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					Ref. No.: HCL/HO/MATLS/CONC/TOLLING/2010-11                               Date : 11.05.2010

         SUB: GLOBAL TENDER FOR TOLL SMELTING & REFINING OF
              COPPER CONCENTRATE (KCC AND MCP ORIGIN).

1.0   Hindustan Copper Limited (HCL), a public sector undertaking under the
      administrative control of the Ministry of Mines, is a vertically integrated copper
      producing company, manufacturing copper from the stage of mining to beneficiation,
      smelting, refining and casting of refined copper metal into downstream saleable
      products. The company markets copper concentrate, copper cathode, copper wire bar,
      continuous cast copper rod and by-products, viz. anode slime (containing gold, silver,
      etc.), copper sulphate and sulphuric acid.

      HCL‟s mines and plants are spread across four operating Units, one each in the states of
      Rajasthan, Madhya Pradesh, Jharkhand and Maharashtra as named below:
             1. Khetri Copper Complex (KCC), Khetri Nagar, Rajasthan

             2. Indian Copper Complex (ICC), Ghatsila, Jharkhand

             3. Malanjkhand Copper Project (MCP), Malanjkhand, Madhya Pradesh

             4. Taloja Copper Project (TCP), Taloja, Maharashtra

      A map showing location of HCL‟s operating Units across the country is shown at
      Annexure-I.

      HCL hereby invites sealed offers in two bid system from other copper producing
      companies for toll smelting & refining of its Copper concentrate of Malanjkhand
      Copper Project (MCP), Madhya Pradesh origin and receive back Copper cathodes,
      conforming to LME Grade „A‟, at Taloja Copper Project (TCP), Maharashtra.

      The quantity of Copper concentrate of MCP origin, to be made available by HCL for
      toll smelting & refining during 2010-11, shall tentatively be as under:

      Copper concentrate of MCP origin                  :      18,500 WMT
      (Hereinafter described as MCP copper concentrate)

      The above quantity shall be available ex-works MCP for toll smelting & refining from
      April, 2010 to March, 2011.

      The successful bidder shall be required to lift Copper concentrate ex-MCP works
      MCP through their own arrangements, and deliver LME Grade „A‟ Copper cathodes,
      after conversion in their smelting and refining units, to HCL‟s Taloja Copper Project
      (TCP) in Maharashtra.

      The bidders are required to quote their tolling charges in Indian Rupees per tonne of
      returnable metal, for MCP Copper concentrate, considering the quantities as specified
      at Clause 2.2 and recoveries as specified at Clause 4.0. The tolling charges should be
      inclusive of transportation and handling charges.

      Currently there are no applicable tax/duties to be levied on tolling of copper
      concentrates. However, in future, if any taxes and duties become applicable on tolling
      of copper concentrates then contractor has to absorb the same.

                                             1
      Income tax, as applicable from time to time, shall be deducted at source on the gross
      tolling charges. Other taxes, if any, will also be deducted from the gross tolling
      charges.

      Service Tax, if any, shall be initially borne by the contractor which will be reimbursed
      by HCL, on production of relevant Cenvatable invoice by the contractor.

2.0   MATERIAL, QUANTITY AND SPECIFICATION

      2.1    MATERIAL: MCP copper concentrate.

      2.2    QUANTITY:
             The following quantity of copper concentrate shall be available for toll
             smelting:

             From 1st June 2010 to 31st March 2011.:

                        MCP copper concentrate     -   18,500 WMT

             The tendered quantity shall normally be made available till 31st March 2011.
             This period can be extended upto 15th May 2011 by HCL.

3.0   CHEMICAL COMPOSITION & PHYSICAL SPECIFICATION:

             The indicative chemical composition and physical specifications of copper
             concentrate will be as follows:

             A. Chemical Composition (on dry basis):

                                     MCP Copper concentrate
                   1    Copper       25 – 28%
                   2    Iron         27 - 31%
                   3    Sulphur      28 – 32 %
                   4    Insolubles    12 % max.
                   5    Selenium     Less than 100 ppm
                   6    Tellurium    Less than 100 ppm
                   7    Lead         Less than 400 ppm
                   8    Zinc         Less than 1000 ppm
                   9    Nickel       Less than 250 ppm
                   10   Gold         1 – 3 ppm
                   11   Silver       50 – 80 ppm


            B. PHYSICAL SPECIFICATIONS:

             MCP Copper concentrate

              i)        Size     : Minimum 50% retained on 350 mesh
             ii)        Moisture : 8 - 11 %

4.0   RECOVERY OF METALS:

      COPPER : The contractor shall return 96.5% of the copper content in the MCP
                copper concentrate, subject to minimum deduction of 1 unit, in
                                             2
                   the form of LME Grade „A‟ copper cathodes.
.
      SILVER:      The contractor shall pay as follows:

                   If silver content is less than
                   30 grams/DMT                     -       No payment

                   If silver content is equal to or
                   greater than 30 grams/DMT        -       90% of the full silver content.

