Alluvial Treasure

Tin and sand

2012-01-06T16:11:00.000-08:00

This sells for USD 10,000 per ton and it's about 65% pure, compared to sea sand, which is USD 6 per ton onsite, it is a world of difference.

Its one of the reason why we are shifting from Sand to Tin.

Why Indo China activities we on the wane, and our alternative work areas are picking up.

It is difficult to pull out, but, now that the direction is clear, it just don't make sense to continue under those situations where alternative supply is imminent, even though we had invested substantial facilities there.

Tin is the new economy for us. For now, sand activities will be taking a back seat.

Mining woes

2011-11-29T16:25:00.001-08:00

You know whats the most depressing thing about mining operations?
You are the ones who invested in the equipment, in the concession and the personnel, ends up merely a subcontractor, while some connection savvy middle man gets the deal.
Ya right, at the height of the need for sea sand, we were constantly hounded for increasing production load, being efficient oriented, we invested in relevant equipment, trainings and set up.

Yes, our men were trained and disciplined, and we have lecturers coming in from recognised institutions to update on operations, and also to brief on environment care.
But all these come to nought at the end of the day when the contracts were opened to open tender, it may be the best way to source for the lowest price, but lowest price always comes with their set of baggages and problems.
So at the end of the day, the transhipment operators get the deals by pushing the price to ridiculously low level.
The End Buyer may think that they get a good market feel, the price hardly can justify the sand sourcing, concession payout and operation in Cambodia. Furthermore, for reclamation, it is hardly justified to insist on coarse sand with fine sand dumped under proper contained area compacts easily and provide a firm base.
Its not a case of sour grapes here, here we are one of the most efficient operators of the sea sand dredging, with a host of set up, dry docks, safety trainings, discipline enforcement and track records, have to resort to pick up depressed sub contract for the supply of sea sand by some main contractor who managed to secure the tender.

The demand for sea sand is so great and operators like us will surely be an asset to the end buyer, but why can't we secure the contract? Its the price.
The price tendered is almost 50% lower than the end buyer paid previously, and imagine, new transshipment players in the mix! They bid a low price to secure the contract, and then turn around to press the price of the miners like us to supply knowing we are out of contract.
We all know the price is not sustainable, coming from Indonchina to the end user, the shipping fee already a hefty sum, but then they with contracts are vessel owners, getting their vessels to work is already not losing money, thats why after almost 11 months of stoppage, they will go at any price.
For us the woes are clear and present, settle for a price only at operational cost, and risk our equipment wear and tear for what?
Thats why we are looking beyond the horizon.
We refused to submit to this kind of arm wrangling, currently where we are, we are the only source that can export sea sand without local restrictions, the end buyer can do to have an alternate source like what we have there, but we already started looking beyond.
We are specialist alluvial dredging team, we also are efficient in conveyor belt transport system, there are opportunities in the region for us to expand ourselves, we long know we should not put all our eggs in one basket.

Recovered Blog entries

2011-11-26T05:51:00.001-08:00

I just posted some of the recovered blog entries I managed to salvage.
The very earlier ones were still untraceable, I guess the chances of recovery is bleak.
What I have, I already reposted with the dates inserted accordingly.
There are a number of posts without dates, so generically I gave them a block date from that period.
Alot of old photos were not replaceable, I tried to substitute with newer ones, I hope this is acceptable.
I will continue to blog as the work progress, hopefully experiences learned will be experiences shared.
Thanks for reading.

Coal Mine Trip Jan 12 2011

2011-11-25T22:41:00.001-08:00

We were invited back to Kalimantan to tour the Coal Mine sites.
the purpose of the visit is in the negotiation of the transhipment business.
We were accorded full VISITOR's status, ie: guided and full board for the visit.
We have unrestrained access and were accorded planning details, procedural and operations information.
Rounding off the trip, we saw the loading sites, the loading equipment, see the different calories of coal available from the sites. We also understood the calories plan where they load and blend the coal in different hatches on the mother vessels.

Cold Coal deal Dec 12 2010

2011-11-25T22:38:00.001-08:00

I recently witnessed a Coal Deal gone cold.
F, one of our earlier casual contact had hooked up my Singapore associates and managed to persuade them to give him a deal.
They struck a deal for a certain amount of money, and F name dropped us to secure the transferable LC from a Chinese buyer arranged by a Singaporean broker.
The money came in, and for almost 2 weeks, it was not touched.
They buyer's bank contacted the Singaporean broker G and made query, G flew over to Jakarta and asked F who said that he will make payment soon as there was some festival on going.
F then made another LC payment minus a sizeable amount, and G was informed.
G went again to check what happened, and the consequence was long stake out, LC drawn and needed to be refinanced, and even the buyers themselves spent almost a month before finally abandon the deal.
F had tried to flip the LC in local terms, he struck a deal with one seller, and then tried to buy another batch to double flip the LC. He retained the profit before he made the payment, and unpredictably as the nature of mining went, delivery hiccups, quality and even local problems made it impossible to deliver even the original deal on time.
It was messy, and sellers and buyers came to his house in Jakarta during which his liaisons with girls he brought to the location in Pekanbaru and other parts of Kalimantan were exposed to his family as he desperately tried to arrange financers to back him up and tried to cover his double dealings to the buyers who did not get their required goods and angry sellers who had made the commitment and demanding progressive payments.
In the end, the coal deal turned cold.
The buyer and sellers met separately and worked out some solutions between themselves.
The brokers, F and G and others in the line, were chopped and discredited.
All for nothing and a lot of mess.

Featured us Aug 31 2010

2011-11-25T22:31:00.001-08:00

I was pretty busy lately, now theres some news to update.
We were featured in the latest Global Witness Report on the Sand industry in Indochina.
We were pretty quiet until then, low profile just doing what we can legally so long as the law of the place provided. Well, it seems there is a political agenda on the report, mainly it is about the practice of awarding the contracts and concessions in the place.
There were also talks about sand ban in the area and that the operators were dredging even under a ban.
That is not entirely correct, we were there, we know it.
The Sand ban earlier was to save the environment, before the Ban, there were indiscriminate dredging all over the place, pristine diving spots and islands were dredged destroying marine habitat and messing up the dive spots, we NEVER do such things.
Then the PM banned the industry from export, he reopened it a few months later allowing only dredging in renewable sources, ie; in rivers where the wet seasons will wash down sand and silt and cause flood and sand banks, those are the areas we operated.
In a way we were singled out due to our efficiency, but that was all, we had illegal miners foraying into no entry area, small less equipped, they have to dredge near the shore to get the sand, with no regards whatsoever to the environment.
We exercise more care when we operate, our equipments can go deeper, so we stay away from habitat, also focus more on sand banks thats obstructing waterways.
It is now all quiet for many months already as we await new tender to begin our operation, this stoppage is damaging as we are owners of the assets instead of hiring someone else to do the job.
That is why, with the experience we will not be putting all our eggs in the basket, time to diversify, we have been active the last few months, pretty soon you will see our additional activities.

Alternate job May 20 2010

2011-11-25T22:14:00.003-08:00

Tired of waiting around for the tender, we were surprised last few weeks with some approaches.
Firstly, an East Asian Country wants a steady 18 months supply of sand, then a major mineral producer approached us for trans shipment services.
The East Asian buyer wanted us to provide 18 months of sand on FOB basis, the price they asking for the deal is somewhat a little lower than expected based on our concession and operation costs. But the prolonged wait for tender is eating up the patience. We are seriously considering the deal, and looking forward to lock up the fellow sand suppliers in our area to supply that volume, which is rather substantial for a duration of 18 months.
As for us, we are more interested in long term supply, and thats why, reserving some of the facilities to fulfil the contractual requirement when the new tender opens.
Well, the current wait punishes the effective ones, and rewarded the slow coaches. For those efficient enough to complete the quotas earlier than the current slow coaches, they are made to sit around and wait till the tender opens. That for us, since February this year, enough said.
Another, more lucrative deal being pushed forward is the mineral trans shipment, we are approached by a major supplier who is having problems with the system they are using, resulting in lengthy demurrages at loading site. Upon receiving our profile, they were very interested to open talks with us, and the initial contact went very well, we are planning a second contact to wrap up the basic requirement before going to site to do a site study prior to final negotiation and subsequent operations.
We can mobilize additional transporters to do the job, and if the volume required incremental invovlvement, we are more than capable to handle that. We will supervise the loading port preparation and deployment of the transporters to handle the product from port to waiting vessels.
Looks like light, camera AND ACTION in June!

Progress Jan 23 2010

2011-11-25T22:06:00.001-08:00

We marked a milestone in our operation in IndoChina.
We actually built and operate now, our own dry dock.
As we operate a 11 vessel fleet, the lack of facility in the area where we operate had always been a consideration, we checked with neighbouring countries to send our vessels for services, and was completely dumbfounded with the prices we were quoted.
As such, we had no choice but to built our own dry dock.
A quick calculation, land survey and then we got the ideal location we wanted, we started work.
After 3 months, finally we are in place to bring up our first Transporter for servicing.
As planned all the vessels will be arranged to go up the dock for works to be done, we can now do repanelling, sand blasting, painting and any other works on the vessels.
Already, the other operators are asking if they can use our dock, which we politely declined.
Well for me, my journey of change is still happening, now, suddenly I am tasked to manage a dry dock!!

