TENDERS ARE STRICTLY DUE ON: 6 SEPTEMBER 2013 AT 14:00

ENQUIRY NO. LE 0381 REV 1

ARCELORMITTAL SOUTH AFRICA

INVITES TENDERS FOR

ROAD TRANSPORT OF COAL FROM BOSCHMANS MINE TO ARCELORMITTAL VANDERBIJLPARK WORKS.

TENDERS ARE STRICTLY DUE ON:

6 SEPTEMBER 2013 AT 14:00

IMPORTANT NOTICE

The Tenders must be deposited in the TENDER BOX (in duplicate)

at the under mentioned physical address not later than

ArcelorMittal VANDERBIJLPARK

Main Entrance (approach from Delfos Boulevard) Directions to “TENDER BOX” are indicated as such when entering ArcelorMittal Vanderbijlpark. Should you not be able to submit your tender to the physical addres, then your tender must be faxed to the official tender fax number: (016) 889-1009 AND must also be e-mailed to [email protected]

(PLEASE DO NOT INCLUDE A COPY OF THIS ENQUIRY IN YOUR

TENDER.) (Also see paragraph 2.1)

DATE ISSUED: 3 SEPTEMBER 2013

mailto:[email protected]

ENQUIRY NO. LE 0381 Rev 1

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INDEX

PART 1 - GENERAL, LEGAL, COMMERCIAL & FINANCIAL ASPECTS ...................... 4

1 INSTRUCTIONS TO TENDERER.......................................................................... 4 1.1 Discrepancies .................................................................................................................... 4

1.2 Alterations, omissions or additions ................................................................................. 4 1.3 Contractual queries ........................................................................................................... 4 2.1 Submission of Tender ....................................................................................................... 5 2.2 Incorrect address .............................................................................................................. 5 2.3 Tenders to be complete .................................................................................................... 5

2.4 Variations/qualifications by Tenderers/alternative Tender ............................................. 5 2.5 Late Tender ...................................................................................................................... 5 2.6 Lowest Tender ................................................................................................................. 6

2.7 Information that must be supplied by Tenderer ............................................................... 6 2.8 Validity of Tender ........................................................................................................... 6

3 TARIFFS ............................................................................................................... 6 3.1 Invoices ............................................................................................................................. 7 3.2 Price adjustment (Escalation) ........................................................................................... 7

4 PAYMENT ............................................................................................................ 7

5 DETAILS CONFIDENTIAL .................................................................................... 7

6. INSURANCE ........................................................................................................... 7

PART 2 - Specification .............................................................................................. 9

7. DESCRIPTING OF THE MATERIAL TO BE TRANSPORTED ............................. 9

8. SCOPE OF WORK ................................................................................................ 9 8.1 Scope ............................................................................................................................... 9

8.2 Loading and Off-loading Times ...................................................................................... 9

9. SUCCESSFUL TENDERER’S OBLIGATIONS ..................................................... 9

10. TONNAGES ......................................................................................................... 11

PART 3 - CONDITIONS OF CONTRACT .................................................................. 12

11 CONDITIONS OF PAYMENT .............................................................................. 12

12 FORCE MAJEURE .............................................................................................. 12

13 ASSIGNMENT OF AGREEMENT ....................................................................... 13

14 PROVISION IN THE EVENT OF DEFAULT ........................................................ 13

15 TERMINATION .................................................................................................... 13

16 ARBITRATION, DISPUTES AND CLAIMS ......................................................... 14

17 GIFTS .................................................................................................................. 14

18 MANAGEMENT ................................................................................................... 15


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19 COMMENCEMENT, DURATION AND TERMINATION OF AGREEMENT ........ 15 ANNEXURE A - OCCUPATIONAL HEALTH AND SAFETY ACT, ACT NO 85 OF 1993


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PART 1 - GENERAL, LEGAL, COMMERCIAL & FINANCIAL ASPECTS 1 INSTRUCTIONS TO TENDERER 1.1 DISCREPANCIES 1.1.1 The Tenderer shall control the page numbers and number of the pages before

submission of his Tender. Should any page be found to be missing or figures or writing be indistinct or any obscurity or doubt arise as to the meaning of any description or particulars of any item or if the Tender document contains any discrepancies or obvious errors, then the Tenderer shall immediately inform the Procurement Specialist, ArcelorMittal (see par. 1.3.1) and have the problem rectified or explained as the case may be. No claim whatsoever will be entertained for faults in the Tender price/s resulting from the abovementioned discrepancies.

1.1.2 Should there be any contradictions, discrepancies and/or ambiguities between any

of the documents or parts thereof embodied in the Enquiry documents, this should be pointed out to ArcelorMittal for clarification during the tendering stage, as no claim as a result of such contradictions, discrepancies or ambiguities will afterwards be considered by ArcelorMittal. In the absence of any clarification having been obtained from ArcelorMittal, the Tender must be qualified accordingly.

1.2 ALTERATIONS, OMISSIONS OR ADDITIONS No alterations, omissions or additions shall be made to this document, but should

it be deemed necessary to do so, then the Tenderer must qualify his Tender accordingly.

