Extracts from Company Policy Manual:

 

1. To conduct company business and observe the local laws and regulations, including paying all taxes that are legally due.
   
2. To utilize the optimum human and other resources to achieve reasonable but progressive annual and medium term output goals.
   
3. To recruit the most appropriate staff locally with suitable experience and correct working attitudes in order to achieve company objectives, while working with staff seconded from the Parent Company.
   
4. To deploy suitable outside contractors who may work with company employees where certain kinds of work do not justify a full-time or part-time in-house employee.
   
5. To establish Annual Operating Plan and Annual financial budget for local operations.
   
6. To regularly measure actual production and other achievements against pre-set plans and rectify deviations.
   
7. To measure the performance of employees regularly, motivate them and develop their full potential by offering continuous training that may be required in view of the fast changing law and local regulations.
   
8. Chinese expatriates who work in a local culture environment should at the same time observe the correct cultural behavior normally required in the People's Republic of China.
   
9. To maximisze the financial return to shareholders in the medium term.
   
10. To maintain a healthy financial structure within the local company and enable it to gain a credit rating, to be less reliant parent company financial support in the medium to long term.
    

 

DC080220-Rev3

 

Yancoal Australian Industry Participation Clauses

 

1. Yancoal Australia Pty Ltd ("Yancoal") prefers (wherever possible) to provide Local (Australian) Suppliers with a full, fair and reasonable opportunity to supply equipment (including functional units and/or key components) on our projects.

2. If a functional unit or key component is to be supplied by a Contractor, then the Contractor must provide Local Suppliers full, fair and reasonable opportunity to submit a pre qualification proposal in respect of the supply of that functional unit or key component.

3. When Yancoal provides the Contractor with a list of Local Suppliers then the Contractor is required to consider those suppliers for supply of functional units or key components.

4. Provided the Local Supplier(s) in the list are capable of supplying goods or components, Yancoal requests that the Contractor:

(i) Contact at least one Local Supplier in writing: and

(ii) Supply that Local Supplier with information relating to the Contractor's pre qualification process and the functional unit or key component to enable the Local Supplier to submit a pre qualification proposal to the Contractor.

(iii) Assess any proposal for supply made by Local Supplier(s) using the same assessment criteria used to assess suppliers generally.

The Contractor is under no obligation to further contact or maintain contact with Local Supplier(s) once the Contractor has satisfied its obligations under this clause.

The Contractor must submit to Yancoal, upon request, an Australian Industry Participation Report including (but not limited to) correspondence, transactions, proceedings and any other records relating to and arising from the Contractor’s obligations under this clause.