Lesser Exposure Nov 16 2009

2011-11-25T21:56:00.001-08:00

Following my earlier post about when you don't have it, you flaunt it, when you have it, you keep it.
Nothing more true than that.
I have now removed all the pictures, all our activities from our official website, why?
The lesser the exposure the better!
Simpy said, when we attained certain level of operational efficiency, we really would like to maintain the status quo without additional distractions, and when you have the productions ongoing, would you welcome additional checks and additional interferances? Guess not!
While I set the website up earlier purely as a profile of the businesses we conducted, it is now relegated only to an address and an indication of our current activity areas, thats all.
When I want to give any selected client a profile, I will now hand the subject a hard copy of the profile, we have done away the need to propogate ourselves via media or publicity means, in fact, right now, we shun publicity of any kind because, we learnt that uninformed reporting is distorted reporting, and as the journalists were pressured to come up with a story, they will do A Story so long it existed, and would really never check the accuracy of the report.
Yes, we were a victim of slanted reporting, although it was meant to report the general concerns in certain place, we were named, purely because of the scale of operations, but than, that report, over 3 pages were pockmarked with gross inaccuracies, so much so that I did not even attempt to set the record straight.
Cause by doing so, we would have discredited the report, and in that situation, I seriously doubt my points will be published, but certainly stir the honet's nest and brace myself for more attention from the media, something, I now loathe.
So, this effectively ended my dance with the media, where I used to dance with them in retail trade, I find footdragging with them in the production and in the area a torture and will avoid BY ALL MEANS.

Comments related to the post is welcome!

Then and now 18 Jul 2009

2011-11-25T21:55:00.003-08:00

Going through different phases of work, I realised one thing finally, that is: When you don't have it, I want to show it, and when you have it, you never want to expose it.
Now what that mean?
Some observant ones noted that I removed some posts of my current operations.
Yes I did, rather than to edit them, I removed them.
Why so?
When I was a broker, I would break my back just to prove to anyone interested in what i was saying that I have something they want, I did not want anyone i was talking to to have the impressive I do not have the goods, or the buyer. Sounds familiar?
I would beg for pittance of evident the other party had, and many a times, they themselves do not have it.
And when I got anything from these people, I would make it into some slick presentation, and made the presentation saying that the guy behind me is solid, and indeed in possession of the product he claimed he had.
I was led to believe it time and again,and seriously, spent a couple of years of my life doing all and achieving practically, nothing.
In my file archive, many hundreds of LOI, Draft Contract, Pictures, even signed contracts and letters of appointment, including one from G Metal, none of which materialised.
Met countless people, brokers, buyers' rep and even local scrap yard owners, nothing save for an odd container of scrap was shipped.
I looked back at myself, holding at that time a day job, spending my nights into wee hours of the morning, checking emails for LOIs, and going through Draft Contracts. It was tough times I had, and I dreamt repeatedly of the day I will successfully plug the right contact and launch myself into the superworld of brokerage.
Nothing happening......
I was conned into leaving my job to work for a supposed Swiss Metal firm with a basic salary, a letter of appointment and handled by a GM who coordinate all the sales rep world wide via Skype.
3 months on, after no payment at all, I called it quits, revert back salaried work, I was going into exhibitions in Asia, Mid East and Europe when my brother who got into aggregate supply and then into sand supply got me involved in the business.
I began the NOW phase of my life.
Only then I realised the scale of work, the secrecy of the arrangement, the sensitive contacts, and then suddenly, I am no longer talking openly about how we got about getting things done, and why the lesser people know about us, the better.
I don't need to look for buyers, those in the trade already know us, those who are still trying their luck at alternative suppliers runs risks of getting conned.
Stories of people making deposits to dubious suppliers abound, and next thing I know, pictures of our operations circulated in the market, the one making the presentation presenting them saying it belonged to their organization.
One who went up to our local coordinator presented pictures of our vessels to him, telling him that he was able to supply and that the vessel in the picture belongs to him. Looks like deja vu for me!
After goingto real scrap yard, knowing the way the distribution channel already in place, and likewise with my line of work where we shipped tens of thousand of tons per day, keeping low profile and status quo was the key.
I really did not want to present things I never been to before, because, we have people who came visit and took pictures of the things we have, and no way it meant when they do flash it out to anyone, they are representing us.

Getting the sand thieves Dec 18 2008

2011-11-25T21:53:00.001-08:00

We have been putting up with people coming into our concession areas and harvesting our sand.
The activity was observed by our security personnel for a period of time, watching them coming in at night, dredged our sand and during the day, moved out of the concession area to load to a holding vessel.
A week ago, they stepped up their activity.
Outside in the waters, were 3 barges, and it became quite apparent that the illegal sand harvester was going to go for volume.
We waited.
And when they were in the concession, we swooped in with our security personnel, the customs and the marine police.
Caught red handed, were 4 small dredgers and transporters manned by personnel with no papers clearance, licenses and right to work in the country, let alone dredging in others concession.
We apprehended not only the dredgers, but also the barges and tug boats, with crews from Singapore, Malaysia and Vietnam.
They all do not have clearance to work, and to extract the sands, and in violation of customs regulations in the country.
The illegal sand operators will face the local authorities' actions, and also, the end buyer is aware of the incident, affecting the supplier at the other end.

Loading Sand: Nov 1 2008

2011-11-25T21:52:00.001-08:00

Our company operated in Indo China for almost 7 months already.
Sand is our business there.
And we have been delivering them with consistency.
Operating 11 vessels of various types, we operate with full support from extraction, transportation and to the loading of the sand to bulk carrier with a a capacity of 20,000 mtn to 45,000 mtn.
All in all to date, we have delivered 3,000,000 mtn of sand to our end buyer in the 7 months of operations we embark, and our production now is about 20,000 mtn every 24 hours.
All these are possible with establishment of our own support logistic teams of on sea water and fuel replenishment units, on board maintenance and dock repair teams and also the various support units.
We operate a thriving, producing and active group of men and women, intertwined with local support, to deliver the sand.
This is our business.
And we are delivering, and on this day, 1st of November 2008, the operations is now assumed in full control by our Company in Hong Kong.
We will soon operate in a bigger and less complex sand location, and I foresee a big jump in production and also in the number of vessels we will operate in future.
And that will mean, a bigger volume on the production capacity for our end buyer.

Reverse role

2011-11-25T20:58:00.001-08:00

This is getting interesting.
While I was brokering scraps, I really never had the chance to really get to the junk, but instead, sat down infront of the computer trying to strike deals.
Things never happened, I was thwarted time and again despite the most diligent efforts I can put in as a part time broker.
Yes, I worked till wee hours of the morning nightly, and then back to the bread and butter grind as a Marketing Manager.
2 years I slogged, nothing happened except for a couple of containers, misplaced by someone, left in the dock in China, I managed to get the buyer to open and get the junk.
Now, with the sand operation in Indo China, our many vessels have regular repair and parts replacement activities.
Suddenly, I am trying to sell the scraps from the ship repairs.
Role reversal!
This has really come a full cycle!

Life at Sea 11 Oct 2008

2011-11-25T20:45:00.001-08:00

What a change!
From trudging around in the mountain, I am now zipping around in a speed boat!
The new appointment has me involving with the production of sand, and working in tandem with my Chinese colleague, I was tasked to bring out my management skill.
The chinese operational manager is a very strict disciplinarian, he was a police chief in China, and now tasked to look over the production in the location.
His rather lack of tact approach is effective against the ex military and ex police crew members of the fleet, but when come to coordinating with the locals, and shipping captains, his ways had produced some unnecessary results.
There I was, kind of shoved into the position, primarily because of the lingual skill, and the more subtle approach I practice.
A few days into the job, I realized that with the size of the fleet and the location, organization and coordination of the extraction, filling up, unloading, beside that, we still have personnel, parts, customs, and shipping problems.
A far cry from mineral ore procurement.
But still very much involved in the extraction and the shipping of the sand.

Sand indo China Oct 4 2008

2011-11-25T20:36:00.001-08:00

As it was, I was re assigned to Indochina for our sand export business.
Being assigned there had mixed feelings, I just got into the groove in Mindanao, although the headache of doing business there physically is enormous.
Packing a 45 caliber albeit hidden, is a not an entirely pleasant experience, my trainings were for rifle, and having a handgun means I have to learn the stuff all over again. And seriously, in an encounter, I am afraid I do not have the same proficiency as I would with a M16 which for me, was possible to take out a man sized target at 300 m without scope.
There I was, in a country that I have never been to, and with our vessels already in operations, it is a daunting task to move in to start the management of operations there.
Being effectively bilingual, and also trained in management, I was asked by my brother's partner to begin deployment, to liaise with the locals, and coordinate with the Chinese operatives in the area. I am also to document and plan work flow, meeting notes and play the role of HR manager to the 200 odd Chinese/ local seamen there.
We secured a major sand concession and the teams are already in place on the new location to mark out sand spots, locate logistic areas, and set up operation bases in the location to facilitate services, repair, replenish and direction of operation there.
on top of all this, a major task is to learn a new language so that my extended deployment there will not be of unknown and loss in a world of ancient tongues.
More updates later when i begin my deployment proper!