1.3 CONTRACTUAL QUERIES 1.3.1 Contractual and/or Commercial Queries or information required with regard to this Enquiry document may be

discussed with the Senior Procurement Specialist, ArcelorMittal: Livhuwani Mugwagwa on Landline: (016) 889 3531 or Mobile: 083 450 9452 Or Refilwe

Palayi on Landline: (016) 889 3153 or email: [email protected]

mailto:[email protected]


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2 TENDERS

2.1 SUBMISSION OF TENDER The complete Tender shall be supplied to ArcelorMittal (see cover page) and

shall be submitted in duplicate and in sealed envelopes or parcels on which the name of the Tenderer is not disclosed and shall be marked and addressed as follows:

TENDER: ENQUIRY NO. LE 0381 Rev 1

ROAD TRANSPORT FOR COAL FROM BOSCMANS MINE TO ARCELORMITTAL VANDERBIJLPARK.

Tender shall be submitted to ArcelorMittal not later than the closing time and date for receipt of Tenders as mentioned on the cover page. A Tender, which due to its size, cannot be deposited in the tender box shall be handed to the security officer on duty.

2.2 INCORRECT ADDRESS Any Tender inadvertently opened before the closing time and date for the receipt

of Tenders due to an incorrect address or marking, will not be considered by ArcelorMittal.

2.3 TENDERS TO BE COMPLETE The Tenderer shall submit a complete tender to ArcelorMittal. No additional

submission of information pertaining to an incomplete Tender will be permitted after the closing date and time.

Non-compliance with this prerequisite may render the Tender liable to rejection. 2.4 VARIATIONS/QUALIFICATIONS BY TENDERERS/ALTERNATIVE TENDER The Tenderer shall tender strictly in accordance with the requirements of this

Enquiry document, but is allowed to submit in addition alternative Tender(s) in which case the alternative Tender(s) shall consists of all the relevant information in order to submit a complete tender.

Where the Tenderer decides to deviate from the conditions and/or specifications of the Enquiry document(s) or in any way qualifies his Tender, such deviation or qualification shall be clearly set out in his Tender document, failing which the Tender will be deemed to be submitted unqualified and in non-compliance with all conditions and specifications of the Enquiry documents.

2.5 LATE TENDER ArcelorMittal will not consider late Tenders, i.e. Tenders received by the Tender

Office, ArcelorMittal Vanderbijlpark, after the closing date and time for submission of Tenders.


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2.6 LOWEST TENDER ArcelorMittal does not bind itself to accept the lowest or any Tender, nor to assign

any reason for the rejection or acceptance of a Tender. No Tender shall be deemed to have been accepted unless such acceptance has been conveyed to the Tenderer by notice in writing or by telefax from ArcelorMittal.

2.7 Information that must be supplied by Tenderer

PLEASE NOTE THAT AN INCOMPLETE TENDER WILL NOT BE CONSIDERED.

2.7.1 Date when rendering of service can commence (or notice period needed before your company can commence) – ArcelorMittal needs the transport of this products to commence no later than 11 September 2013.

2.7.2 Transport tariff per ton (excluding VAT) based on the diesel price of September 2013 (R12.62 liter for Gauteng), for each product separately.

2.7.3 How many loads per day?

2.7.4 Percentage of tariff that reflects diesel portion e.g. 28% of the tariff

2.7.5 Should you require that the tariff be adjusted when the price of diesel change during the course of the Agreement, then please state how this will be applied. ArcelorMittal recommends that when the price of diesel change with 10% (increase or decrease), that the transport tariffs must then be adjusted. Please confirm or tender alternative.

2.7.6 Should your tariff change during the course of the Agreement due to changes in the price of diesel, then the adjusted tariff will be effective from the 1st day of the month following the month during which the price of diesel changed. Please confirm your acceptance.

2.7.7 Escalation formula must be supplied – please refer to clause 3.2 and also provide the fixed portion of your tariff together with your proposed annual escalation formula. This is the portion of the tariff that will not be adjusted during annual negotiations as it is expected of the transporter to take responsibility to also reduce their costs continuously.

2.7.8 A copy of your company’s current Goods in Transit Insurance Cover.

2.7.9 Please supply a copy of your BBBEE certificate with your tender. If you do not submit a copy of your BBBEE certificate, your tender will be regarded as incomplete and invalid.

2.7.10 Any other relative information.

2.8 VALIDITY OF TENDER

Tenders shall remain valid for a period of 90 days from the due date for the

receipt of Tenders during which period ArcelorMittal shall have the right to accept a Tender without any right of withdrawal on the part of the Tenderer.

3 TARIFFS Tariffs tendered for services should exclude VAT. The tenderer must calculate VAT in accordance to relevant statutory provision and indicate it separately on

its invoices to ArcelorMittal.


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3.1 INVOICES Tax invoices for services rendered submitted to ArcelorMittal for payment shall

indicate the VAT payable separately (if applicable).

