ( )o
    
    ( )o
    
    ( )o
    
    ( )o
    
    ( )
 3. Exclusion from Scope of Work
 o
    
    (X)
    
    All site erection work & site assembly & cranageo
    
    (X)
    
    Foundation works, anchor bolts, nuts and washerso
    
    (X)
    
    All instrumentation including
agitators, motors, valves, gauge, spray nozzles,
electrical heat tracing, etco
    
    (X)
    
    Insulation and fireproofing material and workso
    
    (X)
    
    All special tools and fittings including sight glasso
    
    (X)
    
    All taxes, duties and VATo
    
    (X)
    
    All consequential losseso
    
    (X)
    
    All completed removable internal piping systems or other parts not welded to the vesselo
    
    (X)
    
    All completed removable process
internals including trays, packings, distributors,
support grid, vane internal,
inlet device, spraying systems etco
    
    (X)
    
    All thermal/process designo
    
    (X)
    
    Design, supply, fabricate and Inspection of platform and ladder C/W finishing as per spec
and trial assembly of platform & laddero
    
    (X)
    
    Special polishing for stainless steel materialo
    
    (X)
    
    Ferroxyl testing.o
    
    (X)
    
    Lead / Membrane / Brick Lining.
 Page 3 of 4




---



##### 



KNM PROCESS SYSTEMS SDN BHD (200140-X)()
    
    Corporate Office15 Jalan Dagang SB4/1, Taman Sungai
Besi Indah, 43300 Seri Kembangan, Selangor Darul Ehsan,
MalaysiaTel. (603)-89463000 Fax
(603)-89434781 E-mail: epd3@knm-group.com Website:
www.knm-group.comfp
 4. Mechanical warranty
  5. Delivery Term:
 
  * Contractual specification* Basic design data to allow purchasing of main materials* Nozzle Elevation/Size* Nozzle Orientation* All Internal Attachment Information* All Pipe Support, Platform & Ladder Clips Information
 6. Validity:
   7. Payment Term
 &
 %
    
    
    - down payment after award of order%
    
    
    - on procurement of major material (shell & head plate)%
    
    
    - on complete assembly of shell to head%
    
    
    - upon completion of hydrostatic test at shop%
    
    
    - on submission of manufacturer data report (MDR)
 8. Other Commercial Matters
 
 *
    
    Free storage of equipments is limited to maximum 2 weeks, after that it will be
subjected to unit rates of
USD           /M2/week*
    
    Liquidated Damages: Our proposal is NOT provided for LAD at this stage*
    
    Cancellation / Termination Costs Percentage of Total
    
    Cancellation ScheduleNo
    
    Contract Sum
    
    (week)1
    
    
    
    weeks from date of order2
    
    
    
    weeks from date of order3
    
    
    
    weeks from date of order4
    
    
    
    weeks from date of order5
    
    
    
    weeks from date of order
 Page 4 of 4




---



##### 



Anne SmithFrom:
    
    Debbie WyattSent:
    
    Tuesday, 5 August 2008 1:21 PMTo:
    
    Adam DickensCc:Subject:
    
    RE: MOPU-1003-L  Autoclave RE: WES CONFIDENTIAL QUOTATION :Importance:
    
    High
   W.E. Smith Engineering Pty Ltd
 
 
 From:  Sent:  To:
 Cc:
 Subject:
 Importance:
    
 From:  Sent:  To:
 Cc:
 Subject:  Importance:




---



##### 



W.E. Smith Engineering Pty Ltd




---



##### 



Anne SmithFrom:
    
    Debbie WyattSent:
    
    Tuesday, 22 July 2008 9:55 AMTo:
    
    Adam DickensCc:
    
    MOPU; Paul McFarlane; Roxane FitzroySubject:
    
    : RE: MOPU-1003-L Autoclave supply  Notice to tenderers #4
     W.E. Smith Engineering Pty Ltd
 
 From:  Sent:  To:  Cc:  Subject:  Importance:
   
 
  Lihir Services Australia Pty Ltd
 +61 7 3318 3349 (Direct)   +61 7 3318 3300 (Switch)   +61 7 3318 9203 (Fax)   Lvl 9, 500 Queen Street, Brisbane, QLD, 4000   GPO Box 905, Brisbane, QLD, 4001, Australia  www.lglgold.com




---



##### 



Anne SmithFrom:
    
    Adam DickensSent:
    
    Tuesday, 22 July 2008 9:47 AMTo:
    
    Roxane Fitzroy; Debbie WyattCc:
    
    MOPUSubject:
    
    MOPU-1003-L Autoclave supply  Notice to tenderers #4Importance:
    
    High
   
 
   Lihir Services Australia Pty Ltd
 +61 7 3318 3349 (Direct)   +61 7 3318 3300 (Switch)   +61 7 3318 9203 (Fax)   Lvl 9, 500 Queen Street, Brisbane, QLD, 4000   GPO Box 905, Brisbane, QLD, 4001, Australia  www.lglgold.com




---



##### 



Anne SmithFrom:
    
    Adam DickensSent:
    
    Friday, 18 July 2008 3:01 PMTo:
    
    Roxane Fitzroy; Debbie WyattCc:
    
    MOPUSubject:
    
    MOPU-1003-L Autoclave Supply  Notice to tenderers #3Importance:
    
    High
  th
 revised 3pm (Brisbane time), Monday 4 th August,
2008.
   
 Lihir Services Australia Pty Ltd
 +61 7 3318 3349 (Direct)   +61 7 3318 3300(Switch)   +61 7 3318 9203 (Fax)   Lvl 9, 500 Queen Street, Brisbane, QLD, 4000   GPO Box 905, Brisbane, QLD, 4001, Australia  www.lglgold.com




---



##### 



Anne SmithFrom:
    
    Adam DickensSent:
    
    Thursday, 17 July 2008 11:23 AMTo:
    
    Roxane Fitzroy; Debbie WyattCc:
    
    MOPUSubject:
    
    MOPU-1003-L Autoclave Supply  Notice to tenderers #2Importance:
    
    High
  Question 1:
  LGL response:
 
 Question 2:
  LGL response:
   Lihir Services Australia Pty Ltd
 +61 7 3318 3349 (Direct)   +61 7 3318 3300 (Switch)   +61 7 3318 9203 (Fax)   Lvl 9, 500 Queen Street, Brisbane, QLD, 4000   GPO Box 905, Brisbane, QLD, 4001, Australia  www.lglgold.com




---



##### 



Anne SmithFrom:
    
    Adam DickensSent:
    
    Monday, 14 July 2008 8:34 AMTo:Cc:
    
    MOPU; Roxane FitzroySubject:
    
    MOPU-1003-L Supply of Autoclave  Notice to Tenderers #1Importance:
    
    High
  Question 1:
 LSA response:
   Lihir Services Australia Pty Ltd
 +61 7 3318 3349 (Direct)   +61 7 3318 3300 (Switch)   +61 7 3318 9203 (Fax)   Lvl 9, 500 Queen Street, Brisbane, QLD, 4000   GPO Box 905, Brisbane, QLD, 4001, Australia  www.lglgold.com




---



##### 



MILLION OUNCE PLANT UPGRADE (MOPU)
 Equipment Supply Tender
 INDEX
 Section I
 Part A Instructions to Tenderers
 
 Part B
 Purchase Order Terms and Conditions
 
 Part C
 Technical On-site Personnel Terms
 
 Section II
 Site Conditions and Equipment Material Standards




---



##### 



Section III
 Detailed Specifications
       
 Section IV
 Form of Tender




---



##### 



LGL
 Million Ounce Plant Upgrade (MOPU)
 Equipment Supply Tender
 Section I Part A Instructions to Tenderers
 INDEX
 1. Tenderers Understanding
    
    
    12.Tender Submissions
    
    
    23. Acceptance of Tender
    
    
    34. Tendered Prices
    
    
    45.Contract and Terms of Payment
    
    
    56. Weights and Dimensions
    
    
    57. Contractual Delivery Schedule
    
    
    58.Warranties/Guarantees
    
    
    69. Alternative Proposals
    
    
    610. Priority
    
    
    611. Quality Assurance/Quality Control
    
    
    712. Tests
    
    
    713. Erection or Start-Up
    
    
    714. Spare Parts
    
    
    715. Health, Safety, Environmental and Human Rights Compliance
    
    
    7
 Section I  Part A Instructions to Tenderers
    
    1




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 Section I Part A  Instructions to Tenderers
 1.
    
    Tenderers Understanding
 1.1.
    
    It is understood and agreed that the Tenderer shall read these instructions and submit its
Tender in conformity with the following documents:
 
 1.2.
    
    The following definitions apply to terms used throughout Sections I, II, III and IV.
 Term
    
    MeaningLGL
    
    Lihir Gold Limited (Incorporated in
Papua New Guinea) ARBN 069
803 998 with an operation on Lihir Island, New Ireland Province, Papua New GuineaClosing Time
    
    The deadline for receipt by LGL of Tender submissionsEquipment, 
Merchandise or 
Goods
    
    The equipment or goods described in Section III that is the subject of
the Invitation to TenderInvitation to
Tender
    
    A letter of invitation from LGL to inviting offers to supply
MerchandiseOwner
    
    LGLProject
    
    LGLs Million Ounce Plant Upgrade (MOPU)Purchase Order
    
    A formal document issued to a supplier for the supply of specific
Merchandise in accordance with standard terms and conditions as
stated in the document. A Purchase Order is a contract between
LGL and the Seller.Seller / Supplier
    
    (may also be referred to as the Manufacturer, Vendor, or Supplier) is
the Company whose Tender has been accepted by LGL, and to
whom a Purchase Order for the Merchandise described herein is
awarded.Site
    
    LGL Operation on Lihir Island, New
Ireland Province, Papua New
GuineaSub-Contractor or Sub-Supplier
    
    A contractor that has been engaged by the Seller to perform part of
the supply of the equipment or goods which are to be supplied by
the Seller in accordance with the Purchase Order.Tender or 
Proposal
    
    An offer to perform work or to supply Merchandise.Tenderer
    
    The company named on the Invitation to Tender
 1.3.
    
    The Tender documents are the property of LGL and are delivered only for the purpose of
enabling each potential Tenderer to prepare and submit a Tender in response. All information
provided to the Tenderer during the tender process, including information contained or referred to
in the Tender Documents, is confidential and must not be disclosed or released for any use or
purpose.1.4.
    
    Unsuccessful Tenderers are required to return the Tender documents to LGL on receipt of notice
of award of tender to the successful Tenderer.
 Section I  Part A Instructions to Tenderers
    
    1




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 2.
    
    Tender Submissions
 2.1.
    
    Two (2) hard copies of the Tender for the supply of equipment, materials, and service as
detailed on the attached specification sheets must be submitted, enclosed in a sealed envelope
and marked with the name of the equipment being tendered for and the specification number as
shown in the Invitation to Tender and shall be sent by prepaid post or courier and delivered to
the following address:
 
 by the date and time for closing of Tenders nominated in the Invitation to Tender. In
the event that there is a request for the tender to be submitted electronically, this
request shall be extra to the hard copy requirements.2.2.
    
    Verbal Tenders and/or quotes will not be accepted.2.3.
    
    A Tender shall contain two (2) complete sets of manufacturers specifications on the design
and materials of construction and general arrangement drawings.2.4.
    
    The heading on a Tender shall show the name of the equipment and the tender number as shown
on the Invitation to Tender.2.5.
    
    In accordance with the tender documents, complete Tenders are required to be submitted.
Tenderers who feel it will be advantageous to tender on only some items of Merchandise
should obtain prior written consent from the Project Purchasing Manager.2.6.
    
    Tenderers requiring clarification of technical aspects of the Tender document shall submit
their questions in writing to the Project Purchasing Manager as early as possible during the
Tender period. LGL will issue clarifications or addenda (if required) to all Tenderers.2.7.
    
    All equipment and materials must conform with the laws and regulations of the Independent
State of Papua New Guinea.2.8.
    
    Tenderers shall strictly adhere to the Closing Time, which will be as shown on the
Invitation to Tender. An extension of Tender time requires prior written approval and will be at
the sole discretion of LGL.2.9.
    
    Tender submissions shall be construed as an irrevocable, firm and fixed offer that is open
for acceptance for a period of sixty (60) days following the Closing Time.2.10.
    
    On receipt of a request in writing, and at the discretion of LGL, a Tender may be
withdrawn or revised, provided the withdrawal or revision is received on or before the Closing
Time.2.11.
    
    The Tenderer must submit a completed Form of Tender as outlined in Section IV.
Alterations, qualifications or omissions to the Form of Tender by the Tenderer may be
considered cause to reject a Tender.2.12.
    
    If any special tools are required for installation, operation, and maintenance, the
Tenderer
 Section I  Part A Instructions to Tenderers
    
    2




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 shall provide a list of the type and quantity together with pricing of these tools as
separate items delivered FCA or FOB (Incoterms 2000) in accordance with clause 4.2.13.
    
    A Tenderer who submits a Tender in strict accordance with the Tender documents may also
submit an alternative proposal as set out in clause 11.2.14.
    
    The Tenderers submission shall be construed as representation and warranty that it has
complied with and agrees to be bound by the terms and conditions of the tender package.2.15.
    
    If the Tenderer is dependent on one or more Sub-Sellers or Sub-Contractors, the Tenderer
must identify those Sub-Sellers or Sub-Contractors in the proposal.2.16.
    
    LGL may require the Tenderer to provide evidence of its ability to carry out the
requirements within the required timeline, and the financial ability to complete the
requirements of the Contract.2.17.
    
    LGL reserves the right to seek further information or clarification to any Tender
submitted after the Closing Time, and the right to negotiate with any Tenderer after Closing
Time.2.18.
    
    LGL is not liable for any of the Tenderers costs incurred in responding to the Invitation
to Tender.
 3.
    
    Acceptance of Tender
 3.1.
    
    The acceptance of any Tender shall be based on an evaluation of Tenderers proposals by
LGL, through consideration of evaluation criteria determined solely at the discretion of
LGL. LGL is not obliged to inform Tenderers of any particular evaluation criteria or the
relative weight to be given to any particular evaluation criteria.3.2.
    
    LGL reserves the right to award a Contract in respect of all or only a portion of the
Equipment referred to in this RFQ or to award multiple Contracts to different Tenderers.3.3.
    
    LGL reserves the right to reject any or all Tenders received in response to this Invitation
to
Tender without giving any notice or reasons. LGL also reserves the right to accept any
Tender, notwithstanding informalities or irregularities or other failures to comply with
the terms and conditions of this Invitation to Tender, contained in such Tender.3.4.
    
    The Tender containing the lowest price or any Tender will not necessarily be accepted.
LGL reserves the right, without restriction, to exercise its sole discretion in
determining the best value and whether or not any Tender received provides the necessary
level of value to LGL to result in the acceptance of a tender.3.5.
    
    LGL reserves the right after the closing time, in its sole discretion, to seek further
information from or clarification of any Tender submitted by any Tenderer, and to negotiate with
any Tenderer, or with more than one Tenderer concurrently, the terms and conditions of Tenders.
LGL is not required to offer any modified terms and conditions to any other Tenderer and LGL
incurs no liability to any Tenderer in exercising its discretion under this clause.3.6.
    
    LGL may, prior to accepting a Tender, require further evidence that a Tenderer has:
 (a)
    
    the necessary experience and is prepared to use the necessary personnel and
equipment to fulfil the requirements of the Tender Documents satisfactorily and
within the required time; and
 Section I  Part A Instructions to Tenderers
    
    3




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 (b)
    
    the financial ability to complete the requirements of the Tender Documents.
 3.7.
    
    By submitting a Tender, the Tenderer gives LGL permission to contact any organisation for
whom the Tenderer has supplied equipment, materials and/or services in order to obtain
information pertaining to timely completion, quality, methods and other matters relating to work
performed or being performed by the Tenderer.3.8.
    
    The submission of a Tender is representation and warranty by the Tenderer that it has
complied with and agrees to be bound by the terms and conditions of the Tender Documents. No
adjustment to any price or prices contained in the Tender nor any other compensation will be
allowed on account of any failure by the Tenderer to comply with the Tender Documents.3.9.
    
    No Tender will be deemed accepted by LGL until a written notice of acceptance has been
issued to the successful Tenderer. Following notice of award, the successful Tenderer is
required to execute a formal Purchase Order in the form set out in the Tender Documents
(including the documents listed therein i.e. Purchase Order terms and conditions, schedules,
specification, etc.).3.10.
    
    The issue of the written notice of acceptance of a Tender shall constitute a binding
agreement between LGL and the Tenderer and LGL and the Tenderer shall enter into a Purchase
Order as defined in clause 1.2 above.
 4.
    
    Tendered Prices
 4.1.
    
    All Tendered Prices shall be presented consistently with the taxes clause contained in
clause 6 of the LGL Equipment Supply Purchase Order Terms and Conditions in Section 1 Part B.
Goods and Services Tax or other value added taxes are specifically excluded.4.2.
    
    Australian Manufactured Goods  Tendered Prices shall be in Australian dollars with goods
delivered FCA (Incoterms 2000) loaded conveyance at the location nominated in Section III. The
cost of inland freight from the factory to the nominated place of delivery and the cost of any
duty on imported components shall be included in the overall tendered price but itemised
separately. The successful Tenderer will be required to document any duty paid on imported
components to allow LGL to submit a claim for duty drawback (if applicable).
The Tenderer shall submit, as part of its Tender submission, the Tenderers ABN.4.3.
    
    North American Manufactured Goods  Tendered Prices shall be in United States of
America Dollars, with goods FOB (Incoterms 2000) vessel at the nearest major seaport.
The cost of inland freight (country of origin) to the nearest major seaport (Tenderer to
nominate) shall be included in the overall tendered price but to be itemised separately.4.4.
    
