Every document in a copper deal, in the order you will meet them

Copper deals come with a lot of abbreviations. Here is each document in plain words, roughly in the order you will see them.

Before the deal

NCNDA: non-circumvention, non-disclosure agreement. The parties promise not to go around each other and not to share each other's contacts. Signed first. See NCNDA and IMFPA.

IMFPA: irrevocable master fee protection agreement. Records who earns what commission, how it is paid, and by whom.

The buyer's intent

LOI: letter of intent. The buyer states what they want to buy, how much, where and on what terms. It is not binding, but a serious LOI is specific.

ICPO: irrevocable corporate purchase order. A firmer statement of intent from the buyer. Despite the word "irrevocable", it is rarely enforceable by itself.

The seller's offer

SCO: soft corporate offer. The seller's first written offer: product, quantity, price basis, location and procedure. See real vs recycled SCOs.

FCO: full corporate offer. A more formal offer, usually after the buyer's LOI or ICPO, with full terms and the documents the seller will provide.

The contract

SPA: sales and purchase agreement. The contract that matters. It fixes product and specification, quantity, price formula, incoterm, inspection, payment, documents, and what happens if things go wrong. Changes after signing are made by a signed amendment.

Proof of the goods

Warehouse receipt or SKR. Proof that a warehouse holds a named lot for a named owner. See warehouse receipts and SKRs.

COO: certificate of origin. States where the copper was produced. One of the most forged papers. See fake certificates of origin.

Mining and export licences. Show that the producer may mine and the exporter may export.

Inspection certificate. Issued by an independent inspector such as SGS, Alfred H. Knight (AHK), Alex Stewart, CCIC or Bureau Veritas, on quality, weight or both. See inspection certificates.

Assay report or certificate of analysis. The laboratory result showing copper content and impurities.

Payment and shipping

Letter of credit (MT700) or standby letter of credit (MT760). Bank instruments that secure payment. See letters of credit.

Commercial invoice and packing list. What is being sold, at what price, in which bundles, lots and weights.

BL: bill of lading. Issued by the shipping line when goods are loaded on a ship. The original bill of lading usually controls who can collect the goods at destination.

What to remember

Documents prove different things. A certificate of origin proves origin, not ownership. A warehouse receipt proves storage on a date, not quality. An inspection proves what an inspector saw, not who owns it. You need the set, checked against each other, and confirmed with the people who issued them.