Contract Evaluation

Your company can benefit from our extensive expertise in developing contract strategies for the mining industry. As experienced mining consultants, BOYD's philosophy focuses on developing innovative contracting methods necessary to remain competitive in the coal mining and mineral industries while maintaining a fair and balanced relationship between buyer and seller.

Planning an appropriate negotiating strategy and formulating techniques for arriving at mutually-advantageous agreements are the core of the contracting process. Coal contracting strategies continue to evolve as utility deregulation, coal tolling agreements, and electricity futures assume more importance.

You will be provided with strategies and contract terms and conditions tailored to your goals and requirements. As mining consultants, we will assist you throughout the negotiating process to reach a contract agreement that leads to a mutually beneficial business relationship between the parties. Contract evaluation services include:

• Coal Price or Mineral Price Adjustment Methods
• Cost Pass-Through Provisions-Mineral or Coal Contract
• Indices/Price Allocation to Indices
• Risk Allocation-Mineral or Coal Contract
• Contract Options, Futures
• Coal, Gas, Electricity Interrelation
• Strategic Alliances, Joint Ventures
• Contract Performance Guarantees
• Mineral or Coal Contract Enforceability
• Mineral or Coal Contract Quality Specifications
• Mineral or Coal Contract Premiums, Penalties, Terminations
• Force Majeure-Mineral or Coal Contracts
• Regulatory Compliance
• Mineral or Coal Contract Gross Inequity Clauses

Example Projects Include:

• Reviewed the coal contracts and coal purchasing strategies for two coal-fired electricity generating stations owned by a major East Coast generating company. Study focused on the company’s current coal purchasing strategies and provided alternative strategies and options for reducing costs, reviewed existing coal supply, transportation and ancillary contracts that support the stations, and provided an overview of current coal suppliers and future coal market conditions.



• Provided assistance in contract negotiations relative to a 2,000,000-ton-per-year metallurgical coal supply and a 5,000,000-ton-per-year steam coal supply. Evaluated quality characteristics of coal reserves, preparation required to meet contract specifications, and possible blending alternatives.



• Completed an RFP bid solicitation for coal supply in the USA. Prepared bid documents, identified suppliers, reviewed received bids, tabulated bid responses and recommended preferred suppliers.



• Reviewed and provided expert opinions concerning terms and provisions in regard to contract mining agreements at operations in Indonesia.



• Reviewed and commented on contract mining agreement terms and conditions for bauxite mining operations in Jamaica.

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