WORKS TENDER DOCUMENTS - ec.europa.euec.europa.eu/europeaid/tender/data/d36/AOF85336.doc · Web viewAn assessment will be made of each Tenderers proposal for the provision of ...

THE GOVERNMENT OF THE REPUBLIC OF BOTSWANAMINISTRY OF MINERALS, ENERGY AND WATER RESOURCES

TENDER No EuropeAid127062/D/WKS/BW

ECONOMIC DIVERSIFICATION OF THE MINING SECTOR (8 ACP BT 013)

Financed by the 8th European Development Fund

WORKS CONTRACT FOR THE FOLLOWING WORK:

BCL Phase IV Exploration Drilling Programme

For BCL Limited, Selebi-Phikwe, Botswana

1

TABLE of CONTENTS

PART 1: GENERAL 3

SECTION A – Notice of Invitation to Tender 4SECTION B – Instructions to Tenderers and Appendices 6

Appendix B1 – Tender Evaluation Criteria 15Appendix B2 – Tender Guarantee Format 19Appendix B3 – Notes of General Information 20

SECTION C - General Regulations for Works, Supply and Service Contracts Financed by the European Development Fund (EDF) 24

SECTION D – Contract Form 25Special Conditions of Contract 27General Conditions for Works Contracts Financed by the European

Development Fund 41Appendix D1 – Performance Guarantee Format 42Appendix D2 - Format of Guarantee for the Payment of Advance – Lump

Sum 43Appendix D3 – Format of Guarantee for the Payment of Advance –

materials, equipment, etc 44Appendix D4 – Procedural rules on conciliation and arbitration of contracts

financed by the European Development Fund (EDF) 45SECTION E – Tender Form 60

Appendix E2 – Certificate of Tenderers Visit to Site 64Appendix E3 - Minutes of Pre–Tender Site Visit 65Appendix E4 - Statutory Fluctuations in Rates of Wages - Schedule 66

PART 2: TECHNICAL ANNEX 67

SECTION F – Scope of Works and Technical requirements 68BCL Phase IV Exploration Drilling Programme 69Scope of Works and Technical Requirements 70Annex B - Rates for Additional Services 82Annex C – Compliance with Specification 83Appendix F1– Points of Note 84Appendix F2 – Vendor Questionnaire 85Appendix F3 – Checklist 86Section G - BCL Limited Contractors Safety, Health & Environment Induction

Programme 87

2

PART 1: GENERAL

3

Part I: General

SECTION A – Notice of Invitation to Tender

Notice of Invitation to Tender No EuropeAid/127062/D/WKS/BW issued by: The Republic of Botswana for a project identified for financing by the European Development Fund (EDF).

1. Project identification and financing

a) Title: Economic Diversification of the Mining Sectorb) Number: 8 ACP BT 013 c) Source of financing: 8th European Development Fund (EDF) d) Status of the financing: Approved

2. Contract identification

a) Type of contract: Works b) Subject: Works contract for


c) Number of lots: One (1)d) Variants: Variant solutions are not permitted

3. Eligibility, origin and evaluation criteria

a) Eligibility and origin: EU / ACP States signatory to the Lomé Convention, 2nd Financial Protocol b) Evaluation: See tender documents

4. Location and deadline

Project location: BCL Limited, Mine Site, PO Box 3, Selebi Phikwe Botswana a) Place of delivery, installation or performance:

BCL LimitedMine SitePO Box 3Selebi PhikweBotswana

b) Delivery or performance period: 400 days

c) Tender validity period: 90 days

5. Project authorities

a) Contracting Authority: BCL LimitedMine SitePO Box 3Selebi PhikweBotswanaTel. +267-262 15 18Fax. +267-261 11 64

b) Supervisor: General ManagerBCL LimitedMine SitePO Box 3Selebi PhikweBotswanaTel. +267-262 15 18Fax. +267-261 11 64

4

Part I: General

6. Tender documents

a) Type of tender: Open International tenderb) Terms on which tender documents may be obtained: Free of Charge at the offices of the Contracting

Authority at the address provided at 5 a) above, or on the website of EuropeAid at or on the websites of the Delegations of the European Commission listed under § 10.

c) Inspection of the tender documents is possible in Botswana and neighbouring ACP states at: Offices of the Delegation of the European Commission (addresses and contact details in §10)

7. Language, receipt and opening of the tenders

a) Language: English b) Date and time (local) for receipt of tenders: 14/07/2008 at 09:00 hrs (local time) c) Address for the receipt:

BCL LimitedMine SitePO Box 3Selebi PhikweBotswanaTel. +267-262 15 18Fax. +267-261 11 64

d) Date and time (local) for opening of tenders: 14/07/2008 at 10:00 hrs (local time) e) Address for the opening:

BCL LimitedMine SitePO Box 3Selebi PhikweBotswanaTel. +267-262 15 18Fax. +267-261 11 64

8. Deposits and guarantees

a) Tender guarantee in the contract currency (BWP): 2 % of tender amount b) Performance guarantee: 10 % of contract price c) Other: see tender documents9. Site visit

a) Date and time (local):

03/06/2008 at 09:00 hours (local time)

Place:

b) BCL Limited, Mine Site, PO Box 3, Selebi Phikwe, Botswana

The pre-tender meeting and site visit is one event and is compulsory. The “Certificate of Tenderers Visit to Site” and a copy of the Minutes of the Pre-tender Visit must be included in the Bid.

2. Further information

This notice is published pursuant to Annex I to Decision 3/90 of the ACP-EEC Council of Ministers of 29.3.90 (OJ L-382,31.12.90).

5

Part I: General

SECTION B – Instructions to Tenderers and Appendices

These Instructions to Tenderers are issued in accordance with Article 16.1 of the General Regulations for Works, Supplies and Services contracts financed by the European Development Fund (EDF), hereinafter referred to as the "GR" of which the full text is incorporated in Part 1, Section C of this Invitation to Tender. The numbering of the articles of the Instructions to Tenderers follows the numbering of the articles of the GR that they supplement or amplify.

Article 3.1 - Definitions

EU: The Member States of the European Union, which are signatories to the Lomé IV Convention, Second Financial Protocol

EDF: The European Development Fund

ACP States: The African, Caribbean and Pacific States, which are signatories to the Lomé IV Convention, Second Financial Protocol

Contracting Authority: BCL LimitedMine SitePO Box 3Selebi PhikweBotswanaTel: +267 262 15 18Fax:+267 261 11 64

Supervisor: General ManagerBCL Limited, Mine Site,PO Box 3, Selebi Phikwe, BotswanaTel: +267-262 13 03Fax: +267-261 04 41

Supervisor’s EDMS Project ManagerRepresentative: BCL Limited,

Mine Site, PO Box 3, Selebi Phikwe, BotswanaTel. +267 262 15 18Fax. +267 261 11 64

The Head of Delegation: The Head of Delegation, Delegation of the European Commission in Botswana,Plot 758, Robinson Road, P.O. Box 1253, Gaborone, BotswanaTel: + 267-391 44 55Fax: +267-391 36 26

6

Part I: General

Tenderer: Any natural or legal person or group of such persons submitting a tender, with a view to concluding a Contract

Successful Tenderer: The Tenderer selected after an invitation to tender procedure

Works: The temporary and permanent works to be carried out under the Contract

National Currency: The Botswana Pula.

Foreign Currency: The EURO and/or any other foreign currency

Notification of award of Notification to the successful Tenderer that the Contracting AuthorityContract has selected his tender

Notification of contract Notification to the successful Tenderer that the contract has beensigned by both parties

Article 4 - Eligibility

4.1 (b) Materials and equipment for incorporation in the permanent works shall originate in the EU or ACP States as defined in Article 3.1. of the Instructions to Tenderers.

4.2 If the documents certifying that none of the situations referred to under Article 4.2 (a) to (d) of the GR applies to the Tenderer are not issued by a national authority or a public or other professional body, they may be replaced by the Tenderer’s own signed statement. In this case, the signature must be certified by a notary public or another public or professional body with the indication of the quality of the person signing such statement and the fact that such person is properly authorised and has the statutory powers to do so.

The documents pertaining to Article 4.2 (e) and (f) of the GR may equally be replaced by a declaration of the Tenderer.

4.3 In case of the Tenderer being a joint venture, partnership, consortium or other grouping, the documents referred to in Article 4.3 (a) and (b) of the GR shall be drawn up in respect of each party constituting the Tenderer.

Article 7 - Competition

7.10 This is an Open International tender procedure issued in accordance to Article 7.10 of the GR.

Article 8 - Design Competition

8. This invitation to tender does not concern a design competition.

Article 10 - Types of Contract

10.1 The Contract will be a Unit Price Contract, in accordance with Article 10.1.(b) of the GR as set out in the Contract Price Schedule contained in Appendix E1, Section E hereto.

7

Part I: General

Article 11 - Technical Specifications and Standards

11.2 Where a specific article or material is referred to by a trade or manufacturer's name or is specified by a catalogue or other reference number or description, it shall be deemed to indicate only the style, type or quality of the article or material required and shall in no way restrict the Contractor's choice of supplier, provided that the article or material offered is equivalent to that specified in the tender dossier.

Article 12 - Notice of Written Communication

12.1 Communications between the Contracting Authority and the Tenderer shall be sent by post, telex, facsimile, personal delivery or courier delivery, to the address designated below for that purpose:

EDMS Project ManagerBCL Projects DepartmentMine SitePO Box 3Selebi PhikweBotswanaTel: +267 262 15 18Fax: +267 261 11 64

Copies of all communications shall be sent to :

General ManagerBCL Limited, Mine Site, PO Box 3, Selebi Phikwe, BotswanaTel: +267 262 15 18Fax: +267 261 11 64

and to the :

Head of DelegationDelegation of the European Commission in BotswanaPlot 758, Robinson RoadP. O. Box 1253GaboroneBotswanaTel: +267 391 44 55 Fax: (+267) 391 36 26

8

Part I: General

Article 16 - Contents of Tender Dossier

16.1 The tender dossier is made up of the following:

PART 1: GENERAL 3

SECTION A – Notice of Invitation to Tender 4SECTION B – Instructions to Tenderers and Appendices 6

Appendix B1 – Tender Evaluation Criteria 15Appendix B2 – Tender Guarantee Format 19Appendix B3 – Notes of General Information 20

SECTION C - General Regulations for Works, Supply and Service Contracts Financed by the European Development Fund (EDF) 24

SECTION D – Contract Form 25Special Conditions of Contract 27General Conditions for Works Contracts Financed by the European Development

Fund 41Appendix D1 – Performance Guarantee Format 42Appendix D2 - Format of Guarantee for the Payment of Advance – Lump Sum 43Appendix D3 – Format of Guarantee for the Payment of Advance – materials,

equipment, etc 44Appendix D4 – Procedural rules on conciliation and arbitration of contracts

financed by the European Development Fund (EDF) 45SECTION E – Tender Form 60

Appendix E2 – Certificate of Tenderers Visit to Site 64Appendix E3 - Minutes of Pre–Tender Site Visit 65Appendix E4 - Statutory Fluctuations in Rates of Wages - Schedule 66

PART 2: TECHNICAL ANNEX 67

SECTION F – Scope of Works and Technical requirements 68BCL Phase IV Exploration Drilling Programme 69Scope of Works and Technical Requirements 70Annex B - Rates for Additional Services 82Annex C – Compliance with Specification 83Appendix F1– Points of Note 84Appendix F2 – Vendor Questionnaire 85Appendix F3 – Checklist 86Section G - BCL Limited Contractors Safety, Health & Environment Induction

Programme 87

Article 17 - Clarification of Tender Information

Upon receipt of the various Tender Documents the Tenderer shall immediately check that all documents mentioned have been received or inspected by checking the various references, and shall

9

Part I: General

check that all documents are complete by checking the number of pages contained therein. Should any be missing or duplicated, or the reproduction be indistinct, or if any doubt exists as to the full intent or meaning of any description, or contain any obvious errors, the Tenderer shall notify the Contracting Authority at once. No liability whatsoever will be admitted in respect of errors in any tender due to the above mentioned causes. If for any reason during the tender period it becomes necessary to vary the Tender Documents an Amendment to the tender dossier will be issued to all Tenderers.

Should any Tenderer have questions to ask or should he have any doubt about the meaning of the Tender Documents, he shall refer them in writing (which will be deemed to include cable, telex or facsimile transmission) to the Contracting Authority not later than 30 days before the date set for submission of tenders. Questions submitted will be consolidated at intervals and issued, together with answers, to all Tenderers. The questions and answers as issued will give no indication of which Tenderer raised the question. Questions and answers will not form part of the tender or the Contract. If, arising from a question, it is necessary to vary the Tender Documents, then an Amendment to the tender dossier will be issued in accordance with the above procedure. No alterations, additions, omissions or erasures are to be made to the printed text of any of the Contract Documents unless specifically directed in writing by the Contracting Authority.

Article 19 - Language of Tender

The tender and any appendices, contract documents and all correspondence and documents relating to them shall be drawn up in English, except for documents referred to in Article 4.3 (a) and (b) of the GR, for which a translation shall be provided where they are drawn in another language than English.

Article 20 - Contents of the Tender

20.1 The Tender to be prepared and submitted by the Tenderer shall be in accordance with the requirements stated in the tender dossier and shall be submitted in the following order:

A. Commercial SectionA.1. The completed Tender Form, duly signed;A.2. A declaration by the Board of Directors of the tendering company that the person signing the

tender documents has been given this authority. In the case of a joint venture, the declaration must be signed by the Board of Directors of each company in the joint venture;

A.3. An original Tender Guarantee, following strictly the format in Section B , Appendix B2 ;A.4. The documents dated less than 90 days referred to in Article 4.3 (a) of the GR, and those

providing proof of the standing and ability of the Tenderer referred to in Article 4 of these Instructions to Tenderers and of the GR;

A.5. Preliminary Joint Venture agreement, or a Letter of Intent, or Memorandum of Understanding in the case of a joint venture;

A.6. All information on any sub-contracting arrangements envisaged;A.7. List of similar contracts undertaken by the Contractor and contract values;A.8. Company financial records showing turnover for the last 3 tax years;A.9. The completed and duly signed Contract Price Schedule (Section E, Appendix E1);A.10. The completed and duly signed Schedule of Rates for Additional Services (Section F,

Appendix F1);A.11. The Tender price and the currency of payment;

10

Part I: General

A.12. If applicable, the justification for payments in foreign currency as required under Article 24.5 of the GR;

A.13. Statutory Fluctuations in Rates of Wages – Schedule (Section E, Appendix E4);A.14. Schedules of supplementary information;A.15. Completed Certificate of Tenderers Visit to Site (Section E, Appendix E2);A.16. A letter from an Insurer or Insurance Broker acceptable to the Contracting Authority,

stating that the insurance required under the General and Special Conditions of Contract, Article 16 will be made available to the Tenderer, should the Contract tendered for be awarded to him.

B. Technical Section:

B.1. All information necessary to assess the Tenders (see also Section B – Appendix B1 - Tender Evaluation Criteria and Part 2 – Technical Annex);

B.2. An outline programme for the performance of the works and a description of the proposed methods for carrying out the works, including key personnel organogram; safety, health and environment; plant and equipment;

B.3. In a separate memo attached to the Tender, the Tenderer shall indicate the regulations and standards to which he has referred in order to draw up his Tender. Where these are different from those provided for, he shall enclose extracts of the relevant documents with the memo;

B.4. Where appropriate, additional guarantees proposed by the Tenderer;

Tenderers are invited to submit all documentation according to the formats prescribed in this Invitation to Tender. Failure by the Tenderer to submit all these documents in the required formats may lead to the offer’s rejection .

Article 21 - Lots

21.2 There is a total of 3 Lots, the Contracts are made for each lot, independently.

Article 24 - Pricing of Tenders

24.2 b) Tenderers shall write in figures only, the itemised unit prices (i.e. rates) in the Contract Price Schedule and Schedule of Rates for Additional Services.

24.3 The Tenderer shall submit with the Tender a copy of his Schedule of Rates with all items properly priced, extended and cast in ink. The Contracting Authority may at its discretion, require the adjustment of individual prices and rectification of any discrepancies it may consider necessary but such adjustment shall in no way alter the amount of the Tender Sum, except for correction of arithmetical errors in accordance with Article 34.7 of the GR.

All items of measured work are to be priced in detail. All rates and prices shall bear reasonable relation to each other and similar items in the various sections of the Bill of Quantities shall bear analogy. Where the Tender contains lump sums to cover groups of items or activities the Tenderer shall provide a detailed breakdown of such sums within seven days of being requested to do so by the Supervisor, failing which such Tender may either be rejected or the Supervisor will make such detailed breakdown and same shall be binding upon the Contractor.

11

Part I: General

24.4 Tenders shall be expressed in the national currency as defined in Article 3 of these Instructions to Tenderers. Any Tender expressed in another currency will automatically be rejected.

24.5 The Tenderer shall specify the percentage of the Tender price which the Tenderer requests be paid directly in a foreign currency, and submit suitable justification for it. The justification required shall be assessed in the light of the verifiable facts as regards the real origin of the supplies and of the expenditure to which they give rise. The exchange rates applicable to these payments shall be the rates published in the S series of the Official Journal of the European Communities which were in force 30 days before the closing date for the submission of Tenders. The rates thus set shall be applicable for the duration of the contract.

24.6 An outline to the tax and customs arrangements of the Republic of Botswana are as set out in the Notes of General Information referred to in Article 16.2 of the GR and annexed to as Section B, Appendix B3. However, the Notes of General Information merely offer guidance and is not a document binding on the Contracting Authority. The information given should therefore, be checked by the Tenderer. Tax arrangements applicable to the Lome IV Convention, 2nd Financial Protocol, are reproduced in the Notes of General Information.

Article 25 - Period of Validity

25.1 Tenderers shall remain bound by their Tenders for a period of 90 days from the closing date for submission of Tenders. The Contracting Authority shall reject all Tenders valid for a shorter period.

Article 26 - Tender Guarantee

26.1 Each Tenderer shall provide with its tender, a tender guarantee following strictly the format given in Appendix B2, Section B, in local currency for an amount of 2% of the tendered price. The tender guarantee shall be issued by a financial institution acceptable to the Contracting Authority.

Article 27 - Variant Solutions

27.1 Only tenders conforming to the proposed technical solution will be taken into consideration. Variant solutions will not be accepted.

Article 28 - Pre-tender Visit

Tenderers shall be required to visit the site of the proposed Works at their own expense and shall submit the completed and signed "Certificate of Tenderer's Visit to Site" (Section E, Appendix E2) together with the Tender Form. This certificate will be issued by the Representative of the Contracting Authority. A pre-tender meeting and site visit will be organised as a single compulsory event by the Contracting Authority as per § 9 of the “Notice of Invitation to Tender”, Part 1, Section A. A copy of the minutes of the pre-tender meeting shall accompany tenders. Offers made by Tenderers who have not attended the pre-tender meeting and site visit will be automatically rejected.

The Tenderer must make himself thoroughly acquainted with the nature and extent of the Works included in the Contract by inspecting the drawings and other documents and visiting the site and he will be deemed to have satisfied himself and to have made due allowance in his Tender for all costs to be incurred due to the position and nature of the ground and site conditions, supply of labour, plant,

12

Part I: General

materials and services and generally for all matters in order to execute the Works in accordance with the Contract. No claim will be considered for alleged lack of knowledge of the same.

