PRICE ADJUSTMENT
(a) Calorific Adjustment: If the Conclusive Calorific Value (“CCV”) calculated as an Average Quality value is different from the Base Calorific Value (“BCV”) as specified and agreed upon for the Transaction, yet CCV is still within the Rejection Limit, then the Contract Price mentioned in item 5 for each Shipment shall be adjusted accordingly:
Actual Price = (Contract Price) x (CCV/BCV)
The Base Calorific Value will be taken as 6,000 kcal/kg net as received for the price correction purposes.
Where Average Quality values for the parameters of ash (as received basis), moisture, volatile matter (dry basis), and Sulphur (dry basis), are within the penalty range mentioned in item 4 but still within the Rejection Limits, the following price corrections shall be applied, after which the price is considered to be final and binding for the Parties.
(b) Moisture Adjustment: If the Conclusive Moisture Content (“CMC”) calculated as an Average Quality value is above SMC as specified and agreed upon for the Transaction, yet CMC is still within the Rejection Limit, then the Price Adjustment per metric ton of Coal will be;
Price Adjustment = (Actual Price) x ((CMC — SMC)/100)
SMC is Specified Moisture Content and will be taken as above 10.00% as detailed in item 4.
(c) Ash Adjustment: If the Conclusive Ash Content (“CAC”) calculated as an Average Quality value is above SMC as specified and agreed upon for the Transaction, yet CAC is still within the Rejection Limit, then the Price Adjustment per metric ton of Coal will be;
Price Adjustment = (Actual price) x ((CAC — SAC)/100)
SAC is Specified Ash Content and will be taken as above 12.00% as detailed in item 4.
(d) Sulphur Adjustment: If the Conclusive Sulphur Content (“CSC”) calculated as an Average Quality value is greater than SSC (dry basis) as specified and agreed upon for the Transaction, yet CSC is still within the Rejection Limit, then the Price Adjustment per metric tonne of Coal will be;
Price Adjustment = (Actual Price) x ((CSC — SSC) *50) / 100)
SSC is Specified Sulphur Content and will be taken as 0.60% as detailed in in item 4.
(e) HGI: If HGI is less than %50 and above %60, this shipment will be rejected.
For invoicing purposes, the final price per metric ton shall be calculated as the Actual Price less the quality Price Adjustment.
