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Very long-time period product sales agreement: the off-taker agrees to consider agreed-upon quantities in the merchandise with the project. The worth is however compensated according to current market selling prices at the time of purchase or an agreed industry index, issue to particular ground (minimum) price.

The above is a simple explanation which would not deal with the mining, transport, and shipping contracts linked to importing the coal (which in alone could be additional complicated compared to the financing scheme), nor the contracts for delivering the ability to individuals. In building international locations, it is actually commonplace for a number of govt entities to get the key individuals from the project, undertaking the "final mile distribution" for the consuming population.

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