Document:

EX-4.AO

MOPU-Autoclave Agreement

	 	 	 	 	 
	DATE:

	 	10th October, 2008	 	 
	 
	COMPANY:

	 	W.E. Smith Engineering Pty Ltd	 	 
	 
	ATTENTION:

	 	Mr.
	 	FAX NO:
	 
	FROM

	 	Mr.
	 	FAX NO:
	 
	SUBJECT:

	 	LGL Million Ounce Plant Upgrade Project
MOPU-1003 Supply of Autoclave	 	 

Total
number of pages herewith - 3 - including this title page

Disclaimer: The contents of the facsimile and any attachments are private and confidential.
If you are not an authorised recipient, copying, distributing, reading or acting on this
information is strictly prohibited, and may render you liable to prosecution.

LETTER OF AWARD

LGL is pleased to hereby advise that your Company’s Tender for DESIGN, MANUFACTURE & SUPPLY
AUTOCLAVE has been accepted subject to the provisions of this Letter of Award.

	1.	 	CONTRACT DOCUMENT
	 
	 	 	The 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	 	Sent
	From Vendor

	Debbie Wyatt
	 	MOPU-1003L-
Autoclave supply — Notice to tenderers #4

	 	Tue 22/07/2008 9:55 AM
	Debbie Wyatt
	 	WES CONFIDENTIAL QUOTATION : MOPU-1003-L - Autoclave

	 	Tue 5/08/2008 11:30 AM

	 	 	 	 	 
	 

	 	 	 	Lihir Island, New Ireland Province
	Lihir Gold Limited

	 	Phone: +675 986 4014
	 	Papua New Guinea
	Incorporated in Papua New Guinea

	 	Fax: +675 986 4018
	 	PO Box 789 Port Moresby NCD 121
	ARBN 069 803 998

	 	Website: www.LGL.gold.com
	 	Papua New Guinea

 

 

Page 2.

	 	 	 	 	 
	From	 	Subject	 	Sent
	Debble Wyalt
	 	MOPU-1003-L — Autoclave RE: WES CONFIDENTIAL QUOTATION :

	 	Tue 5/08/2008 1:21 PM
	Debble Wyatt
	 	MOPU-1003-L — Autoclave RE: WES CONFIDENTIAL QUOTATION :

	 	Wed 6/08/2008 3:52 PM
	Roxane Fitzroy
	 	MOPU-1003-L Autoclave supply tender — Post tender Questions #1

	 	Fri 15/08/2008 11:29 AM
	Paul McFarlane
	 	MOPU-1003-L Autoclave supply tender — Post tender Questions #1

	 	Tue 19/08/2008 6:56 PM
	Debble Wyatt
	 	MOPU-1003-L LGL Pressure Autoclave — Further clarification / Information

	 	Mon 29/08/2008 9:19 AM
	Debbie Wyatt
	 	MOPU-1003-L Autoclave Information

	 	Wed 1/10/08 2:14 PM
	Debble Wyeatt
	 	J0807701F — WES Insurance Schedules

	 	Thu 2/10/08 9:27 AM
	Paul McFarlane
	 	RE: MOPU-1003-L Autoclave supply — Insurances

	 	Wed 8/10/08 4:48 PM
	Paul McFarlane
	 	RE; MOPU-1003-L Terms and Conditions Negotiation table

	 	Thu 9/10/08 9:28 AM
	Paul McFarlane
	 	RE: MOPU-1003-L Autoclave Fixed Pricing

	 	Thu 9/10/08 3:28 PM
	Paul McFarlane
	 	RE: MOPU-1003-L Autoclave Fixed Pricing

	 	Fri 10/10/08 10:51 AM
	 	 	 
	 	 
	 	 	To Vendor
	 	 
	Adam Dickens
	 	MOPU-1003-L Supply of Autoclave — Notice to Tenderers #1

	 	Mon 14/07/2008 8:34 AM
	Adam Dickens
	 	MOPU-1003-L Autoclave Supply — Notice to tenderers #2

	 	Thu 17/07/2008 11:23 AM
	Adam Dickens
	 	MOPU-1003-L Autoclave Supply — Notice to tenderers #3

	 	Fri 18/07/2008 3:01 PM
	Adam Dickens
	 	MOPU-1003-L Autoclave supply — Notice to tenderers #4

	 	Tue 22/07/2008 9:47 AM
	Adam Dickens
	 	MOPU-1003-L — Autoclave RE: WES CONFIDENTIAL QUOTATION :

	 	Tue 5/08/2008 11:52 AM
	Adam Dickens
	 	MOPU-1003-L Autoclave supply tender — Post tender Questions #1

	 	Fri 15/08/2008 11:23 AM
	Adam Dickens
	 	MOPU-1003-L LGL Pressure Autoclave — Further clarification / Information

	 	Mon 22/09/2008 1:54 PM
	Adam Dickens
	 	MOPU-1003-L Autoclave Information

	 	Tue 30/09/2008 12:59 PM
	Adam Dickens
	 	MOPU-1003-L Re: KNM — Terms & Conditions Table.doc

	 	Wed 1/10/08 9:31 AM
	Adam Dickens
	 	MOPU-1003-L Autodve supply — insurances

	 	Thu 2/10/08 12:14 PM
	Adam Dickens
	 	MOPU-1003-L Terms and Conditions Negotiation table

	 	Thu 2/10/08 4:15 PM
	Adam Dickens
	 	MOPU-1003-L Autoclave Fixed Pricing

	 	Wed 8/10/08 2:43 PM
	Adam Dickens
	 	MOPU-1003-L Autoclave Terms & Conditions Negotiation table

	 	Thu 9/10/08 12:48 PM
	Adam 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 REPRESENTATIVE
	 
	 	 	WES is advised that LGL’s Representative’s is:

Ben Innes

Telephone — +61 7 3318 3392

E-Mail—Ben.lnnes@LGLgold.com

 

 

Page 3.

	 	 	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 Project
	Equipment Name
	 	Autoclave
	Equipment Number(s)
	 	1343-AC2004
	Vendor
	 	W.E. Smith Engineering Pty Ltd
	 
	 	 
	Engineering
Design
	 	Included
	Workshop Fabrication Drawings
	 	Included
	Autoclave
	 	USD
	Commissioning
& Start up Spare Parts —
As detailed in the tender offer
	 	USD
	FOB Delivery / Transportation, KNM Port,
Kuantan, Malaysia
	 	 USD
	 
	 	 
	Total Cost (Excluding GST)
	 	USD

	4.	 	SUPPLY SCHEDULE

	 	 	 
	Activity	 	Time After Contract Award
	Preliminary Engineering Drawings
	 	 
	Final Certified Engineering Drawings
	 	 
	Inspection and Test Plan
	 	 
	Fixed and Firm Manufacturing schedule
	 	 
	 
	 	 
	Commence Autoclave Manufacture
	 	 
	Autoclave available for inspection or testing
	 	 
	Autoclave delivered FOB KNM Port, Kuantan
	 	 

	5.	 	CONTRACT NUMBER
	 
	 	 	The Contract No MOPU-1003 and Purchase Order No (TBA) must be referenced in all
correspondence and invoices.
	 
	6.	 	ACKNOWLEDGMENT & ACCEPTANCE
	 
	 	 	WES 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.

 

 

Page 4.

Yours faithfully,

Noel Foley,

Executive General Manager, Operations

Lihir Gold Limited

Fax: 675 986 4018

ACKNOWLEDGEMENT BY VENDOR

Letter of Award for Contract No MOPU-1003 acknowledged and accepted for and on behalf of WES.

	 	 	 	 	 
	Name:

	 	Terry Chew
	 	 
	Position:

	 	Director, Sales Division KNM Process Systems	 	 
	Signature:

	 	/s/ Terry Chew	 	 
	 

	 	 	 	 
	Date:

	 	23-10-08	 	 

 

 

W.E. Smith Engineering Pty Ltd

MOPU-1003 — Supply of Autoclave

Purchase Order Special Conditions

Amend Part B, Section 1, Purchase Order Terms and Conditions with the following:

	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 Schedule
	Order 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	 	Sent
	WES
	 	RE: MOPU-1003-L Autoclave Fixed Pricing

	 	Friday, 10 October 2008
	LGL
	 	MOPU-1003-L Autoclave Fixed Pricing

	 	Thursday, 9 October 2008
	WES
	 	RE: MOPU-1003-L Autoclave Fixed Pricing

	 	Thursday, 9 October 2008
	LGL
	 	MOPU-1003-L Autoclave Terms & Conditions Negotiation table

	 	Thursday, 9 October 2008
	WES
	 	RE: MOPU-1003-L Terms and Conditions Negotiation table

	 	Thursday, 9 October 2008
	WES
	 	RE: MOPU-1003-L Autoclve supply — Insurances

	 	Wednesday, 8 October 2008
	LGL
	 	MOPU-1003-L Autoclave Fixed Pricing

	 	Wednesday, 8 October 2008
	LGL
	 	MOPU-1003-L Terms and Conditions Negotiation table

	 	Thursday, 2 October 2008
	LGL
	 	MOPU-1003-L Autoclve supply — Insurances

	 	Thursday, 2 October 2008
	WES
	 	J0807701F — WES Insurance Schedules

	 	Thursday, 2 October 2008
	WES
	 	MOPU-1003-L Autoclave Information

	 	Wednesday, 1 October 2008
	LGL
	 	MOPU-1003-L Re: KNM — Terms & Conditions Table.doc

	 	Wednesday, 1 October 2008
	LGL
	 	MOPU-1003-L Autoclave Information

	 	Tuesday, 30 September 2008
	WES
	 	MOPU-1003-L LGL Pressure Autoclave — Further clarification / information

	 	Monday, 29 September 2008
	LGL
	 	MOPU-1003-L LGL Pressure Autoclave — Further clarification / information

	 	Monday, 22 September 2008
	WES
	 	MOPU-1003-L Autoclave supply tender — Post tender Questions #1

	 	Tuesday, 19 August 2008
	WES
	 	MOPU-1003-L Autoclave supply tender — Post tender Questions #1

	 	Friday, 15 August 2008
	LGL
	 	MOPU-1003-L Autoclave supply tender — Post tender Questions #1

	 	Friday, 15 August 2008
	WES
	 	MOPU-1003-L — Autoclave RE: WES CONFIDENTIAL QUOTATION :

	 	Wednesday, 6 August 2008
	WES
	 	MOPU-1003-L — Autoclave RE: WES CONFIDENTIAL QUOTATION :

	 	Tuesday, 5 August 2008
	LGL
	 	MOPU-1003-L — Autoclave RE: WES CONFIDENTIAL QUOTATION :

	 	Tuesday, 5 August 2008
	WES
	 	WES CONFIDENTIAL QUOTATION : MOPU-1003-L — Autoclave

	 	Tuesday, 5 August 2008
	WES
	 	MOPU-1003-L Autoclave supply — Notice to tenderers #4

	 	Tuesday, 22 July 2008
	LGL
	 	MOPU-1003-L Autoclave supply — Notice to tenderers #4

	 	Tuesday, 22 July 2008
	LGL
	 	MOPU-1003-L Autoclave Supply — Notice to tenderers #3

	 	Friday, 18 July 2008
	LGL
	 	MOPU-1003-L Autoclave Supply — Notice to tenderers #2

	 	Thursday, 17 July 2008
	LGL
	 	MOPU-1003-L Supply of Autoclave — Notice to Tenderers #1

	 	Monday, 14 July 2008

 

 

Page 1 of 3

Adam Dickens

	 	 	 
	From:

	 	Paul McFarlane
	 
	Sent:

	 	Friday, 10 October 2008 10:50 AM
	 
	To:

	 	Adam Dickens
	 
	Cc:

	 	Roxane Fitzroy; Debbie Wyatt; MOPU; TC Mok; SY Kit; Ian McNaughtan
	 
	Subject:

	 	RE: MOPU-1003-L Autoclave Fixed Pricing
	 
	Attachments:

	 	MOPU-1003-0E-C — WES — Terms Conditions Table.doc

Adam,

We have since re-negotiated with major material suppliers & received updated material prices over
night. We can confirm we can offer the following pricing as fixed in order to enable LGL to make an
award decision prior to close of business Friday 10th October, 2008.

	 	 	 	 
	WES Portion
	 	US$	 
	KNM Portion
	 	US$	 
	Spare Parts
	 	US$	 
	Inland Transport, FOB Barge
	 	US$	 
	 
	 	 
	Total
	 	US$	 

Please find attached marked up T & C’s table for your reference.

I hope the above is of assistance, should you require any further detail or clarification please do
not hesitate to contact me at anytime.

Best regards

Paul McFarlane

W.E Smith Engineering

KPL Commercial Manager

Sales & Marketing

Ph:

Fax:

E-Fax:

Mobile: 

E-mail:

From:
Adam.Dickens@lglgold.com

Sent: Thursday, October 09, 2008 4:50 PM

To: Paul McFarlane

Cc: Roxane Fitzroy; Debbie Wyatt; Tc Mok; SY Kit;

Subject: MOPU-1003-L Autoclave Fixed Pricing

Paul,

LGL does not understand how this latest pricing has come about.

There seems to be an issue with currency exchange rates, and given that the last quote submitted by
W.E.Smith Engineering was on the 29th September, there has only been 11 days since last
quote, for your pricing to change.

Please provide further clarity and transparency on the fixed pricing by 10am (Qld time) Friday
10th October, 2008. Please also submit all other outstanding items by this time.

Regards,

Adam Dickens

Contracts Engineer

Lihir Services Australia Pty Ltd

 

 

Page 2 of 3

www.lglgold.com

From: Paul McFarlane [mailto:          ]

Sent: Thursday, 9 October 2008 3:30 PM

To: Adam Dickens

Cc: Roxane Fitzroy; Debbie Wyatt; MOPU; TC Mok; SY Kit

Subject: RE: MOPU-1003-L Autoclave Fixed Pricing

Adam,

In reference to your mail regarding fixed pricing & in order to enable LGL to make an award
decision prior to close of business Friday 10th October, 2008. we offer the following fixed
pricing.

	 	 	 	 
	WES Portion
	 	US$	 
	KNM Portion
	 	US$	 
	Spare Parts
	 	US$	 
	Inland Transport, FOB Barge
	 	US$	 
	 
	 	 
	Total
	 	US$	 

It is noted that all other pre-negotiated clarifications will remain unchanged.

Further to the above it should be noted that given the current market we have had to re-confirm
materials pricing, even though we have had reductions in exchange rate variation we have
experienced material price increases. We have absorbed some of these increases to effectively
maintain the same WES portion. This has resulted in a minor reduction to the overall price.

I hope the above is of assistance, Should you require any further detail or clarification please do
not hesitate to contact me at anytime.

Best regards

Paul McFarlane

W.E Smith Engineering

KPL Commercial Manager

Sales & Marketing

Ph:

Fax:

E-Fax:

Mobile:

E-mail:

From:
Adam.Dickens

Sent: Wednesday, October 08, 2008 3:43 PM

To: Paul McFarlane

Cc: Roxane Fitzroy; Debbie Wyatt; MOPU_0801@lglgold.com

Subject: MOPU-1003-L Autoclave Fixed Pricing

Importance: High

Paul,

Further to recent communications regarding the supply of an Autoclave for the MOPU project, please
find the following for your urgent action and consideration.

LGL wishes to fix the price for the Autoclave, based on the pricing components submitted to LGL by
W.E.

 

 

Page 3 of 3

Smith Engineering (via email Wednesday 1st October), being:

	 	•	 	The price of USD
             is
based on the currency exchange rate of           .
	 
	 	•	 	The price of USD
             is based on the currency exchange rate of           .

LGL requires W.E. Smith Engineering to fix this pricing (in USD) based on exchange rate information
obtained from the Reserve Bank of Australia, utilising the 7th October 2008, as fixing
date. Please refer to the following website for this currency exchange rate information.

http://www.rba.gov.au/statistics/exchange_rates.html 

Once the USD value is fixed as noted above, please nominate and add to this your proposed cost in
United States Dollars to fix the price in United States Dollars, as at 7th October 2008
which would then be your firm and fixed Lump Sum Tender Price. Please submit this fixed pricing by
close of business Thursday 9th October, 2008, to enable LGL to make an award decision
prior to close of business Friday 10th October, 2008.

Regards,

Adam Dickens

Contracts Engineer

Lihir Services Australia Pty Ltd

 

 

 

 

www.lglgold.com

 

 

Lihir Gold Limited Commercial Departures Tracking Sheet

	 	 	 	 	 	 	 
	Contract No:

	 	MOPU-1003
	 	LGL Contact:
	 	Adam Dickens
	Contract Name:

	 	Pressure Oxidation Autoclave
	 	External Contact:
	 	KNM — Paul McFarlane

	 	 	 	 	 	 	 	 	 
	No.	 	Clause	 	Contractor’s Position	 	Lihir’s Position	 	KNM / WES Response
	1.

	 	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
	 	Closed
	 
	 	 	 	 	 	 	 	 
	2.

	 	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.
	 	Closed
	 
	 	 	 	 	 	 	 	 
	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.
	 	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 

•     Dates must be shown next to every comment inserted.

•     The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

•     No contract will be finalised until the final resolution column has been incorporated into a contract and signed by the parties

 

 

Lihir Gold Limited Commercial Departures Tracking Sheet

	 	 	 	 	 	 	 
	Contract No:

	 	MOPU-1003
	 	LGL Contact:
	 	Adam Dickens
	Contract Name:

	 	Pressure Oxidation Autoclave
	 	External Contact:
	 	KNM — Paul McFarlane

	 	 	 	 	 	 	 	 	 
	No.	 	Clause	 	Contractor’s Position	 	Lihir’s Position	 	KNM / WES Response
	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.

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
	 	Closed
	 
	 	 	 	 	 	 	 	 
	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.

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 LGL
	 
	 	 	 	 	 	 	 	 
	8.

	 	Clause 15
	 	Propose to maintain KNM insurance policy
	 	24-9-08: LGL requires further
	 	Attached please find our insurance policies.

IMPORTANT 

•     Dates must be shown next to every comment inserted.

•     The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

•     No contract will be finalised until the final resolution column has been incorporated into a contract and signed by the parties

 

 

Lihir Gold Limited Commercial Departures Tracking Sheet

	 	 	 	 	 	 	 
	Contract No:

	 	MOPU-1003
	 	LGL Contact:
	 	Adam Dickens
	Contract Name:

	 	Pressure Oxidation Autoclave
	 	External Contact:
	 	KNM — Paul McFarlane

	 	 	 	 	 	 	 	 	 
	No.	 	Clause	 	Contractor’s Position	 	Lihir’s Position	 	KNM / WES Response
	 

	 	Insurance 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 LGL
	 
	 	 	 	 	 	 	 	 
	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

10-10-08: 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 LGL
	 
	 	 	 	 	 	 	 	 
	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.
	 	Closed
	 
	 	 	 	 	 	 	 	 
	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
	 	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 

•     Dates must be shown next to every comment inserted.

•     The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

•     No contract will be finalised until the final resolution column has been incorporated into a contract and signed by the parties

 

 

Lihir Gold Limited Commercial Departures Tracking Sheet

	 	 	 	 	 	 	 
	Contract No:

	 	MOPU-1003
	 	LGL Contact:
	 	Adam Dickens
	Contract 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 LGL
	 
	 

	 	 	 	 	 	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.
	 	Closed
	 
	 	 	 	 	 	 	 	 
	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 LGL
	 
	 	 	 	 	 	 	 	 
	14.

	 	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
	 
	 	 	 	 	 	 	 	 
	15.

	 	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 LGL
	 
	 	 	 	 	 	 	 	 
	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

•     Dates must be shown next to every comment inserted.

•     The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

•     No contract will be finalised until the final resolution column has been incorporated into a contract and signed by the parties

 

 

Page 1 of 2

Adam Dickens

	 	 	 
	From:

	 	Adam Dickens
	 
	Sent:

	 	Thursday, 9 October 2008 3:50 PM
	 
	To:

	 	Paul McFarlane
	 
	Cc:

	 	Roxane Fitzroy; Debbie Wyatt; MOPU; TC Mok; SY Kit; Ian McNaughtan
	 
	Subject:

	 	MOPU-1003-L Autoclave Fixed Pricing

Paul,

LGL does not understand how this latest pricing has come about.

There seems to be an issue with currency exchange rates, and given that the last quote submitted by
W.E.Smith Engineering was on the 29th September, there has only been 11 days since last
quote, for your pricing to change.

Please provide further clarity and transparency on the fixed pricing by 10am (Qld time) Friday
10th October, 2008. Please also submit all other outstanding items by this time.

Regards,

Adam Dickens

Contracts Engineer

Lihir Services Australia Pty Ltd

 

www.lglgold.com 

From:
Paul McFarlane [mail           ]

Sent: Thursday, 9 October 2008 3:30 PM

To: Adam Dickens

Cc: Roxane Fitzroy; Debbie Wyatt; MOPU; TC Mok; SY Kit

Subject: RE: MOPU-1003-L Autoclave Fixed Pricing

Adam,

In reference to your mail regarding fixed pricing & in order to enable LGL to make an award
decision prior to close of business Friday 10th October, 2008. we offer the following
fixed pricing.

	 	 	 	 
	WES Portion
	 	US$	 
	KNM Portion
	 	US$	 
	Spare Parts
	 	US$	 
	Inland Transport, FOB Barge
	 	US$	 
	 
	 	 
	Total
	 	US$	 

It is noted that all other pre-negotiated clarifications will remain unchanged.

Further to the above it should be noted that given the current market we have had to re-confirm
materials pricing, even though we have had reductions in exchange rate variation we have
experienced material price increases. We have absorbed some of these increases to effectively
maintain the same WES portion. This has resulted in a minor reduction to the overall price.

I hope the above is of assistance, Should you require any further detail or clarification please do
not hesitate to contact me at anytime.

Best regards

 

 

Page 2 of 2

Paul McFarlane

W.E Smith Engineering

KPL Commercial Manager

Sales & Marketing

Ph:

Fax:

E-Fax:

Mobile:

E-mail:

From: Adam.Dickens@ [                    ]

Sent: Wednesday, October 08, 2008 3:43 PM

To: Paul McFarlane

Cc: Roxane Fitzroy; Debbie Wyatt; MOPU0801@lglgold.com

Subject: MOPU-1003-L Autoclave Fixed Pricing

Importance: High

Paul,

Further to recent communications regarding the supply of an Autoclave for the MOPU project, please
find the following for your urgent action and consideration.

LGL wishes to fix the price for the Autoclave, based on the pricing components submitted to LGL by
W.E. Smith Engineering (via email Wednesday 1st October), being:

	 	•	 	The price of
          is based on the currency exchange rate of           .
	 
	 	•	 	The price of           is based on the currency exchange rate of           .

LGL requires W.E. Smith Engineering to fix this pricing (in USD) based on exchange rate information
obtained from the Reserve Bank of Australia, utilising the 7th October 2008, as fixing
date. Please refer to the following website for this currency exchange rate information.

http://www.rba.gov.au/statistics/exchange__rates.html

Once the USD value is fixed as noted above, please nominate and add to this your proposed cost in
United States Dollars to fix the price in United States Dollars, as at 7th October 2008
which would then be your firm and fixed Lump Sum Tender Price. Please submit this fixed pricing by
close of business Thursday 9th October, 2008, to enable LGL to make an award decision
prior to close of business Friday 10th October, 2008.

Regards,

Adam Dickens

Contracts Engineer

Lihir Services Australia Pty Ltd

 

www.lglgold.com 

 

 

Page 1 of 2

Adam Dickens

	 	 	 
	From:

	 	Paul McFarlane [                    ]
	 
	Sent:

	 	Thursday, 9 October 2008 3:30 PM
	 
	To:

	 	Adam Dickens
	 
	Cc:

	 	Roxane Fitzroy; Debbie Wyatt; MOPU; TC Mok; SY Kit
	 
	Subject:

	 	RE: MOPU-1003-L Autoclave Fixed Pricing

Adam,

In reference to your mail regarding fixed pricing & in order to enable LGL to make an award
decision prior to close of business Friday 10th October, 2008. we offer the following
fixed pricing.

	 	 	 	 	 
	WES Portion
	 	US$	 	 
	KNM Portion
	 	US$	 	 
	Spare Parts
	 	US$	 	 
	Inland Transport, FOB Barge
	 	US$	 	 
	 
	 	 
	Total
	 	US$	 	 

It is noted that all other pre-negotiated clarifications will remain unchanged.

Further to the above it should be noted that given the current market we have had to re-confirm
materials pricing, even though we have had reductions in exchange rate variation we have
experienced material price increases. We have absorbed some of these increases to effectively
maintain the same WES portion. This has resulted in a minor reduction to the overall price.

I hope the above is of assistance, Should you require any further detail or clarification please do
not hesitate to contact me at anytime.

Best regards

Paul McFarlane

W.E Smith Engineering

KPL Commercial Manager

Sales & Marketing

Ph:

Fax:

E-Fax:

Mobile:

E-mail:

From: Adam.Dickens@ [                    ]

Sent: Wednesday, October 08, 2008 3:43 PM

To: Paul McFarlane

Cc: Roxane Fitzroy; Debbie Wyatt; MOPU_0801@lglgold.com

Subject: MOPU-1003-L Autoclave Fixed Pricing

Importance: High

Paul,

Further to recent communications regarding the supply of an Autoclave for the MOPU project, please
find the following for your urgent action and consideration.

LGL wishes to fix the price for the Autoclave, based on the pricing components submitted to LGL by
W.E. Smith Engineering (via email Wednesday 1st October), being:

	 	•	 	The price of
          is based on the currency exchange rate of           .

 

 

Page 2 of 2

	 	•	 	The price of           is based on the currency exchange rate of           .

LGL requires W.E. Smith Engineering to fix this pricing (in USD) based on exchange rate information
obtained from the Reserve Bank of Australia, utilising the 7th October 2008, as fixing
date. Please refer to the following website for this currency exchange rate information.

http://www.rba.gov.au/statistics/exchange_rates.html 

Once the USD value is fixed as noted above, please nominate and add to this your proposed cost in
United States Dollars to fix the price in United States Dollars, as at 7th October 2008
which would then be your firm and fixed Lump Sum Tender Price. Please submit this fixed pricing by
close of business Thursday 9th October, 2008, to enable LGL to make an award decision
prior to close of business Friday 10th October, 2008.

Regards,

Adam Dickens

Contracts Engineer

Lihir Services Australia Pty Ltd

www.lglgold.com 

 

 

Page 1 of 1

Adam Dickens

	 	 	 
	From:

	 	Adam Dickens
	 
	Sent:

	 	Thursday, 9 October 2008 12:48 PM
	 
	To:

	 	Paul McFarlane
	 
	Cc:

	 	MOPU; Debbie Wyatt; Roxane Fitzroy
	 
	Subject:

	 	MOPU-1003-L Autoclave Terms & Conditions Negotiation table
	 
	Importance:

	 	High
	 
	Attachments:

	 	MOPU-1003-0E-C — WES — Terms & Conditions Table.doc

Paul,

Please find attached table for your information and action. I have added comments, dated today, in
red. Please review and revert at your earliest opportunity, preferably by Close of business today.

Thanks for your urgent assistance.

Regards,

Adam Dickens

Contracts Engineer

Lihir Services Australia Pty Ltd

 

www.lglgold.com 

 

 

Lihir Gold Limited Commercial Departures Tracking Sheet

	 	 	 	 	 	 	 
	Contract No:

	 	MOPU-1003
	 	LGL Contact:
	 	Adam Dickens
	Contract Name:

	 	Pressure Oxidation Autoclave
	 	External Contact:
	 	KNM — Paul McFarlane

	 	 	 	 	 	 	 	 	 
	No.	 	Clause	 	Contractor’s Position	 	Lihir’s Position	 	KNM / WES Response
	1.

	 	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
	 	Closed
	 
	 	 	 	 	 	 	 	 
	2.

	 	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)
	 	Closed
	 
	 

	 	 	 	 	 	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.
	 	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.
	 	Closed
	 
	 	 	 	 	 	 	 	 
	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.
	 	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

• Dates must be shown next to every comment inserted.

• The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

• No contract will be finalised until the final resolution column has been incorporated into a contract and signed by the parties

 

 

Lihir Gold Limited Commercial Departures Tracking Sheet

	 	 	 	 	 	 	 
	Contract No:

	 	MOPU-1003
	 	LGL Contact:
	 	Adam Dickens
	Contract Name:

	 	Pressure Oxidation Autoclave
	 	External Contact:
	 	KNM — Paul McFarlane

	 	 	 	 	 	 	 	 	 
	No.	 	Clause	 	Contractor’s Position	 	Lihir’s Position	 	KNM / WES Response
	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.

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
	 	Closed
	 

	 	 	 	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”	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	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

• Dates must be shown next to every comment inserted.

• The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

• No contract will be finalised until the final resolution column has been incorporated into a contract and signed by the parties

 

 

Lihir Gold Limited Commercial Departures Tracking Sheet

	 	 	 	 	 	 	 
	Contract No:

	 	MOPU-1003
	 	LGL Contact:
	 	Adam Dickens
	Contract Name:

	 	Pressure Oxidation Autoclave
	 	External Contact:
	 	KNM — Paul McFarlane

	 	 	 	 	 	 	 	 	 
	No.	 	Clause	 	Contractor’s Position	 	Lihir’s Position	 	KNM / WES Response
	 

	 	Insurance 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.
	 	Closed
	 
	 	 	 	 	 	 	 	 
	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	 	 

IMPORTANT

• Dates must be shown next to every comment inserted.

• The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

• No contract will be finalised until the final resolution column has been incorporated into a contract and signed by the parties

 

 

Lihir Gold Limited Commercial Departures Tracking Sheet

	 	 	 	 	 	 	 
	Contract No:

	 	MOPU-1003
	 	LGL Contact:
	 	Adam Dickens
	Contract Name:

	 	Pressure Oxidation Autoclave
	 	External Contact:
	 	KNM — Paul McFarlane

	 	 	 	 	 	 	 	 	 
	No.	 	Clause	 	Contractor’s Position	 	Lihir’s Position	 	KNM / WES Response
	 

	 	 	 	 	 	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.

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 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”.

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 LGL
	 
	 	 	 	 	 	 	 	 
	14.

	 	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
	 
	 	 	 	 	 	 	 	 
	15.

	 	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 LGL
	 

	 	 	 	 	 	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 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

• Dates must be shown next to every comment inserted.

• The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

• No contract will be finalised until the final resolution column has been incorporated into a
contract and signed by the parties

 

 

Page 1 of 1

Adam Dickens

	 	 	 
	From:

	 	Paul McFarlane
	 
	Sent:

	 	Thursday, 9 October 2008 9:30 AM
	 
	To:

	 	Adam Dickens; Debbie Wyatt; Roxane Fitzroy
	 
	Cc:

	 	MOPU_
	 
	Subject:

	 	RE: MOPU-1003-L Terms and Conditions Negotiation table
	 
	Attachments:

	 	MOPU-1003-0D-C — WES — Terms Conditions Table 7Oct08.doc

Adam,

Please find attached marked up T & C’s table for your reference.

Should you require any further detail or clarification please do not hesitate to contact me at
anytime.

Best regards

Paul McFarlane

W.E Smith Engineering

KPL Commercial Manager

Sales & Marketing

Ph: +61 2 6650 8840

Fax: +61 2 6658 3499

E-Fax: +61 29 4754 109

Mobile: +61 418 975 324 
E-mail:

From:
Adam.Dickens@lglgold.com

Sent: Thursday, October 02, 2008 4:15 PM

To: Paul McFarlane; Debbie Wyatt; Roxane Fitzroy

Cc: MOPU_0801@lglgold.com

Subject: MOPU-1003-L Terms and Conditions Negotiation table

Importance: High

Paul / Debbie / Roxane,

Please find attached revised terms and conditions negotiation table. Areas that are NOT highlighted
are items that require your review and comment.

Please return to me at your earliest opportunity. If you have any questions, please do not hesitate
in contacting me.

Regards,

Adam Dickens

Contracts Engineer

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

 

 

Lihir Gold Limited Commercial Departures Tracking Sheet

	 	 	 	 	 	 	 
	Contract No:

	 	MOPU-1003
	 	LGL Contact:
	 	Adam Dickens
	Contract Name:

	 	Pressure Oxidation Autoclave
	 	External Contact:
	 	KNM — Paul McFarlane

	 	 	 	 	 	 	 	 	 
	No.	 	Clause	 	Contractor’s Position	 	Lihir’s Position	 	KNM / WES Response
	1.

	 	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
	 	Closed
	 
	 	 	 	 	 	 	 	 
	2.

	 	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)
	 	Closed
	 

	 	 	 	 	 	

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.”
	 	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.
	 	Closed
	 
	 	 	 	 	 	 	 	 
	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.
	 	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
	 
	 	 	 	 	 	 	 	 
	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
	 	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

• Dates must be shown next to every comment inserted.

• The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

• No contract will be finalised until the final resolution column has been incorporated into a contract and signed by the parties

 

 

Lihir Gold Limited Commercial Departures Tracking Sheet

	 	 	 	 	 	 	 
	Contract No:

	 	MOPU-1003
	 	LGL Contact:
	 	Adam Dickens
	Contract Name:

	 	Pressure Oxidation Autoclave
	 	External Contact:
	 	KNM — Paul McFarlane

	 	 	 	 	 	 	 	 	 
	No.	 	Clause	 	Contractor’s Position	 	Lihir’s Position	 	KNM / WES Response
	 

	 	 	 	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
	 	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
	 	Closed
	 
	 	 	 	 	 	 	 	 
	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.

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

• Dates must be shown next to every comment inserted.

• The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

• No contract will be finalised until the final resolution column has been incorporated into a contract and signed by the parties

 

 

Lihir Gold Limited Commercial Departures Tracking Sheet

	 	 	 	 	 	 	 
	Contract No:

	 	MOPU-1003
	 	LGL Contact:
	 	Adam Dickens
	Contract Name:

	 	Pressure Oxidation Autoclave
	 	External Contact:
	 	KNM — Paul McFarlane

	 	 	 	 	 	 	 	 	 
	No.	 	Clause	 	Contractor’s Position	 	Lihir’s Position	 	KNM / WES 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.

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.
	 	Closed
	 
	 	 	 	 	 	 	 	 
	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

	 	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
	 

	 	 	 	 	 		 	
	 

	 	 	 	(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

• Dates must be shown next to every comment inserted.

• The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

• No contract will be finalised until the final resolution column has been incorporated into a contract and signed by the parties

 

 

Lihir Gold Limited Commercial Departures Tracking Sheet

	 	 	 	 	 	 	 
	Contract No:

	 	MOPU-1003
	 	LGL Contact:
	 	Adam Dickens
	Contract Name:

	 	Pressure Oxidation Autoclave
	 	External Contact:
	 	KNM — Paul McFarlane

	 	 	 	 	 	 	 	 	 
	No.	 	Clause	 	Contractor’s Position	 	Lihir’s Position	 	KNM / WES Response
	 

	 	 	 	Item (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
LGL
	 
	 	 	 	 	 	 	 	 
	14.

	 	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
	 
	 	 	 	 	 	 	 	 
	15.

	 	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 LGL
	 
	 	 	 	 	 	 	 	 
	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

• Dates must be shown next to every comment inserted.

• The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

• No contract will be finalised until the final resolution column has been incorporated into a contract and signed by the parties

 

 

Page 1 of 2

Adam Dickens

	 	 	 
	From:

	 	Paul McFarlane
	 
	Sent:

	 	Wednesday, 8 October 2008 4:50 PM
	 
	To:

	 	Adam Dickens; Debbie Wyatt; Roxane Fitzroy
	 
	Cc:

	 	MOPU; SY Kit; TC Mok
	 
	Subject:

	 	RE: MOPU- 1003-L Autoclve supply — Insurances

Adam,

Thanks for your e-mail. In reference to your queries we respond as follows.

	 	•	 	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

We have checked with our broker & confirm that all equipment including pressure vessels are covered
in our policy. Therefore, the Autoclave is covered in our insurance policy.

	 	•	 	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

We have contacted our broker regarding coverage for “Principals Interest”. At this stage our policy
does not include however we have requested what options there are to have this included in our
policy. We are currently expediting a response & shall advise on receipt.

I hope the above is of assistance, should you require any further detail or clarification please do
not hesitate to contact me at anytime.

Best regards

Paul McFarlane

W.E Smith Engineering

KPL Commercial Manager

Sales & Marketing

Ph: +61 2 6650 8840

Fax: +61 2 6658 3499

E-Fax: +61 29 4754 109

Mobile: +61 418 975 324

E-mail:

From: Adam.Dickens

Sent: Thursday, October 02, 2008 12:14 PM

To: Paul McFarlane; Debbie Wyatt; Roxane Fitzroy

Cc: MOPU_0801@lglgold.com

Subject: MOPU-1003-L Autoclve supply — Insurances

Paul / Debbie / Roxane,

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?

 

 

Page 2 of 2

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”?

We await your urgent response.

Regards,

Adam Dickens

Contracts Engineer

Lihir Services Australia Pty Ltd

www.lglgold.com 

 

 

Page 1 of 1

Adam Dickens

	 	 	 
	From:

	 	Adam Dickens
	 
	Sent:

	 	Wednesday, 8 October 2008 2:43 PM
	 
	To:

	 	Paul McFarlane
	 
	Cc:

	 	Roxane Fitzroy; Debbie Wyatt; MOPU
	 
	Subject:

	 	MOPU-1003-L Autoclave Fixed Pricing
	 
	Importance:

	 	High

Paul,

Further to recent communications regarding the supply of an Autoclave for the MOPU project, please
find the following for your urgent action and consideration.

LGL wishes to fix the price for the Autoclave, based on the pricing components submitted to LGL by
W.E. Smith Engineering (via email Wednesday 1st October), being:

	 	§	 	The price of
          is  based
on the currency exchange rate of
          .
	 
	 	§	 	The price of           is based on the currency exchange rate of           .

LGL requires W.E. Smith Engineering to fix this pricing (in USD) based on exchange rate information
obtained from the Reserve Bank of Australia, utilising the 7th October 2008, as fixing
date. Please refer to the following website for this currency exchange rate information.

http://www.rba.gov.au/statistics/exchange__rates.html

Once the USD value is fixed as noted above, please nominate and add to this your proposed cost in
United States Dollars to fix the price in United States Dollars, as at 7th October 2008
which would then be your firm and fixed Lump Sum Tender Price. Please submit this fixed pricing by
close of business Thursday 9th October, 2008, to enable LGL to make an award decision
prior to close of business Friday 10th October, 2008.

Regards,

Adam Dickens

Contracts Engineer

Lihir Services Australia Pty Ltd

www.lglgold.com 

 

 

Page 1 of 1

Adam Dickens

	 	 	 
	From:

	 	Adam Dickens
	 
	Sent:

	 	Thursday, 2 October 2008 4:15 PM
	 
	To:

	 	Paul McFarlane; Debbie Wyatt; Roxane Fitzroy
	 
	Cc:

	 	MOPU
	 
	Subject:

	 	MOPU-1003-L Terms and Conditions Negotiation table
	 
	Importance:

	 	High
	 
	Attachments:

	 	MOPU-1003-0D-C — WES — Terms & Conditions Table.doc

Paul / Debbie / Roxane,

Please find attached revised terms and conditions negotiation table. Areas that are NOT highlighted
are items that require your review and comment.

Please return to me at your earliest opportunity. If you have any questions, please do not hesitate
in contacting me.

Regards,

Adam Dickens

Contracts Engineer

Lihir Services Australia Pty Ltd

www.lglgold.com 

 

 

Lihir Gold Limited Commercial Departures Tracking Sheet

	 	 	 	 	 	 	 
	Contract No:

	 	MOPU-1003
	 	LGL Contact:
	 	Adam Dickens
	Contract Name:

	 	Pressure Oxidation Autoclave
	 	External Contact:
	 	KNM — Paul McFarlane

	 	 	 	 	 	 	 	 	 
	No.	 	Clause	 	Contractor’s Position	 	Lihir’s Position	 	KNM / WES Response
	1.

	 	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
	 	Closed
	 
	 	 	 	 	 	 	 	 
	2.

	 	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.”
	 	Closed
	 
	 	 	 	 	 	 	 	 
	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.
	 	Closed
	 
	 	 	 	 	 	 	 	 
	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.
	 	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
	 
	 	 	 	 	 	 	 	 
	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
	 	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

• Dates must be shown next to every comment inserted.

• The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

• No contract will be finalised until the final resolution column has been incorporated into a contract and signed by the parties

 

 

Lihir Gold Limited Commercial Departures Tracking Sheet

	 	 	 	 	 	 	 
	Contract No:

	 	MOPU-1003
	 	LGL Contact:
	 	Adam Dickens
	Contract Name:

	 	Pressure Oxidation Autoclave
	 	External Contact:
	 	KNM — Paul McFarlane

	 	 	 	 	 	 	 	 	 
	No.	 	Clause	 	Contractor’s Position	 	Lihir’s Position	 	KNM / WES Response
	 

	 	 	 	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
	 	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

• Dates must be shown next to every comment inserted.

• The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

• No contract will be finalised until the final resolution column has been incorporated into a contract and signed by the parties

 

 

Lihir Gold Limited Commercial Departures Tracking Sheet

	 	 	 	 	 	 	 
	Contract No:

	 	MOPU-1003
	 	LGL Contact:
	 	Adam Dickens
	Contract Name:

	 	Pressure Oxidation Autoclave
	 	External Contact:
	 	KNM — Paul McFarlane

	 	 	 	 	 	 	 	 	 
	No.	 	Clause	 	Contractor’s Position	 	Lihir’s Position	 	KNM / WES Response
	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
	 	Closed
	 

	 	 	 	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”	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	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 

•     Dates must be shown next to every comment inserted.

•     The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

•     No contract will be finalised until the final resolution column has been incorporated into a contract and signed by the parties

 

 

Lihir Gold Limited Commercial Departures Tracking Sheet

	 	 	 	 	 	 	 
	Contract No:

	 	MOPU-1003
	 	LGL Contact:
	 	Adam Dickens
	Contract Name:

	 	Pressure Oxidation Autoclave
	 	External Contact:
	 	KNM — Paul McFarlane

	 	 	 	 	 	 	 	 	 
	No.	 	Clause	 	Contractor’s Position	 	Lihir’s Position	 	KNM / WES Response
	 

	 	 	 	merchandise 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 LGL
	 

	 	 	 	Item (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 LGL
	 
	 	 	 	 	 	 	 	 
	14.

	 	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 

•     Dates must be shown next to every comment inserted.

•     The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

•     No contract will be finalised until the final resolution column has been incorporated into a contract and signed by the parties

 

 

Lihir Gold Limited Commercial Departures Tracking Sheet

	 	 	 	 	 	 	 
	Contract No:

	 	MOPU-1003
	 	LGL Contact:
	 	Adam Dickens
	Contract Name:

	 	Pressure Oxidation Autoclave
	 	External Contact:
	 	KNM — Paul McFarlane

	 	 	 	 	 	 	 	 	 
	No.	 	Clause	 	Contractor’s Position	 	Lihir’s Position	 	KNM / WES Response
	15.

	 	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 LGL
	 

	 	 	 	 	 	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 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

•     Dates must be shown next to every comment inserted.

•     The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

•     No contract will be finalised until the final resolution column has been incorporated into a contract and signed by the parties

 

 

 Page 1 of 1

Adam Dickens

	 	 	 
	From:

	 	Adam Dickens
	 
	Sent:

	 	Thursday, 2 October 2008 12:14 PM
	 
	To:

	 	Paul McFarlane; Debbie Wyatt; Roxane Fitzroy
	 
	Cc:

	 	MOPU
	 
	Subject:

	 	MOPU-1003-L Autoclve supply — Insurances

Paul / Debbie / Roxane,

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?

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”?

We await your urgent response.

Regards,

Adam Dickens

Contracts Engineer

Lihir Services Australia Pty Ltd

www.lglgold.com 

 

 

 Page 1 of 1

Adam Dickens

	 	 	 
	From:

	 	Debbie Wyatt
	 
	Sent:

	 	Thursday, 2 October 2008 8:23 AM
	 
	To:

	 	Adam Dickens
	 
	Cc:

	 	Paul McFarlane; MOPU; Soheil; Roxane Fitzroy; GC Chew (EPD)
	 
	Subject:

	 	J0807701F — WES Insurance Schedules
	 
	Attachments:

	 	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

WES Ref: J0807701F

Hi Adam,

As requested please find attached WES Certificates of Insurances.

We hope the above is of assistance.

Best regards

W.E. Smith Engineering Pty Ltd

Debbie Wyatt

Debbie Wyatt

Sales Office Co-ordinator

Ph:

Fax: 

Email:

Website: www.wesknm.com.au

 

 

 

 

SCHEDULE OF COVER

Professional Indemnity

Our Reference: 08010215

INSURED

KNM Pty Ltd; HEA Australia Pty Ltd; WE Smith Engineering Pty Ltd and PT Heat Exchanger Indonesia
ftrr&i.

BUSINESS OF INSURED

Design and manufacture heat exchangers

PERIOD OF INSURANCE

31/12/07 to 31/12/08 At 4pm Local Time

	 	 	 
	SCOPE OF COVER

	 	: Section A — Public Liability

	 
	 	 
	 

	 	   Indonesia AUD            any one occurrence in excess of USD            any one occurrence

	 
	 	 
	 

	 	   Australia AUD            any one occurrence

	 
	 	 
	 

	 	   Section B — Pollution — Not applicable

	 
	 	 
	 

	 	   Section C — Products Liability

	 
	 	 
	 

	 	Indonesia AUD            any one occurrence and in the aggregate in excess of USD            any one occurrence and in the aggregate in any one period of insurance

	 
	 	 
	 

	 	   Australia AUD            any one occurrence and in the aggregate any one period of insurance

	 
	 	 
	 

	 	   Section D — Professional Indemnity

	 
	 	 
	 

	 	AUD            any one claim and in the aggregate in respect of all losses during the period of insurance

	 
	 	 
	GEOGRAPHICAL 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 Australia

	 
	 	 
	PERIOD

	 	: 31/12/07 to 31/12/08 At 4pm Local Time

	 
	 	 
	LIMITS OF LIABILITY

	 	: See Scope of Cover

	 
	 	 
	RETROACTIVE DATE

	 	: Unlimited in respect to Section D — Professional Indemnity

	 
	 	 
	EXCESS

	 	: Section A & C — Public and Products Liability

	 
	 	 
	 

	 	   each and every loss inclusive of costs and expenses

	 
	 	 
	 

	 	   Section B — Pollution Liability: Not applicable

OAMPS Insurance Brokers Ltd.

PO Box 222 Victoria Park WA 6979

 

 

	 	 	 
	 

	 	   Section D — Professional Indemnity

	 
	 	 
	 

	 	   including costs and expenses, each and every claim

	 
	 	 
	ENDORSEMENTS

	 	: Asbestos Exclusion

	 

	 	We 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 Endorsement

	 

	 	Notwithstanding 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

Combined Liability Insurance

Wording: PCA 94 (amended) including Professional Indemnity extension as attached

NOTES

Retroactive Date: Unlimited

Conformity Clause

Law and Jurisdiction Clause

LSW 1145 (02/02) Lloyd’s Australian Alternative Dispute Resolution Clause
Asbestos Exclusion

OAMPS Insurance Brokers Ltd.