The site visit will enable Tenderers be briefed and to raise queries regarding the following key topics: Site location and conditions Scope of work and battery limits Equipment required for the work Drawings diagrams and the like which will be handed out a during the site visit

Article 29 - Signing of Tenders

29.1 The Tender shall be signed by the Tenderer or by the Tenderer's duly authorised agent. The Tender and its appendices shall be drawn up in a single original bearing the word “ORIGINAL", with four copies each marked "COPY" and signed in the same way as the original. In case of differences of opinion or dispute, only the original shall be considered authentic.

Article 30 - Time Limit

30.1 Tenders must be submitted to the Contracting Authority by hand, registered post or recorded delivery, at the address given below not later than 09:00 hours local time on 14/07/2008.

EDMS Project ManagerBCL LtdMine SitePO Box 3Selebi PhikweBotswana

Article 31 - Sealing and Marking of Envelopes

31.1 All documents comprising the administration, the technical and the price proposals are to be placed in a single package, sealed, and should be clearly marked as follows:

Invitation to Tender No EuropeAid/127062/D/WKS/BW(Economic Diversification of the Mining Sector- Project No 8 ACP BT 013)

WORKS CONTRACTS FOR :

BCL Phase IV Exploration Drilling Programme.

NOT TO BE OPENED BEFORE THE TENDER OPENING SESSION

NB1. Because express courier companies request the name and address of the sender on the transmittal slip, the fact that the Tenderers name appears on the envelope is not considered a cause for rejection. Art. 31.1 of the General Regulations shall therefore be interpreted accordingly and no offer shall be rejected on that basis

NB2. It is the Tenderers’ responsibility to ensure that their tender is inserted in suitably strong packaging and properly sealed

13

Part I: General

Article 33 - Opening of Tenders

33.1 Tenders will be opened in public session at 10:00 hours local time on 14/07/2008 at the following address:

BCL Ltd“Bobedi” Training RoomMine SiteSelebi PhikweBotswana

Article 34 - Evaluation of Tenders

Tenders will be evaluated in accordance with Article 34 of the GR supplemented by Appendix B1, Section B (Tender Evaluation Criteria).

Article 36 - Selection

The contract shall be awarded to the Tenderer who offers the most advantageous tender, which conforms to the administrative and technical requirements and is within the budget available, as assessed in accordance with Article 36.1 (b) of the General Regulations and Appendix B1, Section B (Tender Evaluation Criteria).

14

Part I: GeneralSECTION B – Instructions to Tenderers and Appendices

Appendix B1 – Tender Evaluation Criteria

Tenders will be examined in accordance with Article 34 of the GR. The evaluation will be carried out in three phases as summarised below:

1) 1st Phase: Administrative Compliance

The offers submitted are checked in regard to administrative compliance. Particular reference is made to Article 4 of the GR concerning eligibility and to the contents of the tender as outlined in Article 20 of the Instructions to Tenderers. Offers that do not substantively comply with the requirements will be rejected.

2) 2nd Phase: Technical Evaluation

Those tenders judged to be administratively compliant in accordance with paragraph 1 above, shall be evaluated technically. The Tenderer must satisfy the following fundamental requirements.

A) General and Specific Experience of Tenderer.

Proven experience of the Tenderer to undertake and successfully perform contracts of a similar nature to the scope of works detailed in Section F, demonstrated by the list required under Article 20. A.7 of the Instructions to Tenderers.

B) Financial Capability of Tenderer

The Tenderer is required to demonstrate that it has the financial capability to perform the Contract. To this end the Tenderer or if applicable, a joint venture partnership must provide such financial information as may reasonably be required by the Contracting Authority to establish the Tenderer’s financial ability to undertake and perform the Contract if awarded.

Audited Financial records for the last three completed tax years MUST be submitted with the tender.

The financial statements will be used to assess and establish the tenderers financial capability to support and sustain the work should they be awarded the contract. In short, to establish that the tenderer is solvent and that the work, if awarded, does not constitute more than 25% of the established turnover of the business.

In the event that the financial position of the tenderer has changed significantly since the last audited accounts were published, interim accounts will be accepted in addition to the audited accounts, together with a formal statement from the Board of Directors of the tenderer giving reasons for the change in the financial position.

C) Key Site and Management Personnel

The Tenderer is required to provide with the tender submission:

15



a) Details of the human resources they would propose to employ in the management of the exploration programme, including site organisation charts and detailed Curriculum Vitae for all key staff.

(b) The Tenderer must demonstrate that all key supervisory personnel dedicated to the Contract shall have adequate experience and proven qualifications which shall include work on mine exploration programmes in developing countries. This documentation must include essential front line personnel such as riggers and blasters.

c) For a Joint Venture the tender must identity from which company in the Joint Venture the persons proposed will come from.

D) Safety, Health and Environment

The Tenderer is required to submit with his tender a proposal for the implementation, management and control of the safety, health and environmental aspects of the project. This proposal should include the qualifications and experience of the persons designated to this task.

The Tender should provide safety statistics from similar exploration programmes undertaken (preferably in Southern Africa) in the past three years.

The Tenderer must confirm that the Contractor will fully comply with the requirements outlined in Section G “Contractors SHE Induction Programme”.

E) Plant and Equipment

An assessment will be made of each Tenderers proposal for the provision of site mechanical and electrical plant and equipment.

The Tenderer should provide with the submission a list of mechanical and electrical equipment it intends to employ at site in the undertaking of the works.

For a Joint Venture submission the Tender must also identify from which company in the Joint Venture the plant and equipment belongs.

F) Agreement of Joint Venture Partnership

In the event of a Tender submission by a joint venture partnership, the Contracting Authority will assess the arrangements which bind and commit the parties to the each other and to the Contract and will require the following:

a) The Tender shall be signed in a way that legally binds all partners.

b) One partner shall be appointed as the Leading Partner responsible for the Contract and such appointment shall be confirmed by submission of Powers of Attorney signed by legally authorised signatories representing all the individual partners.

16



c) The Tender shall include a preliminary agreement or a letter of intent stating that all partners shall be legally responsible, jointly and severally, for the execution of the Contract, that the Leading Partner shall be authorised to obligate and receive instructions for and on behalf of each and all partners, and that the execution of the Contract, including payments, shall be the responsibility of the Leading Partner.

d) All partners in the Joint Venture/Consortium shall be bound to remain in the Joint Venture/Consortium for the whole period of the execution of Contract.

G) Period of Performance

The works are required to be completed within 400 days from the start date indicated on the contract award, and at the latest by 31 December 2009.

Tenderers offering a performance period in excess of this duration will be rejected. Tenderers who consider that the scope of the work can be completed within the performance period should state their best contract completion proposal. Period of performance will be taken into account in the financial evaluation of the bids (see financial evaluation below).

3) 3rd Phase: Financial Evaluation

Only those tenders deemed to satisfy the 1st and 2nd phases shall be evaluated financially in phase 3.

Tenders will be checked for financial conformity with the requirements of the tender dossier. The Contract Price Schedule and rates for additional services provided with the Tender will be checked to ensure that they are arithmetically correct. Errors will be rectified as per Article 34.7 of the GR and the resulting amount will be binding upon the Tenderer in accordance with Article 34.8 of the GR. Only prices of tenders having satisfied phases 1 and 2 of the evaluation and corrected for arithmetical errors will be utilised in financial evaluation

The contract price will be evaluated on the overall price of the works, period of performance and rates for additional services as quoted by the Tenderer in Appendix F1, according to the weighting system below:

17



Element Score, S weight, W Weighted score, S*W

A. Works 70

B. Delivery 20

C. Additional Services 10

Aggregated score A+B+C

Each tender will be scored according to the following method:

Lowest price for works amongst all tendersScore of tender X for works price = ---------------------------------------------------------

Price for works of tender X

Shortest period of performance amongst all tendersScore of tender X for period of performance = -----------------------------------------------------------------------

Period of performance of tender X

Lowest rate for additional services amongst all tenders Score of tender X for additional services = ------------------------------------------------------------------------

Rate for additional services of tender X

The Contract shall be awarded to the Tenderer whose tender is thus determined to be the most advantageous offer. i.e. the one yielding the highest aggregated score. The Contracting Authority is not obliged to accept any of the Tenders submitted.

18


Appendix B2 – Tender Guarantee Format

(EDF Works Contract)

Guarantee No: ……………………….Project Title and No: Economic Diversification of the Mining Sector (8 ACP BT 013)Invitation to Tender No: EuropeAid/127062/D/WKS/BW

Lot No.1: BCL Phase IV Exploration Drilling Programme

To: BCL LimitedMine SiteP. O. Box 3, Selebi PhikweBotswana

Whereas (name and address of Tenderer) ……………………………………………………………...…………………………………………………………………………………………………………………hereinafter called “the Tenderer”, has submitted this tender for the ……………….. ……………………………………. Invitation to Tender No…….. Lot No.: ……………..…………………...and whereas it has been stipulated that the Tenderer shall furnish you a guarantee which may be called up under these conditions:

1. If the Tenderer withdraws his tender during the period of tender validity of his tender; or

2. If the Tenderer, having been notified of the acceptance of the Tender by the Contracting Authority during the period of tender validity:a) fails within the specified time limit to sign the Contract; orb) fails within the specified time limit to furnish the required performance guarantee

and whereas we, the undersigned ………………………………………………………………………..……………………………………………………………………………………………………………………………………………………………………………………………………………………………………(name and address of the Financial Institution, e.g., Bank, Insurance Company, etc.) have agreed to give the Tenderer a guarantee:

Therefore we hereby guarantee as primary obligor and not merely as a surety, on behalf of the Tenderer, the payment to you, without contestation and upon receipt of your first written demand declaring that the amount claimed by you is due to you owing to the occurrence of one or both of the two above conditions, of a sum of ……………………………………………………………………

This guarantee will remain in force up to and including Sixty (60) days after period of tender validity.

Any request of pay under the terms of the guarantee must be countersigned by the Head of Delegation of the European Commission in the State of the Contracting Authority.

The law and the jurisdiction applicable to the guarantee shall be that of (ACP or EU Member State where the guarantee is issued).…………………………………………

………………………………………………..Signature of Guarantor / Seal of Guarantor.

19


(NB - Not a Contract Document)

Appendix B3 – Notes of General Information

1. GEOGRAPHY

Botswana is a landlocked country straddling the Tropic of Capricorn in the centre of the Southern African plateau. The country is relatively flat with a mean altitude of 1000 m above sea level and the total land area is 582 000 square kilometers - about the size of France or Kenya or the state of Texas in the USA. Botswana shares its borders with the Republic of South Africa on the South and South-east, Namibia in the West and North, Zimbabwe in the North-east and Zambia in the North.

Most of Botswana is covered with the thick sand layers of the Kgalagadi Desert which accounts for more than two thirds of the total land area. The Kgalagadi supports a vegetation of scrub and grasses, but there is an almost complete absence of surface water. The eastern region has a somewhat less harsh climate and more fertile soils than elsewhere; and it is here that most Batswana live. The North-west is characterised by the Okavango Delta - a vast inland drainage of the Okavango River from Angola.

The major towns, including the capital Gaborone, Francistown and Selebi-Phikwe are found in the Eastern part where there are international road, rail and air links. Air and tar roads links are also available to Maun and Kasane. Its nearest coast is about 1,100 kms away (Durban, South Africa).

2. CLIMATE

Botswana is situated close to the subtropical high pressure belt of the southern hemisphere. As a result, the country is largely arid or semi-arid with average rainfall ranging from about 650 mm in the extreme North-east to less than 250 mm in the extreme South-west. Most of the rainfall occurs during the summer months of October to April.

Average daily maximum temperatures range from 20 degrees Celsius in July to 33 degrees Celsius in January. Average daily minimum temperatures range from 5 degrees Celsius in July to 19 degrees Celsius in January. The lowest temperatures occur in the South-west where early morning frost may occur during June to August.

3. LOCATION OF EXECUTION OF THE CONTRACT

The site for the works is located within the mining concession of BCL Limited, Mine Site, Selebi Phikwe (400km North and Est of Gaborone), in the Republic of Botswana.

4. TAX, CUSTOMS AND EXCISE

Botswana is a member of the Southern African Customs Union which includes Lesotho, South Africa, Namibia and Swaziland.

The effective company tax rate, under a two-tier system, is 25% of the taxable income. Duties and all taxation will apply in accordance with the Rules of the State of the Contracting Authority. A Witholding Tax is required to be deducted for all Royalties, management/technical fees, entertainment as well as construction contracts by the Government of Botswana from all contractors. For foreign contractors there are different rates which are applied (refer to Table 1 below), however, Tenderers are encouraged to contact their own tax authorities for guidelines relating to their individual Witholding Tax obligations. Government of Botswana tax Certificates will be available for submission to the

20



relevant tax authorities. Value Added Tax (VAT) is applicable to all purchases. The Tenderer should seek clarification from the relevant authority on any exemption. The current rate of VAT is 10%.

Table 1 Schedule of Witholding Taxes effective July 2004

5. NORMAL WORKING HOURS

Normal working hours in the mining industry are 48 hours per week. Overtime is paid at the rate of time and a half (x 1.5) after hours and on Saturdays and double time (x 2) on Sundays.

Note: This information is provided to allow the Tenderers to budget for wage costs within the Schedule of Rates included in their bid submission. Under no circumstances will additional payments be made by the Contracting Authority for overtime working by the Tenderers staff, unless specifically agreed in writing in advance by the Supervisor.

6. WAGE RATES

Labour Policies, Conditions of Service and wages are governed by the Botswana Employment Act of 1982 as amended from time to time and also by the Revised National Policy on Incomes, Employment, Prices and Profits of 1990. Further information can be obtained from the Department of Labour and Social Security, Private Bag 0072, Gaborone, Botswana. Tel: (+267) 3611500 Fax: (+267) 3913584

7. WORKMEN'S COMPENSATION

Employees who may suffer injury or death or contract disease in the course of their employment shall receive benefits which shall be those stated in the Workmens' Compensation Act 1977 (Act 43/77) of the Statute Laws of the Republic of Botswana and any amendments thereto. Contractors are required by law to effect the necessary insurance cover referred to in the Act through an insurance company registered in Botswana.

8. CURRENCY AND EXCHANGE CONTROL

Botswana's monetary unit is Pula (BWP) which is divided into 100 Thebe (T).

The exchange rates exclusively applicable for this contract should be in accordance with Article 56 of the Special Conditions. The exchange control regulations are administered by the Bank of Botswana who appoints commercial banks as authorised dealers. Barclays Bank, First National Bank, Stanbic Bank and most other international commercial banks operate in Botswana. Temporary residents may maintain bank accounts. Major international credit cards are accepted by the up-market shops, hotels and restaurants.

21



There are currently no exchange controls in Botswana that prohibit the remittance of profits. It is the responsibility of the Tenderer however to establish with the Bank of Botswana current regulations pertaining to this matter.

9. AIR LINKS

Air companies operating in Botswana are Air Botswana (the National carrier), South African Airways and Namib Air (to Maun). There are only regional flights to certain Southern Africa States.

There is no airport tax transaction at airports in Botswana; airport tax is prepaid with air tickets. The nearest airport with connections to Gaborone is Francistown which is 150km North of SelebiPhikwe.

10. OTHER INFORMATION

More information on various topics can be obtained from the following:

a) Visa and Residence PermitsDepartment of Immigration and CitizenshipP O Box 942GABORONE, BotswanaTel: 3974545 Fax: 3952996

b) Exchange ControlBank of BotswanaP O Box 712GABORONE, BotswanaTel: 3951911 Fax: 3972984, 3913829, 3913890

c) BEDIAP O Box 3122GABORONE, BotswanaTel: 3181931 Fax: 3181941

d) Botswana Unified Revenue ServicesPrivate Bag 0013GABORONE, BotswanaTel: 3614600 Fax: 3953101

e) CustomsDepartment of Customs and ExcisePrivate Bag 0041GABORONE, BotswanaTel: 3974545 Fax: 3953996

f) TourismDepartment of TourismPrivate Bag 0047GABORONE, BotswanaTel: 3953024 Fax: 3908675

22


Annex to Notes of General InformationTax and Customs Arrangements

(Lome IV Convention, as revised in Mauritius on 04.11.1995)Article 308The ACP States shall apply to contracts financed by the Community tax and customs arrangements no less favourable than those applied by them to the most-favoured States or international development organisations with which they have relations. For the purpose of determining the most-favoured-nation treatment, account shall not be taken of arrangements applied by the ACP State concerned to other ACP States, or to other developing countries

Article 309Subject to Article 308 above, the following shall apply to contracts financed by the Community:

(a) the contract shall not be subject in the beneficiary ACP State to stamp or registration duties or to fiscal charges having equivalent effect, whether such charges already exist or are to be instituted in the future; however, such contracts shall be registered in accordance with laws in force in the ACP State and a fee corresponding to the service rendered may be changed for it;

(b) profits and/or income arising from the performance of contracts shall be taxable according to the internal fiscal arrangements of the ACP State concerned, provided that the natural or legal persons who realise such profit and/or income have a permanent place of business in that State, or that the performance of the contract takes longer than six months;

(c) enterprises which must import professional equipment in order to carry out works contracts shall, if they so request, benefit from the system of temporary admission as laid down by the national legislation of the beneficiary ACP State in respect of the said equipment;

(d) professional equipment necessary for carrying out tasks defined in a service contract shall be temporarily admitted into the beneficiary ACP State or States in accordance with its national legislation free of fiscal, import and customs duties and of other charges having equivalent effect where these duties and charges do not constitute remuneration for services rendered;

(e) imports under supply contracts shall be admitted into the beneficiary ACP State without customs duties, import duties, taxes or fiscal charges having equivalent effect. The contract for supplies originating in the ACP State concerned shall be concluded on the basis of the ex-works price of the supplies, to which may be added such internal fiscal charges as may be applicable to those supplies in the ACP State;

(f) fuels, lubricants and hydrocarbon binders and, in general, all materials used in the performance of works contracts shall be deemed to have been purchased on the local market and shall be subject to fiscal rules applicable under the national legislation in force in the beneficiary ACP State;

(g) personal and household effects imported to use by natural persons, other than those recruited locally, engaged in carrying out tasks defined in a service contract and members of their families, shall be exempt from customs or import duties, taxes and other fiscal charges having equivalent effect, within the limit of the national legislation in force in the beneficiary ACP State.

Article 310Any matter not covered by the provisions of Articles 308 and 309 shall remain subject to the national legislation of the ACP State concerned.

23

Part I: General

SECTION C - General Regulations for Works, Supply and Service Contracts Financed by the European Development Fund (EDF)

(Official Journal of the European Communities L382, 31/12/1990, pp. 3 – 22)

24

Part I: General

SECTION D – Contract Form

CONTRACT No……………………..