      GOLD:         The contractor shall pay as follows:
                     If gold content is

                     Less than 1 gram               -       No payment

                     Equal to or Greater than
                     1 gram/DMT                     -       100% payable subject
                                                            to minimum deduction
                                                            of 1 gram/DMT

5.0   INSTRUCTIONS TO THE BIDDERS:

      i.      The bidders are to submit their bids in sealed envelopes only.

      ii.     The technocommercial bid along with Bid bond are to be put in one envelope
              and duly sealed. The price bid is to be put in another envelope and duly sealed.
              The two separate envelopes(technocommercial and price envelope) should be
              put in a third envelope and duly sealed. All the envelopes should mention the
              tender no. and date.

      iii.    The tender document has to be signed and stamped on all pages and submitted
              along with the technocommercial bid.

      iv.     No financial details/price should be mentioned in the technocommercial bid. If
              any price reference is mentioned in the technocommercial bid, HCL shall have
              the right to reject the offer, without assigning any reason.

      v.      No conditional offer shall be accepted.

      vi.     The price terms are to be mentioned in figures and also in words. If there is
              any discrepancy in quoted figure, then HCL shall consider the price quoted in
              words.

      vii.    The bidders may do their own due diligence on applicability of taxes(Customs,
              Excise duty etc.) in respect of tolling of copper concentrate overseas.

      viii.   The full quantity will be given to the lowest bidder.

      ix.     Quotation by the bidder should be for the full quantity.

      x.      In case price of two parties are same, the contract for the full quantity shall be
              awarded on the basis of draw of lots.
5.0   TERMS AND CONDITIONS:

      The tender for toll smelting and refining of Copper concentrate shall be governed by
      the following terms and conditions:

                                               3
5.1   DELIVERY OF           COPPER        CONCENTRATE            &   RECEIPT        OF
      CATHODES:

      The contractor shall lift the quantity of copper concentrate ex-MCP Works
      scheduled for the month, within 30 days from the date of readiness of material,
      as shall be communicated by HCL, through their own arrangements, and
      deliver returnable Copper cathodes(conforming to LME Grade „A‟) after
      conversion, to HCL‟s TCP unit.

      The transportation of Copper concentrate from MCP works to their smelting
      unit, incl. its handling/clearing at the Indian Port at Kandla in case of export,
      and delivery of returnable copper cathodes at TCP shall be within the scope of
      work of the contractor at his own cost. However, at the option of the
      contractor, services of HCL‟s transporters may be extended to the contractor
      on reimbursement of costs as indicated below.:

        From        To            In-land                  Port    handling     /
                                  transportation           clearing / stevedoring
                                  charges incl. loading    charges
                                  &           unloading    (Rs/WMT)
                                  (Rs/WMT)
        MCP         Kandla        2850                     175
        MCP         Dahej         2750                     -
        MCP         Tuticorin     3200                     -
        JNPT        TCP             785                       505


5.2   WEIGHMENT, SAMPLING, SAMPLE PREPARATION, MOISTURE
      DETERMINATION AND ASSAYING:

5.3   The weighment of Copper concentrate done at MCP Works shall be final and
      binding on both the parties. However, the contractor may depute his
      authorized representative at MCP for witnessing the weighment.

5.4   The checking and calibration of the weighbridge, supervision of weighment,
      sampling, sample preparation and moisture determination shall be performed
      at MCP Works under the supervision of an internationally reputed independent
      agency, selected from the panel of assayers given in clause no. 6.0, mutually
      acceptable to both HCL and the contractor.

      The cost of engaging such a supervisory agency including courier charges for
      dispatch of samples shall be shared equally by HCL and the contractor.
      However, HCL shall award the work to the mutually accepted assayer and
      provide a copy of the contract immediately on appointment to the contractor.

5.5   The dry weight arrived at from the wet weight of copper concentrate and
      moisture determined as above shall be final.

5.6   The samples shall be prepared in three parts for each lot. A lot is defined as
      500 WMT+/-10%. However for the total despatches in a month, the assay
      figures shall be compiled for every 500 WMT+/-10% and weighted average
      worked out to arrive at a single copper, gold and silver figure for the total
      dispatch for a particular month. From the samples so prepared for each lot,
      sealed samples shall be provided, one to HCL, one to the contractor and one
                                      4
             shall be held in reserve by the independent agency for umpiring purpose, if
             need arises. With the samples given to HCL and the contractor, both shall
             carry out assays independently, and results of such assays shall be exchanged
             simultaneously by cross-mailing or any other mutually acceptable method,
             within 30 days from the date of dispatch of samples.

      5.7    If the contractor‟s and HCL‟s assay results are within the Splitting Limits, the
             average of the two assays shall be used for the final settlement. If the results
             are beyond the Splitting Limits, umpire assays shall be carried out by an
             independent agency, from the panel of assayers given below, mutually
             acceptable to both HCL and the contractor.

      5.8    SPLITTING LIMITS:

             The splitting limits shall be as follows:
                             Copper           0.5%
                             Gold            0.5 ppm
                             Silver          20 ppm

      5.9    In case the umpire assay falls between the results of the two parties or
             coincide with either, the arithmetical mean of the umpire assay and the assay
             which is nearer to the umpire assay, shall be taken as the agreed assay.
             Otherwise the middle assay of the three assays shall be accepted as final.
             Should the umpire assay fall within the assays of the two parties and be the
             exact mean of the two, then the umpire assay shall be accepted as the final
             assay.

      5.10   Cost of the umpire assay will be borne by the party whose assays are farther
             from the umpire assay. The cost will be shared equally by both parties when
             the umpire assay is the exact mean of the assay of the two parties. The umpire
             shall be nominated from the panel of Assayers given in Clause 6.0 below by
             mutual consent. However, HCL shall award the work to the mutually accepted
             umpire and provide a copy of the contract immediately on appointment to the
             contractor. The courier charges for sending the samples to umpire shall be
             shared equally by both the parties.

6.0   PANEL OF ASSAYERS:

      (a)    Laboratory Services B V International, Rotterdam.

      (b)    Alex Stewart Assayers Ltd., U.K.

      (c)    Inspectorate International Ltd., UK

      (d)    Alfred H. Knight, UK

      (e)    Any other internationally reputed agency mutually acceptable to HCL
             and the contractor.