ArcelorMittal shall make payment of VAT to the Tenderer simultaneously with the payment for the relevant services. In all instances tax invoices shall be submitted and shall include the Tenderer’s VAT registration number.

Invoices rendered for payment shall, where applicable, be adjusted accordingly.

3.2 PRICE ADJUSTMENT (ESCALATION) ArcelorMittal shall give preference to fixed Tender prices where the tariffs of the

contract shall remain fixed for the full duration of the contract. However, in order to achieve a win-win situation between the successful Tenderer and ArcelorMittal, the parties will re-negotiate the tariff on an annual basis should the term of the Agreement be extended. Tenderers are therefore requested to submit their escalation formula as part of their tender. Elements that will be used as guidelines during the negotiations will include, but will not be limited to:

(a) A fixed portion of at least 20% (twenty percent).

(b) Applicable Indices e.g. (Seifsa). 4 PAYMENT

4.1 Tenderers shall give complete detail as to whom, when and how payment has to be effected, namely:

- tenderer’s full name, address, contact person and fax number;

- banker’s full name, account number, address, contact person and fax number;

- 30 days from date of receipt of invoice date, etc.;

- by telegraphic transfer, etc. 5 DETAILS CONFIDENTIAL The Tenderer (whether his Tender is accepted or not) shall treat all details in this

Enquiry document and his Tender as private and confidential. ArcelorMittal will likewise treat details of the Tenderer’s proposals as private and confidential and no information contained in a Tender will be disclosed to third parties.

6. INSURANCE

6.1. Upon execution of the Agreement, the Tenderer shall have and maintain at its

sole cost and expense throughout the term of the Agreement, comprehensive general liability or commercial general liability insurance and all risk insurance, including goods or Products in transit, fire, theft, its material, equipment or property (“Insurance Cover”) from a reputable insurance company acceptable to ArcelorMittal.


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6.2. This Insurance Cover shall inter alia, specifically provide insurance for each load

of Products transported for at least its market value, cover for its indemnity obligations in terms of clause 20 and any liability whether bodily injury, product liability, public liability and/or contractual liability which may arise as a result of the Agreement or the Tenderer and Tenderer Employees’ wilful misconduct, negligent acts and/or omissions.

6.3. The Insurance Cover shall not be cancelled or amended in any manner which

restricts the existing coverage or renewed without the Tenderer giving ArcelorMittal at least 30 (thirty) days prior written notice to that effect.

6.4. The cost of insurance is included in the transportation tariffs above and the

Tenderer shall be responsible for payment of all insurance premiums and any excess in respect of the Insurance Cover and the Tenderer shall strictly comply with all terms and conditions of the insurance policy.

6.5. The Tenderer shall furnish ArcelorMittal with a certificate of insurance evidencing

the Insurance Cover prior to the Effective Date. 6.6. Compliance by the Tenderer with this insurance provision shall not relieve the

Tenderer from liability under the indemnity provisions of this Agreement.


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PART 2 - SPECIFICATION

7. DESCRIPTING OF THE MATERIAL TO BE TRANSPORTED

Coal estimated at 10,000 per month Size: 6.3mm X 25mm

Density of Product: 0.800sg

8. SCOPE OF WORK 8.1 SCOPE The Successful Tenderer shall be responsible for the road transport of coal from

Boschmans mine to Vanderbijlpark works. Covering of the product with tarpaulin during transport is essential .Should

any spillage occurs during transport or whilst the Products are under the control of the Tenderer, then the Tenderer shall be responsible to insure that all spillage will be cleaned within a reasonable time at his own expense. Tenderers must give their commitment to this pre-requisite in writing in his tender document.

8.2 LOADING AND OFF-LOADING TIMES

AT LOADING POINT, BOSCHMANS, WITBANK

METHOD OF LOADING: OVERHEAD BUNKERS

Loading Hours: 6h00 am to 18h00 pm Monday to Saturday (excluding public holidays)

Contact person: Abraham Mavuso– 013 686 3509

Off-loading at Vanderbijlpark Works: DR Plant (Escorts will be provided for

offloading 24/7 preferably during day time.)

The times as reflected above shall apply to the Agreement unless otherwise agreed to between the parties.

9. SUCCESSFUL TENDERER’S OBLIGATIONS

9.1 Save as otherwise provided for, the successful Tenderer shall supply all necessary equipment, labour, and other facilities, necessary for the transporting of coal to Vanderbijlpark at a period that will be decided by Arcelormittal.

9.2 The Tenderer shall familiarise itself beforehand of the geographical locations of

the Suppliers and the Works to and from and will capable, able and equipped comply with the terms of this Agreement.

9.3 The Tenderer undertakes to promptly remove loaded vehicles from the Suppliers’

loading bays and determine the Products’ mass on the Suppliers Mass-measuring Bridge before delivering the Products to the Works.


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9.4 The Tenderer shall promptly deliver the Products in the same good order and condition as the Tenderer receives them when they are loaded at the Suppliers.

9.5 The Products shall become the Tenderer’s responsibility when loaded onto the

Tenderer’s mode of transport until delivered to and signed off as received in good order by ArcelorMittal at the Works.