This Contract is Between:

BCL Limited, Mine Site, Selebi Phikwe, Botswana, on the one part (hereinafter called the "Contracting Authority").

and: ………………………………………………………………………………………… of /or whose registered office is situated at …………………………………………….………… …… ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………(hereinafter called "the Contractor") of the other part

IT HAS BEEN AGREED AS FOLLOWS:

1. The purpose of this Contract is to …………………………………………. ………………………………………………………………………….. in accordance with the Invitation to Tender No EuropeAid/127062/D/WKS/BW and the Contractor’s Tender Proposal reference …………………. BCL Phase IV Exploration Drilling Programme dated ……………...

2. The following documents shall be considered and interpreted as constituting an integral part of this Contract, in the order of priority set out below:a) Notification of Award of Contract b) Contract Formc) Contract Price Schedule (Appendix E1, Section E)d) Schedule of Rates for Additional Services. (Appendix F1, Section F) e) the Contractor’s Tender Documents and its Annexesf) the Special Conditionsg) the General Conditions for Works Contracts Financed by the EDFh) the Technical Specifications

3. The Contract Price is (in figures) : BWP…………..figures………….(…………. In words…………………………………………………………………………..Botswana Pula)

4. In return for the payments to be made by the Contracting Authority to the Contractor, subject to the conditions laid down in the Contract, the Contractor hereby undertakes to perform the Contract in accordance with the contract provisions.

5. In return for the performance of the Contract, the Contracting Authority hereby undertakes to pay the Contractor the sums specified herein at the intervals and in the manner specified.

25

Part I: General

The Contractor

Name: ……………………………..

Address: ……………………………..Address: ……………………………..……………………………..……………………………..……………………………..

Signature ……………………………..

Date: ……… / ……… / ………...

Stamp:

The Contracting Authority

Name: Mr. M. Mphathi.

Address: BCL LimitedBCL MineSelebi PhikweBotswana

Signature ……………………………..

Date: ………… / …………/…………

Stamp:

Approved

National Authorising Officer of the European Development FundAddress:

Ministry of Finance and Development PlanningPrivate Bag 008Gaborone, Botswana

Signature……………………………..

Date: ........... / .......... / ..........

Stamp:

Approved

The Head of Delegation

Address:Address:

Delegation of the European Commission in BotswanaPO Box 1253,Gaborone, Botswana

Signature……………………………..

Date: ............ / ............ / ............

Stamp:

26

Part I: GeneralSECTION D – Contract Form

Special Conditions of Contract

These Special Conditions, hereinafter referred to as the “SC”, are provided in accordance with Article 1.2.c of the GR and Article 1.1 of the General Conditions for Works Contracts financed by the EDF, hereinafter referred to as the “GC”, published in the Official Journal of the European Communities L382 of 31.12.1990 and reproduced in Section D. Where they exist, the SC supplement, make explicit, amend or derogate from the GC. Unless otherwise provided in these SC, the GC referred to above remain fully applicable and should be read in conjunction with these SC of Contract. The numbering of the Articles of the SC mentioned hereafter corresponds to the numbering of the Articles of the GC of Contract.

Article 1 - Definitions:

Modify and amend in GC, Article 1.1 the following definitions:

EEC/EU: the Member States of the European Union

The State of the Contracting Authority :

The Republic of Botswana

Contracting Authority :

BCL LimitedMine SitePO Box 3Selebi PhikweBotswanaTel. +267 262 15 18Fax. +267 261 11 64

Supervisor :

General ManagerBCL LtdMine SiteSelebi PhikweBotswanaTel: +267 262 1303Fax: +267 261 04 41

Supervisor’s representative:

EDMS Project ManagerBCL LimitedMine SiteSelebi PhikweBotswanaTel. +267 262 15 18Fax. +267 261 15 18

27



Delegate : The Head of Delegation, Delegation of the European Commission in BotswanaPlot 758, Robinson RoadP. O. Box 1253GaboroneBotswanaTel: +267 391 44 55; Fax: +267 391 36 26

EDF : European Development Fund

National Currency: The Botswana Pula

Foreign Currency: The EURO and/or any other foreign currency

Article 2 - Law and Language of the Contract:

2.1 The law of the contract shall be the law of the Republic of Botswana.

2.3 The language of the contract and of all communications between the Contractor, Contracting Authority and Supervisor or their representative shall be English.

Article 3 - Order of Precedence of Contract Documents

3.1 The contract shall be made up of the following documents listed in order of precedence account being taken, where necessary of changes or corrections:

a) Notification of Award of Contract b) Contract Formc) Contract Price Schedule (Appendix E1, Section E)d) Schedule of Rates for Additional Services. (Appendix F1, Section F) e) the Contractor’s Tender Documents and its Annexesf) the Special Conditionsg) the General Conditions for Works Contracts Financed by the EDFh) the Technical Specifications

Subject to the above, the different documents constituting the Contract shall be considered as mutually explanatory, but in case of ambiguity or differences of interpretation, the documents will be interpreted and amended by the Contracting Authority in conjunction with the Supervisor, who shall then issue corresponding instructions to the Contractor concerning the conditions of sites and the scale of the works.

28



Article 4 - Written Communications

4.1 Communications between the Contracting Authority and/or the Supervisor on the one hand, and the Contractor on the other hand, shall be by post, cable, telex, facsimile transmission or by personal or courier delivery to the appropriate addresses designated by those parties for that purpose.

Article 5 - Supervisor and Supervisor’s Representative

5.2 The Supervisor’s Representative shall have the authority, in conjunction with the Contracting Authority, to supervise and check the works and to test and examine the materials used and the quality of execution. In no instance shall he have the power to discharge the Contractor from his contractual obligations nor, without express instructions in these conditions or elsewhere in the contract, may he order any works taking additional time or entailing extra costs for the Contracting Authority or call for variants in the nature or scale of the works.

Article 8 - Supply of Documents

8.2 The Contractor shall be entitled without further consent being sought, to communicate the Drawings, specifications and other documents provided by the Contracting Authority, to sub-contractors approved in accordance with Articles 7.1 and 7.2 of the GC.

Article 9 - Access to Site

9.5 Pursuant to the provisions of Article 9.1, the Contractor shall afford and allow access to site at all reasonable times for other persons concerned with carrying out their work, i.e. staff of the Contracting Authority, staff of the Supervisor and staff of other firms or entities duly authorised by the Contracting Authority.

9.6 The attention of contractors is drawn to the fact that there is a Delegate of the European Commission in the country of the Contracting Authority. Contractors are required to give him/her free access to sites, plant, workshops, and the like, and generally make available to him/her all relevant facilities for carrying out his/her duties on the same footing as the Contracting Authority or the Supervisor. These provisions are also applicable to duly designated representative of the Delegate. A copy of any correspondence between the Contractor and the Contracting Authority or Supervisor should be sent for information purposes to the Delegate.

Article 12 - General Obligations

12.2 Whilst not limiting the generality of this Article, the Contractor and the Contractor's Staff, which shall include Sub-contractors and Sub-contractors' staff, shall during the performance of the Works, be subject at all times to BCL Limited Safety Health and Environmental (SHE) Programme.

Article 13 - Superintendence of the Works

13.3 The words “work register” in Article 13.3 of the GC are amended to read “Shift Reports and/or other Documentation”.

29



Article 14 - Staff

14.3 (a) Staff shall include all persons employed directly or indirectly (via a sub-contract) by the Contractor on Site for the purposes of the Contract.

(b) Staff employed in managerial positions and Senior Staff employed for superintendence on site, must be fluent in English.

(c) The Contractor shall provide staff as set out in the Contract and if more than two staff members are on Site at any time, shall nominate a senior person who shall represent the Contractor.

(d) The Contractor shall ensure staff are in all ways suitable for the work to be done and have adequate working knowledge of the English language and the S.I. system of units.

(e) The Contractor shall, if so requested by the Supervisor, submit to the Supervisor for approval by the Contracting Authority, a detailed curriculum vitae and statement of suitability for any key staff new to the Site and not detailed in the Contractor’s list of staff nominated for the Contract.

(f) The Contractor’s representative shall report to and shall be responsible and accountable to the Supervisor’s Representative for the Works, who shall be notified to the Contractor prior to the commencement of the work at Site.

(g) The Contractor undertakes to provide replacement staff without undue delay and free of cost to the Contracting Authority, in the event that for any reason agreed between the Contractor and the Contracting Authority, staff have to be replaced. The reasons which may give rise to a replacement being required include, inter alia, resignation of staff before completion of the work, any prolonged illness, absenteeism, unseemly conduct, inadequacy for the work or non-adherence to the requirements of the Contractors Safety, Health and Environmental Induction Programme outlined in Section G.

Article 15 - Performance Guarantee

15.1 The amount of the guarantee specified under Article 15.1 shall be Ten Per cent (10%) of the Contract Price.

15.3 The format referred to in Article 15.3 is shown in Appendix D1 to the Instructions to Tenderers (Section D of Part I of the Tender Dossier).

15.4 The Performance Guarantee shall be denominated in the types and proportions of the currencies in which the Contract is payable.

15.8 The guarantee shall be released in full within 30 days of the issue of the signed final statement of account referred to in Article 51 of the GC.

30



Article 16 - Insurance

16.3 The insurance referred to shall take into account current provisions under the Workmen's Compensation Act.

16.4 The Contractor shall at its own expense and in the joint names of the Contracting Authority and himself, take out insurances with an approved insurer and maintain the policies during the continuance of the Contract or extension thereto. The "insured" shall apply to each of the parties comprising the "insured" as if a separate policy of insurance had been issued to each of them. The failure by any insured to observe and fulfill the terms of the policy shall not prejudice the insurance in regard to any of the other insured. Such insurances shall provide appropriate to cover:

- the Contractor's liability in respect of personal injuries or death for an amount to be not less than BWP 25,000,000 (or equivalent in the currency of the Contractor's country) which amount shall apply to each and every occurrence or series of occurrences arising out of one source or original cause save for gross and manifest negligence or deliberate act or omission calculated to cause substantive damage

- the Contractor's liability in respect of damage to property for an amount to be not less than BWP 25,000,000 (or equivalent in the currency of the Contractor’s country) which amount shall apply to each and every occurrence or series of occurrences arising out of one source or original cause save for gross and manifest negligence or deliberate act or omission calculated to cause substantive damage

- employer's liability in respect of the Contractor's staff which shall be unlimited as to number of claims and shall provide cover in respect of each and every claim to an unlimited amount and shall include the interests of the Contracting Authority and the Supervisor as insured parties. Should the Contractor employ sub-contractors, the Contractor shall ensure that each of its sub-contractors insures itself in like terms in respect of its employees engaged in doing anything for the purpose of exercising the rights or performing the obligations of the Contractor under the Contract.

- "all risks" insurance to cover loss of or damage to all the Contractor's plant, materials, equipment, facilities and items comprising the property of the Contractor whilst such are on or adjacent to the Site, for an amount not less than their replacement value.

- sufficient insurance to cover the cost of any medical or dental treatment to its staff in Botswana not recoverable from the medical / dental scheme of the Contract's country (if such exists) and for the repatriation of staff should this prove necessary.

- third party liability insurance in connection with the ownership, operation and use of equipment and vehicles which are licensed or required to be licensed in accordance with statutory requirements.

16.5 The Contractor shall be required to produce to the Contracting Authority upon request, copies of the insurance policies required under the Contract and receipts for the payment of the current premiums.

31



If the Contractor fails to effect or to keep in force any of the insurances required under the Contract, the Contracting Authority may without prejudice to the Contracting Authority's rights or the Contractor's obligations hereunder, effect and keep in force any such insurance and pay such premiums as are necessary for that purpose and the Contracting Authority shall be entitled to recover the costs in respect thereof from the Contractor and may offset such costs from monies due to the Contractor under the Contract.

All insurances required to be effected by the Contractor under the Contract shall contain the following provision:

”The insurer shall, whenever it gives to or serves upon the Contractor a notice of cancellation or any other notice under or in relation to the policy which directly affects the Contract, at the same time inform the Contracting Authority in writing that the notice has been given to or served upon the Contractor”.

Article 17 - Performance Programme

17.1 The Contractor shall submit, within 30 calendar days following the notification of contract award as described in Article 33.1 of the GC, five copies of a finalised detailed Programme, for the approval of the Supervisor, showing:

a) proposed practical activities and the sequence of work to be carried out for each of the sections included in the Works.

b) the planned starting and completion dates of the activities, critical activities and activities with slack.

c) the general arrangements and methods the Contractor proposes to adopt for carrying out the Works and the resulting dependencies of activities.

d) time limits and times needed for submittals and approvals of drawings, materials, certificates, shop drawings, catalogue data and the like as required under the Contract.

e) such further details and information as the Contracting Authority or the Supervisor may reasonably request.

17.4 Five copies of an updated Programme shall be delivered to the Contracting Authority and/or Supervisor once a month; the updated Programme shall show actual starting and completion dates reported and a consequence calculation for activities not yet commencing. No new activities shall be added and no duration of activities not completed shall be changed unless ordered under the provisions of Article 17.3.

32



Article 18 - Detailed Breakdown of Prices

18.2 Within a period of 30 calendar days following the notification of contract award the Contractor shall provide to the Supervisor for his information only, a detailed cash flow estimate showing monthly payments which may become due to the Contractor under the terms of the Contract. The Contractor shall supply updated cash flow estimates, if so requested by the Supervisor. The provision of such data and information shall not impose any liability on the Contracting Authority or the Supervisor.

Article 22 - Security of Sites

22.1 The Contractor's employees must at all times comply with the security requirements of BCL Limited. Failure to do so may result in the individual(s) concerned being dismissed from Site and/or being liable to prosecution.

The Contractor's employees shall be provided with identification cards by BCL Limited, which must be worn by the Contractor's employees whilst at the Site and when entering and leaving.

BCL Limited’s security officers shall have the right to search any vehicle leaving the Mine Site.

The Contractor shall replace any of its employees found in prohibited stores areas without authorisation or found stealing. In the latter regard, the individual(s) concerned shall be reported to the Botswana Authorities who may take criminal proceedings.

22.3 Any stores areas controlled by the Contractor, shall be adequately fenced and supervised.

The Contractor shall take all essential steps, at his own responsibility and costs, to ensure that all existing trees, plants and vegetation are protected, preserved and maintained.

Article 33 - Commencement Orders

33.1 The Contracting Authority shall fix the date on which performance of the Contract is to commence and advise the Contractor by Administrative Order issued by the Supervisor following the signing of the Contract by the Contracting Authority.

Article 34 - Period of Performance

34.1 The period of performance shall commence on the date fixed in accordance with Article 33.1 and shall be ……. days as per completion time indicated in the tender form.

33



Article 36 - Delays in Performance

36.1 The liquidated damages for delays in performance shall be 0.15% of the Contract price for every day or part thereof which shall elapse between the end of the contractual period for performance and the actual date of completion, up to a maximum of 10% of the Contract Price.

Article 37 - Variations

37.2 b) If the Contractor shall confirm in writing an oral order given for the purpose of Article 37.2 a) and if the confirmation shall not be contradicted in writing by the Contracting Authority and / or the Supervisor within a period of 7 calendar days from the date and time of his receipt of such confirmation, an Administrative Order for the variation shall be deemed to have been issued.

Article 39 - Work Register

Article 39 of the GC is amended to read as follows:

The Contractor shall complete and furnish to the Supervisor’s Representative at the end of each shift, in a form approved by BCL Limited, a report giving the following accurate information:

- A statement of:- all personnel employed- depth of hole drilled (from/to)- any zone of lost sample- any shutdown, the shutdown time and reasons thereof; and- all materials used or left in any hole

- A statement of the components and quantities used in or injected into the drilling media, including without limitation drilling muds.

- A statement of all casing lengths and their respective sizes left in the drill holes together with a description of their condition.

- A report of the time spent on all phases of drilling each hole.

The Contractor shall complete and furnish to the Supervisor’s Representative at the end of each month worked, a Safety Health and Environmental (SHE) report, in a format approved by BCL Limited.

The Contractor shall report accidents and incidents to the Supervisor’s Representative, in a form approved by BCL Limited.

The Supervisor’s Representative shall acknowledge receipt of the above mentioned reports in writing, and shall in such acknowledgement signify any aspects with which he is not satisfied, whereupon BCL Limited and the Contractor shall in good faith attempt to resolve any aspects in dispute, failing which such a dispute shall be resolved in accordance with Article 68.

34



Article 40 - Quality of Works and Materials

40.1 The works and the components, equipment, items and materials employed for the works shall conform to the specifications of the technical requirements attached to this tender documents. The standards and regulations referred to in the documents contained in the tender dossier shall merely serve as a guide to the minimum quality of the works and structures, the materials and supplies to be employed and the criteria normally used to establish such minimum quality.

With the exception of the fuel, lubricants and hydrocarbon binders, the materials and supplies required to carry out the works and services contracted for must originate in the EU or an ACP State. Materials and supplies may, however, be bought on the local market of the State of the Contracting Authority, whatever their origin as long as they have been imported under quotas and concern only small quantities of the main material used or materials and supplies required only in small quantities. The agreement of the authorities must be sought before such purchases are made.

Equipment needed to perform the Contract (machinery, apparatus and tools) may be of any origin as long as it was in the Contractor’s possession when the tender was submitted. If the Contractor has to buy equipment to carry out the Contract whether to constitute or supplement his stock, the newly purchased equipment must originate in the EU or an ACP State.

PAYMENTS

Article 44 - General Provisions

44.1 Payments shall be made in Pula (BWP) the National Currency of Botswana, except that part of the payment as requested by the Contractor in his Tender Form, which shall be paid in foreign currency. Justifications and grounds for payments in foreign currency are required to be submitted with the Tender.

44.2 All payments will be made according to the standard procedure of the European Development Fund. Statements of account must be sent by the Contractor in five copies and conform to the model laid down by the Contracting Authority to the address of the Contracting Authority specified in Article 1 of the SC.

Payment authorisations shall be issued following the usual procedures for EDF financed contracts on the basis of supporting documents that have been duly endorsed by the competent authorities.

Foreign currency payments will be made in accordance with the exchange rates fixed in accordance with Article 56 of these Special Conditions. The rate so established shall be fixed for the duration of the Contract and shall be :

1 BWP = ………………………(specified currency).

44.3 The bank accounts established by the Contractor for such transactions are:

35



For payments in the local currency:Account number: .......................................................................................................Bank: .......................................................................................................Address: .......................................................................................................

For payments in the specified foreign currency:

Account number: .......................................................................................................Bank: .......................................................................................................Address: .......................................................................................................Swift Code: .......................................................................................................

Article 46 - Advances

46.1 Advances shall be granted to the Contractor, at his request, for operations connected with the execution of the Works, in the cases listed hereinafter:

a) Lump Sum advances: on being notified of award of the contract, the Contractor has a right to request with no requirement to provide evidence of expenditure, an advance to defray the cost of starting up work; and/or

b) Advances may be made to the Contractor, at his request for the purchase or ordering of materials, plant and equipment for the execution of the contract on the basis of supporting documents.

46.2 The amount of advances granted to the Contractor under Article 46.1.a and 46.1.b shall not exceed respectively 10 % and 20% of the Contract Price excluding Client Budget Provisions and VAT.

46.8 Repayment of advances accorded under the above provisions shall be effected by deductions based on the statements of account.

1. The repayment of lump-sum advances is effected by deductions from interim payments and, if necessary from the balance due to the Contractor. Repayment shall start with the first interim payment due under the Contract and shall be completed by the time the sum of the interim payments reaches 90%. The amount to be deducted from each interim payment shall be calculated using the following formula.