    All Other Countries Manufactured Goods  Tendered Prices shall be in United States of
America Dollars, with goods delivered FOB (Incoterms 2000) vessel at the nearest major
seaport. The cost of inland freight (country of origin) to the nearest major seaport
(Tenderer to nominate) shall be included in the overall tendered price but to be
itemised separately. The Tenderer shall bear all foreign currency risk and shall allow
for the purchase of forward cover in the overall tendered price but to be itemised
separately. It remains the Tenderers responsibility to purchase such cover on award of
the Purchase Order and all foreign currency risk shall reside with the Tenderer or
Seller.4.5.
    
    Export packing (kiln dried timber) must be quoted as a separate item where applicable. Any
costs associated with fumigating containerised cargo as required by Australian Customs or
 Section I  Part A Instructions to Tenderers
    
    4




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 Papua New Guinea Customs to meet quarantine restrictions applicable to imports into
Australia and/or Papua New Guinea, must be included in this cost. Fumigation must be
carried out by a recognised licensed fumigator who issues a certificate of fumigation,
which accompanies the shipping documents.4.6.
    
    The Tendered Price shall be a lump sum fixed price in accordance with the relevant
Incoterms 2000 classification. The Tenderer is to refer to Incoterms 2000 for complete
details with regards to risks and liabilities when providing pricing.4.7.
    
    All Hazardous or Dangerous goods are to be priced DDP (Incoterms 2000) and are to be
delivered and discharged at the Site (or other defined control location).
 5.
    
    Contract and Terms of Payment
 5.1.
    
    LGLs Purchase Order terms and conditions as detailed in Section I Part B, together with
any Special Conditions detailed in the formal Purchase Order, shall be the only terms and
conditions applicable to any Purchase Order placed.5.2.
    
    The Tenderer shall detail its terms of payment including cash discounts, package deal
discounts, progress payments with defined milestones or deliverables, etc.
 6.
    
    Weights and Dimensions
 6.1.
    
    The Tenderer shall detail the total shipping weight, the number of pieces and the
dimensions and weight of all pieces over five tonnes.6.2.
    
    The Tenderer shall also detail the total shipping weight, the number of pieces and the
dimensions and weight of all pieces over five tonnes for spare parts.6.3.
    
    The Tenderer shall detail the total shipping weight and the dimensions of the largest and
heaviest pieces to be handled during installation and maintenance.
 7.
    
    Contractual Delivery Schedule
 7.1.
    
    The Tenderer shall state the guaranteed shipping date ex factory and state location of the
factory for all components.7.2.
    
    If equipment is to be manufactured in more than one factory, the Tenderer must state all
locations including a list of sub-suppliers and place of manufacture.7.3.
    
    The Tenderer shall state the Delivery Completion Date of all components in accordance with
the relevant Incoterms 2000 classification. These dates will form part of the Purchase Order and
will be stated on the Purchase Order (as the Shipping Date).7.4.
    
    When determining delivery dates for individual components, the Tenderer shall allow two
(2) weeks from the time of submission of preliminary drawings for LGLs approval and
return of drawings (as required in the Detailed Specifications). As part of the Tender
submission, the Tenderer shall detail the following:
 i)
    
    Days required from the date the Purchase Order is issued to delivery of preliminary
drawings and manuals for review by LGL.
 Section I  Part A Instructions to Tenderers
    
    5




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 ii)
    
    Days required from the date the reviewed preliminary drawings and manuals are
returned to the delivery of complete certified drawings.iii)
    
    Days required from date of Purchase Order to guaranteed date for delivery of Final
Certified Drawings.
 7.5.
    
    When determining delivery dates for individual components, the Tenderer shall allow two
(2) weeks from the closing date of the Tender prior to award.7.6.
    
    The Tenderer shall submit a detailed manufacturing and delivery schedule including all
sub-supplier items in a similar format to the example in Section IV.7.7.
    
    The Tenderer shall include in its manufacturing and delivery schedule the requirement to
supply any drawings, operation manuals, maintenance manuals, and parts manuals (Data) required
as set out in Section III.
 8.
    
    Warranties/Guarantees
 8.1.
    
    Tenderers shall provide details of all warranties and guarantees. The warranty period must
be for a period of twelve (12) months following commissioning and acceptance by the LGL or
eighteen (18) months following delivery, whichever period is shorter.8.2.
    
    Tenderers shall indicate extended warranties as a separate item and the costs of any such
extended warranty shall be detailed.8.3.
    
    Tenderers must ensure LGL is able to receive the benefit of any longer warranties provided
by sub-suppliers where to do so is at no additional cost to the Seller.
 9.
    
    Alternative Proposals
 9.1.
    
    The Tenderer shall submit a Tender strictly in accordance with the Tender Documents,
however, should the Tenderer, in addition to its conforming Tender, wish to submit alternative
offers based on departures from the Tender Documents, it shall list the departures and the
associated variation to the conforming Tender Price for each departure.9.2.
    
    Any alternative proposal shall conform to the requirements set out in the Tender
Documents, except to the extent that it describes how the alternative proposal departs
from the specific requirements. Departures shall be itemised under separate headings
titled 1. Technical Departures; 2. Commercial Departures; and 3. Optional Equipment
and/or Materials.9.3.
    
    Alternative Tenders are encouraged where the Tenderer considers the alternative to be an
improvement or more economical, but still meets or exceeds the requirements of the Tender
Documents.9.4.
    
    LGL is not bound to accept any such alternative proposal submitted by a Tenderer
 10.
    
    Priority
 10.1.
    
    Where the Detailed Specifications (Section III) vary from the general conditions, site
conditions, ore characteristics and equipment standards (Section II), the Detailed
Specifications shall be considered as correct.
 Section I  Part A Instructions to Tenderers
    
    6




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 11.
    
    Quality Assurance/Quality Control
 11.1.
    
    All goods shall meet or exceed internationally recognised standards and specifications to
the extent not specified in the Tender documents.11.2.
    
    Tenderers shall detail their standards and specifications for the goods and how they will
ensure that these are met.11.3.
    
    Tenderers shall describe their quality assurance and control program including any
standards and certifications attained.
 12.
    
    Tests
 12.1.
    
    The Tenderer shall develop and submit for review by LGL an Inspection and Test Plan, which
will detail the timing of any tests required as the equipment or materials are being produced.12.2.
    
    Where applicable, the Tenderer shall state the extra costs, if any, for witnessed and
verified performance tests.12.3.
    
    If the Tenderer does not have adequate facilities for performance testing, it will state
this in its Tender.
 13.
    
    Erection or Start-up
 13.1.
    
    When the Tenderer considers erection supervision, specialists, or start-up personnel to be
necessary for warranty purposes, or when LGL requires these personnel, the costs will be shown
as separate items but will be included in the Tender package and itemised as follows (refer to
Section I Part C Technical On-Site Personnel Terms for details of what is to be included in
each of the following):
 §
    
    Reimbursable Sum§
    
    Daily Rates for each class of technical on-Site personnel§
    
    The location of representation§
    
    Number of technical on-Site personnel§
    
    Number and frequency of visits for inspection, testing, installation, and commissioning
 14.
    
    Spare Parts
 14.1.
    
    The Tenderer shall supply, as part of its Tender, a detailed list of recommended spare
parts for one years continuous operation showing part numbers and prices.14.2.
    
    The Tenderer shall also state the location of the nearest service depot and/or distributor
along with a list of spare parts that are carried showing costs and weights.
 15.
    
    Health, Safety, Environmental and Human Rights Compliance
 15.1.
    
    The Tenderer shall provide a brief description of all relevant health, safety,
environmental and human rights compliance programs.15.2.
    
    The Tenderer shall include a copy of its environmental policy with the Tender submission
 Section I  Part A Instructions to Tenderers
    
    7




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 and shall state if all applicable environmental guidelines and regulations are being met
in relation to the goods.15.3.
    
    The Tenderer shall list any violations, infractions, ongoing investigations or penalties
associated with health, safety, the environment, or human rights that relate to the Tenderer or
any of its subcontractors.
 Section I  Part A Instructions to Tenderers
    
    8




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 LGL
 Million Ounce Plant Upgrade (MOPU)
 Equipment
Supply Tender
 SECTION I PART B
PURCHASE ORDER TERMS AND CONDITIONS
 A. Definitions
    
    
    10B. General Terms and Conditions
    
    
    13C.Preparing Orders for Shipment
    
    
    26
 Section I  Part B Purchase Order Terms and Conditions
    
    9




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 A)
    
    Definitions
   Term
    
    MeaningApplicable Law
    
    all laws, by-laws, Acts, Regulations, codes, conditions or
requirements of any authority having jurisdiction over the Seller,
Merchandise, Purchase Order or the performance of the Purchase
OrderConfidential
Information
    
    in relation to any party to this Contract, information relating to a
partys business, computer systems or affairs and includes any:1    trade secrets, know-how, scientific and technical information;2    product, customer, marketing or pricing information;3    information in relation to this Contract; and4    any other information which a party notifies the other is
confidential, or which the other party knows or ought to know is
confidentialDelay Event
    
    1    an LGL-caused Delay;2    a variation that is the subject of a variation order other than a
Variation requested by the Seller;3    a change of law;4    an industrial dispute which results in a labour stoppage that:    has not arisen by reason of, or in connection with, events in
any way connected with the Purchase Order or the Seller;
and    could not have been foreseen by an internationally
recognised seller of the Merchandise in the jurisdiction in
which the Purchase Order is being performed having carried
out all necessary investigations; and5    a Force Majeure Event;but excluding any events in items 1 to 5 which would not have
occurred but for:6    a breach of this Purchase Order by, or the negligence or
recklessness of, the Seller or its Subcontractors;7    the lack of legal capacity, or corporate powers, of the Seller; or8    LGL acting in accordance with this Purchase Order including
 Section I  Part B Purchase Order Terms and Conditions
    
    10




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 Term
    
    Meaningany termination of the Contract in accordance with its terms.Delivery 
Completion Date
    
    the date of delivery (expressed as a number of weeks from the
Commencement Date) of all items of Merchandise in accordance with
the relevant Incoterms 2000 classification as detailed in the Purchase
Order.Force MajeureEvent
    
    means (and is limited to) the following specific events or
circumstances:1    earthquake, flood or other natural catastrophe;2    strike or lockout;3    civil disturbance, riot or armed conflict;4    rebellion or sabotage;5    curtailment, rationing or allocation of normal sources of supply
of labour, materials, transportation, energy or utilities;6    sufferance of or voluntary compliance with act of government
and government regulations (whether or not valid);7    fire or explosion, including radioactive or toxic explosion; and8    war, insurrection, riot or acts of terrorism;but only where those events or circumstances:9    are not reasonably foreseeable by the Seller;10
  are beyond the reasonable control of the Seller; and11  are such that, even with the exercise of good engineering and
procurement practices, the Seller would not be able to prevent or overcome.Merchandise
    
    includes all goods, chattels, plant, equipment, machinery, stores, data
and other property of any kind described on the Purchase Order.LGL-Caused 
Delay
    
    1    delay or disruption caused by LGL but does not include any
delay or disruption cause by LGL acting in accordance with this
Purchase Order;2    an act of prevention of LGL including a breach by LGL of any of
its obligations under this Contract, but does not include any
delay or disruption caused by the LGL acting in accordance with
this Purchase Order.Purchase Order
    
    a formal document issued to a supplier for the supply of specific
goods in accordance with these standard terms and conditions The
Purchase Order is a contract between LGL and the Seller.Purchase Order 
Amendment
    
    a written direction from LGL identified as such directing the Seller to
carry out a VariationPurchase Order 
Value
    
    The total value to be paid by LGL in consideration of the Seller
supplying and delivering the Merchandise.Seller
    
    the person, firm or corporation from whom the Merchandise is being
purchased pursuant to this Purchase Order
 Section I  Part B Purchase Order Terms and Conditions
    
    11




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 Term
    
    MeaningShipping Date
    
    The guaranteed date stated in the formal Purchase Order for the
shipment of individual items of Merchandise in accordance with the
relevant Incoterms 2000 classification, or for the Delivery Completion
Date for all components in accordance with the relevant Incoterms
2000 classification.Site
    
    Lihir Mine Site, Putput, Lihir Island, New Ireland Province, Papua
New GuineaStandards
    
    the standards specified to which the Merchandise is to meet or
exceed the requirements of; where no standards are specified, the
relevant Papua New Guinean (PNG) Standard shall apply. Where
there is no relevant PNG Standard, then the relevant Australian
Standard shall apply.Tax
    
    any tax, levy, royalty, rate, duty, fee, impost, or other charge
imposed by any governmental, semi-governmental, or other body
authorised by law whether in PNG, Australia or other country to
impose such Tax. Without limiting the generality of the foregoing,
Tax includes any withholding tax (including foreign contractor
withholding tax), goods and services tax, value added tax,
petroleum resource rent tax, any tax respecting environmental
effects including a carbon tax.Variation
    
    any one or more of the following:1    an increase, decrease or omission of any part of the Works;2    any change in the character or quality of any Merchandise or
any part of the Works; or3    any change in the method, sequence or timing of the Works,but does not include a direction by LGL to perform the Works in
accordance with this Contract
 Section I  Part B Purchase Order Terms and Conditions
    
    12




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 B)
    
    General Terms
and Conditions
  1)
    
    COMPLETE AGREEMENTThis Purchase Order, which term shall include these terms and conditions and any
technical documents incorporated and/or attached hereto (Purchase Order Documents),
constitutes the sole and entire agreement between the parties.The Purchase Order documents comprise the following with the order of precedence as
shown:
 a)
    
    The formal, signed, computer generated Purchase Order detailing specifically what is
being ordered, the Purchase Order Value, any Special Conditions or additional technical
informationb)
    
    Applicable correspondence detailed in the Purchase Orderc)
    
    Tender
Document Section I Part B: Purchase Order Terms and Conditionsd)
    
    Tenderers Completed
Tender Document Section IVe)
    
    Tender Document Section IIIf)
    
    Tender Document Sections I
Part A and Section IIg)
    
    Invitation to Tender Letter
 The Sellers quotation is incorporated in and made a part of this Purchase Order only to
the extent of specifying the nature and description of the Merchandise ordered and then
only to the extent that such items are consistent with the other terms of this Purchase
Order. No other terms or conditions shall be binding upon LGL unless accepted by it in
writing.2)
    
    DELIVERYThe Seller shall deliver the Merchandise in accordance with the Delivery Completion
Date detailed in the Purchase Order, and any delivery milestones detailed in the
Sellers schedule incorporated into the Purchase Documents.3)
    
    QUANTITY, QUALITY, AND VARIATIONSNeither the quantity nor the quality of Merchandise delivered shall differ from that
specified in this Purchase Order unless the changed quantity or quality is ordered by
LGL on a Purchase Order Amendment specifically referring to this Purchase Order. LGL
shall not be required to pay for excess quantities of Merchandise and may return excess
quantities or Merchandise to Seller at Sellers expense.The Seller warrants that all Merchandise sold hereunder, shall have been produced, sold,
delivered and furnished in strict compliance with all Applicable Law and applicable
Standards, to which the Merchandise are subject. Seller shall execute and deliver such
documents as may be required to effect or to evidence compliance. All Applicable Law
required to be incorporated in agreements of this character are hereby incorporated
herein by this reference.The Seller shall prepare an Inspection and Test Plan (ITP) in accordance with the
Sellers standard practice within 2 weeks of award of the Purchase Order. The ITP will
be submitted for review and acceptance by LGL.The Seller shall ensure that the Merchandise meets the consistent quality in accordance
with its quality assurance and control program.
 Section I  Part B Purchase Order Terms and Conditions
    
    13




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 LGL may issue a request for a quotation for a proposed Variation (Variation Quotation)
and, subject to this clause, the Seller must carry out a Variation which is the subject
of a Purchase Order Amendment.Before a Purchase Order Amendment is issued, the Seller must provide a quotation for a
proposed Variation before LGL discusses with the Seller whether the work is to proceed
and the Seller must provide the quotation as soon as practicable after receipt of the
request. A Purchase Order Amendment must incorporate the terms of the Variation
Quotation.The Sellers Variation Quotation for the proposed Variation must include particulars
of:
 
    
    its fixed price for carrying out the proposed Variation;
    
    the effect (if any)
of the proposed Variation on:
 o
    
    the achievement of Delivery Completion;o
    
    any
warranties with respect to the Equipment; ando
    
    the Sellers ability to comply with any
of its obligations under this Contract.
 
    
    any other relevant information related to carrying out the proposed
Variation
 4)
    
    PROGRESS REPORTS AND SCHEDULECommencing the first Monday after the date of issue of the Purchase Order, and
continuing thereafter every Monday until all equipment has been delivered in accordance
with the applicable Incoterms 2000 classification (including short-shipped items, if
any) the Seller shall submit a detailed procurement, manufacturing, assembly and
testing schedule and progress report.Should any incident or occurrence arise which may delay the manufacturing, delivery
schedule, or Delivery Completion Date, the Seller shall immediately notify LGL in
writing.5)
    
    SECURITY AND RETENTIONIf required by the Purchase Order, the Seller shall lodge an unconditional Bank
Guarantee in the amount detailed within 14 days of the Purchase Order issue. This
security will be held by LGL until the expiry of the Defects Liability Period. LGL may
recover all debts due and owing from the Seller to LGL from the security if not
otherwise paid by or recovered from the Seller.In addition, LGL will withhold a percentage of each invoice (totalling 5% of the
Purchase Order Value) until such time as the earlier of Merchandise is inspected on Site
or until completion of equipment commissioning, for a period not to exceed 180 days from
the Delivery Completion Date at the nominated delivery place or shipping point.6)
    
