Common use of LOCAL BUSINESS DEVELOPMENT Clause in Contracts

LOCAL BUSINESS DEVELOPMENT. 1. The Company shall, to the extent reasonably and economically practicable, having regard to the nature of the particular goods and services, promote, support, encourage and lend assistance to Indonesian nationals desirous of establishing enterprises and businesses providing goods and services for the Enterprise and for the permanent settlement(s) (if any) constructed by the Company and the residents thereof, and shall generally promote, support, encourage and assist the establishment and operation of local enterprises outside any Mining Area. 2. The Company shall make maximum use of Indonesian sub- contractors where services are available from them at competitive prices and of comparable standards with those obtainable from elsewhere, whether inside or outside Indonesia. 3. Insofar as it is practicable the Company shall give first preference in its assistance hereunder to landowners in and other people originating from the area of the Enterprise. 4. Except as otherwise agreed by the Department, the Company shall, at the commencement of the Feasibility Studies Period with respect to an Exploration Area, appoint, for such period as is reasonably necessary, a member of its staff who has had experience within Indonesia of the establishment, control and day-to-day running of enterprises controlled and run by Indonesians who shall: (i) identify activities related to the Enterprise including the provision of goods and services as described above which can be carried on by Indonesian nationals or local enterprises ; (ii) advise and assist Indonesian nationals desirous of carrying on those activities or of establishing enterprises to do the same; and (iii) implement, or assist in the implementation of, the Business Development Program as hereinafter described on behalf of the Company. The staff member appointed for this purpose shall be a full time employee of the Company. 5. The Company shall, directly or indirectly, provide funds for, and assist in the development of a Business and Community Development Program designed to assist Indonesian Participants in the province in which the Enterprise is located, which Program shall be submitted to the Government as part of the Company's feasibility study report as described in Annex "E". 6. Except as otherwise agreed by the Government, the Business Development Program will make provision as far as is practicable for the following (except to the extent of activities to be carried out directly by the Company): (i) enterprises involved in the supply and maintenance of Mining equipment and the provision of consumable supplies; (ii) subcontracting to self - employed equipment operators for road construction and maintenance; (iii) subcontracting of site preparation, construction and maintenance of houses, Government buildings, industrial facilities and other works and buildings and facilities to be established, including concreting, welding, tank constructions, steel fabrication, plumbing, electrical work and timberwork; (iv) enterprises involved in town services such as sewerage and garbage collection, treatment and disposal, passenger transport, freight carriage of consumer items and stevedoring (except in relation to the shipping of the Products of the Mine); (v) enterprises involved in trade stores, supermarkets, other retail outlets, canteens, restaurants, taverns, cinemas, social clubs, cleaning and laundry, and vehicle maintenance and repair facilities; (vi) enterprises involved in the supply of fresh fruits, vegetables, meat and fish; and (vii) other activities agreed to by the Company and the Government; 7. Except as otherwise agreed by the, Government the Business Development Program shall also include details of: (i) the time schedule for its implementation; (ii) those additional activities which could be established by Indonesian nationals;

LOCAL BUSINESS DEVELOPMENT. 1. The Company shall, shall to the extent reasonably and economically practicable, practicable having regard to the nature of the particular goods and services, services promote, support, encourage and lend assistance to Indonesian nationals desirous of establishing enterprises and businesses providing goods and services for the Enterprise and for the permanent settlement(s) settlement (if any) constructed by the Company and the residents thereof, and shall generally promote, support, encourage and assist the establishment and operation of local enterprises outside any in the Mining Area. 2. The Company shall make maximum use of Indonesian sub- sub-contractors where services are available from them at competitive prices and of comparable standards with those obtainable from elsewhere, whether inside or outside Indonesia. 3. Insofar as it is practicable the Company shall give first preference in its assistance hereunder to landowners in and other people originating from the area of the Enterprise. 4. Except as otherwise agreed by the Department, the The Company shall, at the commencement of the Feasibility Studies Period with respect to an Exploration AreaPeriod, appoint, appoint for such period as is reasonably necessary, a member of its staff who has had experience within Indonesia of the establishment, control and day-to-day running of enterprises controlled and run by Indonesians and who shall: : (i) identify activities related to the Enterprise including the provision of goods and services as described above which can be carried on by Indonesian Indonesians nationals or local enterprises ; enterprises; (ii) advise and assist Indonesian nationals desirous of carrying on those activities or of establishing enterprises to do the same; and and (iii) implement, or assist in the implementation of, the Business Development Program as hereinafter described on behalf of the Company. The staff member appointed for this purpose shall be a full time employee of the Company. 5. The Company shall, directly or indirectly, provide funds for, and assist in consultation with the Government prepare a Business Development Program for the development of a Business Indonesian businesses and Community Development Program designed enterprises associated with or incidental to assist Indonesian Participants in the province in which the Enterprise is located, which Program shall be submitted to the Government as part of the Company's ’s feasibility study report as described in Annex "“E"”. 6. Except as otherwise agreed by the Government, the The Business Development Program will make provision as far as is practicable for the following (except to the extent of activities to be carried out directly by the Company):following: (i) enterprises involved in the supply and maintenance of Mining mining equipment (other than that carried out by the Company) and the provision of consumable supplies; (ii) subcontracting to self - self-employed equipment operators for or road construction and maintenance; (iii) subcontracting of site preparation, construction and maintenance of houses, Government government buildings, industrial facilities and other works and buildings and facilities to be established, including concreting, welding, tank constructions, steel fabrication, plumbing, electrical work and timberwork; (iv) enterprises involved in town services such as sewerage and garbage collection, treatment and disposal, passenger transport, freight carriage of consumer items and stevedoring (except in relation to the shipping of the Products produce of the Minemine); (v) enterprises involved in trade stores, supermarkets, other retail outlets, canteens, restaurants, taverns, cinemas, social clubs, cleaning and laundry, and vehicle maintenance and repair facilities; (vi) enterprises involved in the supply of fresh fruits, vegetables, meat and fish; and (vii) and may include provision for other activities agreed to by the Company and the Government;. 