South Hard Company's 2022 Annual Tender for the Sale of Tungsten Metal Scrap

  Nanchang Cemented Carbide Co., Ltd. plans to publicly tender (or competitively bid) for the sale of tungsten metal scrap generated between February 2022 and February 2023.

I. Types, quantities, and composition of tungsten metal scrap (see quotation sheet):

II. Bidders and Tender Requirements

1. Bidders must have independent legal status, be honest and trustworthy, and operate legally as economic entities. Additionally, bidders are required to possess qualifications for handling tungsten metal waste and submit photocopies of relevant corporate recycling and environmental protection certifications.

2. Any party interested in participating in the bid:

(1) Please submit the copies of your licenses and certificates (including the Business License, as well as relevant documents such as corporate recycling and environmental qualification certificates) along with your bid, securely sealed. You can either mail them or deliver them in person to our company’s Discipline Inspection Department office. Contact: Hu Min, Tel.: 0791-83887702. Mailing address: Discipline Inspection Department, Nanchang Hard Alloy Co., Ltd., No. 1173 Shuanggang East Avenue, Nanchang City; Attention: Hu Min; Postal Code: 330013. For inquiries regarding the bidding process, please contact Liu Xiaotao at 13979137795.

(2) Please have each bidding company provide, in Appendix 1, the exchange coefficient for each type of tungsten metal waste (expressed in tons—i.e., how many tons of APT can be exchanged for 1 ton of WO3 metal content).

(3) Regardless of whether they are shortlisted or awarded the contract, bidders and tender participants shall bear all costs associated with their bids and participation in the bidding process.

(4) The bidding documents (including the tender document and quotation sheet) must be stamped with the official seal of the bidding company and the legal representative's seal.

3. Bid Opening and Evaluation

1. Bid Opening and Evaluation Timeline

   Nanchang Cemented Carbide Co., Ltd. will conduct bid opening and evaluation on the afternoon of March 4, 2022. Bids that do not meet the requirements will not be accepted.

2. Bid Evaluation

(1) The evaluation of bids will be conducted by the Metal Scrap Handling Team. Among the valid bids submitted, our company will calculate each bidder’s comprehensive exchange rate by applying the respective bid conversion factors for the two types of tungsten metal scrap, based on the weights of various tungsten scrap materials listed in the attached table. The top three bidders with the highest comprehensive exchange rates will advance to participate in the on-site bidding process using physical bidding cards.

(2) If fewer than three bidding units submit proposals, this tender will be considered unsuccessful.

(3) The shortlisted bidding companies will be announced on the day of bid evaluation and publicly disclosed within one business day.

4. Bidding

1. After identifying the shortlisted bidding companies, our company will notify them by March 5, 2022, and simultaneously inform them of the bidding schedule (initially set for March 7).

2. After receiving the shortlist notification, bidding companies must deposit RMB 100,000 in full into our company’s finance department before they are eligible to participate in the bidding process.

3. Shortlisted entities—represented by their legal representatives (or delegates holding a valid power of attorney)—will participate in an on-site bidding process using bid cards. The bidding will focus on the "cobalt-tungsten metal scrap exchange rate," with each bid increasing the rate by at least 0.001. The highest bidder whose exchange rate meets or exceeds Nanhard Company’s minimum reserve price will be declared the winning bidder, thereby determining the successful supplier for the year. (Note: The winning bid rate must be equal to or higher than our company’s reserve price. If this condition is not met, the bid will be deemed invalid and announced immediately after the auction concludes.) This process will identify the winning enterprise responsible for supplying tungsten metal scrap during the 2022 fiscal year (covering the period from February 2022 to February 2023). The winning bidder must sign the annual tungsten metal scrap purchase and sale contract with our company within one business day. Additionally, the deposit paid by the winning bidder will be refunded upon completion of the contract term. Meanwhile, deposits submitted by unsuccessful bidders will be returned promptly after the bidding process concludes.

4. Bidding will be conducted based on quotes using the cobalt-tungsten metal scrap exchange rate, with the highest available exchange rate for cobalt-tungsten metal scrap serving as the determining factor.

5. Delivery and APT Payment Timeline

   Before tungsten metal scrap leaves the company, the winning bidder must deliver the corresponding quantity of APT to the location designated by our company, based on the settlement results from the disposal site. The Procurement Department and Finance Department will then verify the receipt of the APT. (If there isn’t enough time to arrange stock, a temporary cash deposit equivalent to the required amount can be made to our company, which will be refunded once the goods arrive.) Contract settlement will involve overpayment refunds and underpayment adjustments. Additionally, the exchanged APT must originate from primary ore production and meet international Grade 0 standards—detailed requirements are outlined in Attachment 2.

5. Default Handling

  1. Both parties to the contract shall ensure its proper execution; in case of any violation, the violating party shall pay the other party a penalty of 100,000 yuan.

2. If the scrap metal and waste materials are not collected within the specified period, a storage fee of 1,000 yuan per day will be charged, deducted directly from the security deposit for each day of delay—until the deposit is fully exhausted. Once the security deposit is depleted, this contract will become invalid.

2. Bidders must strictly uphold the fairness, legality, and reasonableness of the bidding process. Any bidder found in violation will have their bid or winning qualification revoked, with the deposit forfeited and no refund provided. We also reserve the right to pursue legal action against such parties.

3. After winning the bid, if the successful bidder fails to sign or execute the contract, their deposited earnest money will be deducted.

6. All rights of interpretation herein belong to Nanchang Cemented Carbide Co., Ltd. 。

Attachment: 1. Quotation Sheet for Tungsten Metal Scrap.

2. APT product quality requirements.               

                                           Nanchang Cemented Carbide Co., Ltd.

February 25, 2022

  Full-text download link: https://pan.baidu.com/s/1GaaqPs62FsW6K22mc13BuQ?pwd=qbbu