    TAX6.1
    
    Liability for TaxThe Seller shall reimburse LGL for the amount of LGLs liability for any Tax
(excluding income tax) levied by the Australian or PNG government in respect of any
supply made by the Seller under this Contract but only to the extent that such Tax
is incurred or arises before delivery of the Merchandise in accordance with the
relevant Incoterms 2000 classification. Any Tax that is incurred or arises after
delivery of the Merchandise in accordance with the relevant Incoterms 2000
classification is to be borne by LGL and is not subject to reimbursement by the
Seller.Any consideration to be paid or provided for a supply made under or in connection
with the Contract is expressed inclusive of all Tax, other than GST, in force at the
Completion Date.
 Section I  Part B Purchase Order Terms and Conditions
    
    14




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 Should LGL be required to withhold any amounts on account of any Tax (excluding Income
Tax) levied by the Australian or PNG government, the corresponding withheld amount will
be taken as a reduction in the consideration to be paid or provided.6.2
    
    GSTFor the purposes of Clause 6:Adjustment Note means an adjustment note as that term is defined in the GST Law or a
credit or debit note as those terms are defined in the PNG GST Act, as applicable;Consideration has the meaning given by the GST Law;Goods has the meaning given to
that term by the GST Law or the PNG GST Act, as applicable;GST means GST as that term
is defined by the GST Law or the goods and services tax referred to in sections 6 and 8
of the PNG GST Act, as applicable;GST Amount means, in relation to a Taxable Supply,
the amount of GST payable in respect of that Taxable Supply;GST Group has the meaning
given by the GST Law;GST Law has the meaning given by the A New Tax System (Goods and
Services Tax) Act 1999(Cth);Input Tax Credit means an input tax credit as that term
is defined in the GST Law or a credit for input tax as that term is defined in the PNG
GST Act, as applicable and a reference to an Input Tax Credit entitlement of a Party
includes, as applicable:
 
    
    An input tax credit for an acquisition made by that Party but to which another member
of the same GST Group is entitled; or
    
    A credit for input tax for a supply which is made to that Party but which is deemed by
the PNG GST Act to be made to the representative member or a group of companies;
 PNG GST Act means the Goods and Services Tax Act 2003(PNG);Recipient has the meaning given to
that term by the GST Law or the PNG GST Act, as applicable;Tax Invoice has the meaning
given by the GST Law or the PNG GST Act, as applicable;Taxable Supply means a taxable
supply as that term is defined in the GST Law (excluding the reference to section 84-5 of
the A New Tax System (Goods and Services Act 1999 (Cth)) or a supply upon which goods and
services tax is imposed by the PNG GST Act, as applicable.6.3
    
    Tax Exclusive Consideration

Any consideration to be paid or provided for a supply made under or in connection with
the Contract, unless specifically described in the Contract as GST inclusive, does not
include an amount on account of GST.The Seller will make all reasonable endeavours to ensure the supply of the Merchandise is
GST-free under GST Law. In this regard, the Seller warrants that it will export the
Merchandise within 60 days of the earlier of receiving any consideration for the supply
or issuing an invoice for the supply and that it will hold sufficient documentary
evidence to substantiate the export of the Merchandise within the 60 day timeframe.
 Section I  Part B Purchase Order Terms and Conditions
    
    15




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 Despite any other provision in the Contract, if a party (Seller) makes a supply under
or in connection with the Contract on which GST is imposed to any extent (not being a
supply the consideration for which is specifically described in the Contract as GST
inclusive):
 
    
    The consideration payable or to be provided for that supply under the Contract is
increased by, and the recipient of the supply (Recipient) must also pay to the
Seller, an amount equal to the GST payable by the Seller on that supply;
    
    The amount by which the GST exclusive consideration is increased must be paid to the
Seller by the Recipient at the same time as the GST exclusive consideration is
payable or to be provided; and
    
    Notwithstanding any other provision of the Contract, the Recipient is not required to
pay any amount unless it has received a valid tax invoice (or valid adjustment note)
for that taxable supply.
 Notwithstanding the above provisions, the Buyer is only required to gross up a payment
under Clause 6.3 if and to the extent that the Buyer is entitled to claim a corresponding
Input Tax Credit.6.4
    
    Reimbursements

If a payment to a party under the Contract is a reimbursement or indemnification,
calculated by reference to a loss, cost or expense incurred by that party, then the
payment must be reduced by the amount of any input tax credit to which that party is
entitled for that loss, cost or expense. That party is assumed to be entitled to a full
input tax credit unless it proves, before the date on which the payment must be made,
that its entitlement is otherwise.6.5
    
    Adjustment Events
If, at any time, an adjustment event arises in respect of any supply made by a party
under the Contract, a corresponding adjustment must be made between the parties. Payments
to give effect to the adjustment must be made between the parties and the Seller must
issue a valid adjustment note in relation to the adjustment event.6.6
    
    Survival
This clause 6 shall survive on completion or termination of the Contract.7)
    
    INSPECTION IN PROGRESS
Seller agrees that LGL or its designated agent shall have the right of inspection of all
Merchandise furnished hereunder while in any stage of engineering or manufacture upon
presentation of twenty-four (24) hours notice and Seller shall carry out any tests as
required by LGL to establish if the Merchandise conforms to this Purchase Order. Seller
shall make this a condition of any subcontract work and provide all relevant information
concerning its Subcontractors to LGL. The Seller and/or Subcontractors shall ensure that LGL
or its designated agent has access to drawings and the like to verify the goods being
manufactured. LGL or its designated agent shall have the power to reject any Merchandise
that does not conform to this Purchase Order, whereupon this rejected Merchandise shall be
re-supplied at no additional cost to LGL. Any such inspection or any lack of such inspection
shall not relieve Seller of any obligation contained in the Purchase Order Documents.8)
    
    DRAWINGS, OPERATION MANUALS, MAINTENANCE MANUALS, AND PARTS LISTS
The Seller shall supply all drawings, manuals, etc, (Data) as required by the Purchase
Order, by pre-paid courier service at no additional cost. In addition to any other Data
required, the Seller shall submit:
 Section I  Part B Purchase Order Terms and Conditions
    
    16




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 
    
    Mechanical: Five (5) sets of preliminary drawings for review.
    
    Electrical: Two (2) sets of preliminary drawings on paper for review of design.
    
    All Drawings: Two (2) sets on paper, one (1) electronic Certified for Construction
or As Built: as applicable, signed and dated.
    
    Installation, Operation and Maintenance Manuals (Operators Manuals): Two (2)
preliminary copies. Manuals are to be in binders and tagged with the Sellers name,
the Purchase Order number, model and equipment numbers.
    
    Approved Operators Manuals: Four (4) SETS. (If the 2 preliminary manuals are
approved without comment by LGL, then only two (2) additional copies are required.)
    
    Parts Manuals: Four (4) sets including bearings, seals, and filter conversions for
mechanical equipment (Parts Manuals may be combined with the Operators Manuals)
 LGL will review and return the Data to the Seller with one of the following comments:
 i)
    
    No Exception Taken  the Seller will proceed with the supply of Merchandise
indicated on that submission in accordance with the Purchase Order.ii)
    
    Exception as
Noted  the Seller shall make the changes noted and proceed with the supply of
Merchandise in accordance with the Purchase Order. The revised data will be resubmitted
for LGL further review.iii)
    
    Revise as Noted and Resubmit  the Seller shall revise
the data and resubmit for review prior to proceeding with supply of the Merchandise
unless written instructions are received to the contrary from LGL.
 Drawings must be folded to A4 size.All documents produced for the MOPU Project will contain the following information:
 
 Within five (5) days after receipt of the Purchase Order, the Seller shall submit a drawing
schedule that will include drawing numbers, drawing descriptions, revision numbers and
submittal dates which will be in accordance with the dates detailed in the Sellers
completed Tender Section IV Technical Data Schedule.9)
    
    SHIPPING
The Seller shall prepare the Merchandise for shipping in accordance with Part C of the
Purchase Order terms and conditions.10)
    
    PAYMENTS
In consideration of the payment by LGL to the Seller of the Purchase Order Value, the Seller
shall supply the Merchandise and otherwise perform its obligations in accordance with the
Purchase Order.
 Section I  Part B Purchase Order Terms and Conditions
    
    17




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 Subject to the Seller properly performing its obligations under the Purchase Order, LGL
shall pay the Seller the Purchase Order Value.Progress claim payments will be made by LGL in accordance with the milestones and currency
detailed in the formal Purchase Order. Payments will be made at the end of the month
following receipt of correct invoices. The time for payment of invoices, or for accepting
any discounts offered, shall run only from the date correct invoices are furnished to LGL.Progress claims shall include evidence that a milestone has been reached. Evidence of
achieving a milestone date will include: unpriced purchase orders to sub-suppliers together
with the sub-suppliers written acceptance of the order; delivery dockets for goods to be
incorporated into the Merchandise; test certificates; and proof of delivery of the component
in accordance with the applicable Incoterms 2000 classification.Progress claim invoices shall be sent to the address detailed for LGL in clause 33.

Progress claim invoice payments will be made by electronic funds transfer.LGL may set off any amounts due and payable by the Seller to LGL against any payments due
and payable from LGL to the Seller either under this Purchase Order or otherwise.11)
    
    CANCELLATION
LGL may, at its option, cancel any Purchase Order for Merchandise (in whole or in part) not
then delivered or in transit by written notice which shall be effective immediately.
Provided the Seller is not in default, LGL shall pay to Seller the cost incurred by Seller
in connection with this Purchase Order prior to the date of such cancellation but excluding
unrecovered overheads or profits, provided that the amount payable by LGL in respect of such
cost, when added to all previous payments made or becoming payable hereunder shall not
exceed the total price stated in the Purchase Order. Upon such payment, title to and
property in any Merchandise forming part of or incomplete Merchandise shall pass to LGL. If
required by LGL, the Seller will novate any subcontracts to LGL.12)
    
    TERMINATION FOR DEFAULT
In the event of any breach by Seller of any of the terms of this Purchase Order including
Sellers warranties, LGL may at its option, and without prejudice to any of its other
rights, by notice in writing, cancel the Purchase Order in respect of any undelivered
Merchandise or non performed Service. In the case of a fundamental breach by the Seller,
termination shall be immediate, whereas for other breaches, termination will be effective if
the breach is not rectified within 30 calendar days of notice in writing by LGL. The
Delivery Completion Date stipulated for delivery of the Merchandise shall be the fundamental
term of the Purchase Order.On issuing notice in writing of a breach (other than fundamental breach), LGL may suspend
payments to the Seller until the date on which the Seller remedies the breach.LGL must immediately lift any suspension of payments if the Seller remedies the breach or
overcomes the effects of the breach.Upon termination in accordance with this clause 12, LGL shall be entitled to, at its
election, to receive title to the Merchandise (in its then current state) and make no
further payment under this Contract or receive a full refund of all amounts paid under this
contract to the date of cancellation.
 Section I  Part B Purchase Order Terms and Conditions
    
    18




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 13)
    
    WARRANTIES  GUARANTEES
Seller warrants to LGL that the Merchandise shall be of the quality specified or of the best
of their respective kinds if no quality is specified, and shall conform to the
specifications, drawings, samples, and other descriptions set out in the Purchase Order
Documents. Seller guarantees and warrants the Merchandise against any and all defects in
workmanship and materials during the defects liability period which shall be the earlier of
eighteen months from the Delivery Completion Date of the equipment or twelve (12) months
following commissioning the equipment. In the absence of a specified standard, the
Merchandise shall be in accordance with PNG Standards, and if no applicable PNG Standard
exists, to Australian Standards.The Seller warrants that the Merchandise will meet or exceed any availability or performance
guarantees specified in the Purchase Order. If those guarantees are not met or exceeded (in
the opinion of LGL) then the Seller shall pay as a debt due and payable an amount to LGL as
compensation for LGLs genuine pre-estimate of its loss. This amount shall be detailed in
the Purchase Order.During the defects liability period, defective Merchandise shall be replaced or repaired by
the Seller free of charge, or alternatively defective Merchandise may be replaced or
repaired by LGL at the Sellers cost (such amounts to be a debt due and payable by the
Seller to LGL).The Merchandise is ordered by LGL in reliance on each and all of the warranties and
guarantees specified herein, or implied by law or usage or trade, and unless otherwise
expressly stated herein, said warranties and guarantees shall apply. If the Seller is not
the manufacturer of some or all of the Merchandise covered by the Purchase Order, Seller
shall, in addition to the warranties and guarantees set out in the preceding paragraph, or
in the alternative to the said warranties and guarantees, make necessary arrangements
whereby the manufacturers involved will extend the same warranties and guarantees to LGL
directly.14)
    
    SELLERS INDEMNITY
Insofar as this clause applies to property, it applies to property other than the equipment
or goods.The Seller indemnifies LGL against:
 (i)
    
    loss of or damage to LGLs property;(ii)
    
    claims by third parties arising out of or as a consequence of the Sellers
performance of the Purchase Order;(iii)
    
    claims in respect of personal injury or death
or loss or damage to any other property arising out of or as a consequence of the
Sellers performance of the Purchase Order; and(iv)
    
    the Sellers breach of this
contract,
 but the indemnity shall be reduced proportionally to the extent that the act or omission of
LGL or its consultants, agents or other contractors (not being employed by the Seller) may
have contributed to the injury, death, loss or damage.

The clause shall not apply to the extent that the Sellers liability is limited by another
provision of the Purchase Order.15)
    
    INSURANCE TO BE ARRANGED BY SELLER15.1
    
    Insurance of Merchandise: The Seller shall, at its own cost, insure the Merchandise for its
replacement value against loss or damage from the date of the Purchase Order until
 Section I  Part B Purchase Order Terms and Conditions
    
    19




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 the Merchandise is delivered in accordance with the relevant Incoterms 2000
classification.The policy or policies effected under this subclause shall note the interests of LGL.15.2
    
    Public and Product Liability: Seller shall, at its own cost, maintain and pay for public
and product liability until expiry of the Defects Liability Period with a limit of not less than
AUD10,000,000. Seller shall ensure each Sub-Contractor carries equivalent comprehensive public
and product liability insurance.Policies shall note the interests of LGL and cover the parties respective liability to
each other for loss or damage to property (other than property required to be covered
under subclause 15.1 and the death of or injury to any person (other than liability which
the law requires to be covered under a workers compensation insurance policy.15.3
    
    Professional Indemnity: Seller shall, at its own cost, maintain and pay for professional
indemnity insurance with a limit of not less than AUD10,000,000 inclusive for any one claim and
in the aggregate or such greater amount as may be required by any applicable professional
organization or licensing authority. Such insurance shall be continued in place for at least six
(6) years following completion of the Works.15.3
    
    Workers Compensation: Seller shall insure its liability, including its legal liability, as
required under any applicable Workers Compensation statute or regulation to its employees
engaged in doing anything for the purpose of executing Sellers rights or obligations under the
Purchase Order. Such Insurance shall be endorsed, where possible, to indemnify LGL and its
consultants, affiliates, employees and agents against any liability which they may incur under
any applicable Workers Compensation statute or regulation thereunder, in relation to the said
employees engaged as aforesaid.
Seller shall also ensure that each of its Sub-Contractors insures their liability,
including their legal liability, as required under any applicable Workers Compensation
statute or regulation thereunder to their employees engaged in doing anything for the
purpose of executing Sellers rights or obligations under the Purchase Order and such
insurance by each Sub-Contractor shall be endorsed, where possible, to indemnify Seller,
LGL and their respective consultants, affiliates, employees and agents against any
liability which they may incur under any applicable Workers Compensation statute or
regulation thereunder, in relation to the said employees engaged as aforesaid.Seller shall pay all assessments due under relevant Workers Compensation legislation.Seller shall provide LGL with satisfactory evidence that Seller is in good standing with
applicable Workers Compensation authorities from time to time as may be requested by
LGL.16)
    
    GENERAL INSURANCE PROVISIONS16.1
    
    Insurance shall be effected by Seller before the commencement of the risks to which the
insurance relates with insurers approved by LGL whose approval shall not be unreasonably
withheld.16.2
    
    Seller shall show proof of the above cover prior to performing this Purchase Order.
Seller shall provide LGL with certificates of insurance of each policy requested by LGL
together with evidence of payment of premiums. If Seller fails to provide satisfactory
evidence of insurance to LGL, LGL may, but shall not be obligated to, place such
insurance as LGL may consider necessary and the cost of such coverage shall be paid by
Seller on demand.
 Section I  Part B Purchase Order Terms and Conditions
    
    20




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 16.3
    
    The effecting and keeping in force of insurance as required herein shall in no
way limit the responsibilities, obligations and liabilities of Seller under other
provisions of the Purchase Order.16.4
    
    Seller is responsible for all additional Insurance that it deems necessary and it
shall indemnify and hold harmless LGL and its consultants, affiliates, employees and
agents against any claims by it or any third party in the event of a loss or damage.16.5
    
    The policies for the insurance to be provided by Seller shall contain provisions
acceptable to LGL which:
 
    
    requires the insurer to inform both parties, whenever the insurer
gives a party or a subcontractor a notice in connection with the policy;
    
    provides that a
notice of claim given to the insurer by either party or a subcontractor shall be accepted by
the insurer as a notice of claim given by both parties and the subcontractor; and
    
    requires
the insurer, whenever the Seller fails to maintain the policy, promptly to give written
notice thereof to both parties and prior to cancellation of the policy.
 17)
    
    PRICEThe price stated on this Purchase Order is a lump sum fixed price in accordance
with the relevant Incoterms 2000 classification and not subject to escalation. The
price stated on this Purchase Order includes all risks expressly and impliedly
contemplated by the agreement.18)
    
