PURCHASING COAL / SUBMITTING YOUR LOI
To acquire a pricing quote, we must have a complete verifiable request from the actual buying group. The email or LOI issued from the buyers, needs to include full corporate information, amount, target price, delivery, coal specifications, rejection limits, contact information and any additional information relevant to the buyers request. In certain cases, financial information may be required. There are many coal price averages as there are coal qualities (i.e., sulfur, Btu), market types (i.e., steam coal, metallurgical or coking, industrial, and export).
UNDERSTANDING THE PAYMENT TERMS
Following is a sample offer to sell coal and the documentation necessary to complete a contract. Additionally, we have added the detail that is to be included in your documentary Letter of Credit.
We require an official translation to English of all documents, including those already received.
The overall requirements for sale/purchase of coal will be documented by a Master Contract. I will attach a copy of such an agreement for consideration and translation to begin the process of documenting a contract. A copy of the standard specifications for the coal is included in a separate email. The specifications may be modified by the user to meet their particular requirements. Any modifications must be accepted by the Supplier and would become a part of the Master Contract.
The terms of the final agreement would be added to the contract and/or attached as a part of the Master Contract. These additions would include all of the details of the purchase, delivery and payment.
The following sample offer to sell is based on transportation by barge from the mine to a port. Should rail transportation be required or requested, the Buyer is responsible for the incremental cost increase. Included in this offer are the requirements for payment necessary to complete a contract.
Product : COAL
Quantity : ?
Term : ?
Packaging : ?
Price : Price of coal only; may be renegotiated after twelve (12) months
Payment : Irrevocable Letter of Credit
LOC to be transferable.
Advising / Confirming Bank selected by Beneficiary / Seller
Bank shall be a top 50 US bank.
Credit and ability to pay must be confirmed.
Partial shipments are necessary.
Multiple payments required for each shipment.
Payments due upon receipt of certified documents.
The coal will be transported from the point of origin via river barge to the Port, where it will be off loaded and stored for future shipment. The * incoterm for the shipment to the Port will depend on the final agreement with the Buyer. Multiple payments must be made from the LOC and title to the coal must transfer to the Buyer.
When the coal is loaded on the barge at the mine port and certified as to product and quantity and documents presented, a payment will be made from the LOC. The final payment must be made when the coal is off loaded from the barge at the Port.
The schedule of payments could be modified should the Buyer include the international transportation in the Contract to Purchase. The Seller can arrange complete transportation from the mine to the international port of entry.
Product Origin : ?
Inspection : Coal inspected and certified prior to loading the barge at the mine.
Buyer is responsible for any additional inspections.
Copies of all documentation will be provided when available. Partial list of documents:
Forwarder’s Cargo Receipt
Marine / Ocean Bill of Lading
Any dispute that occurs during the fulfillment of any contract will be settled in the state of the contract.