Caravelle International Group announced the signing of an innovative manganese ore sourcing agreement with CUEX Metal AG. This partnership not only ensures CUEX's stability in the global manganese ore supply chain, but also marks a substantial step forward in the cooperation between the two companies in the wood drying business. Under the agreement, Caravelle will supply a total of 4.5 million tons of high-quality manganese ore to CUEX through its subsidiary, Singapore Garden Technology Pte Ltd, with supply schedules of 1.0 million tons in 2024, 1.5 million tons in 2025 and 2.0 million tons in 2026.

The manganese ore must be of stringent quality, with manganese content (Mn content) at or above 38% to meet CUEX's high standards for raw materials. Prices will be negotiated based on international market prices and a written single purchase and sale agreement will be formed to ensure transparency and fairness of the transaction. CUEX will pay the full amount through an irrevocable letter of credit, demonstrating its financial strength and trust in its partners.

The delivery terms follow the CnF (Cost plus Freight) clause of Incoterms 2024, which guarantees the smooth delivery of the goods to the designated port and bear all the costs and risks in the process of transportation, and CUEX will need to take out full marine insurance for the goods to ensure the safety of the transportation process. CUEX is required to insure the goods with sufficient marine insurance to protect the safety of the goods during transportation. The highlight of this cooperation is an innovative business model that the two companies have explored together: the transportation of manganese ore and the drying of wood on the same carrier.

This model not only improves transportation efficiency and output and reduces logistics costs, but also opens up new market opportunities for Caravelle's wood drying business. Through this innovative synergistic approach, the two companies are optimizing the allocation of resources, promoting environmental sustainability and generating additional economic benefits, Caravelle expects to earn close to $400-500 million annually through the partnership with CUEX, which includes the combined revenues from the trade and transportation of manganese ore, and the trade, transportation and drying of timber. Caravelle's total revenues are expected to be in the range of $1.2 billion to $1.5 billion over the three-year term of the partnership.

CUEX officially expressed the cooperation with Caravelle not only provides a stable supply of manganese ore, but also opens up new possibilities to explore business in the field of wood drying. They look forward to creating more value for customers through this innovative partnership model.