    SPARE PARTSThe Seller shall be obligated to supply spare parts at the prices detailed in its
completed Tender Section IV for purchases made by LGL up to the end of the
Warranty period.The successful Tenderer shall be required to supply all cross reference part
numbers on non-original equipment manufacturer or sub-supplier parts19)
    
    PATENTS, TRADEMARKS AND COPYRIGHTSSeller warrants to LGL and its successors in title, that the manufacture, sale or
use of the Merchandise will not infringe or contribute to the infringement of any
intellectual property rights including patents, trademarks, designs or copyrights
in Australia or in any other country. Seller indemnifies LGL and its successors in
title against any loss or damage (including legal fees and costs) arising from
breach of this warranty or prevention or hindrance of use of the Merchandise. The
Intellectual Property in the Merchandise and documents shall remain with the
Seller, and the Seller provides an irrevocable, royalty-free, perpetual licence to
LGL to use the Intellectual Property.20)
    
    TITLE AND RISK IN THE MERCHANDISERisk in the Merchandise shall pass to LGL on delivery to the place specified in
the Purchase Order in accordance with the relevant Incoterms 2000 classification
but subject to LGLs right to reject any Merchandise.Title in the Merchandise passes to LGL upon payment to the Seller of the final
milestone payment.
 Section I  Part B Purchase Order Terms and Conditions
    
    21




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 21)
    
    TRANSPORTATIONImmediately Seller despatches the Merchandise, Seller shall notify LGL of the date
and time of dispatch, the number of the Purchase Order, the kind and amount of
Merchandise dispatched and the route and method by which the Merchandise will be
transported. All Merchandise shall be packed, marked and transported as specified
in this Purchase Order, but if not specified, then in a proper and suitable manner
and in all cases in accordance with the proper requirements for carrier.22)
    
    INSPECTION OF MERCHANDISENotwithstanding any prior payment, all Merchandise is subject to inspection and
testing, which may be carried out after installation or incorporation and under
operating conditions. If upon or after any such inspection or test any Merchandise
is found to be unsatisfactory, defective, of inferior quality or workmanship or
fails to meet the specifications or any other requirements of this Purchase Order,
LGL, without prejudice to any other rights or remedies it might have, may return
the Merchandise to Seller at Sellers expense. Upon return of any unsatisfactory
or defective Merchandise, Seller shall either resupply new Merchandise as a
replacement of the returned Merchandise or reimburse LGL for any amounts paid by
LGL on account of the purchase price of returned Merchandise and any other cost,
expense, or damage incurred or suffered by LGL in connection with the failure of
the Seller to comply with the terms of this Purchase Order, including such costs,
expense or damage associated with the delivery, installation or return of the
Merchandise.23)
    
    CONFIDENTIAL INFORMATIONAny Confidential Information provided by the Seller or LGL shall not be disclosed
by the other party to any third person without prior written consent of the fist
party. The exceptions to his clause are if the information is in the public domain
or the information is required to be disclosed by law or the rules of a stock
exchange on which the partys securities are listed.Unless otherwise provided in this Purchase Order, all plans, drawings and
specifications prepared or supplied by or on behalf of LGL and any copies made
therefrom shall be and remain the property of LGL, and shall be used by Seller
only in performance of this Purchase Order, and shall be returned by Seller on
completion of this Purchase Order.24)
    
    LICENCESUnless otherwise specified in this Purchase Order, Seller at its cost shall obtain
all required licences, permits and authorities required in performance of this
Purchase Order and shall comply with all Applicable Law and Standards in relation
to the Merchandise.25)
    
    STANDARD CONDITIONS FOR ON-SITE WORKIf LGL requires the Seller to undertake on-Site work, the Seller will be required
to enter into a separate purchase order which will require the Seller to comply
with the terms detailed in Section 1 Part C Technical On-site Personnel Terms.26)
    
    DELAYS AND LIQUIDATED DAMAGESThe Seller acknowledges that delivery of Merchandise must be made by the dates
specified. If the Seller fails to meet the dates stipulated in the Purchase Order,
the Seller shall pay to LGL 0.5 Percent (0.5%) of the Purchase Order Value for
each day the shipment or performance date is delayed up to a maximum of Five
Percent (5.0%) of the Purchase Order Value by way of Liquidated Damages. The
Purchase Order shall specify if liquidated damages apply and if so, the applicable
percentages. Should the liquidated damages clause be found to be unenforceable,
then LGL will be entitled to claim damages on other grounds.
 Section I  Part B Purchase Order Terms and Conditions
    
    22




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 Notwithstanding the foregoing, the Seller shall not be liable for delays due to
causes (not including financial causes) beyond its reasonable control and covered
under a Delay Event. If under these circumstances, LGL decides that it will not be
unduly prejudiced by any such Delay Event, the Delivery Completion Date or
performance shall be extended for the period equal to the time actually lost by
reason of such Delay Event at no additional cost to LGL.The Seller shall immediately notify LGL in writing within ten (10) days if an
incident or occurrence arises which may delay the manufacturing, delivery schedule
or Delivery Completion Date. Failure to do so will constitute a waiver of any
claim the Seller may have had for an extension of time.LGL will withhold progress payments or apply liquidated damages pending receipt of
final certified drawings within the time specified by the Seller in the Completed
Tender Section IV Form of Tender27)
    
    LIMITATION OF LIABILITYThe total liability of each party arising out of or in connection with the
Contract including a claim in tort, under statute, for rectification or
frustration or like claim available under the law governing the Contract is
limited to the Purchase Order Value.The limitation shall continue to apply notwithstanding fundamental breach, breach
of a fundamental term, rescission, repudiation or termination for any reason or
frustration, whether unintentional or by operation of law.The limitation of liability under this clause 27 shall not apply to:
 a)
    
    Liability to pay the value of the Purchase Order as adjusted pursuant to the Purchase Order Terms and
Conditions;b)
    
    Loss arising through fraud, negligence or wilful misconduct by a party;c)
    
    Liability for infringement of any third party intellectual property rights;d)
    
    The extent
that liability is otherwise limited by another provision of the Contract; ande)
    
    Liability
out of which by law the party liable cannot contract.
 28)
    
    PROGRESS REPORTSCommencing the first Monday after date of issue of the Purchase Order, and
continuing thereafter every Monday, until all equipment has been shipped (including
short-shipped items, if any), the Seller shall submit a detailed procurement,
manufacturing, assembly and testing schedule and progress report.Should any incident or occurrence arise which may delay the manufacturing or
delivery schedule, the Seller shall immediately notify LGL in writing.29)
    
    SUSPENSIONLGL may direct the Seller to suspend supply or delivery of the whole or part of
the equipment or goods for such time as LGL thinks fit, if LGL is of the opinion
that it is necessary because of an act, default or omission on the part of LGL or
the Seller; for the protection or safety of any person or property; or to comply
with a court order.If the Seller wishes to suspend supply or delivery of the whole or part of the
equipment or goods the Seller shall obtain LGLs prior written approval. LGL may
approve the suspension and may impose conditions of approval.
 Section I  Part B Purchase Order Terms and Conditions
    
    23




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 As soon as LGL becomes aware that the reason for any suspension no longer exists,
LGL shall direct the Seller to recommence the suspended supply or delivery as soon
as reasonably practicable.The Seller shall bear the cost of suspension pursuant to this clause unless the
suspension was necessary due to an act or omission of LGL or if they were not
responsible for the necessity of the protection, safety or court order. If the
suspension was caused by LGL, LGL shall only be liable to the Seller for a maximum
of $100 per day for each day of the suspension up to a maximum aggregate liability
of $1,000.30)
    
    NON-WAIVERFailure of LGL to insist upon strict performance of any of the terms and
conditions of the Purchase Order, or failure or delay to exercise any rights or
remedies provided herein or by law or to properly notify Seller in the event of
breach, or the approval, acceptance of, or payment for, any Merchandise hereunder,
shall not release the Seller of any of the warranties, guarantees or obligations
of this Purchase Order and shall not be deemed a waiver of any right of LGL to
insist upon strict performance hereof or of any of its rights or remedies as to
any such Merchandise or Service.31)
    
    NO ASSIGNMENTAny assignment, mortgage, charge or other encumbrance of this Purchase Order by
the Seller, or of any rights hereunder or thereof in any manner, in whole or in
part, by operation of law or otherwise, without the prior written consent of LGL,
shall be void.LGL can assign and novate this Purchase Order without the consent of the Seller.32)
    
    DISPUTESIn case any dispute of difference shall arise between LGL and the Seller, either
during the performance of the Purchase Order requirements or after termination,
abandonment or breach of the Purchase Order, as to the construction of the
Purchase Order or as to any matter or thing whatsoever arising thereunder or in
connection therewith, then the aggrieved party shall give to the other, notice in
writing setting out in full the detailed particulars of the dispute or difference.
Upon receipt or issue of the notice, LGL shall give written notice to the Seller
appointing a date, time and venue for a conciliation meeting to be held to discuss
in detail the dispute or difference and may appoint such further time as may be
necessary for the continuation thereof. The parties shall not be legally
represented at the conciliation meeting but shall present in their own manner,
with the assistance of witnesses and documentary evidence, the details of their
respective cases. If at the conclusion of the conciliation meeting the parties
fail to resolve the dispute or difference, either party may give to the other
within fourteen (14) days, a notice stating that at the expiration of thirty (30)
days, it will proceed to have the dispute or difference referred to a court of
competent jurisdiction and at the expiration thereof, but not before, may so
proceed.33)
    
    NOTICESAny notice or other communication in relation to this Purchase Order including
any request, demand, consent or approval, to or by a party to this Purchase Order
must be in legible writing and in English and addressed as follows:
 
    
    if to LGL addressed to: The MOPU Project Manager, Level 7, Pacific Place,
Cnr of Champion Parade and Musgrave Street, (PO Box 789), Port Moresby, Papua
New Guinea; facsimile +617-3318-9203
    
    if to the Seller, as set out in the Purchase Order;
 Section I  Part B Purchase Order Terms and Conditions
    
    24




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 or a substitute address notified by a party to the other party;The notice must be signed by:
 
    
    where the sender is the Seller, must be signed by an officer of the Seller;
    
    where the sender is LGL, it must be signed by the Project Manager;
    
    in the case of notice by email, the notice must be accompanied by a
digital signature;
 The notice will be deemed to be given or made:
 
    
    if posted from an address other than in Australia or Papua New Guinea to
an address in Papua New Guinea, 10 Business Days after posting;
    
    if posted from an address in Australia or Papua New Guinea, 7 Business
Days after posting;
    
    if delivered by hand, on delivery;
    
    if faxed, on receipt of a transmission report confirming successful
transmission unless the addressee telephones the sender within 24 hours after
transmission is received or regarded as received and informs the sender it is
not legible; and
    
    if sent by email is regarded as given and received when sent to the sender
unless: the sender receives a report of delivery failure or delivery delay; the
sender receives an Out of Office reply or similar response; or the addressee
informs the sender that the notice is illegible, incomplete or corrupted,
within 24 hours of the notice being transmitted,
 but if delivery or receipt is on a day which is not a Business Day or is after
5.00 P.M. at the place of delivery or receipt, it is taken as given at 9:00 A.M.
on the next Business Day; and
 
    
    can be relied on by the addressee and the addressee is not liable to any
other person for any consequences of that reliance if the addressee believes it
to be genuine, correct and authorised by the sender.
 In this clause 33 a reference to an addressee includes a reference to an
addressees agents or employees.
 Section I  Part B Purchase Order Terms and Conditions
    
    25




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 C)
    
    PREPARING ORDERS FOR SHIPMENT
 1.
    
    General
 The terms of shipment shall be as identified in the Project specification.
All Merchandise shall be prepared and packed to withstand transport from the point of
origin to Lihir Island in Papua New Guinea including periods of unprotected storage. The
instructions described herein shall be considered as minimum requirements and if
additional measures for the protection of the goods are needed according to the
experience of the Seller, they shall be provided.Failure to comply with these instructions may result in delays in unloading and issuance
of payment.Costs incurred by LGL as a consequence of insecure or unsuitable packaging will be
backcharged to the Seller.In addition to the requirements detailed herein, further shipping instructions may be
issued to the Seller with the Purchase Order.The Seller shall not show the declared value on shipping documents.
 1.1
    
    ConsignmentsUnless otherwise agreed to in writing by LGL:
 
    
    Merchandise for fulfilment of a Purchase Order shall be prepared for
shipment in one single consignment; and
    
    Merchandise for different Purchase Orders shall not be packed together.
 Actual contents of packages shall be subject to quantity check against the
Sellers packing documents upon receipt at the project Site. Any discrepancies
found at Site shall be rectified by the Seller at no charge to LGL unless proof of
correct supply can be substantiated.
 1.2
    
    Merchandise ReleaseNo Merchandise shall be packed for shipment until all requirements of the
approved Project Inspection and Test Plan have been met and a preliminary copy
of the bill of lading and other shipping documentation has been emailed to
LGL.Notwithstanding the above, all Merchandise may also be subject to final
inspection by LGL or LGLs nominated representative immediately prior to
packing. Merchandise identified for final inspection shall not be packed without
prior written approval from LGLs nominated representative.1.3
    
    Packaging Dimensions and WeightWherever possible, Sellers shall ensure that items are packaged to comply with
normal truck loading dimensions as follows:
 Maximum Length
    
    12.5 metresMaximum Width
    
    2.5 metresMaximum Height
    
    2.85 metresMaximum Weight
    
    24 tonnes gross
 Section I  Part B Purchase Order Terms and Conditions
    
    26




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 If goods exceed any one of these dimensions then the Seller must provide details
to LGLs nominated Shipping Agent not less than eight calendar weeks prior to
packing. In the case of oversize and/or awkwardly shaped goods, the Seller shall
also submit drawings showing the proposed method of dunnage, supports, centre of
gravity, location of lifting lugs, transport orientation, position of any skids
and saddles, recommended lifting arrangements, etc.1.4
    
    Grouping of MerchandiseMerchandise shall be grouped to facilitate easy identification and separation of
materials / items as per the following:
 
    
    Construction priority items (cast-in items, priority steelwork, etc)
shall be packed separately from other materials on the Purchase Order
and clearly labelled: PRIORITY ITEMS.
    
    Commissioning and start up spares shall be packed separately to all
other Merchandise on the Purchase Order and clearly labelled:
COMMISSIONING AND START-UP SPARES.
    
    As much as practical, palletised or containerised equipment shall be
packed so that equipment with similar equipment numbers are grouped
together.
    
    Dangerous Goods may be packaged together as long as they are compatible.
 1.5
    
    Hazardous MaterialsThe Seller shall give a minimum of three calendar weeks prior warning to LGLs
nominated Shipping Agent if any consignment includes goods that fall into the
category of HAZARDOUS as defined in the Australian Dangerous Goods Code, or
goods that have inherent transport risks: eg subject to mechanical derangement,
subject to magnetic interference, etc. Prior to shipment, the Seller must advise
LGL of any Dangerous Goods and fax a copy of all required paperwork for the
shipment of Dangerous Goods.The Seller shall provide suitable containers and/or packaging for the transport of
hazardous goods, and all containers / packaging shall be suitable for transport
via any of road, rail, sea or air. All containers and packaging, and markings on
the outside of the containers and packaging, shall be in accordance with the
Australian Dangerous Goods Code.All Dangerous Goods must be packaged separately from other merchandise. All
packages must be labelled with the proper hazard label, per procedures identified
by the Australian Code for the Transport of Dangerous Goods by Road and Rail
Edition in effect at time of shipment. Purchase Orders intended for shipment by
air freight must also be packaged in accordance with IATA Dangerous Goods
Regulation Edition in effect at time of shipment by Passenger or Cargo aircraft.It is the responsibility of the Seller to complete a Hazardous Goods declaration
and supply a Material safety Data Sheet (MSDS) and Emergency Procedure Guide
(EPG).Any dangerous goods shall also be declared on the Shippers Letter of Instruction
(SLI), and the SLI shall be accompanied with a properly completed Australian
Maritime Safety Authority (AMSA) Multimodal Dangerous Goods Form (MO41). This is a
requirement of the Federal Department of Transportation and if documentation is
not adequately completed it may result in the goods being unable to be transported
and associated costs being backcharged to the Seller.
 Section I  Part B Purchase Order Terms and Conditions
    
    27




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 1.6
    
    Fumigation CertificatesWhere required, a certificate of fumigation is to be supplied in accordance with
Australian and Papua New Guinea Quarantine Inspection Services requirements
relative to the country of supply.
 2.
    
    Packaging Documentation
 2.1
    
    Shippers Letter of InstructionA Shippers Letter of Instruction (SLI) or carrier consignment note shall be fully
and comprehensively completed in the format required by LGLs nominated Shipping
Agent, and forwarded to the Shipping Agent by email prior to delivery pickup. The
receiver of the goods identified on the SLI or consignment note shall be Lihir
Gold Limited (PNG).Where a consignment contains hazardous goods, they shall be
declared on the SLI or consignment note as required by Section 1.4.
 2.2
    
    Packing ListsAll shipments must be accompanied by a packing slip, which must show type of
package, gross weight and dimensions of each package. The packing slip must also
describe the Merchandise, the quantities shipped, whether or not there is a short
shipment, LGLs Purchase Order number, the equipment number and the date shipped.The original invoice / packing list shall be placed inside the package, and a copy
of the same documentation shall be placed inside a sealed waterproof document
envelope securely fixed to the outside of the packaging. Wherever possible, values
shall be identified against each line item on the invoice / packing list.Where goods are classified as hazardous, a copy of the relevant MSDS and EPG shall
be included with each copy of the packing documentation.When shipment is effected in wooden boxes, the packing slip shall be placed in a
suitable waterproof plastic envelope attached to the outside of the box by means
of heavy duty adhesive tape or other transit durable method of fastening.When the Merchandise is shipped loose or on skids, the packing slip, again
protected by a suitable waterproof plastic envelope, shall be fixed at a location
not likely to be subject to the packing slip being torn off in transit.In the case of multiple items covered by one packing slip, the case or piece to
which the packing slip is attached shall be clearly identified and all others must
have affixed a label indicating the case or piece number that has the packing
slip. Items on the packing slip must correspond in sequence to the items on the
Purchase Order.
 2.3
    
    Bills of Lading (B.O.L.)The applicable Purchase Order number must appear on all B.O.L.
 3.
    
