The binding agreement is valid for a period of 12 months, or as extended by the parties in writing; or either party may terminate by giving 30 days notice.
So until terminated in writing
Key Terms of Agreement
The Joint Venture Company will be established with a 50/50 shareholding and importantly, NSL is not required to fund any aspect of the JV.
NSL shall provide reasonable assistance to Wei Hua for the feasibility studies, including the latest market research report on the Iron and Steel industry in India which will assist in determining the size and scale of the proposed steel plant project. ($40 per tonne profit for pellets front of mill)
NSL shall conduct a study to understand the governmental approvals, licences, consents, no-objections etc. required from statutory, governmental and other authorities under the laws of India for the proposed project, setting up of the JV, and commencement of the preliminary activities for the project. This will be undertaken, in consultation with Wei Hua and NSL shall seek reasonable assistance from Wei Hua.
NSL shall commence the preliminary activities for obtaining and providing the legal and regulatory approvals, accessing available land and shall take all appropriate steps towards the supply of supplementary materials and human resources. (1000 acres allocated)
NSL shall thereafter be responsible for the operations, commercial marketing and sale of the steel products, on an exclusive basis.
Wei Hua shall carry out its feasibility for the steel market in India from a technical, financial and legal perspective, with reasonable assistance from NSL where sought by Wei Hua
Wei Hua shall provide the equipment which shall be delivered free of charge and as per a mutually-acceptable delivery schedule, prepared by both parties. The Parties shall jointly discuss and finalise JV Shareholder and Operating Agreements in a timely manner, post completion of feasibility studies.
Both Parties shall collectively approach and apply for financing from Asian Infrastructure Investment Bank and shall collectively ensure that the proposed project contributes to enhancing the welfare of the local community and economic and social development in the area.
The binding agreement is valid for a period of 12 months, or as extended by the parties in writing; or either party may terminate by giving 30 days notice.
India hasn't quite got going as whole just yet but I remember plenty of people in 2002 telling me China was risky panned out not to bad though.
Time will tell could be right twice in 16 years and that'll do just quietly
(20min delay)