7.0   RETURN OF COPPER : The returnable copper shall be 96.5% of the copper
      content in MCP copper concentrate, subject to minimum deduction of 1 unit, in
      the form of LME Grade ‘A’ copper cathodes.


                                              5
7.1   Schedule for return of metals :

      Copper cathodes

      90 % (ninety percent) of provisional returnable metal against each lot, to be
      returned at Taloja Copper Project, Taloja within 25 (twenty five) days from
      the dispatch of Copper concentrate, as evidenced by the date of last Delivery
      challan cum invoice at MCP. However, HCL shall allow the successful
      contractor additional 15 days for the returnable metal, but HCL shall
      load interest as per SBI PLR, for this additional 15 days or pro-rata,
      during evaluation of the price bid of those parties who quote more than
      25 days as their schedule of return of cathodes.

      Balance 10% of metal against each lot to be returned after final settlement of
      assays and weights within 60 days from the dispatch of Copper concentrate as
      evidenced by the date of last Delivery challan cum invoice at MCP, if not
      referred to umpire.

      If the samples have to be sent to the umpire, the balance copper to be returned
      after final settlement of assays and weights within 90 days from the dispatch
      of Copper concentrate as evidenced by the date of last Delivery challan cum
      invoice at MCP.

      The returnable metal should be delivered at HCL‟s Works at

      Taloja Copper Project
      Plot No. E-33 to E-36
      MIDC Area, P.O. Taloja
      Dist: Raigad
      Maharashtra-410208.

      The weight of delivered Copper cathodes (conforming to LME Grade „A‟) as
      recorded at Taloja Copper Project (TCP) shall be final, subject to weigh scale
      variation up to 0.1%. TCP shall issue the acceptance certificate accordingly.

      For any shortages, the contractor shall compensate the same by supplying
      additional material, to the extent of short receipted quantity, at TCP.

      The weight of receipted Copper cathodes as recorded at TCP shall be final and
      binding on both the parties.

      HCL shall reject the material, if the quality of the material is found not
      conforming to LME Grade A, and the contractor shall have to make own
      arrangements for transportation of rejected material from TCP to their works
      and simultaneously, deliver copper cathodes of right quality at TCP, as
      replacement.

      No detention charges will be payable by HCL.

      Anode Slime (containing Gold & Silver)

       The contractor shall retain Anode Slime generated during processing of
      copper concentrate. However, the value of payable Gold and Silver, contained
      in the Anode Slime, shall be adjusted from the tolling charges, as specified in
      details in Clause 9.0 & 9.1.
      Other wastes



                                     6
             The contractor shall retain wastes like slag etc., if any, generated during
             processing of Copper concentrate in their smelting unit.

      7.2    Form and Quality of returnable metals:

             The quality of Copper cathodes shall conform to LME Grade "A" standard in
             all respect including packaging in bundles of 2.0 MT to 2.5 MT each
             approximately.

             The surface of Copper cathodes shall be reasonably smooth and free from
             nodules or any protrusions. Edges of the cathodes should not be ropey.
             Hydrogen content in cathode should be less than 2 ppm and Oxygen content
             should be less than 70 ppm.

             Size : a) Length : Minimum 0.8 m to maximum 1.0 m
                    b) Width : Minimum 0.8 m to maximum 1.0 m
                    c) Thickness : Minimum 5 mm to maximum 20 mm

             Specification : Conforming to LME Grade ‘A’.

             The contractor shall provide guarantee certificate for each lot of Copper
             cathodes dispatched stating that the quality of Copper cathode supplied
             conforms to LME Grade “A” standards.

             The contractor shall also provide a separate quality certificate against each lot
             of Copper cathode dispatched. This certificate should be issued either by the
             contractor (if facilities for checking of quality of cathodes is available within
             their works) or should be issued by a LME registered surveyor.

      7.3    Guarantee of Quality

             After receipt of Copper cathodes at TCP, if any of the Copper cathode(s) is
             found defective, the contractor shall make free replacement of the rejected
             Copper cathodes. However, the contractor shall have the right to inspect the
             rejected material.

8.0   INSURANCE :

      Necessary insurance coverage for outbound Copper concentrate from ex-MCP works
      to the contractor‟s works and for inbound returnable Copper cathodes to HCL‟s works
      at TCP shall be arranged by the contractor.

9.0   PROVISIONAL PAYMENT:

      HCL shall open a Counter Guarantee(in the form of LC/Bank Guarantee), for 110%
      of net tolling charges i.e., after adjustment of the returnable value for Gold and
      Silver as detailed in Clause 9.1 for a quantity of 5000 WMT, in a format similar
      to the format of Counter Guarantee bond as attached herewith, as a security and
      all payments by HCL shall be effected through e-payment mode.

      Payment for 100% of the net toll charges of the provisional returnable copper less the
      provisional value of gold and silver against the following documents shall be made
                                             7
       within 4 working days from provisional invoice date(excluding Saturday, Sunday and
       holidays) through RTGS transfer to nominated bank account of the contractor, against
       each lot.

        (a) HCL‟s weight certificate in respect of returned copper.
        (b) Provisional Invoice as computed at Clause 9.1.
        (c) Packing list.

9.1    Provisional invoice shall be calculated as follows :

       The provisional value of Gold and Silver in Copper concentrate offered, shall be
       determined on the basis of LME average London Bullion Daily price for Gold (Mean
       of the morning and evening prices), and average Daily London Bullion Spot Prices for
       Silver, applicable for the 2nd fortnight average of the previous month of dispatch of
       each lot (date of last challan of each lot) shall be taken. Source for these prices shall
       be the relevant Metal Bulletin publication.