Mindanao headache 27 Jul 2008

2011-11-25T20:31:00.001-08:00

I have to leave Mindanao at the height of the confrontation between the government forces and the MILF.
Disagreement over the ancestral domains, left the peace talk in tatters, and next thing I know, I got text messages asking me not to venture outside.
Then the encounters started.
Skirmishes in Maguindanao, bombs in Zamboanga City, killings in Sarangani provincial villages...
I witnessed a massed exodus of Japanese, then the Koreans out of the country.
That did not break my back, my back was broken when I found out that, the local guy V., I was with, whom I placed alot trust, and also looking forward to set up the business with him, was actually taking commissions from the guys he brought the deals to me!
I paid him monthly allowance, pay for everything we spend together, even pocket money when he seemed broke, released fund for him so that his children can attend college and he was skimming me off!!!
He had no interest whatsover if the deals he brought went bad, but kept asking me to see this fellow and that for supplies of Manganese, Iron and Copper ore.
I already established a contact, and a working procedure that will protect my buying interest in future, and because the procedure will end with the meticulous check by a trained engineer who will not check on anyone elses' stock but only from a couple of sources he can control, V was not happy with him for not accepting the recommendations he brought forth.
It was already tough operating there, and with the looming threats of security, cheats, unscrupulous businessmen, I have to content with thief in my backyard!
That was it, I gave up the apartment, left the issues with the influential contact I have.
I will deal with these people in proxy, and also with latest development in Indo China, I was asked by my brother to proceed there to assist with our sand operations where we already secure a major concessions currently operated on by our 9 vessels.
Leaving all the headaches behind in Mindanao.

Scrap Metal 27 Jul 2008

2011-11-25T20:26:00.001-08:00

I was able to get into a scrap yard in the Philippines while doing mining work.
Surprisingly, when i was brokering for it, I don't seems to be able to find it, and when I am not focusing on it, there it is right in front of me...
Venturing into the yard, I realized that those scraps there are unshredded, and primarily had been collected from the junk collectors around.
My estimate on the site, about 10,000mtn, but raw scraps, I really cannot market them unless they shred them, and remove the impurities on them.
Talked to the manager, he himself admitted, 80%-20% requirement, pretty difficult to fulfill, he can do something like 50%-50% on HMS1 and HM2 if specified...
So you have it..
Thinking back, no wonder it was such a mountain to climb in scrap dealing.
You simply cannot control the quality.
So for me, it is still focus on Mining, especially, I am at the source and dealing direct with the miners.

Minefield everywhere 27 Jul 2008

2011-11-25T20:23:00.001-08:00

Yes,
After transacting in the place, I can just tell you, it is mine field everywhere for the buyers.
Many came and went away empty handed.
I would have if not for some vital contacts.
The best lawyers can draft the most carefully worded contracts which, are signed without the suppliers really see through the contents.
Why?
They can screw you up and left you holding the ICC, UCP and whatever, do you have the means to have to the firepower, the contact power or the local influence?
The kind of influence which can take a life for a price of a bullet?
If not, then, it is not your playing field.
I have suppliers who swapped the stocks, kept asking for advances, leeching on you, making promises they won't keep, telling you stocks are ready, when in fact, they are not....
Good thing I have the right contacts to keep them in line.
Or else, I would have been fed to the sharks.
They are infesting the whole region.
Your best bullet proof vest will not protect you here.
TRUST ME.

First Container 27 Jul 2008

2011-11-25T20:20:00.001-08:00

Yes, I have my first containers loaded finally.
But it was not uneventful.
I have to first contend with a manipulative lady broker, a muddle headed mandate, clueless geologist, foolhardy security chief, and a want wit permit holder.
Yes, since 16th April when I first transfer my initial deposit (bad move!), I have to wait till today to get the clearance, and the stocks were finally loaded, ready to be shipped out.
In between this period, alot of things happened, including a gun fight near the stock compound resulting in 2 fatalities.
Yes, moving stocks is not easy especially where I was.
The problems, so much so that a Korean previously had jumped into a lake out of sheer frustrations.
People get killed here.
I had to overstay, spend countless hours over teas and coffees, sticking my neck out, strap on a 45 caliber, attend 2 weddings, went on so many mountains... finally linking up the regional heads, the trigger happy security and finally the governor to get my stocks.
The trouble I went through to get my stocks.
And boy, I sure learn it the hard way..

Metal insurance 27 Jul 2008

2011-11-25T20:14:00.001-08:00

Being involved in mining is like going into a cowboy town.
Of course it is safer to buy from the yards, a whole lot safer.
But with me as a risk taker, I guess i would rather throw my dice on the mountains.
Just a couple of weeks ago, 2 Chinese potential buyers took a stroll outside the compound of the yard here, they were barely 700 metres away from the compound, when 2 pickups screeching to halt infront of them and wanted to shove them up the trucks.
Luckily, the men from the compound ran out with M16s and M14s, a brief stand off, the potential kidnappers backed down and drove off.
Leaving the Chinese shaken and they were not seen back there again...
As for me, I took the extra caution of packing my own wallop.
Call it a metal assurance/insurance or what ever, I am willing to draw and shoot without hesitation.
Anyway, everyone with a gun here is loaded, cocked and put to safe, a flick of the finger and the trigger pulled will have a round out.
If one is carrying a gun, one must be ready to shoot.

Potholes 27 Jul 2008

2011-11-25T20:11:00.003-08:00

Still not smooth sailing.
There are alot of loose ends to keep in the deal yet.
The lady broker on the mandate side was trying to control the deal.
This lady appeared earlier in the deal, making demands, and trying to jostle for vantage point in the negotiation.
I cut her out by recognizing only the mandate and deal only with the mandate.
She was not to be silenced, she contacted my manager, and arranged without consulting us the internal haulage.
We actually do not mind if her price is competitive or acceptable, but, it was infact, 100% more than what we were quoted.
When my manager told her it was too expensive, she asked him to lay off, claiming the Seller/Miner insistence that we should have the haulage agreement with her, he text her back asking what she meant by "laying off", he was doing his job!
She actually send a text, supposedly wrongly text to him, saying that she will want the Seller's bodyguard to "Bury" my manager.
Yes, this is the peril of mining trade, where power play is rife.
But what she did not know, I am already in close contact with the Seller/Miner.
He was ready to honour the NCND, and also felt the meddlesome lady broker a mess.
We had established a procedure to protect the mandate but also to trade without the layer of people trying to influence the deal. Commissions will still be paid to the mandate, but we call the deal.
The miner is definitely not letting his men "bury" my manager, instead will not hesitate to do it to the one who posted the threat if I would say so.
Because till this stage, my word is good as gold, and despite the muddle headed mandate, who is sleeping with the lady broker, I put money and action to my words.
I made 2-5 hour trips to the seller/miner to deliver money when he was short of it, as I promised I would, as he was only given only 50% of my initial downpayment by the mandate.
At the end, honesty and sincerity and above all, genuine respect for the seller/miner got me the respect the other way round.
It is indeed a road of potholes.

Mandate muddle 27 Jul 2008

2011-11-25T20:11:00.001-08:00

Sigh..
Just had a visit to the miner.
I just found out to my dismay that of the initial payment I put down to finance the deal, only 50% actually reached the miner who is in dire need of fund.
This is not a good start, and the mandate actually retained more than 50% of the amount, which is actually more than the total commission the chain of brokers (jokers) will have.
As my earlier post about broker who breaks deals, this is the perfect example.
Since the NCND had been signed, and the I am in direct contact with the Miner/Seller, the broker in future will only get his commission as in the NCND for his contribution to the deal for the next 2 years.
Money will go direct to the Seller.
I have to pump in additional fund, but on condition the Miner top up with gold ore for a few tons to get him going.
Will proceed with loading in a few days, currently on diligent checks of the sacks they assembled for loading.
This is the trial shipment, and every care must be made to set standard we will be based on for future transactions.

Brokers in the way: 27 Jul 2008

2011-11-25T20:09:00.001-08:00

I now know how much a broker and break a deal!
A broker should not get into the way when a deal is in progress.
A deal is possible only when the buyer and seller converge, given the space, instead of meddling by manipulative brokers who set conditions even the seller is not aware of!!
I earlier had a lady broker, who after I had viewed the stock and was satisfied to sit down and talk terms, laid out all terms with me paying for everything!
I got her out of the way, and she was trying to control the seller, and preventing us from communication, and when I signed the NCND with the mandate and the seller, I had to put her under the mandate, and not talk to her, everything coming from her is detrimental and deal threatening.
Then I have my introducer, who gave my manager a call, asking for loan that will be taken off from the 2nd part of the payment due to go.
I told the manager this is no go, and we will not entertain such a matter, furthermore, his commission is not under me, but with the mandate.
Stay out of the way!
We as buyer have other matters to worry about, from haulage, papers to shipment!!!!
Brokers who don't know where they stand, stand to break deals.