9.6 The Tenderer shall deliver the Products to the Works on time set and stipulated

by ArcelorMittal. In the event of failure to deliver on time as required, then ArecelorMittal shall be entitled to withhold 5 (five) percent of the total tariffs due to the Tenderer in terms of this Agreement.

9.7 The Tenderer shall deliver the Products without any form of damage or defects. 9.8 In the event of a strike the Tenderer undertakes to ensure that the following

procedures are followed: 9.8.1 the Tenderer shall notify ArcelorMittal of any prior knowledge of a strike as soon

as reasonably possible; 9.8.2 the Tenderer shall attempt to resolve the dispute prior to a strike or as soon as

reasonably possible; 9.8.3 the Tenderer shall endeavour through the following steps to fulfil the emergency

transport needs of ArcelorMittal as far as reasonably possible by:

9.8.3.1 drawing on wage earning employees from other operations;

9.8.3.2 drawing on competent salaried employees;

9.8.3.3 employing outside driver Tenderers;

9.8.3.4 employing competent staff that ArcelorMittal can offer at rates pertaining to outside Tenderers;

9.8.3.5 employing other acceptable carriers to haul the trailers of the Tenderer; and

9.8.3.6 employing other acceptable carriers to transport the Products for the duration of the strike.

9.9 If none of the Tenderer’s endeavours lead to the fulfilment of ArcelorMittal’s

transport needs at any point, ArcelorMittal shall (to the extent of the shortcoming) be entitled to engage other road carriers to transport the Products.

9.10 The Tenderer shall comply with all reasonable written requests of ArcelorMittal

from time to time in relation to this Agreement, it being recorded that ArcelorMittal shall provide the Tenderer with all necessary information and data required by the Tenderer to discharge its obligations under the Agreement. It shall be the responsibility of the Tenderer to request from ArcelorMittal


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information relevant to the carrying out of its obligations in terms of the Agreement.

9.11 The Tenderer shall together with Tenderer Employees comply with all of the

provisions of applicable policies of ArcelorMittal in regard to fraud, anti-bribery, conflict of interest declaration and corruption.

9.12 The Tenderer undertakes in all matters to act in good faith towards ArcelorMittal

and to work co-operatively and constructively with ArcelorMittal’s representatives and employees.

9.13 The Tenderer further undertakes to duly comply with all statutory control

measures and applicable regulations governing the transportation of the Products and shall keep the Products in the condition they were when received.

9.14 The Tenderer shall, where applicable cover the Products with tarpaulin or similar

during transportation. 9.14 The Tenderer shall not use drivers without a valid driver’s licence for the

purposes of this Agreement; 9.15 The Tenderer shall not permit unnecessary delays in the transportation of

Products and shall attend to any breakdowns on route expeditiously and provide sufficient back up transportation to ensure a continuous service anticipated herein.

9.16 The Tenderer shall perform a professional service in terms of this Agreement to

uphold and promote ArcelorMittal’s reputation and image with its clients or customers.

9.17 The Tenderer shall at its expense train and provide suitable drivers and Tenderer

Employees for the purposes of this Agreement.

10. TONNAGES

10,000 tons per month is the estimated tonnage and is only given as a guide to indicate the extent of the work to be performed. The estimated quantity is given without any obligation on the part of ArcelorMittal and the quantity may vary from time to time in accordance with ArcelorMittal’s requirements. The successful Tenderer shall be obliged to undertake the transportation of any such quantities as may be specified by ArcelorMittal from time to time.


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PART 3 - CONDITIONS OF CONTRACT

11 CONDITIONS OF PAYMENT

11.1 Payment shall be made on the last day of the month following the month in which the services were rendered, provided monthly statements of account, shall in all instances reach ArcelorMittal’s Head Office, Shared Services, Accounts Payable situated in Vanderbijlpark, not later than the sixth day of the month following the month in which the services were rendered. ArcelorMittal shall not be accountable to pay any interest on outstanding amounts due to the Tenderer’s negligence to submit invoices on time.

11.2 ArcelorMittal will supply the Tenderer with an Order Number and the Tenderer

must ensure that such Order Number is reflected on all related documentation, i.e. delivery notes, Invoices, etc.

11.3 The Tenderer shall ensure that ArcelorMittal’s and its VAT numbers are reflected

on all related invoices. ArcelorMittal’s VAT number is 4920114990. 11.4 ArcelorMittal shall not be accountable to pay any interest or penalties of any sort

due to the Tenderer’s failure to submit its invoices on time. Invoices that are submitted by the Tenderer 6 (six) months after applicable service was rendered shall not be accommodated and will not be paid by ArcelorMittal.

11.5 Although the Tenderer’s vehicles will be weighed at the Works and at the

Supplier’s mass-measuring bridge, the nett mass as determined by ArcelorMittal at the Works mass-measuring bridges by ArcelorMittal shall be final and used to calculate payment.

12 FORCE MAJEURE 12.1 Notwithstanding anything to the contrary herein contained, neither party shall be

liable in respect of failure to fulfill its obligations under this agreement when the reason for such failure is caused by or arising from force majeure.

