CONTRACT FOR SALE/PURCHASE OF IRON ORE

Contract No
DATE: 2020
This Contract is made between the Seller and the Buyer at Visakhapatnam, India for Processed Iron Ore Fines,
under which the Buyer agrees to buy and the Seller agrees to sell the Commodity on the following terms
and conditions.

The following signed Contract is a document that is legally binding.

BUYER

Seller:

WHEREAS:

a) The Seller with full corporate authority, makes an Irrevocable Firm commitment to sell the commodity on
Sellers Ex-plot Terms, hereby certifies, represents and warrants, that it can fulfill the requirement of this
Contract and provide the commodity herein mentioned and under the terms and conditions specified and
agreed upon by signatories hereafter.

b) The Buyer hereby agrees and makes an irrevocable commitment to purchase the commodity with terms and
conditions as follows:

Definition
In this Contract to following terms shall, unless otherwise defined, have the following meaning：
A. "Ore" means Processed Iron Ore Fines produced from mines in India.
B. "INDIA CURRENCY. Currency" means the currency of INDIA
C. "Wet basis" means Ore in its natural wet state.
D. "Dry basis" means Ore dried at 105 degrees centigrade.
E. "WMT" or "Wet metric ton" means a metric ton of Ore on Wet Basis.
F. "DMT" or "Dry metric ton" means a metric ton of Ore on Dry Basis.

Article 1 – Commodity
1.1. Iron Ore Fines – Define precise Mine name(s) as origin of commodity

Article 2 – Specifications (On Dry Basis)

Fe: 57.00 % Basis/ 57% Min (Rejection Below 56%)

AL203: 5.50% Max
SIO2: 6.50% Max
Phos: 0.08% max
Sulphur : 0.07% max
Moisture: 10.00% Max (Free Moisture Loss at 105 Deg. C)

Physical Size (Natural Basis):

 Above - 10mm 10% Max
Below - 10mm 90% Min
Below - 150 Micron: 30% Max

Article 3 – Quantity

3.1 Total: 50,000 dry Metric Tons (+/- 10% at sellers’s option).

Article 4 – Origin and Port(s) of Loading

Origin: India
Loading point : sellers ex-plot
Discharge point :-do-

Article 5 – Price and Value

5.1 Rs. 4600/- Per MT+ Taxes Extra, Visakhapatnam Sellers ex-plot, India on the basis of 57.00% Fe .
Excluding all duties at the time of unloading the Plot.

Article 6 – Payment

6.1 Payment to be made by RTGS from Buyer bank to seller bank

6.2 Payment by RTGS (100% at 10,000 MT Loading point) and RTGS at a time to sellers
A/C on lot basis

Article 7 – Price Adjustment

1) 57.00% Fe Contents

If Fe content is over 58.00% for each 1% Fe premium should be calculated at INR 1 Rs Per DMT
Fraction Pro-rata.

If Fe content is below 57.00% a penalty should be calculated at INR 1Rs Per DMT
Fraction Pro-rata up to 56%.

Buyer shall have a right to reject the entire cargo if Fe is below 56% or accept with the revised price.

2) Impurities

7.2.1 If the composition of Ore in respect of Alumina (Al2O3), Silica (SiO2), Sulphur (S) and Phosphorus
(P) exceeds the respective guaranteed maximum as set forth in Article 2 herein above, Buyer shall
accept such delivery of Ore by imposing penalties provided below, fractions pro rata.

3) Size
In the event that the oversize quantity exceeds the respective guaranteed maximum as set
forth in Article 2, Seller shall pay the penalty at INR 1 Rs Per Wet Metric Ton on natural basis
fractions pro rata shall be applied to the quantities Above 10 mm in excess of 10%.
In the event that the undersize quantity exceeds the respective guaranteed maximum limit as
set forth in Article 2, Seller shall pay the penalty INR Rs. 36 Per Wet Metric Ton on natural basis
fractions pro rata shall be applied to the B/L quantities if fines below 150 Micron in excess of
30%.