Fraud Rumor 27 Jul 2008

2011-11-25T20:07:00.001-08:00

I would like to write about one of my suppliers I met 2 weeks ago.
He has the impressive yard, the stocks, he was such a smooth talker.
We were impressed and he was preparing to give us the stocks he said he had, he was even willing to talk to the current client he had to let me have some of the stocks he had committed.
A couple of things flashed through me, why would he want to do that?
I arranged an appointment with him to see the site the following day, my runner and I were ready when my runner told me that the supplier "E" was in the mountain, and that he was not able to make the appointment, we rescheduled to the following day.
The following day, we went there, and "E" told us it was not possible to see the site, the trucks his partner took to the mountain for some matter, he had me stay for lunch and played the perfect host, telling me he will visit me tomorrow at the hotel, and that he will call when he was coming.
We waited at the hotel, he did not turn up, called him, no answer, his wife answered and that "E" could not make it, as he has urgent matter.
I did not want to wait another and went on my quest for other suppliers.
And I met the miner, who showed me the mines, the deposits and we inked an agreement for supply.
When I came back to the City, "E"text and asked when are we coming to see him to make the order, I asked my runner to inform him that I am out of the country already.
Later, as I left the hotel for the return flight, the cab driver told me about "E" and that he had some outstanding issues with other buyers and other business partners in the businesses he ventured with them.
"E" had shown to be a smooth and PR man who could not keep his word, his approach was impressive but something tell tale sign about him showed that he might not be able to be trustworthy.
1: he was willing to change buyer merely by a 2 hours talk, either he was having problem with the current one, or he is trying to sell it for higher price
2: he did not keep his words, not once but thrice
3: rumours about him, in chinese there is a saying, there will not be any draft if there is no vents
I intend to stay away from him, stick with the honest man in the mountain.

Gold: 27 Jul 2008

2011-11-25T20:05:00.001-08:00

This ore looks like any other ore, except, the bright orange vein indicated that it is gold.
This is one of the many ore I have secured with the supplier.
Exclusivity signed, NCND signed and procedures moved, we will be financing the project and get the ores moving.
Yes, it was gold in my hand.

Legworks 27 Jul 2008

2011-11-25T20:00:00.003-08:00

This is all about legworks, even taking risks along the way to make sure that the stuffs are real.
I went a long way to this.
Thwarted time and again, I was not shown the actual site of the deposit but seeing the ores in the stockyard.
My challenge was, how to be sure that they have the stocks they say they have?
I was brought to a far flung side of Mindanao, brought a merry van of introducer, brokers, and anyone who were remotely involved in the deal.
I had to pay for all their lodging, food and expenses, including the transport I hired.
I had 2 brokers who brought me to a city, there, I met the mandate, who hooked me up to his lady partner, and they brought along a geologist... now you get the idea!
I was with my layers of fat, before they brought me to the miner's place.
We left at 5am in the morning, with the mandate making all the arrangement, on arrival, at noon, they told me that the walk to the top will be minimum 6 hours, and it will be dark when when come down, there is a curfew in the region.
Thwarted!
I ran out of cash, tried to get cash advance from Citibank, nothing came out, have to take the transport back to the city, as my layers of burden was still on my back.
I went back, drop them all, took a 8 hour bus ride back to city to go to a Citibank outlet with the guide and the security personnel to sort the cash issues up, and after 2 hours of talk for nought, I walked out, fumbling through my wallet, I came across one of the oldest cards for the Singaporeans, our Post Office Savings Bank card, flipped behind, it had "CIRRUS" and "MAESTRO", put it in the ATM, out spews the cash!!
BTW, the Citi card, which was entirely useless for cash withdrawal, will be revisited and I will make them pay for the rejection and the almost hell they put me to.
I came back again to the launching point after another 8 hours ride!
Nothing will get into my way to go to the top, and to see for myself the "walls of Copper ore".
Another 4 hours ride, pick the miners and the security personnel, I counted 2 rifles, 1 grenade launcher, 4 pistols altogether.
We reached there start point before noon, and quickly start our trek to the mountains.
Everywhere, curfew signs were posted reminding the trekkers the time to clear the area.
3 hours of trekking later, we see the first of the deposit. Yes, there were walls of copper, by the stream, in the vertical walls, even in the streams!
Although we did not get to the top where the operation was, the sight of quality deposits were sufficient enough to start our procedures, further more, more time spent moving up means it will be darker when we come down.
We start our return trek, and we heard some noises resembling gun fire, checking through the walkie talkie, the miner told us, his men will look into it, and that it was nothing serious as all his mobile units reported in accordingly.
Well, some experience!
It was getting dark as we reached the bottom of the mountain, sending them back to the compound before the mandate, my guide and I make our return 4 hour journey to the nearest safe town.
Going the distance for legwork have a new meaning to me hereafter.

Headache 27 Jul 2008

2011-11-25T20:00:00.001-08:00

Yea, real headache.
We had a commitment for a trial a few containers of 20% and above copper ore, put the money down for our local chap to make the purchase.
The local guy did his work to source for the cheapest he can find, got the copper ore sorted all out, and now, ready to load, then he hit the wall.
They have different working procedures with different region in here.
Governors can wield their influence and impose their own laws here, and as a result, the road leading to our containers and the port is scattered with roadblocks. Roadblocks with specific instructions to seize the copper ore if the ore did not come with a special pass the governor issued only to 4 or 5 organizations.
That means the locals have no access to sell their produce, except to the licensed yards.
To certain extent this is monopoly, and the hefty license fee imposed by the governor had a domino effect, the buyers are leaving the town, the locals are suffering, and businessmen are bewildered by the differing situation here.
One area is passable so long you have a Ore Transport Permit, the other is not good enough.
One is supposed to navigate through the process and also the regions because one do not operate in tandem with another.
Almost a joke!!
Problem, it is an existing joke, but all are sure, that is not the end of the story yet.
More will unfold later.
That said, our options for the stuck goods, either to dispose of it to the yards at whatever price they can hold ransom to us for, or to simply forget about it, as most buyers who have left the region had done so.
It is not hard to imagine that the political climate will be so unstable given that an island of a country struggling with problems Abu Sayaf and NPA, most Philipinos will just shrug it off, and then go about with their work, I am not going political here, politics is not what I wish to discuss in my blog.
Just that personal squabbles between governors and for personal interests are in fact affecting National interests and International confidence.
That said, aside from the fact that you may need to have body guards with you or even carry your own fire weapon while trying to procure the minerals, you will still have to navigate the political scene in the place where you want to move you stock.
No venture, no gain isn't it?

More Copper Ores Jul 27 2008

2011-11-25T19:55:00.001-08:00

I chanced upon different types of copper ore while out in Mindanao, strange to see them in different colours and forms, as such I am putting the photos for all to share...
1: There is a porous and easily crumbled type, the particles are darker in colour
2: Heap of sorted ores from the stock yard
3: Ore with red band
4: Ore with blue black hue
5: Ore from the miner
6: The ore that lured me to trek all over the place... hahahahaha!!! Yes, that was the first sample ore shown to me!

Copper Ore Select 20 Jul 2008

2011-11-25T19:52:00.003-08:00

I spent one whole day trudging through the forest caked in mud, the aim was to go to the site where Copper Ores were mined.
I was not disappointed, I reached the mine, and got the worker to hack the ores off the wall, I washed the ores at the nearby stream.
I had in my earlier pictures, both gold and copper ores.
The miners stopped mining in the area when they found copper with the gold vein, and the higher the copper, lower the gold.
And now, with copper in demand, the miners are willing to reopen the mine, and I was there to see it the product was worth our investment.
Next, through the contact of the very influential guide, I was at a stockyard, where the owner of the yard had bought the ores from surrounding small producers, and had the ores washed, sort and graded there.
I will work only with sorted ores, no point taking risk with unsorted ones, the ores are spread out all over, and there is a tendency by the miners to mix the products.
I really don't want to get caught with the pants down like that.
Moving in the right direction right now for us.....

Comments related to the post is welcome!

Legworks on site Jul 20 2008

2011-11-25T19:52:00.001-08:00

I was in Philippines, and one of the tasks at hand is to look into the mines producing the products we require.

Yes, doing the legwork, a.k.a due diligence.

To really buy, we must make sure we know what we are buying, or at least we get what we want, because when the money goes out, anything goes wrong, we will be left with the worry if there be any chance to see the money we paid for the stuff that don't make the grade

Many a times already, our group had paid for items, even on trial basis, based on recommendations, and not getting what we want. Once, we even got rocks for our supposed lumber consignment.