12.2 Force majeure means any circumstances or conditions beyond the control of a

party or any circumstances or conditions that it is not reasonably practicable for a party to control or alleviate and shall include, but shall not be limited to - - an act of God, storm, tempest or flood;

- fire, spontaneous combustion, explosion, smoke, ionising, radiation, radio-active contamination;

- national or regional strikes, lockouts, go-slows, stay-aways, and other industrial action by any person in the furtherance of a trade dispute;

- war, revolution, riot, civil commotion or political disturbance;

- major Production breakdowns of Production facilities of ArcelorMittal, if due to unforeseen circumstances;

- production stoppages or losses resulting from the failure of ArcelorMittal’s suppliers of materials or services due to factors beyond the reasonable control of the relevant party;

- restrictions imposed directly or indirectly by Government or any person, corporation or body acting under statutory power.

- abnormal economic recessions.


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12.3 The party claiming a suspension of its obligations shall immediately notify the other in writing of the circumstances relating thereto, and shall estimate in good faith the period during which the said circumstances are likely to prevail and shall thereafter do everything reasonably necessary to reduce or terminate the period of suspension and to restore performance of its obligations.

13 ASSIGNMENT OF AGREEMENT The successful Tenderer shall not assign or make over this agreement or any

part thereof, or any share or interest therein, to any other person without the written consent of ArcelorMittal which may be refused without any reason being assigned therefor. This condition also applies to the use of sub-Tenderers by the successful Tenderer.

14 PROVISION IN THE EVENT OF DEFAULT 14.1 Either party may at any time give notice in writing to make good any failure or

default should it appear that:

- the other party is not executing its obligations in accordance with the true intent and meaning of this agreement;

- the other party is refusing or delaying to carry out its obligations in accordance with the instructions and to its satisfaction;

- the other party is in breach of any other condition of this agreement and/or is responsible for any other failure or default with regard to its obligations.

14.2 Should the defaulting party fail to take positive steps which are acceptable to the

aggrieved party to remedy the failure or default complained of within 30 (thirty) days from the date of receipt of written notice calling for remedy of such complaint, the aggrieved party shall, without prejudice to any of its rights under common law and particularly its rights under this agreement hereof be at liberty to:

- If after all reasonable avenues have been pursued and good intent shown the issue cannot be resolved within the period referred to in this clause the aggrieved party can terminate this agreement without any further notice to the defaulting party.

- Any extra expense to which the aggrieved party may be put due to such default shall be recoverable from the defaulting party together with direct damages suffered by the aggrieved party due to the default of the other party.

15 TERMINATION Either party will have the right, in addition to any other rights that it may have in

law, to terminate this agreement forthwith and without further notice in any of the following events -

- if the other party makes any arrangements in contemplation of insolvency or is declared insolvent or liquidated;

- if the other party ceases to carry on business;

- if the other party ceases to be in a position to fulfill any of its obligations in terms of this agreement;


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- if there is any change in the control or a material change in the shareholding or control of the other party which the concerned party on reasonable grounds might consider to be detrimental to the concerned party. (For the purpose of this clause “control” includes, without limitation, the power or ability of any shareholder of the other party, whether exercising such power by voting rights or pursuant to any agreement or arrangement, materially to influence any decision or act taken or to be taken by or on behalf of the other party).

16 ARBITRATION, DISPUTES AND CLAIMS 16.1 Should any difference or question at any time arise between ArcelorMittal and the

Successful Tenderer as to the construction, meaning or effect of this agreement, or as to the rights, obligations or liabilities of ArcelorMittal or the Successful Tenderer thereunder, or should ArcelorMittal and the Successful Tenderer fail to agree upon any matter or thing which is provided in this agreement to be subject to an agreement being arrived at, such difference being arrived at shall be determined by the following procedures:

16.1.1 The party claiming such dispute or difference shall advise the other in writing

thereof. Within 14 (fourteen) days of receipt of such notice, the parties shall meet and negotiate in good faith in order to resolve such dispute or difference;

16.1.2 If the parties are unable to resolve such dispute or difference the matter will be

referred to the Chief Executive Officer of the Tenderer and the General Manager, Procurement and Logistics, ArcelorMittal. The parties record that it is the intention that the said Chief Executive Officer and General Manager, Procurement and Logistics, ArcelorMittal will use their best endeavors to settle or resolve the issue in question as expeditiously as possible, but in any event within a period of 30 (thirty) days of the matter being referred to them;

16.1.3 should the said Chief Executive Officer and General Manager, Procurement and

Logistics, ArcelorMittal fail to resolve such dispute or difference within the aforesaid period or such longer period as the parties may agree, such dispute or difference shall be determined by arbitration under the provisions of the Arbitration Act, Act No 42 of 1965, or statutory modification or law passed in substitution thereof, provided that commercial disputes shall not be referred to arbitration unless otherwise agreed between the parties.

16.2 Notwithstanding any such differences or question or matter or thing or reference

to arbitration, both parties shall continue to carry out their obligations under this agreement pending the resolution of such difference or dispute.