7. Except as otherwise agreed by the, Government the The Business Development Program shall also include details of: : (i) the time schedule for its implementation; (ii) those additional activities which could be established by Indonesian nationals;; (iii) those activities in which the Company intends to commence operating but which will be transferred to Indonesian nationals at a later date, on a commercial basis; and (iv) any facilities by way of training, technical or financial assistance which can be made available to facilitate the smooth transition of ownership and operation to Indonesian nationals. 8. The Business Development Program shall be reviewed annually by the Company, in consultation with the Government, and may be altered by mutual consent between the Company and the Government with a view to securing the maximum benefit to Indonesian nationals and local enterprises from the operations of the Company and the carrying out of the Enterprise. 9. The Company shall consult from time to time with representatives of the Government and furnish the Government at quarterly intervals with a report concerning the following: (i) the implementation of the training and manpower aspects of the Business Development Program; (ii) the implementation of provisions relating to local purchasing of supplies; and (iii) the implementation of provisions relating to local business development.

LOCAL BUSINESS DEVELOPMENT. 1. The Company shall, shall to the extent reasonably and economically practicable, having regard to the nature of the particular goods and services, promote, support, encourage and lend assistance to Indonesian nationals desirous of establishing enterprises and businesses providing goods and services for the Enterprise and for the any permanent settlement(s) (if any) settlements constructed by the Company and the residents thereof, and shall generally promote, support, encourage and assist the establishment and operation of local enterprises outside the Mining Areas and any Mining Arearelated Project Areas. 2. The Company shall make maximum use of Indonesian sub- contractors subcontractors where services are available from them at competitive prices and of comparable standards with those obtainable from elsewhereother third party suppliers, whether inside or outside Indonesia. 3. Insofar as it is practicable practicable, the Company shall give first preference in its assistance hereunder to landowners in and other people originating from the area of the Enterprise. 4. Except as otherwise agreed by the DepartmentGovernment, the Company shall, at the commencement of the Feasibility Studies Period with respect to an Exploration Area, appoint, appoint for such period as is reasonably necessary, a member of its staff who has had experience within Indonesia of with respect to the establishment, control and day-to-day running of enterprises controlled and run by Indonesians and who shall: (i) identify activities related to the Enterprise including the provision of goods and services as described above which can be carried on by Indonesian nationals or local enterprises enterprise on a basis which is competitive as to time, cost and quality to the goods and services otherwise available to the Company; (ii) advise and assist Indonesian nationals desirous of carrying on those activities or of establishing enterprises to do the same; and (iii) implement, or assist in the implementation of, the Business and Community Development Program as hereinafter described on behalf of the Company. The staff member appointed for this purpose shall be a full time employee of the Company. 5. The Company shallwill, directly or indirectly, provide funds for, and assist in the development of of, a Business and Community Development Program designed to assist Indonesian Participants nationals in the province in which the Enterprise is located, which Program shall be submitted to . The Company and the Government as part of the Company's feasibility study report as described have agreed to cooperate closely in Annex "E"carrying out such program. 6. Except as otherwise agreed by the Government, the Business and Community Development Program will make provision as far insofar as is practicable for the following (except to the extent of activities to be carried out directly by the Company): (i) enterprises involved in the supply and maintenance of Mining equipment and the provision of consumable supplies; (ii) subcontracting to self - self-employed equipment operators for road construction and maintenancemaintenance work; (iii) subcontracting of site preparation, construction and maintenance of houses, Government buildings, industrial facilities and other works and buildings and facilities to be established, including concreting, welding, tank constructions, steel fabrication, plumbing, electrical work and timberwork; (iv) enterprises involved in town services such as sewerage sewer and garbage collection, treatment and disposal, passenger transport, freight carriage of consumer items and stevedoring (except in relation to the shipping of the Products of the Mine);. (v) enterprises involved in trade stores, supermarkets, other retail outlets, canteens, restaurants, taverns, cinemas, social clubs, cleaning and laundry, and vehicle maintenance and repair facilities; (vi) enterprises involved in the supply of fresh fruits, vegetables, meat and fish; and (vii) other activities agreed to by the Company and the Government;; in each case on a basis which is competitive as to time, cost and quality to the goods and services otherwise available to the Company. 7. Except as otherwise agreed by thethe Government, Government the Business and Community Development Program shall also include details of: (i) the time schedule for its implementation; implementations; (ii) those additional activities which could be established by Indonesian nationals; (iii) those activities in which the Company intends to commence operating but which will be transferred to Indonesian nationals at a later date, on a commercial basis; and (iv) any facilities by way of training, technical or financial assistance which can be made available to facilitate the smooth transition of ownership and operation to Indonesian nationals. 8. Except as otherwise agreed by the Government, the Business and Community Development program shall be reviewed annually by the Company, in consultation with the Government, and may be altered by mutual consent between the Company and the Government with a view to securing the maximum benefit to Indonesian nationals and local enterprises from the operations of the Company and the carrying out of the Enterprise. 9. Except as otherwise agreed by the Government, the Company shall consult from time to time with representatives of the Government and furnish the Government annually with a report concerning the following: (i) the implementation of the training and manpower aspects of the Business and Community Development Program; (ii) the implementation of provisions relating to local purchasing of supplies; and (iii) the implementation of provisions relating to local business development.

