GENERAL CONRACT OPERATOR

- Refers to an agreement by which the operator shall engage in an undertaking or scope

of work, which include but limited to the following: stripping, graveling, benching,
road maintenance, extraction, loading and hauling of mineral ore (nickel) from mine
area to the stockyard or the loading area.

In performing the said undertaking, the operator must have one set of equipment as a
minimum requirement thereof. These includes fifty (50) dump trucks, eight (8)
excavator, one (1) bulldozer, one (1) grader, one (1) compactor and one (1) water
tank. These equipments may increase depending on the need of the company or quota
as the case may be.

For purposes of rentals of the said equipments, the following are the suggested rates:

Dump Truck Php 20.00 Per cubic, per kl. Covering 23

kls. From the mining area to the
stockyard
Backhoe (excavator) Php 300.00 Per load
Bulldozer Php 2,500.00 Per hour (dry rate, including
fuel)
Grader Php 1,500.00 Per hour
Compactor Php 1,400.00 Per hour
Water Tank Php 1,000.00 Per hour

In case of dump truck, a single unit can travel at least four (4) delivery per day at
eighteen (18) cubic meter maximum load.

To meet the above-rentals and other expenses, the operator must demand at least
$25.00 per metric ton (negotiable). This rate may vary depending on the grade of the
nickel ore, which includes low, medium and high grade. Ore Grades can be
determined as follows: a grade of .6 – 9, can be considered low to medium grade. 1
above is considered high grade.

The suggested $25.00 rate per metric ton shall be divided in the following: 1.
Equipment Rentals. 2. Operational and Administrative Cost, which includes fuel,
salaries/wages. The net income shall be divided and agreed among the parties
involved in this transaction.

Illustration:

1 dump truck can deliver 4 times a day at 18 c.m. maximum load

= 72 c.m. x 50 units = 3,600 x $25.00 = $90,000.00 per day
$90,000.00 x 26 days of operation per month = $2,340,000.00
$2,340,000.00 x P44.00 (exchange rate) = P102,960,000.00

Php 102,960,000.00 monthly