Mines (Aluminium Agreement) Amendment Bill 2011

table of provisions

ClausePage

ClausePage

1Purpose

2Commencement

3Principal Act

4Act binds the Crown

5Interpretation

6Ratification etc. and enforcement of Agreement and
modification of Acts etc.

7New sections 4A and 4B inserted

4ARatification of the Amendment Agreement

4BApplication of Occupational Health and Safety Act2004

8Enactment of certain provisions of Agreement

9New section 7A inserted

7APower to authorise compulsory purchase of land

10Repeal of the Mines (Aluminium Agreement) (Brown
Coal Royalties) Act 2005

11Amendment of Schedule heading

12New Schedule 2 inserted

SCHEDULE 2—Amendment Agreement

13Repeal of amending Act

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EndnoteS

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571086B.I-26/10/2011BILL LA INTRODUCTION 26/10/2011

ClausePage

Introduced in the Assembly

Mines (Aluminium Agreement) Amendment Bill 2011

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571086B.I-26/10/2011BILL LA INTRODUCTION 26/10/2011

ClausePage

A Bill for an Act to amend the Mines (Aluminium Agreement) Act 1961 to provide for amendments to the agreement in the Schedule to that Act, to repeal the Mines (Aluminium Agreement) (Brown Coal Royalties) Act 2005 and for other purposes.

1

571086B.I-26/10/2011BILL LA INTRODUCTION 26/10/2011

ClausePage

Preamble

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571086B.I-26/10/2011BILL LA INTRODUCTION 26/10/2011

Mines (Aluminium Agreement) Amendment Bill 2011

The State and Alcoa of Australia Pty Ltd ("Alcoa") entered into an agreement on 22 November 1961 with respect to the establishment of an industrial facility to produce aluminium products ("the agreement").
The agreement was ratified, validated, approved and otherwise given effect to by the Mines (Aluminium Agreement) Act 1961.
Under the agreement Alcoa has the exclusive right to search, work, mine for, win, carry away and dispose of all coal on or in the leased area identified in the agreement on the terms set out in the agreement.
The initial term of the agreement is due to expire on 1 February 2012 and the parties wish to extend the term and amend the agreement.
It is expedient to amend the Mines (Aluminium Agreement) Act 1961 to ratify, validate and approve the extension and amendment of the agreement.

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571086B.I-26/10/2011BILL LA INTRODUCTION 26/10/2011

Mines (Aluminium Agreement) Amendment Bill 2011

The Parliament of Victoriatherefore enacts:

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571086B.I-26/10/2011BILL LA INTRODUCTION 26/10/2011

Mines (Aluminium Agreement) Amendment Bill 2011

1Purpose

s. 1

The purpose of this Act is to amend the Mines (Aluminium Agreement) Act 1961 to provide for amendments to the agreement in the Schedule to that Act, to repeal the Mines (Aluminium Agreement) (Brown Coal Royalties) Act 2005 and for other purposes.

2Commencement

This Act comes into operation on the day after the day on which this Act receives Royal Assent.

3Principal Act

See:
Act No.
6829.
Reprint No. 2
as at
14 March 2008.
LawToday:
www.
legislation.
vic.gov.au

In this Act, the Mines (Aluminium Agreement) Act 1961 is called the Principal Act.

4Act binds the Crown

This Act binds the Crown in the right of Victoria and, so far as the legislative power of the Parliament permits, the Crown in all its other capacities.

5Interpretation

(1)In section 2(a) of the Principal Act—

(a)for "the Schedule to this Act" substitute "Schedule 1"; and

(b)after "and includes" insert "the amendments made, ratified, validated and approved by the Mines (Aluminium Agreement) Amendment Act 2011 and";and

(c)for "as executed"substitute "as amended".

(2)After section 2(a) of the Principal Act insert—

"(ab) Amendment Agreement means the agreement a copy of which is set out in Schedule 2 and includes the plan which is annexed to the Amendment Agreement as executed and which is referred to in the said Schedule;

(ac) reserve area has the same meaning that it had immediately before the commencement of the Mines (Aluminium Agreement) Amendment Act 2011;".

6Ratification etc. and enforcement of Agreement and modification of Acts etc.

s. 5

In section 4(2)(b) of the Principal Act—

(a)in subparagraph (i), for "Mines Act 1958" substitute "Mineral Resources (Sustainable Development) Act 1990";

(b)in subparagraph (iii), for "1958" substitute "1989";

(c)in subparagraph (v), for "1958" substitute "1989";

(d)in subparagraph (vi), after "Transport" insert "(Compliance and Miscellaneous)".

