SALE & PURCHASE CONTRACT FOR IRON ORE FINES ON LOADED INTO RAILWAY RAKES Contract No.: bmv1413/2012 Date: 8 th August 2012 This Sale and Purchase contract made and entered into this for the supply of Iron Ore Fines of grade 63+% Fe content (rejection below - 62.5% Fe) by and between: SELLER Company Name BMV ENGINEERING TRADING COMPANY Address 1-5-135, KOTHAPET HYDERABAD Represented By B PRADEEP KUMAR Telephone 04024057899 Fax 04024047899 Mobile 9160239508, 9000330324 Email [email protected]AND BUYER Buyer Address Phones Fax Branch off Seller’s Initial Buyer’s Initials Page 1 of 21
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SALE & PURCHASE CONTRACT FOR IRON ORE FINES ON LOADED INTO RAILWAY RAKES
Contract No.: bmv1413/2012 Date: 8th August 2012
This Sale and Purchase contract made and entered into this for the supply of Iron Ore Fines of grade 63+% Fe content (rejection below - 62.5% Fe) by and between:
SELLER
Company Name BMV ENGINEERING TRADING COMPANYAddress 1-5-135, KOTHAPET HYDERABADRepresented By B PRADEEP KUMARTelephone 04024057899Fax 04024047899Mobile 9160239508, 9000330324Email [email protected]
AND
BUYER
Buyer
Address
Phones
Fax
Branch off
Contact
person
This Contract is made by and between the Buyer and the Seller, whereby the Buyer agrees to
buy and the Seller agrees to sell the under mentioned goods on the terms and conditions stated
below:
Seller’s Initial Buyer’s Initials
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SALE & PURCHASE CONTRACT FOR IRON ORE FINES ON LOADED INTO RAILWAY RAKES
Contract No.: bmv1413/2012 Date: 8th August 2012
Terms & Definitions Used In This Contract
In this contract, the following terms are used and the meanings or terms or explanations
provided against each shall mean the same as the terms. Where ever the terms are not
explained, it is deemed that they are used in the perfect sense of Mercantile Business
Transactions and shall mean the same.
Chemical formula or symbols as per the Mendeleev’s periodic table wherever used shall mean
the same as their chemical name.
A. “Ore” means Iron Ore of Indian Origin.
B. “INR” means the currency of the government of India freely transferable from and payable
to an external account.
C. “Wet Basis” means ore in its natural wet state. WMT means Wet Metric Ton
D. “Dry Basis” means ore dried at 105 degrees Centigrade. “DMT” means Dry Metric Ton.
E. “Wet Basis” means Ore in its natural state. “WMT” means Wet Metric Ton.
F. “SGS” means Societe Generale de Surveillance, SGS INDIA PVT LTD.
G. “MT” means Metric Ton.
H. “Max” means maximum, “Min” means Minimum.
I. “L/C” means Letter of Credit issued by bank.
J. “Rock” means any Rly Rake
CLAUSE 1 Commodity: Iron Ore Fines, Fe Content 63%+ with Rejection Below 62.5%.
Country of Origin: India.
Rock of Loading: Rly Rake at Odissa and Jarkhand.
Seller’s Initial Buyer’s Initials
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SALE & PURCHASE CONTRACT FOR IRON ORE FINES ON LOADED INTO RAILWAY RAKES
Contract No.: bmv1413/2012 Date: 8th August 2012CLAUSE 2
QUANTITY, DELIVERY PERIOD & LOAD PORT
Total Quantity: 40,000 DMTs (+/- 10% at Seller’s option).
Delivery : The delivery of the total quantity of iron ore fines shall be completed within 40 days +/- 5 days and upon respective arrangement of RLY rake by the buyer and after the receipt of the Buyer’s confirmed, irrevocable revolving, non transferrable LC for the 100% of the quantity.e 40000MT at the Seller’s banking counter, acceptable to Seller.
Load Rly Rake : Anywhere At Odisha and Jarkhand. It is the responsibility of buyer to arrange
the RLY RAKE and to place it at seller’s loading point.
CLAUSE 3
CHEMICAL & PHYSICAL SPECIFICATIONS
Chemical Composition
(on Dry Basis)
% of Composition Comment
Iron – Fe 63.5% Min Rejection below 62.5%
Silicon Dioxide - SiO2 3.5% Max Rejection above 4.5%
Aluminum Oxide - Al2O3 3.5% Max Rejection above 4.5%
Phosphorus - P 0.07% Max Rejection above 0.08%
Sulphur – S 0.07% Max Rejection above 0.08%
Moisture 8.00% Max At 105 Degree Centigrade
Physical Composition (On Wet basis):
Size above 10 mm 10% Max
Size below 10 mm 90% Max
Size below 0.15 mm 35% Max
Seller’s Initial Buyer’s Initials
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SALE & PURCHASE CONTRACT FOR IRON ORE FINES ON LOADED INTO RAILWAY RAKES
Contract No.: bmv1413/2012 Date: 8th August 2012
CLAUSE 4
BASE PRICE AND TOTAL AMOUNT
A. Base Price : INR 2,800/- (Indian Rupees Two Thousand Eight Hundred Only) per Dry
Metric Ton, loaded into racks near mines railway siding, buyer has to arrange on Fe 63%+
content in respect of iron ore fines, with rejection below 62.5%. The price is exclusive of
any Export Duty. Any such duty and transpiration to be on Buyer’ account.