PO Box 222 Victoria Park WA 6979

 

 

Care Custody or Control Exclusion

NMA 2802 (17/12/97) Electronic Date Recognition Exclusion (EDRE)

NMA 2920 (08/10/2001) Terrorism Exclusion Endorsement

POLICY EXCLUSIONS

Refer to Policy Document for full details of all Exclusions

	 	 	 	 	 	 	 
	INSURER

	 	 	 	 	 	PER CENT POLICY NO.
	 
	 	 	 	 	 	 
	HW Wood

	 	 	 	 	 	100.0000 PPL2591807
	38 Mary Avenue LONDON ENGLAND UK EC3A8BH
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Actual Insurers :
	 	 	 	 	 	 
	Brit Syndicates Ltd — Syndicate 2987

	 	 	100.0000	 	 	 
	55 Bishopsgate LONDON UK ECRN 3AS
	 	 	 	 	 	 

SPECIAL NOTE

This memorandum is prepared as a summary of the insurance policy. It is not a complete description
of all the policy’s terms, conditions and exclusions.

In determining a claim, or questions with regard thereto, the provisions of the policy will
prevail.

-ooOoo-

OAMPS Insurance Brokers Ltd.

PO Box 222 Victoria Park WA 6979

 

 

SCHEDULE OF INSURANCE

	 	 	 	 	 	 	 
	Policy Type:

	 	Industrial Special Risks	 	 	 	 
	Policy Number:

	 	332894701ISR	 	 	 	 
	Insurer:

	 	Zurich Aust Insurance Ltd	 	 	 	 
	Period of Insurance:

	 	31/12/07 4.00 pm Local Time to 31/12/08 4.00 pm Local Time	 	 	 	 
	Effective Date:

	 	31/12/07 	 	 	 	 
	Our Reference:

	 	07120241 	 	 	 	 
	 
	 	 	 	 	 	 
	Name of Insured:

	 	KNM Pty Ltd, HEA Australia Pty Ltd, W E Smith Engineering Pty Ltd and PT Heat Exchangers Indonesia FTRR&I	 	 	 	 
	 
	 	 	 	 	 	 
	Description of Business:

	 	All activities of the Insured, principally but not limited to:-	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Design and manufacture heat exchangers	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	And any other activities incidental thereto.	 	 	 	 
	 
	 	 	 	 	 	 
	Situation:

	 	As per schedule	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	And 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 Loss

	 	 

	 

	 	 	 	Any One Loss

	 

	 	 	 	Any One Location

	 
	 	 	 	 	 	 
	Sub-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	 	 	 	 

OAMPS Insurance Brokers Ltd.

PO Box 222 Victoria Park WA 6979

 

 

	 	 	 	 	 	 	 
	 

	 	Accidental Damage
	 	
	 

	 	Burglary & Theft of Property
	 	
	 

	 	Money
	 	
	 

	 	Directors/Employees/Visitors Personal Effects
	 	
	 

	 	Glass
	 	
	 

	 	Removal Of Debris
	 	
	 

	 	Extra Cost of Reinstatement
	 	
	 

	 	Cost of Rewriting Records
	 	
	 

	 	Expediting Expenses
	 	
	 
	 	 	 	 	 	 
	 

	 	Section 2 — Consequential Loss	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Professional Fees
	 	 	
	 

	 	Additional Increased Cost of Working
	 	
	 

	 	Public Utilities
	 	
	 

	 	Premises in the Vicinity (Prevention of Access)
	 	
	 
	 	 	 	 	 	 
	Indemnity Period:

	 	12 months months	 	 	 	 
	 
	 	 	 	 	 	 
	Uninsured Working Expenses:

	 	All Business Expenses which vary with the Turnover of the Business	 	 	 	 
	 
	 	 	 	 	 	 
	Declared Values:

	 	Section 1 — Property Damage	 	 	 	 
	 

	 	

Assets
	 	As per Schedule
	 
	 	 	 	 	 	 
	 

	 	Section 2 — Consequential Loss	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	All Gross Profit
	 	 	
	 

	 	Insured Payroll
	 	 	
	 

	 	Additional Increased Cost of Working
	 	 	
	 

	 	Professional Fees
	 	 	
	 
	 	 	 	 	 	 
	Deductible:

	 	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 eruption
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	An 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	 	 	 	332894701ISR	 
	PO Box 442 WEST PERTH WA 6872
	 	 	 	 	 	 	 	 

OAMPS Insurance Brokers Ltd.

PO Box 222 Victoria Park WA 6979

 

 

SPECIAL NOTE

This memorandum is prepared as a summary of the insurance policy. It is not a complete description
of all the policy’s terms, conditions and exclusions.

In determining a claim, or questions with regard thereto, the provisions of the policy will
prevail.

-ooOoo-

OAMPS Insurance Brokers Ltd.

PO Box 222 Victoria Park WA 6979

 

 

Schedule of Declared Assets

Our Reference: 07120241

OAMPS Insurance Brokers Ltd. 

PO Box 222 Victoria Park WA 6979

 

 

CRIME SECTION

PROPERTY INSURED

Declared Values

	 	 	 			 
	Section 1
—
	 	All Property Insured			 
	 	 	 			 
	Section 2
—
	 	All Gross Profit			 
	 
	 	Insured Payroll			 
	 
	 	Additional Increased Cost of Working			 
	 
	 	Professional Fees			 
	 
	 	 			 
	Limits of Liability			 
	 
	 	 			 
	Section 1
	 	 			 
	Section 2
	 	 			 
	 
	 	 			 
	Sub-Limits of Liability			 
	 
	 	 			 
	Section 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 Damage			 
	 
	 	 			 
	Section 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
	 	 weeks
	 	 
	Remaining Period

	 	25% for
	 	 weeks as defined herein	 	 
	Consolidation Period

	 	(Dual Basis)
	 	 weeks	 	 

PERILS INSURED

All forms of physical loss and/or damage except fire
and associated perils, subject to policy terms, conditions
and exclusions.

SUM INSURED

As Above

EXCESS

	 	 		 		 
	1. Earthquake, Subterranean Fire or Volcanic Eruption
	 		 		 
	 
	 		 		 
	a)     
or

	 		 		 
	b)      An amount equal to 1% of the total declared values
at the Situation where the damage occurs, whichever
is the lesser

	 		 		 
	 
	 		 		 
	2. Directors/Employees Personal Property
	 		 		 
	 
	 		 		 
	3. Public Utilities
	 		
	 
	 		 		 
	4. Premises
in the Vicinity (Prevention of Access)
	 		

 

 

	 	 	 	 	 
	5. All Other Losses
	 	   each and every claim.

GEOGRAPHIC LIMITS

As specified in the Assets Schedule and elsewhere in Australia where the
Insured has property and/or carries on Business, has goods and/or other
property stored and/or being processed or has work done.

 

 

SCHEDULE OF COVER

Marine Cargo/Transit Insurance

Our Reference: 08010259

INSURED

KNM Pty Ltd, HEA Australia Pty Ltd, W E Smith Engineering Pty Ltd and PT Heat Exchangers Indonesia
FTRR&I

PERIOD OF INSURANCE

From 31/12/07 to 31/12/08 at At 4pm Local Time

TYPE OF INSURANCE

Annual Policy

DESCRIPTION OF OPERATIONS

Design and manufacture heat exchangers

INTEREST INSURED

Merchandise consisiting of heat transfer
equipment, pressure vessels and ancillary
equipment and other interests held covered at
rates to be agreed. Insureds own plant and
equipment and office equipment also covered,
within Australia only.

GEOGRAPHIC LIMITS

World-Wide to World-Wide, including transits
within Australia and Indonesia.

CONVEYANCES

Steamers and/or powered vessels (approved or held
covered) and/or airfreight and/or connecting
conveyances and/or road and/or rail transport
and/or postal sendings and any combination thereof
or held covered.

LIMIT ANY ONE LOSS

	 	 	 	 	 
	Imports
	 	 	 	 
	Exports
	 	 	 	 
	Inland
	 	 	 	 

BASIS OF VALUATION

Overseas

CIF + 20%

Insured’s own plant and equipment and office equipment

Replacement Value

Inland or Indonesia

Invoice Value

METHODS OF TRANSPORT

As Per Conveyances

DESCRIPTION OF PACKING

OAMPS Insurance Brokers Ltd.

PO Box 222 Victoria Park WA 6979

 

 

Allianz Worker’s Compensation (NSW) Limited ACN 003 087 545 ABN 17 003 087 545

As agent for The NSW WorkCover Scheme ABN. 83 564 379 108 002

			
	 	 	 
	CERTIFICATE OF CURRENCY
	 	

11 August 2008

W E SMITH ENGINEERING PTY LTD

PO Box 274

COFFS HARBOUR NSW 2450

Dear Sir/Madam,

1. STATEMENT OF COVERAGE

The following policy of insurance covers the full amount of the employer’s liability under the Workers
Compensation Act 1987

This Certificate is valid from 11/08/2008 to 30/06/2009

The information provided in this Certificate of Currency is correct at: 11 August 2008

2.
EMPLOYERS INFORMATION

	 	 	 
	POLICY NUMBER

	 	MWP 0123637
	 
	 	 
	LEGAL NAME

	 	W E SMITH ENGINEERING PTY LTD
	 
	 	 
	TRADING NAME

	 	W E SMITH ENGINEERING PTY LTD
	 
	 	 
	ABN

	 	74 096 147 983
	 
	 	 
	ACN/ARBN

	 	096 147 983

	 	 	 	 	 	 	 	 	 	 	 	 	 
	WorkCover	 	 	 	 	 	 
	Industry	 	 	 	 	 	 
	Classification	 	 	 	 	 	 
	Number (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

Principals relying on this certificate should ensure it is accompanied by a statement under section
175B of the Workers Compensation Act 1987. Principals should also check and satisfy themselves that
the information is correct and ensure that the proper workers compensation insurance is in place,
ie. compare the number of employees on site to the average number of employees estimated; ensure
that the wages are reasonable to cover the labour component of the work being performed; and
confirm that the description of the industry/industries noted is appropriate.

A principal contractor may become liable for any outstanding premium of the sub-contractor if the
principal has failed to obtain a statement or has accepted a statement where there was reason to
believe it was false.

Yours Faithfully,

	 	 	 
	Carly Smith
	 	 
	Carly Smith
	 	 
	Authorised Officer

	 	
	Agent Underwriting Department
	 
	Phone: 1300 130 664 Fax: 02 9266 7223
	 
	 
	 	 
	GPO Box 5429
	 	 
	Sydney 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.

	 	 
	 	 	 	 
	 	 
	 	 	 	Excess
	 	 
	 	 	 	 
	 	 
	 	 	 	on all plate rolling machines and any items of plant with a declared
value of $200,000
	 	 
	 	 	 	 
	 	 
	 	 	 	on all other items
	 	 
	 	 	 	 
	 	 
	2.	 	 	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.
	 	 
	 	 	 	 
	 	 
	 	 	 	Excess
	 	 
	 	 	 	 
	 	 
	 	 	 	on any items of plant with a declared value of
$200,000, and all plate rolling machines
	 	 
	 	 	 	 
	 	 
	 	 	 	on all other items
	 	 
	 	 	 	 
	 	 
	3.	 	 	Boilders and Unfired Pressure Vessels,
together with associated pressure pipe
systems connected thereto.

	 	 
	 	 	 	 
	 	 
	 	 	 	Excess
	 	 
	 	 	 	 
	 	 
	 	 	 	 
	 	 
	 	 	 	 
	 	 
	4.	 	 	Computer and Peripheral Equipment Breakdown
 on insured equipment as per the following
schedule:
	 	 
	 	 	 	 
	 	 
	 	 	 	Schedule of Equipment to be supplied
	 	 
	 	 	 	 
	 	 
	 	 	 	Excess
	 	 
	 
	 	 	 	 
	 	 

OAMPS Insurance Brokers Ltd. 
PO
Box 222 Victoria Park WA 6979

 

 

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

	 	 
	 	 	 	 
	 	 
	 	 	 	Excess
	 	 
	 	 	 	 
	 	 
	 	 	 	 
	 	 
	 	 	 	 
	 	 
	6.	 	 	Option
B: 
Increased Cost of
Working following insured
damage to insured equipment
covered under Item No. 4.

	 	 
	 	 	 	 
	 	 
	 	 	 	Indemnity Period: 3 months
	 	 
	 	 	 	 
	 	 
	 	 	 	Excess
	 	 
	 	 	 	 
	 	 
	 	 	 	 
	 	 

SITUATION/S

Boambee, NSW

Kewdale, WA

OAMPS Insurance Brokers Ltd. 
PO Box
222 Victoria Park WA 6979

 

 

SCHEDULE OF COVER

Motor Fleet

Reference: 08010114

INSURED

KNM Pty Ltd, HEA Australia Pty Ltd, W E Smith Engineering Pty Ltd and PT Heat Exchanges Indonesia
FTRR&I

DESCRIPTION OF OPERATIONS

Design and manufacture heat exchangers

PERIOD OF INSURANCE

31/12/07 to 31/12/08 At 4pm Local Time

COVERING

All vehicles, owned, leased or acquired by the Insured or for which the Insured is responsible.
Refer to schedule attached.

SUMS INSURED

Material Damage Cover

Where Cover is Comprehensive or Third Party, Fire & Theft — see Schedule. 

Where Cover is Third Party Only — Material Damage is not Insured.

Third Party Liability Cover

Third Party Property Damage Cover

in respect of all claims arising out of any one accident or series of accidents arising
out of one event.

Third Party Bodily Injury Supplementary Cover

in respect of all claims arising out of any one accident or series of accidents arising out of
one event.

EXCESSES (Each and every claim)

As per schedule, plus young and inexperienced drivers’ excesses.

POLICY WORDING

QBEMM Policy Wording QM202

NOTES

INTERESTED PARTY

1. BMW Finance

2. St Georges Commercial Finance Ltd

3. National Australia Bank Ltd

4. GE Automotive Financial Services Pty Ltd

5. ANZ Bank

	 	 	 	 	 	 	 	 	 
	INSURER	 	PERCENT	 	POLICY NO.
	QBE Insurance (Australia) Limited  200 St George’s Terrace PERTH WA 6000
	 	 	100.0000	 	 	 	41A399050MVA	 

SPECIAL NOTE

This memorandum is prepared as a summary of the insurance policy. It is not a complete
description of all the policy’s terms, conditions and exclusions.

In determining a claim, or questions with regard thereto, the provisions of the policy will
prevail.

-ooOoo-

 

 

SCHEDULE OF VEHICLES

Reference: 08010114

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Item	 	Regn	 	Year	 	Description	 	Sum Insd	 	Cover	 	Excess
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	1

	 	 	 	 	2002	 	 	Mitsubishi Triton Ute
	 	Market Value
	 	Comprehensive
	 	 	 	 
	2

	 	 	 	 	2003	 	 	Toyota Hilux
	 	Market Value
	 	Comprehensive
	 	 	 	 
	3

	 	 	 	 	2005	 	 	Holden Rodeo
	 	Market Value
	 	Comprehensive
	 	 	 	 
	4

	 	 	 	 	2006	 	 	Nissan Pulsar Sedan
	 	Market Value
	 	Comprehensive
	 	 	 	 
	5

	 	 	 	 	2003	 	 	Mitsubishi Lancer Sedan
	 	Market Value
	 	Comprehensive
	 	 	 	 
	6

	 	 	 	 	2004	 	 	Holden Acclaim
	 	Market Value
	 	Comprehensive
	 	 	 	 
	7

	 	 	 	 	2005	 	 	Holden Commodore Equipe
	 	Market Value
	 	Comprehensive
	 	 	 	 
	8

	 	 	 	 	1998	 	 	Ford Falcon Sedan
	 	Market Value
	 	Comprehensive
	 	 	 	 
	9

	 	 	 	 	2002	 	 	Ford Falcon AU Forte
	 	Market Value
	 	Comprehensive
	 	 	 	 
	10

	 	 	 	 	2002	 	 	Ford Falcon AU Forte
	 	Market Value
	 	Comprehensive
	 	 	 	 
	11

	 	 	 	 	2003	 	 	Nissan Navara OX
	 	Market Value
	 	Comprehensive
	 	 	 	 

 

 

SCHEDULE OF COVER

Medical Expenses/Repatriation

Our Reference 08010150

INSURED

KNM Pty Ltd, HEA Australia Pty Ltd, W E Smith Engineering Pty Ltd and PT Heat Exchangers Indonesia
FTRR&I

DESCRIPTION OF OPERATIONS

Design and manufacture heat exchangers

PERIOD OF INSURANCE

31/12/07 to 31/12/08 At 4pm Local Time

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	 	Single
	1.

	 	Medical Expenses
	 	 	 	 
	 
	 	 	 	 	 	 
	2.

	 	Emergency Medical Evacuation
	 	 	 	 
	 
	 	 	 	 	 	 
	3.

	 	Repatriation of Mortal Remains
	 	 	 	 
	 
	 	 	 	 	 	 
	4.

	 	Personal Injury	 	

	 

	 	Events 1-16 Lump Sum Benefit	 	 
	 

	 	Event 17 Temporary Total Disablement Weekly Benefit Amount
	 	 
	 
	 	 	 	 	 	 
	5.

	 	Personal Liability
	 	 
	 
	 	 	 	 	 	 
	6.

	 	Kidnap, Ransom & Extortion	 	 	 	 
	 

	 	Insuring Clause 1
	 	 
	 

	 	Insuring Clause 2
	 	 
	 

	 	Insuring Clause 3
	 	 
	 
	 	 	 	 	 	 
	7.

	 	Political Evacuation
	 	 

	 	 	 	 	 	 	 
	 	 	 	 	Sums Insured
	 	 	 	 	(each Insured Person)
	Coverage Section	 	Couple/Family
	1.

	 	Medical Expenses
	 	 	 	 
	 
	 	 	 	 	 	 
	2.

	 	Emergency Medical Evacuation
	 	 	 	 
	 
	 	 	 	 	 	 
	3.

	 	Repatriation of Mortal Remains
	 	 	 	 
	 
	 	 	 	 	 	 
	4.

	 	Personal Injury	 	 	 	 
	 

	 	Events 1-16 Lump Sum Benefit
	 	 
	 

	 	Event 17 Temporary Total Disablement Weekly Benefit Amount
	 	 

OAMPS Insurance Brokers Ltd.

PO Box 222 Victoria Park WA 6979

 

 

	 	 	 	 	 
	5.

	 	Personal Liability
	 	 
	 
	 	 	 	 
	6.

	 	Kidnap, Ransom & Extortion	 	 
	 

	 	Insuring Clause 1
	 	 
	 

	 	Insuring Clause 2
	 	 
	 

	 	Insuring Clause 3
	 	 
	 
	 	 	 	 
	7.

	 	Political Evacuation
	 	 

PERILS INSURED 

Insured Persons

Nominated Expatriate Employees declared to and accepted by Us, including
their accompanying Spouse and Dependant Children.

Schedule of Insured Persons

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Country of	 	Commencement	 	Pre-Existing
	Insured Person	 	Dependants	 	Residence	 	Date	 	Conditions Excl
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

SUM INSURED

See Above

EXCESS

Coverage Section 1 — Medical Expenses

Annual Aggregate — Single

Annual Aggregate — Couple

Annual Aggregate — Family

All Other Sections — Nil each and every claim.

GEOGRAPHIC LIMITS

As Per Policy

POLICY WORDING

Expatriate Medical Insurance Policy Wording

NOTES

It is hereby declared and agreed that the Premium is subject to
adjustment at the following rate upon the Policyholder declaring
to Us the Insured Person to be covered.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Annual	 	 	 	 
	 	 	Premium	 	GST	 	Stamp Duty
	Single (expat)
	 	 	 	 	 	 	 	 
	Single (Inpat)
	 	 	 	 	 	 	 	 	 	 	 	 
	Couple
	 	 	 	 	 	 	 	 
	Family
	 	 	 	 	 	 	 	 

OUT OF POCKET EXPENSES

The coverage afforded to Insured Persons is extended to

OAMPS
Insurance Brokers Ltd. 
PO
Box 222 Victoria Park WA 6979

 

 

include reasonable out of pocket expenses incurred as a
result of Accidental Bodily Injury or sickness or disease
subject to a maximum benefit of eighty percent (80%) of the
expenses incurred to a maximum limit of $500 each and every
claim.

DISCRETIONARY PAYMENTS

We will consider, in our absolute discretion, paying Medical
Expenses (as defined) incurred in Australia and subject to
all other terms, conditions and exclusions of the Policy
where:

	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; and
	 
	d)	 	the Medical Expenses are incurred within 13 months of
the Insured Person permanently returning to Australia.

If We exercise our discretion, We will only pay the
benefits that would otherwise have been payable to the
Insured Person from the Australian registered Health
Fund.

	 	 	 	 	 	 	 	 	 
	INSURER	 	PER CENT	 	POLICY NO.
	Chubb Insurance Co Ltd
	 	 	100.0000	 	 	 	93105628	 
	Level 22 Exchange Plaza 2 The Esplanade PERTH WA 6000
	 	 	 	 	 	 	 	 

SPECIAL NOTE

This memorandum is prepared as a summary of the insurance policy. It is not a complete description
of all the policy’s terms, conditions and exclusions.

In determining a claim, or questions with regard thereto, the provisions of the policy will
prevail.

-ooOoo-

OAMPS Insurance Brokers Ltd.
 PO Box 222 Victoria Park WA 6979

 

 

SCHEDULE OF COVER

Corporate Travel

Our Reference: 07120234

INSURED

KNM Pty Ltd, WE Smith Engineering Pty Ltd, PT Heat Exchangers Indonesia and HEA Australia Pty Ltd
in lieu of Heat Exchangers Australia Pty Ltd

BUSINESS OF INSURED

Design and manufacture heat exchangers

PERIOD OF INSURANCE

31/12/07 to 31/12/08 At 4pm Local Time

INSURED PERSONS

All Directors, Executives, Employees including their
accompanying Spouse/Partner and their Dependent Children

SCOPE OF COVER

Insured Persons whilst engaged on authorised business travel exceeding 100
kilometers from point of departure to the intended destination, including
associated holiday travel.

GEOGRAPHICAL LIMITS

Worldwide

PERIOD OF COVER

From the time the Insured Person leaves his or her normal place of business or normal residence
whichever is the point of departure for such travel, and continue on a 24 hour basis until the
Insured Person returns to his or her normal place of business or residence whichever first occurs.

BENEFITS

AGGREGATE LIMITS OF LIABILITY

	 	 	 	 	 	 	 
	Section 1 —	 	Personal Injury
	 	 	 	 
	 	 	(i) Any one Accident or Occurrence
	 	 	 	 
	 	 	(ii) Non Scheduled Air Travel
	 	 	 	 
	 	 	— Single Engine
	 	 	 	 
	 	 	— Multi Engine
	 	 	 	 
	 	 	— Helicopter
	 	 	 	 
	 	 	 
	 	 	 	 
	Section 11 —	 	Extra Territorial Workers Compensation
	 	 	 	 
	 	 	 
	 	 	 	 
	Section 12 —	 	Kidnap, Ransom & Extortion
	 	 	 	 
	 	 	 
	 	 	 	 
	Section 13 —	 	Political Evacuation & Natural Disaster
Expenses
	 	 	 	 

OAMPS Insurance Brokers Ltd.
 PO Box 222 Victoria Park WA 6979

 

 

SCHEDULE OF SUMS INSURED

	 	 	 	 	 	 	 	 	 
	 	1.	 	 	Personal Injury 
	 	 	 	 
	 	 	 	 	If Spouse/Partner and
Dependant Children are covered by the Policy, please
refer below for the Sums Insured
under Coverage Section 1.
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	Event 1 Death

	 	 	 	 
	 	 	 	 	Event 2 Permanent Total Disablement

	 	 	 	 
	 	 	 	 	Events 3-19 Other Permanent Disablement

	 	 	 	 
	 	 	 	 	Event 20 Temporary Total Disablement

	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	Spouse/Partner
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	Event 1 Death

	 	 	 	 
	 	 	 	 	Event 2 Permanent Total Disablement

	 	 	 	 
	 	 	 	 	Events 3-19 Other Permanent Disablement

	 	 	 	 
	 	 	 	 	Event 20 Temporary Total Disablement

	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	Dependant Children
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	Event 1 Death

	 	 	 	 
	 	 	 	 	Event 2 Permanent Total Disablement

	 	 	 	 
	 	 	 	 	Events 3-19 Other Permanent Disablement

	 	 	 	 
	 	 	 	 	Event 20 Temporary Total Disablement

	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	2.	 	 	Medical Expenses

	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	3.	 	 	Emergency Medical Evacuation

	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	4.	 	 	Repatriation of Mortal Remains

	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	5.	 	 	Cancellation/Curtailment/Additional Expenses

	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	6.	 	 	Personal Liability

	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	7.	 	 	Luggage, Personal Effects, Travel
Documents, Money & Credit Cards

	 	 	 	 
	 	 	 	 	Specified Items: Portable Business Equipment

	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	8.	 	 	Alternative Employee or Resumption
of Assigment Expenses

	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	9.	 	 	Rental Vehicle Collision Damage & Theft Excess Cover

	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	10.	 	 	Missed Transport Connection

	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	11.	 	 	Extra Territorial Workers Compensation
	 	 	 	 
	 	 	 	 	Weekly Benefits

	 	 	 	 
	 	 	 	 	Common Law

	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	12.	 	 	Kidnap, Ransom & Extortion
	 	 	 	 
	 	 	 	 	Insuring Clause 1

	 	 	 	 
	 	 	 	 	Insuring Clause 2

	 	 	 	 
	 	 	 	 	Insuring Clause 3

	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	13.	 	 	Political Evacuation & Natural
Disaster Expenses

	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	14.	 	 	Corporate Traveller’s Family
Assistance

	 	 	 

DEDUCTIBLE

	 	 	 
	Temporary Total Disablement — Weekly
	 	 
	Benefits — Injury

	 	 
	Luggage

	 	 
	Portable Business Equipment		

OAMPS Insurance Brokers Ltd.
 PO Box 222 Victoria Park WA 6979

 

 

POLICY WORDING

Corporate Travel Policy (CTIP 0107)

	 	 	 	 	 	 	 	 	 
	INSURER	 	PER CENT	 	POLICY NO.
	Chubb Insurance Co Ltd
	 	 	100.0000	 	 	 	93102492	 
	Level 22 Exchange Plaza 2 The Esplanade PERTH WA 6000
	 	 	 	 	 	 	 	 

SPECIAL NOTE

This memorandum is prepared as a summary of the insurance policy. It is not a complete description
of all the policy’s terms, conditions and exclusions.

In determining a claim, or questions with regard thereto, the provisions of the policy will
prevail.

OUR REMUNERATION

We will receive commission from the insurer identified above of           inclusive of GST.

COOLING OFF PERIOD

If you decide that you do not require the insurance policy we have recommended, you have 14 days (or
longer if the insurer allows it) from the earlier of the date you receive confirmation of the insurance
contract and the date it was arranged, to change your mind. Check the Product Disclosure Statement
and/or the product issuer’s Policy Wording for details. If you do not want the insurance, you must
tell us in writing that you wish to return the insurance contract and have the premium refunded.

If you do so the insurance contract will be terminated from the time your insurer was notified. The
insurer may retain its reasonable administration and transaction costs and a short-term premium.

You cannot return the contract of insurance if it has already expired or if you have a made a claim
against it.

IMPORTANT NOTICE

You should refer to the Product Disclosure Statement which contains information about this particular
financial product to help you make an informed decision in regard to this product.

-ooOoo-

OAMPS Insurance Brokers Ltd.
 PO Box 222 Victoria Park WA 6979

 

 

Page 1 of 3

Adam Dickens

	 	 	 
	From:

	 	Debbie Wyatt
	 
	Sent:

	 	Wednesday, 1 October 2008 2:12 PM
	 
	To:

	 	Adam Dickens
	 
	Cc:

	 	Paul McFarlane; Roxane Fitzroy; Soheil; GC Chew (EPD); MOPU
	 
	Subject:

	 	MOPU-1003-L Autoclave Information
	 
	Importance:

	 	High
	 
	Attachments:

	 	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

WES Ref: J0807701F (KNM Ref: K0807036)

Adam

Please find our response to your queries embedded in bold & italics in your email below.
Relevant information also attached hereto.

We hope the above is of assistance. If you have any further queries please do not hesitate to
contact us.

Best regards

W.E. Smith Engineering Pty Ltd

Debbie Wyatt

Debbie Wyatt

Sales Office Co-ordinator

Ph:           (Direct)

Fax: 

Email: 

Website: www.wesknm.com.au

	 	 	 
	From:

	 	Adam.Dickens
	Sent:

	 	Tuesday, 30 September 2008 12:59
	To:

	 	Debbie Wyatt; Paul McFarlane; Roxane Fitzroy
	Cc:

	 	MOPU_0801@lglgold.com
	Subject:

	 	MOPU-1003-L Autoclave Information
	Importance:

	 	High

Paul / Debbie / Roxane,

Further to recent communications regarding the MOPU Project Autoclave, LGL would like the
following information from KNM / WE Smith.

	 	•	 	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           .

 

 

Page 2 of 3

	 	•	 	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.

Please stipulate the entity that LGL would enter into a contract with, if your company is
successful, for the supply of the Autoclave?

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.

Please submit this information by close of business Wednesday 1st
October, 2008.

If you have any queries with the above, please contact the
undersigned.

Regards,

Adam Dickens

Contracts Engineer

Lihir Services Australia Pty Ltd

www.lglgold.com

***DISCLAIMER NOTICE ***

“This e-mail and any files transmitted with it is confidential and is intended only for the use of
the recepient(s) named above.

If you are not the intended recipient, any review, retransmission, dissemination, distribution,
printing, copying or use the information contained in this message or any part thereof in other
manner is strictly prohibited.

If you receive this e-mail in error, please notify the sender immediately by return e-mail and
delete
the e-mail and any of its attachments.

Any personal views or opinions expressed by the sender shall be understood as neither given nor
endorsed by KNM or any of the companies within the Group.”

***DISCLAIMER NOTICE ***

“This e-mail and any files transmitted with it is confidential and is intended only for the use of
the recepient(s) named above.

If you are not the intended recipient, any review, retransmission, dissemination, distribution,

 

 

Page 3 of 3

printing, copying or use the information contained in this message or any part thereof in other
manner is strictly prohibited.

If you receive this e-mail in error, please notify the sender immediately by return e-mail and
delete the e-mail and any of its attachments.

Any personal views or opinions expressed by the sender shall be understood as neither given nor
endorsed by KNM or any of the companies within the Group.”

***DISCLAIMER NOTICE ***

“This e-mail and any files transmitted with it is confidential and is intended only for the use of
the recepient(s) named above.

If you are not the intended recipient, any review, retransmission, dissemination, distribution,
printing, copying or use the information contained in this message or any part thereof in other
manner is strictly prohibited.

If you receive this e-mail in error, please notify the sender immediately by return e-mail and
delete the e-mail and any of its attachments.

Any personal views or opinions expressed by the sender shall be understood as neither given nor
endorsed by KNM or any of the companies within the Group.”

 

 

LGL

MILLION OUNCE PLANT UPGRADE (MOPU)

EQUIPMENT SUPPLY TENDER

SECTION IV FORM OF TENDER

	 	 	 
	Date:

	 	1 OCT 2008
	Name of Tender:

	 	W. E. SMITH ENG PIL / KNM PROCESS SYS
	Proposal Number:

	 	J0807701F / K0807036
	Validity of Proposal:

	 	30 days
	Equipment:

	 	AC2004 — Pressure Oxidation Autoclave
	Make:
	 	 
	Model:
	 	 
	Type:
	 	 
	Manufacturer:

	 	KNM PROCESS SYSTEMS SON BHD
	Dealer distributor in Country:

	 	MALAYSIA

 

 

LGL EQUIPMENT SUPPLY TENDER

	 	 	 
	Equipment Tender # and Description

	 	Autoclave
	Tenderer’s Name:
	 	 
	 
	 	 
	All prices to be in Australian or US currency (refer clause 4 of Section 1 Part A)
	 	 
	Currency of Manufacturer’s Quotation
	 	 
	Location 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
	 	EA	 	 	 	 	 	 	 	 	 	 	 	 
	Equipment Options
	 	EA	 	 	 	 	 	 	 	 	 	 	 	 
	Special Tools
	 	EA	 	 	 	 	 	 	 	 	 	 	 	 
	Extended Warranty Costs (if applicable)
	 	EA	 	 	 	 	 	 	 	 	 	 	 	 
	Discount (if any)
	 	EA	 	 	 	 	 	 	 	 	 	 	 	 
	Export Packing
	 	EA	 	 	 	 	 	 	 	 	 	 
	Loading to
Transport (FCA KNM workshop)
	 	EA	 	 	 	 	 	 	 	 	 	 
	Forward Cover Foreign Currency Risk (if any)
	 	EA	 	 	 	 	 	 	 	 	 	 	 	 
	Subtotal FCA (Incoterms 2000) Point of Manufacture (KNM Workshop)
	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Freight/Logistics Cost Breakdown	 	UOM	 	QTY	 	Unit Cost	 	Extended
	Freight to
nearest Seaport (FOB Malaysia Nearest Port of Export)
	 	EA	 	 	1	 	 	 	 	 	 	 	 	 
	Customs/Port Terminal Charges (if any)
	 	EA	 	 	 	 	 	 	 	 	 	 	 	 
	Forward Cover Foreign Currency Risk (if any)
	 	EA	 	 	 	 	 	 	 	 	 	 	 	 
	Subtotal
FOB Malaysia Port (Incoterms 2000) Seaport
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL 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 (Include details)

Please refer propose payment team as per our proposal dated 29th Sept 2008.

Cancellation
charges (Include details such as Schedule and values)

Please refer propose cancellation charge as per our proposal dated 29th Sept 2008.

Point(s) of Manufacture

Specify City and State (if applicable) for each point(s) of supply

KNM Malaysia Shop (Melaka, Gebeng/Kuantan Shop)

Shipment Location

State location where cargo will be available for shipment

(Port Klang/Kuantan Port)

Sub-Suppliers

Provide list of all major/critical components from sub-supplier. State
sub-supplier name and location of component manufacture.

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 weeks
	Frequency of updates

	 	 of weeks

	 	 	 
	Liquidated Damages — Manufacturer’s Proposal, Subject to Assessment by LGL(Include details)
	 	 
	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
	 	 
	List all extended warranties for the Equipment and components
	 	 
	 
	 	 
	Extended Warranty Cost (if applicable)

	 	N/A
	 
	 	 
	Other Details (Add information if required)
	 	 
	N/A
	 	 
	 
	 	 
	Does the Seller accept the Warranty Terms and Conditions?

	 	Yes o
	 

	 	No 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 approval
	 	 	 	 
	Number of days from date of Purchase Order

	 	 	 	 
	 
	 	 	 	 
	Final Certified Engineering Drawings
	 	 	 	 
	Number of days from date of approved preliminary drawings

	 	 	 	 
	 
	Final Certified (Where preliminary drawings are not required for approval)
	 	 	 	 
	Number of days from date of Purchase Order

	 	 	 	 
	 
	 	 	 	 
	Operators Manuals (Installation, Operation, Maintenance and Training)
	 	 	 	 
	Operator Manuals in addition to requirements outlined in Section I
	 	 	 	 
	Additional sets (Indicate cost if applicable)

	 	 	N/A	 
	Electronic sets — CD-R (Indicate cost if applicable)

	 	 	N/A	 
	 
	 	 	 	 
	Parts Manuals (Including Bearings, Seals, and Filter Conversions)
	 	 	 	 
	Parts Manuals in addition to requirements outlined in Section I
	 	 	 	 
	Additional sets (Indicate cost if applicable)

	 	 	N/A	 
	Electronic sets — CD-R (Indicate cost if applicable)

	 	 	N/A	 
	 
	 	 	 	 
	Quality Assurance/Quality Control (Include details)
	 	 	 	 
	See ISO/ U Stamp as per attached.
	 	 	 	 
	 
	 	 	 	 
	Health Safety Environmental & Human Rights Compliance (Include details)
	 	 	 	 
	See HSE as per attached.
	 	 	 	 

Tools (Special tools required for installation operation and maintenance of Equipment)

	 	 	 	 	 
	Description	 	Amount
	N/A
	 	 	 	 
	 
	 	 	 	 
	Total
	 	$	0.00	 

Control Local/Overseas Content

	 	 	 	 	 
	Description	 	Amount
	Not Applicable (We are self-operating)
	 	 	 	 
	 
	 	 	 	 
	Total Contract Value
	 	$	0.00	 

					
	 	 	 	 	 
	Section IV — Form of Tender
	 	Commercial Details
	 	Page 3

 

 

LGL EQUIPMENT SUPPLY TENDER

COMMERCIAL DETAILS

Additional
Items / Details (if required)

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 Ex	 	 
	Item	 	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

State delivery in number of weeks from date of
Purchase Order for the following:

	 	 	 	 	 
	Manufacture and Supply
	 	 	 	 
	 
	 	 	 	 
	Delivery Completion Date
	 	 	 	 
	 
	 	 	 	 

Table 2.3 Witnessed and Verified Performance
Tests

List the Tests that need to be witnessed and verified and detail if the cost of these tests is
included in the Tendered Price

	 	 	 	 	 	 	 
	Component and Test	 	Cost Included?	 	 	 	Cost
	N/A

	 	N/A	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	Total 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 Packing
	 	 
	Freight (to nearest Port of Exit) (Malaysia Nearest Port)

	 	 
	Ocean Freight to Port of Entry

	 	 
	Customs/Port Terminal Charges (if any)

	 	 	 	 
	Inland Freight to Project Site

	 	 
	      TOTAL COST

	 	 	 	 
	 
	Parts 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, Australia

Other locations for spare parts supportf (State name and address)

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
	 	 	 	 
	 
	 	 	 	 

Recommended major components as consignment stock at Work Site without cost to Buyer

(Tenderer to provide separate of major components or modules in Excel format) N/A

Recommended 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

 

 

          

					
	 	 	 	 	 
	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 Agreement	 	 	 	 	 
	Item	 	Award	 	(Y/N)	 	 	 	 	 
	DATA WITH TENDER
	 	 	 	 	 	 	 	 	 	 
	Preliminary general arrangement drawing
	 	With Tender	 	 	 	 	 	 	 	 
	Proposed manufacturing Schedule
	 	With Tender	 	 	 	 	 	 	 	 
	Recommended commissioning & capital spares
	 	With Tender	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	DATA AFTER AWARD
	 	 	 	 	 	 	 	 	 	 
	Detailed 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 schedule
	 	 	 	 	 	 	 	 	 	 
	Inspection and test plan
	 	 	 	 	 	 	 	 	 	 
	Operating and maintenance manuals:
	 	 	 	 	 	 	 	 	 	 
	•   Preliminary
	 	N/A	 	 	 	 	 	 	 	 
	•   Final
	 	At delivery	 	 	 	 	 	 	 	 
	As-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 Dickens
	Contract Name:
	 	Pressure Oxidation Autoclave	 	External Contact:	 	KNM — Paul McFarlane

	 	 	 	 	 	 	 	 	 
	No.	 	Clause	 	Contractor’s Position	 	Lihir’s Position	 	KNM / WES Response
	1.
	 	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	 	Closed
	 
	 	 	 	 	 	 	 	 
	2.

	 	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)
	 	Closed
	 
	 	 	 	 	 	 	 	 
	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.
	 	Closed
	 
	 	 	 	 	 	 	 	 
	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.
	 	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
	 
	 	 	 	 	 	 	 	 
	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.
	 	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

• Dates must be shown next to every comment inserted.

• The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

• No contract will be finalised until the final resolution column has been incorporated into a contract and signed by the parties

 

 

Lihir Gold Limited Commercial Departures Tracking Sheet

	 	 	 	 	 	 	 
	Contract No:
	 	MOPU-1003	 	LGL Contact:	 	Adam Dickens
	Contract Name:
	 	Pressure Oxidation Autoclave	 	External Contact:	 	KNM — Paul McFarlane

	 	 	 	 	 	 	 	 	 
	No.	 	Clause	 	Contractor’s Position	 	Lihir’s Position	 	KNM / WES Response
	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
	 	Closed
	 
	 	 	 	 	 	 	 	 
	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.
	 
	 	 	 	 	 	 	 	 
	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.
	 	Closed
	 
	 	 	 	 	 	 	 	 
	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
	 	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

• Dates must be shown next to every comment inserted.

• The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

• No contract will be finalised until the final resolution column has been incorporated into a contract and signed by the parties

 

 

Lihir Gold Limited Commercial Departures Tracking Sheet

	 	 	 	 	 	 	 
	Contract No:
	 	MOPU-1003	 	LGL Contact:	 	Adam Dickens
	Contract 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 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 LGL
	 
	 	 	 	 	 	 	 	 
	14.

	 	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
	 
	 	 	 	 	 	 	 	 
	15.

	 	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 LGL
	 
	 	 	 	 	 	 	 	 
	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

• Dates must be shown next to every comment inserted.

• The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

• No contract will be finalised until the final resolution column has been incorporated into a contract and signed by the parties

 

 

Page 1 of 1

	 	 	 	 	 
	 	 	Anne Smith
	 
	 	 	 	 
	 

	 	From:
	 	Adam Dickens
	 
	 

	 	Sent:
	 	Tuesday, 30 September 2008 12:59 PM
	 
	 

	 	To:
	 	Debbie Wyatt; Paul McFarlane; Roxane Fitzroy
	 
	 

	 	Cc:
	 	MOPU
	 
	 

	 	Subject:
	 	MOPU-1003-L Autoclave Information
	 
	 

	 	Importance:
	 	High

Paul / Debbie / Roxane,

Further to recent communications regarding the MOPU Project Autoclave, LGL would like the
following information from KNM / WE Smith.

	 	•	 	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?

Please submit this information by close of business Wednesday 1st
October, 2008.

If you have any queries with the above, please contact the
undersigned.

Regards,

Adam Dickens

Contracts Engineer

Lihir Services Australia Pty Ltd

 www.lglgold.com

 

 

Lihir Gold Limited Commercial Departures Tracking Sheet

	 	 	 	 	 	 	 
	Contract No:

	 	MOPU-1003
	 	LGL Contact:
	 	Adam Dickens
	Contract Name:

	 	Pressure Oxidation Autoclave
	 	External Contact:
	 	 KNM — Paul McFarlane

	 	 	 	 	 	 	 	 	 
	No.	 	Clause	 	Contractor’s Position	 	Lihir’s Position	 	Final Resolution
	1.

	 	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	 	 
	 
	 	 	 	 	 	 	 	 
	2.

	 	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

• Dates must be shown next to every comment inserted.

• The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

• No contract will be finalised until the final resolution column has been incorporated into a contract and signed by the parties

 

 

Lihir Gold Limited Commercial Departures Tracking Sheet

	 	 	 	 	 	 	 
	Contract No:

	 	MOPU-1003
	 	LGL Contact:
	 	Adam Dickens
	Contract Name:

	 	Pressure Oxidation Autoclave
	 	External Contact:
	 	KNM — Paul McFarlane

	 	 	 	 	 	 	 	 	 	 	 
	No.	 	Clause	 	Contractor’s Position	 	Lihir’s Position	 	Final Resolution
	7.

	 	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

• Dates must be shown next to every comment inserted.

• The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

• No contract will be finalised until the final resolution column has been incorporated into a contract and signed by the parties

 

 

Lihir Gold Limited Commercial Departures Tracking Sheet

	 	 	 	 	 	 	 
	Contract No:
	 	MOPU-1003	 	LGL Contact:	 	Adam Dickens
	Contract 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 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.	 	 
	 
	 	 	 	 	 	 	 	 
	14.
	 	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.	 	 
	 
	 	 	 	 	 	 	 	 
	15.
	 	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.	 	 
	 
	 	 	 	 	 	 	 	 
	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.	 	 
	 
	 	 	 	 	 	 	 	 
	17.
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	18.
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	19.
	 	 	 	 	 	 	 	 

IMPORTANT

• Dates must be shown next to every comment inserted.

• The “Final Resolution” column is only to be completed when BOTH parties agree on the final position.

• No contract will be finalised until the final resolution column has been incorporated into a contract and signed by the parties

 

 

Page 1 of 3

Anne Smith

From: Debbie Wyatt

Sent: Monday, 29 September 2008 9:19 AM

To: Adam Dickens

Cc: PaulMcFarlane; Roxane
Fitzroy; Soheil; EPDI; GC Chew (EPD)

Subject: RE: MOPU-1003-L LGL Pressure Autoclave — Further clarification / information

WES Ref: J0807701F

Hi Adam

Further to our email on Friday and subsequent discussion with Paul McFarlane, please find
attached our corrected quotation. We have also made some slight adjustments to our responses below.

If you have any queries please do not hesitate to contact us.

Please confirm receipt ................. thankyou.

Best regards

W.E. Smith Engineering Pty Ltd

Debbie Wyatt

Sales Offìce Co-ordinator

Ph: 

Fax: 

Email: 

Website: www.wesknm.com.au

From: Debbie Wyatt

Sent: Friday, 26 September 2008 16:34

To:

Cc: ‘MOPU_0801@lglgold.com’; Roxane Fitzroy; Paul McFarlane; ‘Soheil’; ‘EPD1’; ‘GC Chew (EPD)’

Subject: RE: MOPU-1003-L LGL Pressure Autoclave — Further clarification / information

Importance: High

WES Ref: J0807701F

Hi Adam

Please find our response to your clarifications embedded in bold and italics in your email below.

if you have any further queries please do not hesitate to call.

Best regards

W.E. Smith Engineering Pty Ltd

 

Page 2 of 3

Debbie Wyatt

Sales Office Co-ordinator

Ph:

Fax: 

Email: 

Website: www.wesknm.com.au

From : Adam. Dickens [mailto :                    ]

Sent: Monday, 22 September 2008 13:54

To: Paul McFarlane

Cc: MOPU_0801@lglgold.com; Roxane Fitzroy; Debbie Wyatt

Subject: MOPU-1003-L LGL Pressure Autoclave — Further clarification / information

Importance: High

Paul,

Further to recent discussions, and our inspectors visit to your Kuantan facility, please find
the following questions / clarifications that LGL require information on.

	 	•	 	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.

LGL would greatly appreciate receiving your response to the above items before 5pm (AEST),
Wednesday 24th September 2008.

If you require further information or clarification, please do not hesitate in contacting me.

Regards,

Adam Dickens

Contracts Engineer
Lihir Services Australia Pty Ltd

www.lglgold.com

 

 

	 	 	 	 	 	 	 
		 	W.E SMITH ENGINEERING PTY LTD (a subsidiary
of knm group)	 	WES/EPD/QUO-001
	 
	 	 	 	 	 	Rev 2
	 
	 	Corporate Office	 	 	 	30th October 2007
	 	 	Hamilton Drive, Coffs Harbour NSW 2450	 	 
	 
	 	Tel. (+61 2)-6650 8888	 	                                Fax (+61 2)-6658 3499	 
	 	 	E-mail: sales@wesknm.com.au                   Website: www.wesknm.com

	 	 	 	 	 
	WES Ref. No.
	 	:	 	J0807701 (K0807036F)      Revision 3
	Client RFQ No.
	 	:	 	MOPU-1003-L
	 
	 	 	 	 
	Date

	 	:
	 	29 September 2008
	 
	 	 	 	 
	Lihir Gold Ltd
	 	 	 	 
	Level 9
	 	 	 	 
	500 Queen St
	 	 	 	 
	BRISBANE QLD 4001
	 	 	 	 
	 
	 	 	 	 
	Attention

	 	:	 	Adam Dickens
	Phone

	 	:	 	 
	Fax
	 	:	 	 
	Via email

	 	:
	 	 
	 
	 	 	 	 
	PROJECT
	 	:	 	MOPU
	EQUIPMENT

	 	:
	 	Autoclave

Dear Sirs,

We thank you for the above referenced inquiry and in response
are pleased to submit herewith our proposal for your
consideration.