    Packaging Standards
 3.1
    
    GeneralPackaging and packing shall be of such design that damage will not occur to the
packed goods during transport and handling from any effects of tilting, swinging,
vibrating, lifting, or stacking compression.
 Section I  Part B Purchase Order Terms and Conditions
    
    28




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 Where necessary, the packed goods shall be secured within the packaging in such a
way that they can withstand these loads without any damage. Such securing can be
effected by fixing to skids or a base frame, cushioning between the goods and
packaging wall, etc. Nylok nuts shall be used on all securing bolts.The types and extent of packing shall be compatible with the weight and
characteristics of the goods being packed. The use of cardboard cartons as outside
protection is not acceptable except where these are further contained in
waterproof packing.Electrical components or goods likely to suffer deterioration by moisture
penetration or entrapped water vapour shall be packed in completely weather- and
dust-proofed packaging and further protected by the provision of an absorbent
desiccant (i.e. Silica Gel) within the weatherproof barrier. The desiccant shall
be contained in new, dry, vapour-permeable bags, which shall clearly identify the
nature and purpose of the contents.Rotors, electric motors, and rotating elements
fitted with anti-friction bearings shall be protected from internal damage by
clearly visible external clamps that prevent movement during transport and
handling.Other items of equipment or instrumentation that are free to move, vibrate or
chafe during shipping shall be adequately secured or blocked. Clearly visible
warning notices shall be provided to ensure on-site removal of securing devices
and blocking prior to operation.If accessories are removed from any item of
equipment or equipment is split into components, then suitable blank shipping
plates must be installed.Prepared metal surfaces likely to rust or corrode shall be treated with a suitable
preservative (Shell Ensis SDC or equivalent) or otherwise protected by suitable
packaging. Care should be taken to ensure working surfaces are not impaired by the
application of any preservative.All exposed flanges and machined faces shall be protected by plyboard covers with
a minimum thickness of 8 mm and a minimum over-cover of 30 mm. Plugs or cover
plates shall be provided on all inlets and outlets, and wherever else necessary to
prevent ingress of dirt.Protective finishes to steelwork, piping, and equipment shall be protected from
rubbing and wearing during transport and handling by provision of suitable
blocking and/or padding (eg carpet).Biodegradable packaging and packing shall be utilised wherever possible to
facilitate disposal of waste materials within the limited waste disposal
facilities available on Lihir Island.3.2
    
    Cardboard CartonsCardboard cartons shall be of good quality to withstand transport and handling,
with a net content of manageable weight for lifting by hand. All cartons shall be
securely taped crossways, top and bottom.Fragile or sensitive items that cannot be manageably packed or adequately
protected in cardboard cartons must be packed in appropriate wooden crates or
cases.3.3
    
    Wooden Crates and BoxesWooden crates and boxes shall be good quality pine timber with hardwood bases and
steel strengthening bands. Bearing timbers at the base of crates shall be spaced
no more than 700mm apart.
 Gross Weight
    
    Timber Dimensions / Nominal Steel Strapping RequirementsTo 200kg
    
    Minimum 25mm thickness timber throughout, 2 x 25mm steel straps
 Section I  Part B Purchase Order Terms and Conditions
    
    29




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 200-400kg
    
    Minimum 25mm thickness timber throughout, at least 2 x 25mm
steel straps (or more if commensurate with weight) to body of crate400-600kg
    
    100x50mm framing, minimum 25mm thickness timber elsewhere, at
least 2 x 25mm steel straps (or more if commensurate with weight)
to body of crate, 2 x 25mm steel straps to corners.
 For gross weights greater than 600kg, crates shall be extreme duty wooden pallet
crates commensurate with the weight of the contents and the safe handling and
protection of the cargo.3.4
    
    Wooden CasesClosed wooden cases (as opposed to open crates) shall be used for sea freight of
all sensitive equipment. They shall be of strong, solid, close jointed, export
quality and designed in accordance with AS2400.7-1990.Cases shall be constructed from good quality pine timber with hardwood bases.
Sheathing boards shall be of a minimum thickness of l9mm. Plywood material must be
glued marine grade plywood. All joints and top screw/nail holes shall be sealed
with Silicon SealantSkid-type bases shall have runners with a minimum cross
sectional dimension not less than the following:
 Minimum Size ofMass of Shipment
    
    Timber(kg)
    
    (mm x mm)Up to 1,000
    
    50 x 1001,000-3,000
    
    100 x 1003,000-7,500
    
    100 x 1257,500-12,500
    
    125 x 125>12,500
    
    As required
 The contents of each case shall be completely weather and dust-proofed by the use
of non-permeable film, of suitable strength such as Polythene sheet, tar paper
or approved equivalent, to form a sealed moisture barrier.3.5
    
    Steel DrumsSteel drums shall be of export quality and shall be
non-returnable.3.6
    
    Bundling of Loose ItemsItems such as steel pipe, steel sections, and timber shall be segregated by length
and size and bundled in packs not exceeding 2,000 kg in weight. Each pack shall be
of one product type and shall be strapped with 25mm wide heavy-duty steel
strapping spaced at a maximum of 1500mm intervals. A minimum of three lengths of
timber with a minimum cross section of 100mm x 50mm shall be incorporated with the
bundle to form an integral base and facilitate handling by forklift.3.7
    
    Internal PackingAll internal packing must be biodegradable (i.e. cardboard or paper rather than
polystyrene or bubble wrap) to facilitate disposal on Lihir Island. Any
non-biodegradable packing may be returned to the Seller, with all associated
freight costs back-charged against the Sellers account.
 Section I  Part B Purchase Order Terms and Conditions
    
    30




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 4.
    
    Marking and Tagging of Merchandise
 4.1
    
    GeneralAll cases and fabricated pieces shall have the following marking stencilled on
with black paint using letters no smaller than five (5) cm high (in case of small
electric motors, reducers or pumps shipped open on skids, this last requirement
may be relaxed):
 
 When more than one package is being shipped under the same Purchase Order number,
each package shall be separately numbered and show the total number being
consigned, e.g. PACKAGE 1 of 5, PACKAGE 2 of 5, etc.Shipping marks shall be written in capital letters with letter height of not less
than 20 mm and shall be applied using either paint or indelible ink. Wherever
possible, marks shall be displayed at three different points of each shipping
package.All uncrated items shall be tagged as per the above shipping marks. Tagging shall
be done by means of an aluminium label (minimum size 7.5 cm x 5 cm) punched with
information and attached with corrosion resistant wire. Plastic waterproof
laminated tagging attached with corrosion resistant wire or locked plastic bands
will be accepted as an alternative. Note: The use of a tag may not be practical
for all items, in which case an alternate method of identification is by
stencilling or painting (fabricated items) and if this is not practical or good
practice (shafts, pulleys, machined parts, etc) then the identification shall be
by label with sunlight resistant indelible waterproof black ink letters. The label
shall be affixed with heavy-duty adhesive tape.When Merchandise is being shipped disassembled, all parts must be tagged with
EQUIPMENT NUMBER ___. In addition, each part must be numbered, i.e. Item No. ___
of ___(total number of parts for that assembly). Each part must be identified
with the ITEM NUMBER, which is detailed on the Sellers Certified Drawing.
 5.
    
    Packing & Shipping
 5.1
    
    All Suppliers TheSeller must:
 
    
    Place the Merchandise at the disposal of LGL at the time as provided in
the Purchase Order, at the point of delivery named or which is usual for
the delivery of such merchandise and for their loading on the conveyance
to be provided by LGL.
    
    Provide suitable packaging of the Merchandise so that all items will
arrive at the destination in an undamaged condition. And without
restricting the generality of the foregoing, the Seller shall pay
particular attention to Merchandise susceptible to damage from moisture
when stored for a period of time in a tropical climate. All crates must
be skid mounted, and all Merchandise weighing more than five (5) tonnes
must have lifting points and the centre of gravity
 Section I  Part B Purchase Order Terms and Conditions
    
    31




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 clearly marked.
    
    Give LGL reasonable notice as to when the Merchandise will be at its disposal.
    
    Markings specified on the Purchase Order shall be stencilled with
waterproof ink on at least two sides of the package. The case number
shall identify the individual package and also indicate total number of
packages in the shipment such as package 1 of 7, or 3 of 5, etc.
    
    No advertising or mark that indicates contents may appear on the package.
 5.2
    
    Overseas Suppliers OnlyIn addition to the above, the Seller must:
 
    
    Provide suitable packaging for Ocean Freight so that all items will
arrive at the destination in an undamaged condition.
    
    Render LGL every assistance in obtaining any documents which are issued
in the country of delivery and/or origin which LGL may require for the
purpose of exportation and/or importation.
 6.
    
    Spare PartsAll spare parts, in addition to the requirements for marking and tagging, shall be packed
separately and clearly identified as spares.Spare parts shall be packed in separate boxes/crates or containers and clearly marked
with an additional 75 mm white strip painted around the entire circumference of all
boxes/crates or containers. Spare parts must not be packed with the original equipment.
Failure to comply will result in delays in clearing the shipment ultimately affecting
prompt payment of invoice.7.
    
    Palletising of GoodsPallets shall be of export quality and non-returnable. Pallet dimensions shall be no
greater than 1150mm x 1150mm in plan area, and they shall be of suitable construction to
withstand 2000kg horizontal breaking force.Cardboard cartons packed on pallets must be shrink-wrapped with a 6mm thick sheet of
plywood placed on top of the cartons prior to shrink-wrapping.Tins and plastic pails packed on pallets shall have a 6mm thick sheet of plywood placed between
each layer, a 6mm thick top sheet of plywood, and be shrink-wrapped. Palletised packing shall be
limited to the following:
 
 Steel drums packed on pallets are to be strapped together with steel strapping.8.
    
    Special Requirements For Air freightGoods identified on the Purchase Order as requiring air freight shall be packed in
heavy-duty export quality triwall cardboard cartons with a gross weight that must not
exceed 30kg. Wherever possible, the cartons should not be larger than 300mm x 300mm x
300mm, and under no circumstances shall they be larger than 750mm x 750mm x 750mm. If
either the weight or size exceeds the above limits, the Seller shall contact LGL for
instructions.
 Section I  Part B Purchase Order Terms and Conditions
    
    32




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 In addition to the markings identified in Section 4, the words AIRFREIGHT ORDER must be
clearly marked in bold print next to the order number.Airfreight consignments shall meet all other requirements for shipment, packaging and
documentation identified elsewhere in this specification.9.
    
    Sub-SellersSub-Sellers are required to conform to all requirements and the Purchase Order Number
assigned by LGL is the number to be used by sub-suppliers where reference is made to a
Purchase Order.10.
    
    Additional InformationAny assistance or additional information required concerning marking and tagging of
equipment may be requested by e-mail: mopu@lglgold.com.
 Section I  Part B Purchase Order Terms and Conditions
    
    33




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 LGL
 Million Ounce Plant Upgrade (MOPU)
 EQUIPMENT SUPPLY TENDER
 Section I Part C
 Technical On-site Personnel Terms (Separate Purchase Order)
 INDEX
 1. Service Order Terms and Conditions
    
    
    352. Site
    
    
    353. Employee Replacement
    
    
    354. Transport
    
    
    355. Accommodation and Messing
    
    
    356. On-Site Facilities
    
    
    357. First Aid
    
    
    358. Reimbursable Sum
    
    
    369. Per Diem Rate (Working Time)
    
    
    3610. Daywork Sheets
    
    
    3611. Field Breaks
    
    
    3612. Back Charges
    
    
    37
 Section I  Part C Technical On-Site Personnel Terms
    
    34




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 1.
    
    Service Order Terms and Conditions
 1.1
    
    The Seller shall provide technical on-Site personnel (erection supervision,
specialists, or start-up personnel including any Sub-Contractors) in accordance with
LGLs Service Order terms and conditions (which are appended hereto) to assist with the
installation, inspection, testing, and commissioning of the Merchandise purchased from
the Seller under a Merchandise Supply Purchase Order. The following terms and conditions
are in addition to those set out in LGLs Service Order terms and conditions.
 2.
    
    Site
 2.1
    
    The Site is defined as Lihir Gold Limiteds operation on Lihir Island, New Ireland
Province, Papua New Guinea.
 3.
    
    Employee Replacement
 3.1
    
    Seller must replace at its own expense unsuitable technical on-Site personnel upon
reasonable and duly substantiated written request of LGL, including those dismissed from
the Site for cause or who terminate before the completion of the assignment without the
prior approval of the Seller and LGL.
 4.
    
    Transport
 4.1
    
    Sellers technical on-Site personnel must obtain approval from the designated LGL
representative, prior to travelling to Site. A travel request form and travel itinerary
is required for such approval.4.2
    
    Seller is responsible for all transportation of technical on-Site personnel to and
from their home base to Cairns, Australia. LGL will arrange transportation from Cairns to
the Site.4.3
    
    If Sellers technical on-Site personnel arrive at the Site during working hours, they
are expected to work that day.
 5.
    
    Accommodation and Messing
 5.1
    
    LGL will supply accommodation and meals free of charge for Sellers technical on-Site
personnel while they are on Site.
 6.
    
    On-Site Facilities
 6.1
    
    LGL will provide necessary Site facilities including temporary offices, site
ablutions, and limited telephone access.6.2
    
    Seller must provide, at its cost, any necessary tools or special equipment required
by the technical on-Site personnel.
 7.
    
    First Aid
 7.1
    
    A First Aid Centre is located on the Site and will be made available to Sellers
technical on-Site personnel who, while engaged in the execution of the Works, become ill
or sustain injury.
 Section I  Part C Technical On-Site Personnel Terms
    
    35




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 7.2
    
    Should a medical situation require an evacuation from Site, LGL will make the
appropriate arrangements for the evacuation on behalf of Seller to Cairns, Australia. The
costs of any such evacuation will be the responsibility of Seller.
 8.
    
    Reimbursable Sum
 8.1
    
    LGL will pay the Seller the Reimbursable Sum detailed in the Purchase Order at the
beginning and at the end of the Sellers on-Site technical personnel assignment at the
Site. The Reimbursable Sum includes:
 
    
    Economy class air fare from the point of origin to Cairns, Australia or
return, depending whether it is for mobilisation or demobilisation, for
each technical on-Site personnel;
    
    Salary or wages while travelling to Cairns up to a maximum of 10 hours per day;
    
    Salary or wages for the day of travel from Cairns to Lihir Island or
return, PNG to a maximum of 10 hours per day
    
    One nights overnight accommodation in Cairns, together with associated meals
    
    Any incidental expenses for medical tests and police clearances incurred to
allow LGL to obtain a PNG visa for the technical on-Site personnel
 9.
    
    Per Diem Rate (Working Time)
 9.1
    
    The quoted Per Diem Rate of hire shall only be applicable to days actually worked on
the Site (and pro-rata hours where the technical on-Site personnel are not available for
work).9.2
    
    The daily rate is inclusive of 10 hours per day, 7 days per week including Saturdays,
Sundays and Public Holidays. Hours worked in excess of 10 hours per day shall be prorated
at the Per Diem Rate. Sick time hours will be the responsibility of Seller.9.3
    
    The day of arrival and departure are deemed included in the Reimbursable Sum, per
above.
 10.
    
    Daywork Sheets
 10.1
    
    LGL will pay the daily rate for the Sellers technical on-Site personnel at the
daily rates detailed in the Purchase Order for days actually worked at site, or on a
pro-rata basis if the on-Site personnel are not available for work for part or all of a
day or work more than 10 hours per day at LGLs request.10.2
    
    It is the responsibility of Sellers technical on-Site personnel to obtain an LGL
Daywork sheet on arrival at the Site.10.3
    
    Daywork sheets must be completed by the Sellers technical on-Site personnel daily
for days (or hours) worked in accordance with clause 10.1 and be signed by the designated
LGL representative. The original signed Daywork sheets must accompany the Sellers
invoice to enable LGL to make payment.
 11.
    
    Field Breaks
 11.1
    
    Seller will be expected to rotate technical on-Site personnel on a work roster, if
required.
The standard LGL roster is 28 days on Site, followed by 14 days field break. No
guarantee for duration on Site of technical on-Site personnel is given. Pro-rata
entitlements do not apply and work assignments of less than 28 days are not
subject to field break provision.11.2
    
    Field break flights will be provided by LGL in economy/excursion class. No payment will be
 Section I  Part B Purchase Order Terms and Conditions
    
    36




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 made for travelling time for field breaks.11.3
    
    If Sellers technical on-Site personnel who are entitled to field breaks, elect to
take their field break in a location other than the point of origin, LGL will reimburse,
upon presentation and approval of an expense report supported by original receipts for
travel and hotel accommodation, up to the value of an economy/excursion airfare to and
from their place of origin.
 12.
    