So due diligence is important, if we want to keep the relationship, and of course, our purchase in line.

I went trekking in Philippines, talked and viewed samples over coffee and tea.

Thing is, I only take the samples of the product I went to the actual site.

At least I know where I get my sample, and if they really do make the grade.

Yea, a far cry from internet brokering, where we will not show the site, you will pay with BL, SGS report and Commercial Invoices are the terms spelled out by so many, but actually secured by so few, if not, none at all.

If I don't go to what you say you have, how am I supposed to know you have what you claimed you have?

Comments related to the post is welcome!

Sheikh query: Jul 20 2008

2011-11-25T19:50:00.003-08:00

I have been getting emails from some concerned Singaporeans, and also Singapore based folks asking about the posts I made about the Fake Sheikh.
I had been responding them one by one via email and this evening, I got an email from R requesting a telephone conversation.
R had seen the posting exchanges in vorras net, and tracing the posts, he came to the blog, and managed to get in touch with me, he is doing his due diligence on the Fake Sheikh.
I readily provided my experience on the Fake Sheikh, telling him in detail what and when the incident happened, and what did, was provided him a clearer picture of someone his organization may be working with.
Why I put him up?
His is an example of someone really doing his job, and his diligence will in fact save himself, his friend and his organization some time wasting, and unprofitable route.
Unfortunatley, as my earlier laptop was ravaged by viruses, the files I so painstakingly put together were unfortunately irrecoverably wiped out. I was not able to provide him documents and other additional information, but I guess the 10 minute conversation is suffcient for him to continue his diligent tasks, which the end will be inevitable if the police is going to open their files to his query, and that is dis association from the Fake Sheikh.
That said, it is also exactly why I am taksed with diligent operation, any mistake or any point I overlooked, will cost my organization, my team and myself, alot of wasted works and money.
I wish R all the best, and may he find real partners to work with soon.

Comments related to the post is welcome!

Ode to Scrap: trsf 21 Nov 2007

2011-11-25T19:50:00.001-08:00

I am nothing but a piece of junk,
served my duty, and salvaged from where I sunk.
I didn't know I will be the object of fun,
All because I am a piece of junk.

In South Asia, the brokers line,
up to 10 layers, sometime.
In the end, when the seller starts to find,
Every layer, wants from me, their share of dime.

East Asia, buyers seems abound,
Drop a stone, a broker's head will be found.
Everyone, from top to bottom in town,
Wants their share, adding the kickback to my price's mount.

South East Asia, agents everywhere,
With files and pictures, even talking at the stairs,
In coffee shops, hawker centers, talk of scraps in the air,
but for most, never seen me before despite talking off the chair.

From US, a self proclaimed seller started his pitch,
With 2 Chinese backers, someone he managed to hitch,
But he was unaware of a glitch,
He didn't really have me, and ended up in a ditch.

From Switzerland, a Belgium man launched his website,
Impressive, he have 20 or more men on his side,
Broken promises, and non payment then turned the tide,
Not a kilo traded, and now JG is in his hide.

All over the world, men talk of me in trade,
And with rising price, I am the subject of late.
But many, also met and accepted their fate,
For they who talked of broking, buying and selling, never saw me to date.

I am sitting in the yard, awaiting and rusting away,
I will be processed and recycled one day,
But people still try to trade me come what may,
All but some, will never ever see me, till their dying days.

To almost all, the world of scrap metal is a myth, most talk about brokering because it is available in the internet. Pictures are readily available, prices can vary up to hundred of dollars.
Why? Because most who talk about scrap metal, never really saw one. The nearest to scrap metal they saw are those they were about to throw away from their homes.
So how can they succeed in the world of scrap metal?

Sellers who weren't: trsf 21 Nov 2007

2011-11-25T19:49:00.001-08:00

By now I had my fill of Sellers who weren't sellers.
I really don't know why would people go through all the trouble to make a presentation of themselves that they have the scrap metal, when in actual fact, they do not have anything at all.
First I was with P.V., for all the moneys they asked upfront, they do not have the facilities to even accept them eventually. I had no choice but to break off from them.
Then, I was with G.M. from Switzerland. Along with agents from Holland, England, Switzerland, Belgium, Turkey, Malaysia, Africa, Hong Kong and China, I was listed up in the site as an agent from Singapore.
Impressive!
Only to find out some months later when the basic pay promised did not banked in, A GM who gave all sorts of excuses NOT to accept a term, and finally, being kicked out from the site by the English webmaster.
It was such a nasty world of Scrap Metal dealing.
I tried to deal in honest, straight forward, open and transparent manner, I won the trust of the people working with me, but I was not able to deliver, because, at the end of the day, I do not trust they sellers I was working for.
Not going ahead, and disengagement from the transaction was the only way to maintain the integrity of all the associates I worked with.
My brother closed deals for granite for the Singapore side, and he was able to do that because he was at the site, inspected them confirmed that they have the stock, did the diligence on the continuity of the stock, and then invited a delegation from Singapore to visit the site, with all pomp of police escort, proper reception and all.
As mentioned in earlier post, the Singapore side provided him an island offshore to stockpile his granite for the supply.
REAL money exchanged!!!!
My lesson, if I do not have 100% sure that the one I represent actually have the stocks, and is willing to provide access for me to inspect and bring delegation to see it, don't even bother to bring it up.
Don't waste time, don't waste effort, for all that stuff the seller say is nothing but a con job.
Don't bother at all.
Real sellers, don't have an iota of problem when they have the scraps in their backyards.
Take care and god bless!

Cowardice of men: trsf Nov 21 2007

2011-11-25T19:48:00.001-08:00

Some of you have been writing and calling me, mentioning about the the joy you had while reading my blogs.
Thank you.
Well, at least one thing is certain, either this is a sharing of experiences, or just plain entertainment for some of you related, or unrelated in the trade of scrap metal broking.
The reason I have been pretty quiet lately is because the one I was supposedly to be working for, the Swiss based Seller, had turned turtle.
For some reasons unknown and baffling, this man, I'll just initial him as J.G. offered me and some of my ex colleagues a contract that pay a basic salary and USD1 commission for every mtn we sell.
Sounds mighty good, I quit my job, and threw myself headlong into the organization from Oct 06.
The structure was that we report to a ~GM from England for scraps metal, while J.G. focus on Gold bullion trading, we were listed in the website as representatives from various countries.
The first month came, we were asked to submit our contacts to the HQ via the GM who communicated with us primarily for contracts and terms. Most of the colleagues complied, and from the very first month, we were not paid our salary, always getting one excuse after another.
I first notice dissent when my colleague from Singapore, quit and he told J.G. off when J.G. called him and asked him why he quit.
Then others muttered about the pay matter, but no one really took had the guts to confront J.G., I mentioned about the problem I have to the GM, and I got a call from J.G. demanding an apology to the GM and him, at that time I complied, hoping things will turn out better.
2 months on, after runnning out of excuses, the GM quit, not long after, the Webmaster threw in the towel, effectively removing the site, the reason, they were not paid from August 06.
J.G. then worked to set up an alternative site, citing that the previous was England based, and beyond his control. He wanted the group to stick with him, I had already started working as a Regional Sales Manager, and had given up the work for this Swiss Based seller, who promised repeatedly, but never delivered.
I mentioned about some of my experiences to a few ex colleagues, one of whom, forwarded the conversation to J.G., I received an email shortly from J.G., demanding another apology and that if I don't he will show me "The Power of Money"...
I wrote back to him, listing the whole episode and frankly asking him, what do I have to apologize for? I had copies of the contract, the emails of promises of payments, and now threats, and all I need to do is to turn it over to the police, and yet, I was supposed to be cowering under the threat of "Power of Money"?
I got nothing in reply.
The cowardly ex colleagues, who had suffered, were not able to stand up to this big obnoxious bully, who will hide and break communications at will when the going were not smooth, mere and meekly stood by, watched the proceedings, uttered and swear in silence and otherwise, responded to J.G.'s emails obediently.
Cowardice of men.
But great material for good read.

