Raw Coal (Puyang Coal, Luliang Coal)

I. Quality Requirements and Conditions for Taking Responsibility for Quality

　　A penalty system based on exceeding product quality standards is implemented. If the product quality provided by the supplier exceeds the specified requirements, the settlement will be adjusted by deducting from the unit price as follows:

1. Puyang Coal

　　(1) When the lower heating value on an as-received basis is ≥ 4,000 kcal but < 4,200 kcal, a discounted purchase price shall apply. The settlement price for this batch of products shall be: Contract unit price + 4,200 × Measured calorific value × 0.97. When the lower heating value on an as-received basis is ≥ 3,800 kcal but < 4,000 kcal, the buyer shall have the right to refuse acceptance and warehousing, and the goods shall be returned or exchanged. All costs associated with returns and exchanges shall be borne by the seller. If the buyer agrees to accept the goods, the settlement price shall be: Contract unit price + 4,200 × Measured calorific value × 0.87.

　　(2) When the received-basis total moisture content is between 22% and 24% inclusive, a price reduction shall be applied. The calculation method for the price reduction is as follows: For each percentage point by which the received-basis total moisture content exceeds the quality standard, the price reduction amount equals the contract unit price multiplied by (the measured total moisture content minus the standard total moisture content). If the total moisture content of coal delivered to the plant exceeds 2%, the buyer has the right to refuse acceptance and storage and to request return or replacement. If the coal has already been stored, a price reduction shall be applied instead, with the reduction amount calculated as follows: Contract price × (measured total moisture content – standard total moisture content) × 2.

　　(3) In principle, if the total sulfur content on a dry basis exceeds 0.9%, the goods shall be returned or exchanged. If the goods have already been unloaded, a price reduction shall be applied instead. The calculation for the price reduction is as follows: For every 0.1% by which the total sulfur content on a dry basis exceeds the standard (even if the excess is less than 0.1%, it shall still be counted as 0.1%), a deduction of RMB 3 per ton shall be made. When the total sulfur content on a dry basis exceeds 1.1%, the buyer has the right to refuse acceptance and return the goods. If the goods have already been入库, a price reduction shall be applied accordingly. For the portion exceeding 1.1%, the calculation for the price reduction is as follows: For every 0.1% by which the total sulfur content on a dry basis exceeds the standard (even if the excess is less than 0.1%, it shall still be counted as 0.1%), a deduction of RMB 6 per ton shall be made.

　　(4) When the volatile matter content is between 28% and 30% (inclusive), this batch of products will be deducted by 5 yuan per ton.

　　(5) When fixed carbon content is between 28% and 30% (inclusive), this batch of products will be deducted by 5 yuan per ton.

　　(6) When the ash content exceeds 10%, this batch of products will be deducted at a rate of 5 yuan per ton.

2. Lu Liang Coal

　　(1) When the net calorific value on the application basis is ≥ 3,600 kcal but < 3,800 kcal, a discounted purchase price shall apply. The settlement price for this batch of products shall be: Contract unit price + 3,800 × Measured calorific value × 0.97. When the net calorific value on the application basis is < 3,600 kcal, the buyer shall refuse to accept the goods into the warehouse. However, if the buyer agrees to accept the goods, the settlement price shall be: Contract unit price + 3,800 × Measured calorific value × 0.87.

　　(2) When the total moisture content is greater than 28% but less than or equal to 30%, a price reduction will be applied. The calculation for the price reduction is as follows: For each percentage point by which the total moisture content exceeds the standard, the price reduction amount equals the contract unit price multiplied by (the measured total moisture content minus the standard total moisture content). If the total moisture content of coal delivered to the plant exceeds 30%, the buyer has the right to refuse acceptance and storage, and the coal shall be returned or exchanged. If the coal has already been stored, a price reduction will be applied instead, with the price reduction amount calculated as follows: Contract unit price multiplied by (the measured total moisture content minus the standard total moisture content) times 2.

　　(3) In principle, if the total sulfur content on a dry basis exceeds 0.5%, the goods shall be returned or exchanged. If the goods have already been unloaded, a price reduction shall be applied instead. The calculation for the price reduction is as follows: For every 0.1% by which the total sulfur content on a dry basis exceeds the standard (even if the excess is less than 0.1%, it shall still be counted as 0.1%), a deduction of RMB 3 per ton will be made. When the total sulfur content on a dry basis exceeds 0.7%, the buyer has the right to refuse acceptance and return the goods. If the goods have already been入库 (入库 means "put into storage"), a price reduction shall be applied instead. For the portion exceeding 0.7%, the calculation for the price reduction is as follows: For every 0.1% by which the total sulfur content on a dry basis exceeds the standard (even if the excess is less than 0.1%, it shall still be counted as 0.1%), a deduction of RMB 6 per ton will be made.

　　(4) When the volatile matter content is between 28% and 30% (inclusive), this batch of products will be deducted by 5 yuan per ton.

　　(5) When fixed carbon content is between 28% and 30% (inclusive), this batch of products will be deducted at a rate of 5 yuan per ton.

　　(6) When the ash content exceeds 12%, this batch of products will be deducted at a rate of 5 yuan per ton.

II. Quotation and Payment Settlement

　　1. The validity period for the bid prices submitted in this tender is from October 26, 2021, to November 30, 2021. During the validity period, prices shall not be adjusted or changed. Bidding companies should fully consider market risks.

　　2. From October 26, 2021, to November 30, 2021, delivery shall be made according to the delivery notices issued by the buyer. The supplier shall be responsible for transporting the goods to the company’s factory yard and unloading them; the supplier shall also bear the unloading costs.

　　3. Payment method for this tender and procurement: The buyer shall settle the payment based on the quantity and quality of goods delivered by the supplier. The supplier shall issue a special value-added tax invoice (including 13% VAT) to the buyer according to the settled amount. The buyer shall pay the supplier within 30 days from the date of receipt of such invoice.

3. Bid Opening and Evaluation

　　1. Bid opening date: November 1, 2021.

　　2. Bid Evaluation Method: Within 2 days from the bid deadline, the tendering party will conduct an internal bid evaluation.

　　3. Notice of Award: Within the validity period of the bid, the tendering party will notify the successful bidder in writing (Notice of Award). The Notice of Award is an integral part of the contract.

4. Signing of the Contract Agreement

　　1. After receiving the Notice of Award issued by the tenderer, the successful bidder shall sign the contract proposal at the time and place designated by the tenderer.

　　2. If the successful bidder fails to sign the contract agreement as required due to reasons attributable to the bidder, the procuring entity will revoke the bidder’s qualification as the successful bidder. In such a case, the procuring entity shall have the right to sequentially select the second-ranked bidder or an alternate successful bidder.