Customers

Activities to ensure customer health and safety

Customer health and safety is important for all businesses and remains an utmost priority for Philex Mining Corp. (PMC or the Company). In line with PMC•€™s Code of Business Conduct and Ethics, the Company upholds fair and transparent dealings with its customers. All the transactions and business relationships with customers are covered by contracts and comply with existing laws and regulations in the country.

As part of the Company•€™s commitment to the welfare of its customers, Company representatives and its customers meet annually to review and discuss the terms of the new or existing contract as well as identify areas for improvement in operations and other related aspects. The following are the activities conducted to ensure the health and safety of the Company•€™s customers.

  

Product Safety

Prior to shipment, the concentrates (the product) undergo a thorough chemical analysis required by the customer (Pan Pacific Smelting Co., Inc.) to ensure that these are free from foreign materials that may be deleterious to the customer•€™s health and operations.

The Company insures the product with an internationally-recognized insurance company, in favor of the customer, and shall provide the customer with a certificate signed by the insurance company indicating the details of the policy.

The Company ensures that the quality of concentrates for shipment to the customer is suitable for ocean transportation in bulk and meets the requirements of the International Maritime Organization Code of Safe Practice for Solid Balk Cargoes.

  

Safety of Travel

The company assumes the obligation of providing the vessels, suitable for the shipment of the concentrates, with the following specifications and conditions:

  •  ·                 a single deck bulk, seaworthy in all respects
  •  ·                 with clear holds and hatchway suitable for normal grab discharge
  •  ·                 classed as 100A at Lloyds or equivalent
  •  ·                 compliant with the ISM code
  •  ·                 be no more than twenty (20) years of age; and
  •  ·                 able to meet berth accommodation restrictions

The Company shall notify the buyer of the date of sailing •€“ confirming the name of the vessel, weight of concentrates loaded, stowage plan and estimated time of arrival at port of unloading •€“ with due consideration to the suitability of weather conditions for a safe travel.

  

Customer Safety

To cover for any harm or damage that the shipment may cause to the customer, an insurance policy, with an agreed upon coverage and in favor of the customer, is secured from an internationally-recognized insurance organization.