R = Va x D Vt x 0.9

Where: R = the amount to be repaidVa = the amount of the advanceVt = the initial value of the contract (less provisional sums)D = the amount of the interim payment (less revision of prices)

All amounts are expressed ex-VAT.

2. The repayment of advances for materials plant and tools and advances for other major items of initial expenditure shall be effected by deductions from interim payments

36



and if necessary from the balance due to the Contractor. Repayment shall start with the first interim payment due under the Contract and shall be completed by the time the sum of the interim payments reaches 80%. The amount to be deducted from each interim payment shall be calculated using the following formula.

R 1 = Va 1 x D Vt x 0.8

Where: R 1 = the amount to be repaidVa 1 = the amount of the advanceVt = the initial value of the contract (less provisional sums)D = the amount of the interim payment (less revision of prices)

All amounts are expressed ex-VAT.

Article 47 - Retention Sum

47.1 The sum which shall be retained from interim payments by way of guarantee that the Contractor’s obligations will be met during the maintenance period shall be 5% of each interim payment ex-VAT, as defined in Article 50.1.g of the Special Conditions.

47.2 A retention guarantee is not acceptable on this contract.

Article 48 - Revision of Prices

48.1 The Contract shall be a fixed price contract and prices shall not be revised – except for statutory fluctuations as stipulated below:

Fluctuations in Rates of Wages:

Fluctuations in rates of wages and/or allowances to persons employed on the works whether on the site or in the workshops or yards and employed by the Contractor or Sub-contractors (but excluding employees of merchants or suppliers) will only be recognised where caused by Government notice amending the rates of wages and/or allowances described hereinbefore and when occurring between a date thirty days before the deadline for submission of Tenders and the date for completion of the Works inserted in the Conditions of Contract or any amendment thereto under Article 35 as aforesaid. The net amount of such fluctuations will be added to or deducted from the Contract Sum.

The Contractor is to submit WEEKLY to the Contracting Authority receipted time sheets together with a weekly return of the number of hours worked all of which shall be signed by a representative of the Contractor approved by the Contracting Authority. No claim for fluctuations in wages will be admitted after the Date of Completion of the Contract. Statutory Fluctuations will apply to those categories only listed in Section E – Appendix E4 – Statutory Fluctuations in Rates of Wages – Schedule.

37



Article 49 - Measurements

49.1b) These Contracts are Unit Price Contracts

Article 50 - Interim Payments

50.1 The Contractor shall submit an application to the Supervisor, in one original and two copies; at the end of each period referred to in Article 50.7 in a form approved by the Supervisor, containing the following information:

a) The Contract Price revised with the costs of any variation issued, revision of prices agreed upon, approved claims and any other moneys agreed upon as being due under the Contract.

b) the accumulated contract value of the permanent works executed up to the end of the period in question, thereunder.

c) the accumulated value of work executed in respect of variations issued in under the provisions of Article 37.

d) an accumulated amount of any revision of prices approved pursuant to the provisions under article 48.

e) 80% of the invoiced value of materials, plant and supplies on site and intended for the permanent incorporation in the works pursuant to the provisions under Article 50.2.

f) the accumulated amount of claims approved pursuant to the provisions under Article 55.

g) the net amount applied for as an interim payment, ex VAT.

h) the accumulated value to be withheld as a retention sum under the provisions of Article 47.

i) if payment in foreign currencies was requested, the percentages stipulated as applied to the net amount.

j) the amounts to be deducted as repayment of advances granted under the provisions of Article 46 of the Contract, calculated on the interim payment ex-VAT referred to under point g above.

k) any other sum to which the Contractor or Contracting Authority may be entitled.

l) VAT should be invoiced separately by the Contractor and submitted to the Supervisor’s Representative, who will arrange for payment to be made directly by BCL Limited.

50.2 Ownership of plant, supplies and materials paid for under the provisions of Article 50.1 shall be deemed to be vested in the Contracting Authority.

38



Article 53 - Delayed Payments

53.3 Where payment is in an European currency, the interest rate shall be one and a half percentage points higher than that applied by the European Central Bank to its main refinancing operations, with effect from the first day of the month in which the payment should have been made. This rate is published each month by the Commission in the Official Journal of the European Communities (OJEC).

Where payment is in any other currency, the rate shall be the rediscount rate applied by the Central Bank of the State of that currency. Interest on late payment shall be payable for the time elapsed between the end of the 90 day period within which the Commission should have made the payment and the date on which the late payment was made.

Article 56 - Payments in Foreign Currency

56.1 Where under the Contract the Contractor is entitled to payments in foreign currency, the rates of exchange for calculating the payments shall be those published in the “S series of the Official Journal of the European Communities as determined by the Authority 30 days prior to the latest date fixed for the submission of tenders for the Contract. Such rates of exchange shall not be varied.

39



Article 61 - Maintenance Obligations

There are no maintenance obligations on the Contractor in respect of the contracts for any Lot.

Article 64 - Termination by the Contracting Authority

64.8 The maximum amount is set at 10% of the contract price.

Article 65 - Termination by the Contractor

65.3 The maximum amount is set at 10% of the Contract Price.

Article 68 - Settlement of Disputes

68.2 Any dispute over the Contract between the Contracting Authority and the Contractor before or after completion, before or after termination, abandonment or suspension of the contract, shall be submitted to the Supervisor, who will rule on the matter and notify his decision in writing to the Contracting Authority and the Contractor within 90 days.

If within 45 days of notifications of the Supervisor’s decision, no request for arbitration has been made by either the Contracting Authority or the Contractor, the decision shall become final and binding on both the parties.

If within 45 days, there is no notification of the Supervisor’s decision or if either the Contracting Authority or the Contractor is not satisfied with the decision, the Contracting Authority or the Contractor may agree to the settlement of the dispute by conciliation and/or arbitration.

68.3 In the event that the Contractor and the Contracting Authority agree to settle the dispute by conciliation:- The conciliation party will be mutually agreed between the Contractor and the

Contracting Authority.- The maximum period of resolution of the dispute by conciliation will be 45 days.

68.5 In the absence of an amicable settlement or settlement by conciliation, the dispute shall be settled in accordance with Article 68.5 of the General Conditions.

40


General Conditions for Works Contracts Financed by the European Development Fund

(Official Journal of the European Communities L382, 31/12/1990, pp. 23-51)

41


Appendix D1 – Performance Guarantee Format (Note: separate guarantees should be lodged for each payment currency)


Contract No: ……………………….

To: BCL LimitedMine SiteP. O. Box 3Selebi PhikweBotswana

Whereas [name and address of Contractor] ,

hereinafter called ("The Contractor"), has been notified of the award of a Works Contract No. …………………("The Contract").

and whereas it has been stipulated in the Contract that the Contractor shall furnish you with a guarantee for the sum specified therein as security for compliance with the Contractor's performance obligations in accordance with the Contract;

and whereas we, the undersigned [name and address of the Financial Institution e.g. Bank, Insurance Organisation etc.], have agreed to give the Contractor such guarantee:

Therefore we hereby guarantee to you as primary obligator and not merely as a surety, on behalf of the Contractor, the payment to you upon receipt of your first written demand of any sum or sums up to the total of:

Amount currency…..in figures …… ( ………..in words ……………………………. Currency)

representing ten percent (10%) of the Contract value without contestation and without your needing to prove or show grounds or reasons for your demand or the sum specified therein.

We take note that your release of the performance guarantee [and your advise of release] in accordance with Article 15.8 of the General Conditions of Contract will follow within 30 days after the signed final statement of account referred to in Article 51.

Any request to pay under terms of the guarantee must be countersigned by the Head of Delegation of the European Commission in the State of the Contracting Authority.

The law and the jurisdiction applicable to the guarantee shall be that of …………… [ACP or EC Member State where guarantee is issued].

[To be signed and sealed by the Guarantor or his authorised representative]

Signed: _____________________ Date Issued: _______________________

42


Appendix D2 - Format of Guarantee for the Payment of Advance – Lump Sum

(Note: separate guarantees should be lodged for each payment currency)




Whereas (name and address of Contractor)

hereinafter called "the Contractor", has been awarded the above mentioned Works Contract, hereinafter called "the Contract";

and whereas it is required in the Contract that the Contractor shall furnish you with a guarantee for the sum specified as security for the full amount of the lump sum advance payment made to the Contractor after the conclusion of the contract;

and whereas we, the undersigned (name and address of the Financial institution e.g. Bank, Insurance Organisation, etc), have agreed to give the Contractor a guarantee.

Therefore we hereby guarantee as primary obligator and not merely as a surety, on behalf of Contractor, the payment to you, without contestation and upon receipt of your first written demand of any sum or sums up to the total of (amount of the lump sum advance), representing ….…% of the amount of the Contract.

This guarantee shall become effective and operative on receipt of the lump sum advance payment on the account of the (Contractor’s Name) at (institution, branch and address). Account No………………………

We take note that in accordance with Article 46.7 of the General Conditions for Works Contracts, the guarantee shall be released as and when the lump sum advance is repaid.

Any request to pay under the terms of this guarantee must be countersigned by the Head of Delegation of the European Commission in the State of the Contracting Authority.

The law applicable to the guarantee is that of [EU Member State or ACP State in which the guarantor is based].


Signed: _______________________ Date Issued: _______________________

43


Appendix D3 – Format of Guarantee for the Payment of Advance – materials, equipment, etc

Advance on materials, equipment, facilities, machines, tools and other major items of expenditure needed in advance

(Note: separate guarantees should be lodged for each payment currency)




The undersigned, [name and address of guarantor], hereby declare that we will guarantee, not merely jointly and severally, but as principal debtor, to [contracting authority’s name and address] on behalf of [contractor’s name and address], the payment of [amount of the advance], without dispute, on receipt of a first written request from the recipient, representing ………% of the contract amount payable on conclusion at the contractor’s request.

This guarantee shall become effective and operative on receipt of the advance payment on the account of [customer’s name] at [Bank, branch and address].

The advance on materials, equipment, facilities, machines, tools and other major items of expenditure needed in advance shall be repaid by means of deductions from the instalments due to the contractor, starting with the first instalment due under the contract and ending at the latest when the instalments total 90% of the initial contract amount.

We take note that, in accordance with Article 46(7) of the General Conditions for works contracts financed by the EDF, the guarantee will be released as the advance is repaid.

Any payment application under the terms of the guarantee must be countersigned by the Head of Delegation of the European Commission in the recipient State.

The law applicable to the guarantee is that of [EU Member State or ACP State in which the guarantor is based].


Signed: ________________________ Date Issued: _________________

44


Appendix D4 – Procedural rules on conciliation and arbitration of contracts financed by the European Development Fund (EDF)

(ANNEX V to the Decision 3/90 of the ACP-EEC Council of Ministers of 29.03.1990 (OJEC L382, 31.12.1990))

TABLE OF CONTENTS

I. INTRODUCTIONArticle 1 - Scope of applicationArticle 2 - DefinitionsArticle 3 - Notice and calculation of timeArticle 4 - Exhaustion of internal administrative procedures.Article 5 - Conciliation.

II. THE TRIBUNALArticle 6 - Nationality of arbitrators.Article 7 - Number of arbitrators.Article 8 - Appointment of sole arbitrator.Article 9 - Appointment of three arbitrators.Article 10 - Appointments by the appointing authority.Article 11 - Challenge of arbitrators.Article 12 - Replacement of arbitrator.

III. THE ARBITRATION PROCEEDINGSArticle 13 - General provisions.Article 14 - Applicable law and procedural rules.Article 15 - Language of the proceedings.Article 16 - Venue of the proceedings.Article 17 - Representation and assistance.Article 18 - Commencement of arbitration proceedings.Article 19 - Statement of claim.Article 20 - Statement of defence.Article 21 - Amendments to the claim or defence.Article 22 - Pleas to the jurisdiction of the tribunal.Article 23 - Further written statements.Article 24 - Time limits.Article 25 - Evidence.Article 26 - Oral proceedings.Article 27 - Interim measures of protection.Article 28 - Experts.Article 29 - Default.Article 30 - Closure of hearings.Article 31 - Waiver of rules.

IV.THE AWARDArticle 32 - Decisions.Article 33 - Time, scope, form and effect of the award.Article 34 - Enforcement of the award.Article 35 - Settlement or other grounds for termination.Article 36 - Interpretation of the award.Article 37 - Correction of the award.Article 38 - Additional award.Article 39 - Fees.Article 40 - Costs.Article 41 - Deposit of costs.

45


INTRODUCTORY RULES

Article 1

Scope of application

Disputes relating to a contract financed by the European Development Fund (EDF) which, pursuant to the provisions of the general conditions and the special conditions governing the contract, may be settled by conciliation or by arbitration shall be settled in accordance with these procedural rules.

Article 2

Definitions

In these rules, unless the context requires otherwise, the following words and expressions shall have the meaning here assigned to them:

ACP State: a State belonging to the African, Caribbean and Pacific group of States which are signatories to the Convention,

Member State: a Member State of the European Economic Community (EEC),

administrative agency: the agency in the ACP State given the function of settling by administrative methods disputes arising under or in connection with contracts to which the contracting authority is a party,

the tribunal: the arbitral tribunal,

appointing authority: the authority agreed by the parties to an arbitration, or in the absence of such agreement, identified by these rules, as the authority to appoint an arbitrator,

contracting authority: the State or the legal person governed by public or private law which concludes the contract or on behalf of which the contract is concluded,

the Convention: the relevant Convention between the ACP States and the EEC,

the Council of Ministers: the ACP-EEC Council of Ministers referred to in the Convention, the contract: an EDF contract for works, supplies or services,

claimant: the party which commences arbitration proceedings by giving notice to the other party requesting the arbitration and submitting claims,

respondent: the party to the arbitration against whom claims are made,

party: when used in connection with an arbitration, the claimant or respondent in the arbitration.

Article 3

Notice and calculation of time

3.1. Any notice provided by these rules shall be served by registered letter or physically delivered with a request for a dated acknowledgement of receipt in either case. A notice shall be deemed to have been received on the day it is so delivered.

3.2. For the purposes of calculating a period of time under these rules, such period shall begin to run on the day following the day when a notice, communication or proposal, is received. If the last day of such period is an official holiday or a non-working day, at the address mentioned in the notice, communication or proposal, the period shall be extended until the first working day which follows. However, official holidays or non-working days occurring during the running of the period of time shall be included in calculating the period.

Article 4

Exhaustion of internal administrative procedures

4.1. A dispute shall not be referred to arbitration under these rules unless all internal administrative procedures provided by the ACP State for settlement of such disputes have been or are deemed to have been, exhausted. Recourse to administrative proceedings shall be deemed to have been exhausted if no final decision has been issued by the administrative

46


agency within 120 days of the receipt of the initial application for settlement by it.

4.2. In cases where recourse to administrative procedures by an applicant is, due to the absence of such procedures in the ACP State, not possible, a dispute may be referred to arbitration under these rules only after the applicant has given notice of this compliant to the other party, and no meaningful steps have been taken by that other party to remedy or correct the cause of complaint within 120 days after the receipt of the notice.

Article 5

Conciliation

5.1. At any time before a request for arbitration, a person with the right to request the arbitration may request the amicable intervention of the agency financing the contract or the settlement of the dispute by conciliation in accordance with these rules.

5.2 .If the parties to the dispute agree, the conciliation shall be conducted by a sole conciliator, otherwise it shall be conducted by a committee of three conciliators.

5.3. To qualify for appointment as conciliator, the person must have the nationality of one of the signatory States of the Convention.

5.4. Where the conciliation is to be conducted by a sole conciliator, the parties to the dispute shall agree on the conciliator. Where the conciliation is to be conducted by a conciliation committee, each of the parties to the dispute shall nominate one of the members of the committee. The third member of the committee who shall be chairman, and who shall be of a nationality other than that of the parties involved, shall be chosen by the other members of the committee.

5.5. The party making a request for conciliation shall notify the other party of the request.

The request shall consist of a statement of the case of the applicant and shall be accompanied by copies of relevant papers and documents. The request shall also contain the name and address of the person proposed or nominated as a conciliator.

5.6. Within 60 days of receipt of the notice of the request, the other party shall notify the applicant whether he is prepared to accept an attempt at conciliation, and in that event to submit to the applicant a reply to the applicant's case. The reply shall also contain the name and address of the person proposed or nominated by the other party as a conciliator.

5.7. Within 30 days of the receipt of the reply, the members of the conciliation committee selected by the parties shall nominate the chairman.

5.8. The proceedings of the conciliator or conciliation committee shall be as informal and expeditious as is compatible with a just and objective settlement of the dispute and shall be based on a fair hearing of each party.

Each of the parties may appear in person or be represented by an agent of his choice.

5.9. After examining the case, the conciliator or conciliation committee shall submit terms of settlement to the parties.

5.10. Should a settlement result, the conciliator or conciliation committee shall draw up and sign a record of the settlement. The record shall be signed by the parties to signify their acceptance thereof. The record of the settlement so signed by the parties shall be binding upon them.

5.11. Copies of the record of settlement so signed shall be given to the parties

.

47


5.12. Should a settlement not result, the parties shall be at liberty to refer their dispute to arbitration under these rules, in which case, nothing that has transpired in connection with the proceedings before the conciliator or conciliation committee shall in any way affect the legal rights of any of the parties at the arbitration.

5.13. No person having sat as a conciliator or a member of a conciliation committee for the settlement of a dispute may be appointed arbitrator for the same matter.

II - THE TRIBUNAL

Article 6

Nationality of arbitrators.

To qualify for appointment as an arbitrator, a person must have the nationality of one of the signatory States of the Convention.

Article 7

Number of arbitrators

If the parties agree, the tribunal shall be constituted by one arbitrator only. Such agreement must be reached by the parties within 15 days after receipt by the respondent of the notices commencing the arbitration proceedings as provided for in Article 18. If the parties fail to agree to arbitration by one arbitrator within the time specified, or if they otherwise agree, the tribunal shall be constituted by three arbitrators.

Article 8

Appointment of sole arbitrator8.1. If a sole arbitrator is to be appointed,

the parties shall agree on that arbitrator or upon the appointing authority for making the appointment thereof within 60 days after the commencement of the arbitration proceedings as laid down in Article 18.

8.2. Where:

(a) the parties are unable to agree either on the arbitrator or on the appointing authority within the specified 60 days; or

(b) the appointing authority agreed by the parties refuses to act, or fails to appoint the arbitrator, within 60 days of receipt of the parties' request therefore,

either party may request the most senior in rank from amongst the judges of the International Court of Justice at the Hague who are nationals of the ACP States and the Member States to exercise the powers of the appointing authority.

Article 9

Appointment of three arbitrators

9.1. If three arbitrators are to be appointed, each party shall appoint one arbitrator. The two arbitrators thus appointed shall choose the third arbitrator who shall be the presiding arbitrator of the tribunal.

9.2. The appointment by each party of an arbitrator shall be made within 60 days from the date of the agreement between the parties that the tribunal be constituted by three arbitrators, or the date when the constitution of the tribunal by a sole arbitrator was, in terms of Article 7.1, excluded.

.