    Back Charges
 12.1
    
    Seller must give its technical on-Site personnel the authority to accept backcharges
for remedial works carried out to the Merchandise supplied under a separate Merchandise
Supply Purchase Order.
 Section I  Part B Purchase Order Terms and Conditions
    
    37




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 Appendix A Service Order Terms and Conditions
 1. General
    2. Contractors Obligations
             3. Equipment
   4. Representatives
  5. Defects
  6. Variations
           Section I  Part C Technical On-Site Personnel Terms
    
    38




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 7. Payments
            8. Regular meetings
  9. Training and Localisation
    10. Intellectual Property
  11. Insurance
           Section I  Part B Purchase Order Terms and Conditions
    
    39




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 12. Indemnity
    13. Taxation
                      14. Termination
     Section I  Part B Purchase Order Terms and Conditions
    
    40




---



##### 



LGL EQUIPMENT SUPPLY TENDER
                     15. Dispute Resolution
         16. Force Majeure
  17. Confidentiality
  Section I  Part B Purchase Order Terms and Conditions
    
    41




---



##### 



LGL EQUIPMENT SUPPLY TENDER
  18. No Assignment or Subcontracting
   19. General
             20. Notices
      21. Definitions and Interpretation
  Principal
 Contractor
 Business Day
 Claim
 Commencement Date
 Due Date
 Documents
 including
 Income Tax
 Insolvency Event
      Section I  Part B Purchase Order Terms and Conditions
    
    42




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 Intellectual Property Right
 Location
 Purchase Order
 Purchase Order Price
 Reimbursable Items
 Services
 Service Order Instructions Page
 Specification
 Tax
 Version 2A as at 15 May 2008
 Section I  Part B Purchase Order Terms and Conditions
    
    43




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 Appendix B Service Order Instructions
 CONTRACTORS NAME To be specified (The Contractor)
 ABN/COMPANY NUMBER: To be specified
 ADDRESS: To be specified
 FACSIMILE: To be specified
 PRINCIPALS NAME (The Principal)
 ABN/COMPANY NUMBER:
 ADDRESS:
 FACSIMILE: (
 SERVICES
 COMMENCEMENT DATE
 DUE DATE
 FEES
 To be specified
 To be specified
 To be specified
 
 REIMBURSABLE ITEMS:
 Principals Representative: To be specified
 To be specified
 Contractors Representative: To be specified
 To be specified
 Accepted by the Principal:Name:
    
    
    
    
    
    Title:Signature:
    
    
    
    
    
    Date:Accepted by the Contractor:Name:
    
    
    
    
    
    Title:Signature:
    
    
    
    
    
    Date:
 Section I  Part C Technical On-Site Personnel Terms
    
    44




---



##### 



LGL
 Million Ounce Plant Upgrade (MOPU)
 Equipment Supply Tender
Section II
 Site Conditions and
Equipment and Material Standards
 index
 Scope
    
    
    11.1
    
    General
    
    
    1Site Conditions
    
    
    11.2
    
    Location
    
    
    11.3
    
    Climate
    
    
    1Standards, Codes and Regulations
    
    
    11.4
    
    Statutory
    
    
    11.5
    
    Technical Specifications
    
    
    11.6
    
    Drawing Conventions
    
    
    21.7
    
    Labeling Conventions
    
    
    31.8
    
    Project Documentation1.9
    
    Correspondence
    
    
    4Appendix A  List of Standard Specifications
    
    
    6
 Section II Site Conditions and Equipment and Material Standards
    
    1




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 SCOPE
 1.1
    
    GeneralThis document provides information relating to site conditions, climate, and standards
that are relevant to the supply of goods and equipment for use on the Lihir site.
 SITE CONDITIONS
 1.2
    
    LocationThe Lihir plant is located on Lihir Island which in the New Ireland province of Papua New
Guinea and is approximately 3 degrees south of the equator.
 1.3
    
    ClimateThe Lihir plant site is located in a coastal, tropical environment with temperatures
ranging from a minimum of 19.5 oC to a maximum of 34.0 oC, and
annual rainfall ranging from a minimum of 2600 mm to a peak of 8400 mm over 20 years of
record. The plant site and associated infrastructure lie within 80 m of sea level.There is no strong seasonal pattern to the climate, with temperature and monthly rainfall
remaining relatively uniform throughout the year. Temperature averages 27.0 oC
while average annual rainfall is in the order of 3900-4000 mm/year.Low rainfall conditions appear to be driven by Pacific El Nino events, with the worst
periods of drought generally recorded in August-November for site conditions.
 STANDARDS, CODES AND REGULATIONS
 The Tenderer is not required to depart from its standard design or specification, but
significant non-fundamental differences between its product and the requirements of the
Tender Documents must be explained in its Tender. Where no differences are explained, the
Tenderer undertakes to supply equipment and/or materials in accordance with the standards
and specifications referenced in the Tender Documents.
 1.4
    
    StatutoryEquipment and installation shall conform to the current requirements, rules and
regulations of the relevant PNG authorities having jurisdiction over the Project site.Where conflict arises between specifications and the applicable standards, the standards
shall prevail unless this specification requires a higher or more rigorous standard to be
applied.All pertinent standards including those for detail components shall be applicable even if
omitted from the specifications or drawings.
 1.5
    
    Technical SpecificationsAll design and construction shall comply with the relevant standard specifications listed
in Appendix A  List of Standard Specifications.
 Section II Site Conditions and Equipment and Material Standards
    
    1




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 1.6
    
    Drawing Conventions1.6.1
    
    Relevant SpecificationsTo ensure consistency with existing site documentation, all project drawings shall comply
with the Standard Specification for AutoCAD Drawings (Specification A002). Key
requirements are outlined in Sections 1.6.2 to 1.6.5 below.1.6.2
    
    Drawing StructureAll drawings shall be generated using the LGL standard drawing sheet and drawing
attributes provided. These attributes must not be altered without the prior written
approval of LGL, although Vendors / Consultants may add their own drawing number in a
separate title block. Except as otherwise indicated by Specification A002 (for Electrical
drawings), project drawing numbers shall be of the form AAAA-B-CCCC where AAAA is a three
or four digit facility number defining the appropriate element of the process plant, B is
a single character discipline code identifying the engineering discipline associated with
the drawing, and CCCC is a four digit, sequential sheet number by facility and discipline.The relevant discipline codes for the MOPU project are identified in Specification A002.
Sheet numbers shall be progressively allocated by the Vendor from a batch of sequential
numbers issued by LGL. Unless otherwise advised, all sheet numbers for the MOPU project
shall be 4 digits long and commence with the number 2.1.6.3
    
    Project TitleblockEach drawing title shall comprise 3 to 4 lines as follows:
 
    
    Line 1 (Folio Title): LGL Process Plant  Lihir Island or LGL Geothermal Power
Supply  Lihir Island as appropriate.
    
    Line 2 (Facility Name): Relevant facility name as defined by Appendix A.
    
    Lines 3/4 (Drawing Description): Relevant drawing description to clearly describe drawing content
and distinguish each drawing from other drawings in the project set.
 Until such time as a
drawing is revised to As Constructed the Project ID Code (MOPU) shall be included in the
drawing number box on the titleblock as a work-in-progress flag. This flag shall be
removed from each and every drawing upon completion of As Constructed revisions.1.6.4
    
    Electronic FilenamesElectronic drawing filenames shall be of the form MOPU-AAAABCCCC_D.dwg where AAAABCCCC
represents a contraction of the drawing number defined by Section 1.6.2 and D represents
the current drawing revision number, as per the following:
 Drawing Number
    
    Electronic Filename1341-C-2046 Rev 2
    
    MOPU-1341c2046_2.dwg
  Section II Site Conditions and Equipment and Material Standards
    
    2




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 1.6.5
    
    Electronic FormatsAll AutoCAD drawing files shall be formatted for full compatibility with AutoCAD Lite 2004
and AutoCAD 2004.Issue of drawings for review or comment shall be done as pdf documents formatted to A3
size to facilitate ready distribution and printing. Drawings supplied in pdf format shall
be fully compatible with Adobe Reader 8.0 and Adobe Acrobat Professional 6.0.Transmittal of AutoCAD drawing files shall be complete with all XRef files referenced by
the drawings, included with the drawing or the drawing package. All plot style tables &
pen assignments utilised by the Consultant, shall be supplied with the transmittal, so
that correct printing of the AutoCAD files can be undertaken by LGL.1.7
    
    Labeling Conventions1.7.1
    
    Relevant SpecificationsEquipment, cabling and piping shall be labelled in accordance with the Standard
Specification for Vendor Documentation (Specification A003), Standard Specification for
Piping Information (Specification A005) and Standard Specification for Process Instrument
Loop Numbering (Specification A007). Key requirements are outlined in Sections 1.7.2 to
1.7.4 below.1.7.2
    
    Equipment NumberingEach new item of equipment shall be identified by a unique ID number of the form AABBBB
where AA is a two-character equipment code and BBBB is a four digit numeric counter
commencing with the number 2 or 3 to identify the MOPU project. Each equipment
sub-assembly with a separate electrical drive shall be allocated its own unique equipment
number of the form AABBBBC where AABBBB is the equipment number identified for the unit
as a whole, and C is a sequential, alphabetic suffix to identify individual sub-assembly
elements.The principal equipment numbers for the project are identified in the Project Equipment
List. Any additional equipment numbers shall be allocated by the Vendor / Consultant from
a batch of counter numbers provided by LGL. The allocation of numbers shall be carried out
in such a way that equipment items grouped together physically in the final plant and/or
grouped together on the P&ID drawings shall have similar or closely sequenced numbers.1.7.3
    
    Loop NumberingInstrumentation shall be identified in accordance with the conventions shown on standard
Drawing 130-FP-002. Loop numbers shall be of the form AABBBB where AA is the instrument
code as per Drawing 130-FP-002 and BBBB is a 4 digit sequential counter that is unique
compared to both other loop numbers and equipment numbers.An initial loop number database for the project is identified in the Loop Number Register.
Any additional loop numbering shall be labelled by the Vendor / Consultant from a batch of
sequential counter numbers provided by LGL. Loop numbering shall be carried out in such a
way that instrument items grouped together physically in the final plant and/or grouped
together on the P&ID drawings, shall have closely sequenced numbers.
 Section II Site Conditions and Equipment and Material Standards
    
    3




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 1.7.4
    
    Pipe LabelingAll new pipes and pipe branches shall be identified by an ID label of the form
AAA-BB-CCCC-DDDD-EE where AAA is the nominal pipe diameter in mm, BB is a code describing
the fluid carried by the pipe, CCCC is the four digit facility number, DDDD is a unique 4
digit sequential counter, and EE is a code representing the pipe material specification.
Relevant fluid description and pipe specification codes are identified in Specification
A005.The principal piping elements for the project are identified in the Project Line List. Any
additional pipes shall be labelled by the Vendor / Consultant from a batch of sequential
counter numbers provided by LGL. The allocation of counter numbers shall be carried out in
such a way that pipes grouped together physically in the final plant and/or grouped
together on the P&ID drawings, shall have similar or closely sequenced numbers.1.8
    
    Project DocumentationAll project documentation including reports, datasheets, databases, drawing lists,
purchase information, IOM documentation, etc., shall comply with the Project Instructions,
Standard Specification for Vendor Documentation (Specification A003) and Standard
Specification for Piping Information (Specification A005).In particular:
 
    
    Information shall be collated in the identified formats to facilitate ready
incorporation into other project databases.
    
    Each document shall be cross-referenced against all relevant equipment items to
enable database searching by equipment number.
    
    All pdf documents of greater than 10 pages length shall include interactive bookmarks
to allow ready navigation to each item in the document table of contents.
 1.9
    
    Correspondence1.9.1
    
    GeneralFor ease and currency of communication, project correspondence will be handled by email
wherever possible. Without exception, every email shall be structured as follows:
 
    
    The email shall be addressed to both the project email address (MOPU@lglgold.com) and the
intended recipient of the email.
    
    The caption in the email subject line shall be of the form AAAA-BBBB-C-DDD-EEEE,
where AAAA is the Project ID Code, BBBB is the relevant four character work package number
(e.g. Contract Number or Purchase Order number), C is single character code identifying
the email originator (as identified below), DDD is a sequential correspondence counter for
the particular Contract, and EEEE is a descriptive title (of as many characters as
required) to clearly identify and distinguish the email subject.
 Emails from LGL shall have the originator code L, emails from the Design Coordinator shall have the originator
code D and emails from all other Consultants, Contractors or Vendors shall have the
originator code C. Each organisation assigned to the project shall maintain their own
separate correspondence counter.
 Section II Site Conditions and Equipment and Material Standards
    
    4




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 1.9.2
    
    Formal Transmittal of InformationConsultants / Vendors shall ensure that all formal transmittal of drawings and
documentation to LGL, whether by email, disk or hardcopy, is accompanied by an electronic
transmittal form in Microsoft EXCEL that identifies the following:
 
    
    A sequential transmittal number.
    
    The electronic filename and a description of each drawing /
document being transmitted. Suitable descriptions would include the last two lines of a
drawing titleblock or a brief summation of document purpose or content.
 Any covering email shall also include the word Transmittal in the descriptive
title component of the subject line.The purpose of these requirements is to enable ready collation of information from varied
sources into a comprehensive project database. Transfers of drawings and documentation
which do not meet these criteria will be treated as issue for information purposes only
and the relevant drawings / documents will not be registered in the project database.In the absence of any other agreed format for the transmittal form, the Standard LGL
Transmittal (Specification A008) shall be utilised.
 Section II Site Conditions and Equipment and Material Standards
    
    5




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 APPENDIX A  LIST OF STANDARD SPECIFICATIONS
 Administrative Specifications
 Spec. Number
    
    TitleA001
    
    Project InstructionsA002
    
    Specification for AutoCAD DrawingsA003
    
    Specification for Vendor DocumentationA004
    
    Register Project InformationA005
    
    Specification for Piping InformationA006
    
    Standard Format for Piping InformationA007
    
    Specification for Loop NumberingA008
    
    Standard Transmittal Form
 Technical Specifications  Design
 Spec. Number
    
    TitleE100
    
    General Electrical SpecificationE101
    
    DCS and Control System SpecificationD002
    
    Civil & Structural Design CriteriaD003
    
    Mechanical Design CriteriaD004
    
    Piping Design Criteria
 Technical Specifications  Construction
 General
 Spec. Number
    
    TitleG001
    
    Specification for Packaging and Shipping
 Electrical
 Spec. Number
    
    TitleE001
    
    Specification for Low Voltage Motor Control CentresE002
    
    Specification for HV SwitchgearE003
    
    Specification for Transportable SwitchroomsE004
    
    Specification for TransformersE005
    
    Specification for MotorsE006
    
    Instruments and Field DevicesE007
    
    LV CableE008
    
    HV CableE009
    
    Variable Speed Drives and Soft Starters
 Civil and Structural
 Spec. Number
    
    TitleS001
    
    Specification for Bulk EarthworksS002
    
    Specification for PilingS003
    
    Specification for General Civil WorksS004
    
    Specification for Concrete
 Section II Site Conditions and Equipment and Material Standards
    
    6




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 Civil and Structural (Contd)
 Spec. Number
    
    TitleS005
    
    Specification for Concrete MasonryS006
    
    Specification for Structural SteelworkS007
    
    Specification for Cladding
 Mechanical and Piping
 Spec.Number
    
    TitleM001
    
    Specification for AgitatorsM002
    
    Specification for Cranes, Monorails and HoistsM003
    
    Specification for Compressed Air ServicesM004
    
    Specification for Conveyor EquipmentM005
    
    Specification for Fans and BlowersM006
    
    Specification for InstrumentationM007
    
    Specification for PipingM008
    
    Specification for Protective CoatingsM009
    
    Specification for PumpsM010
    
    Specification for SignageM011
    
    Specification for Specialty Piping ItemsM012
    
    Specification for TanksM013
    
    Specification for ValvingM100
    
    Specification for Installation of Mechanical Plant
 Section II Site Conditions and Equipment and Material Standards
    
    7




---



##### 



MOPU-1003
  
 Table of Contents
 1 SCOPE
    
    
    12 GENERAL REQUIREMENTS
    
    
    23 TECHNICAL REQUIREMENTS
    
    
    24 SURFACE PROTECTION
    
    
    45 ASSEMBLY AND TESTING
    
    
    46 TENDER SUBMISSION INFORMATION
    
    
    47 SUPPLY SCHEDULE
    
    
    4
 Attachments
 RevisFilename
    
    File type
    
    ion
    
    File Description362-ME-103-00-001
    
    Pdf
    
    
    1
    
    
    Carbon Steel Autoclave Fabrication Specification362-MA-103-00-001
    
    Pdf
    
    
    0
    
    
    High Temperature Carbon Steel Painting Specification362-ME-503-00-001
    
    Pdf
    
    
    1
    
    
    Autoclave Shell, General Arrangement Drawing362-ME-503-00-002
    
    Pdf
    
    
    1
    
    
    Pressure Leach Autoclave, Nozzle Seal Ring Details
Drawing362-ME-503-00-003
    
    Pdf
    
    
    1
    
    
    Pressure Leach Autoclave, Nozzle Details Drawing
(Sheets 1, 2, & 3)362-ME-503-00-004
    
    Pdf
    
    
    0
    
    
    Pressure Leach Autoclave, Nozzle Liner Details Drawing
(Sheets 1 & 2)362-ME-504-00-001
    
    Pdf
    
    
    0
    
    
    Pressure Leach Autoclave, Weld Overlay Details
DrawingMOPU-0000-01-S
    
    Pdf
    
    
    01
    
    
    Project ReferenceProject Reference




---



##### 



DESIGN, MANUFACTURE & SUPPLY OF
    
    Page 1 of 6Pressure Autoclave
 1 SCOPE
    1.1 WORK INCLUDED
  
    
    Design and Supply of one (1) Pressure Leach Oxidation Vessel (herein
referred to as Pressure Autoclave) as described in the above referenced and
attached specifications complete with nozzles, blanks, nuts, bolts, and support
bases.
    
