Document:

10

Refined Zinc Ore Supply Agreement

Contract No: BZ2879-060322

Date: March 22nd, 2006 

The Seller: Inner Mongolia Wulatehouqi Qianzhen Ore Processing Co., Ltd

The Buyer: Bayannaoer Zijin Non-Ferrous Metal Co., Ltd

Location: Inner Mongolia Wulatehouqi

The agreement is made conforming to Contract Law of the People's Republic of China and the relevant regulations, by and between the Seller and Buyer whereby the Seller agrees to sell and the Buyer agrees to buy the under-mentioned goods subject to terms and conditions set forth hereinafter as follows

Article 1:  Name of Commodity and specification:

					
	Name

	Specification

	Unit

	Qty

	Price

	Zinc concentrates

	≥50

	Metal ton

	 
	Negotiation

The unit price and total price will be adjusted according to Article 7 and Article 8 of the contract during the settlement.

Article 2:  Technical Standard and Quality Conditions: Unit: %

									
	Element

	Zn

	Pb

	Cu

	Fe

	As

	S

	SiO2

	Moisture

	Content

	≥45

	<2.0

	<1.0

	<14

	<05

	>26

	<5.5

	<14

Article 3:  Destination:

     The destination is at Zinc Smelter of Bayannaoer Zijin Non-Ferrous Metal Co., Ltd.

Article 4:  Terms of Transportation: 

The seller is responsible for transportation, and pays the freight. And the Buyer pays the fee of unloading. 

Article 5:  Packing: 

In bulk

Article 6:  Terms of Assay and Acceptance: 

1)

Except for meeting the requirements of the compositions listed in Item 2, the others shall conform to the National Zinc Concentrates Standard of PRC GB14261, GBS151.1 -GB151.12 

2)

The settlement for goods can accord with weighing of goods done by Buyer and meanwhile inspected by Seller. The samples shall be taken and sealed in Zinc Smelter of Bayannaoer Zijin Non-Ferrous Metal Co., Ltd and they are effective when both parties make the signature.

3)

The sampling and analysis of the goods ought to be carried out by Quality Inspection Department of Buyer according to Chinese Standard GB14261. Four samples are requested, one for Seller and one for arbitration (sealed after the signature of two parties, keeping in three months by Buyer) and two samples for Seller.

4)

The methods of sampling and analysis of the goods ought to be undertaken according to the rules of GB14261 and GB8151.1---GB8151.12; the assay result must be determined and revised by GB1250. 

Article 7:  Terms of Pricing and Payment:

     Both parties agree the pricing shall be made according to the monthly average settlement price of zinc 0# of Shanghai Nonferrous Metals (Future) Market by deducting 7,300 Yuan RMB. The Buyer shall pay all payment before receiving the goods.

Article 8:  Method of Payment:

1)

After the assay result confirmed by two parties, the value-added tax invoice shall be issued.

2)

Taking the grade 50% of Zinc concentrates as basis of pricing, when zinc grade is over 50%, if the grade increases one percentage (1%), the price will be increased by 20 Yuan RMB/metal ton; when the grade is between 45% and 50%, if the grade is reduced one percentage, the price will be reduced by 20 Yuan RMB/metal ton; when the grade is between 40% and 45%,if the grade is decreased one percentage, the price will be reduced by 50 Yuan RMB/metal ton; the grade less than 40% will be deemed as the substandard products, and the price shall be consulted by two parties. 

3)

The lead contained in ore should be less than 2%, if the grade is increased by 0.1%, the price will be reduced by 10 Yuan RMB/metal ton; iron content is required to be less than 14%, if the grade is increased by 1%, the price will be reduced by 30 Yuan RMB/metal ton; Arsenic content must be less than 0.5%, if the grade increases 0.1%, the price will be reduced by 30 Yuan RMB/metal ton. 

4)

Except for zinc, the other metals do not be accounted into the price. 

5)

The settlement will be made monthly. The seller should provide 13% value added tax invoice timely in 5 days. 

Article 9:  Liabilities for Breach:

     If any party breaches the item of this agreement, Contract Law of the People's Republic of China should be applied. Both parties should abide the relevant regulations of environment protection. The duty can be exempt if the breach of contract was caused by force majeure.

Article 10:  Settlement of Disputes:

The unmentioned items in this contract can be settled through consultations between both parties and sign the supplementary agreement. Any disputes arising from the contract will be settled through friendly consultations between both parties. In case no settlement can be reached through consultations, the disputes will be arbitrated by submission to the Wuletehouqi Arbitration Committee or Court of Wuletehouqi. 

Article 11:  Taxation:

The Seller is responsible for paying the tax, the tax items and its amount to be paid must follow the relevant law and regulations.

Article 12:  The agreement will be effective upon the affixing of seal. The unmentioned items of this contract can be resolved through consultations by the both parties.

Article 13:  This agreement is in sextuplcate, each party holds three originals, and each original has equal effect..

(Signature):

The Seller: Inner Mongolia Wulatehouqi Qianzhen Ore Processing Co., Ltd (seal)

Legal Representative: /s/                                        

The Buyer: Bayannaoer Zijin Non-Ferrous Metal Co., Ltd (seal)

Legal Representative: /s/Fluorite Powder Supply Agreement in 2006

Contract 

Party A: Wulatehouqi Zijin Mining Co., Ltd

Legal Representative: Mr. Hongfu Lin

       Address: Wulatehouqi,  

Post Code: 015543

Party B: Wulatehouqi Qianzhen Mining Ore Processing Co., Ltd

Legal Representative: Ms. Xiaojing Yu

       Address: Wulatehouqi,  

Post Code: 015543

The contract, made out, based on the mutual benefits and friend discussion, by and between Party A and Party B whereby Party A agrees to sell and Party B agrees to buy the under-mentioned goods subject to terms and conditions set forth hereinafter as follows

Article 1:  Within two and a half years, Party A shall totally supply Party B with 20,000 tons of the zinc ore with the average quantity more than 8,000 tons per month. The moisture of ore is required to be 1.8%. The weight of zinc ore can be determined and calculated according to the weighing result of scale.