9.3. If:

(a) within 30 days after the appointment by each party of his arbitrator, the two appointed arbitrators have not chosen the third arbitrator; or

(b) within 30 days after the receipt of the notification of the appointment by one party of an arbitrator the other party has not notified the first party of the arbitrator he has appointed,

48


the required arbitrator shall upon request by either party, be appointed by the appointing authority.

9.4. The appointing authority shall be agreed by the parties not later than 60 days after the particular failure which gives rise to the need to invoke that authority. If after the expiration of that period an appointing authority has not been agreed by the parties, either party may request the most senior in rank from amongst the judges of the International Court of Justice at the Hague who are nationals of the ACP States and the Member States to exercise the powers of the appointing authority.

Article 10

Appointments by the appointing authority

10.1. When an appointing authority is requested to appoint an arbitrator, the party which makes the request shall send to the appointing authority a copy of the notice of arbitration specified in Article 18.1 and a copy of the contract under or in connection with which the dispute has arisen. The appointing authority may require from either party such information as he deems necessary to fulfil his function.

10.2. Either party may propose names of persons suitable for appointment as arbitrators to the appointing authority. Where such proposal is made, the full names, addresses and nationalities of the persons proposed shall be given, together with a description of their qualifications.

10.3. The appointing authority shall appoint the arbitrator or arbitrators as promptly as possible. In making the appointment, the appointing authority shall:

(a) have regard to such considerations as are likely to secure the appointment of an independent and impartial arbitrator of a nationality other

than the nationalities of the parties, and of high moral standing, who has a recognized competence in the field of law, technical knowledge or finance applicable to the matters in dispute; and

(b) unless both parties agree otherwise, or the appointing authority decides in his discretion that the procedure is not appropriate for the particular case, use the following list procedure:

(i) the appointing authority shall communicate to both parties an identical list containing at least three names of persons qualified for appointment as arbitrators in terms of Articles 6.1 and 10.3 (a);

(ii) within 30 days after the receipt of this list, each party may return the list to the appointing authority after deleting the name or names to which he objects, and numbering the remaining names on the list in the order of his preference. If the list is not returned or no alteration is made in the order in which the names appear in the original list, the names on that list shall be deemed to have been approved by the party concerned in the order in which they appear;

(iii) upon receipt of the list returned by both parties, or after the expiration of the time limit for the return, whichever is the earlier, the appointing authority shall within 30 days appoint the arbitrator from among the names approved or deemed to be approved, on the list and in accordance with the order of preference indicated by the parties;

(iv) if for any reason the appointment cannot be made according to this procedure, the appointing authority may

49


appoint a suitable arbitrator, having due regard to the interest of the parties, the nature of the dispute and, where applicable, the fact that one of the parties is a State.

Article 11

Challenge of arbitrators

11.1. A prospective arbitrator shall disclose to those who approach him in connection with his possible appointment any facts or circumstances likely to give rise to justifiable doubts or suspicion as to his impartiality or independence. A person appointed arbitrator shall disclose such facts or circumstances to the parties unless they have already been informed by him of these circumstances.

11.2. Any arbitrator may be challenged by a party if facts or circumstances exist which give rise to justifiable doubts or suspicion as to his impartiality or competence. However a party may challenge an arbitrator appointed by him, or in whose appointment he has participated, only for reasons of which he becomes aware after the appointment has been made.

11.3. A party who intends to challenge an arbitrator shall send a notice of his challenge in writing, stating the reasons therefor to the tribunal, the challenged arbitrator and the other party. The notice shall be sent within 15 days of the constitution of the tribunal or of the appointment of the challenged arbitrator, whichever is later, or within 15 days after the circumstances justifying the challenge become known to the party making the challenge.

11.4. Where a challenge made by one party is agreed by the other party, or where the challenged arbitrator withdraws from office, the authority of that arbitrator in the arbitration proceedings shall forthwith terminate.

But neither the agreement of the parties to the challenge, nor the withdrawal from office of the challenged arbitrator, implies an acceptance of the validity of the grounds of the challenge issued.

11.5. If the other party does not agree to the challenge, or if the challenged arbitrator does not withdraw, a decision on the challenge shall be made as follows:

(a) where the appointment of the arbitrator was made by an appointing authority, by that authority;

(b) where the appointment of the arbitrator was not made by an appointing authority, by the other members of the tribunal, if there are such others;

(c) in all other cases, or in case of disagreement between the other members of the tribunal, by an appointing authority designated or to be designated in accordance with the procedure provided in Article 9.4.

The decision of the authority specified herein shall be final.

Article 12

Replacement of arbitrator

12.1. In the following cases, a substitute arbitrator shall be appointed in accordance with the procedure laid down in Articles 8,9 and 10 which is applicable to the appointment of the particular arbitrator being replaced:

(a) a challenge to an arbitrator has been agreed to by the other party; or

(b) a challenged arbitrator has withdrawn from office; or

(c) notwithstanding the absence of agreement of the other party, or a refusal by the challenged arbitrator

50


to withdraw, a challenge to an arbitrator is sustained; or

(d) an arbitrator dies during the course of the arbitration proceedings; or

(e) for any other reason, an arbitrator fails to act or it becomes impossible de jure or de facto for him to perform his functions.

12.2. If an arbitrator is replaced, any hearing held previously may, at the discretion of the tribunal, be repeated, and any decision or order made in the course of the proceedings may be set aside by the tribunal.

III. - THE ARBITRATION PROCEEDINGS

Article 13

General provisions

13.1. Subject to these rules, the tribunal may conduct the arbitration in such manner as it considers appropriate.

13.2. The tribunal shall conduct the arbitration as expeditiously and with such due regard for the saving of costs as is consistent with doing justice between the parties. The parties shall be treated with equality, and at any stage of the proceedings each of them shall be given a full opportunity of presenting his case.

13.3. If either party so requests at any stage of the proceedings, the tribunal shall hold hearings for presentation of evidence by witnesses, including expert witnesses, or for oral argument. In the absence of such a request, the tribunal shall decide whether to hold such hearings or whether the proceedings shall be

conducted on the basis of documents and other materials.

13.4. All documents or information supplied to the tribunal by one party shall at the same time be communicated by that party to the other party. No such document or information may be used in support of a party's case unless there is proof that it has been communicated to the other party.

Article 14

Applicable law and procedural rules

14.1. The tribunal shall apply the law of the State of the contracting authority to the matters in dispute, unless otherwise specified in the contract, in which case the tribunal shall apply the law so specified. In all cases, the tribunal shall decide in accordance with the terms of the contract, and may take into account the usage of the trade applicable to the transaction.

14.2. Where the applicable law is silent on any specific point, the tribunal shall apply the conflict of laws rules resulting from the law applicable to the contract. The tribunal may not decline to make an award on the ground that the law is silent or obscure on the point.

14.3. Notwithstanding the provisions of Articles 5.1 and 14.1, if the parties expressly so authorize the tribunal in the course of the arbitration proceedings, it shall decide as amicable compositor or ex aequo et bono.

14.4. The entire arbitration proceedings shall be conducted in accordance with these rules. In the absence of agreement between the parties, any procedural matter which is not provided for in these rules shall be decided by the tribunal, which shall ensure in particular, in such a case, that the principle of equality between the parties is observed.

Article 15

51


Language of the proceedings

15.1. Arbitration proceedings shall be conducted and the arbitration award made in the language of the contract, the terms or execution of which gave rise to the dispute.

15.2. The tribunal may order that any documents annexed to the statement of claim or statement of defence, and any other document or exhibit submitted in the course of the proceedings, and which are not drawn up in the language of the proceedings, shall be accompanied by a certified translation into the language of the proceedings.

Article 16

Venue of the proceedings

16.1. Arbitration proceedings shall be conducted in the ACP State in which the contract was awarded or performed. However, the tribunal may, with the agreement of the parties and for good cause, decide to conduct the arbitration in some other place. In deciding on such other place, the tribunal shall have regard to the circumstances of the case, including the costs involved, the convenience of the parties, and the potential adverse effect of the procedural rules of an alternative venue on the parties and the proceedings.

16.2. Subject to Article 16.1, the tribunal may hold some hearings and meetings at any place it deems appropriate, having regard to the circumstances of the case.

16.3. The tribunal may meet at any place it deems appropriate for the inspection of the works, goods, other property or documents. The parties shall be given sufficient notice to enable them to be present at such inspection.

Article 17

Representation and assistance

The parties may be represented and/or assisted by persons of their choice. The names and addresses of such persons must be communicated in writing to the other party and to the tribunal. Such communication must specify whether the person named is appointed for the purpose of representation or assistance.

Article 18

Commencement of arbitration proceedings

18.1. The claimant in an arbitration shall give to the respondent a notice of arbitration. Such notice shall be time-barred unless it is given not later than 90 days after the receipt of the decision closing the final administrative proceedings taken in the ACP State, or, where no such administrative procedures are available, not later than 90 days after the expiry of the 120 days provided for in Article 4.2 for the remedy of a complaint notified to the other party.

18.2. Arbitration proceedings shall be deemed to commence on the date on which the notice of arbitration is received by the respondent.

18.3. The notice of arbitration shall include the following:

(a) a demand that the dispute be referred to arbitration;

(b) the names and addresses of the parties and their nationality at the time of the notice;

(c) a reference to the contract out of or in relation to which the dispute arises, and the particular clause or clauses in the contract being invoked or challenged;

(d) the general nature of the claim and the amount involved, if any;

(e) the relief or remedy sought;

(f) a brief statement, with dates, of any administrative proceedings or

52


of the notice given of complaints, and the outcome of such steps;

(g) a proposal as to the number of arbitrators (i. e., one or three).

18.4. The notice of arbitration may also include:

(a) the name of the person and/or the authority proposed for appointment as a sole arbitrator and/or appointing authority referred to in Article 8.1;

(b) the notification of the appointment by the claimant of an arbitrator referred to in Article 9.1;

(c) the statement of claim referred to in Article 19.

Article 19

Statement of claim

19.1. Unless the statement of claim was contained in the notice of arbitration, within a time limit to be determined by the tribunal, the claimant shall communicate his statement of claim in

writing to the respondent and to each of the arbitrators. A copy of the contract shall be annexed thereto.

19.2. The statement of claim, signed and dated by the claimant and/or his duly authorized representative, shall include the following particulars:

(a) the names and addresses of the parties;

(b) a statement of the facts supporting the claim;

(c) the points at issue;

(d) the relief or remedy sought.

The claimant shall either annex to his statement of claim all documents he deems relevant or add a reference to the documents or other evidence he will submit.

Article 20

Statement of defence

20.1. Within a time limit to be determined by the tribunal, the respondent shall communicate his statement of defence in writing to the claimant and to each of the arbitrators.

20.2. The statement of defence shall reply to the particulars of the statement of claim given in compliance with Article 19.2 (b), (c) and (d). The respondent shall either annex to his statement the documents on which he relies for his defence or add a reference to the documents or other evidence he will submit.

20.3. In this statement of defence, or at a later stage in the arbitration proceedings, if the tribunal decides that the delay was justified under the circumstances, the respondent may make a counter-claim arising out of the same contract, or rely on a claim arising out of the same contract for the purpose of a set-off.

20.4. The provisions of Article 19.2 shall apply to a counter-claim and a claim relied on for the purpose of a set-off.

Article 21

Amendments to the claim or defence.

During the course of the arbitration proceedings either party may amend or supplement his claim or defence unless the tribunal considers it inappropriate to allow such amendment having regard to the delay in making it or the undue harm that it would cause to the other party.

Article 22

Pleas to the jurisdiction of the tribunal

22.1. The tribunal shall have the power to rule on objections to its jurisdiction.

22.2. The tribunal shall have the power to determine the existence or the validity of the contract. A decision by the tribunal that the contract is null and

53


void shall not affect the validity of the arbitration clause in the contract or the agreement to submit the dispute to arbitration, and therefore, shall not affect the application of these rules.

22.3. A plea that the tribunal does not have jurisdiction shall be raised not later than in the statement of defence or, with respect to a counter-claim, in the reply to the counter-claim. This provision shall also apply to new claims and counter-claims admitted in the course of the proceedings.

22.4. In general, the tribunal should rule on a plea concerning its jurisdiction as a preliminary question. However, the tribunal may proceed with the arbitration and then rule on such a plea in its final award.

Article 23

Further written statements

The tribunal shall decide which further written statements, in addition to the statement of claim and the statement of defence, shall be required from the parties or may be presented by them and, if so, the manner in which they shall be presented, and shall fix the time limits for communicating such statements.

Article 24

Time limits

The time limits fixed by the tribunal for the communication of written statements (including the statement of claim and statement of defence) shall not, in each case, exceed 45 days. However, the tribunal may extend the time limits if it concludes that an extension is justified.

Article 25

Evidence

25.1. Each party shall bear the burden of proving the fact relied on to support his claim or defence.

25.2. The tribunal may, if it considers it appropriate, require the parties to deliver to the tribunal and to the other party, within such time limit as the tribunal shall decide, a summary of the documents and other evidence which that party offers to present in support of the facts in issue set out in his statement of claim or statement of defence.

25.3. At any time during the proceedings, the tribunal may require the parties to produce documents, exhibits or other evidence within such time limit as the tribunal shall determine.

Article 26

Oral proceedings

26.1 In the event of an oral hearing, the tribunal shall give the parties adequate advance notice of the date, time and place thereof.

26.2. If witnesses are to be heard, each party shall communicate to the tribunal and to the other party, at least 15 days before the hearing, the names and addresses of the witnesses he intends to call, the subjects upon and the languages in which such witnesses will give their testimony.

26.3. The tribunal shall make arrangements for the translation of oral statements made at a hearing and for a record of the hearing if either is deemed necessary by the tribunal under the circumstances of the case, or if the parties have agreed thereto and have communicated such agreement to the tribunal at least 15 days before the hearing.

26.4. Hearings shall be held in camera unless the parties agree otherwise. The tribunal may require the retirement of any witness or witnesses during the testimony of other witnesses. The tribunal is free to determine the manner

54


in which witnesses are examined, without prejudice to the right of each party, at its request, to question witnesses presented by the other party.

26.5. Evidence of witnesses may also be presented in the form of sworn written statements signed by them. However, at the request of either party and whit the leave of the tribunal, such witnesses may be heard at a hearing where the parties shall have the opportunity to be present and to question the witnesses.

26.6. The tribunal shall determine the admissibility, relevance, materiality and weight of the evidence offered.

Article 27

27.1. At the request of either party, the tribunal may take any interim measures it deems necessary in respect of the subject matter of the dispute, including measures for the conservation, preservation or safe-custody of the goods forming the subject matter in dispute, such as ordering their deposit with a third person or the sale of perishable goods. The tribunal may also order the deposit of a sum of money or the provision of a security to guarantee the whole or any part of the amounts in dispute. In the event of failure to do so, the tribunal shall be entitled to draw such conclusions as may logically be imputed to such failure.

27.2. Such interim measures may be established in the form of an interim award. The tribunal shall be entitled to require security for the costs of such measures.

Article 28

Experts

28.1. The tribunal may appoint one or more independent experts to examine and report to it, in writing on specific issues to be determined by

the tribunal. A party shall have the right to object to an expert on the ground of competence and partiality and if such objection is sustained by the tribunal that expert shall withdraw. A copy of the expert's terms of reference, established by the tribunal, shall be communicated to the parties.

28.2. The parties shall give the expert any relevant information or produce for his inspection any relevant documents or goods that he may require of them. Any dispute between a party and such expert as to the relevance of the required information or production shall be referred to the tribunal for decision.

28.3. Upon receipt of the expert's report, the tribunal shall communicate a copy of the report to the parties who shall be given the opportunity to express, in writing, their opinion on the report. A party shall be entitled to examine any document on which the expert has relied in his report.

28.4. At the request of either party, the expert, after delivery of the report, may be heard at a hearing where the parties shall have the opportunity to be present and to question him. At this hearing either party may call expert witnesses in order to testify on the points at issue. The provisions of Article 26 shall apply to such proceedings.

Article 29

Default

29.1. If, within the time limit fixed by the tribunal, the claimant has failed to communicate his statement of claim without showing sufficient cause for such failure, the tribunal shall issue an order for the termination of the proceedings. If, within the time limit fixed by the tribunal, the respondent has failed to communicate his statement of defence without showing sufficient cause for such failure, the tribunal shall, after allowing for the particular constraints applying to the respondent, order that the proceedings continue and may make an award even

55


if a defence has by then not been submitted.

29.2. If one of the parties, duly notified under these rules, fails to appear at a hearing, without showing sufficient cause for such failure, the tribunal may proceed with the arbitration.

29.3. If one of the parties, duly invited to produce documentary evidence, fails to do so within the established time limit, without showing sufficient cause for such failure, the tribunal may make the award on the evidence before it, taking due account of the failure and the bearing it has on the case.

Article 30

Closure of hearings

30.1. The tribunal may inquire of the parties if they have any further evidence to offer or witnesses to be heard or submissions to make and, if there are none, it may declare the hearing closed.

30.2. The tribunal may, if it considers it necessary owing to exceptional circumstances, decide, on its own motion or upon application of a party, to reopen the hearings at any time before the award is made.

Article 31

Waiver of rules

A party who refrains from promptly raising an objection to any noncompliance with the provisions of or requirements under these rules shall be deemed to have waived his right to object.

IV. - THE AWARD

Article 32

Decision

32.1. When there are three arbitrators, an award or other decision of the tribunal shall be made by a majority of the arbitrators. However, if there is no majority, the presiding arbitrator shall have a casting vote, but shall give reasons for exercising that vote.

32.2. In the case of questions of procedure, when there is no majority or when the tribunal so authorizes, the presiding arbitrator may decide on his own, subject to review, if any, by the tribunal.

Article 33

Time, scope, form and effect of the award

33.1. The arbitration award shall be made as soon as possible after the hearing or receipt of evidence of the material which the parties wish to put before the tribunal.

33.2. In addition to making a final award, the tribunal shall be entitled to make interim, interlocutory, or partial awards.

33.3. The award shall be made in writing and shall be final and binding on the parties. The parties shall carry out the award without delay. Each ACP State or Member State shall recognize as binding every award made pursuant to these rules and shall ensure that it is enforced in its territory, as if it were a final judgment of one of its own courts or tribunals.

33.4. The tribunal shall state the reasons upon which the award is based, unless the parties have agreed that no reasons are to be given.

33.5. An award shall be signed and duly certified by the arbitrators and it shall contain the date on which and the place where the award was made. Where there are three arbitrators and one of them fails to sign, the award shall state the reason for the absence of the signature.

33.6. The award may be made public only with the consent of both parties.

56


33.7. Copies of the award signed and certified by the arbitrators shall be communicated to the parties by the tribunal.

Article 34

Enforcement of the award

34.1. In order to obtain the recognition and enforcement of the award in the territory of a signatory State of the Convention, the party concerned must present a certified copy of the award to the authority which that State has designated for the purpose. The order for enforcement shall be appended to the presented copy without any verification other than that of the authenticity of the copy.

34.2. Each signatory State shall, within 180 days from the entry into force of these rules, inform the President of the Council of Ministers of the authority which it has designated for this purpose and shall keep him informed of any changes. The President of the Council of Ministers will transmit such information to the Secretary General of the ACP General Secretariat and to the President of the Commission without delay.