More scrap junks: trsf 21 Nov 2007

2011-11-25T19:47:00.003-08:00

Every now and then I get a call, an email asking me about my previous association with a seller I marketed for.
I stated again and again repeatedly, that for the 1 year I worked with him, I did not see any success from him and his brokers.
He asked for terms that put money upfront and yet offered little, if not, none proof of delivery, and stocks. After 1 year, and news of Banks rejecting even a modest transaction, I felt enough is enough. I quit.
You see, I was even asked to put up money to register as a broker to that organization, that, despite being a mandate and had issued more than a hundred Letters of Offer.
I guess I do not have to elaborate how I felt as I left the organization, it was one of relief and breakaway, and yes, that association is another scrap junk I came across

Fake sheikh: trsf 21 Nov 2007

2011-11-25T19:47:00.001-08:00

This is so drama!
I was introduced to a Sheikh, who claimed his dad was a royal in the UAE and that he was here in Singapore to start a trading company with Singapore as the regional base.
I met him through a Banker friend who introduced me to him as he had mentioned that he wanted Scrap Metal and other products. I was in the hotel room and noted that it was converted into a mini conference/ office room.
This was really something, the "Royal" work, eat, shit and sleep in the same room.
He sat there, going into a well rehearsed rumble of his father, the ex president of a state, his relationship with the current ruler, that he is the maternal cousin, surrendering the information without we asking for it.
He did not seemed intelligent, keep repeating things over and over again, and told us his plan for the office, the 63 staffs, the reporting heirachy etc...
For an initial meeting I was polite not to question him and played along with him. I was shown stacks of internet quotes, and was asked to quote him 300,000 mtn HMS 1 and 2 for 12 months.
I came back and reverted to him that the lowest I can provide was USDXXX, and the this "Sheikh"wanted another USD15 lower. I told him for that price probably the 3 Letter Florida based seller can provide, along with his conditions.
The next week were meetings of no conclusions, and the "sheikh"made us wait a minimum of 1 hour to a maximum of 2 hours before he came up to the appointed time.
And then on 18th December, he asked the suppliers to assemble for a meeting, I was requested by his secretary (a Factory Operator, I later found out to be), to bring more friends familiar with Mid East market for a possible attendance in the Muscat Convention in Oman in January, I brought 2 friends, one of whom a lady with vast Mid East experience.
She had earlier at my request sent a request for D2 for China, and was waiting for the "Sheikh"to reply to her with the supply.
At the meeting, the "Sheikh"told his story 3 times, much to our dis attention, and I nudged the lady to access him up, she wrote to me that he is highly suspicious, and doesn't seems to know what he is talking about.
My friend, S, found him repetitive, and queer.
3 of us decided after the meeting to run an extensive check on him, and we wrote to our contacts in Dubai, Abu Dhabi, Doha and Amman for assistance.
When the reports came in a couple of days later, we decided to confront him in his hotel room.
He had 3 helpers in the room when we walked in, and after the initial niceties, I proceeded to probe him about his family. I told him that a check revealed that the claims he made were not confirmed, and that we have comments and reservations about it, the "Sheikh"was indignant, and he felt that we are doing business, not checking household, he told me it is the woman's job to do that kind of thing.
"R"then said the Banks have a series of rejects for his account application, "S" told him that her offers to buy the oil were not replied after 6 days, and yet the "Sheikh" kept his charade about important and big businesses he intended to conduct.
"S"told him flatly, that he have nothing, to which, he was speechless, and could not respond. He then meekly asked us to leave the room as there is no more business to be conducted with us.
We have since made police report to dis-associate ourselves from him, coordinated with the Commercial Dept in Dubai who will be making reports to the authorities in UAE, Qatar, Bahrain and Oman.
This ends another episode of the people we meet in the world of fraud and con world of scrap metal trading.

Morphed Deal: trsf 21 Nov 2007

2011-11-25T19:46:00.001-08:00

As the title suggested, the deal with the US buyer, or should I say, reseller had morphed from a Used Rail termed deal of 30,000mtn x 12 to now, a HMS1 &2 SPOT deal.
That was the development at the moment.
Broker H and I were supposed to be contended with the SPOT deal, take the commission and no questions asked.
The issue of Rerollable was totally new, and not previously discussed during the Draft Contract presentation, it became an issue once the actual contract was presented and the Seller and Buyer were communicating.
Sounded fishy right? I certainly thought so too.
So what began as a manipulative coordinator, turned into a changing buyer, and now will conclude as a modified SPOT of a entirely different product from the one enquired.
And the reason the middle man (H) played the role he played, he told me, was that if he had put T and I together in the first place, we will not have a deal at all..
He may be right, but I am not for this method of approach, I'd rather end a deal there and there if conditions are not resolved then to go through an extended process. But then, I was not getting the results for the Bulk shipment as I will probably be having one now, even though it is a SPOT deal.
I realised the futile efforts, and need to relay information and the wait, albeit in a helpless manner for scraps of answer.
When I was offered a post to represent a SWISS based seller as one of the many Sales Representative world wide, I grabbed the opportunity.
At least the Seller is my boss, and I will be communicating directly with him on concessions, amendment to terms etc.. I am in the flow, rather than waiting for scraps of filtered information.
I can be contacted at fescrap@gmail.com, or Skype: jasonlbk for more details.
This US seller is an experience to me, and because of this, the need to go to the source is imortant and also direct communication.
For all the works, if you are not in control of the situation, you stand to be out of the flow. And excessive manipulation is potentially deal wrecking. I may be fortunate to secure some result by sheer virtue of the fact the seller is in fact a real seller, but there are so many out there who will get nothing at the end despite all the efforts.
Take care, and open your eyes.
Thread not when I went through and avoid the pitfalls I stepped.
I want to hear your success stories in the comments.
:-)
(Please note: I am no longer dealing in scraps)

More waiting: Transferred 21 Nov 2007

2011-11-25T19:45:00.001-08:00

I was a little tired of waiting, as you would following my blog on the subject.
I called the brokers in the deal to ask why the delay..
Then it dawned to me that the first buyer in the deal actually broker communication and had acquired the goods from other source. The supposed buyer LM is now getting a 2nd buyer to take oveer the negotiation, and hence the delay.
You can imagine the implication the broker, and the mandate was put under!
There you have it, instead of shifting seller, we have shifting BUYER!!
And no, they do not do any favours to the trade!!!!
Now what?
Renegotiate from scratch, and now, suddenly, the composition of R50 and R65 becomes an issue.
Yes, the buyer LM had begged us to initiate the deal and claimed to have ready LC to issue, it was sometime in August.
And now, they are standing on different platform, making different demand, all these after coming into direct contact with the seller.
Can anyone anticpate such a development?
It was largely thought to have the deal wrapped up, and now, another round of wrenching talks, confirmation, realignment before anything concrete can be accomplished.

Creeping along: Transferred 21 Nov 2007

2011-11-25T19:44:00.003-08:00

Up to this stage, it should not be just creeping along.
The whole deal is still bouncing back and forth, the truth is, my seller is now handling the US Reseller directly.
The percentile of Rerollable Rails were in questioned, and thus the deal from an annual deal is now relegated to 1 +11, which means the first shipment is now a SPOT shipment.
Closing the deal at this stage presented an enromous amount of problems with all the details being worked out. No wonder the seller is fuming and was questioning about the efforts of the brokers involved.
I don't want to cast a victim story here, being professional, I should be on top of the problem, but then the coordinating broker refused direct contact between me and the buyer's broker, preferring to deal it based on his own filtration which is now revealed as the root of the confusion.
Wily, and street as he might have been, but his actions caused the near collapse of the deal which is at this stage still in the danger of not going through at all.
This si infact the world of scrap dealing and I choose this transaction in particular to blog it real time so that readers can really understand the pains we go through just to see through a deal.
I learn everytime a case pops up, and you learn by reading my experiences.
Broker's life is tough, and it is compounded by selfish, greedy and individuals with personal agenda.
They don't help us close sales.

More terms: transferred 21 Nov 2007

2011-11-25T19:44:00.001-08:00

One of the problems of the brokering trade is the circumvention.
It can be either the Brokers who circumvent or the Seller/Buyer.
A prolonged waiting game is a potential powder keg to circumvention.
Why?
The excuses of going back and forth with the terms and conditions, and finally, no deal because the stocks were sold, or deal brekdown.
and sometimes later, the buyer and seller is in contact now, MINUS all the brokers who worked their nuts off bringing the deal together.
Now isn't that a sobering thought?
Why I have these thoughts? Easy, I am too damn free in the game of waiting nd being an observor in the ding dong swing back and forth conditional requirements.
How can I make myself useful?
How can I be involved in the swing, now that the seller and buyer are having such a fun on the swing, but without making any commitment?
It doesn't help that the buyer's brokers had a combined stake of USD4 as commission to every ton, which the buyer agreed to pay from his side..
That's USD120,000 per 30,000 mtn deal to be paid out for 12 months...
So despite all the MFPA and stuff between the buyer and the brokers for the buyer...that particular payoff may be prohibitive...
I guess I was speculating in an unhealthy manner, but then, I can't helped being pessimistic when the wariness of the wait wears in....

they talked: transferred 21 Nov 2007

2011-11-25T19:43:00.001-08:00

The latest update on the saga....
The teleconference between the Seller and Buyer was successful.
It iwas a fruitful 30 minute conference and the issues of Payment, Performance and shipment were discussed in depth between the seller and the buyer.
Broker's role ended, and now the main party will move on.
The feedback I got from the Buyer's mandate was that the deal is on and that confidence prevailed following the teleconference.
The coordinator who payed filtering did his job in engaging the parties with much differences, to see a common goal.
But he
may have filtered a tad too much to create a furore and also much distrust.
Will this deal actually see the finishing line?
I guess so, for the amount of confidence generated from the teleconferencing, with an experienced buyer and a real seller based in Swiss, and with a dozen yards in CIS/Ukraine.