7New sections4Aand 4Binserted

s. 7

After section 4 of the Principal Act insert—

"4A Ratification of the Amendment Agreement

(1)The Amendment Agreement is ratified, validated and approved and takes effect.

(2)The Agreement is amended as provided in the Amendment Agreement.

4BApplication of Occupational Health and Safety Act2004

Despite section 4(2)(b), the Occupational Health and Safety Act 2004 and any regulations made under it apply to all mining operations carried out under the Agreement as if the leased area, the freehold land, the prior land, the purchased land and any other land acquired under section 7A were a mine as defined in section 37 of the Occupational Health and Safety Act 2004.".

8Enactment of certain provisions of Agreement

In section 7 of the Principal Act—

(a)for "subclause (4)" substitute "subclause (5)";

(b)omit"subclause (3) of clause 20,";

(c)for "23"substitute "21A, 21B".

9New section 7A inserted

s. 9

After section 7 of the Principal Act insert—

"7A Power to authorise compulsory purchase of land

(1)The Company may apply to the Minister for approval to compulsorily acquire an interest in land for the purposes specified in the Agreement.

(2)If the Minister approves an application under subsection (1), the Minister must certify his or her approval and submit that certificate to the Governor in Council for approval.

(3)The certificate must specify the interest in the land proposed to be acquired and the purpose for which it is required.

(4) If the Governor in Council approves a certificate referred to in subsection (2), the Company may compulsorily acquire the interest in land specified in the certificate for the purposes specified in the certificate.

(5) The Land Acquisition and Compensation Act1986applies to this section as if—

(a)this section is the special Act; and

(b)the Company is the Authority.".

See:
Act No.
9/2005.
Statute Book:
www.
legislation.
vic.gov.au

10Repeal of the Mines (Aluminium Agreement) (Brown Coal Royalties) Act 2005

The Mines (Aluminium Agreement) (Brown Coal Royalties) Act 2005isrepealed.

11Amendment of Schedule heading

s. 11

In the heading to the Schedule to the Principal Act—

(a)for "SCHEDULE" substitute"SCHEDULES";

(b)immediately below "SCHEDULES" insert "SCHEDULE 1".

12New Schedule 2 inserted

After Schedule 1 to the Principal Act insert—

"______

SCHEDULE 2

Amendment Agreement

Date / 19 October 2011
Parties
1. / The Honourable Michael O'Brien for and on behalf of the State of Victoria as Minister for Energy and Resources (theState).
2. / Alcoa of Australia Limited (ACN004879298) of 181205Davy Street, Booragoon, Western Australia (theCompany).
Recitals
A / The State and the Company are parties to an agreement which is set out in the Schedule to the Mines (Aluminium Agreement) Act 1961 (the Principal Agreement) under which the Company has the exclusive right to search work mine for win carry away and dispose of all coal on or in the leased area on the terms set out in the Principal Agreement.
B / The initial term of the Principal Agreement is due to expire on 1February 2012 and the parties wish to extend the term and amend the Principal Agreement in the manner set out in this Agreement.

It is agreed as follows.

  1. Definitions and Interpretation

In this Agreement, unless the context requires otherwise:

(a)Effective Date means 1 February 2012.

(b)Words which are defined in the Principal Agreement and which are used in this Agreement have the same meaning in this Agreement as in the Principal Agreement.

  1. Condition Precedent

This Agreement has no force or effect until it has been ratified, validated and approved by an Act of the Parliament of Victoria.

  1. Amendments

The Principal Agreement is amended as follows:

(a)Recitals

A new Recital IV is added after Recital III:

"IV.On the expiry of its initial term the State and the Company wish to extend, amend and restate this Agreement as provided in the Amendment Agreement."

(b)Clause 1

s. 12

In the definition of "the Act", "Mines Act 1958" is deleted and replaced with "Mineral Resources (Sustainable Development) Act 1990".

A new defined term is added after "the Act":

""Amendment Agreement" means the agreement between the State and the Company amending and restating this Agreement in connection with the extension of this Agreement on the expiry of its initial term;"

The definition of "base index number" is amended as follows:

(i)the word "December" is deleted and replaced with "June";

(ii)the words "One thousand nine hundred and sixtyone" are deleted and replaced with "two thousand and ten"; and

(iii)the word "Commonwealth" is deleted and replaced with "Australian".

The definition of "Chief Mining Inspector" is amended as follows:

(i)the words "Chief Mining Inspector in" are deleted and replaced with "the Chief Inspector appointed under"; and

(ii)the words "Department of Mines" are deleted and replaced with "Act".

In the definition of "Company", the word "Proprietary" is deleted.