We trust our offer meets with your approval and look forward to
receiving your valued order.

Should you require additional
information or clarification please do not hesitate to contact
us.

Thank you.

Yours faithfully,

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)
	 
	 	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

	 	 	 	 	 
	KNM Ref. No.

	 	:
	 	K0807036 F/EPD3/E/80433
	 
	 	 	 	 
	Client RFQ No.

	 	:
	 	MOPU-1003-L
	 
	 	 	 	 
	Date

	 	:
	 	29 September 2008

W.E Smith Engineering Pty Ltd.

Hamilton Drive, Boambee via Coffs Harbour,
NSW 2450.

	 	 	 	 	 
	Attention

	 	:
	 	Mr. Paul McFariane / Mr. Ken Siminqton
	 
	 	 	 	 
	Phone

	 	:
	 	 
	Fax

	 	:
	 	 
	Via email

	 	:
	 	 
	 

	 	:
	 	 
	 
	 	 	 	 
	Dear Sirs,
	 	 	 	 
	 
	 	 	 	 
	PROJECT
	 	:	 	Million Ounce Plant Upgrade Project, Lihir Island
	 
	 	 	 	 
	EQUIPMENT
	 	:	 	Autoclave (Rev 3 )

With referring to your email dated 23rd Sept. 2008, we are pleased to submit herewith
our revised proposal Rev. 2 for your kind consideration.

We trust
our revised proposal Rev. 3 meets your requirements and satisfaction in every respect
and we remain available for any clarification that you may require.

Thank you.

Yours faithfully,

KNM Process Systems Sdn Bhd

	 	 	 	 	 
	/s/ Chua Young Fong
 

CHUA YOUNG FONG
	 	/s/ Terry Chew
 

TERRY CHEW	 	 
	Manager — Estimation & Engineering
	 	Director, Sales Division	 	 

Encl. Attachment.

Page 1 of 4

 

 

	 	 	 
	

	 	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

GENERAL NOTES:

The main purpose of this technical specification is to provide a whole picture of the supply we
are going to offer.

Our proposal is based on the Customer’s Requisition and relevant attachments, as detailed on
the following sheets.

Note: Articles marked with “X” hereunder are applied as conditions of this quotation.

1. Price:

     Please refer to our price schedule as attached.

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 nozzles
	 	 	o	 	(X)	 	Internals attachment directly welded on the equipment only.
	 	 	o	 	(  )	 	Template for foundation (if required)
	 	 	o	 	(  )	 	Sliding/shiming plate
	 	 	o	 	(X)	 	Name plate and its support
	 	 	o	 	(  )	 	Top davits
	 	 	o	 	(X)	 	Davit for manhole cover
	 	 	o	 	(X)	 	Earthing lugs
	 	 	o	 	(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 datasheet
	 	 	o	 	(X)	 	Transportation saddles
	 	 	o	 	(X)	 	Spare part for construction & commissioning shall consists of 200% gasket & 10% bolts and
nuts (min 2/sets size) for manholes and nozzles with blind
	 	 	o	 	(  )	 	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 14

 

	 	 	 
	

	 	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

KNM operate a quality system certified to ISO 9001 by ABS  

	 	 	 	 	 	 	 	 	 	 	 
	 	 	o	 	(X)	 	Shop inspection, controls and tests, hydrostatic test
	 	 	o	 	(X)	 	Materials procurement as per KNM/WES approved Sub-Vendors List
	 	 	o	 	(X)	 	ASME Code stamp

2.6.0 NDE

	 	 	 	 	 	 	 	 	 
	 	 	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 50mmthk: UT and TOFD before PWHT; UT after PWHT

2.7.0 Finishing & Painting

According to Customer spec’s

	 	 	 	 	 	 	 	 	 
	 	 	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 spec
	 	 	o	 	(   )	 	Pickling and Passivation for Stainless Steel surface
	 	 	o	 	(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 assembly
	 	 	o	 	(X)	 	Foundation works, anchor bolts, nuts and washers
	 	 	o	 	(X)	 	All instrumentation including agitators, motors, valves, gauge, spray
nozzles, electrical heat tracing, etc
	 	 	o	 	(X)	 	Insulation and fireproofing material and works
	 	 	o	 	(X)	 	All special tools and fittings including sight glass
	 	 	o	 	(X)	 	All taxes, duties and VAT
	 	 	o	 	(X)	 	All consequential losses
	 	 	o	 	(X)	 	All completed removable internal piping systems or other parts not welded to the vessel
	 	 	o	 	(X)	 	All completed removable process internals including trays, packings, distributors,
support grid, vane internal, inlet device, spraying systems etc  
	 	 	o	 	(X)	 	All thermal/process design
	 	 	o	 	(X)	 	Design, supply, fabricate and Inspection of platform and ladder C/W
finishing as per spec and trial assembly of platform & ladder
	 	 	o	 	(X)	 	Special polishing for stainless steel material
	 	 	o	 	(X)	 	Ferroxyl Testing.
	 	 	o	 	(X)	 	Lead/Membrane / Brick Lining.

Page 3 of 14

 

	 	 	 
	

	 	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

     12 months after start-up and commissioning or 18 months after contractual delivery ex-work
whichever is earlier

5. Delivery Term:

Incoterm:       FAS to Nearest Port of Export

(Note: Our offer is included responsibility/co-ordination of custom declaration documents)

Duration:

The above delivery period/s will be maintained upon condition that
all the following data are available by the stated period:

	 	 	 
	* 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:

30 days from date of quotation submission except for price of steels
materials, which may be subject to adjustment based on mill prices at the
time of order.

Our price is based on the currency exchange rate of           and shall be adjusted at the time of order.

7. Payment Term:

Via Irrevocable confirmed Letter of Credit for 30 days issue by bank rated A by Standard & Poor’s
or Moody’s

or banking institution acceptable to KNM with draw down schedule as follows:

	 	 	 	 	 	 	 
	 

	 	 	%	 	 	- 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 Schedule
	No	 	Total Contract Sum	 	(week)
	1	 	 	 	weeks from date of order

	2	 	 	 	weeks from date of order

	3	 	 	 	weeks from date of order

	4	 	 	 	weeks from date of order

	5	 	 	 	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 Island
	KNM
Ref No.

	 	:
	 	K0807036 F/EPD3 /E / 80433
	Client RFQ No.

	 	:
	 	MOPU-1003-L
	Equipment

	 	:
	 	Autoclave (Rev 3)
	Date

	 	:
	 	29th September 2008

Price Schedule (Base Case)
Rev.2               
COMMERCIAL

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Price
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Process Internal	 	vessel	 	Equipment	 	Delivery
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	I/D	 	TL ~ TL	 	Win. Thk.	 	 	 	 	 	Unit Wt.	 	Total Wt.	 	Unit Price	 	Unit Price	 	Total Price	 	Months
	No.	 	Tag No.	 	Description	 	Material	 	(mm)	 	(mm)	 	(mm)	 	Qty	 	(MT)	 	(MT)	 	( USD )	 	( USD )	 	( USD )	 	ARO
	1
	 	1343-AC-2004	 	Autoclave	 	SA516Gr.70N	 	 	5,600	 	 	 	44,820	 	 	Head	 	 	67	 	 	 	1	 	 	 	517.19	 	 	 	517.19	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	68	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2	 	Spare part for start up and commissioning as per specified in our proposal	 	 	 	 	 	LUMPSUM	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	Inland transportation of equipment	 	 	 	 	 	 	 	 	 	 	 	 	 	LUMPSUM	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Grand 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 Island
	KNM Ref No.

	 	:
	 	K0807036 F / EPD3 / E/ 80433
	Client RFQ No.

	 	:
	 	MOPU-1003-L
	Equipment

	 	:
	 	Autoclave (Rev 3)
	Date

	 	:
	 	29th September 2008

Technical Data Summary Rev.2

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	I/D	 	TL ~ TL	 	Min. Thk.	 	 	 	 	 	Unit Wt.	 	Total Wt.	 	 	 	 	 	 	 	 	 	Painting	 	Design
	No.	 	Tag No.	 	Description	 	Material	 	(mm)	 	(mm)	 	(mm)	 	Qty	 	(MT)	 	(MT)	 	RT	 	PWHT	 	Internal	 	External	 	Code
	1
	 	1343-AC-2004	 	Autoclave	 	SA516 Gr.70N	 	 	5,600	 	 	 	44,820	 	 	Head	 	 	67	 	 	 	1	 	 	 	610.56	 	 	 	 	 	 	Full	 	Yes	 	No	 	Yes	 	ASME VIII DIV.1
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	68	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	TOTAL	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Page 7 of 14

 

Shipping Data Summary

	 	 	 	 	 
	Client

	 	:
	 	W.E Smith Engineering Pty Ltd.
	Project

	 	:
	 	Million Ounce Plant Upgrade Project, Lihir Island
	KNM Ref No.

	 	:
	 	K0807036 F / EPD3 / E / 80433
	Client RFQ No.

	 	:
	 	MOPU-1003-L
	Equipment

	 	:
	 	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	 	Total
	1
	 	1343-AC-2004	 	Autoclave	 	 	1	 	 	 	6.60	 	 	 	6.40	 	 	 	48.50	 	 	 	2,049	 	 	 	2,049	 	 	 	610.56	 	 	 	610.56	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	TOTAL	 	 	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,049	 	 	 	 	 	 	 	610.56	 

Page 8 of 14

 

Page 1 of 1

Anne Smith

	 	 	 
	From:

	 	Adam Dickens
	 
	 	 
	Sent:

	 	Monday, 22 September 2008 1:54 PM
	 
	 	 
	To:

	 	Paul McFarlane
	 
	 	 
	Cc:

	 	MOPU; Roxane Fitzroy; Debbie Wyatt
	 
	 	 
	Subject:

	 	MOPU-1003-L LGL Pressure Autoclave — Further clarification / information

	 
	 	 
	Importance:

	 	High

Paul,

Further to recent discussions, and our inspectors visit to your Kuantan facility, please find
the following questions / clarifications that LGL require information on.

	 	•	 	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.

LGL would greatly appreciate receiving your response to the above items before 5pm (AEST),
Wednesday 24th September, 2008.

If you require further information or clarification, please do not hesitate in contacting me.

Regards,

Adam Dickens

Contracts Engineer

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

 

 

	 	 	 
	KNM REF.:

	 	K0807036 F / EPD3 / E / 80433
	WES REF.:

	 	J0807701F
	CLIENT REF.:

	 	MOPU-1003-L
	PROJECT:

	 	MILLION OUNCE PLANT UPGRADE PROJECT, LIHIR ISLAND
	EQUIPMENT:

	 	AUTOCLAVE

COMMENTS ON LGL (MOPU) PURCHASE ORDER TERMS & CONDITIONS

	 	 	 	 	 	 	 	 	 
	Article	 	 	 	DESCRIPTION / COMMENTS	 	REMARKS
	 

	 	SECTION 1 PART B: PURCHASE ORDER

TERMS AND CONDITIONS	 	 
	 
	 	 	 	 
	5

	 	Security And Retention
	 	Propose no withholding of percentage of any invoice is allowed unless, with Seller’s prior
agreement in writing.
	 
	 	 	 	 
	6

	 	Tax	 	 
	 
	 	 	 	 
	6.1

	 	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 Default	 	 
	 
	 	 	 	 
	Line 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 2
	 	 	 	 
	 

	 	 	 	Propose 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.

 

Page 1 of 2

Anne Smith

	 	 	 
	From:

	 	Roxane Fitzroy
	Sent:

	 	Friday, 15 August 2008 1 1:29 AM
	To:

	 	Adam Dickens; Paul McFarlane; Debbie Wyatt
	Cc:

	 	MOPU
	Subject:

	 	RE: MOPU-1003-L Autoclave supply tender — Post tender Questions #1

Dear Adam

Thank you for your email.

We confirm receipt and will respond accordingly.

Kind Regards,

Roxane

From :
Adam. Dickens@lglgold,com Imailto :

Sent: Friday, 15 August 2008 11:23 AM

To: Paul McFarlane; Debbie Wyatt; Roxane Fitzroy

Cc: MOPU_0801@lglgold.com

Subject: MOPU-1003-L Autoclave supply tender — Post tender Questions #1

Importance: High

Dear Paul/ Debbie / Roxane,

Please find following post tender questions relating to your recent submission for the supply of
one (1) Pressure Autoclave for the LGL MOPU Project.

Question 1:

Please confirm the basis of N2 nozzle orientation in your proposal. The vessel general arrangement
drawing indicated “hillside” N2 nozzles, and LGL also requested an optional price for
“perpendicular” nozzles. Please submit an option price for “perpendicular” N2 nozzles?

Question 2:

Please submit an optional price, for nozzle sizes in accordance with the attached sketch? Please
note that the nozzle diameter size has been increased, and sizes are indicated in the table on the
attached sketch.

Question 3:

Please confirm mass of the complete autoclave?

Question 4:

Please confirm number of lifting points, and saddles offered in KNM’s proposal?

Question 5:

Please confirm that transportation and “operational” blinds are included in KNM’s proposal?

Question 6:

Please confirm that KNM do not have any further commercial deviations to the terms and conditions,
other than those described in your proposal?

Question 7:

Please submit revised proposal that includes for Liquidated Damages and for a payment method other
than Letter of Credit?

Regards,

Adam Dickens

 

 

Page 2 of 2

Contracts Engineer

Lihir Services Australia Pty Ltd

+61 7 3318 3349 (Direct)

 +61 7 3318 3300 (Switch)

 +61 7 3318 9203 (Fax)

 Lvl 9, 500 Queen Sfreef, Brisbane, QLD, 4000

 GPO Box 905, Brisbane, QLD, 4001, Australia

www.lglgold.com

 

 

Page 1 of 1

     Anne Smith

	 	 	 
	From:

	 	Adam Dickens
	Sent:

	 	Friday, 15 August 2008 11:23 AM
	To:

	 	Paul McFarlane; Debbie Wyatt; Roxane Fitzroy
	Cc:

	 	MOPU
	Subject:

	 	MOPU-1003-L Autoclave supply tender — Post tender Questions #1
	Importance:

	 	High

Dear Paul/ Debbie / Roxane,

Please find following post tender questions relating to your recent submission for the supply of
one (1) Pressure Autoclave for the LGL MOPU Project.

Question 1:

Please confirm the basis of N2 nozzle orientation in your proposal. The vessel general arrangement
drawing indicated “hillside” N2 nozzles, and LGL also requested an optional price for
“perpendicular” nozzles. Please submit an option price for “perpendicular” N2 nozzles?

Question 2:

Please submit an optional price, for nozzle sizes in accordance with the attached sketch? Please
note that the nozzle diameter size has been increased, and sizes are indicated in the table on the
attached sketch.

Question 3:

Please confirm mass of the complete autoclave?

Question 4:

Please confirm number of lifting points, and saddles offered in KNM’s proposal?

Question 5:

Please confirm that transportation and “operational” blinds are included in KNM’s proposal?

Question 6:

Please confirm that KNM do not have any further commercial deviations to the terms and conditions,
other than those described in your proposal?

Question 7:

Please submit revised proposal that includes for Liquidated Damages and for a payment method other
than Letter of Credit?

Regards,

Adam Dickens

Contracts Engineer

Lihir Services Australia Pty Ltd

 +61 7 3318 3349 (Direct)

 +61 7 3318 3300 (Switch)

 +61 7 3318 9203 (Fax)

 Lvl 9, 500 Queen Sfreel Brisbane, QLD, 4000

 GPO Box 905, Brisbane, QLD, 4001, Australia

www.lglgold.com

 

 

Page 1 of 2

     Anne Smith

	 	 	 
	From:

	 	Debbie Wyatt 
	Sent:

	 	Wednesday, 6 August 2008 3:52 PM
	To:

	 	Adam Dickens
	Cc:

	 	 
	 

	 	 
	Subject:

	 	RE: MOPU-1003-L — Autoclave RE:WES CONFIDENTIAL QUOTATION :
	Importance:

	 	High

WES Ref: J0807701 (KNM Ref: K0807036)

Hi Adam

Please find attached completed Form of Tender and relevant attachments.

If you have any further queries please do not hesitate to call.

Best regards

W.E. Smith Engineering Pty Ltd

Debbie Wyatt

Sales Office Co-ordinator

Ph: 61 2 6650 8803 (Direct)

Fax: 61 2 6658 3103

Email: dwyatt@wesknm.com.au

Website: www.wesknm.com.au

From : 

Sent: Tuesday, 5 August 2008 11:52

To: Debbie Wyatt

Cc: 

Subject: MOPU-1003-L — Autoclave RE: WES CONFIDENTIAL QUOTAION :

Importance: High

Hi Debbie,

Thank you
for your email. I acknowledge receipt of your email, with one
attached file.

I would like to ask if you could please send through W.E. Smith’s completed section 4 document? We
require this document to accurately assess tender submissions.

Kind regards,

Adam Dickens

 

 

Page 2 of 2

From :
Debbie Wyatt [mailto :
                    ]

Sent: Tuesday, 5 August 2008 11:30 AM

To: Adam Dickens

Cc: 

Subject: WES CONFIDENTIAL QUOTATION : MOPU-1003-L — Autoclave

Importance: High

WES REF: J0807701 (KNM Ref: K0807036)

Hi Adam

Please find attached our tender submission for your above referenced enquiry.

Two (2) hard copies will follow via TNT courier con note nbr 601276048.

If you have any queries please do not hesitate to contact us.

Best regards

W.E. Smith Engineering Pty Ltd

Debbie Wyatt

Sales Offìce Co-ordinator

Ph: 61 2 6650 8803 (Direct)

Fax: 61 2 6658 3103

Email: 

Website: www.wesknm.com.au

 

 

LGL

MILLION OUNCE PLANT UPGRADE (MOPU)

EQUIPMENT SUPPLY TENDER

SECTION IV FORM OF TENDER

	 	 	 
	Date:

	 	6 August 2008
	Name of Tenderer:

	 	W.E Smith Engineering Pty Ltd / KNM Process Systems Sdn Bhd
	Proposal Number:

	 	J0807701F/K0807036
	Validity of Proposal:

	 	30 days
	Equipment:

	 	AC2004 — Pressure Oxidation Autoclave
	Make:
	 	 
	Model:
	 	 
	Type:
	 	 
	Manufacturer:

	 	KNM Process Systems Sdn Bhd
	Dealer distributor in Country:

	 	Malaysia

 

 

LGL EQUIPMENT SUPPLY TENDER

PRICING SUMMARY

	 	 	 
	Equipment Tender # and Description

	 	Autoclave
	Tenderer’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 & Commissioning Spare
	 	EA	 	 	 	 		 	 	 		 
	Equipment Options
	 	EA	 	 	 	 		 	 	 		 
	Special Tools
	 	EA	 	 	 	 		 	 	 		 
	Extended
Warranty Costs (if applicable)
	 	EA	 	 	 	 		 	 	 		 
	Discount (if any)
	 	EA	 	 	 	 		 	 	 		 
	Export Packing
	 	EA	 	 	 	 	 	 	 	 
	Loading to Transport (FCA KNM workshop)
	 	EA	 	 	 	 	 	 	 	 
	Forward Cover Foreign Currency Risk (if any)
	 	EA	 	 	 	 		 	 	 		 
	Subtotal FCA (Incoterms 2000) Point of Manufacture (KNM Workshop)
	 	 		 

	 	 	 	 	 	 	 	 	 	 	 		 
	 	 	UOM	 	QTY	 	Unit Cost	 	Extended
	Freight/Logistics Cost Breakdown
	 	 	 	 	 	 	 	 	 	 		 
	Freight to
nearest Seaport (FAS Malaysia Nearest Port of Export)
	 	EA	 	1	 	 	 	 	 	 		 
	Customs/Port Terminal Charges (if any)
	 	EA	 	 	 	 	 	 	 	 		 
	Forward Cover Foreign Currency Risk (if any)
	 	EA	 	 	 	 	 	 	 	 		 
	Subtotal FAS Malaysia Port (Incoterms 2000) Seaport                     
	 	 		 
	 
	 	 	 	 	 	 	 	 	 	 		 
	TOTAL 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 (Include details)

Please refer propose payment team as per our proposal as attached.

Cancellation Charges (Include details such as schedule and values) 

Please refer propose cancellation charge as per our proposal.

Point(s) of Manufacture

Specify City and State (if applicable) for each point(s) of supply

KNM Malaysia Shop (Melaka, Gebeng/Kuantan Shop)

Shipment Location

State location where cargo will be available for shipment

(Port Klang/Kuantan Port)

Sub-Suppliers

Provide list of all major/critical components from sub-supplier. State sub-supplier name and location of component manufacture.

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 weeks
	Frequency of updates
	 	 of weeks

Liquidated Damages — Manufacturer’s Proposal, Subject to Assessment by LGL (Include details)

			
	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

List all extended warranties for the Equipment and components

			
	 	 	 
	Extended Warranty Cost (if applicable)
	 	N/A
	 	 	 
	Other Details (Add information if required)	 	 
	N/A	 	 
	 	 	 
	Does the Seller accept the Warranty Terms and Conditions?
	 	Yes o
	 
	 	No 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 approval
	 	 		 
	Number of days from date of Purchase Order
	 	 		 
	 
	 	 		 
	Final Certified Engineering Drawings
	 	 		 
	Number of days from date of approved preliminary drawings
	 	 		 
	 
	 	 		 
	Final Certified (Where preliminary drawings are not required for approval)
	 	 		 
	Number of days from date of Purchase Order
	 	 		 
	 
	 	 		 
	Operators Manuals (Installation, Operation, Maintenance and Training)
	 	 		 
	Operator Manuals in addition to requirements outlined in Section 1
	 	 		 
	Additional 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 1
	 	 		 
	Additional 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)
	 	 		 
	See
HSE as per attached.
	 	 		 
	 
	 	 		 
	Tools (Special tools required for installation, operation and maintenance of Equipment)
	 	 		 

	 	 	 	 	 
	Description	 	Amount
	N/A
	 	 	 	 
	 
	 	 	 	 
	Total
	 	 	 	 

Contract Local/Overseas Content

	 	 	 	 	 
	Description	 	Amount
	Not Applicable (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 (If required)

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 Ex	 	 	 	 
	Item	 	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

State delivery in number of weeks from date of Purchase Order for the following:

	 	 	 	 	 	 	 
	Manufacture and Supply

	 	 	 	 	 	 
	Delivery Completion Date

	 	 	 
	 	 	 
	 

	 	 	 
	 	 	 

Table
2.3 Witnessed and Verified Performance Tests

List the Tests that need to be witnessed and verified and detail if the cost of these tests is included in the Tendered Price

	 	 	 	 	 	 	 	 	 
	 	 	Component and Test	 	Cost Included?	 	 	 	Cost
	N/A	 	 	 	N/A	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Total 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 Packing
	 	 	 	 	 		
	Freight (to nearest Port of Exit) (Malaysia Nearest Port)
	 	 	 	 	 		
	Ocean Freight to Port of Entry
	 	 	 	 	 		
	Customs/Port Terminal Charges (if any)
	 	 	 	 	 			
	Inland Freight to Project Site
	 	 	 	 	 		
	TOTAL COST
	 	 	 	 	 			
	 
	 	 	 	 	 			
	Parts 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, Australia	 			
	 
	 	 	 	 	 			
	Other 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, Australia	 			
	 
	 	 	 	 	 			
	Approximate value for Equipment spare parts carried at named locations
	 	 	 	 	 			
	 
	 	 	 	 	 			
	 
	 	 	 	 	 			
	Recommended 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/A	 			
	 
	 	 	 	 	 			
	Recommended 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 VjSjts
Additional 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 Agreement	 
	Item	 	Award	 	(Y/N)	 
	 
	DATA WITH TENDER
	 	 	 	 	 	 
	Preliminary general arrangement drawing
	 		 	 	 	 
	Proposed manufacturing Schedule
	 		 	 	 	 
	Recommended commissioning & capital spares
	 		 	 	 	 
	 
	DATA AFTER AWARD
	 	 	 	 	 	 
	 
	Detailed 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 schedule
	 		 	 	 	 
	Inspection and test plan
	 		 	 	 	 
	Operating and maintenance manuals:
	 	 	 	 	 	 
	• Preliminary
	 		 	 	 	 
	• Final
	 		 	 	 	 
	As-built drawings
	 		 	 	 	 

					
	 
	 	 	 	 	 	 	 	 
	Section IV — Form of Tender
	 	Technical Data Schedule
	 	Page 13

 

 

HEALTH , SAFETY AND ENVIRONMENT POLICY

It is the objective of the company to achieve an excellent health, safety and environmental
performance. This is fundamental to our business and primary concern of the management.

The Company believes that this policy will contribute positively to the quality of life of its
employees, the standard of all our operations, the safety of the public, the safeguarding of the
environment and to our business success.

	 	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 programme
	 
	 	10.	 	To meet or exceed as appropriate those standards contained in appropriate Statutes
affecting the Industry.

	 	 	 
	/s/
Ir. Lee Swee Eng
 

Ir. Lee Swee Eng

	 	 
	Group Managing Director
	 	 

	 	 	 	 	 
	Revision

	 	:
	 	03
	Date

	 	:
	 	07th March 2007

 

 

	 	 	 	 	 
	

	 	KNM PROCESS SYSTEMS SDN BHD

Safety Statistics
	 	
	 

	 	 	 	 

KNM Safety Statistics for the last 5 years are as follows:-

(include manhours in Malaysia)

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

 

 

     

	SAFETY AWARDS

 

 

Page 1 of 1

Anne Smith

	 	 	 
	From:

	 	Adam Dickens
	Sent:

	 	Tuesday, 5 August 2008 11:52 AM
	To:

	 	Debbie Wyatt
	Cc:

	 	 
	Subject:

	 	MOPU-1003-L -Autoclave RE: WES CONFIDENTIAL QUOTATION :
	 
	 	 
	Importance:

	 	High

Hi Debbie,

Thank you for your email. I acknowledge receipt of your email, with one attached file.

I would like to ask if you could please send through W.E. Smith’s completed section 4 document? We
require this document to accurately assess tender submissions.

Kind regards,

 Adam
Dickens

From: Debbie Wyatt [mailto:dwyatt@wesknm.com.au]

Sent: Tuesday, 5 August 2008 11:30 AM

To: Adam Dickens

Cc: 

Subject: WES CONFIDENTIAL QUOTATION : MOPU-1003-L — Autoclave

Importance: High

WES REF: J0807701 (KNM Ref: K0807036)

Hi Adam

Please find attached our tender submission for your above referenced enquiry.

Two (2) hard copies will follow via TNT courier con note nbr 601276048.

If you have any queries please do not hesitate to contact us.

Best regards

W.E. Smith Engineering Pty Ltd

Debbie Wyatt

Sales Office Co-ordinator

Ph: 61 2 6650 8803 (Direct)

Fax: 61 2 6658 3103

Email: dwyatt@wesknm.com.au

Website: www.wesknm.com.au

 

 

Page 1 of 1

Anne Smith

	 	 	 
	From:

	 	Debbie Wyatt 
	 
	Sent:

	 	Tuesday, 5 August 2008 11:30 AM
	 
	To:

	 	Adam Dickens
	 
	Cc:

	 	 
	 
	Subject:

	 	WES CONFIDENTIAL QUOTATION : MOPU-1003-L — Autoclave
	 
	 	 
	Importance :

	 	High

WES REF: J0807701 (KNM Ref: K0807036)

Hi Adam

Please find attached our tender submission for your above referenced enquiry.

Two (2) hard copies will follow via TNT courier con note nbr 601276048.

If you have any queries please do not hesitate to contact us.

Best regards

W.E. Smith Engineering Pty Ltd

Debbie Wyatt

Sales Office Co-ordinator

Ph: 61 2 6650 8803 (Direct)

Fax: 61 2 6658 3103

Email: 

Website: www.wesknm.com.au

 

 

	 	 	 	 	 	 	 
	
	 	
W.E SMITH ENGINEERING PTY LTD (a subsidiary of KNM Group )	 	WES/EPD/QUO-001
Rev 2
	 

	 	 	 	 	 	30th October 2007.
	 

	 	Corporate Office
	 	 	 	 
	 

	 	Hamilton Drive, Coffs Harbour NSW 2450	 	 	 	 
	 

	 	Tel. (+61 2)-6650 8888
	 	Fax(+61 2)-6658 3499	 	 
	 

	 	E-mail: sales@wesknm.com.au
	 	Website: www.wesknm.com	 	 

	 	 	 	 	 	 	 
	WES Ref. No.

	 	:
	 	J080770J (K0807036F)
	 	Revision 0
	Client RFQ No.

	 	:
	 	MOPU-1003-L	 	 
	 
	 	 	 	 	 	 
	Date

	 	:
	 	4 August 2008	 	 
	 
	 	 	 	 	 	 
	Lihir Gold Ltd
	 	 	 	 	 	 
	Level 9
	 	 	 	 	 	 
	500 Queen St
	 	 	 	 	 	 
	BRISBANE QLD 4001
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Attention

	 	:
	 	Adam Dickens	 	 
	Phone
	 	 	 	 	 	 
	Fax
	 	 	 	 	 	 
	Via email

	 	:
	 	 	 	 
	 
	 	 	 	 	 	 
	PROJECT

	 	:
	 	MOPU	 	 
	EQUIPMENT

	 	:
	 	Autoclave	 	 
	 
	Dear Sirs,
	 	 	 	 	 	 

We thank you for the above referenced inquiry and in
response are pleased to submit herewith our proposal for
your consideration.

We trust our offer meets with your approval and look forward to receiving your valued order.

Should you require additional information or clarification please do not hesitate to contact us.

Thank you.

Yours faithfully,

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)
	

	 	Corporate Office
	 

	 	15 Jalan Dagang SB4/1, Taman Sungai
Besi Indah, 43300 Seri Kembangan, Selangor Darul Ehsan,

Malaysia
	 

	 	Tel. (603)-89463000 Fax (603)-89434781 E-mail: epd3@knm-group.com Website: www.knm-group.com

	 	 	 	 	 
	KNM Ref.No.

	 	:
	 	K0807036F/EPD3/E/80433
	WES Ref

	 	:
	 	J0807701F
	Client RFQ No.

	 	:
	 	MOPU-1003-L
	 
	Date

	 	:
	 	4th August 2008

Lihir Gold Ltd

Level 9

500 Queen St

BRISBANE QLD 4001

	 	 	 	 	 
	Attention

	 	:
	 	Adam Dickens
	 
	 	 	 	 
	Phone

	 	:	 	 
	Fax

	 	:	 	 
	Via email

	 	:
	 	 
	 
	 	 	 	 
	Dear Sirs,
	 	 	 	 
	 
	 	 	 	 
	PROJECT

	 	:
	 	Million Ounce Plant Upgrade Project, Lihir Island
	 
	 	 	 	 
	EQUIPMENT

	 	:
	 	Autoclave

We thank you for your Invitation to Quote for the above and we are pleased to submit
herewith our proposal for your kind consideration.

We trust our proposal meets your requirements and satisfaction in every respect and we
remain available for any clarification that you may require.

Thank you.

Yours faithfully,

KNM Process Systems Sdn Bhd

	 	 	 	 	 
	/s/ Chua Young Fong
 

	 	/s/ Terry Hew
 

	 	 
	CHUA YOUNG FONG

	 	TERRY HEW	 	 
	Manager — Estimation & Engineering

	 	Director, Sales Division	 	 

End. Attachment.

Page 1 of 4 

 

	 	 	 
	 

	 	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. (603)-89463000 Fax (603)-89434781 E-mail: epd3@knm-group.com Website: www.knm-group.com

GENERAL NOTES:

The main purpose of this technical specification is to provide a whole picture of the supply we
are going to offer.

Our
proposal is based on the Customer’s Requisition and relevant attachments, as detailed on
the following sheets.

Note: Articles marked with “X” hereunder are applied as conditions of this quotation.

1. Price:

     Please refer to our price schedule as attached.

2.
Scope of Supply and work

2.1.0
Equipmet Scope of  Supply

	 	 	 	 	 	 	 
	 

	 	o
	 	(X)
	 	Equipment proper complete with nozzles, manholes, skirt support
	 

	 	o
	 	(X)
	 	Type of nozzle reinforcement
	 

	 	 	 	( )
	 	Reinforcing pads (X) Self reinforcement ( ) Saddle/lip type self reinforced nozzles
	 

	 	o
	 	(X)
	 	Internals attachment directly welded on the equipment only.
	 

	 	o
	 	( )
	 	Template for foundation (if required)
	 

	 	o
	 	( )
	 	Sliding/shiming plate
	 

	 	o
	 	(X)
	 	Name plate and its support
	 

	 	o
	 	( )
	 	Top davits
	 

	 	o
	 	(X)
	 	Davit for manhole cover
	 

	 	o
	 	(X)
	 	Earthing lugs
	 

	 	o
	 	(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 datasheet
	 

	 	o
	 	(X)
	 	Transportation saddles
	 

	 	o
	 	(X)
	 	Spare part for construction & commissioning shall consists of 200%
gasket & 10% bolts and nuts (min 2 /sets size) for manholes and nozzles with blind
	 

	 	o
	 	( )
	 	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)
	

	 	Corporate Office
	 

	 	15 Jalan Dagang SB4/1, Taman Sungai
Besi Indah, 43300 Seri Kembangan, Selangor Darul Ehsan,

Malaysia
	 

	 	Tel. (603)-89463000 Fax (603)-89434781 E-mail: epd3@knm-group.com Website: www.knm-group.com

2.5.0 Quality Assurance/Control

KNM operate a quality system certified to ISO 9001 by ABS

	 	 	 	 	 	 	 
	 

	 	o
	 	(X)
	 	Shop inspection, controls and tests, hydrostatic test
	 

	 	o
	 	(X)
	 	Materials procurement as per KNM/WES approved
Sub-Vendors List
	 

	 	o
	 	(X)
	 	ASME Code stamp

2.6.0 NDE

	 	 	 	 	 	 	 
	 

	 	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 

According to Customer spec’s

	 	 	 	 	 	 	 
	 

	 	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 spec
	 

	 	o
	 	( )
	 	Pickling and Passivation for Stainless Steel surface
	 

	 	o
	 	(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 & cranage
	 

	 	o
	 	(X)
	 	Foundation works, anchor bolts, nuts and washers
	 

	 	o
	 	(X)
	 	All instrumentation including
agitators, motors, valves, gauge, spray nozzles,
electrical heat tracing, etc
	 

	 	o
	 	(X)
	 	Insulation and fireproofing material and works
	 

	 	o
	 	(X)
	 	All special tools and fittings including sight glass
	 

	 	o
	 	(X)
	 	All taxes, duties and VAT
	 

	 	o
	 	(X)
	 	All consequential losses
	 

	 	o
	 	(X)
	 	All completed removable internal piping systems or other parts not welded to the vessel
	 

	 	o
	 	(X)
	 	All completed removable process
internals including trays, packings, distributors,
support grid, vane internal,
inlet device, spraying systems etc
	 

	 	o
	 	(X)
	 	All thermal/process design
	 

	 	o
	 	(X)
	 	Design, supply, fabricate and Inspection of platform and ladder C/W finishing as per spec
and trial assembly of platform & ladder
	 

	 	o
	 	(X)
	 	Special polishing for stainless steel material
	 

	 	o
	 	(X)
	 	Ferroxyl testing.
	 

	 	o
	 	(X)
	 	Lead / Membrane / Brick Lining.

Page 3 of 4 

 

	 	 	 
	 

	 	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. (603)-89463000 Fax
(603)-89434781 E-mail: epd3@knm-group.com Website:
www.knm-group.comfp

4. Mechanical warranty

          months after start-up and commissioning or           months after contractual delivery ex-work
whichever is earlier

5. Delivery Term:

Incoterm:       FCA to Nearest Port of Export

(Note: Our offer is included responsibility/co-ordination of custom
declaration documents)

Duration:      17 months from date of order

The above delivery period/s will be maintained upon condition that all the following
data are
available by the stated period:

	 	 	
	* 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:

30 days from date of quotation submission except for price of steels materials,
which may be subject to adjustment based on mill prices at the time of order,

Our price
is based on the currency exchange rate of           and shall be adjusted
at the time of order.

7. Payment Term:

Via Irrevocable confirmed Letter of Credit for 30 days issue by bank rated A by Standard & Poor’s ot Moody’s
or banking institution acceptable to KNM with draw down schedule as follows:

		 	 	 	 	 	 
		 	 	%	 	 	- 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 Schedule
	No 	 	Contract Sum	 	(week)
	1
	 		 	weeks from date of order
	2
	 		 	weeks from date of order
	3
	 		 	weeks from date of order
	4
	 		 	weeks from date of order
	5
	 		 	weeks from date of order

Page 4 of 4 

 

Page 1 of 2

	 	 	 	 	 
	 

	 	Anne Smith	 	 
	 
	 	 	 	 
	 

	 	From:
	 	Debbie Wyatt 
	 

	 

	 	Sent:
	 	Tuesday, 5 August 2008 1:21 PM
	 

	 

	 	To:
	 	Adam Dickens
	 

	 

	 	Cc:
	 	 
	 

	 

	 	Subject:
	 	RE: MOPU-1003-L — Autoclave RE: WES CONFIDENTIAL QUOTATION :
	 

	 

	 	Importance:
	 	High

Hi Adam

We are currently completing Section 4 Form of Tender and will email as soon as complete.

Best regards

W.E. Smith Engineering Pty Ltd

Debbie Wyatt

Sales Office Co-ordinator

Ph: 61 2 6650 8803 (Direct)

Fax: 61 2 6658 3103

Email:

Website: www.wesknm.com.au

From: 

Sent: Tuesday, 5 August 2008 11:52

To: Debbie Wyatt

Cc: 

Subject: MOPU-1003-L — Autoclave RE: WES CONFIDENTIAL QUOTATION :

Importance: High

Hi Debbie,

Thank you for your email. I acknowledge receipt of your email, with one attached file.

I would like to ask if you could please send through W.E. Smith’s completed section 4 document? We
require this document to accurately assess tender submissions.

Kind regards,

Adam Dickens

From:
Debbie Wyatt [mailto:                     ]

Sent: Tuesday, 5 August 2008 11:30 AM

To: Adam Dickens

Cc: 

Subject: WES CONFIDENTIAL QUOTATION : MOPU-1003-L — Autoclave

Importance: High

 

 

Page 2 of 2

WES REF: J0807701 (KNM Ref: K0807036)

Hi Adam

Please find attached our tender submission for your above referenced enquiry.

Two (2) hard copies will follow via TNT courier con note nbr 601276048.

If you have any queries please do not hesitate to contact us.

Best regards

W.E. Smith Engineering Pty Ltd

Debbie Wyatt

Sales Office Co-ordinator

Ph: 61 2 6650 8803 (Direct)

Fax: 61 2 6658 3103

Email: 

Website: www.wesknm.com.au

 

 

Page 1 of 2

	 	 	 	 	 
	 

	 	Anne Smith	 	 
	 
	 	 	 	 
	 

	 	From:
	 	Debbie Wyatt
	 

	 

	 	Sent:
	 	Tuesday, 22 July 2008 9:55 AM
	 

	 

	 	To:
	 	Adam Dickens
	 

	 

	 	Cc:
	 	MOPU; Paul McFarlane; Roxane Fitzroy
	 

	 

	 	Subject:
	 	: RE: MOPU-1003-L Autoclave supply — Notice to tenderers #4

WES Ref: J0807701

Hi Adam

We confirm receipt... thankyou.

Best regards

W.E. Smith Engineering Pty Ltd

Debbie Wyatt

Sales Office Co-ordinator

Ph: 61 2 6650 8803 (Direct)

Fax: 61 2 6658 3103

Email: 

Website: www.wesknm.com.au

From:
Adam.Dickens@lglgold.com [mailto:                     ] 

Sent: Tuesday, 22 July 2008 9:47

To: Paul McFarlane; Roxane Fitzroy; Debbie Wyatt

Cc: mopu@lglgold.com

Subject: MOPU-1003-L Autoclave supply — Notice to tenderers #4

Importance: High

Dear Paul,

Please find below Notice to tenderer’s for your information and action.

Question 1:

Can you supply the UNS number for the Titanium material?

Response:

LGL advises that the material for the nozzle liners is titanium grade 2 — UNS R50400.

Please acknowledge receipt of this notice by return email.

Regards,

Adam Dickens

Contracts Engineer

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

 

 

Page 1 of 1

	 	 	 	 	 
	 

	 	Anne Smith	 	 
	 
	 	 	 	 
	 

	 	From:
	 	Adam Dickens
	 

	 

	 	Sent:
	 	Tuesday, 22 July 2008 9:47 AM
	 

	 

	 	To:
	 	Roxane Fitzroy; Debbie Wyatt
	 

	 

	 	Cc:
	 	MOPU
	 

	 

	 	Subject:
	 	MOPU-1003-L Autoclave supply — Notice to tenderers #4
	 

	 

	 	Importance:
	 	High

Dear Paul,

Please find below Notice to tenderer’s for your information and action.

Question 1:

Can you supply the UNS number for the Titanium material?

Response:

LGL advises that the material for the nozzle liners is titanium grade 2 — UNS R50400.

Please acknowledge receipt of this notice by return email.

Regards,

Adam Dickens

Contracts Engineer

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

 

 

Page 1 of 1

	 	 	 	 	 
	 

	 	Anne Smith	 	 
	 
	 	 	 	 
	 

	 	From:
	 	Adam Dickens
	 

	 

	 	Sent:
	 	Friday, 18 July 2008 3:01 PM
	 

	 

	 	To:
	 	Roxane Fitzroy; Debbie Wyatt
	 

	 

	 	Cc:
	 	MOPU
	 

	 

	 	Subject:
	 	MOPU-1003-L Autoclave Supply — Notice to tenderers #3
	 

	 

	 	Importance:
	 	High

Dear Paul / Roxane / Debbie,

LGL are extending the closing time of this tender. The current tender invitation closing time is
3pm (Brisbane time), Monday 28th July, 2008.

The
revised tender closing time is now 3pm (Brisbane time), Monday 4th August,
2008.

Please acknowledge receipt of this notice by return email.

Regards,

Adam Dickens

Contracts Engineer

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

 

 

Page 1 of 1

	 	 	 	 	 
	 

	 	Anne Smith	 	 
	 
	 	 	 	 
	 

	 	From:
	 	Adam Dickens
	 

	 

	 	Sent:
	 	Thursday, 17 July 2008 11:23 AM
	 

	 

	 	To:
	 	Roxane Fitzroy; Debbie Wyatt
	 

	 

	 	Cc:
	 	MOPU
	 

	 

	 	Subject:
	 	MOPU-1003-L Autoclave Supply — Notice to tenderers #2
	 

	 

	 	Importance: 
	 	High

Dear Paul / Roxane / Debbie,

Question 1:

Please supply details for the agitator blinds, ie: materials, thicknesses, etc. to enable us to
estimate.

LGL response:

Information to allow Nozzle flange sizing, by the vendor, has been supplied on the drawings
included with the tender package. In particular, loads on the Agitator nozzles have been supplied
on drawing 1343-M-001 Rev 1. Also noted on this drawing are Flange material types, rating, and face
information. Size information can also be found on the nozzle detail drawings, in particular,
please refer to note 3 on drawing 

1343-M-003 Rev 1.

Question 2:

We have been advised by our steel merchant that the material for the shell construction A516-70 or
Australian equivalent AS1548-7-490 listed as 65mm thick on Drawing No 1343-M-001 is only available
in 60mm and 70mm thicknesses. Could you please review and advise required thickness.

LGL response:

The dimension for shell thickness stated in the tender documentation is for indicative purposes
only. As requested in the tender documentation, Vendors are to stipulate the shell thickness, that
there offer is based on. The shell thickness specified by the vendor shall allow the pressure
vessel to conform with all regulatory requirements, for the design criteria specified in the tender
documentation.

Regards,

Adam Dickens

Contracts Engineer

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

 

 

Page 1 of 1

	 	 	 	 	 
	 

	 	Anne Smith	 	 
	 
	 	 	 	 
	 

	 	From:
	 	Adam Dickens
	 

	 

	 	Sent:
	 	Monday, 14 July 2008 8:34 AM
	 

	 

	 	To:
	 	 
	 

	 

	 	Cc:
	 	MOPU; Roxane Fitzroy
	 

	 

	 	Subject:
	 	MOPU-1003-L Supply of Autoclave — Notice to Tenderers #1
	 

	 

	 	Importance: 
	 	High

Dear Sir,

Question 1: We note that there is no Membrane specification included in the tender documentation.
Please confirm if a membrane lining is included in the scope of works?

LSA response:

LSA confirms that there is no lining included in this scope of work. Please do not include a
membrane lining in your tender submission documents & pricing.

Regards,

Adam Dickens

Contracts Engineer

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

1. Tenderers’ Understanding

2. Tender Submissions

3. Acceptance Of Tender

4. Tendered Prices

5. Contract And Terms Of Payment

6. Weights And Dimensions

7. Contractual Delivery Schedule

8. Warranties/Guarantees

9. Alternative Proposals

10. Priority

11. Quality Assurance/Quality Control

12. Tests

13. Erection Or Start-Up

14. Spare Parts

15. Health, Safety, Environmental And Human Rights Compliance

Part B
— Purchase Order Terms and Conditions

A. Definitions

B. General Terms and Conditions

C. Preparing Orders for Shipment

Part C
— Technical On-site Personnel Terms

1. Service Order Terms and Conditions

2. Site

3. Employee Replacement

4. Transport

5. Accommodation and Messing

6. On-Site Facilties

7. First Aid

8. Reimbursable Sum

9. Per Diem Rate (Working Time)

10. Daywork Sheets

11. Field Breaks

12. Back Charges

Section II

Site Conditions and Equipment & Material Standards

 

 

1. Scope

2. Site Conditions

3. Standards, Codes and Regulations

Appendix A — List of Standard Specifications

Section III

Detailed Specifications

1. Scope

2. General Requirements

3. Technical Requirements

4. Surface Preparation

5. Assembly and Testing

6. Tender Submission information

7. Supply Schedule

Attachments

Section IV

Form of Tender

1. Pricing

2. Commercial Details

3. Alternative Tender

4. Schedule of Key Dates

5. Schedule

6. Weights and Dimensions

7. Spare Parts

8. Availability Guarantees

9. Service and Support

10. Technical Data Schedule

 

 

LGL

Million Ounce Plant Upgrade (MOPU)

Equipment Supply Tender

Section I Part A Instructions to Tenderers

INDEX

	 	 	 	 	 
	1. Tenderers’ Understanding
	 	 	1	 
	2. Tender Submissions
	 	 	2	 
	3. Acceptance of Tender
	 	 	3	 
	4. Tendered Prices
	 	 	4	 
	5. Contract and Terms of Payment
	 	 	5	 
	6. Weights and Dimensions
	 	 	5	 
	7. Contractual Delivery Schedule
	 	 	5	 
	8. Warranties/Guarantees
	 	 	6	 
	9. Alternative Proposals
	 	 	6	 
	10. Priority
	 	 	6	 
	11. Quality Assurance/Quality Control
	 	 	7	 
	12. Tests
	 	 	7	 
	13. Erection or Start-Up
	 	 	7	 
	14. Spare Parts
	 	 	7	 
	15. 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:

SECTION I: Instructions to Tenderer’s (Inclusive of Appendixes)

SECTION II: Site Conditions and Equipment and Material Standards

SECTION III: Detailed Specifications

SECTION IV: Form of Tender

	 	1.2.	 	The following definitions apply to terms used throughout Sections I, II, III and IV.

	 	 	 
	Term	 	Meaning
	LGL

	 	Lihir Gold Limited (Incorporated in
Papua New Guinea) ARBN 069
803 998 with an operation on Lihir Island, New Ireland Province, Papua New Guinea
	 
	 	 
	Closing Time

	 	The deadline for receipt by LGL of Tender submissions
	 
	 	 
	Equipment, 

Merchandise or 

Goods

	 	The equipment or goods described in Section III that is the subject of
the Invitation to Tender
	 
	 	 
	Invitation to
Tender

	 	A letter of invitation from LGL to inviting offers to supply
Merchandise
	 
	 	 
	Owner

	 	LGL
	 
	 	 
	Project

	 	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
Guinea
	 
	 	 
	Sub-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:

MILLION OUNCE PLANT UPGRADE 

LGL Gold 

Level 9 

500 Queen Street

 Brisbane QLD 4001 

Australia 

Attention: Projects Purchasing

	 	 	 	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
	 	 	10	 
	B. General Terms and Conditions
	 	 	13	 
	C. Preparing Orders for Shipment
	 	 	26	 

			
	 	 	 
	Section I – Part B Purchase Order Terms and Conditions
	 	9

 

 

LGL EQUIPMENT SUPPLY TENDER

	A)	 	Definitions

The definition of terms used, interpretation of this agreement, and the rights of all
parties hereunder shall be construed under and governed by the laws of Queensland and
the Commonwealth of Australia in effect at the date of the Invitation to Tender. Should
a legislative requirement come into effect after the date of the Invitation to Tender
but could not be reasonably then have been anticipated by a competent Seller and which
causes the Seller to incur more or less cost than otherwise would have been incurred,
the difference shall be assessed by LGL and added to or deducted as a Purchase Order
Amendment.