       The provisional net metal content for Copper, Gold and Silver will be arrived at by
       taking middle values of the ranges given for Copper, Gold and Silver under the
       clause 3.0 (Chemical specification) after allowing for Recoveries(as mentioned under
       Clause 4.0).

       Provisional invoice value shall be 100% of the Tolling charges quoted by the bidder
       less net value of Gold and Silver.

10.0   FINAL PAYMENT:

       The full and final value of the tolling charges, after adjustment for Gold and Silver
       value, as per the final invoice drawn, based on final weights and assays and computed
       on the basis as detailed in Clause 9.1 for the QP as per Clause 13.0, liquidated
       damages if any, after necessary adjustment for assayer and umpire charges, if any,
       less provisional payment received as per clause 9.0, shall also be drawn against the
       same LC after receipt of the full returnable copper by HCL against submission of the
       documents mentioned below and on prior acceptance of the documents by HCL.

       In the event of the amount drawn against the provisional invoice, being greater than
       the amount actually due as per Final Invoice, the overdrawn amount shall have to be
       returned by the contractor to HCL within 7(seven) working days.

       (a)    HCL‟s weight certificate in respect of final returned metal.
       (b)    Final Invoice for balance returnable metal as detailed above.
       (c)    Packing list.
       (d)    HCL's certificate for liquidated damages, if any.

       Payment of surveyor and umpire charges shall be settled separately/directly with the
       agency.

11.0   COUNTER GUARANTEE BOND:

       The contractor shall provide HCL with a Counter Guarantee en-cashable at the
       counters of SBI, CAG Branch, Kolkata, in the form of a Bank Guarantee on any of
       the Scheduled commercial bank in the enclosed format (Annexure No. III),
       guaranteeing return of the entire quantity of accountable metals in the form given in
       Clause-7.3 as per agreed delivery schedule. The Counter guarantee shall be
       submitted within seven days of issue of Letter of Intent.

                                               8
       The value of the counter guarantee shall be equal to 110% of the value of the Counter
       Guarantee invoice value as detailed below. The invoice shall be made for a quantity
       of 5,000 WMT. A Proforma Invoice will be provided by HCL to facilitate opening of
       Counter Guarantee. The counter guarantee shall remain valid for 18 months from the
       date of issue of LOI and shall be operative immediately on receipt of the following
       documents from HCL, by the bank at which it is en-cashable,:

       (a)     Delivery challan cum invoices evidencing dispatch of total quantity of copper
               Concentrate from MCP works to contractor‟s works.

       (b)     HCL's original invoice, drawn for 100% of the value of goods showing value
               of returnable metal.

       The invoice shall be calculated as follows:

       The value of the payable metals for the purpose of C.G. bond, namely, Copper, Gold
       and Silver in Copper concentrate offered, will be determined on the basis of LME
       average Cash Settlement Prices (CSP) for Electrolytic Copper Cathodes of LME
       Grade-A, average London Bullion Daily price for Gold (Mean of the morning and
       evening prices), and average Daily London Bullion Spot Prices for Silver, applicable
       for the ten LME Working days prior to the date of issue of Letter of Intent.
       Source for these prices will be the relevant Metal Bulletin publication.

       The payable metal content for the computation of the metal value will be arrived at by
       taking middle values of the ranges given for Copper, Gold and Silver under the
       clause 3 (Chemical specification). The weight of the Copper concentrate will be the
       total quantity tendered for tolling of each variety of copper concentrate.

       Net value of payable metals for C.G. bond will be the aggregate of the values of the
       payable metals determined as above.

       For conversion of US Dollars to Indian Rupees, the RBI Reference rate averaged out
       for the ten LME Working days prior to the date of issue of Letter of Intent will
       be taken.
       The C.G. bond shall be en-cashable by HCL at the counters of SBI-CAG branch,
       Kolkata without demur or reference to the opening bank/successful bidder.

12.0    PERFORMANCE GUARANTEE BOND :

       The successful bidder shall furnish a performance guarantee bond in the form of a
       Stand by Letter of Credit in the format as per Annexure-IV, for an amount
       equivalent to 10% of the Counter Guarantee value.

       This Performance Guarantee Bond (PG) shall be opened through any of the scheduled
       commercial Banks, and shall be advised and confirmed through State Bank of India,
       Corporate Accounts Group Branch, Kolkata. This PG shall be en-cashable by HCL at
       the counters of State Bank of India, Corporate Accounts Group Branch, Kolkata
       without demur or reference to the opening Bank/successful bidder. The decision of
       HCL in this regard shall be final and binding and cannot be challenged in any court.

       The successful bidder should submit this performance guarantee bond within
       fourteen days of issue of LOI by HCL. The Performance Guarantee shall be valid
       for 18 months from the date of issue of LOI.


                                               9
13.0   QUOTATIONAL PERIOD(QP):

       Quotational period (QP), for all payable metal i.e. Silver and Gold, will be the
       calendar month following the date of last delivery challan cum invoice of MCP of
       Copper concentrate. In other words QP=M+1, where M is the month of delivery of
       Copper concentrate as evidenced by the date of last delivery challan cum invoice. For
       conversion of US Dollars to Indian Rupees, the RBI Reference Rate averaged over the
       final QP (M+1) shall be taken.

       For QP purpose:

       a) For movement by rake.

                  1 lot = 1rake containing 90 containers.

                  1 container – 27.5 WMT

                  However, even less than 90 containers can also be loaded in one rake. In
                  such a case, the no. of containers loaded in 1 rake shall be considered as 1
                  lot.

