Section 10, The Tonkolili Agreement Ordinance

(a) If at any time during the term of the Second Licence and/orthe Permanent Lease the Company after being requested so to do by the Government shall fail to adduce reasonable proof that the reserves of workable iron ore of good shipping quality within the Marampa Concession are in quantity more than seven times the average of the quantity of annual shipments from such Concession during the five calendar years immediately preceding such request the Government may give notice in writing to the Company requiring it within twelve months of the date of such notice to commence construction of the railway extension and the Company shall duly comply with such request save in case of force majeure or unless before the expiration of such twelve months it agrees to surrender the Second Licence or the Permanent Lease as the case may be. In the event of any dispute as to whether or not the Company has adduced such reasonable proof the same shall be referred to arbitration in accordance with Clause 27 of this Agreement and the period of twelve months hereinbefore mentioned shall not be deemed to commence until the conclusion of such arbitration. (b) Subject as aforesaid the Company shall not be under any obligation to commence construction of the railway extension. (c) When and if the Company shall commence construction of the railway extension it shall proceed with such construction so as to complete the same within five years from the date of commencement save in the case of force majeure or unless the Government shall consent to a prolongation of the period of construction. Such consent shall not be unreasonably withheld in the event of unforeseen difficulties arising. (d) Failure by the Company to commence the construction of the railway extension in accordance with the provisions of this clause save in the case of force majeure shall entitle the Government to cancel the Second Licence or the Permanent Lease as the case may be forthwith by notice in writing to the Company to that effect. This right of cancellation shall not extend to separate mining rights andfor mining leases which may have been granted by the Government to the Company during the periods of the First and/or Second Licence and/or the Permanent Lease under the provisions of Clauses 3, 6 and 9 hereof or any rights or easements which at the date of such cancellation are enjoyed with such separate mining rights andfor leases. (e) The provisions of the Marampa Railway and Harbour Works Construction Ordinance shall 1mdatis mutandis be made applicable to the railway extension. All lands within and without the demised areas which are required for the railway extension shall be acquired by the Company under the provisions of that Ordinance. (f) Where the term " force majeure " is used in this clause it shall be deemed to include war or the anticipated imminence thereof between any nations prohibition of shipment transport or import of iron ore civil commotion political disturbances financial crises strikes lock-outs accidents epidemics and any other event of any nature or kind whatsoever beyond the personal control of the Company which directly or indirectly hinders or prevents the Company from commencing or proceeding with the construction of the railway extension.