American Club Circular No. 0 7/13 1 FEBRUARY 28, 2013 CIRCULAR NO. 07/13 TO MEMBERS OF THE ASSOCIATION Dear Member: THE CARRIAGE OF NICKEL ORE – NEW NOTIFICATION REQUIREMENTS FOR ALL NICKEL ORE CARGOES – ADDITIONAL SURVEY REQUIREMENTS FOR CARGOES LOADED AT OBI ISLAND, INDONESIA The recent tragic loss of the HARITA BAUXITE, which has been widely reported in the press, has highlighted, once again, the hazards of transporting nickel ore, a cargo prone to liquefaction. While the loss continues to be investigated, it points to the need to strengthen loss prevention measures where such cargo is loaded, particularly at Obi Island, Indonesia, where the cargo and voyage in question had their origin. The risks associated with the carriage of nickel ore were explained in detail in Circular No. 06/11 of January 28, 2011 and Circular No. 15/12 of May 31, 2012, together with Member Alerts of December 16, 2010, February 2, 2012 and August 1, 2012. Although the HARITA BAUXITE casualty continues to be under investigation, it would appear that the liquefaction of cargo was a contributing cause. The investigation to date has raised concerns about the export of nickel ore from Indonesia generally, and from Obi Island in particular. These concerns have intensified as a result of reports from the Club’s representatives currently at Obi Island, and by reason of a recent surge of notifications from Members intending to load nickel ore at Obi Island and at other Indonesian ports. Accordingly, upon further review of the HARITA BAUXITE loss, and in light of the circumstances described above, your Managers have concluded that they must require, with immediate effect and until further notice, that Members who plan to fix or charter a vessel to load nickel ore comply with the requirements set out below. A. Mandatory notification requirement for all nickel ore cargoes Club Circular No. 15/12 of May 31, 2012 , set out notification requirements for Members who plan to fix or charter a ship to load nickel ore from ports in Indonesia and the Philippines. Those requirements remain in full force and effect. However, such notification must be communicated to the Managers no less than 7 days prior to loading such cargo. As referenced in Circular No. 15/12, the following information must be provided, including the additional item 7 below: 1. Ship name. 2. Port/anchorage of loading and estimated time of arrival. 3. Date of intended loading. 4. Charterer/shipper’s details. American Club Circular No. 07 /13 2 5. Agent’s details. 6. Copy of the shipper’s cargo declaration and supporting certificate. 7. Name and address of laboratory used to test samples. With respect to item A.6 above, it is appreciated that such supporting certificates may not be available 7 days prior to loading. In such circumstances, the Member should provide the Managers with a copy of the cargo safety certificate(s) as soon as possible, or as soon as it (they) becomes available, but no less than 24 hours prior to loading. These notifications and the relevant documentation shall be sent electronically to: surveys@american-club.com . B. Mandatory survey, documentation and other requirements for nickel ore to be loaded at Obi Island Members considering carriage of nickel ore from Obi Island, Indonesia are required to do the following: 1. Members must comply with the requirements as set forth in SOLAS Ch. VI, Reg. 2 and Sections 4, 7 and 8 of the IMSBC Code. 2. Before a Member agrees to carry such a nickel ore