Document background
The Letter of Intent for Coal Purchase is a crucial preliminary document used in the Malaysian energy and mining sectors when parties are preparing to enter into a significant coal purchase agreement. It serves as a roadmap for negotiations while potentially creating certain binding obligations, particularly regarding confidentiality and exclusivity. This document is typically used when buyers and sellers have reached an initial understanding but need to conduct due diligence and negotiate detailed terms before executing a final agreement. The LOI addresses key commercial aspects including proposed quantity, quality specifications, pricing mechanisms, and delivery terms, while ensuring compliance with Malaysian regulations including the Mineral Development Act 1994 and related energy sector legislation. It's particularly relevant in cross-border transactions where Malaysian entities are involved in international coal trading.
