Fraud Prevention & Risk Mitigation Directives
Guidelines to eliminate fictitious mine allocations, fraudulent assays, and non-viable broker chains.
⚠ 1. Mining License & Advance Fee Demands
Legitimate mining concession holders and Tier-1 trading houses do not ask for upfront fees for “export licensing,” “port pile allocation,” or “freight guarantees.” Advance payment demands indicate fraudulent activity.
⚠ 2. Unrealistic Off-Market Fixed Pricing
Seaborne iron ore trades strictly follow Platts IODEX or TSI benchmarks. Offers featuring deep fixed discounts off index prices are non-viable.
⚠ 3. Fake Assays & Non-Bank POP Documents
Quality certificates or POP documents shared as PDFs over unverified channels carry zero legal standing. Authentic POP is transmitted strictly bank-to-bank via SWIFT MT799/MT760.
⚠ 4. Unverified Broker Chains
Buyers must submit a fully executed Client Information Sheet (CIS) and Letter of Intent (LOI) directly through accredited trade desks to protect against chain distortion.
Have an iron ore offer that needs verification?
Submit the commercial structure and counterparty documentation to the Chelet trade desk for review before proceeding.