    Recommended procedures for transportation and lifting the Pressure Autoclave.
    
    Provision of preliminary and final Installation, Operation & Maintenance
Manuals including parts manuals (3 copies of each).
    
    Provision of a Manufacturers Data Report (MDR) for all items detailed
herein. The MDR(s) shall include, as a minimum, design calculations, detail
drawings, welding procedures, inspection and test plans (ITPs), and welding
qualifications.
    
    Provision of Design registration documentation and provision of
sufficient information to allow statutory registration of the vessel (in
accordance with Queensland, Australia guidelines). LGL to register the
vessel.
    
    Shop assembly and testing of the Pressure Autoclave.
    
    Provision of temporary storage of the completed Pressure Autoclave for a
nominal duration of eight (8) weeks.
 1.2 WORK NOT INCLUDED
  
    
    Sea transportation, site unloading, site assembly and installation.
    
    Internal lining of the Pressure Autoclave.
    
    Supply and installation of pipework, agitators, valves to be connected.
    
    Remote indicators, horns and process interlocks.




---



##### 



DESIGN, MANUFACTURE & SUPPLY OF
Pressure Autoclave
    
    Page 2 of 6
 
    
    Supply and installation of all power, control and instrumentation cabling.
    
    Lubricants other than initial oils/greases applied during shop assembly.
    
    Statutory (classified plant) registration of the Pressure Autoclave.
 2 GENERAL REQUIREMENTS
 
    
    All materials of construction for this equipment, components and
accessories shall be new, suitable for service in the environments described in
Sections 3.0 and 4.0 and meet the requirements of applicable standards and codes.
    
    Equipment shall only be disassembled for shipping to the extent required
for safe transport of components and/or to meet shipping weight limitations.
    
    The fabricated Pressure Vessel (complete) shall have four lifting points.
The location of these lifting points shall be advised by the Tenderer. Consideration
shall be given to the location of these lifting points, in relation to any fixed or
temporary stands / saddles. Tenderers are requested to provide recommendations
relating to the positioning and number of lifting points on the vessel.
    
    The tenderer shall advise the number of permanent saddles / stands
required for this vessel. When designing stand / saddle arrangement, the
manufacturer shall consider placement of vessel on site during the transport and
installation phases. Recommendations shall be submitted with the tender submission
outlining the tenderers proposed layouts, noting previous experiences / knowledge
gained pertaining to stand / saddles arrangements.
    
    The tenderer shall supply a separate line item price for LGLs
consideration, for the supply of extra stands / saddles at the offered (standard)
height.
    
    The tenderer shall supply a separate line item price, should LGL require
any changes in the height of the offered stand / saddles. Tenderers shall stipulate
price basis within their offer.
    
    The tenderer shall supply pricing Ex Works, with a separate optional line
item price for FOB, nearest Sea port to the manufacturing facility. Recommendations
shall be provided by the tenderer regarding lifting points, and transportation
methodology with their submission.
    
    The tenderer shall supply pricing for optional perpendicular nozzles, for
the N2 nozzles (refer general arrangement drawing). Vertical (hillside) nozzles
shall be offered as standard with the tenderers submission.
    
    The tenderer shall supply information regarding nominal thickness proposed
for this Pressure Autoclave, with the tenderers submission.
 3 TECHNICAL REQUIREMENTS
 
    
    The Pressure Autoclave shall be identified by Equipment Number 1343-AC2004, and
shall be tagged accordingly. Identification plates in accordance with the relevant
codes shall be installed by the vendor.




---



##### 



DESIGN, MANUFACTURE & SUPPLY OF 
Pressure Autoclave
    
    Page 3 of 6
 
    
    The Pressure Autoclave shall be fabricated, in accordance with the
attached specifications.
    
    The Pressure Autoclave shall meet the performance criteria nominated in
the attached Specifications.
    
    All materials of construction and surface treatments for the autoclave
shall be in accordance with the attached specifications. Notwithstanding this, the
Pressure Autoclave materials shall be suitable for end use in a tropical
environment.
    
    The Pressure Autoclave design shall feature all conveniences for
maintenance, assembly, disassembly and installation, such as platforms, ladders,
handrailing, lifting lugs, etc.
    
    The Pressure Autoclave shall be designed in accordance with PNG Standard
1001 Part 4 1982 and API 650 for Earthquake design. The Peak Ground acceleration
factor, 30 year design life, with a probability of Exceedance of 50% (1/1,500) -
Firm ground = 0.23 and Soft ground = 0.20. The lateral coefficient shall be derived
from the PNG code stated above, and applied to API 650
 Technical Summary of the Pressure Autoclave:
 Item Description
    
    Unit
    
    RequirementLength (Tan to Tan)
    
    metres
    
    44.82Internal diameter (Steel)
    
    metres
    
    5.6Vessel Volume (normal fluid fill)
    
    m3
    
    858Head Type
    
    
    
    2:1 ASME EllipticalDesign Operating Pressure
    
    kPa (abs)
    
    3100Design Operating Temperature
    
    oC
    
    236Agitator Nozzle Diameter
    
    millimetres
    
    800Agitator Nozzle construction
    
    
    
    As described in the attached drawings.Membrane required
    
    
    
    Preparation for Site works
in accordance with specifications
listed required.Number of Permanent Supports / Saddles
    
    Each
    
    3 (to be confirmed by Tenderer)Number of Transport
Supports / Saddles (in
addition to permanent
supports)
    
    Each
    
    2 (to be confirmed by Tenderer)Number of Lifting
Points
    
    Each
    
    4 (to be confirmed by Tenderer)




---



##### 



DESIGN, MANUFACTURE & SUPPLY OF
    
    Page 4 of 6Pressure Autoclave
 4 SURFACE PROTECTION
   5 ASSEMBLY AND TESTING
    6 TENDER SUBMISSION INFORMATION
  
    
    Details of any deviations from the Specifications.
 7 SUPPLY SCHEDULE
  Activity
    
    Time After Contract AwardPreliminary fabrication schedule including
materials procurement, submitted to LGL for
review.Preliminary fabrication drawings submitted to
LGL for review.Submission to LGL of sufficient details to enable
statutory registration of the Pressure Autoclave.




---



##### 



DESIGN, MANUFACTURE & SUPPLY OF
    
    Page 5 of 6Pressure Autoclave
 Activity
    
    Time After Contract AwardProvision of Preliminary Installation, Operation &
Maintenance Manual for ReviewProvision of Final Installation, Operation &
Maintenance Manual (incl. Parts Manual)Supply of Fabricated Autoclave to Port of
Loading (Ex Works, Manufacturer yard)Supply of Fabricated Autoclave to Port of
Loading (FOB)




---



##### 



MILLION OUNCE PLANT UPGRADE
PROJECT
 PROJECT REFERENCE
 ApprovedRevision
    
    Date
    
    Author
    
    By
    
    Comments01
    
    17/6/08
    
    CW
    
    
    
    Update of cross references in Sections 5.1 and 6.300
    
    14/05/08
    
    CW
    
    
    
    Initial Project Issue




---



##### 



1 INTRODUCTION
    
    
    32 PROJECT DETAILS
    
    
    32.1
Title
    
    
    32.2 Project id Code
    
    
    32.3 Project Address
    
    
    33 GENERAL INFORMATION
    
    
    34 PROJECT DEFINITION
    
    
    35 PROJECT STRUCTURE
    
    
    35.1 Facility Numbering
    
    
    36 DRAWING CONVENTIONS
    
    
    46.1 Relevant Specifications
    
    
    46.2 Drawing Structure
    
    
    46.3 Project Titleblock
    
    
    46.4 Electronic Filenames
    
    
    46.5 Electronic Formats
    
    
    57 LABELING CONVENTIONS
    
    
    57.1 Relevant Specifications
    
    
    57.2 Equipment Numbering
    
    
    57.3 Loop Numbering
    
    
    57.4 Pipe Labeling
    
    
    68 PROJECT DOCUMENTATION
    
    
    69 CORRESPONDENCE
    
    
    69.1 General
    
    
    69.2 Formal Transmittal of Information
    
    
    710 TECHNICAL SPECIFICATIONS
    
    
    711 SURVEY DATUMS
    
    
    712 COMMUNITY PROVISIONS
    
    
    813 SOIL GEOCHEMISTRY
    
    
    814 EARTHWORKS DESIGN CONSTRAINTS
    
    
    814.1 Sourcing of Borrow Material
    
    
    814.2 Disposal of Excavated Spoil
    
    
    915 ECONOMIC COMPARISONS
    
    
    9APPENDIX A LIST OF FEASIBILITY STUDY DESIGN OUTPUTS
    
    
    10APPENDIX B PROJECT FACILITY NUMBERS
    
    
    11APPENDIX C LIST OF STANDARD SPECIFICATIONS
    
    
    13
 Page 2 of 14




---



##### 



1 INTRODUCTION
  2 PROJECT DETAILS
 2.1 TITLE
  LGL
 Million Ounce Plant Upgrade Project
 2.2 PROJECT ID CODE
 MOPU
 2.3 PROJECT ADDRESS
  
  3 GENERAL INFORMATION
  4 PROJECT DEFINITION
  5 PROJECT STRUCTURE
 5.1 FACILITY NUMBERING
   Page 3 of 14




---



##### 




    
    Process piping runs (and associated equipment) between facilities shall be labelled
with the facility number of the source of flow
    
    Equipment and associated piping runs for compressed air, reagent and water
utilities shall be labelled with the facility number of that utility irrespective
of location in the plant.
 6 DRAWING CONVENTIONS
 6.1 RELEVANT SPECIFICATIONS
  6.2 DRAWING STRUCTURE
   6.3 PROJECT TITLEBLOCK
     6.4 ELECTRONIC FILENAMES
  Page 4 of 14




---



##### 



Drawing Number
    
    Electronic Filename1341-C-2046 Rev 2
    
    MOPU-1341c2046_2.dwg
  6.5 ELECTRONIC FORMATS
    7 LABELING CONVENTIONS
 7.1 RELEVANT SPECIFICATIONS
  7.2 EQUIPMENT NUMBERING
   7.3 LOOP NUMBERING
  Page 5 of 14




---



##### 



7.4 PIPE LABELING
   8 PROJECT DOCUMENTATION
  
    
    Information shall be collated in the identified formats to facilitate ready
incorporation into other project databases.
    
    Each document shall be cross referenced against all relevant equipment items to
enable database searching by equipment number.
    
    All pdf documents of greater than 10 pages length shall include interactive
bookmarks to allow ready navigation to each item in the document table of contents.
 9 CORRESPONDENCE
 9.1 GENERAL
  
    
    The email shall be addressed to both the project email address (MOPU@lglgold.com)
and the intended recipient of the email.
    
    The caption in the email subject line shall be of the form AAAA-BBBB-C-DDD-EEEE,
where AAAA is the Project ID Code, BBBB is the relevant four character work package
number (eg Contract Number or Purchase Order number), C is single character code
identifying the email originator (as
 Page 6 of 14




---



##### 



9.2 FORMAL TRANSMITTAL OF INFORMATION
  
    
    A sequential transmittal number.
    
    The electronic filename and a description of each drawing / document being
transmitted. Suitable descriptions would include the last two lines of a drawing
titleblock or a brief summation of document purpose or content.
    10 TECHNICAL SPECIFICATIONS
  11 SURVEY DATUMS
  Coordinates and
    
    AMG CoordinatesParameter
    
    RL to Lihir Grid
    
    and RLEasting
    
    
    11 843.12
    
    
    
    461 842.3Northing
    
    
    5 030.31
    
    
    
    9 655 030.1RL
    
    
    18.50
    
    
    
    18.60
   Page 7 of 14




---



##### 



12 COMMUNITY PROVISIONS
  
    
    General earthworks and drainage construction.
    
    Construction of culverts, gabions and other site works.
    
    Bending of rebar for concrete works.
    
    General concrete construction for minor slabs and footings.
    
    Supply of pre-cast concrete units.
    
    Prefabrication of pipe spools.
    
    Construction of buried piping.
 13 SOIL GEOCHEMISTRY
  
    
    pH 5.4
    
    Chloride concentration of 50-60 mg/kg Cl
    
    Sulphate concentration of 200 mg/kg SO4
 14 EARTHWORKS DESIGN CONSTRAINTS
 14.1 SOURCING OF BORROW MATERIAL
    Page 8 of 14




---



##### 



14.2 DISPOSAL OF EXCAVATED SPOIL
  15 ECONOMIC COMPARISONS
  
    
    Nominal 25 year life;
    
    7.5% discount rate;
    
    US$0.13/kWh marginal power cost;
    
    Robust evaluation of differential equipment availability and utilisation;
    
    Robust evaluation of differential maintenance costs.
 Page 9 of 14




---



##### 



Appendix A List of Feasibility Study Design Outputs
 Volume
    
    Description2.3
    
    Project Summary3.3.1
    
    Project Constructability Plan3.3.2
    
    Crushing, Conveying and Stockpile Summary Report3.3.3
    
    Grinding Summary Report3.3.4
    
    Oxygen Plant Summary Report3.3.5
    
    Pressure Oxidation Summary Report3.3.6
    
    Thickening / Mill Water Summary Report3.3.7
    
    NCA Summary Report3.3.8
    
    Tailings Summary Report3.3.9
    
    Electrical Summary Report3.3.10
    
    Raw Water Summary Report3.3.11
    
    Treated Water Summary Report3.3.12
    
    Seawater Summary Report3.3.13
    
    Piping Summary Report3.3.14
    
    Feasibility Study Drawings
 Page 10 of 14




---



##### 



Appendix B Project Facility Numbers
 Facility
    
    Facility Name
    
    Facility Description1314
    
    Primary Crushing
    
    New crushing plant for the MOPU project
including crusher discharge conveyor1315
    
    Primary Conveying
    
    New primary conveying system for the
MOPU project including any crossovers to
the existing primary conveying system.1316
    
    Ore Stacking
    
    New stacking conveyor for the MOPU
project1325
    
    Ore Reclaim
    
    Ore reclaim facilities for HGO Grinding and
Classification Circuit No 2.1326
    
    Grinding & Classification
    
    HGO Grinding and Classification Circuit No
2.1341
    
    Grind Thickening
    
    New grind thickening facilities.1342
    
    Pre-Oxidation Storage
    
    All pre-oxidation infrastructure including
existing facilities.1343
    
    Pressure Oxidation
    
    All pressure oxidation infrastructure
including existing facilities.1345
    
    CCD Wash Thickening  Train 1
    
    CCD wash thickening facilities for Train 1.1349
    
    CCD Wash Thickening  Train 2
    
    CCD wash thickening facilities for Train 2.1351
    
    Neutralisation, Cyanidation and
Adsorption
    
    All Neutralisation, Cyanidation and
Adsorption facilities including both NCA
Circuit No 1 and NCA Circuit No 2.1361
    
    Gold Recovery and Carbon
Regeneration
    
    All gold recovery and carbon regeneration
facilities including existing infrastructure.1391**
    
    Plant Area Services
    
    Mill water pumps and distribution piping.1392
    
    Plant Air Systems
    
    All plant air systems and distribution piping
including existing infrastructure.1393
    
    Process Control System
    
    All Process Control Systems including
existing infrastructure.1396
    
    Steam Facility
    
    Installation / upgrade of steam boilers or
heat recovery units for the express purpose
of process steam generation, as well as
steam distribution piping for both high
pressure (HP) and low pressure (LP) steam
services.1397
    
    Plant Site Drainage
    
    Installation / upgrade of general site
drainage works including site grading,
catchment drains, drainage control bunding,
etc.Any drainage works involving excavation or
profiling of roads shall be separately
covered under facility 1398.1398
    
    Plant Site Roads
    
    All roadworks within the plant site including
installation / upgrade of utility and piping
culverts and installation / upgrade of road
drainage works.1410
    
    Reagent Handling
    
    All reagent supply and handling systems
including existing infrastructure.1420
    
    Lime Production and Handling
    
    All lime supply and handling systems
including existing infrastructure.1560
    
    New Oxygen Plant
    
    New oxygen plant for the MOPU project.1611
    
    Tails Collection System
    
    Collection chambers and piping between the
CCD wash thickening / NCA overflows and
tailings de-aeration tanks (both new and
existing).
 Page 11 of 14




---



##### 



Facility
    
    Facility Name
    
    Facility Description1615
    
    Tails Detoxification Facility
    
    New detoxification facility for the MOPU
project.1621
    
    Tails Disposal System
    
    New tailings de-aeration tank and outfall for
the MOPU project.1720
    
    Electrical Distribution and Control
    
    All electrical distribution and control
infrastructure including existing facilities.1770
    
    MOPU Geothermal Power
    
    Additional geothermal generating capacity
and associated infrastructure associated
with the MOPU project.1780
    
    Power Transmission Lines
    
    Power transmission from new geothermal
power stations to the process plant plus
power transmission to the Wurtol Weir.1810
    
    Treated Water Systems
    
    All treatment and distribution of primary
treated water (filtered / clarified), potable
water and demineralised water services,
including existing infrastructure.1824**
    
    Raw Water Distribution
    
    All raw water distribution piping fed from the
Londolovit water supply including existing
infrastructure.1825
    
    Wurtol Weir & Pump Station
    
    Civil, structural and concrete works for the
Wurtol weir and pump station.1826
    
    Wurtol Raw Water Supply
    
    Pumps and transfer pipeline for raw water
supply from Wurtol Weir.1830
    
    Seawater Supply and Distribution
    
    All seawater supply, distribution and return
facilities including existing infrastructure.1920
    
    Bulk Commodity Storages
    
    Reclamation of small boat harbour.2010
    
    Berthing Facilities
    
    Roll-on / Roll-off Facility.2101
    
    Support Facilities
    
    Warehousing and workshops.2240**
    
    Fire Protection Services
    
    All fire water piping including existing
infrastructure.
 