CLAUSE 5PRICE ADJUSTMENT
A. For Fe Content
In respect of the material of iron ore fines which does not meet the Fe specifications as set
forth in Clause 3 of this contract, the Base Price referred to in Clause 4 of this Contract, shall
be adjusted in accordance with Fe content as determined pursuant to the provisions of Clause
9 as follows:
BONUS/ PENALTY
The Base price shall increase at a rate of Rs. 25/- per Dry Metric Ton for each 1.0% Fe content
above 63.0%, fractions pro-rata.
The Base price shall reduce at a rate of Rs. 25/- per Dry Metric Ton for each 1.0% Fe content
below 62.5% up to and including 62.00%, fractions pro-rata.
If Fe content falls below 62.5%, the Seller and Buyer Shall negotiate in an amicable way to
achieve a mutually agreed price settlement. If no settlement can be reached, the Buyer shall
have the right to reject the Cargo.
Seller’s Initial Buyer’s Initials
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SALE & PURCHASE CONTRACT FOR IRON ORE FINES ON LOADED INTO RAILWAY RAKES
Contract No.: bmv1413/2012 Date: 8th August 2012B. For Other Elements
If the shipment does not meet any of the chemical compositions other then Fe provided in
Clause 5A as finally determined in accordance with the provisions of Clause 9, the base price
shall be decreased as follows, fraction pro-rata:
A. For Excess Phosphorous (P):
At the rate of INR 2.00/- per Dry Metric Ton for each 0.01% in excess of 0.09%
B. For Excess Sulphur (S):
At the rate of INR 2.00/- per Dry Metric Ton for each 0.01% in excess of 0.09%
C. For Excess Silica (SiO 2):
At the rate of INR 2.00/- per Dry Metric Ton for each 0.1% in excess of 4.50 %
D. For Excess Alumina (Al 2O3):
At the rate of INR 2.00/- per Dry Metric Ton for each 0.1% in excess of 4.50 %C. For Size
If the shipment does not meet the physical specifications, the base price shall be decreased as
follows, fractions pro-rata:
1. INR 2.00/- per MT on Natural Basis Fraction Pro-rata shall be applied to the
quantities of iron ore fines above 10 mm in excess of 10%.
2. INR 2.00/- per MT on Natural Basis Fraction Pro-rata shall be applied to the
quantities of Fines below 150 microns in excess of 35%.
D. For Excess Moisture
Seller’s Initial Buyer’s Initials
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SALE & PURCHASE CONTRACT FOR IRON ORE FINES ON LOADED INTO RAILWAY RAKES
Contract No.: bmv1413/2012 Date: 8th August 2012The free moisture content at 105 degrees centigrade shall not exceed the respective
guaranteed maximum as set forth in Clause 5 herein above.
In the event that the free moisture loss at 105 degrees centigrade as finally determined in
accordance with the Clause 5 exceeds the guaranteed 10% maximum, seller shall pay to buyer
the cost of the moisture over 10% as per contracted price or fulfill the difference by material.
CLAUSE 6PAYMENT
A. After the signing of the contract by both the parties, the Buyer shall open 100%
confirmed, irrevocable, Non Transferable, Revolving LC at sight for every rake
B. LC will be cleared 80% upon rake loading confirmation given by the seller at the
loading point and the rest of the 20% will be cleared after Inspection at the
unloading point of the buyer. And the process of payment is respectively same
for every rake loaded.
C. All fees and expenses for opening the Revolving LC for every rake with the
opening bank including charges for confirmation of the L/C shall be borne by the
Buyer. All fees and expenses other than the bank charges aforesaid which arise
outside the bank at which this L/C is established shall be borne by the Seller.
D. After the contract is signed and the Revolving LC for every rake
E. LC as stated in point (A),of clause 6, has been opened in favour of the Seller, the
Seller shall start delivering and unloading the iron ore fines at railway siding
nearest to the mines . The Seller shall nominate a reputed Inspection Agency at
his own cost for the analysis of the iron ore fines at seller’s nominated mining
plot.
Seller’s Initial Buyer’s Initials
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SALE & PURCHASE CONTRACT FOR IRON ORE FINES ON LOADED INTO RAILWAY RAKES
Contract No.: bmv1413/2012 Date: 8th August 2012
F. The grade of iron ore fines ascertained and certified by SGS India Private Limited
or its equivalent agency shall be the basis of Seller's invoice.
CLAUSE 7
DOCUMENTS FOR PAYMENT
For payment, the Seller shall, as soon as possible and practical after at seller’s load point
documents in respect of each day’s delivery:
A. DOCUMENTS L/C for every rake PAYMENTS :
01. Invoice for L/C for every rake
02. Certificate of Quality in respect of the Fe content of iron ore fines
03. Certificate of Weight obtained from Railways or reputed weigh bridge.
After completion of sampling for analysis by SGS India Private Limited or its equivalent agency
appointed by the Buyer for physical analysis, composition and free moisture content, the
samples taken for the chemical analysis shall be divided into 4 (Four) equal parts and sealed
separately. The Seller and Buyer shall each retain one such sealed sample for their respective
analysis if required, and, the third sample to be retained for umpire purpose.
CLAUSE 10
FORCE MAJEURE
Seller’s Initial Buyer’s Initials
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SALE & PURCHASE CONTRACT FOR IRON ORE FINES ON LOADED INTO RAILWAY RAKES
Contract No.: bmv1413/2012 Date: 8th August 2012
If at any time during the existence of this contract, either party is unable to perform whole or
in part any obligation under this contract because of war, hostility, military operation of any