The following words used in this document shall, where the contents so permit, have the
following meanings:

	 	 	 
	Term	 	Meaning
	Applicable 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
Order
	 
	 	 
	Confidential

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; and

	 
	 	 
	 

	 	4    any other information which a party notifies the other is
confidential, or which the other party knows or ought to know is
confidential

	 
	 	 
	Delay 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; and

	 
	 	 
	 

	 	5    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; or

	 
	 	 
	 

	 	8    LGL acting in accordance with this Purchase Order including

			
	 	 	 
	Section I – Part B Purchase Order Terms and Conditions
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LGL EQUIPMENT SUPPLY TENDER

	 	 	 
	Term	 	Meaning
	 

	 	any 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 Majeure

Event

	 	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; and

	 
	 	 
	 

	 	8    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; and

	 
	 	 
	 

	 	11  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 Variation
	 
	 	 
	Purchase 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

			
	 	 	 
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LGL EQUIPMENT SUPPLY TENDER

	 	 	 
	Term	 	Meaning
	Shipping 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 Guinea
	 
	 	 
	Standards

	 	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; or

	 
	 	 
	 

	 	3    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
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LGL EQUIPMENT SUPPLY TENDER

	B)	 	General Terms
and Conditions

The Seller must supply the Merchandise to LGL in accordance with the terms and conditions of the
Purchase Order.

	 	1)	 	COMPLETE AGREEMENT
	 
	 	 	 	This 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
information
	 
	 	b)	 	Applicable correspondence detailed in the Purchase Order
	 
	 	c)	 	Tender
Document Section I Part B: Purchase Order Terms and Conditions
	 
	 	d)	 	Tenderer’s Completed
Tender Document Section IV
	 
	 	e)	 	Tender Document Section III
	 
	 	f)	 	Tender Document Sections I
Part A and Section II
	 
	 	g)	 	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)	 	DELIVERY
	 
	 	 	 	The 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 VARIATIONS
	 
	 	 	 	Neither 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
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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; and
	 
	 	o	 	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 SCHEDULE
	 
	 	 	 	Commencing 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 RETENTION
	 
	 	 	 	If 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)	 	TAX
	 
	 	6.1	 	Liability for Tax
	 
	 	 	 	The 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
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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	 	GST
	 
	 	 	 	For 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
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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
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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:

Purchaser: LGL

Project: MOPU

Location: Lihir Island Papua New Guinea

Equipment Title:

Equipment No.:

P.O. No.:

Date:

Revision No.:

	 	 	 	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
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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
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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 SELLER
	 
	 	15.1	 	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

			
	 	 	 
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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 PROVISIONS
	 
	 	16.1	 	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.

			
	 	 	 
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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)	 	PRICE
	 
	 	 	 	The 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 PARTS
	 
	 	 	 	The 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 parts
	 
	 	19)	 	PATENTS, TRADEMARKS AND COPYRIGHTS
	 
	 	 	 	Seller 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 MERCHANDISE
	 
	 	 	 	Risk 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.

			
	 	 	 
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LGL EQUIPMENT SUPPLY TENDER

	 	21)	 	TRANSPORTATION
	 
	 	 	 	Immediately 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 MERCHANDISE
	 
	 	 	 	Notwithstanding 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 INFORMATION
	 
	 	 	 	Any 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)	 	LICENCES
	 
	 	 	 	Unless 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 WORK
	 
	 	 	 	If 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 DAMAGES
	 
	 	 	 	The 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.

			
	 	 	 
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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 Tender
	 
	 	27)	 	LIMITATION OF LIABILITY
	 
	 	 	 	The 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; and
	 
	 	e)	 	Liability
out of which by law the party liable cannot contract.

	 	28)	 	PROGRESS REPORTS
	 
	 	 	 	Commencing 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)	 	SUSPENSION
	 
	 	 	 	LGL 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.

			
	 	 	 
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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-WAIVER
	 
	 	 	 	Failure 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 ASSIGNMENT
	 
	 	 	 	Any 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)	 	DISPUTES
	 
	 	 	 	In 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)	 	NOTICES
	 
	 	 	 	Any 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;

			
	 	 	 
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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.

			
	 	 	 
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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	 	Consignments
	 
	 	 	 	Unless 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 Release
	 
	 	 	 	No 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 Weight
	 
	 	 	 	Wherever possible, Sellers shall ensure that items are packaged to comply with
normal truck loading dimensions as follows:

	 	 	 
	Maximum Length

	 	12.5 metres
	Maximum Width

	 	2.5 metres
	Maximum Height

	 	2.85 metres
	Maximum Weight

	 	24 tonnes gross

			
	 	 	 
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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 Merchandise
	 
	 	 	 	Merchandise 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 Materials
	 
	 	 	 	The 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.

			
	 	 	 
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LGL EQUIPMENT SUPPLY TENDER

	 	1.6	 	Fumigation Certificates
	 
	 	 	 	Where 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 Instruction
	 
	 	 	 	A 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 Lists
	 
	 	 	 	All 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	 	General
	 
	 	 	 	Packaging 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.

			
	 	 	 
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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 Cartons
	 
	 	 	 	Cardboard 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 Boxes
	 
	 	 	 	Wooden 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 Requirements
	 
	 	 
	To 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 crate
	 
	 	 
	400-600kg

	 	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 Cases
	 
	 	 	 	Closed 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 Sealant
	 
	 	 	 	Skid-type bases shall have runners with a minimum cross
sectional dimension not less than the following:

	 	 	 
	 	 	Minimum Size of
	Mass of Shipment	 	Timber
	(kg)	 	(mm x mm)
	Up to 1,000
	 	50 x 100
	1,000-3,000
	 	100 x 100
	3,000-7,500
	 	100 x 125
	7,500-12,500
	 	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 Drums
	 
	 	 	 	Steel drums shall be of export quality and shall be
non-returnable.
	 
	 	3.6	 	Bundling of Loose Items
	 
	 	 	 	Items 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 Packing
	 
	 	 	 	All 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
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LGL EQUIPMENT SUPPLY TENDER

	4.	 	Marking and Tagging of Merchandise

	 	4.1	 	General
	 
	 	 	 	All 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):

LIHIR GOLD LTD

MILLION OUNCE PLANT UPGRADE PROJECT

LIHIR ISLAND,

PAPUA NEW GUINEA

PURCHASE ORDER No. : ____________

PACKAGE No. : ____ OF____

GROSS WEIGHT: ______________kg

DIMENSIONS: ______L _____W _____H (cms)

	 	 	 	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 The
	 
	 	 	 	Seller 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 Only
	 
	 	 	 	In 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 Parts
	 
	 	 	 	All 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 Goods
	 
	 	 	 	Pallets 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:

For 4 litre tins or pails: no more than 5 layers.

For 10 litre tins or pails: no more than 3 layers.

For 20 litre tins or pails: no more than 3 layers.

For tins or pails of greater than 20 litres capacity: single layer only.

	 	 	 	Steel drums packed on pallets are to be strapped together with steel strapping.
	 
	 	8.	 	Special Requirements For Air freight
	 
	 	 	 	Goods 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-Sellers
	 
	 	 	 	Sub-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 Information
	 
	 	 	 	Any 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
	 	 	35	 
	2. Site
	 	 	35	 
	3. Employee Replacement
	 	 	35	 
	4. Transport
	 	 	35	 
	5. Accommodation and Messing
	 	 	35	 
	6. On-Site Facilities
	 	 	35	 
	7. First Aid
	 	 	35	 
	8. Reimbursable Sum
	 	 	36	 
	9. Per Diem Rate (Working Time)
	 	 	36	 
	10. Daywork Sheets
	 	 	36	 
	11.  Field Breaks
	 	 	36	 
	12. 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

1.1. The Contractor shall supply the Services starting on the Commencement Date in accordance with
these general conditions and any written or verbal directions given by the Principal from time to
time.

1.2. By supplying Services to the Principal in response to a Purchase Order, the Contractor agrees
to be bound by these general conditions.

1.3. The Principal shall pay the Contractor the Purchase Order Price for Services delivered by the
Contractor in accordance with these general conditions.

2. Contractor’s Obligations

2.1. The Contractor must perform the Services:

(a) using a high degree of skill, care and diligence and in a
good workmanlike manner in conformity with industry standards and
practices current from time to time;

(b) in accordance with the Principal’s requirements and schedule for completing the Services
provided by the Principal;

(c) in compliance with plant operating schedules in order that the
Contractor must at all times seek to minimise disruption to
the Principal’s operations;

(d) in accordance with all acts, laws, regulations, rules, orders, by-laws, orders, licences,
codes, permits and other statutory instruments that apply to the performance of the Services at
the Location and with the requirements, instructions or directions of any authorised person
exercising a right pursuant to the mining legislation, conditions of the mining tenements or
permits applicable at the Location;

(e) in accordance with all relevant guidelines or policies of the Principal as notified from time
to time, including those on workplace health and safety, camp rules, environment and community
relations, training and localisation and security (copies of which are available upon request;

(f) using suitably qualified, experienced, appropriately licensed and authorised personnel;

(g) in accordance with the Specification; and

(h) by the Due Date.

2.2. If the Principal (or someone authorised on behalf of the Principal) reasonably requests, the
Contractor must demonstrate compliance with clause 2.1. This includes providing evidence of
measures taken to achieve compliance.

2.3. The Contractor must supply such Documents as are reasonably required by the Principal. The
Principal’s review, approval of, or comment on, any part of the Services, including any Documents,
does not affect the Contractor’s obligations or absolve the Contractor from its sole responsibility
for performance of the Services in accordance with this agreement.

2.4. The Contractor shall be deemed to have examined all information relevant to the risks,
contingencies and relevant
physical conditions in relation to the Services. The Principal accepts no responsibility for latent
conditions.

3. Equipment

3.1. Unless previously agreed in writing with the Principal, the Contractor must supply all
equipment necessary to perform the Services. Any vehicles or machinery supplied by the Contractor
must be properly registered with the appropriate government authority, roadworthy and regularly
inspected for mechanical safety.

3.2. Where the Services involve the supply and installation of equipment, any such equipment
becomes the property of the Principal upon the earlier of incorporation into any of the Principal’s
existing plant or equipment or payment of the Contractor’s invoice that itemises the equipment in
question.

4. Representatives

4.1. Each party shall appoint a representative and may replace the representative by giving written
notice to the other party. The parties acknowledge that the representative of each party is
authorised to act on that party’s behalf.

5. Defects

5.1. The Contractor shall re-perform at its cost any part of the Services (or re-supply any
equipment) that is not in accordance with the requirements of these general conditions or the
Specification if directed to do so by the Principal within a period of 6 months following
completion of the Services.

6. Variations

6.1. The Principal may at any time, issue a direction to the
Contractor which:

(a) increases, decreases or deletes any part of the Services;

(b) changes the character, quality or quantity of any part of the Services; or

(c) requires the Contractor to supply additional Services.

6.2. If the Principal issues a direction under 6.1, the Contractor must carry out the Services as
varied by such direction.

6.3. If the Contractor becomes aware that a service is required which is additional to the
Services, or that there is a need to vary the Services, the Contractor must immediately notify the
Principal in writing giving details of the nature and extent of the variation.

6.4. The Principal and the Contractor must agree in writing the scope and extent of the variation
to the Services plus any adjustment to the Purchase Order Price before the Contractor carries out
the varied Services.

6.5. If the parties are unable to agree the adjustment to the Purchase Order Price, a variation
directed or approved by the Principal must be valued by the Principal’s Representative:

(a) in accordance with the rates in the Service Order Instructions Page to the extent the
Principal’s Representative determines it is reasonable to use them; or

(b) if clause 6.5.1 does not apply, using reasonable rates or prices.

			
	 	 	 
	Section I — Part C Technical On-Site Personnel Terms
	 	38

 

 

LGL EQUIPMENT SUPPLY TENDER

7. Payments

7.1. The Contractor shall render invoices to
the Principal’s Representative at regular
monthly intervals for work completed from the
date of the preceding payment claim (except in
respect of the first payment claim which is to
be for work completed from the commencement of
the Services) and in the manner and format
specified by the Principal’s Representative.

7.2. The Principal shall pay:

(a) the Purchase Order Price; and

(b) the Reimbursable Items.

7.3. The Purchase Order Price will be inclusive
of all costs associated with the supply of the
Services including Taxes (but excluding GST),
sick leave, annual leave, superannuation, long
service leave, consumables, fuel, tools and all
other operating expenses.

7.4. The Principal may deduct from payments to
be made to the Contractor any debt or other
moneys due from the Contractor to the
Principal, or the amount of any claim which
the Principal may
make against the Contractor.

7.5. The Principal may reject all or any
portion of an invoice (provided it acts
reasonably) and the Contractor may refer that
dispute for resolution under clause 15. While
the dispute is being resolved, the Principal is
not obliged to pay the disputed amount and the
Contractor is not entitled to suspend
performance of its obligations under this
agreement.

7.6. Subject to clauses 7.4, 7.5 and the
receipt of a correct tax invoice (including but
not limited to showing quantities of Services
provided, acceptance of those services by the
Principal, correctly calculated prices and
accurate payee details), by the end of the
month following the month of receipt of an
invoice, the Principal shall pay the
Contractor, provided that the sum of all
invoices is not to exceed the Purchase Order
Price. Payment will be made in the currency
shown on the Purchase Order.

7.7. Unless the Purchase Order specifically
provides otherwise, the Purchase Order Price
shall be fixed and not subject to any
adjustment for fluctuations in exchange rates
or variations in costs (direct or indirect) of
labour, materials, equipment or freight.

7.8. Subject to clause 7.9, where the
Contractor informs the Principal that payments
to be made by the Principal to the Contractor
under these general conditions are not liable
to taxation in Papua New Guinea and requests
that no foreign contractors withholding tax be
deducted from payments under this agreement, if
the Principal complies with that request,
Contractor indemnifies and keeps indemnified
the Principal for any costs and any liability
to the PNG taxation authorities.

7.9. The Principal is not obliged to comply
with a request by the Contractor not to deduct
any withholding amounts unless it has been
provided with sufficient evidence (in its
absolute discretion) that such withholdings are
not in fact required based on written evidence
from the PNG government.

8. Regular meetings

8.1. Each week, or as otherwise directed by the
Principal’s Representative, the Principal’s
Representative and Contractor’s Representative
will meet (at a location, time and date to be
advised by the Principal’s Representative) to
review the progress of the Services.

9. Training and Localisation

9.1. The Principal is committed to a policy
which maximises the employment of qualified
Papua New Guinea citizens and promotes the
transfer of skills through training.

9.2. The Contractor shall comply with the
Principal’s training and localisation policy
by using local Lihirian labour whenever
possible and economically justified.

9.3. The Principal reserves the right to
audit and monitor the Contractor at any time
for compliance with this clause 9.

10. Intellectual Property

10.1. The Contractor hereby assigns the
Intellectual Property Rights conceived or
produced by the Contractor during performance
of or in relation to the Services to the
Principal.

11. Insurance

11.1. The Contractor must maintain the
following insurance coverage:

(a) Public Liability Insurance covering all
legal liability to pay damages or compensation
arising out of any injury to or death of any
person or any loss of or damage to any property
(including, but not limited to, property of the
Principal) for an amount of not less than
$10,000,000 in respect of any one occurrence
and in the aggregate;

(b) Workers’ Compensation Insurance which
shall comply with the laws for the time being
in force in Papua New Guinea and any other
place outside Papua New Guinea where the
Contractor forms contracts with its employees,
contractors and agents engaged in the
provision of the Services. Such insurance
shall indemnify and keep indemnified the
Principal as principal in respect of any claim
made under any relevant workers or accident
compensation legislation or at common law in
Papua New Guinea and will include where non
Papua New Guinea domiciled employees,
contractors and agents are engaged in the
provision of the Services in Papua New Guinea
an additional WETHA Policy Extension;

(c) Insurance which is compulsory under the
laws for the time being in force in Papua New
Guinea governing the use of motor vehicles;
and

(d) Third Party Property Damage insurance
covering all mechanicallypropelled vehicles
used in connection with the Services with a
limit of liability for damage to third
parties of not less than $5,000,000 in
respect of any one accident or series of
accidents arising out of one event;

11.2. Insurances must be with a reputable
insurer and be acceptable to the Principal
(acting reasonably).

11.3. The interests of the Principal must
be noted on all policies, where
practicable.

11.4. Prior to the commencement of the
Services, and at each anniversary of the
commencement, the Contractor must provide to
the Principal certificates of currency for the
insurances listed in clause 11.1.

11.5. All insurances must be maintained in full
force and effect for the duration of the
provision of the Services and for a 6 month
period following completion of the Services.

11.6. The effecting of insurance as required
under this clause shall not in any way limit
the obligations or responsibilities of the
Contractor.

			
	 	 	 
	Section I — Part B Purchase Order Terms and Conditions
	 	39

 

 

LGL EQUIPMENT SUPPLY TENDER

12. Indemnity

12.1. The Contractor shall indemnify the
Principal against any loss or damage and
against all claims, demands, proceedings,
costs, charges and expenses whatsoever, arising
out of:

(a) any claim made by a third party against
the Principal or Contractor; and

(b) loss of or damage to any property
(including property of the principal) or
injury to or death of any person, arising out
of or in connection with the Services, except
to the extent that such loss or damage was
caused or contributed to by the acts or
omissions of the Principal.

13. Taxation

13.1. Liability For Tax

13.1.1. The Contractor shall reimburse the
Principal for the amount of the Principal’s
liability for any Tax (excluding Income Tax)
levied in respect of any supply made by the
Contractor under these general conditions.

13.1.2. Any consideration to be paid or
provided for a supply made under or in
connection with these general conditions is
expressed inclusive of all Tax, other than
value added tax/goods and services tax referred
to in clause 13.2 (hereafter referred to as
“GST”).

13.1.3. Should the Principal be required to
withhold any amounts on account of any Tax
(excluding Income Tax), the corresponding
withheld amount will be taken as a reduction
in the consideration to be paid or provided.

13.2. Value Added Tax/Goods and Services Tax

13.2.1. Words or expressions used in this
clause which are defined in the A New Tax
System (Goods and Services Tax) Act 1999 (Cth)
(“GST Law”) or the Goods and Services Tax Act
2003 (PNG) (“PNG GST Act”) and related
imposition Acts have the same meaning in this
clause, as applicable.

13.2.2. “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;

13.2.3. “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:

(a) an input tax credit for an acquisition
made by that Party but to which another
member of the same GST Group is entitled; or

(b) 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 of a group of companies.

13.2.4. Any consideration to be paid or
provided for a supply made under or in
connection with these general conditions,
unless specifically described as “GST
inclusive”, does not include an amount on
account of GST (“GST exclusive
consideration”).

13.2.5. Any consideration to be paid or
provided for a supply made under or in
connection with the Agreement will be made on
the basis that the supply is Zero-Rated, unless
the PNG GST Act requires that the supply be
made on a basis taxable at some other rate in
which case unless specifically described
in the Agreement as “GST inclusive”, does
not include an amount on account of GST.

13.2.6. Despite any other provision, if a party
(“Supplier”) makes a supply under or in
connection with these general conditions on
which GST is imposed at any other rate than
zero percent (not being a supply the
consideration for which is specifically
described as “GST inclusive”):

(a) The consideration payable or to be
provided for that supply is increased by, and
the recipient of the supply (“Recipient”) must
also pay to the Supplier, an amount equal to
the GST payable by the Supplier on that
supply;

(b) The amount by which the GST exclusive
consideration is increased must be paid to the
Supplier by the Recipient at the same
time as the GST exclusive consideration is
payable or to be provided; and

(c) Notwithstanding any other provision, 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.

13.2.7. Notwithstanding the above provisions,
the Principal is only required to gross up a
payment if and to the extent that the Principal
is entitled to claim a corresponding credit,
refund or rebate in respect of the grossed up
amount.

13.2.8. No GST under the PNG GST Act on GST
taxed inputs is claimable against the Principal
on any Reimbursable Items or otherwise pursuant
to any provision of this agreement.

13.3. If a payment to a party under these
general conditions 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.

13.4. If, at any time, an adjustment event
arises in respect of any supply made by a party
under these general conditions, a corresponding
adjustment must be made between the parties.
Payments to give effect to the adjustment must
be made between the parties and the Supplier
must issue a valid adjustment note in relation
to the adjustment event.

13.5. This clause does not merge on
completion or termination.

14. Termination

14.1. If the Contractor fails to provide any
part of the Services in accordance with the
requirements of this agreement or in the
opinion of the Principal, the Services are of
an unsatisfactory quality, then in addition to
any other rights and remedies which may be
available to the Principal under these general
conditions, the Principal may, in its
discretion by notice in writing, direct the
Contractor to remedy the deficiency and defect.
In default of compliance with any notice given,
the Principal may remedy the deficiency or
defect and recover from the Contractor all
costs, loss and damages incurred as a result of
the Contractor’s non compliance.

14.2. If at any time:

(a) the Contractor fails to carry out the
Services with due diligence and in a
competent manner to the reasonable
satisfaction of the Principal; or

(b) the Contractor otherwise breaches a term of this agreement; or

			
	 	 	 
	Section I — Part B Purchase Order Terms and Conditions
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LGL EQUIPMENT SUPPLY TENDER

(c) the Contractor refuses or fails to carry
out any instruction or direction lawfully
given by the Principal; or

(d) the standard of the Contractor’s equipment
or materials, or activities of any personnel
are considered by the Principal to be
detrimental to the performance of the
Services, or hazardous to the Contractor’s or
Principal’s employees or reputation; or then
the Principal may give the Contractor notice
in writing specifying the default and (where
the default is capable of being remedied)
requiring the Contractor to remedy the same at
the Contractor’s expense within a reasonable
period of time, being no less than 5 Business
Days and no more than 20 Business Days (“a
Default Notice”).

14.3. If, following the expiration of the time
period to remedy stated in a Default Notice,
the Contractor fails to remedy the default,
then the Principal (without prejudice to any
other rights that it may have under these
general conditions or otherwise) may exercise
all or any of the following powers:

(a) suspend payment until the default has been remedied;

(b) remedy the deficiency or defect and
recover from the Contractor all costs, loss
and damages incurred as a result of the
Contractor’s non compliance; or

(c) terminate this agreement.

14.4. The provision of the Services may be
terminated with immediate effect by written
notice if, the Contractor suffers an
Insolvency Event or in the opinion of the
Principal:

(a) the Contractor fails to comply with any
safety obligation which is of a significant
nature to justify termination;

(b) the Contractor causes or
contributes to serious environmental
harm;

(c) the Contractor has failed to comply with
any legislative obligation that is
fundamental to the performance of the
Services; or

(d) the Contractor commits a serious or
persistent breach of any of the terms of these
general conditions which is incapable of being
remedied to the reasonable satisfaction of the
Principal.

14.5. Termination for Convenience

14.5.1. The provision of the Services may be
terminated upon the Principal giving 21 days
written notice to the Contractor that it no
longer requires the Contractor’s services.

14.5.2. Upon providing this notice, the
Contractor shall be entitled to payment for
all Services provided up to and including the
date of termination subject to the
requirement that Services provided following
receipt of a notice in clause 14.5.1 must be
approved by the Principal in writing.

14.6. Unless otherwise agreed, the Contractor
shall not be entitled to any other
compensation for termination in accordance
with clause 14.5, including for any loss or
profits, loss of opportunity, loss of business
or anticipated earnings.

14.7. In the event of termination for any
reason, the Contractor shall:

(a) deliver to the Principal all data,
specifications, information, drawings,
reports, accounts and all other documents and
materials prepared by the Contractor or its
subcontractors in connection with the Services
as at the date of the Principal’s
notice and all approvals, consents,
authorisations and the like obtained from
all relevant authorities;

(b) if required by the Principal, novate to
the Principal any subcontracts or other
agreements in relation to the Services;

(c) remove any of its materials and other
things on or in the vicinity of the Location
or the Principal’s premises as directed by
the Principal; and

(d) ensure the Location is left in a
safe, clean and tidy condition.

15. Dispute Resolution

15.1. Either party may provide written notice
to the other of any dispute arising in relation
to the Services or these general conditions.
This notice must contain particulars of the
alleged dispute and be in writing.

15.2. Within 14 days of receiving a
notification of dispute under clause 15.1,
representatives of the parties shall meet
together and use their reasonable endeavours to
settle the dispute.

15.3. If after a period of 28 days after the
notice under clause 15.1 was delivered, the
representatives have been unable to resolve
the dispute, the dispute will be referred to a
senior manager of each party who shall use
their reasonable endeavours to settle the
dispute. If the dispute is not resolved by
senior managers within 42 days after the
notice under clause 15.1 was delivered, then
either party may issue proceedings to have the
dispute determined.

15.4. Despite the existence of a dispute, the
parties must continue to perform their
respective obligations under these general
conditions.

15.5. No party may commence proceedings in
court in relation to a dispute unless:

(a) a notice has been delivered in relation
to that dispute under clause 15.1; and

(b) the party commencing proceedings has
complied with its obligations under clauses
15.2 and 15.3 (to the extent reasonably
possible),

(c) or the only relief sought is urgent
injunctive or urgent declaratory relief.

16. Force Majeure

16.1. Where either party’s ability to carry
out its obligations under the Purchase Order
(not including payment obligations) is
prevented, impeded, restricted or delayed by
any cause outside its reasonable control, then
the party whose ability is so impeded,
restricted or affected shall have the right,
by giving written notice to the other party,
to suspend performance of its obligations
until such time that the party giving the
notice is able to continue the performance of
its obligations under this agreement.

17. Confidentiality

17.1. The Contractor shall keep secret and
confidential and shall not disclose to any
third party without the prior consent of the
Principal any information, data,
specifications, drawings, reports, accounts or
other documents and things supplied by the
Principal or made available by the Principal or
brought into existence by the Contractor in
supplying the Services and shall take or cause
to be taken, such reasonable precautions as

			
	 	 	 
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LGL EQUIPMENT SUPPLY TENDER

necessary to maintain secrecy and
confidentiality and prevent disclosure.

18. No Assignment or Subcontracting

18.1. The Contractor shall not assign this
agreement, in whole or in part, without the
prior written consent of the Principal.

18.2. No part of the Services may be
subcontracted out without the Principal’s prior
written consent.

19. General

19.1. Relationship

Nothing expressed or implied in this agreement
and no act by a party may be treated as
creating an employer and employee relationship,
a partnership, a joint venture, the
relationship of principal and agent or a
fiduciary relationship between the parties. The
Contractor shall not bind or commit or purport
to bind or commit the Principal in any way or
pledge the credit of the Principal for any
purpose.

19.2. Waiver of Rights

Failure by the Principal to insist upon strict
performance of any term or condition hereof
shall not be deemed to be a waiver of any of
the Principal’s rights or remedies hereunder
nor of any rights arising out of any subsequent
breach by or default of the Contractor.

19.3. Governing Law

The Purchase Order is subject to and to be
construed in accordance with the laws for the
time being in force in Papua New Guinea. Each
party irrevocably submits to the non exclusive
jurisdiction of courts exercising jurisdiction
in Papua New Guinea and courts of appeal from
them in respect of any proceedings arising out
of or in connection with this agreement.

19.4. Entire agreement

This agreement states all the express terms of
this agreement between the parties in respect
of its subject matter. It supersedes all prior
discussions and negotiations, in respect of its
subject matter.

19.5. Order of Precedence

The documents listed below together form
the agreement between the Principal and the
Contractor:

(a) the Service Order Instruction
Page (if any); (b) the Purchase
Order; (c) any Specification(s);
and

(d) these general conditions. If there is any
ambiguity, discrepancy or inconsistency
between the documents comprising the
agreement, the documents shall rank in the
order of precedence listed above.

20. Notices

20.1. Any notice, request or other
communication under this Purchase Order
(“Notice”) must be in writing and addressed to
the other party at the address shown in the
Service Order Instructions Page.

20.2. Each Notice may be delivered personally
or by facsimile transmission or pre-paid mail
and shall be treated as having been duly
received:

(a) when delivered (in the case of its
being personally delivered);

(b) on the day of the facsimile transmission
if a Business Day, otherwise on the next
following Business Day (in the case of its
being transmitted by facsimile to the
facsimile number of the recipient and a
correct and complete transmission report for
that transmission being received by the
sender); and

(c) on the third Business Day after posting
(in the case of its being sent by pre-paid
mail).

21. Definitions and Interpretation

21.1. In the Purchase Order:

(a) The Principal is Lihir Gold
Limited (a company incorporated in
PNG, ARBN 069 803 998).

(b) The Contractor is the organisation or
person providing the Services;

(c) “Business Day” means a day on which banks
are open for business in Port Moresby
excluding a Saturday, Sunday or public
holiday in that city;

(d) “Claim” means any claim, action, suit,
demand, proceeding, notice, litigation,
investigation or judgement whether based in
contract, tort, under statute or otherwise;

(e) “Commencement Date” means the date for
commencement of the Services as specified in
the Purchase Order;

(f) “Due Date” means the date for completion
of the Services specified in a Purchase Order;

(g) “Documents” means any document, item or
material to be provided by the Contractor
including any drawings, manuals and documents
required to effect customs clearance and any
other documents which the Principal
reasonably requires;

(h) “including” (and any variation) is to be
read as if followed by “(without limitation)”;

(i) “Income Tax” means any tax of general
application imposed on net income;

(j) “Insolvency Event” means, in relation to
any party, that any of the following events or
circumstances have occurred:

(i) the affected party becomes insolvent or
bankrupt or is unable to pay its debts when
they fall due or commits an act of
bankruptcy or is declared insolvent; or

(ii) proceedings are commenced to appoint a
liquidator or provisional liquidator to the
affected party (not being for the purposes
of amalgamation or reconstruction of the
affected party); or

(iii) the affected party is placed under
official management or administration; or

(iv) any trustee, receiver or receiver and
manager is appointed in respect of any
material part of the affected party’s
assets; or

(v) anything analogous, or having
substantially similar effect, to the
occurrence of these events in relation to
the affected party;

			
	 	 	 
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LGL EQUIPMENT SUPPLY TENDER

(k) “Intellectual Property Right” means any
intellectual and industrial property rights,
including trade marks, copyright (including
future copyright), inventions, patents,
designs, circuits and other eligible layouts,
database rights, and other intellectual
property rights, including any application or
right to apply for registration of any of
these rights;

(l) “Location” is the location specified in
the Purchase Order or such other sites as
directed by the Principal;

(m) “Purchase Order” means the purchase order
issued by the Principal for the supply of the
Services at the Location for the Purchase
Order Price;

(n) “Purchase Order Price” means the price
specified in the Purchase Order or, if no
price is specified in the Purchase Order,
calculated by reference to the hourly rates
specified in the Service Order Instructions
Page;

(o) “Reimbursable Items” are those items
specified in the Service Order Instructions
Page or the Purchase Order as being
Reimbursable Items;

(p) “Services” means those Services
identified in the Purchase Order, to be
provided by the Contractor in accordance
with these general conditions;

(q) “Service Order Instructions Page” means
the document identified as such which, when
completed and signed by the Principal and the
Contractor, forms part of this agreement;

(r) “Specification” means any specification
provided by or approved by the Principal
(including any modifications or variations,
provided they are approved by the
Principal);

(s) “Tax” means any tax, levy, royalty, rate,
duty, fee, impost, customs or other charge
imposed by any governmental,
semi-governmental, or other body authorised by
law whether in the Supplier’s country of
origin, Australia, PNG or elsewhere 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,
a petroleum resource rent tax or any
taxrespecting environmental effects including
a carbon tax.

Version 2A as at 15 May 2008

			
	 	 	 
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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: Lihir Gold Limited (“The Principal”)

ABN/COMPANY NUMBER: a company incorporated in Papua New Guinea (ARBN 069 803 998)

ADDRESS: Level 7, Pacific Place Cnr of Champion Parade and Musgrave Street, Port Moresby

FACSIMILE: (+675) 986 4018

SERVICES: As specified in the Purchase Order and any additional instructions or Specifications
provided by the Principal to the Contractor.

COMMENCEMENT DATE: The date specified in the Purchase Order or such other date as notified in
writing by the Principal.

DUE DATE: The date specified in the Purchase Order or such other date as notified in writing by the
Principal.

FEES: The Purchase Order Price is to be as set out in the Purchase Order or, if no price is
specified in the Purchase Order, calculated by reference to the hourly rates specified below.

Reimbursable Sum: [To be specified]

Per Diem Rate (Working Time) [To be specified]

Equipment Hire Rates:      [To be specified]

Accommodation Required
     Yes/No                                  
            Number of Rooms               
                         

REIMBURSABLE ITEMS: any reasonable costs properly incurred by the Contractor with the
Principal’s prior written consent but excluding additional labour, fuel, tools and other
general operating expenses. Items purchased from the Principal’s Lihir Island supply warehouse
will be charged to the Contractor at cost plus a 10% admin fee.

Principal’s Representative: [To be specified]

Position Title: [To be specified]

Contractor’s Representative: [To be specified]

Position Title: [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	 	 	1	 
	 	 	 
	 	 	 	 
	1.1	 	General
	 	 	1	 
	 	 	 
	 	 	 	 
	Site Conditions	 	 	1	 
	 	 	 
	 	 	 	 
	1.2	 	Location
	 	 	1	 
	 	 	 
	 	 	 	 
	1.3	 	Climate
	 	 	1	 
	 	 	 
	 	 	 	 
	Standards, Codes and Regulations	 	 	1	 
	 	 	 
	 	 	 	 
	1.4	 	Statutory
	 	 	1	 
	 	 	 
	 	 	 	 
	1.5	 	Technical Specifications
	 	 	1	 
	 	 	 
	 	 	 	 
	1.6	 	Drawing Conventions
	 	 	2	 
	 	 	 
	 	 	 	 
	1.7	 	Labeling Conventions
	 	 	3	 
	 	 	 
	 	 	 	 
	1.8	 	Project Documentation
	 	 	 	 
	 	 	 
	 	 	 	 
	1.9	 	Correspondence
	 	 	4	 
	 	 	 
	 	 	 	 
	Appendix A — List of Standard Specifications	 	 	6	 

			
	 	 	 
	Section II Site Conditions and Equipment and Material Standards
	 	1

 

 

LGL EQUIPMENT SUPPLY TENDER

SCOPE

	1.1	 	General
	 
	 	 	This 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	 	Location
	 
	 	 	The 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	 	Climate
	 
	 	 	The 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	 	Statutory
	 
	 	 	Equipment 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 Specifications
	 
	 	 	All 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
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LGL EQUIPMENT SUPPLY TENDER

	1.6	 	Drawing Conventions
	 
	1.6.1	 	Relevant Specifications
	 
	 	 	To 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 Structure
	 
	 	 	All 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 Titleblock
	 
	 	 	Each 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 Filenames
	 
	 	 	Electronic 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 Filename
	 
	 	 	 	 
	 

	 	1341-C-2046 Rev 2
	 	MOPU-1341c2046_2.dwg

As in Section 1.6.3 the Project ID Code (‘MOPU-’) shall be removed from each and every
filename upon completion of ‘As Constructed’ revisions.

			
	 	 	 
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LGL EQUIPMENT SUPPLY TENDER

	1.6.5	 	Electronic Formats
	 
	 	 	All 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 Conventions
	 
	1.7.1	 	Relevant Specifications
	 
	 	 	Equipment, 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 Numbering
	 
	 	 	Each 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 Numbering
	 
	 	 	Instrumentation 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 Labeling
	 
	 	 	All 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 Documentation
	 
	 	 	All 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	 	Correspondence
	 
	1.9.1	 	General
	 
	 	 	For 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 Information
	 
	 	 	Consultants / 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	 	Title
	A001

	 	Project Instructions
	A002

	 	Specification for AutoCAD Drawings
	A003

	 	Specification for Vendor Documentation
	A004

	 	Register Project Information
	A005

	 	Specification for Piping Information
	A006

	 	Standard Format for Piping Information
	A007

	 	Specification for Loop Numbering
	A008

	 	Standard Transmittal Form

Technical Specifications — Design

	 	 	 
	Spec. Number	 	Title
	E100

	 	General Electrical Specification
	E101

	 	DCS and Control System Specification
	D002

	 	Civil & Structural Design Criteria
	D003

	 	Mechanical Design Criteria
	D004

	 	Piping Design Criteria

Technical Specifications — Construction

General

	 	 	 
	Spec. Number	 	Title
	G001

	 	Specification for Packaging and Shipping

Electrical

	 	 	 
	Spec. Number	 	Title
	E001

	 	Specification for Low Voltage Motor Control Centres
	E002

	 	Specification for HV Switchgear
	E003

	 	Specification for Transportable Switchrooms
	E004

	 	Specification for Transformers
	E005

	 	Specification for Motors
	E006

	 	Instruments and Field Devices
	E007

	 	LV Cable
	E008

	 	HV Cable
	E009

	 	Variable Speed Drives and Soft Starters

Civil and Structural

	 	 	 
	Spec. Number	 	Title
	S001

	 	Specification for Bulk Earthworks
	S002

	 	Specification for Piling
	S003

	 	Specification for General Civil Works
	S004

	 	Specification for Concrete

			
	 	 	 
	Section II Site Conditions and Equipment and Material Standards
	 	6

 

 

LGL EQUIPMENT SUPPLY TENDER

Civil and Structural (Cont’d)

	 	 	 
	Spec. Number	 	Title
	S005

	 	Specification for Concrete Masonry
	S006

	 	Specification for Structural Steelwork
	S007

	 	Specification for Cladding

Mechanical and Piping

	 	 	 
	Spec.	 	 
	Number	 	Title
	M001

	 	Specification for Agitators
	M002

	 	Specification for Cranes, Monorails and Hoists
	M003

	 	Specification for Compressed Air Services
	M004

	 	Specification for Conveyor Equipment
	M005

	 	Specification for Fans and Blowers
	M006

	 	Specification for Instrumentation
	M007

	 	Specification for Piping
	M008

	 	Specification for Protective Coatings
	M009

	 	Specification for Pumps
	M010

	 	Specification for Signage
	M011

	 	Specification for Specialty Piping Items
	M012

	 	Specification for Tanks
	M013

	 	Specification for Valving
	M100

	 	Specification for Installation of Mechanical Plant

			
	 	 	 
	Section II Site Conditions and Equipment and Material Standards
	 	7

 

 

MILLION OUNCE PLANT UPGRADE (MOPU)

PROJECT

TENDER

MOPU-1003

SECTION III

SCOPE OF WORK

For

PRESSURE AUTOCLAVE (1343-AC2004)

Table of Contents

	 	 	 	 	 
	1 SCOPE
	 	 	1	 
	 
	 	 	 	 
	2 GENERAL REQUIREMENTS
	 	 	2	 
	 
	 	 	 	 
	3 TECHNICAL REQUIREMENTS
	 	 	2	 
	 
	 	 	 	 
	4 SURFACE PROTECTION
	 	 	4	 
	 
	 	 	 	 
	5 ASSEMBLY AND TESTING
	 	 	4	 
	 
	 	 	 	 
	6 TENDER SUBMISSION INFORMATION
	 	 	4	 
	 
	 	 	 	 
	7 SUPPLY SCHEDULE
	 	 	4	 

Attachments

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Revis	 	 
	Filename	 	File type	 	ion	 	File Description
	362-ME-103-00-001

	 	Pdf
	 	 	1	 	 	Carbon Steel Autoclave Fabrication Specification
	362-MA-103-00-001

	 	Pdf
	 	 	0	 	 	High Temperature Carbon Steel Painting Specification
	362-ME-503-00-001

	 	Pdf
	 	 	1	 	 	Autoclave Shell, General Arrangement Drawing
	362-ME-503-00-002

	 	Pdf
	 	 	1	 	 	Pressure Leach Autoclave, Nozzle Seal Ring Details
Drawing
	362-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
Drawing
	MOPU-0000-01-S

	 	Pdf
	 	 	01	 	 	Project Reference
	Project Reference
	 	 	 	 	 	 	 	 

 

 

			
	DESIGN, MANUFACTURE & SUPPLY OF
	 	Page 1 of 6
	Pressure Autoclave	 	 

1 SCOPE

Lihir Gold Limited (LGL) is currently upgrading its operation on Lihir Island in the New
Ireland province of Papua New Guinea. The works, known as the Million Ounce Plant
Upgrade (MOPU) project, comprise the provision of additional pressure oxidation capacity
together with a wide range of ancillary process and utility services to facilitate
increased plant throughput. The Pressure Autoclave shall be utilised to increase the
capacity in the pressure oxidation facility. Design for the project has begun, with
design for the pressure oxidation area soon to begin.

This purchase specification covers the design, manufacture, factory assembly and
testing, and delivery to nearest port of loading of a Pressure Autoclave in accordance
with the specification attached and listed within the cover to this section.

Any deviations from the requirements of this specification shall be stated in the Form
of Tender, Section IV. In the absence of such statements, it shall be understood that
all requirements of this specification have been fulfilled without exception.

1.1 WORK INCLUDED

Work shall include, but not be limited to, the following items:

	 	•	 	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

The following items are specifically excluded from the scope of this specification and
will be provided by others:

	 	•	 	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
	 	Requirement

	 
	 	 	 	 	 	 
	Length (Tan to Tan)

	 	metres
	 	44.82	 	 
	 
	 	 	 	 	 	 
	Internal diameter (Steel)

	 	metres
	 	5.6	 	 
	 
	 	 	 	 	 	 
	Vessel Volume (normal fluid fill)

	 	m3
	 	858	 	 
	 
	 	 	 	 	 	 
	Head Type

	 	 	 	2:1 ASME Elliptical

	 
	 	 	 	 	 	 
	Design Operating Pressure

	 	kPa (abs)
	 	3100	 	 
	 
	 	 	 	 	 	 
	Design Operating Temperature

	 	oC
	 	236	 	 
	 
	 	 	 	 	 	 
	Agitator Nozzle Diameter

	 	millimetres
	 	800	 	 
	 
	 	 	 	 	 	 
	Agitator 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 6
	Pressure Autoclave	 	 

4 SURFACE PROTECTION

The equipment called for herein shall be factory finished and painted in
accordance with the attached surface preparation and painting specifications.

Painting and factory finish shall also be suitable for indoor installation, and
for exposure to the elements (during transportation to site).

5 ASSEMBLY AND TESTING

Inspection procedures shall be in accordance with the approved Inspection and
Test Plan (ITP) and as required by specific codes (described in the attached
specifications).

A copy of inspection and test reports for materials used shall be forwarded to
LGL as required by the specifications.

Components that require separate shipment (ie additional connections, gaskets,
etc.) must be packaged suitably for export shipment, shall be properly marked,
in accordance with LGL shipping and packaging specifications.

6 TENDER SUBMISSION INFORMATION

As part of Section IV — Form of Tender, the Tenderer shall provide the following information:

	 	•	 	Details of any deviations from the Specifications.

7 SUPPLY SCHEDULE

The Tenderer shall plan their works to complete the activities listed to comply
with the following supply schedule:

	 	 	 
	Activity	 	Time After Contract Award
	Preliminary 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 6
	Pressure Autoclave	 	 

	 	 	 
	Activity	 	Time After Contract Award
	Provision of Preliminary Installation, Operation &
Maintenance Manual for Review

	 	 
	 
	 	 
	Provision 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

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Approved	 	 
	Revision	 	Date	 	Author	 	By	 	Comments
	01

	 	17/6/08
	 	CW
	 	 	 	Update of cross references in Sections 5.1 and 6.3
	00

	 	14/05/08
	 	CW
	 	 	 	Initial Project Issue

 

 

Table of Contents

	 	 	 	 	 
	1 INTRODUCTION
	 	 	3	 
	 
	 	 	 	 
	2 PROJECT DETAILS
	 	 	3	 
	 
	 	 	 	 
	2.1
Title
	 	 	3	 
	2.2 Project id Code
	 	 	3	 
	2.3 Project Address
	 	 	3	 
	 
	 	 	 	 
	3 GENERAL INFORMATION
	 	 	3	 
	 
	 	 	 	 
	4 PROJECT DEFINITION
	 	 	3	 
	 
	 	 	 	 
	5 PROJECT STRUCTURE
	 	 	3	 
	 
	 	 	 	 
	5.1 Facility Numbering
	 	 	3	 
	 
	 	 	 	 
	6 DRAWING CONVENTIONS
	 	 	4	 
	 
	 	 	 	 
	6.1 Relevant Specifications
	 	 	4	 
	6.2 Drawing Structure
	 	 	4	 
	6.3 Project Titleblock
	 	 	4	 
	6.4 Electronic Filenames
	 	 	4	 
	6.5 Electronic Formats
	 	 	5	 
	 
	 	 	 	 
	7 LABELING CONVENTIONS
	 	 	5	 
	 
	 	 	 	 
	7.1 Relevant Specifications
	 	 	5	 
	7.2 Equipment Numbering
	 	 	5	 
	7.3 Loop Numbering
	 	 	5	 
	7.4 Pipe Labeling
	 	 	6	 
	 
	 	 	 	 
	8 PROJECT DOCUMENTATION
	 	 	6	 
	 
	 	 	 	 
	9 CORRESPONDENCE
	 	 	6	 
	 
	 	 	 	 
	9.1 General
	 	 	6	 
	9.2 Formal Transmittal of Information
	 	 	7	 
	 
	 	 	 	 
	10 TECHNICAL SPECIFICATIONS
	 	 	7	 
	 
	 	 	 	 
	11 SURVEY DATUMS
	 	 	7	 
	 
	 	 	 	 
	12 COMMUNITY PROVISIONS
	 	 	8	 
	 
	 	 	 	 
	13 SOIL GEOCHEMISTRY
	 	 	8	 
	 
	 	 	 	 
	14 EARTHWORKS DESIGN CONSTRAINTS
	 	 	8	 
	 
	 	 	 	 
	14.1 Sourcing of Borrow Material
	 	 	8	 
	14.2 Disposal of Excavated Spoil
	 	 	9	 
	 
	 	 	 	 
	15 ECONOMIC COMPARISONS
	 	 	9	 
	 
	 	 	 	 
	APPENDIX A LIST OF FEASIBILITY STUDY DESIGN OUTPUTS
	 	 	10	 
	 
	 	 	 	 
	APPENDIX B PROJECT FACILITY NUMBERS
	 	 	11	 
	 
	 	 	 	 
	APPENDIX C LIST OF STANDARD SPECIFICATIONS
	 	 	13	 

Page 2 of 14

 

1 INTRODUCTION

This document relates to the Million Ounce Plant Upgrade (MOPU) Project being undertaken
to upgrade ore processing facilities at the LGL operation on Lihir Island in PNG. The
primary objective of the document is to summarise the key administrative considerations
and background information that inform detailed design of the works.