                  For a rake containing 90 containers, 1 lot shall be as follows:

                  1 lot = 1 rake = 27.5 WMT X 90 = 2475 WMT+/-5%.

       b) For movement by road

              1 lot shall be equal to 500 WMT+/-10%

14.0   LIQUIDATED DAMAGES (L.D.):

       Liquidated Damages shall be levied towards loss interest amount for the un-lifted
       quantity of copper concentrate by the successful bidder, beyond the schedule lifting
       period, as would be communicated by HCL every month. LD, if any, shall be
       computed every month or pro-rata thereof, on the basis of the following:

       a) The prevailing State Bank of India(SBI) Prime Lending rate(PLR) during the
          month of lifting.
       b) The price of MIC, of the concerning variety, as declared by HCL for the previous
          month of dispatch.

       In case of delay in the delivery of accountable metals beyond the period stipulated in
       Clause 7.1, Liquidated Damages shall be levied on daily basis, if any, considering the
       following:

       a) The interest rate, as declared in HCL price circular.
       b) The price of full Copper cathodes, as declared by HCL in price circular during the
          month.

       For computation of Liquidated Damages, Sundays and National holidays shall be
       excluded.

15.0   BID BOND:

       A Bid Bond for Rs.50,00,000/- (Rupees Fifty Lakhs) (or equivalent US$ 1,00,000)
       should accompany offers. The Bid Bond shall be in the following form:

                                              10
       "A demand draft of Rs.50,00,000/- payable on any scheduled Bank in India/ Banker's
       cheque/Pay Order or a Banker's Guarantee, in the enclosed format (Annexure-II)
       advised by/through "State Bank in India, CAG Branch”, Kolkata.

       Offers should be accompanied either by original Bid Bond or a proof of having
       opened the Bid Bond prior to the date and time of opening of Techno - Commercial
       Bid. In case Bid Bond is in the form of a Bank Guarantee, the same should
       accompany the bid in original or a proof that the same has been opened by the
       bidders prior to the date and time of opening of Techno-commercial bid. However,
       the original Bid Bond opened prior to the date and time of opening of Techno-
       Commercial Bid advised through "State Bank in India, CAG Branch”, Kolkata Bank
       must reach HCL within two working days of opening of the Technical Bid,
       failing which the offer will be rejected. Incase the Bid Bond is in the form of
       Demand Draft, the same will have to be received in Original. Bid Bond/Bank
       Guarantee shall be valid for 120 days from the date of opening of Technical Bid.

       HCL reserves the right to encash the bid bond submitted by the bidders in the
       occurrence of the following cases :-

       a) The bidder(s) withdraws his offer within its validity period.

       b) The successful bidder fails to accept the LOI/contract as per offer against this
          tender and terms agreed with HCL.

       c) The successful bidder fails to open the Counter Guarantee Bond/Performance
          Guarantee Bond as per the terms agreed with HCL.

       Offers received without the stipulated Bid Bond shall summarily be rejected. Bid
       Bond shall be returned to the unsuccessful bidders after finalization of the tender but
       not later than 120 days from the date of opening of Part-I (Technical) bid of the
       tender. Bid Bond shall be returned to the successful bidder after they have furnished
       performance guarantee bond.

16.0 TAXES AND DUTIES :

       Currently there are no applicable tax/duties to be levied on tolling of copper
       concentrates. However, in future, if any taxes and duties become applicable on tolling
       of copper concentrates then HCL shall reimburse to Birla Copper such taxes & duties
       in full against submission of proof of payment of such duties/taxes/charges by Birla
       Copper.

       Income tax, as applicable from time to time, shall be deducted at source on the gross
       tolling charges. Other taxes, if any, will also be deducted from the gross tolling
       charges.

       Service Tax, if any, shall be initially borne by the contractor which will be reimbursed
       by HCL, on production of relevant Cenvatable invoice by the contractor.

17.0   FORCE MAJEURE:
       If HCL or the contractor is prevented from performing his duties under the contract by
       reasons of act of God, strikes/lockouts, labour disputes, fire, accident and any other
       cause beyond the control of the parties preventing or hindering either of them from

                                              11
       discharging their respective obligations under the contract, performance of the
       contract shall be postponed till the force majeure ceases to exist. Upon termination of
       that force majeure, performance of the contract will be resumed at the specified terms
       and performance of the parties‟ duties will be extended by a period equal to the time
       during which the suspension was in effect.

       Should suspension remain in effect for a period more than ninety days from the date,
       either party, delivered to the other, written notice supported by evidence regarding
       existence of that Force Majeure, shall have the right to cancel the contract. Notice of
       suspension by either party shall not entitle him to suspend deliveries or payments,
       except to the extent that such interference affects such deliveries or payments.

18.0   ARBITRATION:

       Any disputes or differences whatsoever arising between the parties out of, or relating
       to, the construction, meaning and operation or effect of the contract or the breach
       thereof shall be settled through Arbitration in India by a Sole Arbitrator from the
       panel of the Indian Council of Arbitration and in accordance with the Rules under the
       provision of Arbitration and Conciliation Act 1996 and all statutory modification
       thereof shall be governed by such arbitration proceedings.

       The arbitration will be conducted in English language and Indian law will be
       applicable. The venue of such arbitration shall be Kolkata only.

19.0   TERMINATION:

       HCL reserves the right to terminate the contract either in full or in part by giving 15
       days written notice to the contractor, if HCL deems that the performance of the
       contract by the successful bidder is unsatisfactory. Performance of the contract shall
       be unsatisfactory under any one of the following occurrences: -

   (a) The contractor does not open a Counter guarantee bond within seven (7) days of
       issue of LOI.

   (b) The contractor fails to submit the performance guarantee bond within fourteen (14)
       days of issue of LOI.