16.3 If the Successful Tenderer wishes to make any claim for additional payment not

provided for in this agreement, the Successful Tenderer must within 90 (ninety) days after occurrence of the incident giving rise to such claim submit documentary evidence and amounts in support of such claim for ArcelorMittal’s approval. Failure to do so will be deemed a waiver of the Tenderer’s claim.

17 GIFTS The Tenderer will not offer, give or agree to any person in the service of

Purchaser or any member of their family or any person claiming to act on behalf of any such person, any gifts or consideration of any kind as an inducement or


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reward for doing or for bearing to do or for having done or forborne to do acts in relation to the obtaining or execution of the Agreement.

Upon breach of this provision by the Tenderer, or anyone employed by it or

acting on its behalf, whether with or without the Tenderer’s knowledge, the Purchaser will have the right to cancel the purchase order without notice and to recover from the Tenderer forthwith the amount of any loss resulting from each termination, including the value of such gift or consideration.

18 MANAGEMENT 18.1 The successful Tenderer shall also as part of their contractual duties, in

co-operation with the responsible ArcelorMittal Manager, be responsible to independently manage all the aspects relating to an agreement being arrived at.

18.2 This condition in general, amounts to the establishment of an appropriate management system, which shall be used for measuring the performance standards of the successful tenderer relating to an agreement being arrived at. Achievement of the standards shall imply that both parties shall share from the benefits arising from the implementation of the said management standards, in accordance to the terms hereinafter mentioned.

18.3 Without derogating from either party’s contractual rights in the event of any breach of the terms of an agreement being arrived at, the successful Tenderer shall be responsible in its managerial capacity to implement the following performance standards:

18.3.1 Interpret and correctly identify ArcelorMittal’s needs and requirements, and to integrate the successful Tenderer service ability with the needs of ArcelorMittal:

18.3.2 Implement appropriate measures relating to aspects such as operating, maintenance in accordance with a productivity improvement plan to be developed.

18.3.3 Exercise control over the total quality of service to ArcelorMittal and;

18.3.4 Ensure that synergy exists between its employees and those of ArcelorMittal and that all statutory provisions as well as development programs such as the Reconstruction and Development Program are adhered to and implemented.

19 COMMENCEMENT, DURATION AND TERMINATION OF AGREEMENT The Agreement with the Successful Tenderer will start on 11 September 2013 until 31 August 2015. Notwithstanding the term of the Agreement, ArcelorMittal may at any time on not less than one month prior written notice to the Tenderer, terminate this Agreement in part or in whole without any liability for damages Should ArcelorMittal require the services of the successful tenderer to continue, this will be negotiated with the successful tenderer.


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ANNEXURE A - OCCUPATIONAL HEALTH AND SAFETY ACT, ACT NO 85 OF 1993

This Annexure is incorporated in and forms part of the Conditions of the agreement, setting out the arrangements and procedures agreed to in order to ensure that the Tenderer complies with the Occupational Health and Safety Act, Act No 85 of 1993, (herein referred to as the Act) as amended from time to time. 1 Should the Chief Inspector give a direction in terms of section 7 of the Act to the

Tenderer to prepare a health and safety policy as contemplated in that section, the Tenderer shall within 30 days from the date of Instructions forward a copy of such a policy document to ArcelorMittal and hereby undertakes to display a copy as contemplated in section 7(3) of the Act.

2 The Tenderer shall throughout the duration of the Agreement, provide ArcelorMittal

with the necessary information to enable ArcelorMittal to establish the Tenderer's compliance with the Act.

3 The Tenderer shall as far as is reasonably practicable comply with the following in

the execution of this Agreement: (a) provide and maintain, systems of work, plant and machinery that are safe and

without risks to health and safety; (b) institute precautionary measures necessary to eliminate or mitigate any hazard

or potential hazard to the safety and health of employees, before resorting to protective equipment;

(c) make arrangements to ensure the safety and absence of risks to health in

connection with the production, processing, use, handling, storage and substances, where applicable;

(d) establish the hazards to the health or safety of persons attached to any work

which is performed in terms of this Agreement, any article or substance which is used, handled, stored. In any plant or any machinery which is used in the Agreement the Tenderer shall further establish precautionary measures to be taken in respect of such work, article, plant or machinery as is applicable in order to protect the health and safety of persons involved during the execution of the agreement. The Tenderer shall further provide the necessary means to apply such precautionary measures;

(e) provide such information, instructions, training and supervision as may be

necessary to ensure the health and safety of his'-, ArcelorMittal's-, and any sub-Tenderer's employees involved during the execution of the agreement;

(f) not permit any employee to do any work or to produce, process, use, handle,

store or substance, where applicable, nor to operate any plant or machinery, unless the necessary precautionary measures contemplated in clause 3 of this Annexure or prescribed by the Chief Inspector, have been taken;

(g) implement all the necessary measures to ensure that the requirements of the Act

are complied with by every person in his employment or on site of the contract works where plant or machinery is used;


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(h) enforce such measures as may be necessary, in the promotion of health and safety;