Teleconference: transferred 21 Nov 2007

2011-11-25T19:42:00.001-08:00

I just got a call from the coordinator.
Apparently the assurance and the Draft Contract issued by the Seller is assuring and there is now a sense of security in the deal.
The seller had acknowledged Kabesteel's role and is in contact with the buyer's agent. The seller had also suggested a teleconference so that vital information can be exchanged and it seems the US buyer is pretty upbeat about the matter.
I have no objection and had the mandate of Kabesteel included in the Teleconference.
Seems that the Coordinator, the Buyer's broker and also the buyer had checked out the Seller and is displaying confidence previously unseen from them.
I will keep blogging this deal till the final outcome so that I can share the actual experiences with the readers in the blog.
Watch out for more updates!

Development: transferred 21 Nov 2007

2011-11-25T19:41:00.001-08:00

For some waiting for the outcome of the deal, there is a new development.
Well, first and foremost a summary of what happened.
1: Buyer signed and send the contract WITHOUT seal directly to the holding office in UK
2: HQ informed mandate that they did not receive the Contract
3: Buyer's broker worked to provide a copy to us (mandate) about the cotnract they sent
4: Buyer's coordinator turned abusive and it was apparent that he had been filtering information either way, to the buyer and the seller's reps
5: Buyer's rep got in touch with Mandate who got in touch with holding office
6: Fianlsied Draft now send out with Seller's full disclosed signature and seal
7: Now awaiting buyer to finalise the contract

The problem was that we had a coordinator who wanted the deal to be completed, he took the liberty to filter information and alos to influence both the buyer and the seller's reps.
He was successful in getting some and to steer the deal from a apparent 2 sides to a middle ground, in other words, up to certain stage.
But he turned abusive when apparent misunderstanding and reluctance occured.
No way the seller is accepting a contract with a scratch and no seal, we are talking about Millions of Dollars business here!! of course the mandate will be reluctant to proceed les he will be taken to task for accepting a shady deal.
Abuses like B.S and F**king were liberally used by the middle man.
Frankly, I will not respect him as much now as I would given what happened.
Meanwhile the deal is very much alive, and the Seller is very much real.

Waiting Transferred on Nov 21 2007

2011-11-25T19:40:00.001-08:00

The stage is now set to waiting.
Yes, the buyer from US had put his signature into the contract.
Instead of sending it through the internet, the buyer is sending the contract through courier services.
This, if if comes, will be the final sealing of agreement before issuance of LC.
When the seller recieved a Non Operative LC, the buyer will be invited to the Office in Swiss and all documents pertaining to previous performance as well of stock records will be provided for the seller.
That will dispel all doubts.
Now, the wait for the documents in the Swiss office

Saga continues Nov 21 2007

2011-11-25T19:36:00.003-08:00

I am seeing some breakthrough after constant coordinating and communication.
There seems to be some compromise on the buyer, who have seemingly able to overcome their apprehension.
The Seller is allowing Swiss Office visit to show all the previous documents the moment they recieved the Non Op LC or RWA.
At least they are moving closer to complete the deal.
It has taken a journey from 21st May till now to move to this near, and i will keep plugging to ensure they finish at the finishing line together.
Compromise will keep the deal, any pulling back now will leave it cold.
Will update on development if you are keen!

Team up Nov 21 2007

2011-11-25T19:36:00.001-08:00

I have written about my team of International brokers.
We are allied and kept information flow to support each other.
2 of the members are in India, 1 in Turkey, another in Jordan and me, in Singapore.
The team have regular exchanges in the trade and each have their own clients and supply contacts.
We regular pass information on sellers and buyers, on what repute or dis repute they have, what to look out for and also, what current offers each have.
Whats most important, is with the team, we have access to different parts of the world and if a client required a service, it is possible and relatively easy with our team's spread over teh world.
We are now appraising some new sellers, and checking out on the procedure and determining if the team will or the member individually to promote the product.
What I am trying to say is that if you have the chance to develop a team of your own, please do not hesitate to do so.
Support is important as it is, and services the network of the trade.

Filtered LC by broker Nov 21 2007

2011-11-25T19:35:00.001-08:00

I written about the current impasse I am experiencing with the US brokers.
Sometimes I really don't get it, why would someone go ahead in the deal when they have expressed disagreement from the buyer with the procedure?
How can an experienced broker feel the sequence of Non Op LC first then Non Op PB should be PB first then LC, but did not bring the matter up, only to reveal it at the closing stage?
I am currently said to be upset by the buyer's broker, and that I should accept the fact that it happened, and should find a way so that the buyer can proceed. (A compromise?)
The broker had filtered my communicated procedure, thinking it was not important, and now it is threatening to become a deal breaker! And, I am now said to be not thinking properly, upset and that my actions are threatening the deal!!!
Nobody gave the broker T the right to tweak the procedure, when T realised that the seller's payment term and the buyer's term are in descrepancies, he could have resolved the issue!
T had the chance, in the coordinating broker H's word to go through the Draft contract "a hundred times", and though he was aware of the procedure for payment, he did not have the gut to face it, leaving it up to the last moment, and now threatening the deal.
How can I not be upset?
Right now, I am only asking that the Buyer seal the contract, so that I can lodge the contract with the seller and get the banks to communicate to find an acceptable way or provide enough relevance for the buyer's back to issue the LC.
And hope that it will seal the deal.
Now hope should not be the word to used, had the broker T played the card in a forthcoming manner.
This is professional rubbish.

LC Issued Nov 21 2006

2011-11-25T19:34:00.001-08:00

I was contacted by my friend the other day about a shipment he have in China.
Apparently a shipment of 31,000mtn of 5800-5500cal coal was shipped to China recently.
And on arrival, the LC which was supposed to pay up did not, for some reasons, pay.
The broker, the shipper, the seller were all in a fix.
Now that they have a shipment of coal from Kalimantan, parked in a Chinese port and are looking for a buyer to take over the stock, FOB China.
I found the story interesting to as how is it possible for the seller to get into that kind of position.
It is also an important reminder that we shouldn't be allowed to be persuaded to accept payment after arrival at the port of destination.
The situation is one that the stocks are in China now, and the seller is at the mercy of the buyers in China, which in my previous email about coal, have a particular system with the procurement of coal.
Chinese percularity was one of the reasons I stopped offering coal.
So please take heed from the event.

LC but no payment Nov 21 2007

2011-11-25T19:33:00.003-08:00

Mass Request Nov 21 2007

2011-11-25T19:33:00.001-08:00

How many of you received request to buy from someone who totally have no idea of?
What were you feeling when you received these requests?
For me, I normally and almost certainly to remove them.
I got tons of sex related emails and alot of query for alibaba abd recycline daily.
The non professionally related ones were removed without a hitch and the forum's will to acessed bfore I will reply or choose to ignore them.
Coming back to the SPAMMED requirements.
If they sent to me this way they will send to anyone this way. I really doubt it will be effective, but then, hey, it is their way of doing business.
And their potent tool at their disposal is the computer!
How many of you sent them enmass?
The recipient of your email will be feeling the way you did when you got one of those junked scrap metal email.
Mass emailing will not get you your client, they always turned me off.
SPAM irks!
I look at a gradual building of relationship as integral to the network, you must be prepared to share and communicate over period of time before the client is comfortable with you, so when there is an opportunity, you will be informed.
Keep SPAMMing away from the trade, and start building professional relationship now for you future betterment.

Confusing Prices Transferred Nov 21 2007

2011-11-25T19:32:00.001-08:00

Transferred from another blog actual post date unrecorded:
One of the most interesting point to note in the world of scrap metal trading is the amazing differences in prices.
Yes, on one end, prices from US and Europe generally are higher, and documented, likewise with some of the periodically circulated price indicators from ISRI etc...
But we still have people out of the street asking for prices 20%-30% below the officially reported and transacted price.
How can this happen?
Looking back, you will note that some of the reasons are targeted prices a trader wanted to buy because he had already sealed a contract and now to secure the product at the price he will make a profit.
Or it is the price a broker is putting up to attract attention, then to proceed to offer other seller's product because the buyer cannot purchase under low priced seller's terms.
What's more, a scam and con, eager to prey on naive buyers who have only cheap buys on their mind. They put up a site, a visit, got the buyer to go to it, took the deposit for cutting, arrangement set up, then disappear, the buyer later will note that the purported seller was not authorised to deal for the site.
Sounds familiar?
The question is, how many transactions actually succeed with the low prices?
Seriously, none that I know of, please let me know if you are aware that such a deal indeed existed.
That said, the market price will be the market price, as the word suggested, it is the price transactions are closed at.
I know I did mentioned about the 3 lettered Florida based Seller who was selling at unbelievable prices earlier, but NO broker, buyer or anyone can accept their trading conditions.
Isn't it as good as no such thing?
My point of view, low and attractive pricing is like a spring trap, easy access to the bait, and then, OUCH!