   (c) Notwithstanding above, if there is a repeated failure on the part of the contractor in
       executing the contract as per HCL‟s schedule of lifting, HCL shall have the right to
       terminate the contract, without assigning any reason thereof

20.0   PLACEMENT OF TRUCKS :

       The contractor shall place the trucks/containerized trailers for loading during the
       working hours of the General Shift from 8 AM to 5 PM. However, the empty
       trucks/trailers shall make entry at the main gate before 2 PM. Loading shall be
       restricted to working days only.

21.0   DEFINITION:

       (a) The term "Month" shall mean calendar month.
       (b) The term "Ounce" shall mean Troy Ounce of 31.1035 Grams.
       (c) The term "PPM" shall mean parts per million.
       (d) The term "Metric Tonne" means a tonne of 2204.62 pounds weight.
       (e) The term "DMT" means Dry Metric Tonne.
       (f) The term "WMT" means Wet Metric Tonne.
       (g) All dollars and cents are in the currency of the United States of America.
       (h) Hindustan Copper Limited has been mentioned as „HCL‟ in the tender.

                                              12
       (i) Parties submitting their offer and before finalization shall be known as the „Bidder‟
       (j) The successful bidder shall be known as the “The contractor”.
       (k) The copper concentrate of KCC origin shall be known as „KCC copper
            concentrate‟.
       (l) The copper concentrate of MCP origin shall be known as „MCP copper
            concentrate‟.

22.0   JURISDICTION OF COURT:

       Any cause of action and dispute arising out of this tender and contract shall come
       under the Sole jurisdiction of High Court, Calcutta.

23.0   SUBMISSION OF TENDERS:

        Tenders should be submitted in two separate sealed envelopes as follows: -

   (i) Part-I Bid along with Bid Bond/Bank Guarantee in one sealed envelope with
       "TECHNICAL BID & BID BOND - Tender for Toll Smelting & Refining of Copper
       concentrate vide Tender No. HCL/HO/MATLS/CONC/TOLLING/2010-11
       dated_11.05.2010" super scribed on top of the envelope. The bidders must attach one
       photocopy of the tender document duly signed as acceptance of tender terms and
       conditions along with techno-commercial bid.

       Any price terms mentioned in the TECHNICAL BID shall be summarily rejected
       by HCL, without assigning any reason.

   (ii) Part-II Bid in another sealed envelope with “PRICE BID - Tender for Toll Smelting &
        Refining         of       Copper        concentrate        vide      Tender     No.
        HCL/HO/MATLS/CONC/TOLLING/2010-11 dated 11.05.2010" super scribed on top
        of the envelope. The price is to be quoted as per format given at Annexure-V.

       The bidders are required to quote their tolling charges in Indian Rupees per tonne of
       returnable metal, for MCP Copper concentrate, considering the quantities (mentioned
       at Clause 2.2) and recoveries (mentioned at Clause 4.0). The tolling charges should be
       inclusive of transportation and handling charges.

       Currently there are no applicable tax/duties to be levied on tolling of copper
       concentrates. However, in future, if any taxes and duties become applicable on tolling
       of copper concentrates then HCL shall reimburse to Birla Copper such taxes & duties
       in full against submission of proof of payment of such duties/taxes/charges by Birla
       Copper.

       Income tax, as applicable from time to time, shall be deducted at source on the gross
       tolling charges. Other taxes, if any, will also be deducted from the gross tolling
       charges.

       Service Tax, if any, shall be initially borne by the contractor which will be reimbursed
       by HCL, on production of relevant Cenvatable invoice by the contractor.

  (iii) The above two sealed envelopes should be put in another bigger sealed envelope,
        super scribing on its top “Tender No. HCL/HO/MATLS/CONC/TOLLING/2010-11
        dated 11.05.2010” along with due date of opening, and should be addressed to the
        following office:
         DY.GENERAL MANAGER ( MATERIALS & CONTRACTS)
         HINDUSTAN COPPER LIMITED
         TAMRA BHAVAN

                                              13
          1, ASHUTOSH CHOWDHURY AVENUE
          KOLKATA - 700 019

  (iv) The tenders may be sent thro‟ Regd. Post or Courier at the above address, so as to
      reach on or before the due date & time of submission. The tenders, if delivered by
      hand, should be dropped in the tender box located in the general lobby at 3rd floor of
      Tamra Bhavan.

     OFFERS RECEIVED IN ANY FORM OTHER THAN AS SPECIFIED ABOVE
     SHALL BE IGNORED.


24.0 COMMERCIAL BID EVALUATION PROCEDURE:

     The standing of the bidders shall be decided on the basis of toll charges (in Rs per MT
     of returnable metal) on ex-Works basis, and the bidder quoting the lowest toll charges
     shall be declared as the winner.

     During evaluation of the price bids, the following points shall be considered

     i.      The foreign bidders can submit their quotation on FOB, Kandla basis and
             return of cathodes on CIF, JNPT, Mumbai basis. However, the following
             expenses shall be loaded during evaluation:

             -   Loading at HCL works (MCP) and transportation from HCL works to
                 Load Port (Kandla, India)- Rs. 2850/- per WMT
             -   All CHA expenses at Kandla Port – Rs. 175/- per WMT
             -   0.5% material handling loss at Load Port
             -   All CHA expenses at JNPT Port, Mumbai- Rs. 505/- per MT
             -   Transportation from JNPT, Mumbai to TCP and unloading at TCP _ Rs.
                 785/- per MT.
             -   Interest as per SBI PLR(presently 11.75% p.a.) for return of cathodes
                 beyond 30 days from the dispatch of Copper concentrate, and up to 60
                 days.