(i) ensure that work is performed and that plant, machinery or equipment is used

under the general supervision of a person trained to understand the hazards associated with it and who have the authority to ensure that precautionary measures taken by ArcelorMittal and the Tenderer are implemented;

(j) ensure that all employees are informed regarding the scope of their authority in

the execution of the Agreement and in terms of the Act; (k) execute the Agreement in such a manner as to ensure that no person other than

those in his or her employment who may be directly affected by the Tenderer's activities, is exposed to hazards to health and safety;

(l) ensure that nothing about the manner in which any plant, article, machinery or

equipment for use at ArcelorMittal or on ArcelorMittal's premises is erected or installed makes it unsafe or creates a risk to health and safety when properly used;

(m) ensure that every employee is conversant with the hazards to such employee's

health and safety attached to the work to be performed at ArcelorMittal, as well as with the precautionary measures which should be taken and observed in respect to those hazards;

(n) inform ArcelorMittal beforehand of any inspections, investigations or formal

inquiries of which he has been notified by an inspector in terms of the Act and of any application for exemption made by him in terms of the Act;

(o) inform ArcelorMittal of the occurrence of an incident in the work place or section

of the work place where the Tenderer is performing work in terms of the Agreement.

4 The Tenderer shall ensure that its employees and any sub-Tenderer's employees

comply with the following: (a) take reasonable care for the health and safety of any employee and of other

persons who may be affected by the employee's acts or omissions; (b) co-operate with ArcelorMittal or any person designated for this purpose by

ArcelorMittal to enable ArcelorMittal to comply with any obligation or requirement to be performed or complied with in terms of the Act;

(c) carry out any lawful order given to him or her and obey the health and safety

rules and procedures laid down by ArcelorMittal or any person authorised thereto by ArcelorMittal or the Tenderer in the interest of health and safety;

(d) if any situation which is unsafe or unhealthy comes to the employee's attention,

as soon as reasonably practicable, report such situation to the Tenderer as well as to ArcelorMittal;

(e) if an employee is involved in any accident which may affect his or her health or

which has caused an injury to him or her, report such incident to the Tenderer as


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well as ArcelorMittal or anyone authorised thereto by ArcelorMittal as soon as reasonably practicable;

(f) not to intentionally or recklessly interfere with, damage or misuse anything which

is provided for in the interest of promoting health or safety. 5 The Tenderer hereby confirms that its Chief Executive Officer, as defined in the Act,

has as far as is reasonably practicable ensured that the duties of the Tenderer in the execution of the Agreement and as contemplated in the Act, have been properly discharged.

6 If the number of employees employed by the Tenderer in terms of the Agreement

exceeds 20 (twenty), the Tenderer shall within 14 (fourteen) days of the commencement of the Agreement provide ArcelorMittal with full particulars of the safety representatives at the Contract works. The Tenderer shall simultaneously confirm that it complies with section 17 (2) of the Act in the appointment of the safety representatives and that such health and safety representatives received the necessary facilities, assistance and training to fulfill their duties and functions as health and safety representatives.

7 If two or more health and safety representatives are involved in the work covered by

the Agreement, the Tenderer shall, within 7 (seven) days from the date of a meeting between such health and safety representatives, send a copy of the minutes of such a meeting, as well as a copy of any recommendation made by the Health and Safety Committee to ArcelorMittal.

8 The Tenderer shall not make any deduction from any employee's remuneration- or

require- or permit any employee to contribute towards any payment to him or her or any other person in respect of anything which the Tenderer is in terms of this Agreement, or in terms of the Act required to provide or to do in the interest of the health and safety of any employee covered by the Agreement.

9 The Tenderer shall immediately report to ArcelorMittal any incidents occurring at the

place or places where the Tenderer performs any work in terms of the Agreement, in which or in consequence of which:

(a) any person dies, becomes unconscious, suffers the loss of a limb or part of a

limb or is otherwise injured or becomes ill to such a degree that he or she is likely either to die or to suffer a permanent physical defect or is likely to be unfit for a period of at least 14 (fourteen) days either to work or to continue with the activity for which such employee was employed or is usually employed;

(b) an occurrence of catastrophic proportions, as defined in the Act resulting from

the use of plant or machinery or from any activity in the performance of this Agreement has taken place; or

(c) the health or safety of any person was endangered and where: (i) the uncontrolled release of any substance or pressure took place; (ii) machinery or any part thereof fractured or failed, resulting in flying, falling or

uncontrolled moving objects; or (iii) machinery ran out of control.


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10 The Tenderer or any of the Tenderer's employees shall not without the consent of

an inspector disturb the site at which any incident occurred in which a person died or was injured to such an extent that that person is likely to die or suffer the loss of a limb or part of a limb, provided that such action as is necessary may be taken to prevent a further incident, or to remove the injured or dead or to rescue a person from danger.

11 The Tenderer shall in no way whatsoever victimise any of its employees because

the Tenderer suspects or believes, whether or not the suspicion or belief is justified or correct, that one of his employees has given information to ArcelorMittal in respect of any matter concerning the health and safety of employees.

