Offtake Agreement In Mandarin
According to a statement from Pilbara, the acquisition agreement includes 160,000 tonnes (tpa) of the production of level 1 level level concentrated chemical spodumes of the lithium-tantal project over an initial ten-year period, with two five-year options, to extend the agreement for a further ten years. As a result of the agreement, Colluli`s position has been strengthened as the most advanced and economically attractive SOP development project in the green grasslands, with euroChem being an excellent partner with global reach and significant fertilizer capacity. It supports maximizing the net prices of SOP products in Colluli, which will become the leading fertilizer supplier based in Africa in EuroChem`s supply chain. Taketake agreements can also provide an advantage to buyers and function as a way to secure goods at a specified price. This means that prices are set for the buyer before the start of manufacturing. This can be used as a hedge against future price changes, especially when a product becomes popular or a resource becomes scarcer, so demand trumps supply. It also guarantees that the requested assets will be delivered: the execution of the order is considered an obligation of the seller in accordance with the terms of the taketake contract. « We are pleased to have reached an agreement with one of the largest and fastest growing integrated lithium companies in the world and welcome Ganfeng as a long-term partner at Pilgangoora, » said Brinsden. Most of Abneh`s agreements contain force majeure clauses.
These clauses allow the buyer or seller to terminate the contract if certain events occur outside the control of one of the parties and when one of the other parties imposes unnecessary difficulties. Force majeure clauses often protect against the negative effects of certain natural acts, such as floods or forest fires. In addition to providing a guaranteed market and a source of supply for its product, an acquisition agreement allows the manufacturer/seller to guarantee a minimum result for its investment. Because taketake agreements often help secure funds for the creation or extension of a facility, the seller can negotiate a price that guarantees a minimum level of return on associated products and thus reduces the risk associated with the investment. Over-the-counter agreements are legally binding contracts related to transactions between buyers and sellers. Their provisions generally indicate the purchase price of the goods and their delivery date, even if the agreements are concluded before the goods are manufactured and all the land in a facility is broken. However, companies can generally opt out of an acquisition agreement through negotiations with the other party and payment of a royalty. In June 2018, Danakali signed a binding take-or-pay-offtake offtake contract with EuroChem Trading GmbH (EuroChem). Under the agreement, EuroChem will take, pay, market and market up to 100% of the SOP fertilizer production at the Colluli site over a period of ten years from the date of the project`s commissioning. The agreement, if agreed upon, can be extended for a period of three years.
EuroChem Trading GmbH (EuroChem) has entered into a pay-take-offtake commitment agreement on up to 100% of potash production (SOP) in the I-sulfate module (SOP) of the Colluli Potash Project (the agreement). Taketake agreements are often used in the development of natural resources, where the cost of capital for resource extraction is high and the company wants a guarantee that part of its product will be sold. Eugene is a spokesperson for local Mandarin and leads a team of experienced bilingual legal advisors in the Chinese practice of Hall-Wilcox. The offtake agreements also contain standard clauses that include recourse – including penalties – each party has in case of violation of one or more clauses.