LOCAL BUSINESS DEVELOPMENT. 1. The Company shall, shall to the extent reasonably and economically practicable, practicable having regard to the nature of the particular goods and services, services promote, support, encourage and lend assistance to Indonesian nationals desirous of establishing enterprises and businesses providing goods and services for the Enterprise and for the permanent settlement(s) settlement (if any) constructed by the Company and the residents thereof, and shall generally promote, support, encourage and assist the establishment and operation of local enterprises outside any in the Mining Area. 2. The Company shall make maximum use of Indonesian sub- sub-contractors where services are available from them at competitive prices and of comparable standards with those obtainable from elsewhere, whether inside or outside Indonesia. 3. Insofar as it is practicable the Company shall give first preference in its assistance hereunder to landowners in and other people originating from the area of the Enterprise. 4. Except as otherwise agreed by the Department, the The Company shall, at the commencement of the Feasibility Studies Period with respect to an Exploration AreaPeriod, appoint, appoint for such period as is reasonably necessary, a member of its staff who has had experience within Indonesia of the establishment, control and day-to-day running of enterprises controlled and run by Indonesians and who shall: (i) identify activities related to the Enterprise including the provision of goods and services as described above which can be carried on by Indonesian Indonesians nationals or local enterprises enterprises; (ii) advise and assist Indonesian nationals desirous of carrying on those activities or of establishing enterprises to do the same; and (iii) implement, or assist in the implementation of, the Business Development Program as hereinafter described on behalf of the Company. The staff member appointed for this purpose shall be a full time employee of the Company. 5. The Company shall, directly or indirectly, provide funds for, and assist in consultation with the Government prepare a Business Development Program for the development of a Business Indonesian businesses and Community Development Program designed enterprises associated with or incidental to assist Indonesian Participants in the province in which the Enterprise is located, which Program shall be submitted to the Government as part of the Company's ’s feasibility study report as described in Annex "“E"”. 6. Except as otherwise agreed by the Government, the The Business Development Program will make provision as far as is practicable for the following (except to the extent of activities to be carried out directly by the Company):following: (i) enterprises involved in the supply and maintenance of Mining mining equipment (other than that carried out by the Company) and the provision of consumable supplies; (ii) subcontracting to self - self-employed equipment operators for or road construction and maintenance; (iii) subcontracting of site preparation, construction and maintenance of houses, Government government buildings, industrial facilities and other works and buildings and facilities to be established, including concreting, welding, tank constructions, steel fabrication, plumbing, electrical work and timberwork; (iv) enterprises involved in town services such as sewerage and garbage collection, treatment and disposal, passenger transport, freight carriage of consumer items and stevedoring (except in relation to the shipping of the Products produce of the Minemine); (v) enterprises involved in trade stores, supermarkets, other retail outlets, canteens, restaurants, taverns, cinemas, social clubs, cleaning and laundry, and vehicle maintenance and repair facilities; (vi) enterprises involved in the supply of fresh fruits, vegetables, meat and fish; and (vii) and may include provision for other activities agreed to by the Company and the Government;. 7. Except as otherwise agreed by the, Government the The Business Development Program shall also include details of: (i) the time schedule for its implementation; ; (ii) those additional activities which could be established by Indonesian nationals; (iii) those activities in which the Company intends to commence operating but which will be transferred to Indonesian nationals at a later date, on a commercial basis; and (iv) any facilities by way of training, technical or financial assistance which can be made available to facilitate the smooth transition of ownership and operation to Indonesian nationals. 8. The Business Development Program shall be reviewed annually by the Company, in consultation with the Government, and may be altered by mutual consent between the Company and the Government with a view to securing the maximum benefit to Indonesian nationals and local enterprises from the operations of the Company and the carrying out of the Enterprise. 9. The Company shall consult from time to time with representatives of the Government and furnish the Government at quarterly intervals with a report concerning the following: (i) the implementation of the training and manpower aspects of the Business Development Program; (ii) the implementation of provisions relating to local purchasing of supplies; and (iii) the implementation of provisions relating to local business development.