12 If an inspector of the Department of Labour wishes to perform any of his or her

duties in terms of the Act at the Contract works, the Tenderer shall at all times provide such facilities as are reasonably required by the inspector to enable him or her and his or her assistant (if any) to perform effectively and safely his or her function under the Act.

13 The Tenderer or any of its employees shall not interfere with or remove any

blocking, bar, barricade or fence placed on the instruction of an inspector in terms of the Act.

14 The Tenderer shall forthwith bring to the attention of ArcelorMittal the contents of

any prohibition, direction or notice given by an inspector to the Tenderer or a sub-Tenderer or any of the Tenderer's or sub-Tenderer's employees in terms of the Act.

15 The Tenderer shall fully co-operate in respect of any investigation or inquiry by an

inspector and provide all necessary assistance, as envisaged in section 34 of the Act in the event of such an inspector investigating or inquiring into any matter related to the Tenderer's or sub-Tenderer's execution of the Agreement.

16 The Tenderer shall not disclose any information concerning the affairs of

ArcelorMittal without the prior approval of ArcelorMittal, which shall not be unreasonably withheld.

17 The Tenderer shall not: (a) in any record, application, statement or other document, referred to in the Act,

wilfully furnish information or make a statement which is false in any material respect;

(b) hinder or obstruct an inspector in the performance of his or her functions; (c) refuse or fail to comply to the best of his or her ability, with any requirement or

request made by an inspector in terms of the Act; (d) refuse or fail to answer to the best of his or her ability to any question which an

inspector in the performance of his or her functions in terms of the Act, put to him or her;

(e) give himself out as an inspector;


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(f) tamper with or discourage, threaten, deceive or in any way unduly influence any person with regard to evidence to be given in respect of any investigation in terms of the Act;

(g) prejudice, influence or anticipate the proceedings of any finding or inquiry in

terms of the Act; (h) tamper with or misuse any safety equipment installed or provided to any person

by ArcelorMittal or the Tenderer; (i) fail to use safety equipment at any work place in terms of the Agreement or in

the cause of his or her employment or in connection with the use of plant or machinery;

(j) willfully or recklessly do anything at a work place in connection with the use of

plant or machinery in terms of the Agreement which shall threaten the health or safety of any person.


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ANNEXURE B - CONTRACTOR MANAGEMENT

ArcelorMittal Vanderbijlpark Works Contractor Management SHE files Index

Transport Contractor Name: …………………………………………………………………. Order number: …………………………………………………………………………………… Rev: 2011-03-14

No Index Client Agent Signature

Contractor Signature

1 Contractors SHE policy statement signed by CEO

2 Signed copy of contract by contractor and/or approved work order

3 Copy of CORP-SHE-0002 signed by contractor

4 Letter of Good Standing.

5 Copy of 37.2 agreement. Both parties to sign.

6 Training records of all employees. Principal contractor & sub-contractors on premises. (Proof of medical, induction at NC, plant specific safety training, etc.)

7 Contractor competency declarations and proof of competency.

8 Appointment letters with roles and responsibilities. Contractors.

9 AMNC appointment letters. Client agent & principal contractor.

10 Transport HIRA. Must including Emergency and Evacuation Plan. SHE plan will include project HIRA & Project plan for all tasks.

11 Safe Working Procedures: SWP if applicable for transporter on AMNC site.

12 Incident reporting / Audits and Corrective Actions. Records of investigation & audits)

13 Inspection registers i.e. First Aid Box, Ladders, and Fire fighting equipment, Etc. Vehicle inspection according to AMNC FPS for vehicle & driving.

……………………………………………….…. ………………………………… Client Agent Date …………………………………………………… …..…………….……………….. Approved Date (GMR2.7(a)) Plant Manager File Expire date: ……………………………...


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ANNEXURE C - VEHICLE INSPECTION

Vehicle Inspection

Item N/A Tick Item N/A Tick

Windscreen Brake lights

Wipers Tail lights

Headlights Rear indicators left and right

Front indicators left and right Tyre condition

Horn Product spillage/leakage

Safety belts Visual oil leaks

In case of any defects the vehicle will not be allowed on the company’s premises.

Access granted Access denied

Inspected by: Driver:

Vehicle Inspection

Item N/A Tick Item N/A Tick

Windscreen Brake lights

Wipers Tail lights

Headlights Rear indicators left and right

Front indicators left and right Tyre condition

Horn Product spillage/leakage

Safety belts Visual oil leaks

In case of any defects the vehicle will not be allowed on the company’s premises.

Access granted Access denied

Inspected by: Driver:Employee No.:

Company Vehicle Registration

√ Acceptable x Not Acceptable

√ Acceptable x Not Acceptable

Name Date 20 / /

Employee No.:

Date 20 / /

Vehicle Registration

Name

Company

END OF DOCUMENT

18 Words used in this Annexure shall have the same meaning as words defined in the

Agreement.

Documents

TENDERS ARE STRICTLY DUE ON: 6 SEPTEMBER 2013 AT 14:00