Letter Of Intent For Coal Purchase Template for Indonesia

The Letter of Intent for Coal Purchase is a crucial preliminary document used in Indonesian coal trading transactions when parties wish to formally express their intention to enter into a coal purchase agreement while finalizing detailed terms. This document is typically used when buyers and sellers have reached a preliminary understanding on key commercial terms but require a formal framework for further negotiations and due diligence. It outlines essential elements such as proposed quantity, quality specifications, and pricing mechanisms, while adhering to Indonesian mining and trade regulations. The document is particularly relevant in Indonesia's coal sector, where complex regulatory requirements and market conditions necessitate careful structuring of trading relationships. While generally non-binding in nature (except for specific provisions), it serves as an important step in the coal trading process, providing a foundation for the subsequent definitive agreement.

1. Date and Parties: Identification of the date and the parties involved, including full legal names and addresses of both buyer and seller

2. Background/Recitals: Brief context of the proposed transaction and relationship between parties

3. Definitions: Key terms used in the letter that require specific definition

4. Purpose of the LOI: Clear statement of the intention to negotiate a coal purchase agreement

5. Product Specifications: Basic description of the coal quality parameters and quantity intended to be purchased

6. Proposed Commercial Terms: Outline of key commercial terms including indicative pricing, quantity, and delivery terms

7. Duration and Timeline: Proposed timeline for negotiating and executing the final agreement

8. Exclusivity Period: Period during which parties agree not to negotiate with other parties

9. Confidentiality: Agreement to keep discussions and information confidential

10. Non-Binding Nature: Clear statement of which provisions are non-binding vs binding

11. Governing Law: Specification of Indonesian law as governing law

12. Signature Block: Space for authorized representatives to sign and date