34.3. The enforcement of the award shall be regulated by the law relating to the enforcement of judgments which is in force in the State in whose territory the enforcement is to be carried out.

Article 35

Settlement or other grounds for termination

35.1. If, before the award is made, the parties agree on a settlement of the dispute by other means, the tribunal shall either issue an order for the termination of the proceedings or, if requested by both parties and

accepted by the tribunal, record the settlement in the form of an award on the agreed terms. The tribunal is not obliged to give reasons for such an award.

35.2. If, before the award is made, the continuation of the proceedings becomes unnecessary or impossible for any reason other than settlement under Article 35.1, the tribunal shall inform the parties that unless any objection is received within 30 days, it will issue an order terminating the proceedings. Should either party object within the said 30 days, the tribunal shall not issue such an order until it has heard the parties and determined that there are no justifiable grounds for objection.

35.3. Copies of the order for termination of the proceedings or of the award on the agreed terms, signed by the arbitrators, shall be communicated by the tribunal to the parties. Where an award on the agreed terms is made, the provisions of Articles 33.3 and 33.5 to 33.7 shall apply.

Article 36

Interpretation of the award

36.1. Within 60 days after the receipt of the award, either party, with notice to the other party, may request that the tribunal give an interpretation of the award. Where a new issue is discovered after the time limit provided has expired, the 60 days shall run from the date the new issue is discovered, provided that the maximum time limit for a request based on the discovery of a new issue shall not exceed 120 days from the date of the award.

36.2. The interpretation shall be given in writing as soon as possible after the receipt of the request. The interpretation shall from part of the award and the provisions of Article 33.2 to 33.6 shall apply.

Article 37

57


Correction of the award

37.1. Within 60 days after the receipt of the award, either party, with notice to the other party, may request the tribunal to correct in the award any errors in computation, any clerical or typographical errors, or any errors of a similar nature. The tribunal may within 30 days after the communication of the award make such corrections on its own initiative.

37.2. Such corrections shall be in writing, and the provisions of Article 33.2 to 33.6 shall apply.

Article 38

Additional award

38.1. Within 60 days after the receipt of the award, either party, with notice to the other party, may request the tribunal to make an additional award as to claims presented in the proceedings but omitted from the awards.

38.2. If the tribunal considers the request for an additional award to be justified and considers that the omission can be rectified without any further hearings or evidence, it shall complete its award within 60 days after the receipt of the request.

38.3. When the additional award is made, the provisions of Article 33.2 to 33.6 shall apply.

Article 39

Fees

39.1. The fees of the tribunal shall be reasonable in amount, taking into account the complexity of the subject matter, the time spent by the arbitrators and any other relevant circumstances of the case.

39.2. If an appointing authority has been agreed upon by the parties or designated by these rules, and if that authority has issued a schedule of fees for arbitrators in international

cases which it administers, the tribunal in fixing its fees shall take that schedule of fees into account to the extent that it considers appropriate in the circumstances of the case.

39.3. If such appointing authority has not issued a schedule of fees for arbitrators in international cases, any party fixing its costs request the appointing authority to furnish a statement setting forth the basis for establishing fees which is customarily followed in international cases in which the authority appoints arbitrators. If the appointing authority consents to provide such a statement, the tribunal in fixing its fees shall take such information into account to the extent that it considers appropriate in the circumstances of the case.

39.4. In the cases referred to in Articles 39.2 and 39.3, when a party so requests and the appointing authority consents to draw up a proposal for fees, the tribunal shall fix its fees only after consultation with the appointing authority which may make any comment it deems appropriate to the tribunal concerning the fees.

Article 40

Costs

40.1. The tribunal shall fix the costs of arbitration in its award. The term 'costs' includes only:

(a) the fees of the tribunal to be stated separately as to each arbitrator and to be fixed by the tribunal itself in accordance with Article 39;

(b) the travel and other expenses incurred by the arbitrators;

(c) the costs of expert advice and of other assistance required by the tribunal;

(d) the travel and other expenses of witnesses to the extent such expenses are approved by the tribunal;

58


(e) the costs for legal representation and assistance of the successful pary if such costs were claimed during the proceedings, and only to the extent that the tribunal determines that the amount of such costs is reasonable;

(f) any fees and expenses of the appointing authority.

40.2. Except as provided in Article 40.3, the costs of arbitration shall in principle be borne by the unsuccessful party. However, the tribunal may apportion each of such costs between the parties if it determines that apportionment is reasonable, taking into account the circumstances of the case.

40.3. With respect to the costs of legal representation and assistance referred to in Article 40.1 (e), the tribunal, taking into account the circumstances of the case, shall be free to determine which party shall bear such costs or may apportion such costs between the parties if it determines that apportionment is reasonable.

40.4. When the tribunal issues an order for the termination of the proceedings or makes an award on the agreed terms, it shall fix the costs of arbitration referred to in Article 40.1 in the text of that order of award.

40.5. No additional fees may be charged by a tribunal for interpretation or correction or completion of its award under Articles 36 to 38.

Article 41

Deposit of costs

41.1. The tribunal, on its establishment, may request each party to deposit an equal amount as an advance for the

costs referred to in Article 40.1 (a), (b) and (c).

41.2. During the course of the arbitration proceedings, the tribunal may request supplementary deposits from the parties for valid reasons.

41.3. If an appointing authority has been agreed upon by the parties or designated by these rules, and when a party so requests and the appointing authority consents to perform the function, the tribunal shall fix the amounts of any deposits or supplementary deposits only after consultation with the appointing authority which may make comments to the tribunal which it deems appropriate concerning the amount of such deposits and supplementary deposits.

41.4. If the required deposits are not paid in full within 30 days after receipt of the request, the tribunal shall inform the parties in order that one or other of them may make the required payment. If such payment is not made, the tribunal may nevertheless decide to continue with, or order the suspension or termination of, the proceedings.

41.5. After the award has been made, the tribunal shall render an account to the parties of the deposits received and return any unexpended balance to the parties.

59

Part I: General

SECTION E – Tender Form

To (1): BCL LimitedMine SiteP. O. Box 3Selebi PhikweBotswana

Gentlemen,

Subject: Invitation to Tender No EuropeAid/127062/D/WKS/BWWorks contract for BCL Phase IV Exploration Drilling Programme Project “Economic Diversification of the Mining Sector” (No 8 ACP BT 013)

I (We), .............................................................................................................................................................................1) hereby submit our tender for ……………………………….…. in reply to the above mentioned invitation to tender.

I (We) have taken note of the contents of the tender dossier and undertake, in the event of our tender being accepted, to perform the works contract in conformity with the specifications and conditions set out in the tender dossier, for the amount of BWP…………………………………………….(in figures) ………………….. (Botswana Pula ……………………………………………(in words) ………………………….............................…………………………………………………………………………………………………………

calculated on the basis of the unit prices set out in the Price Schedule, which are attached to this tender.

In the event of my (our) tender being accepted, I (we) undertake to perform the contract within a period of ……………………………………days.

I (We) undertake to adhere to the price specified in my (our) tender for 90 days following the closing date for the submission of tenders.

I (We) request that the sums owed by the Contracting Authority be paid to me (us) as follows:

A. All of the amount specified in my (our) tender in the local currency (BWP) by transfer to account No.…………………… opened in the name of …………………………………………………… at …………………………………………… (Name of Bank and Branch).

OR

B.1 …..% of the amount specified in my (our) tender in foreign exchange, namely in ……………………………….(currency required) by transfer to account No………………………..opened in the name of …………………………………………………………………… at ………………………………………………………………. (Name of Bank and Branch).

60

Part I: General

The basis of the exchange rates is the one published in the Official Journal of the European Communities, prevailing 30 days before the closing date for the submission of tenders. And

B.2. The outstanding balance of the sums owed to me (us) are to be paid in the local currency (BWP) by transfer to account No. (……………………) opened in the name of (…………………………………………………………………..) at ………..……………… ………… …………………………Name of Bank and Branch.

Annexed to this tender- the Price Schedule and Schedule of Rates for Additional Services,

duly completed, dated and signed;- the tender guarantee;- other documents stipulated in the tender dossier;- grounds for payments in foreign currency;- (when the tender is submitted by an authorised representative) the

certified document or private deed with certified signature delegating the power of representation.

Done at ………………………… on (DD/MM/YYYY ).……………………………………

(Signature of Tenderer(s)

-------------------------------------------------------------------------------------------------------------------

(1) Name and Address of the Company or grouping - for companies indicate:“(Full name of the company, its form of registration, nationality and location of head offices) represented by the undersigned ……………….. ……………………………………………………………………………………………. (family name, first names and capacity)

- for groupings without legal personality indicate:“We, the undersigned ……………………………………………………………… (the name and first names/name of company, profession, nationality and location of registered place of business) having set up a consortium of companies to perform this contract, hereby jointly submit …………..”.

61

Appendix E1 - BCL Phase IV Exploration Drilling Programme Contract Price Schedule

Amounts payable to the Contractor shall be calculated exclusively according to the above rates.

ITEM Nos

QUANTITYDESCRIPTION

UNIT PRICE BWP

TOTAL PRICE BWP

11 unit Mobilisation and Demobilisation of Drilling Rigs to and

from Site and the establishment of a Camp Site

2

40 holes at an average of 1,300 metres per hole in Diamond inclined Drill Holes at Different targets Rates/metre to be stated through the depth ranges as follows:

Holes Metres40 400 0-10 metres 2 HQ 40 7,600 10-200 metres NQ40 8,000 200-400 metres NQ 40 8,000 400-600 metres BQ 40 8,000 600-800 metres BQ40 8,000 800-1,000 metres BQ40 8,000 1,000-1,200 metres BQ40 8,000 1,200-1,400 metres BQ20 4,000 1,400-1,600 metres BQ10 2,000 1,600-1,800 metres BQ

5 1,000 1,800-2,000 metres BQ2 1,200 2,000-2,600 metres BQ

Total Meters 64,200

3Grouting Supply and injection of cement BWP/kg

(The tenderer is to state the expected total amount of cement to be used)

4

Casing left in holes:400 meters400 meters400 meters

2,500 meters750 meters

HQ holesNQ holesBQ holes5.5” or 6” perforated casing5.5”or 6” non-perforated casing

5 400 TDEM Survey for all holes over the fill period of the contract (400 days)

6 Holes Meters 30 hole Reverse Circulation Drilling Programme:

30 1,500 0-50 meters15 1,500 50-150 meters

Total 3,000

GRAND TOTAL PRICE

¹ All measurements to be taken from the top of the casings2 Rate to include Hole Casing for first 10 metres of each hole

62

Part I: GeneralSECTION E – Tender Form

The total contract price shall be fixed for the above scope of the works except in respect of financial effects from variations under Article 37 of the General Conditions for Works Contracts (Section D of the Invitation to Tender)

Notes to Appendix E1 - Contract Price Schedule1. Rates quoted must cover all the Contractor's costs for completion of the Works including but not

limited to:- Transport of the Contractor's Equipment to and from Site and from drilling location to drilling

location.- Insurance in accordance with Article 16 of Section D (General Conditions) of the tender dossier.- Mobilisation of the Contractor's Personnel including travel costs to and from Site.- Transport, Accommodation and Subsistence for Contractor's Personnel whilst in Botswana during

the continuance of the Contract.- All equipment and consumables, as identified in Clause 2.2.8 of this Technical Annex.- Collection of Water, using Tractor and Water Bowser to be provided by the Contractor, in the

event that piping to site from existing mine is not feasible.- Amounts payable to the Contractor shall be calculated exclusively according to the above rates.

63


(To be annexed to the Tender Form)

Appendix E2 – Certificate of Tenderers Visit to Site

SUBJECT : Invitation to Tender No EuropeAid/127062/D/WKS/BW - Works contract for BCL Phase IV Exploration Drilling Programme

Project Economic Diversification of the Mining Sector (No 8 ACP BT 013)

It is a requirement of this Tender that the Tenderer must complete this Certificate and submit it with the Tender. At the Tenderer's visit to the Site this Certificate must be countersigned by the representative of the Contracting Authority.

1. This is to certify that I / We, .............................................................................................…………………………………..…………………………………………….…... (Name of Tenderer or his representative of the Firm) of ……………………………………………………………………………………………………………………………………...(Full and exact name of the firm / joint venture tendering)

visited the site in connection with the Tender for the above tender.

2. Having previously studied the Contract Documents, I/We have carefully examined the site.

3. I/We have made myself / ourselves familiar with all the conditions likely to influence the works and cost thereof.

4. I/We further certify that I/We/ am/are satisfied with the descriptions of the Work and that I/We understand perfectly the work to be carried out in the execution of the Contract.

Signed: _____________________________________ Date: _________________

Name: __________________________________________________________________(Tenderer or his representative)

Signed: _____________________________________ Date: _________________

Name: __________________________________________________________________(Representative of the Contracting Authority)

64


(To be annexed to the Tender Form, on receipt of the official minutes from the Contracting Authority)

Appendix E3 - Minutes of Pre–Tender Site Visit



65


(To be annexed to the Tender Form)

Appendix E4 - Statutory Fluctuations in Rates of Wages - Schedule



Article 48 of the Special Conditions of the Contract (Section D) recognises Statutory Fluctuations in Rates of Wages of persons employed on the works. The Tenderer shall insert the rates of wages payable, thirty days before the deadline for submission of tenders, to the categories of labour listed below, and if necessary, expand the list as appropriate to the scope of the works detailed in the Technical Annex at Section F. The Tenderer must also specify the escalation formula that will apply.

The list below will provide a complete schedule of categories on which the Contractor wishes this special condition to apply. The Contracting Authority reserves the right to demand proof that the rates stated are correct.

HOURLY RATECategory Normal Time Overtime Sundays and

Public HolidaysContract/Site ManagerShift SupervisorBlasterRiggerOperatorsLabourers

Other:(As required)

These rates will be applied to additional work that might be identified for the Contractor while on site.

Current statutory minimum wage rates applicable in Botswana may be verified from the Department of Labour and Social Security, Private Bag 0072, Gaborone, Botswana Tel: (+267) 361 1500, Fax: (+267) 3913584.

66

Part II: Technical Annex

PART 2: TECHNICAL ANNEX

67


SECTION F – Scope of Works and Technical requirements

68


SECTION F

SCOPE OF WORKS


69

Part II: Technical AnnexSECTION F

SCOPE OF WORKS AND TECHNICAL REQUIREMENTS

Scope of Works and Technical Requirements

1.0 Scope of Work

BCL Limited Mining Company (BCL) is based in Selebi Phikwe in the Central District of Botswana. The company’s shareholdings are as follows: the Government of Botswana; Lionore Mining International Limited, a publicly quoted company with Headquarters in Toronto, Canada; and the Public.

In order to ensure the continued mining operation of BCL beyond 2010, it is important that a comprehensive exploration drilling program be put in place to try and discover both near surface and deeper deposits lacking obvious surface expression efficiently and effectively.

Exploration success is critical to the continued viability of the BCL operation beyond 2010. The rate of success depends on increasing the ability of geologist to meaningfully access and analyse the huge amount of data generated in 41 years of exploration, mining and research activities at BCL. A successful exploration program which leads to the discovery of another ore body, or ore bodies, in the mining lease area or vicinity thereof will considerably increase the “life of mine” hence having a positive effect on the cash flow of the company..The scope of the surface drilling programme, covers an expected exploration drilling meterage of 64,200 metres of different targets identified by BCL, and 3,000 meters of Reverse Circulation or Percussion drilling, during a maximum 400 day period of performance. This will be accompanied by phased ‘Down Hole’ TDEM surveys on selected exploration drilling holes.

Background Geological Information and other Additional Information is provided at Annex A.

The BCL Phase III exploration Drilling programme, also funded under the EDMS Programme, commenced in June 2007 and was completed in February 2008. The programme was for a total of 28,000 meters of diamond drilling with an average depth of 450-500 meters. The results and indications of the phase III programme will be used to target the exploration drilling sites for the Phase IV programme.

In addition to the Exploration Drilling Programme, an Acid Mine Drainage Drilling Programme is also included. This programme will be for Reverse Circulation or Percussion drilling and will be conducted in and around the Waste Dumps, dams, run-off areas in accordance to information that will be provided by a third party consultant.

The Contracting Authority reserves the right to vary the total drilled meterage of both drilling programmes by a factor of +/- 15%.

1.1 Outline for the Exploration Drilling Programme

1.1.1 Target Confirmation

The proposed programme will evaluate identified geophysical anomalies, drilling on a 100 metre line spacing along the strike.

70



The entire area available for assessment for ore potential will be defined by a Time Domain EM Survey to be performed by others prior to the commencement of this programme. It is however, recognised that more value will come from drilling at least the top half of an “anomaly” to ensure accurate definition of the more easily accessible material.

A total of 40 holes are planned at an average depth of 1,300 metres over the evaluation area.

All holes will be inclined as detailed in 1.2.3 below. Any deviations will be unforeseen and should account for less than 10% of the holes.

Modelling of the deposit for drill-hole site optimisation will be carried-out by BCL to ensure this information is ready for use prior to commencement of the programme.

1.1.2 Down dip Extension of targets

Deep Drilling “down-plunge” of the original holes shall be initially at a grid of 150m x 150m. The chosen grid is however, considered optimal in view of the seemingly consistent stratigraphy/deposit from other known deposits within the area.

1.2 Additional Information for the Exploration Drilling Programme

Details relating to the geological, geographical and positional nature of this programme are included in Annex A.

1.2.1 Access

Access to BCL mining leases will be by all-weather road and bush cleared track.

1.2.2 Overburden Drilling

The depth of the overburden will be in the range 1.0-5.0 metres, in soil.

1.2.3 Core Drilling Parameters

Size: NQ, hole diameter 75.8 mm (Core Size 47.5 mm) Down to 800mtrs. Changes to BQ below 800m.

All holes to be collared between 45 and 90° from horizontal Minimum depth: 200 metres Maximum depth: 3,000 metres Rock types: Granite, Pegmatite, Amphibolite, Quartz, Quartz Vein , Sulphide

1.2.4 Moving Conditions

Maximum distance between holes: 10 kilometers. Topography: Flat, Moderate relief.

1.2.5 Drilling Operations

Continuous operations permitted. Minimum 12 hours per day, 6 days per week.

71



1.2.6 Distance to Water

The maximum distance to a source of water will be 5 kilometers

1.2.7 Camp Area

The Contractor’s camp area will be designated by the BCL Geology Department

1.2.8 Contractor to Supply

The contractor is wholly responsible for supply of the following equipment to undertake the Works:

Drilling Consumables and all drilling accessories and products Casing and Lining Material for further down hole geophysics All drilling fluid requisites, cement and fuel Corstor Series 2 Core Boxes Corstor Core Tray Labels Corstor Core Block Run Markers All camp facilities, including electricity generation Water Bowser and tractor

1.3 AMD Drilling Programme

The AMD Drilling Programme is independent of the Exploration Drilling Programme and is designed to produce water and other samples for analysis associated with Acid Mine Drainage and its impact on the water table.

The AMD drilling programme is required for three main reasons:

1. Determining the hydro-geological properties of the aquifer; 2. Monitoring the plume migration 3. Obtaining geological samples for analyses.

