FCO RULES

CIPL TERM CONDITIONS

CIPL FCO RULES

As a company we take client confidentiality extremely seriously, and do not just give away sensitive company information, to anyone that asks. I would like to ask you all a question:- If I gave out your existing ongoing contract's COA & BL, to every broker/trader that asked for it and they then took it upon themselves to ring that client, and "induce them to move"  by offering discounted coal at 15-50 cents less per tonne, and ended up cancelling your contract and your income, just how would you feel? It never ceases to astound me, these continual requests..."My client will do nothing without COA & BL" I am sorry to say utter Hogwash, these constant requests are made before I even have a chance to offer a price.......... . Lets be Honest a COA & BL proves past performance only, not future performance, that is our Job, by only using the best Miners in Indonesia, so this feigned importance by some brokers, who continually ring for COA/BL, has no sway with us.  It is an industry on its own, and companies set up specifically to try and break contracts and offer a lower price.. Indonesian specifications of coal are pretty similar (with ash and sulphur being the main deciding factors), and on that basis, that is why a client offers their required specification, and the brokers & traders role is to find that coal.......... Once a Miner has said "Yes" and a price has been agreed and a Formal Corporate Offer issued, confirming required specifications are available, we are now under "FCO Conditions"..........where due diligence has to be done by both parties. And that starts with the miner, on receipt of a signed and stamped FCO from the buyer, and NOT represented by any other party. The Miner is the one taking all financial risks, and his DD, will be to ensure, the client has an acceptable LC, company has signed and stamped the FCO with company seal, the company have issued a formal ICPO., to ensure this end buyer is real and genuine. Once this has been done the Miner will have absolutely no problem issuing all required documentation for the end buyer:- COA/BL/IUP/CP, and any other information the buying company requires to take this deal forward And under these conditions the Buyer is then able to carry on extra Due Diligence to ensure they are 100%  satisfied with supply, ongoing demand and quality. MINE SITE VISITING     : After our FCO/Buyers ICPO have been                                                 counter confirmed & signed by seller & buyer DOCUMENTATION         : ROA.EX-BL/COA/IUP-OP will be sent after our FCO                                                 has been confirmed by buyer with DLC PERMISSIONS                   : After receipt of LC, Buyers, Graders, Representative’s                                                                       will be  allowed to inspect goods at Mine-                                                  Site/Stockpile/Jetty We will continue to follow FCO rules, as it is what is requested by Miners, Experienced Traders/Brokers, who fully understand a real buyer will have NO OBJECTION whatsoever in following these terms.