2 PROJECT DETAILS

2.1 TITLE

The title which shall appear on all project documentation is:

     LGL

     Million Ounce Plant Upgrade Project

2.2 PROJECT ID CODE

The Project ID code for labelling of all drawings and documentation is MOPU.

2.3 PROJECT ADDRESS

The formal mailing address for the project is as follows:

MOPU Project

c/- LGL,

GPO Box 905

Brisbane 4001

Attention: The Project Manager

3 GENERAL INFORMATION

Various terms have been used in the Feasibility Study and other reference documentation to
identify the project client including ‘Lihir Management Company (LMC)’, ‘Lihir Services
Australia (LSA)’, ‘Lihir Gold Limited (LGL)’ and ‘Lihir’. For the purposes of this
project, ‘LGL’ shall be used for all client references unless otherwise advised.

4 PROJECT DEFINITION

The scope of works required under the project is defined by the ‘Process Design Criteria’
and the Feasibility Study summary reports listed in Appendix A.

5 PROJECT STRUCTURE

5.1 FACILITY NUMBERING

All new works under the MOPU project shall be classified against one (only) of the
facilities identified in Appendix B. This classification will define various requirements
for drawing numbering and equipment / pipe numbering and project cost control as per
Sections 6 and 7.

The battery limits between facilities shall be defined by the facility descriptions given

Page 3 of 14

 

in Appendix B and the following conventions:

	 	•	 	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

To 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 6.2 to 6.5 below.

6.2 DRAWING STRUCTURE

All 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’.

6.3 PROJECT TITLEBLOCK

Each drawing title shall comprise 3 to 4 lines as follows:

Line 1 (Folio Title): “Processing Plant” or “Geothermal Power Supply” as appropriate.

Line 2 (Facility Name): Relevant facility name as defined by Appendix B.

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.

6.4 ELECTRONIC FILENAMES

Electronic drawing filenames shall be of the form ‘MOPU-AAAABCCCC_D.dwg’ where ‘AAAABCCCC’
represents a contraction of the drawing number defined by Section 6.2 and ‘D’ represents
the current drawing revision number, as per the following:

Page 4 of 14

 

	 	 	 
	Drawing Number

	 	Electronic Filename
	 
	 	 
	1341-C-2046 Rev 2
	 	MOPU-1341c2046_2.dwg

As in Section 6.3 the Project ID Code (‘MOPU-’) shall be removed from each and every
filename upon completion of ‘As Constructed’ revisions.

6.5 ELECTRONIC FORMATS

All AutoCAD drawing files supplied to LGL shall be saved in a format fully compatible with
AutoCAD 2004 to ensure that files can be readily shared and accessed by the various
parties involved in the project.

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.

7 LABELING CONVENTIONS

7.1 RELEVANT SPECIFICATIONS

Equipment, cabling and piping shall be labeled 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 7.2 to 7.4
below.

7.2 EQUIPMENT NUMBERING

Each 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.

7.3 LOOP NUMBERING

Instrumentation 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.

Page 5 of 14

 

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.

7.4 PIPE LABELING

All 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.

8 PROJECT DOCUMENTATION

All 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.

9 CORRESPONDENCE

9.1 GENERAL

For 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 (eg Contract Number or Purchase Order number), C is single character code
identifying the email originator (as

Page 6 of 14

 

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.

9.2 FORMAL TRANSMITTAL OF INFORMATION

Consultants / 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.

10 TECHNICAL SPECIFICATIONS

All design and construction shall comply with the relevant standard specifications listed
in Appendix C.

11 SURVEY DATUMS

Unless otherwise indicated all coordinate and level information for the MOPU upgrade
project shall be based on the “Lihir Grid” which is a plane coordinate system in metres
aligned on AMG North. The site position datum is PSM 12340 “UNIFORM 8” with the following
characteristics:

	 	 	 	 	 	 	 	 	 
	 	 	Coordinates and	 	AMG Coordinates
	Parameter	 	RL to “Lihir Grid”	 	and RL
	Easting
	 	 	11 843.12	 	 	 	461 842.3	 
	Northing
	 	 	5 030.31	 	 	 	9 655 030.1	 
	RL
	 	 	18.50	 	 	 	18.60	 

The “Lihir Grid” bearing is AMG plane bearing at PSM12340.

It is to be noted that the site also uses a second level datum for the mine pit and
general topographical survey. This mine datum is based on a level at PSM 12340 of
RL1018.50 and conversion to the project level datum entails subtraction of 1000.000m.
Certain survey / reference information provided to Consultants and

Page 7 of 14

 

Vendors may reflect the mine datum and should be converted to the project datum as
required to support design and construction.

12 COMMUNITY PROVISIONS

Continued engagement of the local community will be critical to the success of the upgrade
project and all engineering design and construction shall be consistent with the
intentions of the project Community Engagement Strategy and Contracting Plan. In
particular, design and construction planning shall aim to maximise opportunities for local
contracting or labour hire services wherever it is possible to do so without compromising
other principles of cost effectiveness, scheduling, quality, and ooccupational health and
safety. The key capacities by which the local community could support the project include:

	 	•	 	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

Soil / soil pore water can be relatively aggressive in some parts of the site as a
consequence of the volcanic origins of most materials. Unless specific soil test
information is available for the immediate footprint of the works, the following
worst-case soil geo-chemistry shall be assumed for design purposes:

	 	•	 	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

An existing basalt quarry operated by a local cooperative is located adjacent to the
Londolovit Weir (approx 10km one-way haul from process plant site). Development of
additional hard-rock quarries is likely be problematic from a community relations
perspective and it is envisaged that the supply of concrete aggregate and crushed rock
will be limited to the output of the existing quarry and crushing plant..

Similarly, limestone / coronus material for filling of building pads and capping of
working areas will have to be sourced from existing road works borrow pits in the NE of
the island (approx 20km one-way haul) or proposed borrow pits along the Wurtol pipeline
route (approx 10km one-way haul). Readily accessible coronus reserves are limited in
quantity, and are also in heavy demand for other mine maintenance and community projects.

Given the constraints on material availability and potential issues associated with

Page 8 of 14

 

heavy truck traffic along local roads, a design that minimises the required extent of
material import will be preferable.

14.2 DISPOSAL OF EXCAVATED SPOIL

Flat land on Lihir Island is at a very high premium and there are few sites for ready
disposal of excavated spoil — especially poor quality material. As a consequence the
earthworks design should attempt to minimise the extent of excavation wherever practical.

15 ECONOMIC COMPARISONS

Where economic comparisons are required to evaluate different options, they shall comprise
assessment of net present cost (NPC) based on the following:

	 	•	 	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	 	Description
	2.3

	 	Project Summary
	3.3.1

	 	Project Constructability Plan
	3.3.2

	 	Crushing, Conveying and Stockpile Summary Report
	3.3.3

	 	Grinding Summary Report
	3.3.4

	 	Oxygen Plant Summary Report
	3.3.5

	 	Pressure Oxidation Summary Report
	3.3.6

	 	Thickening / Mill Water Summary Report
	3.3.7

	 	NCA Summary Report
	3.3.8

	 	Tailings Summary Report
	3.3.9

	 	Electrical Summary Report
	3.3.10

	 	Raw Water Summary Report
	3.3.11

	 	Treated Water Summary Report
	3.3.12

	 	Seawater Summary Report
	3.3.13

	 	Piping Summary Report
	3.3.14

	 	Feasibility Study Drawings

Page 10 of 14

 

Appendix B Project Facility Numbers

	 	 	 	 	 
	Facility	 	Facility Name	 	Facility Description
	1314

	 	Primary Crushing
	 	New crushing plant for the MOPU project
including crusher discharge conveyor
	 
	 	 	 	 
	1315

	 	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
project
	 
	 	 	 	 
	1325

	 	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 Description
	1615

	 	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	 	Title
	A001

	 	Project Instructions
	A002

	 	Specification for AutoCAD Drawings
	A003

	 	Specification for Vendor Documentation
	A004

	 	Register Project Information
	A005

	 	Specification for Piping Information
	A006

	 	Standard Format for Piping Information
	A007

	 	Specification for Loop Numbering
	A008

	 	Standard Transmittal Form

Technical Specifications — Design

	 	 	 
	Spec.	 	 
	Number	 	Title
	E100

	 	General Electrical Specification
	E101

	 	DCS and Control System Specification
	D002

	 	Civil & Structural Design Criteria
	D003

	 	Mechanical Design Criteria
	D004

	 	Piping Design Criteria

Technical Specifications — Construction

General

	 	 	 
	Spec.	 	 
	Number	 	Title
	G001

	 	Specification for Packaging and Shipping

Electrical

	 	 	 
	Spec.	 	 
	Number	 	Title
	E001

	 	Specification for Low Voltage Motor Control Centres
	E002

	 	Specification for HV Switchgear
	E003

	 	Specification for Transportable Switchrooms
	E004

	 	Specification for Transformers
	E005

	 	Specification for Motors
	E006

	 	Instruments and Field Devices
	E007

	 	LV Cable
	E008

	 	HV Cable
	E009

	 	Variable Speed Drives and Soft Starters

Page 13 of 14

 

Civil and Structural

	 	 	 
	Spec.	 	 
	Number	 	Title
	S001

	 	Specification for Bulk Earthworks
	S002

	 	Specification for Piling
	S003

	 	Specification for General Civil Works
	S004

	 	Specification for Concrete
	S005

	 	Specification for Concrete Masonry
	S006

	 	Specification for Structural Steelwork
	S007

	 	Specification for Cladding

Mechanical and Piping

	 	 	 
	Spec.	 	 
	Number	 	Title
	M001

	 	Specification for Agitators
	M002

	 	Specification for Cranes, Monorails and Hoists
	M003

	 	Specification for Compressed Air Services
	M004

	 	Specification for Conveyor Equipment
	M005

	 	Specification for Fans and Blowers
	M006

	 	Specification for Instrumentation
	M007

	 	Specification for Piping
	M008

	 	Specification for Protective Coatings
	M009

	 	Specification for Pumps
	M010

	 	Specification for Signage
	M011

	 	Specification for Specialty Piping Items
	M012

	 	Specification for Tanks
	M013

	 	Specification for Valving
	M100

	 	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 Autoclave
	Make:
	 	 
	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)

Currency of Manufacturer’s Quotation

Location of Seller’s Premises

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Table 1.1 Cost Breakdown	 	UOM	 	 	QTY	 	 	Unit Cost	 	 	Extended	 
	[List item]
	 	EA	 	 	 	 	 	 	 	 	 	$	0.00	 
	[List item]
	 	EA	 	 	 	 	 	 	 	 	 	$	0.00	 
	Equipment Options
	 	EA	 	 	 	 	 	 	 	 	 	$	0.00	 
	Special Tools
	 	EA	 	 	 	 	 	 	 	 	 	$	0.00	 
	Extended Warranty Costs (if applicable)
	 	EA	 	 	 	 	 	 	 	 	 	$	0.00	 
	Discount (if any)
	 	EA	 	 	 	 	 	 	 	 	 	$	0.00	 
	Export Packing
	 	EA	 	 	 	 	 	 	 	 	 	$	0.00	 
	Loading to Transport
	 	EA	 	 	 	 	 	 	 	 	 	$	0.00	 
	Forward Cover Foreign Currency Risk (if any)
	 	EA	 	 	 	 	 	 	 	 	 	$	0.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Subtotal FCA (Incoterms 2000) Point of Manufacture	 	$	0.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Freight/Logistics Cost Breakdown	 	UOM	 	 	QTY	 	 	Unit Cost	 	 	Extended	 
	Freight to nearest Seaport (Nominate)
	 	EA	 	 	 	 	 	 	 	 	 	$	0.00	 
	Customs/Port Terminal Charges (if any)
	 	EA	 	 	 	 	 	 	 	 	 	$	0.00	 
	Forward Cover Foreign Currency Risk (if any)
	 	EA	 	 	 	 	 	 	 	 	 	$	0.00	 
	Subtotal FOB (Incoterms 2000) Seaport                                                             
	 	$	0.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL 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 (Include details)

Cancellation Charges (Include details such as schedule and values)

Point(s) of Manufacture

Specify City and State (if applicable) for each point(s) of supply

Shipment Location

State location where cargo will be available for shipment

Sub-Suppliers

Provide list of all major/critical components from sub-supplier. State sub-supplier name and

location of component manufacture.

Progress Reports and Schedule

(Detailed design, procurement, manufacturing, assembly, testing, delivery schedule and progress report)

					
	Number of weeks from date of Purchase Order

	 	# of weeks

	Frequency of updates

	 	# of weeks

	 
	 	 	 	 
	Liquidated Damages — Manufacturer’s Proposal, Subject to Assessment by LGL (Include details)
	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

	 
	 	 	 	 
	Extended Warranty
	 	 	 	 
	List all extended warranties for the Equipment and components
	 	 	 	 
	 
	 	 	 	 
	Extended Warranty Cost (if applicable)

	 	$	 	0.00
	 
	 	 	 	 
	Other Details (Add information if required)
	 	 	 	 
	 
	 	 	 	 
	Does the Seller accept the Warranty Terms and Conditions?

	 	Yes o      

	 

	 	 	 	No 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

Number of days from date of Purchase Order

Final Certified Engineering Drawings

Number of days from date of approved preliminary drawings

Final Certified (Where preliminary drawings are not required for approval)

Number of days from date of Purchase Order

Operators Manuals (Installation, Operation, Maintenance and Training)

Operator Manuals in addition to requirements outlined in Section I

					
	Additional sets (Indicate cost if applicable)
	 	$	0.00	 
	Electronic sets — CD-R (Indicate cost if applicable)
	 	$	0.00	 
	 
	 	 	 	 
	Parts Manuals (Including Bearings, Seals, and Filter Conversions)
	 	 	 	 
	Parts Manuals in addition to requirements outlined in Section I
	 	 	 	 
	Additional sets (Indicate cost if applicable)
	 	$	0.00	 
	Electronic sets — CD-R (Indicate cost if applicable)
	 	$	0.00	 
	 
	 	 	 	 
	Quality 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	 	Amount	 
	 
	Total
	 	$	0.00	 

Contract Local/Overseas Content

	 	 	 	 	 
	Description	 	Amount	 
	 
	Total Contract Value
	 	$	0.00	 

					
	 	 	 	 	 
	Section IV — Form of Tender
	 	Commercial Details
	 	Page 3
	 	 	 	 	 

 

 

LGL EQUIPMENT SUPPLY TENDER

COMMERCIAL DETAILS

Additional Items/Details (If required)

					
	 	 	 	 	 
	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
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 

Tenderer to detail the additional or reduced cost associated with each departure itemised. Tenderer
to add additional line items and clarification below if required.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Table 1.2 Technical Departures	 	UOM	 	 	QTY	 	 	Unit Cost	 	 	Extended	 
	[List item]
	 	EA	 	 	 	 	 	 	 	 	 	$	0.00	 
	[List item]
	 	EA	 	 	 	 	 	 	 	 	 	$	0.00	 
	 
	 	EA	 	 	 	 	 	 	 	 	 	$	0.00	 
	 
	 	EA	 	 	 	 	 	 	 	 	 	$	0.00	 
	 
	 	EA	 	 	 	 	 	 	 	 	 	$	0.00	 
	Forward Cover Foreign Currency Risk (if any)
	 	EA	 	 	 	 	 	 	 	 	 	$	0.00	 
	 
	Subtotal FOB (Incoterms 2000) Seaport
                                      
   +/-
	 	$	0.00	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Table 1.3 Commercial Departures	 	UOM	 	 	QTY	 	 	Unit Cost	 	 	Extended	 
	[List Item]
	 	EA	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	EA	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	EA	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	EA	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	EA	 	 	 	 	 	 	 	 	 	 	 	 
	Forward Cover Foreign Currency Risk (if any)
	 	EA	 	 	 	 	 	 	 	 	 	$	0.00	 
	 
	Subtotal FOB (Incoterms 2000) Seaport
                                     
    +/-
	 	$	0.00	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Table 1.4 Optional Equipment and/or Materials	 	UOM	 	 	QTY	 	 	Unit Cost	 	 	Extended	 
	Tenderer to indicate if the following design features are considered Standard or Non-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]
	 	EA	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	EA	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	EA	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	EA	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	EA	 	 	 	 	 	 	 	 	 	 	 	 
	Forward Cover Foreign Currency Risk (if any)
	 	EA	 	 	 	 	 	 	 	 	 	$	0.00	 
	 
	Subtotal FOB (Incoterms 2000) Seaport
                                      
   +/-
	 	$	0.00	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	TOTAL 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 Ex	 	 	 	 
	Item	 	Tag	 	 	Manufacture	 	 	Manufacture	 	 	Inspection or Testing	 	 	Works	 	 	Delivery Site	 
	 	 	 	 	 	 	 	 	 	 	(Weeks After Order)	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Table 2.2 Contractual Delivery Schedule

State delivery in number of weeks from date of Purchase Order for the following:

	 	 	 	 	 
	Manufacture and Supply
	 	 	 	 
	 

	 	 

	 	 
	Delivery Completion Date
	 	 	 	 
	 

	 	 

	 	 

Table 2.3 Witnessed and Verified Performance Tests

List the Tests that need to be witnessed and verified and detail if the cost of these tests is included in the Tendered Price

	 	 	 	 	 	 	 
	Component and Test	 	Cost Included?	 	 	 	Cost
	 
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	Total 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 ending
	Task	 	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	 	11/28
	Manufacture and Supply of xxx

	 	30-Jun-08
	 	28-Nov-08
	 	Planned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Submit detailed general arrangement drawings

	 	 	 	 	 	Planned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mine Approval of general arrangement drawings

	 	 	 	 	 	Planned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Component 1
	 	 	 	 	 	Planned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Procurement of material

	 	 	 	 	 	Planned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Manufacture of component

	 	 	 	 	 	Planned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Surface treatment of component

	 	 	 	 	 	Planned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Inspection of component

	 	 	 	 	 	Planned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Component 2
	 	 	 	 	 	Planned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Procurement of material

	 	 	 	 	 	Planned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Manufacture of component

	 	 	 	 	 	Planned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Surface treatment of component

	 	 	 	 	 	Planned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Inspection of component

	 	 	 	 	 	Planned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Component 3
	 	 	 	 	 	Planned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Purchase from sub-vendor

	 	 	 	 	 	Planned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Delivery ex sub-vendor

	 	 	 	 	 	Planned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Assembly of equipment
	 	 	 	 	 	Planned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Testing
	 	 	 	 	 	Planned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Final Inspection

	 	 	 	 	 	Planned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dispatch ex works

	 	 	 	 	 	Planned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Deliver in Accordance with relevant

	 	 	 	 	 	Planned	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Incoterms 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
	 	 	 	 	 	 	 	 	 	 	0	 	 	 	 	 
	 	 	 	 	 	 	 
	Total Cubic Measure
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	 	 	 	 	 	 	 
	Total 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
	 	 	 	 	 	 	 	 	 	 	0	 	 	 	 	 
	 	 	 	 	 	 	 
	Total Cubic Measure
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	 	 	 	 	 	 	 
	Total Number of Pieces
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 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 Parts
	 	 	 	 
	Recommended 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
	 	$	0.00	 
	Freight (to nearest Port of Exit)
	 	$	0.00	 
	Ocean Freight to Port of Entry
	 	$	0.00	 
	Customs/Port Terminal Charges (if any)
	 	$	0.00	 
	Inland Freight to Project Site
	 	$	0.00	 
	TOTAL COST
	 	$	0.00	 
	 
	 	 	 	 
	Parts 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	 
	 
	 	$	0.00	 
	 
	 	 	 	 
	Recommended 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 If	 
	 	 	 	 	 	 	Recommended	 	 	Purchased With	 	 	Supplied At	 
	Item	 	Description	 	 	Quantity	 	 	Main Order	 	 	Later Date	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 

Table 3.2 Capital Spares

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Unit Price If	 	 	Unit Price If	 
	 	 	 	 	 	 	Recommended	 	 	Purchased With	 	 	Supplied At	 
	Item	 	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 Guarantees
	 	 	 	 
	Year 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)
	 	 	0.00	 
	 
	 	 	 	 
	Daily Rates for technical on-Site personnel — detail skills/trades
	 	 	0.00	 
	 
	 	 	 	 
	Equipment (List required equipment)
	 	 	0.00	 
	 
	 	 	 	 
	Location of Representation
	 	 	 	 
	Number of Representatives
	 	 	 	 
	Estimated length of stay
	 	 	 	 
	Number/Frequency of visits
	 	 	 	 
	Additional 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 12

 

 

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 will be provided
	 	 	 	 
	 
	 	 	 	 
	Identify 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 Buyer
	 	 	 	 
	 
	 	 	 	 
	Other Details (Add information if required)
	 	 	 	 

					
	 	 	 	 	 
	Section IV — Form of Tender
	 	Technical On-Site Personnel and Support
	 	Page 13EX-4.AP

MPOU-Mills Instrument of Agreement

Instrument of Agreement – SAG & Ball Mills

	 	 	 
	Supplier:

	 	Purchaser:
	 
	 	 
	 

	 	Lihir Gold Limited (incorporated in PNG)
	ATTN: FLSmidth Minerals Pty Limited
	 	 
	ABN: 85 000 221 590

	 	ARBN 069 803 998
	TEL No: 03 8336 1233
	 	 
	FAX No: 03 8336 1244
	 	 
	 
	 	 
	Delivery Place:

	 	Invoice to:
	 
	 	 
	Refer Section 2, Appendix C of these contract

	 	Lihir Gold Limited
	Documents

	 	P.O Box 789
	 

	 	Port Moresby
	 

	 	National Capital District 121
	 

	 	Papua New Guinea
	 
	 	 
	Delivery Date:

	 	Contract Price:
	 
	 	 
	Refer Section 2, Appendix C. Final Delivery Date

	 	AUD excluding GST, as detailed in
	is  Weeks from 29th February 2008

	 	Appendix A of these Contract Documents
	 
	 	 
	Payment Terms:
	 	 
	 
	 	 
	21 Days after receipt of approved invoice
	 	 

This Instrument of Agreement is for the supply by the Supplier to Purchaser of one (1) SAG Mill and
one (1) Ball Mill for the Contract Price and strictly in accordance with the requirements of this
Instrument of Agreement.

Definitions

Purchaser shall mean Lihir Gold Limited.

Supplier shall mean the company to whom the Instrument of Agreement is addressed.

Equipment shall mean the equipment, materials, drawings, documentation and spare parts, to be
supplied by the Supplier under this Instrument of Agreement.

Page 1 of 4 

 

	1.0	 	Contract Price
	 
	 	 	The price stated herein is made up of a fixed fee component, and a variable component as
detailed in Appendix A of these documents. The contract price is not subject to escalation
and is exclusive of Goods and Services Tax and Value Added Tax (as applicable).
	 
	2.0	 	Delivery Address and Instructions
	 
	 	 	The address for delivery shall be as stated on the face of the Instrument of Agreement
(“delivery place”). Lihir Gold Limited. Lihir Island.
	 
	 	 	Prior to delivery, the Supplier must notify the Purchaser of their readiness for inspection
at least fourteen (14) days prior to the event.
	 
	3.0	 	Payment Terms
	 
	 	 	Supplier shall issue invoices in accordance with the Payments Schedule General Conditions
AS/NZS 4911-2003 and Special Condition SC24. All invoices must clearly reference the
Instrument of Agreement number.
	 
	4.0	 	Correspondence
	 
	 	 	All correspondence, excluding invoices associated with this Instrument of Agreement, must be
addressed to the Purchasing Manager, or as nominated by the purchaser from time to time.
	 
	 	 	The email address for electronic issue of correspondence is:
mopu@lglgold.com; and copied to
the purchasing managers email address. Email correspondence shall be as detailed below:
	 
	 	 	The purchaser will send emails to the supplier with the subject line starting with:
MOPU-1001-L-aaa xxxxxxx.
	 
	 	 	Where MOPU is the project name, 1001 is the mills package number, L means from the purchaser,
aaa is a consecutive number (starting at 001), and xxxxxxx is the normal subject text.
	 
	 	 	For emails from the supplier to the Purchaser, the subject line of the email would typically
be, for the first email, MOPU-1001-C-001 xxxxxxx. Where the C means from supplier, 001 is
first email, and xxxxxx is the subject matter for the email.
	 
	 	 	For each email the supplier sends to the purchaser, the supplier should check the last email
sent TO the purchaser, and use the next consecutive number. That is, the purchaser’s numbering
may not line up with the suppliers.
	 
	 	 	NOTE: ALL CORRESPONDENCE MUST REFERENCE APPLICABLE INSTRUMENT OF AGREEMENT NUMBER.
	 
	5.0	 	Provision of Facilities to Company at Supplier’s Premises
	 
	 	 	Supplier shall afford all reasonable access and facilities to the Purchaser and/or its
representative(s) for the purpose of expediting, inspection and testing of the Equipment and
review of documents required under the Instrument of Agreement.
	 
	 	 	Purchaser reserves the right to nominate representative(s) to be situated at Supplier’s works
to co-ordinate and manage Purchaser’s interests.
	 
	 	 	For witness and/or inspections, Supplier must notify the Purchaser of its readiness for
inspection at least five (5) days prior to the event.

Page 2 of 4 

 

	6.0	 	Publicity And Advertising
	 
	 	 	No advertising, publicity material or other literature in relation to the Equipment or
Instrument of Agreement or Purchaser shall be published by Supplier without prior written
approval from Purchaser. Supplier shall not place or permit to be placed its name, logos or
any other marks including advertising material, on the Equipment other than marking permitted
by Purchaser.
	 
	7.0	 	Reporting
	 
	 	 	Monthly and when requested by the Purchaser, the Supplier shall submit to the Purchaser a
report on the progress of the work. The report will provide sufficient information to allow
the Purchaser to monitor progress of the work and retain confidence that the agreed issue
dates of documentation, delivery of all the equipment/materials and fabrication progress is
being maintained.
	 
	 	 	The report shall include the following subjects as a minimum:

	 	•	 	Executive Overview
	 
	 	•	 	Engineering Progress
	 
	 	•	 	Sub-contract status
	 
	 	•	 	Critical Item status
	 
	 	•	 	Any items of concern
	 
	 	•	 	Costing summary update
	 
	 	•	 	QA / QC issues
	 
	 	•	 	Updated manufacturing schedule

	 	 	The Purchaser may from time to time request a progress review meeting with the Supplier. The
location of these meetings may vary between the Suppliers or Purchaser’s offices. The
Purchaser shall not be liable for any costs incurred by the Supplier associated with these
meetings.
	 
	8.0	 	Attachments

	 	1.	 	This Section 1 – Instrument of Agreement;
	 
	 	2.	 	Section 2 – Appendices;
	 
	 	3.	 	Section 3 – Special Conditions of Contract;
	 
	 	4.	 	Section 4 – General Conditions of contract for the supply of equipment without
installation (AS/NZS 4911:2003) , including Part A to the General Conditions.
	 
	 	5.	 	Section 5 – Scope Specification;
	 
	 	6.	 	Section 6 – Technical references.

Page 3 of 4 

 

	 	 	 	 	 	 	 
	Signed for and on behalf of Lihir Gold Limited by:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	/s/ Garry Moore	 	Dated: 8th May 2008
	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Authorised Representative	 	 	 	 
	 
	 	 	 	 	 	 
	Name

	 	GARRY MOORE	 	 	 	 
	 

	 	 

	 	 	 	 
	 
	 	 	 	 	 	 
	Title

	 	MANAGER — CONSTRUCTION 	 	 	 	 
	 

	 	 

	 	 	 	 
	 
	 	 	 	 	 	 
	Signed for and on behalf of Supplier:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	/s/ John Hadaway	 	Dated: 8/5/08
	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Authorised Representative	 	 	 	 
	 
	 	 	 	 	 	 
	Name

	 	JOHN HADAWAY	 	 	 	 
	 

	 	 

	 	 	 	 
	 
	 	 	 	 	 	 
	Title

	 	Regional Sales Director	 	 	 	 
	 

	 	 

Communication
	 	 	 	 

Page 4 of 4 

 

Appendix A

Payment & Milestones

Definitions of Parts:

Part 1: Fixed project execution fee. This includes engineering, project management, QA/QC,
inspection and expediting, design review meetings, FEA’s, etc.

Part 2: Fixed fee representing the supplier’s profit margin, and Bradken royalty fee.

Part 3: Variable fee for the procurement of all hardware and equipment at cost.

Part 1 and Part 2 (Fixed Price) Component Payments

Parts 1 & 2 are made up of the following costs:

	 	 	 	 	 
	Fee Description	 	Amount (AUD)	 
	Services (Part 1)
	 	 	 	 
	Bradken Royalty (Part 2)
	 	 	 	 
	Contribution Fee (Part 2)
	 	 	 	 
	 
	 	 	 	 
	Part 1 & 2 Total
	 	 	 	 

Parts 1 and 2 to be treated as one amount equal to the sum of the two parts and be paid on the
following milestones:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Percentage of Part	 	Actual Amount	 
	 	 	Milestone Description	 	1 & 2 pricing	 	(AUD)	 
	1	 	Upon Execution of Contract
	 	 	 	 	 	 
	2	 	Delivery of Certified GA and Foundation Arrangement
Drawings
	 	 	 	 	 	 
	3	 	Despatch of shell plate and receipt of material certificates
	 	 	 	 	 	 
	4	 	Receipt of Major castings
(Rough Condition)
	 	 	 	 	 	 
	4(i)	 	Ball Mill Heads
	 	 	 	 	 	 
	4(ii)	 	Ball Mill Trunnions
	 	 	 	 	 	 
	4(iii)	 	SAG Mill Heads
	 	 	 	 	 	 
	4(iv)	 	SAG Mill Trunnions
	 	 	 	 	 	 
	5	 	Despatch of gear plates and receipt of certificates
	 	 	 	 	 	 
	6	 	Delivery of all Equipment and Documentation to specified
points of delivery
	 	 	 	 	 	 
		 	
	 		 	 	 	 
	 	 	Total Amount Due for Parts 1 & 2 (Excluding Deposit paid at LOI)
	 	 	 	 	 	 
		 	
	 		 	 	 	 

 

 

Part
3 (Variable) Component Payments

Part 3 is for the procurement of all hardware and equipment at cost. The estimated value of this
variable component, which shall be fixed upon order to Sub supplier, at time of contract, is AUD
 Refer to Appendix A, Attachment one for breakdown of this component.

The Supplier shall be entitled to make a milestone payment claims on the Purchaser each time the
Supplier presents an acknowledged purchase order from one or more of its Sub Suppliers, and
additional milestone payment claims can then be made as detailed within that purchase order.

The documentation required as proof for milestone achievement for payments to be made shall be in
accordance with the terms of the purchase order furnished to the sub supplier by the Supplier.

 

 

Appendix A, Attachment 1 — Cost Tracking and Forecast

	 	 	 
	CUSTOMER:
	 	Lihir
	PROJECT:
	 	Lihir 3
	LOCATION:
	 	PNG
	PROPOSAL NO:
	 	280254
	 
	 	 
	MILL TYPE:
	 	SAG mill
	MILL SIZE:
	 	28’ x 14.5’
	QUANTITY:
	 	1

Page 1 of 7 

 

Appendix A, Attachment 1

	 	 	 
	CUSTOMER:
	 	Lihir
	PROJECT:
	 	Lihir 3
	LOCATION:
	 	PNG
	PROPOSAL NO:
	 	280254
	 
	 	 
	MILL TYPE:
	 	SAG mill
	MILL SIZE:
	 	28’ x 14.5’
	QUANTITY:
	 	1

Page 2 of 7 

 

Appendix B

Project Schedule

 

 

Appendix C

Places of Delivery, Delivery Terms and Dates for Delivery

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Date for Purchase	 	 
	 	 	 	 	 	 	Order to Sub	 	 
	 	 	 	 	 	 	supplier (weeks	 	Date for Delivery
	Item of	 	 	 	INCOterms	 	after reference	 	(weeks after reference
	Equipment	 	Delivery Place	 	2000	 	date)	 	date)
	Shells

	 	Durban
	 	FAS
	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	SAG Heads and
Trunnions

	 	Newcastle
NSW
	 	Ex Works
	 	 	 	 
	Gears and Pinions

	 	Perth WA
	 	Ex Works
	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Ball Mill
Trunnions

	 	European
Export Port
	 	FAS
	 	 	 	 
	Bearings

	 	TBA
	 	FAS or Ex Works
	 	 	 	 
	Lube Systems

	 	NSW
	 	Ex Works
	 	 	 	 
	Base Plates

	 	TBA
	 	FAS or Ex Works
	 	 	 	 
	Load Cells

	 	Canada
	 	FAS
	 	 	 	 
	Gear Guards

	 	TBA
	 	FAS or Ex Works
	 	 	 	 
	Sole Plates

	 	TBA
	 	FAS or Ex Works
	 	 	 	 
	Structural
Fasteners

	 	Perth
	 	Ex Works
	 	 	 	 
	Trommels

	 	TBA
	 	FAS or Ex Works
	 	 	 	 
	Feed Chutes

	 	TBA
	 	FAS or Ex Works
	 	 	 	 
	Trunnion Liners

	 	TBA
	 	FAS or Ex Works
	 	 	 	 

 

			
	Notes:
	 
	1.	 	Items marked TBA are yet to be confirmed. If manufactured off shore the terms will
be FAS, if Australia the terms will be Ex Works.
	 
	2.	 	Risk passes in accordance with INCOterms 2000 definition.

 

 

Appendix D

Standard Specifications

 

 

			
	
	 	After Market Technology Group

Australia
	 	 	 

STANDARD SPECIFICATION

Machinery Surface Preparation & Finish

FFE Minerals Reference STD – SP01

	 	 	 	 	 	 	 	 	 	 	 
	Rev	 	Date	 	Revision Description	 	By	 	Checked	 	Approved
	 

	 	 
	 	 
	 	 
	 	 
	 	 

FFE MINERALS AUSTRALIA PTY LTD

ACN 000 221 590

ABN 85 000 221 590

24-28 Marshall Road Airport West

MELBOURNE VIC Australia 3042

Tel: +613 8336 1233 Fax: +613 8336 1244

E-MAIL: reception@ffeminerals.com.au

 

 

			
	Standard Specification STD – SP01
	 	After Market Technology Group
	 
	 	Australia

References

	 	 	 	 	 
	AS

	 	1627.0 – 1997
	 	Metal Finishing – Preparation and Pretreatment of Surfaces.
	 
	 	 	 	 
	AS/NZS 3750.0
– 1995	 	Paints for Steel Structures.
	 
	 	 	 	 
	AS

	 	2700.S – 1996
	 	B12 Royal Blue.

 Page 2 of 8 

 

			
	Standard Specification STD – SP01
	 	After Market Technology Group
	 
	 	Australia

	 	 	 
	1.0

	 	General.
	 
	 	 
	1.1

	 	The surface preparation and coating procedures outlined in this standard specification are intended for the
surface protection of machinery fabricated and assembled by the Contractor in their workshops or the
workshops of their sub-contractors.
	 
	 	 
	1.2

	 	All damaged areas shall be made good before packing and despatch.
	 
	 	 
	1.3

	 	The Contractor shall furnish all equipment, materials including coatings, tools and services unless specifically
excluded in the contract.
	 
	 	 
	1.4

	 	The Contractor shall use only coatings and/or coating systems approved by the Principal.

 Page 3 of 8 

 

			
	Standard Specification STD – SP01
	 	After Market Technology Group
	 
	 	Australia

	2.0	 	Limits of Work.

	 	2.1	 	The Contractor shall carry out all work to achieve the degree of surface preparation specified.
	 
	 	2.2	 	Weld margins of approximately 75 mm width shall be left uncoated at the edge of any section to be
site welded.
	 
	 	2.3	 	The mating surfaces of all friction type joints shall be free of all topcoats.

 Page 4 of 8 

 

			
	Standard Specification STD – SP01
	 	After Market Technology Group
	 
	 	Australia

	3.0	 	Handling of Painted Items.

	 	3.1	 	To reduce the damage to the coating, at least five days drying time shall be allowed for hardening
before the machinery is handled.
	 
	 	3.2	 	The Contractor shall obtain the Principals approval for any handling prior to the minimum period
specified in 3.1 above
	 
	 	3.3	 	Special care shall be taken during loading and transporting of the coated machinery to ensure damage
to the coating is avoided.
	 
	 	3.4	 	If slings are used for lifting, these shall be cushioned to prevent damage.
	 
	 	3.5	 	The Contractor shall repair all areas of coating damaged during packing and loading prior to
despatch.

 Page 5 of 8 

 

			
	 	 	 
	Standard Specification STD – SP01
	 	After Market Technology Group

Australia

4.0 Preparation for Coating.

	 	4.1	 	Surface preparation and/or painting shall not be carried out in wet or excessively hot,
humid or windy conditions or in the presence of water spray or harmful industrial fumes,
dusts or sprays.
	 
	 	4.2	 	The coating shall not be applied when the steel surface temperature is below the dew
point, resulting in condensation of moisture.
	 
	 	4.3	 	Cleaning of surfaces of contaminants i.e. oil and grease if necessary and/or if
instructed by the Engineer prior to surface preparation shall be in accordance with AS
1627.1 – 1989 Cleaning using liquid solvents and alkaline solutions.
	 
	 	4.4	 	To ensure the durability of the coating system is not impaired, the Contractor shall
thoroughly familiarise himself with and carry out all aspects of the manufacture’s
requirements and directions for the mixing and application of the approved coatings.
	 
	 	4.5	 	In cases where abrasive blast cleaning and painting operations are carried out in the
same area, the blasting work shall only be carried out when the paint film has dried to the
extent where the abrasive does not adhere to or damage the coated surface.

Page 6 of 8

 

 

			
	 	 	 
	Standard Specification STD – SP01
	 	After Market Technology Group

Australia

5.0 Surface Preparation.

	 	5.1	 	Preliminary cleaning shall be carried out in accordance with AS 1627.1 – 1989 Cleaning
using liquid solvents and alkaline solutions.
	 
	 	5.2	 	Steel surfaces of machinery shall be abrasive blast cleaned in accordance with the
whole procedure laid down in AS 1627.4 – 1989 Abrasive blast cleaning Section 3.
	 
	 	5.3	 	The standard of surface preparation shall be to AS 1627.9 – 1989 Pictorial surface
preparation standards for painting steel surfaces, Class 2-1/2 as described in Clause 1.1.
Unless otherwise noted in this specification.
	 
	 	5.4	 	The profile height shall be 40 to 70 um (micrometers) measured in accordance with AS
1627.4 – 1989 Abrasive blast cleaning.
	 
	 	5.5	 	The surfaces’ shall be cleaned after blasting and damp areas shall be thoroughly dried
with clean rags or dry air.
	 
	 	5.6	 	Blast cleaned surfaces shall not be left uncoated for a period, which will allow
discolouration of the steel to occur. Should it not be possible to coat the surfaces within
this period then the surface shall be reblasted and cleaned as described in 5.2 above.
	 
	 	5.7	 	The Contractor shall remove all weld spatter, weld slag and any other contaminants
prior to the application of the coating system.

Page 7 of 8

 

 

			
	 	 	 
	Standard Specification STD – SP01
	 	After Market Technology Group

Australia

6.0 Coating system.

	 	6.1	 	Unless otherwise specified on drawings or directed by the Engineer all machinery shall
receive the coating system described below.
	 
	 	6.2	 	Machinery Steel Surfaces Atmospheric.

	 	6.2.1	 	Primer Coating.
	 
	 	 	 	Primer shall be a two-component epoxy primer for the protection of steel
surfaces to AS/NZS 3750.13 – 1997 Epoxy Zinc Phosphate Primer.
	 
	 	 	 	Prepared according to the manufacture’s instructions as contained in the
requisite data sheet. Applied by spray at 150 um wet-film-thickness (75 um
dft) onto the clean, dry abrasive blast cleaned surface. Allow drying
overnight before subsequent top coating.
	 
	 	6.2.2	 	Top Coating.
	 
	 	 	 	Top coating shall be a two-component full gloss epoxy paint, intended for
the protection of iron and steel structures against exterior corrosion in
sever industrial and marine environments to AS/NZS 3750.10 – 1994 Full
Gloss Epoxy .
	 
	 	 	 	Prepared according to the manufacture’s instructions as contained in the
requisite data sheet. Applied by airless spray at 250 um
wet-film-thickness (175 um dft) onto the clean, dry previously prime
panted surface. Allow drying overnight before subsequent handling.
	 
	 	6.2.2	 	Damaged Coatings.
	 
	 	 	 	Any damaged paint on the machinery caused by handling or other means shall
be made good, by the Contractor, using the surface preparation procedure
as detailed in section 5.0 and the coating system procedure as detailed
above.
	 
	 	6.2.3	 	Appearance of Finished Coating.
	 
	 	 	 	When fully dry, the film applied in each coat shall be free of sagging,
blisters, craters, pinholes and other defects.
	 
	 	 	 	All overspray, paint splatter, drips, spillage, mud, dirt or other
deposits shall be cleaned off the finished surface or otherwise made good
to the Engineer instructions.
	 
	 	 	 	Touch up procedures shall be at least as good as the original paint work
and the “touch up” colour shall be visually compatible with the original
colour.
	 
	 	6.2.4	 	Finish Colour.
	 
	 	 	 	The Principals standard finish colour is AS 2700.S – 1996 B12 Royal Blue
for all machinery unless otherwise directed by the Engineer.

Page 8 of 8

 

 

Appendix E

Project Quality Plan

 

 

					
	
	 	PROJECT QUALITY PLAN

LIHIR GOLD-SAG & BALL MILLS- 280254
	 	 

FLSmidth Minerals Pty Ltd

PRELIMINARY PROJECT QUALITY PLAN

FLSM DOCUMENT NO: 280254-PQP-001 Rev 0

	 	 	 
	PURCHASER:

	 	LIHIR GOLD LIMITED
	 
	DRAFT INSTRUMENT OF AGREEMENT:

	 	MOPU-1001-L-011
	 
	PROJECT NAME:

	 	LIHIR MOPU PROJECT SAG & BALL MILLS.

	 
	FLSM PROJECT: 

	 	280254
	 
	DESCRIPTION:

	 	Design, supply, fabricate/manufacture, inspect and test,
protective treat, deliver, and supervise the installation and
commissioning of SAG & BALL MILLS

	 	 	 	 	 	 	 	 	 
	PREPARED BY Keith Hickey

	 	TITLE
	 	QA/QC
	 	DATE: 22/4/08
	 	 
	 
	 	 	 	 	 	 	 	 
	APPROVED BY Adrian Brown

	 	TITLE
	 	Project Manager
	 	DATE 23/4/08	 	 

CUSTODIAN OF QUALITY PLAN – PROJECT MANAGER

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 		 	APPROVAL
	QPRev	 	Date	 	QP Issue	 	Con/Uncon	 	APPROVAL	 	Client (if applic)
	0	 	 	 	 	 	 	 	 	 	 

			
	 	 	 
	 
	 	1 of 15

 

 

					
	
	 	PROJECT QUALITY PLAN

LIHIR GOLD-SAG & BALL MILLS- 280254
	 	 

SECTION ONE

CONTENTS PAGE

	 	 	 	 	 	 	 
	SECTION
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	1

	 	Quality Plan Controls
	 	Rev. 0
	 	(4 pages)
	 
	 	 	 	 	 	 
	 	 	Cover Page (indicating issue status and controlled/uncontrolled copy).
	 

	 	Contents Page	 	 	 	 
	 

	 	Quality Plan Distribution Register Revision Status and Control	 	 	 	 
	 
	 	 	 	 	 	 
	2

	 	Introduction
	 	Rev. 0
	 	(2 pages)
	 
	 	 	 	 	 	 
	 

	 	Introduction and Scope of Work Project Quality Policy Statement 	 	 	 	 
	 
	 	 	 	 	 	 
	3

	 	Organisation
	 	Rev. 0
	 	(3 pages)
	 

	 	Project Organisation Structure	 	 	 	 
	 

	 	Project Organisation Chart (Attach A)	 	 	 	 
	 

	 	Roles of Key Personnel	 	 	 	 
	 
	 	 	 	 	 	 
	4

	 	Technical Specifications
	 	Rev. 0
	 	(1 page)
	 
	 	 	 	 	 	 
	5

	 	QMS AS/NZS ISO 9001:2000
	 	Rev. 0
	 	(2 pages)
	 
	 	 	 	 	 	 
	6

	 	Sub-Contracted Work/Sub-Suppliers
	 	Rev. 0
	 	(1 Page)
	 
	 	 	 	 	 	 
	 

	 	Attachment A-Proj Org Chart
	 	Rev. 0
	 	(1 page)
	 

	 	Attachment B-Proj ITP (PITP)
	 	Rev. 0
	 	(1 page)

			
	 	 	 
	 
	 	2 of 15

 

 

					
	
	 	PROJECT QUALITY PLAN

LIHIR GOLD-SAG & BALL MILLS- 280254
	 	 

SECTION ONE-REV 0

QUALITY PLAN DISTRIBUTION REGISTER

	 	 	 	 	 	 	 	 	 	 	 
	Quality	 	 	 	Distribution	 	Rev	 	Controlled or
	Plan No.	 	Position Issued	 	Date	 	Status	 	Uncontrolled Copy
	01

	 	Project Manager – FLSM
	 	 	 	 	0	 	 	(Master Copy)

Controlled
	 
	02

	 	Quality Assurance – FLSM
	 	 	 	 	0	 	 	Controlled
	 
	03

	 	Lihir Gold
	 	 	 	 	0	 	 	Controlled
	 
	04

	 	Project Manager – FLSM
	 	 	 	 	0	 	 	Controlled
	 
	05

	 	Project Co-Ordinator – FLSM
	 	 	 	 	0	 	 	Controlled

The original issue of the Project Quality Plan, amended sections and any full re-issues shall be
distributed to all holders of controlled copies. Controlled copies shall be identified on the
cover page. The issue of uncontrolled copies, which will not be updated, will also be identified
on the cover page. All distributions relating to the quality plan are accompanied by a document
transmittal upon which the recipient signs acknowledgment of distribution. The recipient is
responsible for the return of the acknowledgment copy to the custodian of the quality plan.