 **
    
    Work in these areas has been consolidated under Facility 1391 for budgeting and cost
control purposes. However, labelling of pipes and drawings shall reflect the full
breakdown of facilities identified in this Appendix B. Page 12 of 14




---



##### 



Appendix C List of Standard Specifications
 Administrative Specifications
 Spec.Number
    
    TitleA001
    
    Project InstructionsA002
    
    Specification for AutoCAD DrawingsA003
    
    Specification for Vendor DocumentationA004
    
    Register Project InformationA005
    
    Specification for Piping InformationA006
    
    Standard Format for Piping InformationA007
    
    Specification for Loop NumberingA008
    
    Standard Transmittal Form
 Technical Specifications  Design
 Spec.Number
    
    TitleE100
    
    General Electrical SpecificationE101
    
    DCS and Control System SpecificationD002
    
    Civil & Structural Design CriteriaD003
    
    Mechanical Design CriteriaD004
    
    Piping Design Criteria
 Technical Specifications  Construction
 General
 Spec.Number
    
    TitleG001
    
    Specification for Packaging and Shipping
 Electrical
 Spec.Number
    
    TitleE001
    
    Specification for Low Voltage Motor Control CentresE002
    
    Specification for HV SwitchgearE003
    
    Specification for Transportable SwitchroomsE004
    
    Specification for TransformersE005
    
    Specification for MotorsE006
    
    Instruments and Field DevicesE007
    
    LV CableE008
    
    HV CableE009
    
    Variable Speed Drives and Soft Starters
 Page 13 of 14




---



##### 



Civil and Structural
 Spec.Number
    
    TitleS001
    
    Specification for Bulk EarthworksS002
    
    Specification for PilingS003
    
    Specification for General Civil WorksS004
    
    Specification for ConcreteS005
    
    Specification for Concrete MasonryS006
    
    Specification for Structural SteelworkS007
    
    Specification for Cladding
 Mechanical and Piping
 Spec.Number
    
    TitleM001
    
    Specification for AgitatorsM002
    
    Specification for Cranes, Monorails and HoistsM003
    
    Specification for Compressed Air ServicesM004
    
    Specification for Conveyor EquipmentM005
    
    Specification for Fans and BlowersM006
    
    Specification for InstrumentationM007
    
    Specification for PipingM008
    
    Specification for Protective CoatingsM009
    
    Specification for PumpsM010
    
    Specification for SignageM011
    
    Specification for Specialty Piping ItemsM012
    
    Specification for TanksM013
    
    Specification for ValvingM100
    
    Specification for Installation of Mechanical Plant
 Page 14 of 14




---



##### 



LGL
MILLION OUNCE PLANT UPGRADE (MOPU)
 EQUIPMENT SUPPLY TENDER
SECTION IV FORM OF TENDER
 Date:Name of Tenderer:Proposal Number:Validity of Proposal:Equipment:
    
    AC2004  Pressure Oxidation AutoclaveMake:Model:Type:Manufacturer:Dealer distributor in Country:




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 PRICING SUMMARY
 Equipment Tender # and Description
Tenderers Name:
 All prices to be in Australian or US currency (refer clause 4 of Section I Part A)
 Table 1.1 Cost Breakdown
    
    UOM
    
    
    QTY
    
    
    Unit Cost
    
    
    Extended[List item]
    
    EA
    
    
    
    
    
    
    
    
    
    $
    0.00[List item]
    
    EA
    
    
    
    
    
    
    
    
    
    $
    0.00Equipment Options
    
    EA
    
    
    
    
    
    
    
    
    
    $
    0.00Special Tools
    
    EA
    
    
    
    
    
    
    
    
    
    $
    0.00Extended Warranty Costs (if applicable)
    
    EA
    
    
    
    
    
    
    
    
    
    $
    0.00Discount (if any)
    
    EA
    
    
    
    
    
    
    
    
    
    $
    0.00Export Packing
    
    EA
    
    
    
    
    
    
    
    
    
    $
    0.00Loading to Transport
    
    EA
    
    
    
    
    
    
    
    
    
    $
    0.00Forward Cover Foreign Currency Risk (if any)
    
    EA
    
    
    
    
    
    
    
    
    
    $
    0.00Subtotal FCA (Incoterms 2000) Point of Manufacture
    
    $
    0.00
 Freight/Logistics Cost Breakdown
    
    UOM
    
    
    QTY
    
    
    Unit Cost
    
    
    ExtendedFreight to nearest Seaport (Nominate)
    
    EA
    
    
    
    
    
    
    
    
    
    $
    0.00Customs/Port Terminal Charges (if any)
    
    EA
    
    
    
    
    
    
    
    
    
    $
    0.00Forward Cover Foreign Currency Risk (if any)
    
    EA
    
    
    
    
    
    
    
    
    
    $
    0.00Subtotal FOB (Incoterms 2000) Seaport
    
    $
    0.00TOTAL FOB COST
    
    $
    0.00
 Section IV Form of Tender
    
    Pricing
    
    Page 1




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 COMMERCIAL DETAILS
 Equipment Tender # and Description
Tenderers Name:
 Tenderers Proposed Terms of Payment
 Cancellation Charges
 Point(s) of Manufacture
 Shipment Location
 Sub-Suppliers
 Progress Reports and Schedule
 Number of weeks from date of Purchase Order
    
    # of weeksFrequency of updates
    
    # of weeksLiquidated Damages  Manufacturers Proposal, Subject to Assessment by LGL(Include details)Per Diem Rate (%)
    
    

    
    %Maximum Amount (%)
    
    

    
    %Warranties/GuaranteesFrom date of equipment startup-commissioning (Number of months)
    
    # of monthsFrom date of final component shipment (Number of months)
    
    # of monthsExtended WarrantyList all extended warranties for the Equipment and componentsExtended Warranty Cost (if applicable)
    
    $

    
    0.00Other Details (Add information if required)Does the Seller accept the Warranty Terms and Conditions?
    
    Yes oNo o
 Section IV  Form of Tender
    
    Commercial Details
    
    Page 2




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 COMMERCIAL DETAILS
 Drawings, Operators Manuals and Parts Manuals (Where applicable)  Preliminary Engineering Drawings for approval
 Final Certified Engineering Drawings
 Final Certified (Where preliminary drawings are not required for approval)
 Operators Manuals (Installation, Operation, Maintenance and Training)
 Additional sets (Indicate cost if applicable)
    
    $
    0.00Electronic sets  CD-R (Indicate cost if applicable)
    
    $
    0.00Parts Manuals(Including Bearings, Seals, and Filter Conversions)Parts Manuals in addition to requirements outlined in Section IAdditional sets (Indicate cost if applicable)
    
    $
    0.00Electronic sets  CD-R (Indicate cost if applicable)
    
    $
    0.00Quality Assurance/Quality Control (Include details)Health, Safety, Environmental & Human Rights Compliance (Include details)Tools (Special tools required for installation,
operation and maintenance of Equipment)
 Description
    
    AmountTotal
    
    $
    0.00
 Contract Local/Overseas Content
 Description
    
    AmountTotal Contract Value
    
    $
    0.00
 Section IV  Form of Tender
    
    Commercial Details
    
    Page 3




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 COMMERCIAL DETAILS
 Additional Items/Details
 Section IV  Form of Tender
    
    Commercial Details
    
    Page 4




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 ALTERNATIVE TENDER
 Tenderers Proposed Departures From the Tender Documents
 Equipment Tender # and Description
Tenderers Name:
 All prices to be in Australian or US currency (refer clause 4 of Section I Part A)Currency of Manufacturers Quotation
  Table 1.2 Technical Departures
    
    UOM
    
    
    QTY
    
    
    Unit Cost
    
    
    Extended[List item]
    
    EA
    
    
    
    
    
    
    
    
    
    $
    0.00[List item]
    
    EA
    
    
    
    
    
    
    
    
    
    $
    0.00EA
    
    
    
    
    
    
    
    
    
    $
    0.00EA
    
    
    
    
    
    
    
    
    
    $
    0.00EA
    
    
    
    
    
    
    
    
    
    $
    0.00Forward Cover Foreign Currency Risk (if any)
    
    EA
    
    
    
    
    
    
    
    
    
    $
    0.00Subtotal FOB (Incoterms 2000) Seaport +/-
    
    $
    0.00
 Table 1.3 Commercial Departures
    
    UOM
    
    
    QTY
    
    
    Unit Cost
    
    
    Extended[List Item]
    
    EAEAEAEAEAForward Cover Foreign Currency Risk (if any)
    
    EA
    
    
    
    
    
    
    
    
    
    $
    0.00Subtotal FOB (Incoterms 2000) Seaport +/-
    
    $
    0.00
 Table 1.4 Optional Equipment and/or Materials
    
    UOM
    
    
    QTY
    
    
    Unit Cost
    
    
    ExtendedTenderer to indicate if the following design features are consideredStandardorNon-Standard
equipment items. For all non-standard items, Tenderer to provide cost. Unless otherwise specified it is understood the equipment options below will meet or exceed all
technical requirements in Section III. Tenderer to add additional line items and clarification below, if required.[List Item]
    
    EAEAEAEAEAForward Cover Foreign Currency Risk (if any)
    
    EA
    
    
    
    
    
    
    
    
    
    $
    0.00Subtotal FOB (Incoterms 2000) Seaport +/-
    
    $
    0.00TOTAL FOB COST
    
    $
    0.00
 Section IV Form of Tender
    
    Alternative Tender
    
    Page 5




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 COMMERCIAL DETAILS
 Equipment Tender # and Description:Tenderers Name:
 Table 2.1 Schedule of Key Dates
 Place of
    
    
    Start
    
    
    Available For
    
    
    Dispatch ExItem
    
    Tag
    
    
    Manufacture
    
    
    Manufacture
    
    
    Inspection or Testing
    
    
    Works
    
    
    Delivery Site(Weeks After Order)
 Table 2.2 Contractual Delivery Schedule
  Manufacture and SupplyDelivery Completion Date
 Table 2.3 Witnessed and Verified Performance Tests
  Component and Test
    
    Cost Included?
    
    
    
    CostTotal Cost:
 Section IV  Form of Tender
    
    Schedule of Key Dates
    
    Page 6




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 Tender No:
Design, Manufacture, Supply & Delivery of:
Enquiry No:
 Week endingTask
    
    Start date
    
    Finish date
    
    
    
    7/4
    
    7/11
    
    7/18
    
    7/25
    
    8/1
    
    8/8
    
    8/15
    
    8/22
    
    8/29
    
    09/05
    
    9/12
    
    9/19
    
    9/26
    
    10/3
    
    10/10
    
    10/17
    
    10/24
    
    10/31
    
    11/7
    
    11/14
    
    11/21
    
    11/28Manufacture and Supply of xxx
    
    30-Jun-08
    
    28-Nov-08
    
    PlannedActualSubmit detailed general arrangement drawings
    
    
    
    
    
    PlannedActualMine Approval of general arrangement drawings
    
    
    
    
    
    PlannedActualComponent 1
    
    
    
    
    
    PlannedActualProcurement of material
    
    
    
    
    
    PlannedActualManufacture of component
    
    
    
    
    
    PlannedActualSurface treatment of component
    
    
    
    
    
    PlannedActualInspection of component
    
    
    
    
    
    PlannedActualComponent 2
    
    
    
    
    
    PlannedActualProcurement of material
    
    
    
    
    
    PlannedActualManufacture of component
    
    
    
    
    
    PlannedActualSurface treatment of component
    
    
    
    
    
    PlannedActualInspection of component
    
    
    
    
    
    PlannedActualComponent 3
    
    
    
    
    
    PlannedActualPurchase from sub-vendor
    
    
    
    
    
    PlannedActualDelivery ex sub-vendor
    
    
    
    
    
    PlannedActualAssembly of equipment
    
    
    
    
    
    PlannedActualTesting
    
    
    
    
    
    PlannedActualFinal Inspection
    
    
    
    
    
    PlannedActualDispatch ex works
    
    
    
    
    
    PlannedActualDeliver in Accordance with relevant
    
    
    
    
    
    PlannedIncoterms 2000  Completion Date
    
    
    
    
    
    Actual
 Section IV  Form of Tender
    
    Schedule
    
    Page 7




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 COMMERCIAL DETAILS
 Equipment Tender # and Description
Tenderers Name:
 Table 2.3 Equipment Weights and Dimensions
 Item
    
    Description
    
    
    Tag
    
    
    Weight (kg)
    
    
    Shipping Dimensions (mm)1.2.3.4.5.6.7.8.9.10.11.12.13.14.15.Total Equipment Weight
    
    
    
    
    
    
    
    
    
    
    0Total Cubic Measure
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0Total Number of Pieces
 Table 2.4 Spare Parts
 Item
    
    Description
    
    
    Tag
    
    
    Weight (kg)
    
    
    Shipping Dimensions (mm)1.2.3.4.5.6.7.8.9.10.11.12.13.14.15.Total Spare Parts Weight
    
    
    
    
    
    
    
    
    
    
    0Total Cubic Measure
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0Total Number of PiecesTotal shipping weight
or cubic measure
Revenue Tonne(Revenue Tonne
= greater
of tonnage
or cubic meter)
 Section IV  Form of Tender
    
    Weights and Dimensions
    
    Page 8




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 SPARE PARTS
 Equipment Tender # and Description:
 Tenderers Name:Spare PartsRecommended spare parts for one (1) year of Operation
    
    $
    0.00(Tenderer to provide separate list of spare parts in Excel format)Commissioning spare parts
    
    $
    0.00(Tenderer to provide separate list of commissioning parts in Excel format)Spare Components(Tenderer to provide pricing for spare components)Export/Domestic Packing
    
    $
    0.00Freight (to nearest Port of Exit)
    
    $
    0.00Ocean Freight to Port of Entry
    
    $
    0.00Customs/Port Terminal Charges (if any)
    
    $
    0.00Inland Freight to Project Site
    
    $
    0.00TOTAL COST
    
    $
    0.00Parts Discount (This parts discount would apply for all initial spare parts
purchased)
    
    
    %Nearest Service Depot and/or Distributor (State name and address)Other locations for spare parts support (State name and address)Approximate value for Equipment spare parts carried at named locations
    
    $
    0.00$
    0.00Recommended major components as consignment stock at Work Site without cost to Buyer(Tenderer to provide separate list of major components or modules in Excel format)Recommended list and pricing for all high turnover consumables(Tenderer to provide separate list of consumables in Excel format)
 Section IV  Form of Tender
    
    Spare Parts
    
    Page 9




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 SPARES
 Equipment Tender # and Description  Tenderers Name:
 Table 3.1 Commissioning Spares
 Unit Price If
    
    
    Unit Price IfRecommended
    
    
    Purchased With
    
    
    Supplied AtItem
    
    Description
    
    
    Quantity
    
    
    Main Order
    
    
    Later Date
 Table 3.2 Capital Spares
 Unit Price If
    
    
    Unit Price IfRecommended
    
    
    Purchased With
    
    
    Supplied AtItem
    
    Description
    
    
    Quantity
    
    
    Main Order
    
    
    Later Date
 Section IV  Form of Tender
    
    List of Spare Parts
    
    Page 10




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 AVAILABILITY GUARANTEES
 Equipment Tender # and Description
 Tenderers Name:Equipment Availability GuaranteesYear 1
    
    
    %Year 2
    
    
    %Year 3
    
    
    %Year 4
    
    
    %Year 5
    
    
    %Compensation for availability guarantee(s) not being met:Conditions of availability guarantees(s):
 Section IV  Form of Tender
    
    Availability Guarantees
    
    Page 11




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 SERVICE & SUPPORT
 Equipment Tender # and Description
 Tenderers Name:Technical On-Site Personnel (if Applicable)Reimbursable Sum per Person from X to Cairns or return (detail point of origin)
    
    
    0.00Daily Rates for technical on-Site personnel  detail skills/trades
    
    
    0.00Equipment (List required equipment)
    
    
    0.00Location of RepresentationNumber of RepresentativesEstimated length of stayNumber/Frequency of visitsAdditional Items/DetailsNumber of Technical On-Site Personnel days available at no cost to BuyerEmergency Contact for Technical On-Site requirements (Provide details)Sub-ContractorsProvide the company names of sub-contractors that would be
considered for technical on-Site personnel
supply and state their involvementDiscounted Labour Rate (In the event of additional work
outside the scope of work)
    
    $
    0.00
 Section IV  Form of Tender
    
    Technical On-Site Personnel and Support
    
    Page 12




---



##### 



LGL EQUIPMENT SUPPLY TENDER
 SERVICE & SUPPORT
 Product Support
 Outline recommendations for Operator and Maintenance Training Personnel (Provide details)Outline the period Service Personnel will be provided without cost to Buyer. Assume this is an
advice/troubleshooting role.Outline the period Training Personnel will be provided without cost to Buyer.Cost of Service Personnel (Hourly rate)
    
    $
    0.00Cost of Training Personnel (Hourly rate)
    
    $
    0.00Name and address of Manufacturers RepresentativeIdentify from which location of Service and Training Personnel will be providedIdentify the preferred location for Component Exchange/Rebuilds (Identify preferred locations)Identify any major components or modules that Tenderer recommends and is prepared to locate in the
LGL warehouse as consignment stock at no cost to BuyerOther Details(Add information if required)
 Section IV  Form of Tender
    
    Technical On-Site Personnel and Support
    
    Page 13