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Letter On Intent: Item Specification Rejection

This letter expresses Zircon International's intent to purchase steam coal from an Indonesian supplier. It specifies the commodity as Indonesian steam coal with a net caloric value of 5500 Kcal/Kg. The letter requests a full corporate offer from the supplier including documentation of their mining permits, company profile, coal analysis certificates, and details of any additional offerings. It expresses interest in a long-term purchasing relationship of 10 million metric tons of coal per year.

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2K views2 pages

Letter On Intent: Item Specification Rejection

This letter expresses Zircon International's intent to purchase steam coal from an Indonesian supplier. It specifies the commodity as Indonesian steam coal with a net caloric value of 5500 Kcal/Kg. The letter requests a full corporate offer from the supplier including documentation of their mining permits, company profile, coal analysis certificates, and details of any additional offerings. It expresses interest in a long-term purchasing relationship of 10 million metric tons of coal per year.

Uploaded by

johny
Copyright
© © All Rights Reserved
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Date: 03.04.

2021

LETTER ON INTENT

To whom it may concern;


Cc: MR YUSNAN NASUTION, SH, M. Hum

LETTER OF INTENT TO PURCHASE STEAM COAL (NAR 5500 / KCAL)

1. COMMODITY: INDONESIAN STEAM COAL NAR 5500


(AS PER ASTM STANDARD METHOD)

We, Zircon International Sdn. Bhd. hereby confirm that we are ready, willing and able to purchase the following
commodity as per specification and in the quantity as specified in the terms and conditions as stated hereunder: -

ITEM SPECIFICATION REJECTION


TOTAL MOISTURE <= 15% >24
(ARB)
INHERENT MOISTURE 9 – 12%
(ARD)
ASH (ADB) 10% >20
VOLATILE 25% - 35% >45%
MATERIAL
(ADB)
FIXED CARBON (ARB) By difference
TOTAL SULPHUR <=0.6% >1.0%
(ADB)
NET CALORIC >=5500 Kcal/Kg <5000 Kcal/Kg
VALUE (ARB)
SIZE (mm) 0-50mm
HGI >=55 <45
MELTING TEMP (CELSIUS) 1150 Degrees
HARDGROVE 45
GRINDABILITY
2. PAYMENT & DELIVERY TERMS

ORIGIN Indonesia
PACKING Bulk
DELIVERY Shanwei Port, Guandong Province, China
FIRST TRIAL 200,000Mts (+/- 10%) => 4 x (50,000Mts) / Month
QUANTITY REQUIRED
TOTAL CONTRACT 10,000,000 Mt/year
QUANTITY
CONTRACT PERIOD 5+5 Year (Subject to Rolls and Extensions)
LEAD TIME Within 21 days from the date of L/C Issuance (100%
Loading Port Payment)
INSPECTION CCIC inspection at loading port (Seller’s Part)
QUALITY The inspection at the loading port shall confirm that the
commodity meets with the terms of quality, quantity
and specification of the Sale and Purchase Agreement
PAYMENT 100% Irrevocable L/C at sight payment at loading port
upon CCIC Inspection
TERM OF SHIPMENT FOB
SHIPMENT Partial Shipment is not allowed
SHIPPING DATE April 2021 Onwards
REMARKS: Other detailed terms and conditions to be mutually agreed as in the S&P Agreement
Note: How many tons can be produced per month (minimum 200,000.00 mt/month)

We would appreciate if you could provide us a Full Corporate Offer (FCO) for the above specified product and at the
same time furnish us the documentations pertaining to the supply of coal e.g. mining permits (Perizinan/IUP),
Company Profile, Certificate of Analysis (COA) of the coal and other detailed documents about the product specified
herein, as well as any additional offerings that you feel may support in our deliberations.

Looking forward to building up a long-term business relationship with you.

Thank you.

Regards,

MUAZ BIN FADZIL


MANAGING DIRECTOR
ZIRCON INTERNATIONAL SDN BHD

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