4) Moisture

In case of FOR, if free moisture loss at 105 degrees centigrade as finally determined pursuant to
the provisions of clause 6 exceeds the guaranteed maximum referred to in clause 1.1.3, seller
shall pay buyer full ocean freight attributable to moisture over 10%.
Article 8 – Inspection

10.1 Inspectorate Griffith India Pvt Ltd/SGS India Pvt Ltd/ Mitra S.K. Private Ltd. shall jointly
inspect the Commodity for Quantity and Quality at place of loading with Buyers nominated
inspection agency. Buyer may send an Inspection Team to do joint inspection at their own
expense and risk, to observe the inspection and loading of Commodity at loading Port.

Article 9 – Weighing
A) Weighing at sellers Ex-plot or weighing point on the way

Article 10 – Sampling & Analysis

At the loading port seller shall at seller’s expense to appoint Inspectorate Griffith India Pvt Ltd/
SGS India Pvt Ltd/ Mitra S.K. Private Ltd to determine the specification of ore content in the
shipment, and shall provide a certificate showing Chemical composition and also the percentage
of free moisture loss at 105ºC. Buyer if felt necessary would depute their representative or
nominate agency at their cost to witness operations at loading port.

The weighing, sampling and chemical analysis, moisture determination and screen
analysis performed at the load port by Inspectorate Griffith India Pvt Ltd/SGS India Pvt Ltd/ Mitra
S.K. Private Ltd shall be to seller’s account.

Article 11 – Other Terms and condition

We are selling sellers ex-plot hence shipment schedule does not make

any sense, Other Terms

The contract to be kept strictly private and confidential.

Article 12 – Force Majeure

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
character, civil commotion's, sabotage, quarantine restriction, acts of Government, fire, floods,
explosions, epidemics, strikes, embargoes, then the date of fulfillment of any obligation shall be
postponed during the time when such circumstances are operative.

If operation of such circumstances exceeds one month, either party will have the right to refuse
further performance of the contract in which case neither party shall have the right to claim
eventual damages. The party which is unable to fulfill its obligations under the present contract
must within 15 days of occurrence of any of the causes mentioned in this clause shall inform the
other party of the existence of the circumstances preventing the performance of the contract.

or any other competent authority connected with the cause in the country of the Seller or the
buyer shall be sufficient proof of the existence of the above circumstances and their duration.
Non-availability of material will not be an excuse to the Sellers for not performing their obligations
under this contract.

Article 13 – Arbitration Arbitration: Indian Court under Jurisdiction of .

All disputes in connection with this contract or the execution thereof shall be settled amicably by
friendly negotiations between the two parties. If no settlement can be reached, the case in
dispute shall then be submitted for arbitration in accordance with the SIAC rules and the award
made in pursuance thereof shall be binding on both the parties. The venue of arbitration
proceedings will be in India. The arbitration award rendered therein shall be final and binding
upon both parties. The cost of arbitration shall be borne by the losing party, unless otherwise
determined by the arbitration award.
Article 14– Banking
Information Buyer
Bank Name :
Address :
BENIFICIARY :
ACCOUNT No :

SELLER
Bank Name :
BRANCH :
Account Number :
IFSC :

Article 15 – Validity
This contract consists of total 17 Articles, and is considered Valid from the Date of Signing by
Buyer and Seller through completion of execution of its Terms and Conditions.
Any changes of the Terms and Conditions of this Contract must be in written form and added
as an Addendum upon agreed, signed and dated by both parties. This shall be considered as an
integral part of this original Contract.
This Contract shall be considered legal and binding upon signatures on fax / e-mail copies.
This contract has been issued, signed and sealed on 17 articles.
Any addendum to be agreed in future shall be mutually signed and be considered as integral parts
of this contract.

For Buyer For Seller

(Authorized Signatory) (Authorized Signatory)