Product overview
Copper ore in raw, lumpy form is offered from mining areas in the Philippines. The seller indicates possible spot or annual supply, with shipment volumes and the final commercial arrangement to be confirmed following a site visit and execution of a mutually agreed contract.
Product details
- Product: Copper ore, raw lumpy form
- Origin: Philippines; stated areas include Surigao, Agusan del Sur, the Zamboanga Peninsula, Davao, Pangasinan, Mati/Davao, and South Cotabato
- Indicative quantity: 100 to 10,000 metric tonnes per month
- Indicative annual volume: Up to 1.2 million metric tonnes, subject to verification and contract
- Supply basis: Spot or annual programme
- Specification: Appendix referenced by the seller but not included in the supplied offer; assay and full technical specifications are required before agreement
Delivery and inspection
- Delivery timing: Seller states a maximum of 30 days after receipt of payment; the trigger, readiness conditions, and shipment schedule should be confirmed in the contract
- Loading and destination: FOB a port in the Philippines is stated. The exact port and applicable Incoterms edition must be specified in the contract
- Packing/loading: Per boatload
- Shipment rate: To be set out in the contract
- Inspection: SGS, CCIC, or Intertek inspection at the loading location is proposed
Price
- Pricing basis: LME-linked formula, described in the source offer as an LME-based deduction related to copper content (Cu%).
- Final price: Not stated as a fixed amount. The payable copper percentage, deductions, treatment charges, moisture, impurities, assay method, currency, and calculation formula must be agreed in writing.
- Alternative route mentioned: CIF delivery from a Philippine port to a destination port in China. The named destination port, freight, insurance, and full CIF price are not provided.
- Taxes and charges: The source mentions 12% VAT and other charges, but the basis, recipient, legal applicability, and responsibility for payment are unclear and require documentary verification.
Payment terms stated by the seller
- Production/documentation option: 50% advance payment is requested, with the balance linked to documents under the proposed CAD (Cash Against Documents) process.
- Raw ore option: The offer also refers to 100% payment by telegraphic transfer (TT), or a 50% cash down payment with the balance after documentation stamping and other clearances.
- Initial payment procedure: One clause proposes a 50% down payment by SWIFT transfer within 48 hours after the final contract and commercial invoice are received.
- Documentary balance: The offer refers to payment within 48 hours after receipt of specified documents, including a CMR copy, original SGS/CCIC quality certificate, permit copies, and original commercial invoice. The applicability and timing of each document should be clarified.
- Conflicting wording: The supplied offer contains several different payment formulations, including “50-100%” CAD and a 100% TT option. The parties should select one unambiguous payment schedule in the signed contract before funds are transferred.
Documents and seller assurances
- Documents mentioned: CMR copy, original SGS/CCIC quality certificate, copies of permits, and original commercial invoice.
- Additional documents: Export authorisations, ownership/source records, assay reports, weight certificates, and any required customs or regulatory documents should be identified and verified before shipment.
- Seller assurance: The seller refers to evidence of product source and stock, and a guarantee linked to the shipment value. The wording and refund mechanism are unclear and should be defined in the contract with independent verification.
Proposed transaction procedure
- 1. Buyer submits an ICPO or LOI and a bank comfort letter (BCL), as requested by the seller.
- 2. Seller issues a Formal Corporate Offer (FCO).
- 3. Buyer signs and returns the FCO within the stated 48-hour period, if acceptable.
- 4. Seller provides a draft contract; buyer reviews and returns proposed changes within the stated 24-hour period.
- 5. Seller reviews the amendments and issues the final contract and pro forma invoice if the terms are accepted.
- 6. Both parties sign the final contract. Any advance payment should be made only under the verified, agreed payment clause.
- 7. The parties arrange a site visit and verify the production site, available stock, permits, assay results, and loading arrangements before treating the offer as binding.
- 8. If hard-copy documents are required, the seller states that signed documents can be dispatched by courier or registered post.
Offer validity and conditions
- Offer validity: Stated as 72 hours; confirm the issue date and expiry time in writing.
- Site visit: The seller states that the purchase contract process begins after an on-site inspection of the production site and agreement on conditions.
- Mobile/site funds: The offer refers to funds for travel or accommodation depending on the distance to the site, said to be deductible from the product contract cost. The amount, recipient, supporting receipts, and refund/deduction mechanism must be agreed in writing before any payment.
- Contract conditions: Final quantity, specifications, price formula, loading port, delivery schedule, inspection protocol, payment milestones, taxes, documents, and remedies for non-performance must be confirmed in a signed contract.