Buyer who isn't Jul 24 2006

2011-11-25T19:31:00.001-08:00

Tuesday, 4 July 2006
Not too long ago, an associate was talking to a Singaporean seller about the supply of Used Rails, after engagement, and all, he forwarded me the contact to follow up with diligence check on his behalf.
I was asked to assist in the contacting of the party and to go on to ask about the so called claim of having previous shipment records which the seller claimed that it is only available in the office and for the buyer's eyes only. The seller had offered terms so mouth watering and site visit was readily available after the LC is issued.
Got in touch with the seller's contact who was surprised to hear from me. A few quick questions and the result was conclusive. The seller is the same who failed my Jordanian contact 5 times, and is also well known in the regional circle for not performing. The broker's boss called me later and claimed that he have everything to prove, and I told it was not a problem to me so long as I can see the BL. I was told that the BL were sanitized and the shipper and the buyer will not be seen.
I asked about the seller, and if the seller's name in there, I was told again the Seller's particular were sanitized too. I then told this Francis that, BLs like this, I have more than 20 of them. I went one up and told him that I have some with the sellers' names clearly printed and unsanitized.
I don't know why so called seller like this persist to doing what they did CONSISTENTLY, this is baffling as they obviously do not have stocks to sell, no access whatsover and yet they offer everything, Petrol, UREA, Scraps and almost any commodities under the sun.
I strongly suspect that they are ready to fail, and took the window of the issued LC for whatever financial purposes they have on their agenda. The problem is it will take some time to recover those LCs issued by the buyers.
So please, if you have your contacts in the countries you deal with, always get them to do the diligent checks for you, they'll will probably save you alot of anxiety and heartache.

Procedures 17 Jun 2006

2011-11-25T19:30:00.003-08:00

I am very sure those who deal in the trade experienced this frustration.
There we are, the seller's term and conditions spelled out and offered to the market.
A Buyer expressed interest, but when the LOI came, the procedures are not according to what the Seller's offered procedure.Why would anyone want to do things like this in the first place?
As far as the Seller is concerned, this is International procedure. And for the Buyer, he have been buying scraps under that procedure, although this is the first time he is buying Internationally he will not change his familiar buying method.Who is at fault? My point, the broker who brought the deal, as a broker, you don't just throw the LOI you got to the one who offered the material just like that.
Please check carefully, if the procedure is in adherence to the materials offered, if there are minor procedural changes, you can go ahead, but if the procedural differences is too great, especially in payment terms, PB upfront, please check before you submit.
You won't want to exposed your client with a not accepted LOI, only to let the seller to go direct to strike a compromise.
So please be careful, play the role with filtering the right message and communication, and get the deal done correctly.

Trial and Annual Jun 13 2006

2011-11-25T19:30:00.001-08:00

Tuesday, 13 June 2006
I kept getting query on Trial orders.Seller is reluctant to do so, as it is also one delivery and disengage option.
If so, the buyer probably is going for SPOT under the guise of an annual but trial (test drive) contract.After much discussions my seller came up with this option:ADD USD22 to the annual price for the "Trial".In other words:Our price: USD222 for Used Rails for 30,000mtn x 12 months.
"Trial" price: USD222 + USD22 = USD244
2nd to 12th months monthly price: USD222-USD2= USD220.
Even it out, still an average of USD222, but if the buyer is trying to make a sucker out of us, he pays USD244 for his SPOT buy.
It stumped quite a few enquirers, which, let us concluded that the jokers were indeed looking for SPOT, get the first shipment, disengage, then do whatever they planned to do, which can be: a SPOT requirement: Circumvention, once they got the yard, they will approach directly for the rest of their requirements.
So do you think we will give them a free ride?

Changing Seller: June 8 2006

2011-11-25T19:29:00.001-08:00

Thursday, 8 June 2006
This scene repeatedly played time and again.I had an associate who quoted " Competitive Prices" and fantastic procedures; ex BL will be shown after acknowledging the FCO, also prices at USD200 for Used Rails and USD190 for HMs 1 and 2.Very interesting, I guess he must be making brisk business, I asked for more information, I was not able to get them much, as the "MD" was closed to the supplier and the Supplier has performed time and again.
I did not put too much efforts in the marketing knowing some trouble might surface, instead, I told the broker to check prices as I had known about the price spike from some Sellers with yards in Europe.
It wasn't long, a new price list emerge, a hefty USD20 jump in prices, and what's more, the procedures changed.Gone were the BL showing, yard visit and PB upfront, now: Loading Port Visit, PB after Non op LC, oh yes, there's no mention about BL anymore.The associate still insist that the MD is still dealing with the same seller, and that nothing has changed. :-)
I cannot agree AT ALL!
Classical case of Seller who is not the seller, probably have multiple suppliers and none exclusive.The problem, not exclusive, what makes you think they will support you when you have demand?
What's more, it is a case of middle man trying to play seller, mere mortal trying to play God, with of course tons of limitations.Another incident, I have another joker who present an offer from an Indonesian seller (Do they exist?), it must've been extremely exciting to warrant a sickly old Taiwanese man and his son to fly into Singapore to meet the fumbling broker.
By the way, the Indon seller don't seem to be able to be in touch when he was most needed, and of course, the client was in the lurch.The fumbling broker called me in out of desparation remembering me at the last moments before the world crashed around him.I was persuaded to meet the man, which I reluctantly did, knowing the kind of problem I will face, presenting a different selling procedure, BEING part of the problem of Changing Seller.
Well, a powerpoint presentation and mandate letter plus recent authenticated photos shown to the buyer appeased their anguish, prices was acceptable and the shock of procedural change, he was promised PB before LC and site visit, which I am not providing.I left the exchange between the parties, and took my leave.Following morning I was contacted by the son and was requested to attend a meeting to formalise my offer before they go back to Taiwan to explain to the Mill why 2 conditions cannot be exercised.At least now they have something conrete to go back with, and they were pretty sure that they can overcome the problem.
We were all caught in the game of changing seller. I only relented on knowing that the buyer's rep flown all the way to Singapore for the deal.The old man had only 1/4 of his gut left after a major operation and he was down from a healthy 60kg to a sickly 47kg, and yet he was in Singapore to close the deal.
So dealers out there, please, for heaven's sake, be consistent with your offer and games of changing seller are

Up in smoke

2011-11-22T18:47:00.000-08:00

For almost 5 years, I have been writing on this blog, 5 long years of entries, stories, encounters, blogs about the earliest entry into the world of internet brokerage, where I first got a taste of someone trying to sell something from somewhere they have not been to, selling the stocks they do not know, and simply a group of internet users trying to strike a deal on something they do not have access to.
All the accounts I painstakingly put together, all up in smoke.
I am frantically trying to get them back, tried as I may, I can trace only up to 2 years ago, but the real story will be the earlier ones, I have so many readers writing to me to tell me the sharing had benefited them and that they learnt alot from my experiences.
The story of the fake sheikh Al Mansourie had alot of interests, and i got alot of sharing too about the readers' experiences with the fake sheikh.
Isn't that exactly what blogging is all about?
Why Google will just take them off just like that?
All up in smoke.

Wait

2011-11-18T14:10:00.000-08:00

We have been waiting for almost 3 months.
All because of some incompetent new official who changed the whole core staff to a batch of new one with no knowledge nor experience.
Yes, and that is affecting the economy here.
All paperworks stopped, because the elected one is also unsure, of what to look for in order to give the final approval.
It is strange the system here in Indonesia, every place seems to have different set of rules, different set of requirement, and that stems to the general autonomy of the region it is granted. The local officials have the final say.
This is where the headache all there is.
If the incompetent man is hell bend on trying to secure a hefty payment for himself, he can make things very very difficult.
We have been waiting for almost 3 months.

Waiting...

2011-11-12T23:16:00.000-08:00

Cannot believe the problems faced in Indonesia to get our works done. First the usual bureaucratic clearances, we thought, ok, done now. But then coming down to the local area, a whole load of clearances are required, you need clearances for moving the vessel from point A to point B, the men's working VISA which is payable monthly, renewable every 3 months. Every month, you need movement clearances for the vessel, and every 3 months, clearances from Port, Marine and Immigration authorities before we can apply for VISA extension.
All this without guarantee we can operate. And we have been paying for 6 months all the freaking while waiting for that one bloody signature from the man in charge of the part of the province.
What is he thinking? Making things difficult for the investors? We spent the whole GOOD season just waiting, and now the season is over, the waves started crashing into the shore, we are still waiting.
Never had we experienced such a wanton waste of resources anywhere in the world. Never had we operated in a region where every clearances are needed, from Central Government, to Provincial Government, to all related and UNRELATED authorities, to area, municipality to kampong desa in the area.
We still await the BUPATI's final approval, despite already have all the necessary documents to move out.

Disheartening

2011-11-07T15:39:00.000-08:00

Since 2006 I have been writing on this address in my blog.
And sometime this year, I cannot access it, despite following the procedures to reactivate the blog, all my entries are missing.
All the years' work.
Blogspot, you blow it big time.
I really don't know how to start writing again.