26.0 LAST DATE OF SUBMISSION : Up to 1430 hours of 01.06.2010.

27.0 OPENING OF TENDERS :

     (A)     Technical Bids (Part-I) of tenders shall be opened at 1500 Hours on
             01.06.2010, in the presence of authorised representatives of the bidders, who
             may be present. Only one authorized representative per bidder with letter of
             authority from the bidder on his letterhead shall be permitted to attend the
             tender opening.

     (B)     Price Bids of only those bidders, whose offers are found techno-commercially
             acceptable to HCL, may be opened in the presence of authorised
             representative of respective bidders, who wish to be present. The date and time
             of opening of the price bids shall be intimated separately to the bidders, whose
             offer is found techno-commercially acceptable.

28.0 VALIDITY :

      Offers should be kept valid for acceptance for 120 days from the date of opening of
     Technical Bid (Part-I) i.e, 1700 Hours of 01.10.2.010.

29.0 Hindustan Copper Limited reserves to themselves the right to reject any or all the
     tender (s) without assigning any reasons whatsoever or to divide Tender between more

                                            14
      than one Tender(s) or reduce the tendered quantity at the sole discretion of HCL. All
      late/incomplete offers are liable for rejection.



(A K Dasgupta)
Dy. General Manager (Materials & Contracts)



We accept the above mentioned terms and conditions and submit our tender accordingly.

For ________________________________

Signature __________________________

Seal ______________________________




                                            15
                                                                                                      ANNEXURE- I


                              LOCATION MAP HCL OPERATING UNITS




                                                                   Indian Copper Complex (ICC)

Khetri Copper Complex (KCC)                                        State:         Jharkhand
                                                                   Facility:      Mining (underground),
                                                                                  Beneficiation, Smelting &
State:        Rajasthan
                                                                                  Refining
Facility:     Mining (underground),
              Beneficiation, Smelting &   Refining                 Product:       Copper cathode
Product:      copper cathode                                       Capacity:      18,500 tpa (cathode)
Capacity:     31,000 tpa (cathode)



                                                           KCC

                                                             MCP               Kolkata

                                                                       ICC                Corporate Office
                                                     TCP

Taloja Copper Project (TCP)                                                        Malanjkhand Copper Project (MCP)


State:        Maharashtra                                                          State:         Madhya Pradesh
Facility:     Continuous casting                                                   Facility:      Mining (opencast), Beneficiation
Product:      Copper wire rod                                                      Product:       Copper concentrate
Capacity:     60,000 tpa (CCR)                                                     Capacity:      20,000 tpa (MIC)




                                                           16
                                                                           ANNEXURE-II

                                F O R M A T F O R
                                     BID BOND

Dear Sirs,


M/s___________________________________________________(name and address of the
bidder) have submitted their Bid No.____________ dated ________ for the tolling of Copper
concentrate under your tender invitation No. _________ dated _________.

At the request of M/s (name and address of the bidder) we, (name and address of the Bank
issuing bid bond) herewith irrevocably undertake to pay you on first demand, irrespective of
the validity and the effects of the above mentioned Bid and waiving expressly all rights of
objection and defence arising from the said Bid, an amount of Rs. 50,00,000/- only (Rupees
Fifty lakhs only) (or equivalent US$ 1,00,000) upon receipt of your written and duly signed
request for payment and your written confirmation that M/s. (name and address of the bidder)
have not complied with the conditions of their Bid No._________ dated ________.

For the purpose of identification, your request for payment and your confirmation hereunder
have to be presented to us through M/s. State Bank of India, Corporate Accounts Group
Branch, Kolkata confirming that the signatures therein are binding for your Company.

Our indemnity is valid until ________ and expires in full and automatically if your written
request for payment and your written confirmation together with M/s. State Bank of India's -
Corporate Accounts Group branch, Kolkata confirmation of your signatures are not in our
possession on or before that date.




Yours truly,

(Name and address of the
Bank issuing bid bond)




                                            17
                                                                                ANNEXURE-III
              PROFORMA OF BANK GUARANTEE FOR SECURITY DEPOSIT
             (On non-judicial stamp paper of appropriate value)
To
Hindustan Copper Limited,
1, Ashutosh Chowdhury Avenue,
Tamra Bhawan,
Kolkata-700019.

Dear Sir,

M/s.-------------------------------------------------------     upon
being awarded the work of ---------------------------------- for
Hindustan Copper Limited at-----------------------------------------
-------------------- under tender/LOI/Work Order No.---------------
------------------------------------------approached us with the
request to furnish Hindustan Copper Limited at----------------------
--------------------------- a Bank Guarantee for Rs.----------------
------------------- only (Rupees------------------------------------
---- only) towards security deposit.      At their request and in
consideration of the promises we -----------------------------------
---------------------------------------   have    agreed    to  give
guarantee as hereinafter mentioned.

1. We-----------------------------------------------------hereby agree and undertake that if in your
opinion any default is made by the said M/s.----------------------in performing any of the terms
and/or conditions of the agreement or if in your opinion he commits any breach of agreement or
there is any demand by you against the said M/s.------------------------------------------
then on notice to us by you we shall on demand without demur and
without reference to the said M/s.----------------------------------
---------immediately pay to you, in any manner in which you may
direct, the said amount of                               Rs.-------------------only (Rupees-
---------------------------------------------------only)                                   or  such
portion thereof as may be demanded by you not exceeding the said sum
and as you may from time to time require. Our liability to pay is
not dependent or conditional on your proceeding against the said
M/s.---------------------------- and we shall be liable to pay the
aforesaid amount as and when demanded by you merely on a claim being
raised by you and even before any legal proceedings are taken
against the said M/s.-------------------------------------------.
2. You will have full liberty without reference to us and without
affecting this guarantee, postpone for any time or from time to time
the exercise of any of the powers and rights conferred on you under
the contract with the said M/s.-------------------------------------
---------------------------------and to enforce or to forbear from
endorsing any power or rights or by reason of time being given to
the said M/s.-------------------------------------------------------
-------------------which under law relating to sureties would but
for the provision have the effect of releasing us.
3. Your right to recover the said sum of Rs.-------------------only
(Rupees-------------------------------------------------from us in
manner aforesaid will not be affected or suspended by reason of the
fact that any dispute or disputes have been raised by the said M/s.-
--------------------------------------------------------------------
-------------and/or that any dispute or disputes are pending before
any officer, tribunal or court.