The definition of "current index number" is amended as follows:

(i)the word "average" is deleted;

(ii)the words "for the whole" are deleted and replaced with "asat30 June"; and

(iii)the word "Commonwealth" is deleted and replaced with "Australian".

The definition of "former forest area" is deleted.

s. 12

Two new defined terms are added after the definition of "date of commencement":

""Department" means the Department of Primary Industries;

"freehold land" means land coloured blue on the plan annexed hereto being all the land contained in—

(a)certificate of title volume 8230 folio 618 known as Lot 1 on Title Plan 408603H (formerly known as part of Crown Allotment 10 Parish of Angahook); and

(b)certificate of title volume 8489 folio 766 known as Lot 2 on Plan of Subdivision 061660 (formerly known as part of Crown Allotment 10 Parish of Angahook),

which land is the subject of a minerals exemption granted pursuant to section 293 of the Mines Act 1958 on or about 19 August 1985;"

The definition of "leased area" is amended as follows:

(i)the words "the power station site" are deleted;

(ii)the words "within the boundaries shown" are deleted and replaced with "coloured green";

(iii)the words "by a red verge and which together with the power station site" are deleted and replaced with "which"; and

(iv)"10,865 acres" is deleted and replaced with "7,145hectares".

The definition of "Power station site" is deleted.

In the definition of "prior land", the words "containing (subject to survey) 99 acres more or less" are deleted and replaced with:

"being all the land contained in certificate of title volume 5944 folio 708 known as Crown Allotments 63B1 and 64D in Parish of Jan Juc County of Grant, which land is the subject of a minerals exemption granted pursuant to section293 of the Mines Act 1958 on or about 19August 1985;"

s. 12

In the definition of "purchased land", the words "described in sub-clause (3) of clause 20 hereof" are deleted and replaced with:

"coloured red on the plan annexed hereto being all the land contained in certificate of title volume 8876 folio 425 known as crown allotment 66 in Parish of Jan Juc County of Grant;"

The definition of "reserve area" is deleted.

In the definition of "Secretary", "Secretary for Mines" is deleted and replaced with "Secretary of the Department".

The following new defined terms are added after the definition of "Secretary":

""significant additional environmental impact" means a significant impact on—

(a)species of fauna or flora or ecological communities or their supporting habitat;

(b)beneficial uses of surface and ground waters; or

(c)the amenity of adjoining areas,

that is in addition to the impacts that already exist by virtue of the Company's existing mining operations at the time the mine extension plan is submitted;

"specified area" means the area designated as such in the plan lodged at the Central Plan Office and assigned plan number LEGL./11-281, being the area in which the Company is authorised to conduct mining operations under the work plan referred to in clause 21A (including the stage 1 area and any area in which the conduct of such mining operations is subject to the approval of a mine extension plan in accordance with the work plan);

"stage 1 area" means the area identified as such in the work plan referred to in clause 21A in which the Company is authorised to conduct mining operations as at the date of the Amendment Agreement without the need to submit a mine extension plan for approval;"

A new defined term is added after the definition of "State":

""stone" has the same meaning as it has in the Mineral Resources (Sustainable Development) Act 1990 of the Parliament of Victoria;"

s. 12

A new defined term is added after the definition of "term of this Agreement":

""water supply infrastructure" means pipelines, ground water extraction bores and any associated assets that support the supply of water;"

(c)Clause 2

In clause 2, "Mines Act 1958" is deleted and replaced with "Mineral Resources (Sustainable Development) Act 1990".

(d)Clause 4

Clause 4 is deleted and a new clause 4 is inserted:

"4. Effect of assignment by Company

(1)The Company may assign all or some of its rights under this Agreement with the written consent of the Minister.

(2)An assignment shall be conditional on the assignee executing a deed in a form approved by the Minister under which the assignee agrees to be responsible for the performance of each of the obligations and conditions imposed by this Agreement that correspond to the rights assigned to it by the Company.

(3)The Company shall be released from responsibility for the performance of each of the obligations and conditions of this Agreement that are assumed by an assignee by reason of sub-clause (2)."

(e)Clause 6

In clause 6, the word "fifty" is deleted and replaced with "one hundred".

(f)Clause 7

Sub-clauses 7(1) and 7(2) are omitted.

In sub-clause 7(3), the words "of any extension pursuant to sub-clause (1) of this" are deleted and replaced with "specified in the last preceding". The word "further" is deleted.

In sub-clause 7(4), the word "further" is deleted wherever it appears. The word "lease" is deleted and replaced with "licence".