The determination of the hydro-geological parameters is expected to confirm the groundwater flow scenario and/or conceptual geo-hydrological model. This determines where flow takes place within the aquifer, the permeability of the aquifer which relates directly to the speed of migration and the gradient of the phreatic surface. These drilled holes will be casing lined and test pumped, perforated casing installation is dependant on the water strikes encountered during drilling.

Holes to monitor the plume migration will be drilled when the flow system has been defined and the above drilled holes can be used for this purpose as well. The intention is to obtain a number of measuring points to determine the plume width and length and therefore determine the migration of any pollution. Within fractured environments. These holes are normally RC or Percussion drilled, but large diameter diamond core holes may be drilled if cased and a small enough pump is available for purging.

The drilled holes to collect geological samples for geo-chemical analyses is used if the geological body has got a risk of AMD formation, or to determine the neutralising potential of the

72



other material. If the material is still in situ, diamond core drilling will be used to obtain a drill cores which will be sent for analyses. If the material with a risk for AMD formation is a waste residue deposit RC or Percussion drilling programme will be used to obtain water and solid samples.

Drill hole requirements are:

15 shallow holes - RC/percussion 8" diameter with 5.5" or 6" casing installed, max depth 50 m

15 deeper holes - RC/percussion 8" diameter with 5.5" or 6" casing installed, max depth 150 m

The detailed AMD drilling programme, and its parameters, are independent to the Exploration Drilling Programme and will be prepared by an independent consultant engaged in an Acid Mine Drainage study during 2008. This programme, together with the parameters, will be provided to the contractor prior to the commencement of AMD programme.

1.4 Additional Information for the AMD Drilling Programme

1.4.1 Distance to Water

The maximum distance to a source of water will be 5 kilometers

1.4.2 Camp Area

The Contractor’s camp area will be designated by the BCL Geology Department

1.4.3 Contractor to Supply

The contractor is wholly responsible for supply of the following equipment to undertake the Works:

Drilling Consumables and all drilling accessories and products Casing and Lining Material All drilling fluid requisites, cement and fuel All camp facilities, including electricity generation Water Bowser and tractor

2.0 Technical Requirements for the Exploration Drilling Programme

2.1 Site Preparations and Maintenance

BCL shall clearly mark and designate each site to be drilled.

If the Contractor considers that access to and/or a drill site is unsuitable, unsafe or may cause excessive damage to the Contractor’s equipment, the Contractor shall immediately inform BCL prior to moving onto access or drill sites. If the Contractor fails to notify BCL of the unsuitability of the access and/or drill sites prior to using the access and/or site, then BCL shall bear no responsibility for damage or destruction to any of the Contractors equipment, which may subsequently occur.

73



The Contractor shall at all times keep all parts of the drilling sites, equipment and living quarters of the Contractor's employees on site in a reasonably neat and orderly condition and shall ensure that the sites are at all times kept free from the accumulation of waste material and rubbish caused by the Contractor’s activities.

The Contractor shall upon completion of each drill hole, remove all its material, supplies and equipment, fill in mud pits, level any worked terrain, and leave the site in a clean and safe condition.

On or before the completion of the Drilling Programme, the Contractor shall without charge and if requested to do so by BCL, remove all buildings and other structures built for or by the Contractor and remove all material and equipment and rubbish of all kinds from such buildings and their surrounding area.

2.1 Drilling

The holes drilled in accordance with the Drilling Programme shall be drilled at the locations and in the sequence designated by BCL, and to such depth as BCL may elect. The bottom of the hole and all other significant depths such as depths at which there shall be a change in hole size or drilling techniques shall be determined by BCL. The Contractor shall, upon request by BCL, drill holes to depths of up to but not, without BCL consent, greater than 800 metres or any specific instruction detailing any holes final depth for NQ core drilling.

The Contractor shall be equipped with directional drilling equipment and for the hole exceeding 1000 m and shall use drilling techniques as directed by BCL. Each hole shall be completed as herein provided and turned over to BCL, when completed, in good condition, in accordance with clause 2.1.4 above.

The contractor shall use casings and lining appropriate for down hole Time Domain Electro-Magnetic Surveying (TDEM) as directed by BCL.

The Contractor shall drill straight diamond drill holes within the parameters of acceptable maximum lift and deviation for the angle of the drill lines to the attitude of the strata, as detailed in Table 1 below. The Contractor is required to supply and fit all diamond drill requisites to complete the drilling of individual drill holes within the maximum limits of acceptable deviation and lift. Should any drill holes deviate or lift beyond the accepted specifications as detailed in Table 1 below, or should this deviation or lift persist for a duration of time without or despite mitigating actions by the Contractor, the Contracting Authority reserves the right to demand down-hole survey monitoring at the contractors cost, that the Contractor re-drills the drill hole if the deviation or lift of the original drill hole is excessive so as to have over/under drilled the target. The Contracting Authority reserves the right to terminate the contract if the situation persists for five diamond drill holes. The composition and attitude of the strata for proposed drilling at the different targets are similar to those at the existing mines and as such the range of deviation and lift will be assumed to be the same unless otherwise demonstrated during the project.

Table 1 – Drill Hole Parameters

Depth Interval Maximum deviation (º) per Maximum lift (º) per metre

74



metre drilled drilled

0 – 200 metres 0.0200 0.0064

200 – 400 metres 0.0310 0.0068

400 – 600 metres 0.0600 0.0117

600 – 800 metres 0.0800 0.0215

800 – 1000 metres 0.1200 0.0822

1000-1200 metres 0.1700 0.0822

1200-1400 metres 0.2300 0.0822

1400-1600 metres 0.3000 0.0822

1600-1800 metres 0.3800 0.0822

2000-2200 metres 0.4700 0.0822

2200-2400 metres 0.5700 0.0822

2400-2600 metres 0.6800 0.0822

The Contractor shall not move its drill rig off a particular drill hole until the BCL has notified the Contractor that the hole has been completed and has directed the Contractor to remove its drill rig in writing by the submission of a Notice of Hole Completion. Provided however that the Contractor may move its rig off a particular hole if, within 4 (four) hours after receipt of the notification of completion, BCL has failed to direct the Contractor otherwise.

The Contractor shall use such drilling media and additives thereto as are required for the due conditioning of the drill holes, in accordance with best international drilling practice, and procedures to be agreed with BCL.

If, due to loss of water flow or rock cave-in, cementing is required in a hole, the Contractor may, with the consent of BCL, stop drilling in such hole for so long as is needed to cement same and restore return flow of water therein. The Contractor shall furnish, at the rates specified in the Schedule of Rates, all necessary labour, material and equipment required for cementing pursuant to the provisions of this paragraph.

If a drill hole is abandoned before BCL planned depth due to the Contractor’s negligence, error, or equipment failure then the cost of the abandoned hole shall be borne by the Contractor and BCL has, while the Drilling Programme is in progress, a right to request the Contractor to re-drill the hole to BCL planned depth at a location specified by BCL.

The tenderer shall ensure that any specialised tooling (Core Orientation Tool, and the like) shall be included in the scope of work and hence is to be included for in the unit rates to be priced in Appendix E1 “Contract Price Schedule”.

Some drill holes will be surveyed with down-hole geophysical equipment, to be undertaken by BCL.

75



Particulars relating to any standby costs are dealt with in Annex B.

2.2 Sampling

The Contractor shall collect such drilling samples, as BCL shall direct. The Contractor shall take all reasonable precautions to guard against sample contamination due to poor circulation, hole erosion, caving or other causes.

It is mutually agreed that BCL and the Contractor shall co-operate so that as high a percentage of core recovery is made as the nature and condition of the ground shall permit, subject to the following:The Contractor shall take all reasonable steps and precautions to ensure that core recovery meets or exceeds a minimum of 95% of the total possible core recovery in the mineralised zone.

In the event that the core recovery rate is less than 95% in the mineralised zone, BCL may request the re-drill of the substandard intersection at no additional cost to BCL, unless, on consultation between BCL and the Contractor, it is agreed that a recovery rate of less than 95% was unavoidable due to geological conditions, such as cavities.

Should any situation as outlined above in respect of quality or poor condition persist for a period of five days without mitigating actions by the Contractor, then the Contracting Authority reserves the right to terminate the contract.

All drilling samples recovered by the Contractor, whether or not the sample comes from a hole, which is abandoned or lost, shall be the property of BCL.

BCL will be responsible for collecting the Core Boxes containing drilling samples from the Drill Site, and transporting them to the designated Core Yard/ sample storage facilities.

2.3 Casing and Protection

The Contractor shall install and maintain adequate casing and lining in holes in the event that such is required to ensure maximum sample recovery and allow down hole TDEM, and in any event when directed to do so by BCL. BCL may, at their absolute discretion, direct the Contractor to case the entire hole or any part of the hole.

If so directed by BCL, the Contractor shall, upon its completion and in such a manner as to prevent the entrance of foreign matter into the hole, cap each hole. The standard for this protection shall be agreed to from time to time with BCL.

The Contractor shall abandon surface casing in any hole if requested to do so by BCL. Any casing so abandoned shall be paid for by BCL.

The Contractor may recover the casing from each hole unless a request is made under clause 2.4.3. The cost of any casing left in any hole otherwise than pursuant to such request or for which BCL is obliged to pay pursuant to Clause 2.4.5 shall be borne by the Contractor.

The cost of casing and equipment lost through ground conditions or BCL negligence shall be borne by BCL, provided that the Contractor shall make a reasonable effort to recover same and provided

76



further that such cost is limited to equipment that was necessary in the drilling of the relevant hole. The Contractor shall bear the cost of loss of casing and auxiliary equipment due to any other cause.

2.3 General Obligations

All Works shall be undertaken in accordance with the best standards, practices and safety and environmental measures of the drilling industry and shall fully comply with the requirements of:

The Mines, Quarries, Works and Machinery Act (Botswana) Act, 1998 or latest revision All environmental laws and regulations in effect in the Republic of Botswana. BCL Limited “Contractors Safety Health and Environmental (SHE) programme.” refer to

Section G

77



GEOLOGICAL & OTHER DATA

1.0 Background Geological Information

1.1 Regional Geology

In Selebi Phikwe, three Ni-Cu base metal sulphide deposits (Phikwe, Selebi and Selebi North) occur along the northern margin of the Limpopo Belt’s Central Zone with a total initial resource of 169 Mt with 0.81% Ni and 0.87% Cu, and rank’s as a major Ni district on the continent. The stratabound sulphide mineralisation is hosted within an amphibolite derived from a mafic magma (Lear, 1971; Gordon, 1973; Wakefield, 1975; and Brown, 1987), which intruded in response to a collisional tectonic regime. Intense deformation events have resulted in modification of the regional trending east-west fabric, and structural control on the Ni-Cu ore-shoots is evident. Distinct Ni-Cu distribution patterns evident between the mines are investigated. This study is concerned with the metal distribution, which can be attributed to remobilisation and that attributable to the preservation of primary crystallisation patterns.

1.2 Geological Setting and Structure

The Selebi Phikwe metallogenic district can be divided into an earlier (ca. 2700 Ma) banded sequence of hornblende-, quartz-biotite- and feldspar-rich banded gneisses and a later granitic gneiss (U-Pb zircon age 2652 Ma; McCourt and Armstrong, 1998). The stratabound-mineralised horizon at each deposit occurs at a similar stratigaphic horizon, conformable with respect to hornblende-rich footwall gneiss and quartz-biotite rich hangingwall gneiss. These late Archaean granulite facies grade rocks of the Central Zone are separated from the Northern and Southern zones by the Mogogaphata and Palala shears, respectively (McCourt and Verncombe, 1992), and are considered as major discontinuities in the tectonic-genetic models for the Limpopo belt (summarized in Thomas et. al., 1993).

Two prominent macro structures, the Selebi Synformal Basin and the Phikwe Antiform, host and control the location of the deposits in tight and open folds. Deformation evident in fold events F1-F4/F5 (Mason, 1973; Key and Hutton, 1976; Gordon, 1973; Wakefield, 1975) has modified the deposits. The most significant are large-scale isoclinal folds (F2), which have subsequently undergone shearing and refolding by F3, upright open folds with fold-axis coaxial with F2

(Wakefield, 1975). Differentiation of F2-F3 phases in the mineralised massive sulphide rock and amphibolite horizons is equivocal. The orebody-thickness at each deposit varies significantly in the strike and dip directions, and are attenuated (0.2-0.5 metres-thick) at the margins by late D2

shears that trend ENE at Phikwe and Selebi. Thickening of the orebody at Phikwe 20-60 metres can be considered in terms of tectonic duplication related to syn- F2 thrusting. The broad “Thick Zone” at Phikwe trends sub-parallel with the major ENE shears. Prominent ore shoots at Selebi and Selebi North are sub-parallel with the trace of major F2 and F3 fold structures, respectively.

1.3 Sulphide Mineralisation and Zonation

Sulphide mineralisation comprising predominantly pyrrhotite, chalcopyrite and pentlandite occurs as two main ore types: (i) Massive-to-semi massive sulphide rocks, exhibiting either breccia, tectonic or re-crystallised textures, occur as 0.2-3.0 metre-thick units predominantly along the hangingwall. (ii) Disseminated and stringer sulphides (1-2 mm) in amphibolite are continuous for 2-10 metres defining a metamorphic fabric, or on further remobilisation exist as irregular or discordant bands. Fine lamellae of pentlandite (Pn), <0.1mm occur within the

78



pyrrhotite (Po) and lesser in solid solution with Po. The typical Po/Pn for mining ore concentrates is typically 10. In contrast, Cu is exclusively found in chalcopyrite, and commonly occurs as coarse-grained (2-20 mm) re-crystallised segregates. At the base of the amphibolite horizon, it is common for a 0.5-2 metre-thick schistose amphibolite to develop with small sulphide contents.

The %Ni in the disseminated-type mineralisation for all the deposits have a similar positive skewed distribution, whereas, the massive-type mineralisation is negatively skewed, except at Phikwe Central where it is normal. The %Ni distribution at 5, 50 and 95 percentiles are as follows: Phikwe Central (0.60, 2.00, 3.38), Phikwe South East (0.94, 1.87, 2.25), Selebi (0.32, 2.26, 3.57) and Selebi North (1.04, 2.33, 3.01) reflects the pentlandite concentration in clean massive ore for each deposit. The higher %Ni values approximate pure massive mineralisation free of significant rounded hornblende, quartz and gneissic inclusions.

The Ni and Cu grades exhibit a crude decreasing gradient from hangingwall to footwall through typical unduplicated sections of the orebody and correlates with the proportion of pyrrhotite. This is represented by high %Ni values (>1.0 %Ni) in the massive mineralisation along the hangingwall, moderate values (0.3-0.6% Ni) in the disseminated host rock, and low in the schistose amphibolite along the footwall (<0.1%Ni). Variations of Ni and Cu grades in the massive ore expressed as Ni/(Ni+Cu), referred as Ni-ratio, are prominent at Phikwe Central, Selebi and Selebi North, but relatively constant in Phikwe South East. In the latter, the spatial distribution of Ni/(Ni+Cu) highlights no macro metal zonation within this breccia-textured tabular orebody. Local variation in the Ni-ratio is attributed to limited remobilisation most likely during D2. In contrast, lower values (<0.5) of the Ni-ratio in Phikwe Central are found along the west margin of the deposit where narrow (0.5-2.0 metres) cataclasite-textured massive ore exists, and towards the north of the Thick Zone. The Phikwe Central metal zonation in massive ore is variable on a scale of 200 metres, attributable to local remobilisation of Cu found in segregates and fold structures. Similarly, at Selebi the Ni ratio is extremely variable in the massive mineralized samples. The greater tenor of Cu at Selebi found in remobilised chalcopyrite segregates results in greater number of samples with low Ni/(Ni+Cu) values also show no consistent change along strike or dip of the deposit.

79



Figure One: Regional setting of The Selebi Phikwe Ore Bodies.

2.0 Additional Information

2.1 Laboratory Support

A modern laboratory on site provides for a wide range of geochemical analysis. The effectiveness of the programme is underpinned by “XRF” and “ICP” facilities, available for the expedient analysis of collected samples, together with a good turnaround of results.

2.2 Exploration Activity

Sample preparation and all current core are based at the BCL “Tech block” core yard. A permanent core yard with sample storage facilities is also available there.

Zimbabwe Craton

NMZ

Central Zone

Msz

Ssz P

sz

Tsz

Karroo

Palapye Group

80



2.3 Integrated Database System

Support to the exploration activities is provided by the “Datamine” software system. This has increased data processing productivity and provided a good database for maintenance of data integrity.

2.4 Structural Work

Although surface exposure is poor, structural and geological mapping will be required especially over the mining lease area to aid the interpretation of the stratigraphy and hence mineralisation trends. The high resolution of the airborne geophysical survey to be conducted by BCL prior to the commencement of this programme, will go a long way in addressing this matter.

2.5 Project Staffing- Contracting Authority

BCL will provide an adequate number of trained staff, with appropriate skill levels, to be able to execute drill plans, process drill data and carry-out geological analysis and interpretations leading to resource estimation.

2.6 Resource Estimation

Resource estimation work will be carried out on completion of the modelling work. The majority of this work will be carried out in house, using consultants only on the more complicated uniform conditioning; which is the last stage of the process. The same consultant will also audit and approve work done by geologists from BCL.

81



Annex B - Rates for Additional Services

ITEM NOS

QUANTITY DESCRIPTION TOTAL PRICE PULA

STANDING TIME

Delays to the Raise Bore programme due to: failure of BCL to comply with their obligations under

the Contract, exceptional risks, as defined in Clause 21 of the

General Conditions, as may be amended by the Special Conditions

Suspension of the Contract, where provided for in Clause 38 of the General Conditions, as may be amended by the Special Conditions

Standing time rates for personnel and equipment to be stated as follows:-

Contractor

Machine rental per work hour (to cover all costs of labour, equipment, materials, etc associated with standing time) ………BWP /hour

82



Annex C – Compliance with Specification

Drilling EquipmentManufacturer and Model of Drilling Rigs and year of manufactureMinimum number of Drilling Rigs on site at one timeMaximum number of Drilling Rigs on site at one timeManufacturer and Model of Support equipment and year of manufactureMaximum depth to which Drilling Rig can operate Maximum width of Drilling RigsEstimated average Drilling Rig progress per shift ……… metresEstimated water consumption per shift and drilled hole … cu. metresSpecification of equipment for Directional Drilling

Support ServicesSite organization- please provide organogramProposed equipment and camp layout for the housing of all on-site personnelProvide details of how the equipment and personnel will be supported on site to minimise breakdownsNumber of personnel per Drilling RigNumber of Botswana employeesNumber of expatriate employees, and expected duration on site for eachNumber of hours to be worked per day and average duration of each shift, the number of operating days per week, and the average number of hours expected to worked by employees per weekProposed National and Public Holidays to be workedTenderer to submit CVs for key site and support personnel

ReferencesExperience of the Tenderer. (Information to include detailed information of client base, meters and dimensions per contract, average depth, deepest drill hole and date of contract)

83



Appendix F1– Points of Note

NB: This note aims at drawing the attention of Tenderers to specific points of the tender procedure. By no means, does it relieve Tenderers from adhering to the other terms and conditions of the tender dossier. Failure to comply with the latter may entail the rejection of the Tender.