                                                18
4. Our guarantee herein contained shall not be determined or
affected by the liquidation or winding up of dissolution or change
or constitution or in solvency of the said M/s.---------------------
--------------------------------------------------but shall in all
respects and for all purposes be binding and operative until payment
of all money due to you in respect of such liability or liabilities.
5. Our liability under this guarantee is restricted to Rs.----------
-----------only (Rupees-------------------------------only).     Our
guarantee shall be valid upto------------ and we are liable to pay
the guaranteed amount or any part thereof under the Bank Guarantee
only and only if you serve upon us a claim or demand or a
suit/action to enforce a claim under guarantee is filed against us
on or before----------------------
6.   We have power to issue this guarantee in your favour under
Memorandum and Articles of Association and the undersigned has full
power to do under the power of attorney dated ----------------------
granted to him by the Bank.

Yours faithfully,

---------------------------------
---------------------------------
--------------------------------- Bank

(Signature of a person duly authorised to sign on behalf of the
Bank).




                                 19
                                                                        ANNEXURE-IV
                           STAND BY LETTER OF CREDIT
                        (PERFORMANCE GUARANTEE BOND)

Please open an irrevocable and confirm without recourse to drawer documentary letter of
credit as follows:-

Opening Bank :



Applicant:




Beneficiary:

Hindustan Copper Limited
„TAMRA BHAVAN‟
1, Ashutosh Chowdhury Avenue
Kolkata-700 019

Advising Bank and Negotiating Bank : State Bank of India, Corporate Accounts Group
                    Branch, Kolkata


Confirming Bank : State Bank of India, Corporate Accounts Group Branch, Kolkata

Amount : Indian rupees(INR) ________________

Date of Expiry :

Place of Expiry : At the counters of State Bank of India, Corporate Accounts Group Branch,
                        Kolkata

WHEREAS under Contract No.___________________ between the applicant and the
beneficiary, for toll smelting of copper slag concentrate, the applicant is required to furnish
the beneficiary with a irrevocable without recourse Standby Letter of Credit for INR
_________ being 10% of invoice value to ensure performance of all its obligations under the
said contract to the beneficiary‟s satisfaction. AND WHEREAS we (Name of the Issuing
Bank) establish this credit on the following terms :-

Credit available with Negotiating Bank against presentation of the following document on or
before the expiry date :

A drawing certificate stating that the applicant has not fulfilled its obligations under the
contract signed by the beneficiary‟s authorized signatory. Provided however that the
beneficiary shall not be permitted to effect more than three drawings hereunder and the total
of such drawings must not exceed INR _______ .

                                              20
                                Reimbursement Instructions

Upon receipt of your duly tested telex/swift confirming having received the above drawing
certificate, we undertake to effect payment as per your instructions value on the next working
day after receipt of such tested telex/swift without demur, unconditional, without reference to
the applicant and without recourse.

                                       Other Conditions

       (i)     This credit shall not be affected by :-

       (ii)    Any change in the constitution of the applicant and/or Bank and/or the
               beneficiary and/or

   (ii) Grant of any time or forbearance or indulgence of any kind by the beneficiary to the
         applicant under the contract between them and/or

   (iii) Any change in the contract between the applicant and the beneficiary.

   (iv) Any dispute or legal proceeding between the beneficiary and the applicant and/or the
         Banks.

       (iii)   Premature termination of the contract between the applicant and the
               beneficiary.

2. Notwithstanding anything contained herein before, the Bank‟s liability under this standby
   Letter of Credit is restricted to INR_____________ (in words) ___________________
   and this Standby Letter of Credit shall remain valid and in force up to          and if no
   claim is received by the confirming/negotiating Banks (name and address) on or before
   the expiry date of the Standby Letter of Credit all rights hereunder will cease.

THIS DOCUMENTARY CREDIT IS SUBJECT TO UNIFORM CUSTOMS AND
PRACTICE FOR DOCUMENTARY CREDITS, (1993 REVISION) PUBLICATION
NO.500.




                                               21
                                                                 ANNEXURE-V

HCL/HO/MATLS/CONC/TOLLING/2010-11



                             PRICE BID FORMAT



             Particulars                       MCP Copper
                                               concentrate


Tolling charges in Indian Rupees
per tonne of returnable metal, based
on recoveries indicated in Clause No.
3.0 of Part-A of tender, inclusive of
transportation     and       handling
expenses.
Currently there are no applicable
tax/duties to be levied on tolling of
copper concentrates. However, in
future, if any taxes and duties
become applicable on tolling of
copper concentrates then contractor
has to absorb the same.

Income tax, as applicable from time
to time, shall be deducted at source
on the gross tolling charges. Other
taxes, if any, will also be deducted
from the gross tolling charges.

Service Tax, if any, shall be initially
borne by the contractor which will be
reimbursed by HCL, on production
of relevant Cenvatable invoice by the
contractor.


                                      Name, Address and Signature of the Bidder




                                          22

				
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