(g)Clause 8

s. 12

Clause 8 is amended as follows:

(i)the words "on or after the expiration of the first nine years or (if pursuant to clause 15 hereof that period is extended) twelve years of the term of this Agreement" are deleted;

(ii)the number "15" is deleted and replaced with "19";

(iii)the words "or her" are inserted after "his";

(iv)the word "he" is deleted and replaced with "the Minister"; and

(v)the word "leases" is deleted and replaced with "licences".

(h)Clause 9

In sub-clause 9(2)(b), the words "sand gravel clay or earth" are deleted and replaced with "stone".

Sub-clauses 9(3) and 9(4) are omitted.

(i)Clause 10

Sub-clause 10(1)(a) is amended as follows:

(i)the words "two shillings and sixpence" are deleted and replaced with "62cents";

(ii)the words "each acre" are deleted and replaced with "eachhectare"; and

(iii)the words "an acre" are deleted and replaced with "a hectare".

Sub-clause 10(1)(b) is amended as follows:

(i)the word "ton" is deleted and replaced with "tonne";

(ii)the word "or" is deleted after "electric power";

(iii)the words "or while the Company (whether alone or as part of a partnership or joint venture with others) is operating an aluminium smelting plant at Portland" are inserted after "hereof";

(iv)in paragraph (b)(i), the words "four pence" are deleted and replaced with "38.7203 cents" and the words "one hundred thousand tons" are deleted and replaced with "one hundred and one thousand six hundred tonnes"; and

s. 12

(v)in paragraph (b)(ii), the words "three pence" are deleted and replaced with "29.0686 cents" and the words "one hundred thousand tons" are deleted and replaced with "one hundred and one thousand six hundred tonnes".

Sub-clause 10(1)(c) is deleted and a new sub-clause 10(1)(c) is inserted:

"(c)in respect of each tonne of coal as aforesaid won from the leased area and used for the generation of electric power otherwise than in connexion with the industries referred to in Recital I hereof or while the Company (whether alone or as part of a partnership or joint venture with others) is operating an aluminium smelting plant at Portland, a royalty at the rate from time to time applicable to lignite under section 12A of the Act;"

A new sub-clause 10(1)(d) is added:

"(d)in respect of each tonne of coal as aforesaid won from the leased area and sold or used by the Company for any purpose other than as specified in paragraph (b) or (c) of this clause, a basic royalty of 38.7203 cents."

In sub-clause 10(2), "Accountant to the Department of Mines" is deleted and replaced with "Department of Primary Industries or its successor".

In sub-clause 10(4), after the words "during that year" insert:

", other than the royalty payable under sub-clause (1)(c),"

Sub-clause 10(5) is amended as follows:

(i)the word "Commonwealth" is deleted and replaced with "Australian"; and

(ii)the words "Government Statist" are deleted and replaced with "Secretary of the Department of Treasury and Finance".

s. 12

Sub-clause 10(7) is omitted.

Sub-clause 10(8) is amended as follows:

(i)the words "two shillings and sixpence" are deleted and replaced with "62cents";

(ii)the words "each acre" are deleted and replaced with "each hectare"; and

(iii)the words "an acre" are deleted and replaced with "a hectare".

(j)Clause 11

In sub-clause 11(a), the word "him" is deleted and replaced with "theMinister".

In sub-clause 11(b), the word "him" is deleted and replaced with "theMinister" and the words "as he" are deleted and replaced with "the freehold land the prior land and the purchased land as the Minister".

The following paragraph is added at the end of clause 11:

"This clause does not limit the obligations of the Company with respect to the keeping of proper records under the Act. To the extent that there is an inconsistency between the requirements of this clause and the requirements of the Act with respect to the keeping of records, the requirements of the Act prevail."

(k)Clause 12

Sub-clauses 12(1)(a) to 12(1)(f) are omitted.

Sub-clause 12(1)(g) is amended as follows:

(i)the word "him" is deleted and replaced with "such owner occupier or lessee";

(ii)the word "mining" is inserted after "the Company's"; and

(iii)the words "the freehold land the prior land or the purchased land" are inserted after "leased area".

Sub-clauses 12(1)(h) and 12(1)(i) are omitted.

Sub-clause 12(1)(j) is amended as follows:

(i)the word "mining" is inserted before "operations";

s. 12

(ii)the words "the freehold land the prior land or the purchased land" are inserted after "leased area"; and

(iii)the words "all statutory provisions" are deleted and replaced with "the Act and all other statutory provisions".

Sub-clause 12(2) is omitted.

(l)Clause 13

The heading to clause 13 is deleted and replaced with "Use of leased area".

Sub-clauses 13(a), 13(b), 13(d) and 13(e) are omitted.