In August 2011, Northwest Mining Ltd, a west Australian firm entered into a contract - subject to Australian law - with PhilOre Co, a Philippine iron ore processing firm for three 25,000 tonne shipments of first grade 63.5% iron ore at US $120 per tonne ($3 million per shipment) from Port Hedland in the first weeks of December 2011, April and July 2012 respectively. Under the contract, there was also a $1 million per instalment shipping charge. Each $4 million instalment charge was payable a month in advance by PhilOre setting up an irrevocable letter of credit with Northwest's Perth bank; Northwest requiring four weeks between payment and the earliest possible date for shipment. Northwest's own scientific unit was to issue a certificate of 63.5% purity for each shipment. Under the contract each instalment was to be delivered to a nominated Philippine port by Northwest's single bulk iron ore carrier, the MV Rustie. However, subsequent contract execution didn't conform to the hopeful expectations of either party.
Attachment:- 224991_1_POLITICAL-ASSIGNMENT.docx