Standard Operation Procedure (SOP).

1. THE SELLER sends formal SCO and the coal technical sheet.
2. NCNDA From Mandate to Mandate, and between seller & buyer
3. THE BUYER: Sends a LOI & KYC to the seller mentioning that accept the technical specs of the coal offered according to the technical sheet and SOP.
4. THE SELLER: Sends a FCO with prices, delivery schedule and verbiage required for payment instrument, the Official authorization for commercialize the coal and SGS certificate.
5. THE BUYER signs the FCO for the acceptance of the conditions and terms and attaches send the ICPO (including CIS & Registration certificate) to THE SELLER.
6. THE SELLER sends the SPA draft to Buyer for review

7. THE BUYER AND SELLER discuss any modification of the sales contract
UNTIL the last draft is approved and the party’s sign.

8. THE SELLER will issue proforma invoice for the buyer to sign and return. This contract between the buyer and the seller will be presented to the banks.
9. The Buyer´s issue an RWA from the bank indicating they are ready to issue the financial instrument. And the Seller allows to visit the mine & port for confirming the stock available.
10. Once both parties have confirmed their ability to perform, an operational
Documentary Letter of Credit (DLC/MT 700) or Bank Guarantee SBLC (MT760) + MT103 at FOB.
11. Once the SBLC/DLC is advised by the Seller´s bank, the port allocation can be advised, the vessel & Port agent can be nominated (LAYCAN), the Seller confirms readiness to Agent, and coordinate with the Buyer or his Agent the Logistics details.