These are grounds for automatic rejection:

1. Offers made on any other terms than those required in Section E, Appendix E1 and E4 as well as in Section F, Appendix F1.

2. Unsealed tenders (Section B, Article 31.1).

3. Offers made in any other currency than the national currency (Section B, Article 24.4). Tenderers’ attention is drawn to the provisions of Section B, Article 24.5 allowing them to request payment of a justified part of the tender price to be paid in a foreign currency. The justification required shall be assessed in the light of the verifiable facts as regards the real origin of the supplies and of the expenditure to which they give rise. The fixed exchange rate for calculating payments in foreign currency is defined in Article 24.5 of Section B and shall not be varied.

Essential for the tender:

1 Delivered according to the date and time stated

2 Delivered in clearly marked and sealed condition

3 Submitted according to the Tender Form

4 Performance guarantee strictly following the tender template (Annex D.1)

5 Made in National Currency (Botswana Pula)

6 Justification regarding payment in foreign currency, if appropriate

7 Clear reference to pertinent exchange rates for payment in foreign currency, if appropriate

8 Tender Guarantee

9 Site Visit Certificate and copy of site visit minutes, if appropriate

84



Appendix F2 – Vendor Questionnaire

PLEASE NOTE: FAILURE TO COMPLETE ANY PART OF THE FOLLOWING QUESTIONNAIRE MAY LEAD TO DISQUALIFICATION OF THE TENDER

Tenderers name and address

Telephone No:

Fax No:

Company Web-Site:

Name of contact dealing with this Tender

E-mail Address

Tenderers own Tender Reference No.

Manufacturer’s name and address (if different from above)

85



Appendix F3 – Checklist

(to be ticked by the Tenderer and signed off for inclusion with their Tender):

i Does the tender state tender validity as 90 days from the latest date for tender submission ?

ii Does the tender confirm Section D & E that within 30 days of notification of Contract award a Performance Guarantee in the required format will be supplied for 10% of the Contract Price ?

iii Does the tender confirm Section D & E acceptance of the payment terms specified in Articles 44, 46 and 50 of Section D and in Section E of the tender dossier ?

iv Period of Performance max 400 days from notification of Contract award

v Does the tender confirm acceptance of the liquidated damages specified in Article 36.1 of Section D ?

vi Does the tender include:

a Price Schedule properly completed ?

b Documents confirming Eligibility to tender ?

c All information necessary for evaluating the tender ?

d Details of sub-contracting ?

e Specification questionnaire properly completed ?

f Are the unit prices (i.e. rates) quoted fixed for the duration of the Contract?

g Does the tender confirm acceptance of the terms and conditions set out in the tender dossier ?

Signed………. ………… …………… ………….[to be signed by tender signatory]

Date..................

86

Part II: Technical AnnexSECTION G

CONTRACTORS SHE INDUCTION PROGRAMME

Section G - BCL Limited Contractors Safety, Health & Environment Induction Programme

CONTENTS

1.0 Introduction

2.0 Legal appointments

2.1 Duties of responsible persons2.2 Labour returns2.3 Hours of work2.4 Accidents2.5 Dangerous occurrences2.6 Intoxicating liquor2.7 Work and residence permit2.8 Site establishment2.9 Appointment of SHE officers2.10 Medical

3.0 Use of Vehicles

3.1 Driving Licenses3.2 Transportation of staff3.3 Open pit driving permits3.4 Traffic Violations3.5 Earthmoving machinery

4.0 Security

4.1 Security requirements

5.0 Safety Health

5.1 Induction of staff5.2 Safety Meetings5.3 Site Notices5.4 Registers and site instruction books5.5 Machinery5.6 Life Belts/Jackets5.7 Housekeeping5.8 Lockout procedure5.9 Hot work permit5.10 Personal Protective equipment5.11 Trained personnel to undertaking of tasks5.12 First Aid Facilities5.13 Work at elevated levels5.14 Radiation Sources

87



5.15 HT Electrical switching5.16 Hearing Conservation5.17 Fire Fighting Equipment5.18 Eye Protection5.19 Storage of flammable substances 5.20 Lighting 5.21 Scrap Removal 5.22 Adherence to standards5.23 Electrical Installations5.24 Footwear

6.0 General Mine Requirements and Information

6.1 Liaison with Mine6.2 After Hours work6.3 Fire Alarms6.4 Blasting operations6.5 Subcontractors6.6 Pre and Post employment medical checks6.7 Health and Hygiene6.8 Discipline of staff6.9 HIV/AIDS6.10 Recruitment of Labour

7.0 Environmental Management

7.1 Environmental Policy

8.0 Emergency Numbers

******

1.0 INTRODUCTION

BCL Limited Safety Health and Environmental (SHE) Programme is based on Botswana Mines, Quarries, Works and Machinery Act regulations chapter 44:02 of 1978, minimum standards set by the National Occupational Safety Association (NOSA), ISO 14001 and the standards set BCL Limited management. All employees must attend a General Safety, Health and Environmental induction conducted by the SHE department prior to commencement of work.

The Mine recognizes that the safety of every person working in the mine is of paramount importance. It is also the view of the mine that all employees have the right to work in a healthy and safe environment.

It is required that all contractor employees holding senior positions to acquaint themselves with relevant SHE policies and procedures, the mine SHE Programme and the requirements of the relevant legislation. Copies of the relevant policies and procedures are available from the responsible manager/Engineer.

88



2.0 LEGAL APPOINTMENTS

2.1 Managers, Foremen, Supt, Supervisors etc will be appointed in terms of regulation 9.4 of the Mines, Quarries Works and Machinery Act (cap 44:02) (MQWM) and are required to familiarize themselves with its contents. Other appointments, which may be effected in terms of the Act, will be under regulations 13(2), 14(2), 250(1) and 250(2).

A site manager appointment will be initiated by the responsible Engineer and approved by the Engineering manager.

The contractor site manager may appoint a subordinate manager.

The site manager will use the mine’s standard appointment letter for appointing his competent or responsible person.

2.2 Labour Returns

Each contractor is required to supply the mine SHE department with the number of man-hours worked by his employees each month. The labour return must be submitted on the 1st of each month.

Duties of Responsible Person

Responsible persons as outlined in 2.1 above have the following duties:

Defining the persons responsible for maintaining good housekeeping standards, responsibilities have to shown clearly on a plan of the area.

Defining responsibility for keeping current registers and monitoring to ensure compliance. Only relevant information may be kept in the safety Programme registers.

Perform monthly inspection of work sites using a suitable checklist.

Chair monthly SHE meetings for his company and ensure that toolbox talks are held.

Ensure that standards and codes of practice are being adhered to.

89



2.3 Hours of Work

Contractors must comply with the limits imposed by the relevant legislation in respect of hours of work.

2.4 Accidents

All incidents/accidents must be reported to the mine SHE department using the relevant/prescribed forms. The forms are to be routed through the relevant manager/engineer to the SHE department.

The relevant manager is to be informed within 8 hours of any injury requiring medical attention. A formal enquiry into all lost time incidents will be conducted and chaired by the manager responsible.

2.5 Dangerous Occurrences

Dangerous occurrences must be reported to the government inspector of mines as prescribed by regulation 37(1) of MQWM Act and contractors must report all dangerous occurrences through the responsible manager.

Examples of dangerous occurrences include:

a) The fracture or failure of any part of machinery.

b) Where the safety of any person has been endangered.

c) The accidental ignition or detonation of explosives and accident due to explosives.

d) The flooding of any considerable portion of the workings or failure of any dam or reservoir used for conserving water or slimes, etc.

2.6 Intoxicating Liquor

Intoxicating liquor and narcotic drugs are not permitted in the mining area. Persons under the influence of liquor or drugs will not be permitted into the mine or to remain in the working areas of the mine.

2.7 Work and Residence Permits

Work and residence permits are required for person who are not citizens of Botswana. The contractor is responsible for obtaining the necessary permits from the Department of Labour and Immigration for his workforce prior to their commencing work on site. The mine will not apply for these on his behalf. For Botswana citizens, the national ID card should be produced as proof of citizenship.

90



2.8 Contractor Site Establishment

The relevant engineer/manager in whose area the work is to take place will allocate sites for the establishment of contractors. The contractor is expected to provide facilities of such a standard that meets the approval of the responsible manager/engineer.

2.9 Appointment of SHE Officer

Where a contractor has more than 15 employees on the construction site, the contractor is expected to appoint a SHE representative. Such SHE representative will have the same roles and responsibilities as defined for those within the mine operation.

Where a contractor has more than 50 personnel on the construction site, and the duration of the contract is anticipated to be in excess of 6 months, then a full time SHE officer must be employed. The SHE officer will be responsible to the mines SHE Manager. He/she will be expected to be suitably qualified and experienced.

3.0 TRAFFIC AND USE OF VEHICLES

3.1 Driving licenses

All drivers are required to be in possession of a valid Botswana driver’s license. If a contractor has to drive a company vehicle, he must be in possession of a valid company driving authorization permit.

3.2 Transportation of Staff

It is the responsibility of contractors to ensure that their employees are fully briefed about company requirements in respect of transportation of staff in vehicles. Persons and material may not be transported together at the back of any LDV unless equipment and or material is properly secured. The maximum permissible number of people to be transported at the back of a long wheelbase LDV is six and four at the back of a short wheelbase.

Tipper trucks may not be used as transport for employees.

3.3 Open Pit Driving Permit

No person is allowed to drive any vehicle in the mining area unless he/she is in possession of a valid open pit driving authorization permit issued by the mine SHE department. All earthmoving machines have right of way on haul roads.

All non-earthmoving vehicles entering the open pit area must be equipped with reflective flags and revolving lights.

91



3.4 Traffic Violations

Contractors are required to obey traffic rules and regulations and to enforce compliance by their staff. Traffic offenders will not be allowed to continue driving in mining areas. All vehicles used on roads in the lease area must be roadworthy as prescribed by Botswana Road Traffic Act. The speed limit in and around the mine is 40km/hr; whilst from the main gate to the main road is 80km/hr.

3.5 Earthmoving Machinery Reversing.

Mine earthmoving machines are fitted with audible reverse alarms. Operators have a great difficulty in seeing light vehicles behind their machines. Drivers must avoid stopping and parking near machines.

4.0 SECURITY

4.1 Security Requirements

Contractors are required to comply with the mine security requirements. The movements of goods from the mine are strictly controlled and close liaison with security is required.

The mine reserves the right to inspect any item on the mine. The mine also has the right to search any person or vehicle within the mining lease area. The removal of goods from the mining lease area must be accompanied by a gate pass. The gate pass must be signed by an authorized senior mine official.

5.0 SAFETY AND HEALTH

5.1 Induction of Staff

The mine SHE department provides general Safety, Health and Environmental induction while on the job induction remains the responsibility of contractors and departments. Contractors are required to induct new employees into the company’s SHE system, as all contractors work in accordance with the Mine’s SHE Programme. The onus rests with the contractor to prove that such induction has taken place. Work may not commence until the employee/employees have been inducted.

5.2 Safety Meetings

The contractor will conduct safety meetings chaired by the Site Manager; the site manager will also attend the mine area meetings. Contractors are required to send a representative to the applicable area safety meetings. Details of the meeting venue and dates will be obtained from the relevant

92



manager/engineer. The representatives will normally be 9.4 appointee/appointees.

5.3 Site Notices

Contractors are required to have site notices prohibiting unauthorized access to their construction sites and sites must be suitably demarcated and or fenced.

All mandatory signs must be prominently displayed on boards bearing the name of the contractor and telephone number.

5.4 Registers and Site Instruction Books

Registers and checklists must be kept of equipment, which, if faulty, could pose a hazard.

This will normally encompass the following for contractors:

Portable electrical equipment Ladders Slings Lifting gear, including cranes and forklifts Hand tools Pressure Vessels Scaffolding Earth Leakage Welding cables Oxyacetylene sets Fire fighting equipment

Copies of registers can be obtained from the SHE department.5.5 Machinery

The following points must be noted carefully: Riding on a conveyor belt is prohibited Disembarking from a vehicle in motion is prohibited All rotating machinery must be guarded to prevent injury Standing or walking under suspended loads is prohibited Hand tools must be kept in good condition. Flash back arrestors must be fitted to oxy acetylene equipment The lifting of persons by cranes or other unauthorized lifting equipment is

prohibited. Working on moving machinery is prohibited.

5.6 Life belts/jackets

93



People working near an accumulation of water, i.e. dams, thickeners, where danger exists of them falling into water must wear life belts/jackets.

5.7 Housekeeping

Contractors are required to keep their construction sites tidy and free of debris. Waste that is generated by contractors must be removed according to laid down standards/procedures.

5.8 Lockout Procedure

A procedure exists on the mine to ensure that machinery has been locked out before work is performed on it. Contractors are required to familiarize themselves with the procedure.

5.9 Hot work and excavation permits

Hot work permits are used on the mine for the control of hot work. Permits must be used where burning, welding, gouging, etc. in areas where such work could pose a hazard. Contractors are required to have staff that will perform hot work examination to determine competence. Where hot work is performed in a hazardous area, the contractor must have a hot work permit dully signed by a mine official.

The authorizing official will normally be a boilermaker foreman or manager responsible for the project.

Excavation permits must be obtained prior to any excavation work in the mining lease area.

5.10 Personal Protective Equipment (PPE)

The contractor shall and maintain in good order, adequate protective equipment suitable for the job being undertaken. The SHE department maintains schedules of protective clothing requirements for mine employees and this must be used as a standard. Contractors are required to ensure that their employees wear protective clothing as and when required. Each main contractor is required to ensure that any sub contractor under his charge complies with the mine’s requirements. The contractor shall issue all his employees with all required personal protective equipment free of charge and enforce the correct use of the equipment.

Care and maintenance of PPE is the responsibility of the employee.

5.11 Trained Personnel to undertake tasks

94



Contractors must ensure that people carrying out work are adequately trained and experienced (competent) to perform the work. Where semi and un-skilled people are employed, adequate supervision must be available to maintain standards of work and compliance with safety rules.

5.12 First Aid Facilities

Contractors are required to ensure that adequate first aid facilities are available at their site. Contractors are also required to ensure that at least one person trained in first aid is available at each site.

5.13 Work at elevated levels

Work at elevated levels must comply with the mine policy and SHE standards. Copies of the relevant documentation may be obtained from relevant manager/engineer.

5.14 Radiation Sources

Contractors must take note that there are radiation sources in the plants, which measure various parameters. The location of sources has standard radiation warning signs. If a contractor has to perform work near a source, he must liaise with the responsible engineer to establish the precautions to be taken.

5.15 HT Electrical switching

A policy exists on the mine to control the switching of high-tension electricity. A contractor requiring high tension switching must liaise with the electrical foreman. Contractors are not permitted to effect switching without authorization.

5.16 Hearing Conservation

The company has a standard on hearing conservation in the working environment. Contractors are expected to familiarize themselves with the standard and adhere to its requirement.

5.17 Fire fighting equipment

Contractors are required to ensure that adequate fire fighting equipment is available at strategic points on every site.

5.18 Eye Protection

The mine has a standard to control areas where eye protection is required. A copy of this standard may be obtained from all HOD’s, Managers and Engineers. Suitable eye protection shall be worn by all employees when grinding, sand blasting digging or engaging in any operation which could result in particles straying into the employee’s eyes.

95



5.19 Storage of flammable substances

Flammable substances must be properly stored in designated areas or cabinets. Such substances must not be stored on company premises where fire would constitute a serious risk to persons on mine operations unless authorized by a

senior mine official. All storage shall be sign posted accordingly, e.g. No smoking, No Naked Flames.

5.20 Lighting

Contractors must ensure that lighting is adequate in all areas of work especially at night.

5.21 Waste removal

The waste generated might not warrant weekly collection hence ‘regular’ is the preferred term. All debris generated by contractors must be collected and taken to a properly designated site at least on a weekly basis. The work area must be kept neat and free from rubble and debris. All materials must be neatly stacked with adequate spacing between stacks to allow free movement of personnel.

5.22 Adherence to standards

Contractors must adhere to the mine standards as laid down in the company’s policies and procedures. Site managers must obtain copies of relevant policies and procedures and familiarize themselves with their contents.

5.23 Electrical Installations

All new or temporary site supplies must be approved by the responsible engineer/manager and earth leakage protection must be installed all times.

5.24 Foot protection

The contractor shall issue all contractor employees with suitable steel toe capped footwear free of charge.

96



6.0 GENERAL MINE REQUIREMENTS AND INFORMATION

6.1 Liaison with the Mine

The Appointed Engineer (herein referred to as the “Engineer”) in whose area/under whose jurisdiction the work is to take place will be the contractor’s point of liaison with the mine.

6.2 After hours work

Contractors must avoid having persons working alone in remote locations of the mine, particularly after hours.

6.3 Fire alarms

If an audible fire alarm is activated, all persons are required to leave their place of work and gather at the fire assembly points for their areas. Contractor employees are required to familiarize themselves with the fire alarm and the location of the fire assembly points.

Contractors are also required to familiarize themselves with the fire fighting procedure. A fire assembly point and an alarm system must be provided at every work site.

6.4 Blasting operation

The mining operation requires that the ground and rock be blasted continuously. Blasting times are normally 15h00 and before the blast, an alarm will sound. Warning flags will be displayed at the entrance to the mine. When blasting occurs in some sections of the mine or on surface, all staff must vacate all designated danger areas.

Contractors are not permitted to perform blasting operations within the mining area without permission from the mine. The mine has a procedure for the execution of blasting operations outside the mining area. Any contractor requiring blasting operations must contact the responsible manager controlling the contract.

6.5 Subcontractors

Main contractors are responsible for the actions of their sub-contractors. If a contractor wishes to introduce a new sub-contractor to the mine, he/she must inform the manager/engineer. All sub-contractors shall be inducted on all safety procedures as applicable to the main contractor. And they will be required to sign such documentation as applicable and legally binding to the execution of their tasks.

97



6.6 Medical

The mine provides free medication for all contractors and sub-contractors within the mine, but contractors must ensure themselves for workman’s compensation.

6.7 Occupational Health

Contractors are required to comply with the mine Occupational Health Policies. This includes pre-and post employment medical checks. The contractor is required and is responsible for making the necessary arrangements for these medical checks.

6.8 Discipline of staff

All contractors are required to have a disciplinary policy and procedures in place and are expected to exercise such discipline and control over their employees.

6.9 HIV/AIDS Awareness

All contractors are required to comply with BCL Limited HIV/AIDS policies.

6.10 Recruiting of Labour within the lease area

It is a requirement that the recruitment of local labour is done though the Selebi Phikwe Labour office. No recruitment activities are permitted within the mining lease area.

7.0 ENVIRONMENTAL MANAGEMENT

7.1 All contractors are required to comply with BCL Limited environmental policies.

8.0 EMERGENCY NUMBERS

DEPARTMENT INTERNAL NO: EXTERNAL NO: CELL PHONE NO:SHE 1483/1342/1321 2621221 71311469

Fire 1225 2621225 71886949Ambulance 1283 2621283

Security 1221 2621221 71312675

Police 999 080060063

Fire Brigade 998

M. MphathiGENERAL MANAGER

98