			
	 	 	 
	 
	 	3 of 15

 

 

					
	
	 	PROJECT QUALITY PLAN

LIHIR GOLD-SAG & BALL MILLS- 280254
	 	 

QUALITY PLAN REVISION STATUS AND CONTROL-REV 0

	 	 	 	 	 	 	 	 	 
	Date	 	Section	 	Page(s)	 	Details of Revision	 	Approved
	23/4/08

	 	All
	 	All
	 	Initial FLSM approval of preliminary
Project Quality Plan
	 	A BROWN

Each section of the quality plan is self-contained and shall be subject to review and amendment
to accurately reflect changes in the Contract quality requirements or the updating of
information. After changes have been made to the appropriate pages of the approved document, the
revision status of the relevant section(s) will be raised and revised section(s) will be issued
by the Quality Assurance Manager per the Quality Plan Distribution Register to controlled-copy
recipients. Changes to the contents page of Section 1 and to the text of other sections will be
identified by the use of italics font.

When amendments affect a number of sections the entire Project Quality Plan shall be reissued
with a new revision status.

			
	 	 	 
	 
	 	4 of 15

 

 

					
	
	 	PROJECT QUALITY PLAN

LIHIR GOLD-SAG & BALL MILLS- 280254
	 	 

SECTION TWO-REV 0

INTRODUCTION AND SCOPE OF WORK

Introduction:

FLSmidth Minerals Pty Ltd (FLSM) has received a Draft Instrument of Agreement from Lihir Gold
Limited for the supply of a SAG Mill and Ball Mill for the Lihir MOPU Project.

Scope of Work:

The scope of work for the mills will be as defined within Draft Instrument of Agreement
MOPU-1001-L-011.

Definitions:

For the purposes of this project quality plan the following definitions will apply:-

	 	 	 
	Purchaser:

	 	Lihir Gold Limited.
	 
	 	 
	Supplier:

	 	FLSmidth Minerals Pty Ltd (FLSM)
	 
	 	 
	Sub-Supplier:

	 	A supplier of goods or services to FLSM
	 
	 	 
	Organisation:

	 	Section 3 of this project quality plan indicates the
proposed FLSM organisation for the project and
summarises the roles of those responsible for the
effective functioning of project quality management.
	 
	 	 
	Quality Standard:

	 	Quality Standard for implementation of the Scope of
Work shall be the AS/NZS ISO 9001-2000.
	 
	 	 
	Inspection and Test Plans (ITPs):

	 	FLSM will ensure that product quality is achieved. The
responsibility will not be passed on to another party.
Nomination of FLSM witness and hold points on
ITPs, plus a quality surveillance program directly
involving FLSM representatives will ensure that we
control product quality.

	 
	 	 
	

	 	

ITPs will identify all required manufacturing codes,
inspection and test specifications and required
acceptance criteria and will include where nominated
Purchaser witness/hold activity points.
	 
	 	 
	Sub-Contracted Work:

	 	Items of FLSM’s supply will be sub-contracted as per
Section 6 of this Quality Plan.
	 
	 	 
	Buyer Right of Access:

	 	Purchaser and its Representatives shall have
entitlement to access the work at FLSM/sub-supplier
premises, at mutually agreed and pre-arranged
times.

			
	 	 	 
	 
	 	5 of 15

 

 

					
	
	 	PROJECT QUALITY PLAN

LIHIR GOLD-SAG & BALL MILLS- 280254
	 	 

PROJECT QUALITY ASSURANCE POLICY FOR FLSmidth Minerals Pty Ltd (Rev 0)

DRAFT INSTRUMENT OF AGREEMENT: MOPU-1001-L-011

SCOPE OF WORK:                Design, Supply, Deliver and Commission

QUALITY POLICY STATEMENT FOR LIHIR GOLD SAG AND BALL MILL

FLSmidth Minerals Pty Ltd has received the above-referenced DRAFT INSTRUMENT OF AGREEMENT to
supply both a SAG & Ball Mill for the Lihir MOPU Project.

The successful completion of this project will be dependent on many factors, some of which will
require appropriate and timely decisions to be made. “Successful completion of the Project” can
only mean the attainment of quality and financial objectives. Accordingly, all phases of the
project must be on time, to required quality and on budget.

To this end, the company will fully and conscientiously implement the policies and procedures of
the FLSM quality system, which is based on AS/NZS/ISO 9001-2000.In addition, the specific quality
requirements of the project will be satisfied by the development of, and implementation of,
relevant inspection and test plans and schedules.

FLSM has embraced the philosophy of quality assurance as a way of doing its business and will
provide the necessary human and material resources to achieve a successful and satisfying outcome
for this project for all parties.

FLSMIDTH MINERALS PTY LTD.

	 	 	 
	ADRIAN BROWN

	 	23rd April, 2008
	 

	 	 
	Project Manager

	 	DATE

			
	 	 	 
	 
	 	6 of 15

 

 

					
	
	 	PROJECT QUALITY PLAN

LIHIR GOLD-SAG & BALL MILLS- 280254
	 	 

SECTION THREE

PROJECT ORGANISATION STRUCTURE

Refer to Project Organisation Chart Attachment A-to be advised and Roles of Key Personnel.

			
	 	 	 
	 
	 	7 of 15

 

 

					
	
	 	PROJECT QUALITY PLAN

LIHIR GOLD-SAG & BALL MILLS- 280254
	 	 

ROLES OF KEY PERSONNEL-

General Manager

Responsible for overseeing all project management activities and for ensuring that the execution
of the work is timely, cost effective and meets project quality requirements.

Project Manager

Responsible for direct liaison with the client and for the coordination of all aspects of the
project following hand over from sales. The Project Manager shall coordinate project personnel,
plan and control the execution of the Contract in a cost-effective manner and shall ensure
compliance with the Contract technical specifications, delivery schedule and safety requirements.

The Project Manager shall select project personnel, allocate work and monitor progress and shall
have overall responsibility for ensuring that the following functions are carried out
effectively.

	- 	 	Project Reporting (Internal and with the client)
	 
	- 	 	Scheduling and Planning
	 
	- 	 	Cost Control
	 
	- 	 	Project Administration and Contractual Compliance
	 
	- 	 	Resources Allocation (Labour and Equipment)
	 
	- 	 	Project Quality Assurance/Quality Control
	 
	- 	 	Procurement
	 
	- 	 	Manufacture
	 
	- 	 	Site Installation and Commissioning
	 
	- 	 	Safety

Project Procurement

Responsible for the preparation and issuing of subcontractor and vendor enquiry documentation in
conformance with the main Contract documentation, Responsible for making procurement
recommendations to the Project Manager and for the placement of purchase orders with approved
sub-suppliers.

In this role Project Procurement will:

	- 	 	Establish reliable sources of supply
	 
	- 	 	Issue inquiries and evaluate Subcontractor tenders
	 
	- 	 	Coordinate the negotiation, authorisation and letting of purchase orders.
	 
	- 	 	Ensure the expediting and timely delivery of material to the final point of destination.

Quality Assurance Manager

The Quality Assurance Manager is the Management Representative on all matters relating to the
quality system and for the quality requirements of this Project. The Quality Assurance Manager,
by a programme of review will ensure that the specific quality assurance and quality control
requirements of the Project have been met.

			
	 	 	 
	 
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	 	PROJECT QUALITY PLAN

LIHIR GOLD-SAG & BALL MILLS- 280254
	 	 

Quality Inspector

Responsible for quality verification of items, equipment and components, in accordance with
approved inspection and test plans and work instructions, during the manufacturing and
installation stages of the Project. Reviews supplier quality records for compliance with
specifications.

Site Supervisor

Reporting to the Project Manager, the Site Supervisor is role is to coordinate the erection and
installation of FLSM supplied equipment at the construction site. As such his responsibilities
will be:

	- 	 	Coordination of sub-suppliers for the installation of the equipment and related activities
at site. He will actively participate in the planning and coordination of resources and
equipment for this site activity.

	- 	 	Liaison with the Client representatives with regard to safety, quality, overall
coordination and contractual site schedule commitments.

	- 	 	Ensuring compliance with site safety requirements.

	- 	 	Ensuring that the standard of workmanship complies with the specification, that specified
inspections and tests are conducted and that records are maintained to substantiate
conformance to Contract quality requirements.

Commissioning Engineer

Responsible for developing the commissioning plan.

In liaison with client representatives, the Commissioning Engineer will:

	- 	 	Check the complete installation to confirm that all equipment has been installed in
accordance with the drawings and suppliers recommendations
	 
	 	 	Develop the commissioning and safety guidelines, inspection and testing schedules and
commissioning reports Commission the equipment in accordance with the agreed
commissioning program

SECTION FOUR-TECHNICAL SPECIFICATIONS-REV 0

			
	 	 	 
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	 	PROJECT QUALITY PLAN

LIHIR GOLD-SAG & BALL MILLS- 280254
	 	 

4.1 TECHNICAL SPECIFICATIONS FOR SAG & BALL MILL

	 	 	 	 	 	 	 
	DOCUMENT	 	TITLE	 	REV.
	 
	MOPU-1001-0A M-018ANI

	 	SAG MILL Technical Reference Sheet
	 	—

	MOPU-1001-0A M-018SP

	 	SAG MILL GM2001-Equipment Specification No M018
	 	 	1	 

	 	 	 	 	 	 	 
	DOCUMENT	 	TITLE	 	REV
	 
	MOPU-1001-0A M-019ANI

	 	BALL MILL Technical Reference Sheet
	 	—

	MOPU-1001-0A M-019SP

	 	BALL MILL GM2002-Equipment Specification No M019
	 	 	1	 

4.2 FLSM ENGINEERING DOCUMENTS

	 	 	 
	ED No.	 	Title
	40.100.001 Rev 2

	 	Visual Acceptance Criteria for As-Cast Surfaces
	 
	40.726.000 Rev 13

	 	Manufacturing and Inspection Procedure for Mill Shells
	 
	40.726.005 Rev 6

	 	Procedure for Manufacture and Inspection of Ductile Iron
Mill Heads
	 
	40.726.003 Rev 3

	 	Procedure for Use of Hole-Templates
	 
	40.726.009 Rev 2

	 	Inspection Procedure for Critical Fasteners
	 
	40.736.003 Rev 3

	 	Approved Gear Tooth Inspection Methods
	 
	40.736.007 Rev 3

	 	Hardness Testing of Gear Blanks.
	 
	40.736.009 Rev 3

	 	Magnetic Particle Inspection of Finished Gear Teeth.
	 
	40.736.013 Rev 3

	 	Specification for Pinion Forgings
	 
	40.736.018 Rev 2

	 	Magnetic Particle Inspection of Finished Pinions from
Alloy Steel Forgings
	 
	70.736.002 Rev 2

	 	Mech-Tensioner (MT) Jackbolt Tightening & Loosening
Procedure
	 
	90.726.008 Rev 1

	 	Painting Systems for Grinding Mills and Scrubbers.

			
	 	 	 
	 
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	 	PROJECT QUALITY PLAN

LIHIR GOLD-SAG & BALL MILLS- 280254
	 	 

SECTION FIVE-REV 0

QUALITY MANAGEMENT SYSTEM-AS/NZS ISO 9001:2000

	 	 	 	 	 	 	 
	 	 	QUALITY STD	 	 	 	 
	NO.	 	ISO 9001-2000	 	DESCRIPTION	 	REQUIREMENT
	1

	 	Sect 5
	 	Management Responsibility
(Ref FLSM QMS Proc No
3.0 Management
Responsibility)
	 	Section 3 of this Quality Plan provides for the
proposed Project Organisation. Management
reviews will be conducted of Project executive
summaries. Management will thus be able to
implement required corrective action if the need
arises to ensure the proper operation of the project
controls system.
	 
	 	 	 	 	 	 
	2

	 	Sect 4.
	 	Quality Management
System (Ref FLSM QMS
Procs No 2.0 Quality
Management System and
6.1 Internal Quality Audits)
	 	Quality management system requirements based on
AS/NZS/ISO9001:2000 will be implemented during
the project. FLSM’s project quality system will consist
of Project Quality Plan, Quality System Procedures,
Work Instructions, Controlled Data, Quality Records.
	 
	 	 	 	 	 	 
	3

	 	Section 7.2.2
	 	Review of Requirements
Related to the Product (Ref
FLSM QMS Proc No 5.0
Contract Review)
	 	Review of Purchaser RFQ and Purchase Order to be
performed in accordance with the requirements of
FLSM’s quality management system. Record of
contract review to be maintained on tender and
contract files. Resolve any conflicts or ambiguities
with the Purchaser.
	 
	 	 	 	 	 	 
	4

	 	Section 7.3
	 	Design and Development
(Ref FLSM QMS Proc No
5.1 Design and
Development Control)
	 	Design control will be in accordance with the
requirements of FLSM’S quality management
system. Equipment design will meet the
requirements of the relevant Technical
Specifications, apart from any mutually agreed
exceptions.
	 
	 	 	 	 	 	 
	5

	 	Section 4.2.3
	 	Control of Documents (Ref
FLSM QMS Proc No 2.1
Document Control)
	 	Document and data control will be in accordance with
the requirements of FLSM’s quality management
system. [Hard copy or electronic media] Drawings
and documentation will be submitted to the
Purchaser in accordance with Section 9 of
Equipment Specification No M018 Rev 1 and
Section 9 of Equipment Specification No M019 Rev
1.
	 
	 	 	 	 	 	 
	6

	 	Section 7.4
	 	Purchasing (Ref FLSM
QMS Proc No 5.3
Purchasing)
	 	Purchasing will be performed in accordance with the
requirements of FLSM’s quality management
system.
	 
	 	 	 	 	 	 
	7

	 	Section 7.5.4
	 	Customer Property (Ref
FLSM QMS Proc No 5.7
Customer Supplied
Property)
	 	Where relevant, Purchaser-supplied property (incl
intellectual property) will be managed in accordance
with the requirements of FLSM’s quality
management system.
	 
	 	 	 	 	 	 
	8

	 	Section 7.5.3
	 	Identification and
Traceability (Ref FLSM
QMS Proc No 5.6 Product
Identification and
Traceability)
	 	Traceability, where required by the contract will be
implemented for product supplied in accordance with
Purchaser-approved Inspection and test plans

			
	 	 	 
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	 	PROJECT QUALITY PLAN

LIHIR GOLD-SAG & BALL MILLS- 280254
	 	 

	 	 	 	 	 	 	 
	 	 	QUALITY STD	 	 	 	 
	NO.	 	ISO 9001-2000	 	DESCRIPTION	 	REQUIREMENT
	9

	 	Section 8
	 	Product Realisation [Ref
FLSM QMS Procs Nos 5.0-5.11 (incl)]
	 	Product realisation will be in accordance with Section
4.9 AS/NZS/ISO9001-2000-Master project file,
project plan/schedules, project quality plan,
PITP/ITPs, MDR, contract financial controls, controls
for revision and distribution of project documents,
progress review and reports and project close out.
	 
	 	 	 	 	 	 
	10

	 	Section 8.2.4
	 	Monitoring and
Measurement of Product
(Ref FLSM QMS Procs No
6.2 Inspection and Testing
and 6.3 Inspection and Test
Plans)
	 	Monitoring and measurement of product will be
conducted in accordance with the requirements of
FLSM’s quality management system and the
approved inspection and test plans as well as
Section 5 of Equipment Specification No M018 Rev 1
and Section 5 of Equipment Specification No M019
Rev 1
	 
	 	 	 	 	 	 
	11

	 	Section 7.6
	 	Control of Monitoring and
Measuring Devices (Ref
FLSM QMS Proc No 5.9
Control of Inspection,
Measuring and Test
Equipment)
	 	Control of Monitoring and Measuring devices will be
implemented in accordance with the requirements of
FLSM’s quality management system.
	 
	 	 	 	 	 	 
	12

	 	Section 7.5.3
	 	Identification and
Traceability (Ref FLSM
QMS Proc No 6.4
Inspection and Test Status)
	 	Inspection status of product will be implemented in
accordance with the requirements of FLSM’s quality
management system.
	 
	 	 	 	 	 	 
	13

	 	Section 8.3
	 	Control of Non-Conforming
Product (Ref FLSM QMS
Proc No 6.5 Control of Non-
Conforming Product)
	 	Non-conforming product, if applicable, will be
identified, segregated and dispositioned in
accordance with the requirements of FLSM’s quality
management system and in accordance with the
requirements of the contract
	 
	 	 	 	 	 	 
	14

	 	Sections 8.5.2
& 8.5.3
	 	Corrective and Preventive
Action (Ref FLSM QMS
Proc No 6.6 Corrective and
Preventive Action)
	 	Corrective and Preventive actions will be
implemented, as required, in accordance with the
requirements of FLSM’s quality management
system for the dispositioning of non-conformances.
	 
	 	 	 	 	 	 
	15

	 	Section 7.5.5
	 	Preservation of Product
(Ref FLSM QMS Proc No
5.8 Handling, Storage,
Packaging, Preservation
and Delivery
	 	Preservation of Product will be implemented in
accordance with the requirements of FLSM’s quality
management system and in accordance with
Section 6 of Equipment Specification M018 Rev 1
and Section 6 of Equipment Specification M019
Rev 1. Expediting will be conducted in accordance
with the requirements of the contract and FLSM’s
approved Manufacturing and Supply Schedule.
	 
	 	 	 	 	 	 
	16

	 	Section 4.2.4
	 	Control of Records (Ref
FLSM QMS Proc No 2.2
Records Management)
	 	Records Management will be implemented in
accordance with the requirements of FLSM’s quality
management system and in accordance with the
requirements of Drawings and Data Requirements.

			
	 	 	 
	
	 	12 of 15

 

 

					
	
	 	PROJECT QUALITY PLAN

LIHIR GOLD-SAG & BALL MILLS- 280254
	 	 

SECTION SIX-REV 0

SUB CONTRACTED WORK/SUB-SUPPLIERS

1. The current listing of proposed key sub-suppliers is:

	 	 	 	 	 
	Item	 	Sub-Supplier	 	Location
	Mill-Shells

	 	DCD-Dorbyl
	 	Johannesburg,RSA.
	SAG Mill Heads & Trunnions

	 	GCF/Falk Australia
	 	Newcastle, NSW.
	Gears & Pinions

	 	Hofmann
	 	Perth, WA
	Ball Mill Trunnions

	 	Ferry-Capitain
	 	France
	Bearings

	 	TBA
	 	TBA
	Lubrication Systems

	 	Bosch-Rexroth
	 	Kings Park, NSW.
	Base Plates

	 	TBA
	 	TBA
	Load Cells

	 	Kelk
	 	Canada
	Gear Guards

	 	TBA
	 	TBA
	Sole Plates

	 	TBA
	 	TBA
	Structural Fasteners

	 	Donhad
	 	Perth, WA
	Trommels

	 	TBA
	 	TBA
	Feed Chutes

	 	TBA
	 	TBA
	Trunnion Liners

	 	TBA
	 	TBA

REF: PROJECT Organization Chart -REV 0 (Attachment A-TO BE ADVISED)

			
	 	 	 
	
	 	13 of 15

 

 

Appendix F

Inspection and Test Plans

For

a) Shells

b) Heads

c) Trunnions

d) Gears

e) Pinions

 

 

					
	
	 	ATTACHMENT
b- PROJECT INSPECTION AND TEST PLAN
	 	Page 1 of 1

	 	 	 
	PURCHASER: LIHIR GOLD LIMITED

	 	FLSM PROJECT NO: 280254
	DRAFT INSTRUMENT OF AGREEMENT : MOPU-1001-L-011

	 	EQUIPMENT DESCRIPTION: MAJOR 
	PROJECT DESCRIPTION: LIHIR MOPU PROJECT SAG & BALL MILLS

	 	ITEMS OF SUPPLY FOR SAG AND BALL 
	TECHNICAL SPECIFICATION: LGL EQUIPMENT SPECIFICATION No M018 Rev 1 SAG MILL GM2001 AND

	 	MILLS EQUIPMENT NUMBERS: 

1326-GM2001  (SAG MILL); 1326-GM2002
	LGL EQUIPMENT SPECIFICATION No M019 Rev 1 BALL MILL GM2002.

	 	 (BALL MILL)

KEY: Inspection: X      Surveillance: S      Witness Point: WP     Hold Point: HP      Statutory Hold Point: SHP     Document Review: DR

	 	 	 	 	 	 	 	 	 	 	 
	ITEM	 	 	 	PREFERRED	 	 	 	 	 	 
	NO.	 	EQUIPMENT	 	SUPPLIER	 	SUB-SUPPLIER	 	FLSM	 	LIHIR
	1

	 	Gears and Pinions
	 	Hofmann
	 	Insp/test in accordance with manufacturing ITPs
	 	DR, S, WP & HP in accord with fabrication,
forging and machining ITPs
	 	SpecGM2001Rev 1-Sect 5. 

Spec GM2002 Rev 1-Sect 5.
	2

	 	Mill Shells
	 	DCD-Dorbyl
	 	Insp/test in accordance with manufacturing ITP.
	 	DR, S, WP & HP in accord with
manufacturing ITP.
	 	Spec GM2001 Rev 1-Sect 5. 

Spec GM2002 Rev 1-Sect 5.
	3

	 	SAG Mill Heads and Trunnions
	 	GCF/Falk Australia
	 	Insp/test in accordance with casting and machining ITPs
	 	DR, S, WP & HP in accord with

casting/machining ITPs
	 	Spec GM2001 Rev 1-Sect 5

Spec GM2002 Rev 1-Sect 5
	4

	 	Ball Mill Trunnions
	 	Ferry-Capitain
	 	Insp/test in accordance with casting and machining ITPs
	 	DR, S, WP & HP in accord with casting/machining
ITPs.
	 	Spec GM2001 Rev 1-Sect 5

Spec GM2002 Rev 1-Sect 5
	5

	 	Mill Lubrication Systems.
	 	Bosch-Rexroth (NSW)
	 	Insp/test in accordance with manufacturing ITP.
	 	DR, S,WP & HP in accord with
manufacturing ITP-witness function test.	 	 
	6

	 	Trommels
	 	TBA
	 	Insp/test in accordance with manufacturing ITP
	 	DR, S, WP & HP in accord with

manufacturing ITP	 	 
	7

	 	Base Plates
	 	TBA
	 	Insp/test in accordance with manufacturing ITP
	 	DR, final inspection in accordance with .
manufacturing ITP	 	 
	8

	 	Gear Guards
	 	TBA
	 	Insp/test in accordance with manufacturing ITP
	 	DR, final inspection in accordance with .
manufacturing ITP	 	 
	9

	 	Sole Plates
	 	TBA
	 	Insp/test in accordance with manufacturing ITP
	 	DR, final inspection in accordance with

manufacturing ITP	 	 
	10

	 	Feed Chutes
	 	TBA
	 	Insp/test in accordance with manufacturing ITP
	 	DR, S,, WP & HP in accord with

manufacturing ITP	 	 
	PITP DOC REV 0	 	DATE: 23/4/2008	 	LIHIR APPROVAL:	 	 
	PREPARED BY: K Hickey	 	DATE: 23/4/2008	 	 	 	 
	APPROVED BY: Adrian Brown	 	DATE: 24/4/2008	 	DATE: TBA	 	 
	SUPPLIED TO LIHIR:	 	DATE: 24/4/2008	 	 	 	 

 

 

Appendix G

Drawings

 

 

SECTION 3

SPECIAL CONDITIONS OF CONTRACT

FOR THE SUPPLY OF EQUIPMENT

TABLE OF CONTENTS

PRECEDENCE OF DOCUMENTS

	 	 	 
	SC1

	 	INTERPRETATION AND CONSTRUCTION OF CONTRACT
	 
	 	 
	SC2

	 	NATURE OF CONTRACT
	 
	 	 
	SC4

	 	EVIDENCE OF CONTRACT
	 
	 	 
	SC5

	 	SERVICE OF NOTICES
	 
	 	 
	SC6

	 	CONTRACT DOCUMENTS
	 
	 	 
	SC8

	 	INTELLECTUAL PROPERTY RIGHTS
	 
	 	 
	SC11

	 	QUALITY ASSURANCE
	 
	 	 
	SC12

	 	SUPPLIERS INDEMNITY
	 
	 	 
	SC13

	 	INSURANCE
	 
	 	 
	SC18

	 	TESTING
	 
	 	 
	SC19

	 	DELIVERY
	 
	 	 
	SC20

	 	RISK IN AND OWNERSHIP OF THE EQUIPMENT
	 
	 	 
	SC22

	 	DEFECTS LIABILITY
	 
	 	 
	SC23

	 	VARIATIONS
	 
	 	 
	SC24

	 	PAYMENTS
	 
	 	 
	SC29

	 	GENERAL LIMITATION OF LIABILITY
	 
	 	 
	SC30

	 	WAIVER OF CONDITIONS
	 
	 	 
	SC31

	 	WARRANTY
	 
	 	 
	SC32

	 	TAX
	 
	 	 
	SC33

	 	CANCELLATION OF CONTRACT
	 
	 	 
	SC34

	 	PERFORMANCE WARRANTY

Page 1 of 13

 

SPECIAL CONDITIONS OF CONTRACT

FOR THE SUPPLY OF EQUIPMENT

This Section 3 contains deletions, amendments and additions to the General Conditions of Contract
(Australian Standard 4911:2003). Where a deletion, amendment or addition is made to a Clause of AS
4911, that Clause in AS 4911, stands except to the extent as modified by such deletion, amendment
or addition.

The system adopted for numbering clauses in these Special Conditions makes reference to a Clause in
AS 4911 that covers a similar subject as the Special Conditions Clause. Subjects and clauses
supplementary to AS 4911 are covered by Clauses SC.31 and onwards.

PRECEDENCE OF DOCUMENTS

If there is any conflict between any of the documents forming the contract, the Precedence
of documents shall be:

	 	1.	 	Section 1 — Instrument of Agreement;
	 
	 	2.	 	Section 2 — Appendices;
	 
	 	3.	 	Section 3 — Special Conditions of Contract;
	 
	 	4.	 	Section 4 — General Conditions of contract for the supply of equipment without
installation (AS/NZS 4911:2003), including Part A to the General Conditions.
	 
	 	5.	 	Section 5 — Scope Specification;
	 
	 	6.	 	Section 6 — Technical references; and
	 
	 	7.	 	Other Specifications.

SC1 INTERPRETATION AND CONSTRUCTION OF CONTRACT

The following shall be added to the end of Clause 1 of AS4911:

In any document relating to the Contract including these Special Conditions of Contract for
the Supply of Equipment and any Specification, Schedule or Annexure unless a contrary
intention shall appear:

“Superintendent” shall have the same meaning as Purchaser’s Representative.

“Contract Award” means the date appearing upon the advice issued by the Purchaser to the
Supplier.

“confidential information” means:

	 	(a)	 	all information data, documents, plans, specifications or other material (including
commercially sensitive information and technical know-how) directly or indirectly
disclosed or made available by or on behalf of the Purchaser to the Supplier;

Page 2 of 13

 

	 	(b)	 	all notes and other records prepared by the Supplier based on or incorporating the
information referred to in paragraph (a); and
	 
	 	(c)	 	all copies of the information and those parts of the notes and other records referred
to in paragraphs (a) and (b) above.

“Day” shall mean calendar day.

“Income Tax” means any tax of general application imposed on net income

“Site” shall mean the mining operations located on Lihir Island, Papua New Guinea

“Security” — subclause f) “other form” shall have the meaning of the Approved Form of
Unconditional Undertaking provided as Attachment 1 to these Special Conditions. This
undertaking can have an Expiry date which shall be a minimum of 6 months after the scheduled
milestone date.

SC2 NATURE OF CONTRACT

Add the following paragraph after subclause 2.1(b):

“The Supplier warrants that:

(a) the Equipment will comply with all the requirements of the Contract (including any
Specification and appendices) and all relevant legislative requirements;

(b) the Services will be provided in a professional manner with all due skill, care
and
attention.”

SC4 EVIDENCE OF CONTRACT

Delete clause 4 in its entirety and replace with the following:

“When signed by both the parties, this Purchase Order together with any annexures, appendices
or attachments shall constitute the Contract.”

SC5 SERVICE OF NOTICES

Delete point iii) “3 days after posting” from item b) in Clause 5 of
AS4911.

Add the following paragraph at the end of Clause 5 of AS4911:

The Purchaser and the Supplier shall notify each other of a change of
address.

SC6 CONTRACT DOCUMENTS

Delete and replace paragraph 2 of Clause 6.1 of AS4911 with the following:

SC6.1 Discrepancies

The Supplier shall be deemed to have carefully examined the Contract. If the Supplier has any
doubt as to the meaning of any portion of the Contract, the Supplier shall set forth the
particulars thereof and submit them to the Purchaser in writing in order that such doubt may
be removed. The Supplier shall be deemed to have satisfied itself as to all the conditions
and
circumstances affecting the contract sum and to have fixed his prices according to his own
view of these and no variation except as otherwise therein provided will afterwards be made
to the contract sum.

If minor parts that are necessary for completion of the work are not particularised in any
document forming part of the Contract then notwithstanding such omission the Supplier shall
supply other parts at no extra charge.

Page 3 of 13

 

SC6.2 Purchaser — Supplied Documents

The following shall be added at the end of Clause 6.2 of AS4911:

The Supplier may request the Purchaser in writing to supply any information that must be
supplied by the Purchaser to enable the Supplier to complete any part of the Equipment and,
where it is reasonably able to do so, the Purchaser must supply such information within
fourteen (14) days from the date the request is received.

SC6.3 Supplier — Supplied Documents

The following shall be inserted at the beginning of Clause 6.3 of AS4911:

The Supplier shall submit all data in an approved format within a reasonable period as
nominated by the Purchaser.

The supply of all data, requested under the Contract is mandatory and a condition upon which
the payment of the final fixed portion of the contract price may be withheld from the
Supplier.

SC6.5 Confidentiality

Clause 6.5 of AS4911 shall be deleted entirely and replaced with the following:

The Supplier shall keep confidential, shall not disclose to any third party nor shall use,
other than for the purpose of the Contract, without the prior written consent of the
Purchaser any confidential information obtained in the course of performance of the Contract
or as a consequence of the Contract whether relating to the performance of the Contract or
relating generally to the activities and operations of the Purchaser or its Representatives
(except insofar as the same may be part of the public domain or may be required to be
disclosed by law or pursuant to any rule of any Stock Exchange) and shall take or cause to be
taken such reasonable steps as may be necessary for the compliance with the above
obligations, which shall survive the expiration of the Contract and shall be enforceable to
any item at law or equity.

SC6.5.1 Data & Information

The above confidential information, kept in any media, shall remain the property of and shall
be returned to the Purchaser upon request or expiration of the Contract.

SC6.5.2 Servants & Agents

The Supplier shall ensure that the servants and agents of the Supplier and its personnel keep
confidential all such information.

SC6.5.3 Documentation

Any drawings, designs, plans, specifications, manuals, models, programme or other forms of
recording ideas prepared, drawn, devised, written or constructed by the Supplier as part of
the performance of the Contract shall, excluding any part thereof that contains confidential
information including procedures which are the property of the Supplier, be and shall remain
the absolute property of the Supplier.

SC6.5.4 Proprietary Rights

Any proprietary rights in any invention or piece of know how (whether patentable or not)
devised by the Supplier as part of the performance of the Contract shall be and shall remain
the property of the Supplier.

SC6.5.5 Patent and Other Intellectual Property Rights

All intellectual property rights existing prior to the performance of the Contract and all
developments or enhancements to those intellectual property rights during the performance of
the Contract shall remain the

Page 4 of 13

 

property of the Supplier. The Supplier hereby grants to the Purchaser a perpetual irrevocable
non-exclusive, non-transferable, royalty free license to use, in connection with the
operation or maintenance of the Equipment, any patent or other intellectual property right
owned by the Supplier where such patent or other intellectual property right exists in
respect of:

	 	a)	 	any equipment, construction aids or methods provided by the Supplier; and
	 
	 	b)	 	any invention, process, technology, method, know-how or other information
developed by the Supplier.

SC8 INTELLECTUAL PROPERTY RIGHTS

The following shall be added after Clause 8 of AS4911:

SC8.3 Indemnity

The Supplier shall indemnify and keep indemnified the Purchaser against any action, claim or
demand, costs or expenses arising from or incurred by reason of any infringement or alleged
infringement of letter, patent, design, drawings, written or drawn materials, trademark or
name copyright or other protected rights in respect of any machine, equipment, work material
or thing, system or method of using, fixing, working or arrangement used or fixed or supplied
by the Supplier. The indemnity shall cover any use of the Equipment or any part thereof .

In the event of any claim being made or action brought against the Purchaser in respect of
any matters covered by the indemnity the Supplier shall be immediately notified thereof and
shall with the assistance if so required of the Purchaser but at the sole expense of the
Supplier conduct all negotiations that may arise therefrom.

The Purchaser on their part warrant that any design or instructions furnished or given by
them shall not be such as will cause the supplier to infringe any letter, patent, registered
design, trademark or copyright in the performance of the contract.

SC11 QUALITY ASSURANCE

The following shall be added after Clause 11 of AS4911:

When requested to do so, the Supplier shall give to the Purchaser (or any person authorised
by them) access to work in progress and shall provide every reasonable facility necessary
for the supervision and inspection of any Equipment for the Contract, including disassembly
and testing and provide such information as required by the Purchaser to satisfy itself in
regard to the progress of the Equipment at any place including the premises of the Supplier.
The inspection and test plans shall be approved for use by the Purchaser.

The Supplier shall have a quality system in place that is consistent with AS/NZS
ISO9001:2000.

SC12 SUPPLIERS INDEMNITY

The following shall be added to the end of the second paragraph of Clause 12 of AS4911

“(c) claim by a third party arising out of the Supplier’s performance of the Contract,”

SC13 INSURANCE

Amend clause 13 of AS4911 as follows:

(a) in clause 13.1, after the words “or damage in transit to the delivery place”, insert the
words “(excluding goods covered by the Purchaser’s Marine Cargo Insurance)”;

(b) delete subclause 13.1(b) and replace it with the words “note the interests of the
Purchaser”;

Page 5 of 13

 

(c) delete subclause 13.2(a) and replace it with the words “note the interests of the
Purchaser”;

(d) add the following paragraph to the end of clause 13.3:

“The Supplier shall provide travel, medical and medical evacuation insurance for its
personnel travelling on visits to and from the Site and when resident at the Site. The
insurance policy or policies shall be unlimited as to number of claims and shall provide
cover for an unlimited amount in respect of each and every claim subject to availability at
reasonable cost.”

(e) Delete clause 13.7 of AS4911;

(f) Add the following after clause 13.6:

SC13.7 Insurance by the Purchaser

The Purchaser shall at their own expense obtain and maintain the following types of
insurance:

(a) Marine cargo / transit insurance;

(b) On-site public liability insurance.

SC18 TESTING

SC18.1 Acceptance Testing

The following shall be added to the end of Clause 18.1:

Should inspection reveal any non-conformance/defect, then any cost associated with the
disassembly, testing and re-assembly shall be borne by the Supplier.

SC18.3 Notice

Clause 18.3 of AS4911 shall be deleted entirely and replaced by the following:

The Supplier shall give the Purchaser at least 5 working days notice prior to dispatch ex
works being made to enable any final inspection of the Equipment. Notwithstanding such
inspection, the Suppliers’ responsibility to supply the Equipment in accordance with the
Contract remains unaltered.

SC18.8 Right to Inspect

The Purchaser and its employees, agents and consultants shall have the right to inspect any
item of Equipment upon reasonable notice and the Supplier shall provide sufficient reasonable
opportunities and means for such inspection.

SC19 DELIVERY

The following shall be added at the end of Clause 19.2 of AS4911:

SC19.3 Cargo and Transport

SC19.3.1 Logistics to Site

The Purchaser will provide a logistics service to the Site using its own freight forwarder
(Kuehne & Nagel) and shipping company (Swire Shipping)

The Supplier shall pack all equipment and materials into containers for transport via sea
and/or road from Suppliers works to the project site. All packing shall be the responsibility
of the Supplier and be in accordance

Page 6 of 13

 

with engineering specification for packing and transportation of goods and export cargo to
prevent damage during shipping and transport to Site. Note: Packing shall in be accordance
with Lihir Specification Number 11069-00-G0720, with amendments form Attachment 2, which
contains the Purchaser’s packing requirements.

Packing shall be suitable for transport over rough terrain.

An invoice shall accompany all equipment. Note: The Supplier shall complete all required
paperwork, in accordance with Lihir Specification Number 11069-00-G0720, including Attachment
3, once loading and packing is complete.

SC19.3.2 Consolidation and Forwarding Points

The Purchaser will provide sea and road transport from the nominated points, as described in
Section 2, Appendix C of these contract documents, for the forwarding of the Equipment to the
Site.

SC20 RISK IN AND OWNERSHIP OF THE EQUIPMENT

The following shall be added at the end of Clause 20.2 of AS4911:

SC20.2 Title

The Supplier warrants full, clear and unencumbered title to Purchaser to the Equipment
furnished by the Supplier in performance of the Contract, free and clear of any and all
liens, restriction, reservations, security interest and encumbrances.

The Supplier undertakes and agrees to take all necessary and proper steps to ensure that no
claims for liens or similar entitlements hereunder will be filed against the Equipment to be
supplied under this Contract or the property of the Purchaser. If, notwithstanding the
foregoing undertaking, any claim for lien or similar entitlement is filed against any of the
Equipment , the Supplier agrees to indemnify the Purchaser against all loss, costs, charges
and expenses occasioned by, resulting from, or in any way arising out of such claims.

SC22 DEFECTS LIABILITY

Number the existing section in Clause 22 of AS4911 with 22.1 Defects Liability Period.

SC22.2 Notification of Defects

The direction issued pursuant to SC 22.1 shall identify the omission or defect and state a
date by which the Supplier must complete rectification. The direction may provide that in
respect of the work rectification there shall be a separate Defects Liability Period of a
stated duration not exceeding the Defects Liability Period stated in the Annexure. The
separate Defects Liability Period shall commence on the date the Supplier completes the work
of rectification. This Special Condition of Contract shall apply both in respect of the work
of rectification and the Defects Liability Period for that work.

If it is necessary for the Supplier to carry out rectification, the Supplier shall do so at
times and in a manner which causes as little inconvenience to the Purchaser as is reasonably
possible.

SC23 VARIATIONS

The following shall be inserted at the beginning of Clause 23.1 of AS4911:

The Purchaser shall not become liable for payment of any claims in respect of any variation
unless the variation has been directed or agreed to in writing by the Purchaser prior to the
Supplier taking any action in regard to such variation.

Page 7 of 13

 

SC24 PAYMENTS

Add the following clause to AS4911:

SC 24.7 Transparency and Audit

All variable costs shall be tracked (on a fortnightly basis) utilising a detailed budget
spreadsheet file, indicating the following information for each piece of equipment:

	 	•	 	committed cost,
	 
	 	•	 	budget cost,
	 
	 	•	 	forecast cost to complete,
	 
	 	•	 	variance,
	 
	 	•	 	tally of variance.

Variance to detailed budget shall be tracked and reported together with an appraisal of
forecast final cost versus the Project budget (Part 3) component.

SC26 TERMINATION BY FRUSTRATION

Delete clause 26 of AS4911.

SC29 GENERAL LIMITATION OF LIABILITY

The following clause shall be added after Clause 29.2 of AS4911:

SC29.3 Liquidated Damages

Not withstanding GC 29.2, application of liquidated damages for delay in accordance with GC
17.5 or under the Performance Warranty under SC 34 shall not act to limit the Suppliers total
liability in accordance with GC 29.2.

SC30 WAIVER OF CONDITIONS

The following shall be added at the end of Clause 30.1 of AS4911.

SC30.1 Non-Waiver

The waiver or relaxation partly or wholly of any of these Special Conditions or other terms
of the Contract shall apply only to a particular occasion and shall not be continuing and
further shall not constitute a waiver or relaxation of any other condition or term. Any such
waiver must be in writing.

SC31 WARRANTY

The Supplier warrants that:

The Equipment shall conform to the description, specifications, drawings and standards
referred
to in the Contract.

All materials supplied or used in the manufacture of the equipment shall be good quality and
appropriate grade suitable for their respective purpose, and shall be new unless otherwise
specified.

Warranty terms are transferable, including those from sub suppliers, and may be subject to
novation by the Purchaser to its subsidiaries or related bodies corporate without the need
for the Supplier’s consent.

Page 8 of 13

 

The Supplier shall obtain for the benefit of the Purchaser from sub-suppliers, vendors and
consultants with respect to services, equipment, and construction aids the best warranties or
guarantees in relation to such services, equipment, and construction aids as are reasonably
obtainable by the Supplier and the Supplier shall assist the Purchaser with the enforcement
of such warranties or guarantees as reasonably requested by the Purchaser.

The supplier warrants Equipment of its manufacture to be free from defects in material and
workmanship for a period of two (2) years from date of shipment or one (1) year from
commissioning, whichever occurs first. If properly installed, maintained, and operated under
normal conditions with competent personnel and supervision, but not resulting from ordinary
wear, corrosion, erosion, chemical or abrasive action, excessive heat, improper lubricating
oil, improper or extended storage prior to start up, or application outside the design
limitations of said equipment.

If repairs or replacements are made by the purchaser without the supplier’s prior written
consent, the suppliers warranty shall cease to be in effect. No allowance will be granted for
any repairs or alterations made by the purchaser without supplier’s prior written consent.
This is not applicable for situations where an item requires rectification for the protection
of people or property.

In addition to the above, the following items shall carry extended warranty periods of six
(6) years from delivery or five (5) years from commissioning, whichever occurs first:

	 	•	 	Sheels, trunnions and heads
	 
	 	•	 	Structural fasteners connecting the above components.

SC32 TAX

SC32.1 Definition

	 	(a)	 	“Tax” means 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 or
Australia 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.

SC32.2 Liability For Tax

	 	(a)	 	The Seller shall reimburse the Purchaser for the amount of the Purchaser’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.
	 
	 	(b)	 	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.

	 
	 	(c)	 	

Should the Purchaser 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.

SC32.3 GST

	 	(a)	 	For the purposes of Clause SC32.3:
	 
	 	 	 	“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;

Page 9 of 13

 

	 	 	 	“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.
	 
	 	(b)	 	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.
	 
	 	(c)	 	The Seller will make all reasonable endeavours to ensure the supply of the Equipment is
GST-free under GST Law. In this regard, the Seller warrants that it will export the
Equipment 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 Equipment within the 60 day timeframe.
	 
	 	(d)	 	Despite any other provision in the Contract, if a party (“Supplier”) 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”):

	 	I.	 	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
Supplier, an amount equal to the GST payable by the Supplier on that supply;
	 
	 	II.	 	The amount
by which the GST exclusive consideration is increased must be paid to the
Supplier by the Recipient at the same time as the GST exclusive consideration is
payable or to be provided; and
	 
	 	III.	 	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.

	 	(e)	 	Notwithstanding the above provisions, the Purchaser is only required to gross up a
payment under Clause SC32.3(d) if and to the extent that the Purchaser is entitled to claim
a corresponding Input Tax Credit.

SC32.4 Reimbursements

	 	(a)	 	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.

SC32.5 Adjustment Events

	 	(a)	 	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

Page 10 of 13

 

to the adjustment must be made between the parties and the Supplier must issue a
valid adjustment note in relation to the adjustment event.

SC32.6 Survival

	 	(a)	 	This clause SC32 shall survive on completion or termination of the Contract.

SC33 CANCELLATION OF CONTRACT

SC33.1 Cancellation Without Cause

The Purchaser may at any time cancel this Contract in total, or as to any part of the
Equipment, without cause by giving the Supplier Forty (40) business days notice setting forth
the extent of the cancellation and the effective date thereof.

SC33.2 Effect of Cancellation

If the Purchaser terminates this Contract in accordance with clause SC 33.1 the Supplier’s
sole entitlement to be paid by the Principal is as follows:

	 	(a)	 	the fixed and variable portions of the contract (Costs) of that proportion of the Works
completed but not paid for by the Principal to the Supplier when this Contract was
terminated;
	 
	 	(b)	 	subject to the Supplier taking all reasonable steps to mitigate such Costs, the cost of
materials and equipment reasonably ordered by the Supplier and which the Supplier is liable
to accept, but only if such materials and equipment will become the Principal’s property;
	 
	 	(c)	 	subject to the Supplier taking all reasonable steps to mitigate such Costs, the recovery
of such other fixed and variable portions reasonably and necessarily incurred by the
Supplier prior to the date of termination in the expectation of completing the Works
(including subcontract break fees) and not included in any other payment by the Principal to
the Supplier.

SC34 PERFORMANCE WARRANTY

SC34.1 General Conditions of Warranty

The Process Performance Warranty (as detailed in the technical specification) is valid
provided the following general conditions are met:

	 	•	 	That the equipment and machinery to be furnished by the Supplier shall be erected under
the advice of Supplier personnel. That all equipment, machinery, and components not
furnished by Supplier are properly sized, installed, and satisfactorily operating.
	 
	 	•	 	That the start-up, preliminary operational period, and acceptance tests take place under
the advice of Supplier personnel.
	 
	 	•	 	That the constituents of the materials to be ground are within the specification limits
and/or do not adversely affect performance and operation.
	 
	 	•	 	That the mill system is properly controlled and operated in accordance with Supplier’s
recommendations and that the Purchaser shall maintain and permit Supplier access to
comprehensive daily records of performance data (including power draw, pulp density,
feed particle size distribution and ore SG).

Page 11 of 13

 

Incorporated in these records shall be sampling and data gathering according to Supplier
recommendations. Such records shall be maintained from start-up of the system to such a time
as Process Performance/Power Draw Warranties are deemed to have been met.

That all power draw figures given by Supplier are subject to a measuring tolerance of 3%.

SC34.2 Acceptance Tests

After final shipment, there will be a preliminary start-up period not to exceed twelve (12)
months, during which the Purchaser will erect the equipment and run-in.

Purchaser shall notify Supplier of date that equipment is ready for testing; however, if
through no fault of Supplier, the performance tests are not commenced within eighteen (18)
months from the final shipment, Supplier shall be deemed to have satisfied the Performance
Warranty and will be discharged from all further obligations under this warranty regardless of
whether or not the tests are conducted.

The acceptance tests will be conducted during a twenty-four (24) hour period of substantially
continuous operation. Any interruptions during this period not exceeding eight (8) hours in
total, which are not due to the fault of Supplier, shall be counted toward the twenty-four
hours and the average output will be computed on number of hours of actual operation.

If, during the acceptance tests, the guaranteed figures mentioned herein are obtained, the
equipment and machinery (all mills) furnished by Supplier shall be accepted as meeting this
Warranty.

If, during the acceptance tests, the guaranteed figures mentioned herein are not obtained due
to reasons attributable to Supplier, an additional six (6) month term shall be granted to
Supplier. During this term, Supplier shall have access and opportunity to correct possible
defects of the equipment and machinery supplied by Supplier in order to meet the guaranteed
figures. After such corrections, the Process Performance acceptance tests will be repeated,
subject to the same standards and procedures as previously set forth.

The Purchaser shall make available free of charge to Supplier, qualified personnel to properly
operate the equipment and machinery. The Purchaser shall also furnish all raw materials,
consumables, equipment, and utilities required to conduct the acceptance test at no charge to
Supplier.

SC34.3 Liquidated Damages

If the power draw figures, taking into account the % tolerance, are not attained (after the
period
of rectification and retest) due to reasons for which Supplier is responsible, the Purchaser
is entitled to claim the following sums as liquidated damages. Payment by Supplier of such
liquidated damages will release Supplier from any future or further claims or liability.

For each full unit of kW less than the warranted power draw, subject to the tolerance,
Supplier agrees to pay AUD per unit up to a maximum total amount of AUD. These
Liquidated Damages shall apply separately to each mill.