Article 2:  The grade shall be confirmed by taking the samples at the presence of both parties, three samples will be taken at each sampling place and two of them will be assayed separately by each party and one for spare. The assayed results should be taken the average value of the sum of both parties’ results if the assayed result from each party is within the tolerance allowable.

Article 3:  The mining and production price is declared as a fixed comprehensive cost of 63 Yuan per ton (tax-inclusive).

Article 4:  Destination: 

In stock yard of Party A

Article 5:  Terms of Payment:

        Party A will issue to Party A the monthly invoice according to the actual delivery quantity and then Party B shall remit the payment of goods to the account of Party A.

Article 6:  Party B must guarantee to supply the processed zinc concentrates to Bayannuer Zijin Nonferrous Metal Co., Ltd according to the current price of market.

Article 7:  Party A will not supply the zinc ore until part A fulfill supplying 200,000 tons of zinc ore to part B within 2.5 years.

Article 8:  Liabilities for Breach of Contract:

If Party A supplies less quantity than 100,000 tons of zinc ore in one a year, Party A shall compensate Party B at the price of 150 RMB/tons for the left tonnages of zinc ore.

Article 9:  Miscellaneous:

1.

This contract is sextuplcated , each party have three originals.

2.

Both parties agree to resolve all disputes and the unmentioned matters between the parties through amicable negotiation. If a dispute cannot be resolved in this manner to the satisfaction of the Seller and the Buyer within a reasonable period of time, the case under disputes shall be submitted to the local People’s Court.

3.

Upon signature of this contract, the previous Federal Mining Operating Agreement signed in 2003 by and between Party B and Wulatehouqi Yingshan Mining Co., Ltd is terminated by itself.

Party A: Wulatehouqi Zijin Mining Co., Ltd (seal affixed)

       Legal Representative: /s/ Mr. Hongfu Lin

Party B: Wulatehouqi Qianzhen Mining Ore Processing Co., Ltd (seal affixed)

Legal Representative: /s/ Ms. Xiaojing Yu

Location:  In Wulatehouqi

Date:     Dec. 10, 200510

Fluorite Purchase Agreement

Contract No: JY-74-08

Date: April 23,2006 

The Seller: Inner Mongolia Xiangzhen Fluorite Industrial Co., Ltd

The Buyer: Langfang Xinda Iron Alloy Co., Ltd.

Location: Langfang City of Hebei Province

Article 1: Commodity and Specification:

													
	Category

	Particle size

(mm)

	Unit

	Price(Yuan/ton)

	Quantity and time of delivery

	Apr

	May

	Jun

	Jul

	Aug

	Sep

	Oct

	Nov

	Dec

	fluorite

	10-1000

	ton

	520

(Grade 85%)

	600

	1000

	1000

	600

	600

	600

	600

	600

	600

Article 2: The quality standard:

The quality of fluorite:CaF2≥85%, SiO2≦18%,H2O≦6%,with the powder rate: 4%.

Article 3: Checking Standard:

The price of fluorite (grade: 85%) is 520 Yuan RMB per ton. If the CaF2 increases 1%, the price will be increased by 5 Yuan RMB/ton. The buyer can refuse to receive the goods if the content of CaF2 is less than 85% and SiO2 more than 20%. If the moisture exceeds the standard, the exceeding part must be deducted.

Article 4: Destination: 

The goods is required to delivered by the special railway line of the Buyer

Article 5: Transportation and Fees:

The Seller is responsible for supplying the goods to Langfang Railway Station of Beijing Bureau. 

Article 6: Terms of Assay and Acceptance: 

The quality shall be determined according to the analysis of Buyer and the weight in accordance with the rail scale or truck scale. If the seller has disagreement on the check and acceptance, the seller can settle the matter in the buyer’s place within three days, otherwise the buyer has the right to make the treatment by himself. If there is some impurity in the fluorite, the buyer will deduct the quantity of the goods by three times of the impurity weight.

Article 7: Terms of Payments:

The buyer should prepay 50% of the payment when the buyer receives the railway bill and pay the remaining payment according to the bill of balance. 

Article 8: Right of Credit and Debt:

The contract can not transfer without the agreement of the two parties. The debt and credit formed in the period of executing the contract cannot be transferred. The buyer shall not bear any legal responsibility of the third party.

Article 9: Both parties agree to attempt to resolve all disputes between the parties by amicable negotiation. If a dispute cannot be resolved in this manner to the satisfaction of the Seller and the Buyer, the case under disputes shall be submitted to the court of implement place for arbitration.

Article 10: The seller should provide invoice to the buyer in 15 days before the seller makes the settlement. If the transportation is made by railway, the railway fee should be paid by issuing the 13% value added tax except for the bill of railway.

Article 11: The only purpose of this contract is for settlement. The contract becomes effective after signed by the two parties. The unmentioned items of this contract can be settled through negotiations between both parties.

 

(Signature):

The Seller: Inner Mongolia Xiangzhen Fluorite Industrial Co., Ltd

Legal Representative: /s/                                        

The Buyer: Langfang Xinda Iron Alloy Co., Ltd

Legal Representative: /s/

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