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Long‐term Bauxite Sales Contracts

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  • DUKE E. POLLARD

Abstract

The Long‐term Contracts (LTCs) used in international bauxite trade appeared largely as a response to changing conditions in the industry. These conditions were dictated by the spread of economic nationalism in developing countries and the growth of inflation in the world economy. These instruments are designed, on the one hand, to secure for the buyer access to feedstock on a predictable basis; on the other hand, they provide the seller with assured market access and a reliable stream of revenue. Consequently, LTCs are being used as collateral in financial transactions. Given the long duration of these agreements, the parties involved must exercise care in formulating provisions relating to prices and quantities in order to be able to make intelligent investment decisions.

Suggested Citation

  • Duke E. Pollard, 1985. "Long‐term Bauxite Sales Contracts," Natural Resources Forum, Blackwell Publishing, vol. 9(1), pages 25-32, February.
    • Handle: RePEc:wly:natres:v:9:y:1985:i:1:p:25-32
    DOI: 10.1111/j.1477-8947.1985.tb01037.x
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