Purchaser’s sole and exclusive remedy for failure by Supplier to attain the guaranteed figures
shall be payment by Supplier to Purchaser of the liquidated damages as set forth above.
Supplier’s responsibility for failure to attain the guaranteed figures shall in no case exceed
the liabilities stated in this guarantee. The application of liquidated damages for the
guaranteed
figures shall not serve to decrease the Supplier’s liability as detailed in GC 29 and item 37
of Annexure Part A to the General Conditions.

Except as stated in this process performance/power draw warranty and except as to title, there
are no guarantees or warranties of Merchantability, Fitness for Purpose, performance or
otherwise, express, implied

Page 12 of 13

 

or statutory, and Supplier shall have no liability for consequential, incidental or other damages,
howsoever caused.

Page 13 of 13

 

Attachment 1 

APPROVED FORM OF BANK GUARANTEE

(To be typed on Bank Letterhead)

TO:      Lihir Gold Limited (incorporated in PNG), ARBN 069 803 998

Dear Sirs,

At the request of FLSmidth Minerals Pty Ltd (ABN: 85 000 221 590 ) of 24-28 Marshall Road, Airport
West VIC 3042 (hereinafter called “the Supplier”) and in consideration of you accepting this
Guarantee in relation to the Contract (defined below), HSBC Bank Australia Limited (“HSBC”)
unconditionally undertakes to pay on demand any sum or sums which may from time to time be demanded
in accordance with this Guarantee by you to a maximum aggregate sum of AUD (#####) (the “Guaranteed
Amount”).

This Guarantee is to continue until the first to occur of:

	 	1.	 	4pm (local time in the place of the Office) on the ####### (the “Expiry Date”);
	 
	 	2.	 	your delivery of a notice to HSBC that the Guarantee is no longer required;
	 
	 	3.	 	the date this Guarantee is returned to HSBC at its office at ######## (the “Office”); or
	 
	 	4.	 	the date of payment to you by HSBC of the whole of the Guaranteed amount (or such lesser sum
as you may require).

If you wish to make a demand or issue any notice under this Guarantee then the notice or demand you
deliver to HSBC must:

	 	a)	 	be in writing;
	 
	 	b)	 	be or purport to be signed by you or for you and on your behalf;
	 
	 	c)	 	state that the notice or demand is made pursuant to this Guarantee; and
	 
	 	d)	 	if a demand, state the amount required to be paid under this Guarantee.

You may make multiple demands under this Guarantee, and upon payment by HSBC, the Guaranteed Amount
will automatically reduce by the amount paid.

If a demand is made in accordance with the above provisions, HSBC will make such payment or
payments to you or at your direction and notwithstanding any notice given by the Supplier to HSBC
not to make the payment.

Despite anything else in this Guarantee, HSBC may terminate it at any time by paying you the
Guaranteed Amount at that time or any lesser amount you agree.

 Page 1 of 2 

 

Payments under this Guarantee by HSBC may be by:

	 	a)	 	Bank cheque;
	 
	 	b)	 	by telegraphic transfer to any account you nominate in writing for this
purpose; or
	 
	 	c)	 	by such other method which HSBC agrees with you.

You cannot assign or transfer your rights under this
Guarantee.

This Guarantee is governed by the law of Victoria.

This undertaking is effective from ######## and expires ####### at 4pm on ########.

Definitions

Contract means in respect of ####### for your Job #

You means the person or other entity described as the beneficiary in this Guarantee, and where
there is more than one, it includes any one or more of you.

Your has the corresponding meaning. It also includes your executor, administrator and your
successor.

Dated at ##### this ### day of ###### 2008.

Yours faithfully,

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dated at:

	 	 	 	this
	 	 	 	day of
	 	 	 	2	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 	 	 

	 	 	 	 	 	 

	 	 

	 	 	 	 	 	 	 	 	 	 	 
	Signed by:

	 	 	 	 	)	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	(Bank Stamp)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	In the presence of:

	 	 	 	 	)	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

 Page 2 of 2 

 

Attachment 2

FOR SUPPLY TO: LIHIR GOLD LIMITED, PNG

	1	 	DELIVERY DOCKETS / PACKING LISTS — FOR ORDERS FROM ORIGINS OTHER THAN THAT OF VENDOR
PREMISES

	 	1.1	 	Original Delivery Dockets / Packing Lists to be placed inside the carton, where possible
Values to be written against each line item.
	 
	 	1.2	 	A copy of the Delivery Dockets / Packing Lists to be placed inside a sealed waterproof
document envelope and stapled / glued / nailed to the outside of the carton / crate. Where possible
Values to be written against each line item.
	 
	 	1.3	 	A copy of the Shippers Letter of Instruction (SLI attached) must be completed by the
supplier and forwarded to the consolidator (Kuehne & Nagel) by email prior to delivery pick up.

	2	 	CARRIER’S CONSIGNMENT NOTES

	 	2.1	 	Carrier’s Consignment Notes must be correctly completed, and show the following:

	 	2.1.1	 	Receiver as Lihir Gold Limited (PNG) C/- Kuehne & Nagel Banyo consolidator.
	 
	 	2.1.2	 	Freight payable by Lihir Gold Limited ex works or supplier (FAS) from
point of origin to consolidation point unless otherwise stated on the Lihir
Gold Limited Purchase Order.
	 
	 	2.1.3	 	Appropriate minesite order number must be noted on all packages and documents.
	 
	 	2.1.4	 	Description, e.g. quantity pallets, carton, package etc., each to have individual weight
and dimensions.
	 
	 	2.1.5	 	Consolidator Address. Kuehne & Nagel, 113 Buchanan Road.
Banyo. QLD 4013 Phone Number (07) 3623 7900

*
 MOST IMPORTANT *

GOODS WILL BE CONSIDERED AS NOT PROPERLY RECEIVED UNLESS ORIGINAL INVOICE ACCOMPANIES
CONSIGNMENT. LIABILITIES REMAIN WITH SELLER UNTIL SUCH TIME AS INVOICE IS RECEIVED.

	3	 	MARKINGS

	 	3.1	 	All packages are to be addressed, marked and numbered to the Site as follows:
	 
	 	 	 	LIHIR GOLD LIMITED

MAIN WAREHOUSE

LIHIR ISLAND

PAPUA NEW GUINEA

ORDER NO. ************
	 
	 	 	 	PACKAGE 1 OF 2 (2 of 2 etc.)

 Page 1 of 9

 

	 	3.2	 	Each package is to be marked with its own individual weight.

	4	 	PACKAGING

	 	4.1	 	CARDBOARD CARTONS:- To be of good quality to withstand road transport
with a net content
to be of a suitable manageable weight. All cartons must be securely
taped crossways, top and bottom.
Items outside this realm must be packed in wooden crates.
	 
	 	4.2	 	WOODEN CRATES/BOXES — LIGHT DUTY (Diagram A):- To be of good quality
pine timber with hardwood base with steel strengthening bands. Net
content weight not to exceed 200 kg.
	 
	 	4.3	 	WOODEN CRATES — HEAVY DUTY (Diagram B):- To be of good quality pine
timber with hardwood base
with steel strengthening bands. Net content weight not to exceed 400 kg.
	 
	 	4.4	 	WOODEN OPEN CRATES — HEAVY DUTY (Diagram C):- To be of good quality
pine timber with hardwood base with steel strengthening bands. Net
content weight not to exceed 600 kg.
	 
	 	4.5	 	WOODEN PALLET CRATES — EXTREME DUTY (Diagram D):- To be of good quality
pine timber with hardwood base with steel strengthening bands. The
overall quality of this crate must be commensurate with the weight of
the contents to ensure safe handling and protection of the cargo.
	 
	 	4.6	 	STEEL DRUMS:- To be of export quality and non returnable drums.
	 
	 	4.7	 	BUNDLING OF LOOSE ITEMS (Diagram E):- For items such as steel pipe,
steel shapes, timber etc. All items are to be segregated by length and
size in packs not exceeding 2,000 kg. Each pack to be single Order
Number and of one products type bundled with 25mm wide heavy duty steel
strapping spaced at a maximum of 1,500mm intervals and have a minimum
of two lengths of timber with a minimum dimension Of 100mm x 50mm to
form an integral base.
	 
	 	4.8	 	PACKING:- All internal packing used for the supply of items to the
minesite must be biodegradable ie. no bubblewrap, polystyrene etc.
Note: Any non biodegradable packing used may be returned to the seller
with all associated freight costs to seller’s account.
	 
	 	4.9	 	SAMPLE TYPES OF BOXES/CRATES — GENERAL SPECIFICATION

	 	 	 
	GROSS WEIGHT	 	 
	STEEL STRAPPING	 	DIAGRAM
	TO 200 KG

	 	A
	 
	 	 
	200-400 KG

	 	B
	 
	 	 
	OVER 400 KG

	 	C

 Page 2 of 9

 

	 	 	 	 	 
	DIAGRAM A

	 	DIAGRAM B
	 	DIAGRAM C
	

	 	
	 	

	 	 	 
	DIAGRAM D

	 	DIAGRAM E
	

	 	

	5	 	PALLETISING

	 	5.1	 	Pallets are to be non returnable for all site and of export quality. They are to be of
suitable construction to withstand 2,000 kg horizontal breaking force. Pallets to be
no greater than
1150mm x 1150mm in dimension.
	 
	 	5.2	 	Cartons packed on pallets must be shrinkwrapped and a 6mm piece of ply placed on top
prior
to shrinkwrapping.
	 
	 	5.3	 	Plastic pails and tins are to have a piece of 6mm ply placed in between each layer
plus a 6mm top ply and then shrink wrapped. Packing of pallets containing Pails/Tins
is to be as follows:

4 LITRE TINS NO MORE THAN 5 LAYERS

10 LITRE TINS NO MORE THAN 3 LAYERS

20 LITRE TINS NO MORE THAN 2 LAYERS

ABOVE 20 LITRE SINGLE LAYER ONLY

	 	5.4	 	STEEL DRUMS ARE TO BE STRAPPED TOGETHER WITH STEEL STRAPPING.

 Page 3 of 9

 

	6	 	SPECIAL ADDITIONAL INSTRUCTIONS FOR AIR FREIGHT ORDERS

	 	6.1	 	Individual cartons/packages should be of a suitable
manageable weight and must not exceed 30kg. The
size of the carton were possible should not be
larger than 300mm x 300mm x 300mm and ultimately
not larger than 750mm x 750mm x 500mm.

	 
	 		 	

Note: If
either the weight or size exceeds the above, the
seller is to contact Site Purchasing or
Expediting for further instructions.
	 
	 	6.2	 	In addition to all standard requested markings the
words “AIRFREIGHT ORDER” must clearly be Marked in
bold print next to the order number.
	 
	 	6.3	 	Separate Delivery Dockets/Packing Lists are not
acceptable. A copy of the Original Invoice is to be
used as the Delivery Dockets/Packing list. Two
copies Original Invoices are to be attached to the
outside of the main package (use of a sealed
waterproof document envelope is required) and a
copy of the Original Invoice is to be placed inside
the same package.
	 
	 	6.4	 	It is the responsibility of the seller to duly
complete a Hazardous Goods declaration (DGs),
should the seller not be licensed to do so,
arrangements should be made through a licensed
agent.

The seller has a duty of care to disclose
all DGs at time of dispatch. 

Note: It is important
that all DGs be consigned separately with all
appropriate paperwork completed.

	7	 	HAZARDOUS GOODS

	 	7.1	 	All markings on the outside of containers and
packing shall be in accordance with the “Australian
Dangerous Goods Code”. All packaging shall be in
accordance with aforementioned code.
	 
	 		 	(Note: It is
the responsibility of the seller to duly complete a
Hazardous Goods declaration and supply a Material
Safety Data sheet (MSDS) and a Emergency Procedure
guide (EPG).)
	 
	 	7.2	 	All vessels / containers for the transport of
dangerous goods are to be in satisfactory condition
for transport via road, rail, sea or air.

	8	 	FUMIGATION CERTIFICATES

	 	8.1	 	Where required a certificate of fumigation is to be
supplied to comply with Australian and Papua New
Guinea Quarantine Inspection Services requirements
relative to the country of supply.

	9	 	CONTACT DETAILS

	 	 	 	LIHIR GOLD LIMITED — LIHIR ISLAND — PAPUA NEW GUINEA
	 
	 	 	 	CONSOLIDATOR DETAILS
	 
	 	 	 	KUEHNE + NAGEL

113 Buchanan Road

Banyo

QLD, 4014 Australia
	 
	 	 	 	Contacts

	 	 	 	 	 
	 	 	Paul Norris Operations Manager Queensland
	 

	 	Phone
	 	(07) 3623 7900 Switch
	 

	 	 	 	(07) 3623 7903 Direct

 Page 4 of 9

 

(07) 3627 8648 Fax

	 	 	 	 	 
	 

	 	Email Address
	 	paul.norris@kuehne-nagel.com
	 
	 	 	 	 
	 	 	Kirstin Hill Projects Supervisor
	 

	 	Phone
	 	(07) 3623 7900 Switch
	 

	 	 	 	(07) 3623 7901 Direct
	 

	 	 	 	(07) 3267 8648 Fax
	 
	 	 	 	 
	 

	 	Email Address
	 	Kirstin.hill@kuehne-nagel.com

 Page 5 of 9

 

Attachment 3

			
	 	 	 
	KUEHNE + NAGEL
	 	

	 	 	 	 	 
	 

	 	LGL Supply Department
	 	 
	 

	 	Main Warehouse	 	 
	 

	 	Lihir Island, New Ireland Province,	 	 
	 

	 	Papua New Guinea	 	 
	 
	 	 	 	 
	 

	 	P.O. Number:                                        	 	 
	 
	 	 	 	 
	 

	 	Piece                      of                     	 	 
	 
	 	 	 	 
	 

	 	Weight:                      KGS	 	 
	 
	 	 	 	 
	 

	 	Dims            
          L         
            
W      
               
H (cms)	 	 

Page 6 of 9

 

	 	 	 	 	 
	

	 	MULTIMODAL DANGEROUS GOODS FORM 

     This form meets the requirements of SOLAS 74, Chapter VII, regulation 5 and
MARPOL 73/78, Annex III, regulation 4.

	 	 
	 
	 	 	NOTE: When this form is used as a container/vehicle
packing certificate only, not a combined document, a dangerous goods declaration signed by
the shipper or supplier must have been issued/received to cover each dangerous goods
consignment packed in the container.

	 	 
	 
	 

	 	1.1.1     The container/vehicle packing certificate is not required for tanks.	 	 

 

			
	*	 	DANGEROUS GOODS: You must specify — proper shipping
name, hazard class, UN No., packing group (where assigned) marine pollutant and
observe the mandatory requirements under applicable national and
international governmental regulations. For the purposes of the
IMDG Code see 5.4.1.1. (see note 1 on reverse).
	 
	†	 	For the purpose of the IMDG Code, see 5.4.2 (see also note 2 on reverse)                    AMSA 250 (10.01)

Page 7 of 9

 

DOCUMENTARY ASPECTS OF THE INTERNATIONAL TRANSPORT OF DANGEROUS GOODS

Note 1: Description of Dangerous Goods: The basic items of information necessary, in addition to
the number and kind of packages, and the total quantity (by volume or mass and, in the case of
goods of Class 1, by the net explosive mass of the contents), in the description of each dangerous
substance, material or article offered for shipment are:

	-	 	the proper shipping name and, if applicable, the words “EMPTY UNCLEANED” or “RESIDUE — LAST
CONTAINED” before or after the proper shipping name for empty packagings, including portable
containers or bulk packagings, which contain the residues of dangerous goods, or the word “WASTE”
before the proper shipping name for waste dangerous goods (other than radioactive materials) being
transported for disposal or for processing for disposal. Where salvage packaging has been used, the
words “SALVAGE PACKING” should be added after the description of the goods;
	 
	-	 	the class, the division (if assigned), and the compatibility group (for goods of Class 1); or the
subsidiary hazards, if any, such as ‘flammable’, ‘oxidizing agent’, ‘corrosive’, for goods of Class
2;
	 
	-	 	the letters ‘UN’ followed by the UN number shown for the goods in the IMDG Code (except for
consignments identified as “dangerous goods in limited quantities of class/classes .....” as
permitted by 3.4.5 of the Code), followed by the packing group, where assigned;
	 
	-	 	if applicable, the minimum flashpoint if 61oC or below (in oC closed cup
(c.c.)), any subsidiary hazards not communicated by the proper shipping name, the identification
“MARINE POLLUTANT” or “SEVERE MARINE POLLUTANT”, and the recognized chemical name where special
provision 274 applies as per the dangerous goods list see 3.1.2.8.1 of the Code; and
	 
	-	 	the control and emergency temperatures, if applicable, for a class 4.1 self-reactive substance or
a class 5.2 organic peroxide.
	 
	 	 	The proper shipping name, Class, UN number, and packaging group (where assigned) should always
appear in that order. Other items may appear in any order. See section 5.4.1.2 of the Code.

Note 2: Container/Vehicle Packing Certificate

The signature given overleaf in Box 20 must be that of the person controlling the container/vehicle
operation, who certifies that:

	-	 	The container/vehicle was clean, dry and apparently fit to receive the goods.
	 
	-	 	If the consignments include goods of Class 1, other than division 1.4, the container is
structurally serviceable in conformity with 7.4.6. of the IMDG Code.
	 
	-	 	No incompatible goods have been packed into the container/vehicle unless specially authorized
by the Competent Authority.
	 
	-	 	All packages have been externally inspected for damage and only sound packages packed.
	 
	-	 	Drums have been stowed in an upright position, unless otherwise authorized by the Competent Authority.
	 
	-	 	All packages have been properly packed and secured in the container/vehicle.
	 
	-	 	When materials are transported in bulk packagings the cargo has been evenly distributed in the container/vehicle.
	 
	-	 	The packages and the container/vehicle have been properly marked, labeled and placarded. Any
irrelevant mark, labels and placards have been removed.

–
When solid Carbon Dioxide (CO2 — dry ice) is used for cooling purposes, the
vehicle or freight container is externally marked or labeled in a conspicuous place, e.g.
at the door end, with the words: DANGEROUS
CO2 GAS (DRY ICE) INSIDE — VENTILATE
THOROUGHLY BEFORE ENTERING.

	Note 3	 	Extra information is needed for certain goods of Class 1, 4.1, 5.2, 6.2, 7 and 8.
See 5.4.1 of the Code.
	 
	Note 4	 	In certain circumstances special certificates are required. See 5.4.4 of the Code.
	 
	Note 5	 	Transport documents associated with the carriage of cargo transport units under fumigation
must show the date of fumigation, the type and amount of the fumigant used, and give instructions
for the disposal of residual fumigant, including fumigation devices, if used. See 5.5.2 of the
Code.

 

In accordance with Commonwealth Government policy, businesses employing fewer than 20
people are invited to provide information on the time spent completing forms. If this
applies to you, please indicate the time spent completing this form:
............ mins.

Page 8 of 9

 

Page 9 of 9

 

SECTION 4

GENERAL CONDITIONS OF CONTRACT

FOR THE SUPPLY OF EQUIPMENT

AS/NZS 4911 — 2003

ANNEXURE Parts ‘A’ & ‘C’

PREAMBLE

AS/NZS 4911 – 2003 General Conditions of Contract for the Supply of Equipment Without Installation
is Section 4 of the Contract Documents.

Annexures to AS/NZS 4911 – 2003 are included herein, namely the Annexure Parts A and C. It is
deemed that the Supplier has its own copy of AS/NZS 4911 – 2003.

Copyright of the Standard Association of Australia is acknowledged in the reproduction of the whole
or any part of AS/NZS 4911 – 2003.

Page 1 of 8

 

Part A

Annexure to the

Joint Australian/New Zealand Standard

General conditions of contract for the supply of equipment without installation

AS/NZS 4911 — 2003

 

This Annexure shall be completed and issued as part of the tender documents

and, subject to any amendments to be incorporated into the Contract, is to be

attached to these General Conditions of Contract and shall be read as part of

the Contract.

	 	 	 	 	 	 	 	 	 	 	 
	Item	 	 	 	 	 	 	 	 	 	 
	1
	 	 	 	 	 	Purchaser	 	 	 	 
	 
	 	 	 	 	 	(clause 1)	 	 	 	Lihir Gold Limited
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	ARBN 069 803 998
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	ABN	 	Lihir Gold Ltd is Registered in PNG
	 
	 	 	 	 	 	 	 	 	 	 
	2
	 	 	 	 	 	Purchaser’s address	 	 	 	Lihir Gold Limited
	 
	 	 	 	 	 	 	 	 	 	P.O Box 789
	 
	 	 	 	 	 	 	 	 	 	Port Moresby
	 
	 	 	 	 	 	 	 	 	 	National Capital District 121
	 
	 	 	 	 	 	 	 	 	 	Papua New Guinea
	 
	 	 	 	 	 	 	 	 	 	 
	3
	 	 	 	 	 	Supplier	 	 	 	FLSmidth Minerals Pty. Ltd.
	 
	 	 	 	 	 	(clause 1)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	ABN	 	85 000 221 590
	 
	 	 	 	 	 	 	 	 	 	 
	4
	 	 	 	 	 	Supplier’s address	 	 	 	24 to 28 Marshall Road
	 
	 	 	 	 	 	 	 	 	 	Airport West VIC 3042
	 
	 	 	 	 	 	 	 	 	 	Australia
	5
	 	 	 	 	 	Stated purpose of the	 	 	 	Refer Contract Sections 5 & 6 – Scope of Work, and
	 
	 	 	 	 	 	Equipment	 	 	 	Technical references
	 
	 	 	 	 	 	(clause 1 – definition of	 	 	 	 
	 
	 	 	 	 	 	acceptable)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	6
	 	 	 	 	 	a) Date for delivery	 	 	 	 
	 
	 	 	 	 	 	(clause 1 and subclause	 	 	 	 
	 
	 	 	 	 	 	19.1)	 	 	 	 
	 
	 	 	 	 	 	OR	 	 	 	 
	 
	 	 	 	 	 	b) Period of time for	 	 	 	Refer Section 2, Appendix C.                                                     Final Delivery Date is 
	 
	 	 	 	 	 	delivery (clause 1 and	 	 	 	Weeks from 29th February 2008.
	 
	 	 	 	 	 	subclause 19.1)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	7
	 	 	 	 	 	Delivery Place	 	 	 	Refer to Section 2, Appendix C
	 
	 	 	 	 	 	(clause 1 and subclause	 	 	 	 
	 
	 	 	 	 	 	19.1)	 	 	 	 
	8
	 	 	 	 	 	Mode of delivery (clause	 	 	 	Refer to Section 2, Appendix C
	 
	 	 	 	 	 	1 and subclause 19.1)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	9
	 	 	 	 	 	Governing law	 	 	 	 
	 
	 	 	 	 	 	(page 4,clause 1 (h))	 	 	 	Victoria, Australia
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	If nothing stated, the law of the
jurisdiction where the delivery place is
	 
	 	 	 	 	 	 	 	 	 	located
	 
	 	 	 	 	 	 	 	 	 	 
	10
	 	 	a	)	 	Currency	 	 	 	Australian Dollars

Page 2 of 8

 

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	(page 4,clause 1 (g))	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	If nothing stated, the currency
where the delivery place is located
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	b	)	 	Place for payments	 	 	 	 
	 
	 	 	 	 	 	(page 4,clause 1 (g))	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	If nothing stated, the
Purchaser’s address
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	c	)	 	Place of business of bank	 	 	 	 
	 
	 	 	 	 	 	(page 3,clause 1 (d)-	 	 	 	 
	 
	 	 	 	 	 	definition of security)	 	 	 	If nothing stated, the place
nearest the Purchaser’s address
	 
	11
	 	 	 	 	 	Limits of quantities to be	 	 	 	Upper Limit – Not applicable
	 
	 	 	 	 	 	supplied and delivered	 	 	 	 
	 
	 	 	 	 	 	(clause 2.2)	 	 	 	Lower Limit - Not applicable
	12
	 	 	 	 	 	Supplier’s security	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	a	)	 	Form	 	 	 	 
	 
	 	 	 	 	 	(clause 3)	 	 	 	Unconditional Bank Guarantee with terms to Purchasers
	 
	 	 	 	 	 	 	 	 	 	satisfaction.
	 
	 	 	b	)	 	Amount or maximum	 	 	 	 
	 
	 	 	 	 	 	percentage of contract	 	 	 	10%, in the form of two bank guarantees of 5% each
	 
	 	 	 	 	 	sum	 	 	 	 
	 
	 	 	 	 	 	(clause 3)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	c	)	 	If retention moneys,	 	 	 	 
	 
	 	 	 	 	 	percentage to be retained	 	 	 	NIL % of the limit in Item 12(b)
	 
	 	 	 	 	 	from payment of each	 	 	 	 
	 
	 	 	 	 	 	invoice	 	 	 	If nothing stated, 10% of the limit in item 12(b)
	 
	 	 	 	 	 	(clause 3 and subclause	 	 	 	 
	 
	 	 	 	 	 	24.1)	 	 	 	 
	 
	 	 	d	)	 	Time for provision	 	 	 	 
	 
	 	 	 	 	 	(except for retention	 	 	 	Within 14 days after date of Contract signing.
	 
	 	 	 	 	 	moneys)	 	 	 	 
	 
	 	 	 	 	 	(clause 3)	 	 	 	If nothing stated, within 28 days
after date of acceptance of tender
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	e	)	 	Additional security for	 	 	 	 
	 
	 	 	 	 	 	Equipment not delivered	 	 	 	 
	 
	 	 	 	 	 	(subclauses 3.4 and 24.2)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	f	)	 	Supplier’s security upon	 	 	 	 
	 
	 	 	 	 	 	acceptance is reduced by	 	 	 	50 % of amount held
	 
	 	 	 	 	 	(subclause 3.4)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	If nothing stated, 50% of amount held
	 
	 	 	 	 	 	 	 	 	 	 
	13
	 	 	 	 	 	Purchaser’s security	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	a	)	 	Form	 	 	 	 
	 
	 	 	 	 	 	(clause 3)	 	 	 	Not applicable
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	b	)	 	Amount or maximum	 	 	 	 
	 
	 	 	 	 	 	percentage of contract	 	 	 	NIL %
	 
	 	 	 	 	 	sum	 	 	 	 
	 
	 	 	 	 	 	(clause 3)	 	 	 	If nothing stated, nil
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	c	)	 	Time for provision	 	 	 	 
	 
	 	 	 	 	 	(clause 3)	 	 	 	Not applicable
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	If nothing stated, within 28 days
after date of acceptance of tender
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	d	)	 	Purchaser’s security	 	 	 	 
	 
	 	 	 	 	 	upon acceptance is	 	 	 	Not applicable
	 
	 	 	 	 	 	reduced by (subclause	 	 	 	 
	 
	 	 	 	 	 	3.4)	 	 	 	 

Page 3 of 8

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	14
	 	 	 	 	 	Purchaser supplied	 	 	 	 	 	Document	 	No. of copies
	 
	 	 	 	 	 	documents (subclause	 	 	 	1	 	Contract	 	1
	 
	 	 	 	 	 	6.2)	 	 	 	2	 	All other documents	 	1

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	15	 	 	 	 	 	Supplier-supplied
documents
(subclause 6.3)	 	 	 	Refer to Contract Sections 5 & 6

if nothing stated 3 copies
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	16	 	 	 	 	 	Time for
Purchaser’s
direction about
documents
(subclause 6.3(c))	 	 	 	14 days
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	17	 	 	 	 	 	Subcontract work
requiring approval
(subclause 7.2)	 	 	 	All and any except that the Supplier may, without further
approval, sub-contract works up to AUD10,000 value.
	18	 	 	 	 	 	Legislative requirements,
those excepted
(subclause 10.1)	 	 	 	Nil
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	19	 	 	 	 	 	Reference date
(clause 1, subclause
10.2(b))	 	 	 	29th February, 2008
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	20	 	 	 	 	 	Insurance cover for the
Equipment to be placed
(subclause 13.1)	 	 	 	If nothing stated, then before the
Supplier commences performance of the
Contract
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	21	 	 	 	 	 	Public and Product
liability insurance,
amount per occurrence
shall be not less than
(subclause 13.2)	 	 	 	Yes
	 
	 	 	 	 	 	 	a	)	 	Is public liability	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	insurance required	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	b	)	 	If yes to (a), level	 	 	 	AUD10,000,000
	 
	 	 	 	 	 	 	 	 	 	of cover required	 	 	 	If nothing stated, then $10,000,000
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	c	)	 	Period for which	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	public liablility	 	 	 	If nothing stated, for the duration of the contract
	 
	 	 	 	 	 	 	 	 	 	cover is required	 	 	 	Yes
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	d	)	 	Is product liability	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	insurance required	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	AUD10,000,000
	 
	 	 	 	 	 	 	e	)	 	If yes to (d), level	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	of cover required	 	 	 	If nothing stated, then $10,000,000
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	f	)	 	Period for which	 	 	 	For the duration of the
Contract and thereafter for six years
	 
	 	 	 	 	 	 	 	 	 	product liability	 	 	 	If nothing stated, for six years
	 
	 	 	 	 	 	 	 	 	 	insurance is	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	required	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	22	 	 	 	 	 	Qualifying cause of
delay, causes of delay
for which EOTs will not	 	 	 	Any event

Page 4 of 8

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	be granted
(page 3, subparagraph
(b)(iii) of clause 1 and
subclause 17.2)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	23	 	 	 	 	 	Liquidated damages
(subclause 17.5)	 	 	 	For every week or part thereof adjusted on a pro-rata basis
for which any part of the Equipment is not delivered on or
before the Date for Delivery, 0.5% of contract price, capped
at 5% of the Contract price
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	24	 	 	 	 	 	Delay damages	 	 	 	 
	 
	 	 	 	 	 	 	a	)	 	other	 	 	 	Principal caused Delay
	 
	 	 	 	 	 	 	 	 	 	compensable	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	causes (page 1,	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	clause 1 and	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	subclause 17.6)	 	 	 	 
	 
	 	 	 	 	 	 	b	)	 	rate (subclause	 	 	 	AUD per day
	 
	 	 	 	 	 	 	 	 	 	17.6)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	25	 	 	 	 	 	Date for completion of
acceptance testing
(subclauses 18.1 and
21.1)	 	 	 	365 days after delivery to
site of all components

if nothing stated, 28 days commencing on
delivery
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	26	 	 	 	 	 	Party responsible for
unloading the Equipment
(subclauses 19.1)	 	 	 	Purchaser
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	27	 	 	 	 	 	When risk in the
Equipment passes
(subclauses 20.1)	 	 	 	Upon delivery as stated in Appendix C of these contract
documents
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	28	 	 	 	 	 	Time at which
ownership of the
Equipment passes to the
Purchaser
(subclause 20.2)	 	 	 	Upon the date of payment of the contract price
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	29	 	 	 	 	 	Period for
Purchaser’s
notice that Equipment is
acceptable or rejected
(subclause 21.1)	 	 	 	21 days from acceptance testing

if nothing stated, 7 days
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	30	 	 	 	 	 	Period for
Purchaser’s
notice, accepting or
rejecting Supplier’s
proposal
(subclause 21.4)	 	 	 	14 days

rif nothing stated, 7 days
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	31	 	 	 	 	 	Defects liability period
(clause 22)	 	 	 	52 weeks from acceptance or 104 weeks from final delivery,
whichever is the earlier.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	32	 	 	 	 	 	Invoice
(subclause 24.1)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	a	)	 	Time	 	for invoices	 	 	 	day of each month
	OR
	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Page 5 of 8

 

	 	 	 	 	 	 	 	 	 
	 

	 	b)
	 	Milestones for the
	 	 
	 	Refer to Section 2, Appendix A.
	 

	 	 	 	rendering of invoices	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	33

	 	 	 	Period for payment
(subclause 24.1)
	 	 	 	21 days
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	If nothing stated, 14 days
	 
	 	 	 	 	 	 	 	 
	34

	 	 	 	Equipment for which

prepayment may be
	 	 	 	Refer to Section 2, Appendix A.
	 

	 	 	 	claimed	 	 	 	 
	 

	 	 	 	(subclause 24.2)	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	35

	 	 	 	Interest rate on overdue
payments
(subclause 24.5)
	 	 	 	The current bank overdraft rate from time to time charged
on overdrafts over AUD $100,000 by the Commonwealth
Bank of Australia
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	If nothing stated, 18% per annum
	 
	 	 	 	 	 	 	 	 
	36

	 	 	 	Arbitration	 	 	 	 
	 

	 	 	 	(subclause 28.3)	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	a)
	 	Person to nominate an	 	 	 	 
	 

	 	 	 	arbitrator	 	 	 	 
	 

	 	 	 	 	 	 	 	If no-one stated, then where the
place stated in Item 9 is:
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	i)    in New Zealand, the President of the Institution of Professional Engineers New Zealand; or

	 

	 	 	 	 	 	 	 	ii)   elsewhere, the President of the Institute of Arbitrators & mediators Australia

	 
	 	 	 	 	 	 	 	 
	 

	 	b)
	 	Rules for arbitration	 	 	 	 
	 

	 	 	 	 	 	 	 	If nothing stated,
i)    rules 5-18 of the Rules of The Institute of Arbitrators & Mediators Australia for the conduct of Commercial Arbitration’s; or

	 

	 	 	 	 	 	 	 	ii)    if one or more of the parties are national of or habitually resident in, incorporated in, or where the central management, and control is
exercised in, different countries as between the parties, then the UNCITRAL Arbitration Rules shall apply and the appointing authority shall be the person provided in Item 36(c)

	 

	 	c)
	 	Appointing Authority	 	 	 	 
	 

	 	 	 	under UNCITRAL

Arbitration Rules
	 	 	 	If nothing stated, the President of the Institute of Arbitrators & Mediators
	 
	 	 	 	 	 	 	 	 
	37

	 	 	 	The Supplier’s liability
is limited as follows
(clause 29)	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	The respective limits
apply to the sum of the
respective claims and not
to each claim.	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	a)
	 	For claims in respect of
or arising out of death or
personal injury:
	 	 	 	Unlimited
	 
	 	 	 	 	 	 	 	 
	 

	 	b)
	 	For loss of rents, income
(other than arising out of
death or personal injury)
	 	 	 	AUD$ 

If no amount specified, then $1.00

Page 6 of 8

 

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	and the opportunity to	 	 	 	 
	 
	 	 	 	 	 	earn profits and indirect	 	 	 	 
	 
	 	 	 	 	 	and consequential loss	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	c	)	 	For all other claims	 	 	 	 of the Contract Sum
	 
	 	 	 	 	 	whatsoever	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	38
	 	 	 	 	 	The Purchaser’s liability	 	 	 	 of the Contract Sum
	 
	 	 	 	 	 	is limited as follows	 	 	 	 
	 
	 	 	 	 	 	(clause 29)	 	 	 	 

Page 7 of 8

 

Part C

Annexure to the

Joint Australian/New Zealand Standard

General Conditions of contract for the supply of equipment without

installation AS/NZS 4911:2003.

 

Deletions, amendments and additions

The following clauses have been made to AS/NZS 4911:2003

     Refer to Contract Section 5 — Special Conditions of Contract

Page 8 of 8

 

Section 5

Million Ounce Plant Upgrade (MOPU) 
Project

Ball & SAG Mill Scope of Works

MOPU-1001-0A M-018SP SAG Mill Specification

MOPU-1001-0A M-019SP Ball Mill Specification

 

 

LIHIR GOLD LIMTED

EQUIPMENT SPECIFICATION NO. M018

SAG MILL GM2001

Lihir Gold Limited

G P O Box 905

BRISBANE QLD 4001                                Date:       08/05/08

	 	 	 	 	 	 	 	 	 	 	 
	REV.	 	DATE	 	BY	 	CHK	 	APPROVAL	 	DESCRIPTION
	A

	 	30/11/9
	 	PH
	 	FLL
	 	JHL/TWT
	 	Issue for Bid and Approval
	B

	 	21/2/95
	 	PH
	 	FLL
	 	JHL/TWT
	 	LMC comments incorporated — Reissue for Bid
	0

	 	28/6/95
	 	GLO
	 	PH
	 	FLL/TWT
	 	Issue for Purchase
	1

	 	8/5/08
	 	AD
	 	BN
	 	 	 	Issue for Purchase MOPU Mills

 

 

LIHIR PROJECT

EQUIPMENT SPECIFICATION NO. M018 
SAG MILL

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	1.0

	 	SCOPE
	 	 	1	 
	 

	 	1.1 Review of Footing Design
	 	 	2	 
	2.0

	 	WORK EXCLUDED
	 	 	2	 
	3.0

	 	CODES AND STANDARDS
	 	 	3	 
	4.0

	 	OPERATING AND DESIGN CONDITIONS
	 	 	3	 
	 

	 	4.1 General
	 	 	3	 
	 

	 	4.2 Performance
	 	 	4	 
	 

	 	4.3 Performance Warranty
	 	 	4	 
	 

	 	4.4 General Features
	 	 	5	 
	5.0

	 	INSPECTION AND TESTING
	 	 	5	 
	 

	 	5.1 Inspection and Testing
	 	 	5	 
	6.0

	 	PAINTING AND PROTECTIVE COATINGS
	 	 	5	 
	7.0

	 	ACCEPTANCE
	 	 	5	 
	8.0

	 	SHIPMENT
	 	 	6	 
	9.0

	 	DOCUMENTATION
	 	 	6	 
	 

	 	9.1 Supplier
	 	 	6	 

 

 

	1.0	 	SCOPE
	 
	 	 	The Supplier shall furnish all necessary materials, labor, and services for the design,
fabrication, testing, and delivery of one semi-autogenous grinding (SAG) mill in accordance
with this specification and attachments thereto.

	 	 	 	 	 	 	 	 	 
	Item	 	Qty	 	Equip. No.	 	Description
	 
	1

	 	 	1	 	 	1326-GM2001
	 	Semi-autogenous wet grinding mill, to be driven by a variable speed 32
pole 5500 kW GE synchronous motor (item 17 – to be supplied by LGL),
internal shell diameter 8530mm, effective grinding chamber length
4110mm, grate discharge, capable of rotation in either direction, complete
with shell, SG iron heads and demountable trunnions, support bearings,
base plates, sole plates designed for reverse motor rotation and to suit
inching drive, ring gear, pinion, gear guards, safety guards, all integral
pipework, trunnion liners and pinion bearings. Feed end trunnion bearing
to be 2450mm diameter x 800mm wide. Discharge and trunnion bearing to
be 2850mm diameter x 750mm wide.
	 
	 	 	 	 	 	 	 	 
	2

	 	 	1	 	 	 	 	Feed chute assembly, generally as shown on Dwg 26001008, retractable,
mounted on rail type wheels with auxiliary hydraulically operated side shift
rail wheels suitable for actuation by Purchaser’s portable Enerpac unit,
sheet metal shrouds to protect hydraulic cylinders from mud splash to be
provided. To be fitted with a hold down device to ensure that feed chute
cannot move while mill is turning.
	 
	 	 	 	 	 	 	 	 
	3

	 	 	1	 	 	 	 	Trommel Assembly, 3100 diameter by 4945 parallel length not inclusive of
the conical transition price between the trommel and the trunnion. Panels
to be 10 mm by 30 mm slot opening flat snap-in polyurethane, minimum
open area 40%. All wear areas to be substantially rubber lined; layout to
be generally as shown on vendor drawing 40001047
	 
	 	 	 	 	 	 	 	 
	5

	 	 	1	 	 	 	 	Pinion bearings lubrication system to be separate from the trunnion
lubrication system. Filters to be 10um paper element of oversize capacity.
Rexroth drawings to be approved by the Purchaser prior to commencement
of manufacturer.
	 
	 	 	 	 	 	 	 	 
	6

	 	 	1	 	 	 	 	Trunnion bearing lubrication/lift system to be identical (save for gear type
flow dividers capacity) to the Ball Mill system. The spherical seat lift
pumps are to be located at the Trunnion housings during mill erection, but
the lubrication module and oil reservoir is to be designed to facilitate
relocation of these pumps after the mill is commissioned. Lubrication
system is to incorporate cooling and low pressure filtration to 20 micron by
paper element filters prior to entry to the high pressure pump suction
compartment of the oil reservoir, generally as indicated on Rexroth/ANI
drawing No 40001076 . Standby pumps and filters to be included. All
filters and pumps to be arranged to facilitate changeout on the run. Drip
trays shall be sufficiently sloped and arranged to permit gravity drainage
into collection containers. Rexroth lubrication system drawings must be
approved by the Purchaser prior to commencement of manufacture.
	 
	 	 	 	 	 	 	 	 
	7

	 	 	1	 	 	 	 	Forged and fabricated girth gear with “T” section construction, designed to
AGMA 321.05 code, surface finish Q10. Refer data sheets for full

Page 1 of 6

 

	 	 	 	 	 	 	 	 	 
	Item	 	Qty	 	Equip. No.	 	Description
	 
	 

	 	 	 	 	 	 	 	technical details.
	 
	 	 	 	 	 	 	 	 
	8

	 	 	1	 	 	 	 	Pinion, forged, gas carburised, designed to AGMA 321.05 code, Quality
Q12. Refer data sheets for full details.
	 
	 	 	 	 	 	 	 	 
	9

	 	1 Set
	 	 	 	Trunnion seals, double lip/labyrinth type, as shown on drawing X10129M
as Alternate 1.
	 
	 	 	 	 	 	 	 	 
	11

	 	1 Lot
	 	 	 	Rubber mill liner backing, 6mm thick, shop installed prior to shipment.
	 
	 	 	 	 	 	 	 	 
	12

	 	 	1	 	 	 	 	Clutch, Eaton Airflex, dual 60 VC
1600. Pinion half driving flange to be
assembled to pinion shaft prior to pinion shipment from gear cutters.
Motor half driving flange to be forwarded to motor manufacturers for
matching to motor shaft.
	 
	 	 	 	 	 	 	 	 
	13

	 	1 Lot
	 	 	 	Inching device, Rexroth hydraulics with gearbox of 158:1 ratio, Kirk key
interlocks, control panel, safety guards, designed to suit both SAG and Ball
Mills. Sole plates for SAG and Ball Mills to be designed to accept the
inching device.
	 
	 	 	 	 	 	 	 	 
	14

	 	1 Lot
	 	 	 	Gear spray system, air operated, to suit Fuchs recommended or equivalent
gear lubricant drawn from 200 litre drums. Gear spray nozzles to be
mounted on a swingaway hinged panel on the gear guard with flexible hose
connections to the distributor block. Timer cycle to be adjustable. To be
supplied complete with controls, control panel and alarms.
	 
	 	 	 	 	 	 	 	 
	15

	 	1 Lot
	 	 	 	Mill load measuring system, utilising dual load cells mounted below feed
end trunnion housing, complete with all required circuitry.
	 
	 	 	 	 	 	 	 	 
	20

	 	1 Lot
	 	 	 	Fixtures or lifting Lugs for erection and maintenance.
	 
	 	 	 	 	 	 	 	 
	21

	 	1 Lot
	 	 	 	Shop painting of mill components to LGL specifications.
	 
	 	 	 	 	 	 	 	 
	24

	 	Lot
	 	 	 	Manuals, drawing and data
	 
	 	 	 	 	 	 	 	 

	 	1.1	 	Review of Footing Design
	 
	 	 	 	Footings to support the SAG Mill in its operational mode will be designed and documented by LGL,
based on the loading data provided by the Supplier.
	 
	 	 	 	The footings will be proportioned to accommodate all mounting and clearance criteria required by the
Supplier, and also to limit amplitudes and frequencies of vibration of the combined Mill and
foundation system to acceptable levels.

	2.0	 	WORK EXCLUDED

	 	•	 	Main Mill Motor
	 
	 	•	 	Mill Liners
	 
	 	•	 	Mill Jacking cradle

Page 2 of 6

 

	 	•	 	Material unloading and storage at job site
	 
	 	•	 	Foundations, anchor bolts, and embedded steel
	 
	 	•	 	Erection labor and materials
	 
	 	•	 	Remote controls and starters for auxiliary motors
	 
	 	•	 	Electrical wiring and conduit external to mill or auxiliary systems
	 
	 	•	 	Interconnecting piping, excluding flexible hose and special fittings, external to mill or
auxiliary systems
	 
	 	•	 	Ball charge
	 
	 	•	 	Chute work ahead of the mill retractable feed chute
	 
	 	•	 	Discharge chute (excluding items integral with the mill)
	 
	 	•	 	Supports for stationary components associated with the oversize return system.
	 
	 	•	 	Mill liner handler
	 
	 	•	 	Lubricants other than initial lubricants required for assembly and testing
	 
	 	•	 	Structural steel supports, walkways, stairs, and platforms

	3.0	 	CODES AND STANDARDS

	 	 	 	SAA            Standards Association of Australia
	 
	 	 	 	PNG            Papua New Guinea Codes and Regulations
	 
	 	 	 	AGMA         American Gear Suppliers Association
	 
	 	 	 	ANSI           American National Standards Institute
	 
	 	 	 	ASME         American Society of Mechanical Engineers
	 
	 	 	 	AWS           American Welding Society
	 
	 	 	 	ASTM         American Society of Testing and Materials
	 
	 	 	 	Work under this specification shall be performed in accordance with the above referenced
codes and standards. In instances where national codes do not exist, materials and
workmanship shall follow the prevailing manufacturing industry standards for semi-autogenous
grinding mills.

	4.0	 	OPERATING AND DESIGN CONDITIONS

	 	4.1	 	General

	 	 	 	The equipment will be installed outdoors and shall be designed to operate 24 hours
per day, 7 days per week, 365 days per year. The Supplier shall identify in his
proposal all special requirements for outdoor operation in a tropical climate.

	 
	 	 	 	The grinding system will consist of one SAG mill followed by one Ball mill. The SAG
mill will operate in closed circuit with an integral trommel system. Trommel
oversize will discharge to the pebble crusher feed conveyor. Trommel undersize will
report by gravity to a Ball mill cyclone feed

Page 3 of 6

 

	 	 	 	 sump.    The Ball mill will operate in closed circuit with a cluster of cyclone classifiers.
Provision will be made for a portion of cyclone underflow to be recycled to the SAG mill
feed if required.
	 
	 	 	 	The ultimate capacity of the grinding system is 600 dry tph metric, which is the new feed
rate to the SAG mill. This design capacity includes a 92% mechanical availability
allowance.
	 
	 	 	 	The detail design and construction requirements for the SAG mill components and gearing
are specified in Appendix B and Appendix C.

	 	4.2	 	Performance

	 	 	 	The SAG mill receives primary crusher discharge as follows:

	 	 	 	 	 
	Ore specific gravity
	 	 	2.78	 
	 
	Ore dry bulk density, t/m3
	 	 	1.4	 
	 
	Ore feed rate, dry t/h
	 	 	600	 
	 
	Feed size, 80% passing, mm
	 	 	150	 
	 
	Feed size, maximum, mm
	 	 	400	 
	 
	Product size, 80% passing, microns
(trommel undersize)
	 	 	1,200	 
	 
	Slurry density mill discharge, % solids
	 	 	65	 

	 	 	 	The mill is estimated to be capable of drawing the 5500 kW at the pinion at 75% of
critical speed with a 12 to 15% or greater ball charge and a total charge of 28%.

	 
	 	 	 	The mill should be able to operate at the design conditions (10% ball charge, 28% total
charge) in the speed range of 50% to 75% of critical speed over the full wear life of the
liners. For the 75% to 85% speed range the mill should be able to operate at maximum power
but possibly with reduced ball charge.

