MCC-SW-L-0006 (2).pdf

MHC
METALLURGICAL CORPORATION OF CHINA LIMITED
Our Reference: MCC-SW-L-0006
Date: 27th December 2018
Siberwood LLC
119180. Moscow,
B. Yakimanka Str. 22, pom. XV
Attention Mr. Otto Pichler
CC: Mr. Sergey Kulagin
Re: Request for Second Payment of Pre-contract
Dear Mr. Otto Pichler
With regard to the execution of the Pre-contract, due to the uncertainties around the technical
olution to be chosen for the whole pulp mill, the pre-engineering work of Andritz, Siemens has
been suspended; as a result, MCCS work to review in relation to Andritz and Siemens as well as
work with Energoprojekt had to be suspended
Nevertheless, as reported to you at our office in Beijing on 1 4th December, 2018. in the course of the
past several months, our company has spent a considerable amount of resources for the execution of
the Pre-contract. For the technical documents submitted by Andritz and Siemens. we have provided
several times our comments, a lot of which have been incorporated into the updated documents
However, due to the possible changes in the technical solution for the whole pulp mill, the technical
documents that have been reviewed by our side, still can not be confirmed or approved at the
current stage
Besides, we have sent our engineers and cost estimation personnel to St. Petersburg, and had
technical
discussions with relevant personnel from Siberwood, and also had several rounds of
negotiations and discussions with Russian local companies on technical and commercial issues o
the works and prices to be included in the EPC contract, as shown in the various minutes of
meetings and price comparisons that were prepared for your company; For Bop, we have also had
extensive negotiations and communications with Chinese companies, and have submitted to your
side the Bop prices and technical proposals
What's more, in accordance with the stipulations in the Pre-contract, and after several rounds of
communication with your side, we have prepared design concepts for the construction camp of the
Site, and proposed potential design companies for your approval
Moreover, to get more information for logistics arrangement, the logistics team of our company
visited Russia, and carried out field investigations starting from the sea port of St. Petersburg to the
construction site in Krasnoyarsk, and then all the way to the border with China