	 	4.3	 	Performance Warranty

	 	 	 	The SAG Mill is mechanically and structurally capable of drawing 5,500 kW.
	 
	 	 	 	Process Performance:
	 
	 	 	 	The Supplier warrants the following:
	 
	 	 	 	That the 28’ x 14.5’ SAG mill will draw at least 5,200 kW as measured at the motor shaft
with:

	 	-	 	Ball charge in the range of 12% to 15% at a total charge of 3 28%
	 
	 	-	 	Pulp density in the range 65 to 75% w/w
	 
	 	-	 	F80 less than or equal to 175 mm
	 
	 	-	 	Mill speed in the range 73 to 77%

	 	 	 	And provided that the following conditions are met:

	 	•	 	That the milling circuit is operated by experienced personnel
	 
	 	•	 	That all auxiliary equipment is selected, installed and operated to suit the circuit requirements.

Page 4 of 6

 

	     •	 	 	That the milling circuit is fed an ore with a specific
gravity ≥ 2.7

	 	4.4	 	General Features
	 
	 	 	 	The equipment shall be the Supplier’s standard design and of heavy-duty construction
suitable for the operating conditions specified.
	 
	 	 	 	See Appendix B, Mill Components, and Appendix C, Mill Gearing, for a more detailed
description of design and construction requirements for the mill.
	 
	 	 	 	The mill pinion shall be direct coupled with an air operated clutch to a variable speed,
11,000 volt,
5500 kW, synchronous motor. The drive will be located at the feed end of the mill, on the
left hand side when viewed from the feed end.

	5.0	 	INSPECTION AND TESTING

	 	5.1	 	Inspection and Testing
	 
	 	 	 	The Supplier will be responsible for the testing and inspection of all materials
and work in accordance with this specification and all applicable codes, laws and
regulations.
	 
	 	 	 	The Purchaser’s appointed representative shall appoint a duly authorized
inspection authority to witness all “Hold”, witness and surveillance points, fully
inspect and certify the equipment at, but not limited to, the Supplier’s works.
	 
	 	 	 	The Purchaser’s representatives shall have all reasonable access to the work
whether it is in preparation or in progress. The Supplier shall provide facilities
for such access and for inspection.
	 
	 	 	 	Inspection of the equipment by the Purchaser’s representative is required at the
following stages of fabrication:

	 	•	 	Material before start of fabrication
	 
	 	•	 	At inspection points nominated in the Inspection and Test Plan

	 	 	 	Unless otherwise specified, the Supplier shall ensure that all equipment is
thoroughly cleaned prior to painting and shipping.

	6.0	 	PAINTING AND PROTECTIVE COATINGS

	 	 	 	Upon completion of manufacture, the Supplier shall ensure that all equipment is thoroughly
cleaned prior to painting and shipping.
	 
	 	 	 	All external exposed carbon steel surfaces shall be sandblasted and painted in accordance
with FLSM STD-SP01, with colour to be advised.

	7.0	 	ACCEPTANCE

	 	 	 	The Purchaser’s inspectors or delegates shall have the authority to require repairs or
alterations if in their opinion materials or workmanship do not meet the required
specification.
	 
	 	 	 	Any omission or failure on the part of the Purchaser’s inspector or delegate to disapprove
or reject any work or

Page 5 of 6

 

	 	 	 	materials shall not be construed as an acceptance of any defective work or materials.
	 
	 	 	 	The SAG Mill shall not be delivered by the Supplier until approval has been received from
the Purchaser.

	8.0	 	SHIPMENT

	 	 	 	Bolts, nuts, and other small parts shall be boxed for shipment.
	 
	 	 	 	Gaskets furnished by the Supplier shall be suitably boxed and marked for field installation.
	 
	 	 	 	The SAG Mill and various assemblies shall be loaded and shipped in such a manner as to
ensure delivery without damage.
	 
	 	 	 	See procurement document for marking and packaging requirements.

	9.0	 	DOCUMENTATION

	 	9.1	 	Supplier
	 
	 	 	 	Information to be submitted by the Supplier to Purchaser or Purchaser’s
representative after award of contract shall include, but not be limited to:

	 	•	 	All drawings, welding procedures and other documents for Purchaser’s approval
prior to fabrication. Purchaser’s review will be of general design and
controlling dimensions only and will not relieve the Supplier of
responsibility for design and accuracy of details or dimensions.

	 
	 	•	 	Copies of all correspondence to and from government authorities in reference
to the equipment.
	 
	 	•	 	Procedures for:

	 	-	 	Qualification and certification of welders
	 
	 	-	 	Welding
	 
	 	-	 	Welding inspection
	 
	 	-	 	Inspection and testing

	 	•	 	Records of welding procedure qualification, welder qualification, inspections
and tests.
	 
	 	•	 	Copies of bills of materials.

Page 6 of 6

 

LIHIR GOLD LIMITED

EQUIPMENT SPECIFICATION NO. M019

BALL MILL GM2002

Lihir Gold Limited

G P O Box 905

BRISBANE QLD  4001                                Date:      8/5/08

	 	 	 	 	 	 	 	 	 	 	 
	REV.	 	DATE	 	BY	 	CHK	 	APPROVAL	 	DESCRIPTION
	A

	 	1DEC94
	 	PH
	 	FLL
	 	TWT
	 	ISSUE FOR BID AND APPROVAL
	B

	 	16FEB95
	 	PH
	 	FLL
	 	TWT	 	 
	0

	 	20JUN95
	 	GLO
	 	PH
	 	 	 	ISSUE FOR PURCHASE
	1

	 	8MAY08
	 	AD
	 	BN
	 	 	 	ISSUE FOR PURCHASE MOPU MILLS

 

CONTENTS

	 	 	 	 	 	 	 
	SECTION	 	PAGE	 
	1.0
	 	SCOPE	 	 	1	 
	1.2
	 	Review of Footing Design	 	 	3	 
	2.0
	 	WORK EXCLUDED	 	 	3	 
	3.0
	 	CODES AND STANDARDS	 	 	4	 
	4.0
	 	OPERATING AND DESIGN CONDITIONS	 	 	4	 
	4.1
	 	General	 	 	4	 
	4.2
	 	Performance	 	 	4	 
	4.3
	 	Performance Warranty	 	 	5	 
	4.4
	 	General Features	 	 	5	 
	5.0
	 	INSPECTION AND TESTING	 	 	5	 
	5.1
	 	Inspection and Testing	 	 	5	 
	5.2
	 	Cleaning	 	 	5	 
	6.0
	 	PAINTING AND PROTECTIVE COATINGS	 	 	5	 
	7.0
	 	ACCEPTANCE	 	 	6	 
	8.0
	 	SHIPMENT	 	 	6	 
	9.0
	 	DOCUMENTATION	 	 	6	 
	9.1
	 	Supplier	 	 	6	 

 

 

	1.0	 	SCOPE

	 	1.1	 	The Supplier shall furnish all necessary materials, labor and services for the
design, fabrication, testing and delivery of one ball mill in accordance with this
specification and attachments thereto.

	 	 	 	 	 	 	 	 	 
	Item	 	Qty.	 	Equip. No.	 	Description
	1

	 	 	1	 	 	1326-GM2002
	 	Ball Mill, wet overflow type, to be driven by a
fixed speed 32 pole 4800 kW GE synchronous
motor (motor supplied by LGL), inside diameter
of shell 5490mm, effective grinding chamber
length 9750mm, complete with shell, SG iron
heads with integral trunnions, trunnion bearings,
baseplates, sole plate with provision made for
inching drive attachment, ring gear, pinion and
pinion bearings, gear guards fitted with heating
devices and appropriate cleanout doors, all
integral pipework and trunnion liners. Feed and
discharge bearings to be 2450mm diameter by
800mm wide.
	 
	 	 	 	 	 	 	 	 
	2

	 	 	1	 	 	 	 	Feed chute assembly, to incorporate trunnion
liner removal facilities and interlocks to prevent
mill rotation while chute is attached to the liner
while the liner is still attached to the mill;
mounted on four rail type wheels with four
auxiliary side shift rail wheels which may be
lowered hydraulically using the Purchaser’s
portable Enerpac pump unit. Sheet metal shrouds
to be fitted over the hydraulic cylinders to protect
against mud splash, etc. To be provided with a
locking device to ensure that carriage cannot
move while mill is turning.
	 
	 	 	 	 	 	 	 	 
	3

	 	 	1	 	 	 	 	Trommel assembly, 2400mm (nom) diameter by
3000mm (nom) parallel length, not inclusive of
the conical transition piece between the trommel
and the trunnion. Panels to be 6mm square
opening snap-in flat rigid polyurethane.
Trommel to include a scats discharge system
(mechanism to be determined). All steel surfaces
subject to abrasive wear to be substantially
rubber lined.
	 
	 	 	 	 	 	 	 	 
	4

	 	Lot
	 	 	 	Discharge Trunnion liners to be Skega type with
stud fixing. Transition piece liners between
trunnion and trommel to be Skega rubber
segments with T-Bolt fixing with the nuts
accessible from outside the mill. Rubber spirals
in trommel and trunnion to be “knock-in” type.
	 
	 	 	 	 	 	 	 	 
	5

	 	 	1	 	 	 	 	Pinion bearings lubrication system to be separate
from the trunnion lubrication system. Filters to
be 20μm paper element of oversize capacity.
Rexroth drawings to be approved by the
Purchaser prior to commencement of
manufacture.

Page 1 of 6

 

	 	 	 	 	 	 	 	 	 
	Item	 	Qty.	 	Equip. No.	 	Description
	6

	 	 	1	 	 	 	 	Trunnion bearings lubrication/lift system to be
identical (save for the gear type rotary flow
dividers capacity) to the SAG mill system. The
spherical seat lift pumps are to be located at the
trunnion housings during mill erection, but the
lubrication module and oil reservoir is to be
designed to facilitate relocation of these pumps
after the mill is commissioned. The lubrication
system is to incorporate cooling and low pressure
filtration to 20μm by paper element filters prior
to entry into the high pressure pump suction
compartment of the oil reservoir. Standby pumps
and filters are included. Drip trays to be
sufficiently sloped and arranged to permit gravity
drainage into collection containers. All Rexroth
drawings must be approved by the Purchaser
prior to commencement of manufacture.
	 
	 	 	 	 	 	 	 	 
	7

	 	 	1	 	 	 	 	Forge and fabricated “T” Section Girth gear,
designed to AGMA 321.05 code, surface finish
Q10. Refer data sheets for full technical details.
	 
	 	 	 	 	 	 	 	 
	8

	 	 	1	 	 	 	 	Pinion, forged, gas carburised, shaft extension to
suit connection of inching drive, Kirk key
interlocks, etc, designed to AGMA 321.05 code,
surface finish Q12. Refer data sheets for full
details.
	 
	 	 	 	 	 	 	 	 
	9

	 	1 set
	 	 	 	Trunnion seals, double lip/labyrinth type,.
	 
	 	 	 	 	 	 	 	 
	11

	 	1 lot
	 	 	 	Mill Rubber Lining, 6mm thick, shop installed
prior to shipment.
	 
	 	 	 	 	 	 	 	 
	12

	 	 	1	 	 	 	 	Clutch, Eaton Airflex, dual 60 VC 1600. Pinion
half driving flange to be fitted to matched to
pinion shaft prior to pinion shipment from gear
cutters. Motor half driving flange to be
forwarded to motor manufacturers for matching
to motor shaft.
	 
	 	 	 	 	 	 	 	 
	13

	 	 	1	 	 	 	 	Pinion shaft and sole plate to be designed to
accept Inching device.
	 
	 	 	 	 	 	 	 	 
	14

	 	1 lot
	 	 	 	Gear spray system, air operated, to suit Fuchs
recommended or equivilant gear lubricant drawn
from 200 litre drums. Gear spray nozzles to be
mounted on a swingaway hinged panel on the
gear guard, with flexible hose connections to the
distributor block. Timer cycle to be adjustable.
To be supplied with all controls, control panel
and alarms.
	 
	 	 	 	 	 	 	 	 
	18

	 	1 Lot
	 	 	 	Fixtures or Lifting Lugs required for erection
and maintenance
	 
	 	 	 	 	 	 	 	 
	19

	 	1 lot
	 	 	 	Shop painting of mill components to
LGL Specifications.
	 
	 	 	 	 	 	 
	22

	 	Lot
	 	 	 	Manuals, drawings and data.

Page 2 of 6

 

	 	1.2	 	Review of Footing Design

Footings to support the Ball Mill in its operational mode will be designed and documented by
LGL, based on the loading data provided by the Supplier.

The footings will be proportioned to accommodate all mounting and clearance criteria required
by the Supplier, and also to limit amplitudes and frequencies of vibration of the combined Mill and
foundation system to acceptable levels.

Copies of calculations and associated foundation details illustrating the proposed footing
arrangement, together with relevant geotechnical data will be forwarded to the Supplier for his
review, to ensure that the LGL design has correctly incorporated all the Vendor Data supplied, and
that the Mill footing, as proposed, is suitable for the expected performance of the Ball Mill.

	2.0	 	WORK EXCLUDED

Main Mill Motor

Mill Liners

Mill Jacking cradle

Foundations, anchor bolts and embedded steel.

Structural steel supports, walkways, platforms, stairs.

Erection labor and materials.

Motor starters and switchgear.

Electrical wiring and conduit external to mill or auxiliary equipment.

Supply and installation of piping between ball mill trunnion and pinion bearings and packaged
lubrication systems.

Gear lubrication system air supply.

Mill liner handler.

Inching Device.

Feed chute to mill feed spout.

Discharge sump.

Grinding media.

Lubricants other than initial charge for assembly and testing.

Page 3 of 6

 

	3.0	 	CODES AND STANDARDS

	 	 	 	 	 
	 

	 	SAA
	—	Standards Association of Australia
	 

	 	PNG
	—	Papua New Guinea Codes and Regulations
	 

	 	AGMA
	—	American Gear Manufacturers Association
	 

	 	ANSI
	—	American National Standards Institute
	 

	 	ASME
	—	American Society of Mechanical Engineers
	 

	 	ASTM 
	—	American Society for Testing and Materials
	 

	 	AWS
	—	American Welding Society

Work under this specification shall be performed in accordance with the above referenced codes and
standards. In instances where national codes do not exist, materials and workmanship shall follow
the prevailing industry standards for ball mills.

	4.0	 	OPERATING AND DESIGN CONDITIONS

	 	4.1	 	General

The equipment will be installed outdoors and designed to operate 24 hours per day, 7 days per week,
365 days per year. The Supplier shall identify in his proposal all special requirements for
outdoor operation of the equipment in a tropical climate.

The feed to the ball mill circuit will enter the mill discharge sump and shall be the discharge
product of one SAG Mill operated in open circuit.

	 	 	 	 	 
	 

	 	Ore specific gravity (avg)
	 	2.78 
	 

	 	Circuit feed rate
	 	600 t/h (dry)
	 

	 	Circuit feed size
	 	80% passing 1200 microns
	 

	 	Circuit product size
	 	80% passing 130 microns
	 

	 	Bond Ball Mill Work Index
	 	15.3 (metric ton basis)
	 

	 	Slurry ph
	 	4.5 to 8 
	 

	 	Slurry density % solids
	 	65 
	 

	 	NOTE: 1 t = 1000 kg	 	 

	 	4.2	 	Performance

The desired final product (ball mill cyclone overflow) is a slurry at 80% minus
130 microns (150 Tyler mesh). Pulp density of mill discharge is estimated to be
65-70% solids. Cyclone overflow is estimated to be 25-30% solids.

The Ball Mill will be operated in closed circuit with cyclone classifiers. At
normal operating conditions, new feed to the mill will be 600 t/h (dry) with 35%
ball charge and a circulating load of 200-300%.

	 	4.3	 	Performance Warranty

Note: The Ball Mill is mechanically and structurally capable of drawing 4,800 kW.

Process Performance:

The Supplier warrants the following:

That the 18’ x 32’ ball mill will draw at least 4,400 kW as measured at the motor shaft
with:

	 	-	 	Ball Charge in the range 32 to 35%
	 
	 	-	 	Pulp Density in the range 65 to 75% w/w

Page 4 of 6

 

	 	-	 	Seasoned equilibrium ball charge with a top size
3 60mm

And provided that the following conditions are met:

	 	-	 	That the milling circuit is operated by experienced personnel
	 
	 	-	 	That all auxiliary equipment is selected, installed and
operated to suit the circuit requirements.
	 
	 	-	 	That the milling circuit is fed an ore with a specific
gravity 3 2.7

	 	4.4	 	General Features

The equipment shall be the Supplier’s standard design and of heavy duty
construction suitable for the operating conditions specified.

The mill pinion shall be direct driven through an air clutch by a low speed
synchronous motor.

The drive shall be at the feed end of the mill. The drive shall be located on the
right side when viewed from the feed end.

	5.0	 	INSPECTION AND TESTING

	 	5.1	 	Inspection and Testing

The Supplier will be responsible for the testing and inspection of all
materials and work in accordance with this specification and all applicable
codes, laws and regulations.

The Purchaser’s appointed representative shall appoint a duly authorized
inspection authority to witness all “Hold”, witness and surveillance points,
fully inspect and certify the equipment at, but not limited to, the Supplier’s
works.

The Purchaser’s representatives shall have all reasonable access to the work
whether it is in preparation or in progress. The Supplier shall provide
facilities for such access and for inspection.

Inspection of the equipment by the Purchaser’s representative is required at
the following stages of fabrication:-

	 	•	 	Material before start of fabrication
	 
	 	•	 	At inspection points nominated in the Inspection and Test Plan

Unless otherwise specified, the Supplier shall notify the Purchaser 96 hours in
advance of its readiness for each of the above stages.

	 	5.2	 	Cleaning

Upon completion of testing, the Supplier shall ensure that all equipment is
thoroughly cleaned prior to painting and shipping.

	6.0	 	PAINTING AND PROTECTIVE COATINGS

Upon completion of manufacture, the Supplier shall ensure that all equipment is
thoroughly cleaned prior to painting and shipping.

All external exposed carbon steel surfaces shall be sandblasted and painted in accordance
with FLSM STD-

Page 5 of 6

 

SP01, with colour to be advised.

	7.0	 	ACCEPTANCE

The Purchaser’s inspectors or delegates shall have the authority to require repairs or
alterations if in their opinion materials or workmanship do not meet the required
specification.

Any omission or failure on the part of the Purchaser’s inspector or delegate to
disapprove or reject any work or materials shall not be construed as an acceptance of any
defective work or materials.

The Ball Mill shall not be delivered by the Supplier until approval has been
received from the Purchaser.

	8.0	 	SHIPMENT

Bolts, nuts and other small parts shall be boxed for shipment.

Gaskets furnished by the Supplier shall be suitably boxed and marked for field installation.

The Ball Mill and various assemblies shall be loaded and shipped in such a manner
as to ensure delivery without damage.

See procurement document for marking and packaging requirements.

	9.0	 	DOCUMENTATION

	 	9.1	 	Supplier

Information to be submitted by the Supplier to Purchaser or Purchaser’s
Representative after award of contract shall include, but not be limited to:

	 	•	 	All drawings, design calculations, welding procedures and other
documents for Purchaser’s approval prior to fabrication. Purchaser’s
review will be of general design and controlling dimensions only and
will not relieve the Supplier of responsibility for design and
accuracy of details or dimensions.
	 
	 	•	 	Copies of all correspondence to and from government authorities in
reference to the equipment.
	 
	 	•	 	Procedures for:

	 	_	 	Qualification and certification of welders
	 
	 	_	 	Welding
	 
	 	_	 	Welding inspection
	 
	 	_	 	Inspection and testing

	 	•	 	Records of welding procedure qualification, welder
qualification, inspections and tests.
	 
	 	•	 	Copies of bills of materials

Page 6 of 6

 

Section 6

Million Ounce Plant Upgrade (MOPU)

Project

Ball & SAG Mill Technical Reference

MOPU-1001-0A M-018ANI SAG Mill Technical Sheet

MOPU-1001-0A M-019ANI Ball Mill Technical Sheet

 

 

SAG MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	General
	 	 
	Mill Type:
	 	 
	Diameter Inside Shell
	 	mm
	Shell Length, Flange to Flange
	 	mm
	Grinding Chamber Length
	 	mm
	Volume Inside Liners
	 	m3
	Mill Operating Speed
	 	rpm
	Percent of Criticial speed (new liners):
	 	 
	Power Required with New liners at Design Ore & Media Charge
	 	 
	Head Outside Diameter
	 	mm
	Feed end Trunnion Min. I.D. with Liners
	 	mm
	Discharge End Trunnion I.D. with Liners
	 	mm
	Mill Drive
	 	 
	Recommended
Motor Rating, kW/RPM, Service Factor 
	 	kW/rpm
	
Drive Arrangement — Gear Position
	 	 
	Loaded mill WR2
	 	kgm2
	 
	 	 
	Design Data
	 	 
	Finite Element Stress Analysis Method
	 	 
	Stress Analysis Method Developed by Whom?
	 	 
	Independent Review of Stress Analysis Method by Whom?
	 	 
	Extent Field Verification of Stress Analysis Method
	 	 
	Design Total Charge, % Mill Volume
	 	%
	Design Ball Charge, % Mill Volume
	 	5
	Mill Design Life Expectancy
	 	Yrs
	Shell Design
	 	 
	No. of Shell Sections
	 	 
	Shell
	 	 

Page 1 of 13

 

SAG MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Material (ASTM No.)
	 	 
	Design Stress
	 	MPa
	Max Thickness
	 	mm
	Location of Max. Thickness
	 	 
	Min. Thickness
	 	mm
	Location of Min. Thickness
	 	 
	Shell Length, Flange to Flange
	 	mm
	Shell Weight
	 	kg
	Circumferential Flanges
	 	 
	Material (ASTM No.)
	 	 
	Design Stress
	 	MPa
	Thickness
	 	mm
	Outside Diameter
	 	mm
	Bolt Circle Diameter
	 	mm
	Quantity and Size of Fasteners Per Head
	 	mm
	Axial Flanges
	 	 
	Material (ASTM No.)
	 	 
	Design Stress
	 	MPa
	Thickness
	 	mm
	Head and Trunnion Design
	 	 
	Heads
	 	 
	Type
	 	 
	Material (ASTM No.)
	 	 
	Design Stress
	 	MPa
	Fabrication Method
	 	 
	Angle
	 	degrees
	No. of Pieces/Assembly Method
	 	 
	 
	 	 
	Thickness: (max/Min)
	 	 
	at Trunnion/Head Interface
	 	mm

Page 2 of 13

 

SAG MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	at Shell/head Interface
	 	mm
	Outside diameter
	 	mm
	Bolt Circle Diameter
	 	mm
	Flange Thickness
	 	mm
	Quantity and Size of Fasteners Head/Trunnion
	 	mm
	Overall Length
	 	mm
	Weight each
	 	kg
	Trunnions
	 	 
	Type
	 	 
	Material (ASTM No.)
	 	 
	Design Stress
	 	MPa
	Fabrication Method
	 	 
	Thickness (Max/Min)
	 	 
	at Knuckle Radius
	 	mm
	at Shell/head Interface
	 	 
	at Bearing Surface
	 	mm
	Flange O.D.
	 	mm
	Flange Bolt Fasteners
	 	 
	Quantity and Size of Fasteners
	 	 
	Overall Length
	 	mm
	Weight
	 	kg
	Mill Support Bearing Assemblies
	 	 
	Type and Location
	 	 

	 	 	 
	Journal
	 	 
	Diameter
	 	mm
	Length
	 	mm
	Projected Area
	 	m2
	Thrust Face Area
	 	 

	 	 	 
	Pressure with Max. Load
	 	 
	Feed End
	 	kPa
	Discharge end
	 	kPa
	Thrust
	 	kPa

Page 3 of 13

 

SAG MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Self-Aligning Method
	 	 
	Thermally Stress Relived?
	 	 
	Type of Seals
	 	 
	Bearing Inserts
	 	 
	Type: Tilting Pad/Sleeve/Other (Specify)
	 	 
	Mounted on Riding Ring or Trunnion
	 	 
	Material
	 	 
	Thickness
	 	mm
	Pad Length/Width/Thickness
	 	mm
	No. Per Bearing
	 	 
	Contact Angle w/Journal
	 	degrees
	Bearing Weight each
	 	kg
	Means of Holding Bearing Aligned on Baseplates
	 	 
	 
	 	 
	Temperature Detectors
	 	 
	Type
	 	 
	No. Per Bearing
	 	 
	Alarm Temperature
	 	oC
	Shutdown Temperatue
	 	oC
	Mill Support Bearing Lube System
	 	 
	Supplier
	 	 
	Type
	 	 
	No. of Systems/Mill
	 	 
	 
	 	 
	Pumps: High Pressure pockets/ HP thrust and flood/Low
Pressure conditioning/ HPSpherical Seats
	 	 
	Type
	 	 
	Rating
	 	 
	Flow rate
	 	l/s
	Pressure
	 	kPa

Page 4 of 13

 

SAG MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Motor Power
	 	kW
	No. per Lube System
	 	 
	Operating/Standby
	 	 
	Excess Capacity
	 	 
	High Pressure
	 	%
	Low Pressure
	 	%
	Thrust
	 	 
	Heat Exchanger
	 	 
	Type
	 	 
	Cooling
	 	l/s /kPa
	No. per Lube System
	 	 
	Oil Filter
	 	 
	Type
	 	 
	Size
	 	Microns
	No. per Lube System
	 	 
	Operating/Standby
	 	 
	Oil Heaters
	 	 
	Type
	 	 
	Rating
	 	kW
	No. per Lube System
	 	 
	Operating/Standby
	 	kg
	Lube system Weight, empty/filled
	 	kg
	 
	 	 
	Pinion Bearing Lube System
	 	 
	Supplier
	 	 
	No. of Systems per Mill
	 	 
	Pumps
	 	 
	Type
	 	 
	Flow rate
	 	l/s

Page 5 of 13

 

SAG MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Pressure
	 	kPa
	Motor Power
	 	kW
	No. per Lube System
	 	 
	Operating/Standby
	 	 
	Heat Exchanger
	 	 
	Type
	 	 
	Cooling Water Req’d
	 	l/s / kPa
	Oil Filter
	 	oC
	Type
	 	 
	Size
	 	Microns
	No. per Lube System
	 	 
	Operating/Standby
	 	 
	Oil Heater
	 	 
	Type
	 	 
	Rating
	 	kW
	No. per Lube System
	 	 
	Operating/Standby
	 	 
	Weight, empty/filled
	 	kg
	Feed Spout
	 	 
	Type
	 	 
	Material
	 	 
	Thickness
	 	mm
	Liner Material/Thickness
	 	mm
	Opening Dimensions
	 	mm
	Seal Type
	 	 
	Weight
	 	kg
	Trommel
	 	 
	Type
	 	 
	Material
	 	 
	Thickness
	 	mm
	Outside Diameter x Length
	 	mm

Page 6 of 13

 

SAG MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Opening Size
	 	mm
	Diameter Inside Spiral
	 	mm
	Weight
	 	kg
	Ring and Pinion Gear Lube System
	 	 
	Type
	 	 
	Lubricant
	 	 
	Air Requirements: (Free air) 15 min Cycles
	 	l/s / kPa
	Weight
	 	kg
	Air Clutch
	 	 
	Supplier
	 	 
	Type
	 	 
	Model
	 	 
	Torque
	 	 
	Operating at 690 kPa
	 	Nm
	Maximum at 860 kPa
	 	Nm
	Service factor
	 	 
	Air Requirement: (Free Air) per engagement
	 	l/s / kPa
	Locking Device
	 	 
	Weight Each
	 	kg
	Liners
	 	 
	Shell
	 	 
	Type
	 	 
	Material
	 	 
	Liners (cont’d)
	 	 
	Thickness, min/max
	 	mm
	Liner Bolt Type, size
	 	mm
	Backing Material/Thickness
	 	mm
	Weight
	 	kg
	Feed Head
	 	 
	Type
	 	 
	Material
	 	 
	Thickness
	 	mm

Page 7 of 13

 

SAG MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Liner Bolt Type, size
	 	mm
	Backing Material/Thickness
	 	mm
	Weight
	 	kg
	Discharge Head
	 	 
	Type
	 	 
	Material
	 	 
	Thickness
	 	mm
	Slot size
	 	mm
	Open Area
	 	 
	Weight
	 	kg
	Feed Trunnion Liner
	 	 
	Type
	 	 
	Material
	 	 
	Thickness
	 	mm
	Diameter
	 	mm
	Seal
	 	 
	Weight
	 	kg
	Discharge Trunnion Liner
	 	 
	Type
	 	 
	Material
	 	 
	Thickness
	 	mm
	Discharge Trunnion Liner (cond’t)
	 	 
	Diameter
	 	mm
	Seal
	 	 
	Weight
	 	kg
	Jacking System
	 	 
	Jack Size
	 	Tonne
	Quantity
	 	 
	Hydraulic Power Package
	 	 
	Motor Rating
	 	kW
	Motor Speed
	 	rpm

Page 8 of 13

 

SAG MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Cradles, describe
	 	 
	
Gear Set
	 	 
	Normal diametral pitch
	 	 
	Normal pressure angle
	 	degrees
	Helix angle
	 	degrees
	Transverse pressure angle
	 	degrees
	Maximum allowable misalignment
	 	 
	Axial runout
	 	mm
	Radial runout
	 	mm
	Efficiency
	 	%
	Ring Gear
	 	 
	Supplier
	 	 
	Fabrication Supplier
	 	 
	Material
	 	 
	Type/No. of teeth
	 	 
	Hardness
	 	 
	Hardening method
	 	 
	Tooth cutting process
	 	 
	Design life expectancy
	 	Yrs
	Tooth form
	 	 
	Tip relief
	 	 
	Face width
	 	mm
	Outside diameter
	 	mm
	Pitch diameter
	 	mm
	Root diameter
	 	mm
	Speed
	 	rpm
	Durability service factor
	 	 
	Strength service factor
	 	 
	No.of sections
	 	 
	Weight, each section
	 	 
	Weight, total
	 	kg

Page 9 of 13

 

SAG MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Pinion

	 	 
	
Supplier
	 	 
	Forger
	 	 
	Material
	 	 
	Type/No. of Teeth
	 	 
	Hardness
	 	 
	Hardening method
	 	 
	Tooth cutting process
	 	 
	Design Life expectancy
	 	Yrs
	Tooth form
	 	 
	Tip relief
	 	 
	Face width
	 	mm
	Outside diameter
	 	mm
	Pitch diameter
	 	mm
	Root diameter
	 	mm
	Speed
	 	rpm
	Durability service factor
	 	 
	Strength service factor
	 	 
	No. of sections
	 	 
	Weight
	 	kg
	Pinion Shaft Bearings
	 	 
	Type
	 	 
	Supplier
	 	 
	Size
	 	 
	B-10 Life
	 	hrs
	Seal Type
	 	 
	Lubrication
	 	 

	 	 	 	 
	Quality Level
	 	 	 
	Overall
	 	 	 
	Pitch
	 	 	 
	Profile
	 	 	 
	Runout
	 	 	 
	Lead
	 	 	 

Page 10 of 13

 

SAG MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Instruments. Describe how quality levels are checked and
instruments used.
	 	 
	Weights and Sizes (for Gear & Pinion only)
	 	 
	Shipping
	 	 
	Total shipping wt.,
	 	kg
	Total shipping volume
	 	m3
	Largest piece (identify)
	 	 
	Size of Largest piece
	 	m
	Heaviest piece (identify)
	 	 
	Weight of heaviest piece
	 	kg
	Total number of shipping pieces
	 	 
	Installed unit weights
	 	 
	Ring gear
	 	kg
	Pinion and shaft
	 	kg
	 
	 	 
	Heaviest piece for erection
	 	 
	DE Trunnion
	 	kg
	Pinion and shaft
	 	kg
	Inching Drive
	 	 
	Type
	 	 
	Supplier
	 	 
	Speed
	 	rpm
	Mill inching speed
	 	rpm
	Motor rating
	 	kW/ rpm
	Gear Reducer
	 	 
	Supplier
	 	 
	Model No.
	 	 
	Ratio
	 	 
	Service factor
	 	 
	Gear Reducer (cont’d)
	 	 

Page 11 of 13

 

SAG MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Bearing type B-10 Life
	 	hrs
	Seal Type
	 	 
	Lubrication
	 	 
	Couplings model/torque rating
	 	 
	High speed
	 	rpm
	Low speed

	 	 
	Kirk key interlocks
	 	 
	Installed operating weight
	 	kg
	Outdoor Installation
	 	 
	 
	 	 
	Weights and Sizes Shipping (excluding gears)
	 	 
	Total Shipping Weight
	 	 
	Total Shipping Volume
	 	 
	Largest Piece (identify)
	 	 
	Size of Largest Piece
	 	m
	Heaviest Piece (identify)
	 	 
	Weight of Heaviest Piece
	 	kg
	Total No. of Shipping Packages
	 	 
	Installed Weight (excluding gears)
	 	 
	Mill without Liner
	 	kg
	Mill with Liners
	 	kg
	Mill Total c/w Oper. Max Load 37% B.C. =
	 	kg

Page 12 of 13

 

SAG MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Heaviest Piece (excluding gear)
	 	 
	Erection
	 	 
	Identify Component
	 	 
	Weight
	 	kg
	Maintenance
	 	 
	Identify Component
	 	 
	Weight
	 	kg
	Painting and Finish
	 	 
	Surface Preparation
	 	 
	Prime Coat
	 	 
	Material
	 	 
	Min. Thickness
	 	mils
	Loads Acting on Footings
	 	 
	Feed trunnion, live load
	 	kN
	Feed trunnion, dead load
	 	kN
	Discharge trunnion, live load
	 	kN
	Discharge trunnion, dead load
	 	kN

Page 13 of 13

 

BALL MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	General
	 	 
	Mill Type:
	 	 
	Diameter Inside Shell
	 	mm
	Shell Length, Flange to Flange
	 	mm
	Grinding Chamber Length
	 	mm
	Volume Inside Liners
	 	m3
	Mill Operating Speed
	 	rpm
	Percent of Criticial speed (new liners):
	 	%
	Power Required with New liners at Design Ore & Media
Charge
	 	kW
	Head Outside Diameter
	 	mm
	Feed end Trunnion Min. I.D. with Liners
	 	mm
	Discharge End Trunnion I.D. with Liners
	 	mm
	Mill Drive
	 	 
	Recommended Motor Rating, kW/RPM, Service Factor
	 	kW/rpm
	Drive Arrangement — Gear Position
	 	 
	Loaded mill WR2
	 	kgm2
	 
	 	 
	Design Data
	 	 
	Finite Element Stress Analysis Method
	 	 
	Stress Analysis Method Developed by Whom?
	 	 
	Independent Review of Stress Analysis Method by
Whom?
	 	 
	Extent Field Verification of Stress Analysis Method
	 	 
	Design Total Charge, % Mill Volume
	 	%
	Design Ball Charge, % Mill Volume
	 	%
	Mill Design Life Expectancy
	 	Yrs
	Shell Design
	 	 
	No. of Shell Sections
	 	 
	Shell
	 	 
	Material (ASTM No.)
	 	 
	Design Stress
	 	MPa

Page 1 of 13

 

BALL MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Max Thickness
	 	mm
	Location of Max. Thickness
	 	 
	Min. Thickness
	 	mm
	Location of Min. Thickness
	 	 
	Shell Length, Flange to Flange
	 	mm
	Shell Weight (total)
	 	kg
	Circumferential Flanges
Material (ASTM No.)
	 	 
	Design Stress
	 	MPa
	Thickness
	 	mm
	Outside Diameter
	 	mm
	Bolt Circle Diameter
	 	mm
	Quantity and Size of Fasteners
	 	mm
	Axial Flanges
	 	 
	Material (ASTM No.)
	 	 
	Design Stress
	 	kPa
	Thickness
	 	mm
	Head and Trunnion Design
	 	 
	Heads
	 	 
	Type
	 	 
	Material (ASTM No.)
	 	 
	Design Stress
	 	MPa
	Fabrication Method
	 	 
	Angle
	 	degrees
	No. of Pieces/Assembly Method
	 	 
	Thickness: (max/Min)
	 	 
	at Trunnion/Head Interface
	 	mm
	at Shell/head Interface
	 	mm
	Outside diameter
	 	mm
	Bolt Circle Diameter
	 	mm
	Flange Thickness
	 	mm

Page 2 of 13

 

BALL MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Quantity and Size of Fasteners Head/Trunnion
	 	 
	Overall Length
	 	mm
	Weight
	 	kg
	Trunnions
	 	 
	Type
	 	 
	Material (ASTM No.)
	 	 
	Trunnions (cont’d)
	 	 
	Design Stress
	 	Mpa
	Fabrication Method
	 	 
	Thickness (Max/Min)
	 	 
	at Knuckle Radius
	 	mm
	at Shell/head Interface
	 	 
	at Bearing Surface
	 	mm
	Flange O.D.
	 	mm
	Flange Bolt Fasteners
	 	 
	Quantity and Size of Fasteners
	 	 
	Overall Length
	 	mm
	Weight
	 	kg
	Mill Support Bearing Assemblies
	 	 
	Type and Location
	 	 
	Journal
	 	 
	Diameter
	 	mm
	Length
	 	mm
	Projected Area
	 	m2
	Thrust Face Area
	 	 
	Pressure with Max. Load
	 	 
	Feed End
	 	kPa
	Discharge end
	 	kPa
	Thrust
	 	 
	Self-Aligning Method
	 	 
	Thermally Stress Relieved?
	 	 

Page 3 of 13

 

BALL MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Type of Seals
	 	 
	Bearing Inserts
	 	 
	Type: Tilting Pad/Sleeve/Other (Specify)
	 	 
	Mounted on Riding Ring or Trunnion
	 	 
	Material
	 	 
	Thickness
	 	mm
	Pad Length/Width/Thickness
	 	mm
	No. Per Bearing
	 	 
	Contact Angle w/Journal
	 	degrees
	Bearing Weight each
	 	kg
	Means of Holding Bearing Aligned on Baseplates
	 	 
	Temperature Detectors
	 	 
	Type
	 	 
	No. Per Bearing
	 	 
	Alarm Temperature
	 	°C
	Shutdown Temperature
	 	°C
	Mill Support Bearing Lube System
	 	 
	Supplier
	 	 
	Type
	 	 
	No. of Systems/Mill
	 	 
	Pumps: High Pressure pockets/ HP thrust and flood/Low
Pressure conditioning/ HPSpherical Seats
	 	 
	Type
	 	 
	Rating
	 	 
	Flow rate
	 	l/s
	Pressure
	 	kPa
	Motor Power
	 	kW
	No. per Lube System
	 	 
	Operating/Standby
	 	 
	Excess Capacity
	 	 
	High Pressure
	 	%
	Low Pressure
	 	%

Page 4 of 13

 

BALL MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Thrust
	 	 
	Heat Exchanger
	 	 
	Type
	 	 
	Cooling
	 	l/s /kPa
	No. per Lube System
	 	 
	Oil Filter
	 	 
	Type
	 	 
	Size
	 	Microns
	No. per Lube System
	 	 
	Operating/Standby
	 	 
	Oil Heaters
	 	 
	Type
	 	 
	Rating
	 	kW
	No. per Lube System
	 	 
	Operating/Standby
	 	kg
	Lube system Weight, empty/filled
	 	kg
	 
	 	 
	Pinion Bearing Lube System
	 	 
	Supplier
	 	 
	No. of Systems per Mill
	 	 
	Pumps
	 	 
	Type
	 	 
	Flow rate
	 	l/s
	Pressure
	 	kPa
	Motor Power
	 	kW
	No. per Lube System
	 	 
	Operating/Standby
	 	 
	Heat Exchanger
	 	 
	Type
	 	 

Page 5 of 13

 

BALL MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Cooling Water Req’d
	 	l/s / kPa
	Oil Filter
	 	°C
	Type
	 	 
	Size
	 	Microns
	No. per Lube System
	 	 
	Operating/Standby
	 	 
	Oil Heater
	 	 
	Type
	 	 
	Rating
	 	kW
	No. per Lube System
	 	 
	Operating/Standby
	 	 
	Weight, empty/filled
	 	kg
	Feed Spout
	 	 
	Type
	 	 
	Material
	 	 
	Thickness
	 	mm
	Liner Material/Thickness
	 	mm
	Opening Dimensions
	 	mm
	Seal Type
	 	 
	Weight
	 	 
	Trommel
	 	 
	Type
	 	 
	Material
	 	 
	Thickness
	 	mm
	Outside Diameter x Length
	 	mm
	Opening Size
	 	mm
	Diameter Inside Spiral
	 	mm
	Weight
	 	kg
	Ring and Pinion Gear Lube System
	 	 
	Type
	 	 
	Lubricant
	 	 

Page 6 of 13

 

BALL MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Air Requirements: (Free air) 15 min Cycles
	 	l/s       /       kPa
	Ring and Pinion Gear Lube System (cont’d)
	 	 
	Weight
	 	kg
	Air Clutch
	 	 
	Supplier
	 	 
	Type
	 	 
	Model
	 	 
	Torque
	 	 
	Operating
	 	Nm
	Maximum
	 	Nm
	Service factor
	 	 
	Air Requirement: (Free Air)
	 	l/s       /       kPa
	Locking Device
	 	 
	Weight Each
	 	kg
	Liners
	 	 
	Shell
	 	 
	Type
	 	 
	Material
	 	 
	Thickness, min/max
	 	mm
	Liner Bolt Type, size
	 	mm
	Backing Material/Thickness
	 	mm
	Weight
	 	kg
	Heads
	 	 
	Type
	 	 
	Material
	 	 
	Thickness
	 	mm
	Liner Bolt Type, size
	 	mm
	Backing Material/Thickness
	 	mm
	Weight
	 	kg
	Liners
	 	 
	Shell
	 	 

Page 7 of 13

 

BALL MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Type
	 	 
	Material
	 	 
	Thickness, min/max
	 	mm
	Liner Bolt Type, size
	 	mm
	Backing Material/thickness
	 	mm
	Weight
	 	kg
	Heads
	 	 
	Type
	 	 
	Material
	 	 
	Thickness
	 	mm
	Liner Bolt Type, size
	 	mm
	Backing Material/thickness
	 	mm
	Weight
	 	kg
	Feed Trunnion Liner
	 	 
	Type
	 	 
	Material
	 	 
	Thickness
	 	mm
	Diameter
	 	mm
	Seal
	 	 
	Weight
	 	kg
	Discharge Trunnion Liner
	 	 
	Type
	 	 
	Material
	 	 
	Thickness
	 	mm
	Diameter
	 	mm
	Seal
	 	 
	Weight
	 	kg
	Jacking System
	 	 
	Jack Size
	 	 
	Quantity
	 	 
	Hydraulic Power Package
	 	 
	Motor Rating
	 	kW

Page 8 of 13

 

BALL MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Motor Speed
	 	rpm
	Cradles, describe
	 	 
	Gear Set
	 	 
	Normal diametral pitch
	 	 
	Normal pressure angle
	 	degrees
	Helix angle
	 	degrees
	Transverse pressure angle
	 	degrees
	Maximum allowable misalignment
	 	 
	Axial runout
	 	mm
	Radial runout
	 	mm
	Efficiency
	 	%
	Ring Gear
	 	 
	Supplier
	 	 
	Casting Supplier
	 	 
	Material
	 	 
	Type/No. of teeth
	 	 
	Hardness
	 	 
	Hardening method
	 	 
	Tooth cutting process
	 	 
	Design life expectancy
	 	 
	Tooth form
	 	 
	Tip relief
Face width
	 	mm
	Outside diameter
	 	mm
	Pitch diameter
	 	mm
	Root diameter
	 	mm
	Speed
	 	rpm
	Durability service factor
	 	 
	Strength service factor
	 	 
	No.of sections
	 	 
	Weight, each section
	 	kg

Page 9 of 13

 

BALL MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Weight, total
	 	kg
	Pinion
	 	 
	Supplier
	 	 
	Forger
	 	 
	Material
	 	 
	Type/No. of Teeth
	 	 
	Hardness
	 	 
	Hardening method
	 	 
	Tooth cutting process
	 	 
	Design Life expectancy
	 	 
	Tooth form
	 	 
	Tip relief
	 	 
	Face width
	 	mm
	Outside diameter
	 	mm
	Pitch diameter
	 	mm
	Root diameter
	 	mm
	Speed
	 	rpm
	Durability service factor
	 	 
	Strength service factor
	 	 
	No. of sections
	 	 
	Weight
	 	 
	Pinion Shaft Bearings
	 	 
	Type
	 	 
	Supplier
	 	 
	Size
	 	 
	B-10 Life
	 	hrs
	Seal Type
	 	 
	Lubrication
	 	 
	Quality Level
	 	 
	Overall
	 	 
	Pitch
	 	 
	Profile
	 	 

Page 10 of 13

 

BALL MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Runout
	 	 
	Lead
	 	 
	Instruments. Describe how quality levels are checked and
instruments used.
	 	 
	 
	 	 
	Weights and Sizes (for Gear & Pinion only)
	 	 
	Shipping
	 	 
	Total shipping wt.,
	 	kg
	Total shipping volume
	 	m3
	Largest piece (identify)
	 	 
	Size of Largest piece
	 	m
	Heaviest piece (identify)
	 	 
	Weight of heaviest piece
	 	kg
	Total number of shipping pieces
	 	 
	Installed unit weights
	 	 
	Ring gear
	 	kg
	Pinion and shaft
	 	kg
	Heaviest piece for erection
	 	 
	Ring gear
	 	kg
	Pinion and shaft
	 	kg
	Inching Drive
	 	 
	Type

	 	 
	Supplier
	 	 
	Speed
	 	rpm
	Mill inching speed
	 	rpm
	Motor rating
	 	kw/rpm
	Gear Reducer
	 	 
	Supplier
	 	 
	Model No.
	 	 
	Ratio
	 	 
	Service factor
	 	 
	Bearing type B-10 Life
	 	 

Page 11 of 13

 

BALL MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Seal Type
	 	 
	Lubrication
	 	 
	Couplings model/torque rating
	 	 
	High speed
	 	 
	Low speed
	 	 
	Kirk key interlocks
	 	 
	Installed operating weight
	 	 
	Outdoor Installation
	 	 
	Weights and Sizes Shipping (excluding gears)
	 	 
	Total Shipping Weight
	 	 
	Total Shipping Volume
	 	 
	Largest Piece (identify)
	 	 
	Size of Largest Piece
	 	m
	Heaviest Piece (identify)
	 	 
	Weight of Heaviest Piece
	 	kg
	Total No. of Shipping Packages
	 	 
	 
	Weights and Sizes Shipping (excluding gears)
	 	 
	Installed Weight (excluding gears)
	 	 
	Mill without Liner
	 	kg
	Mill with Liners
	 	kg
	Mill Total c/w Oper. Max Load 37% B.C.
	 	kg
	Heaviest Piece (excluding gear)
	 	 
	Erection
	 	 
	Identify Component
	 	 
	Weight
	 	kg
	Maintenance
	 	 
	Identify Component
	 	 
	Weight
	 	kg
	Painting and Finish
	 	 

Page 12 of 13

 

BALL MILL

TECHNICAL REFERENCE

	 	 	 
	ITEM	 	UNITS
	Surface Preparation
	 	 
	Primer Coat
	 	 
	Material
	 	 
	Min. Thickness
	 	mils
	Finish Coat
	 	 
	Material
	 	 
	Min. Thickness
	 	mm

Page 13 of 13

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