BHP will rise in 41% commissions to Chinese copper foundries
Foundries and Anglo-Australian BHP agreed treatment and refining charges of US$ 99 a ton and U.S. $ 9.9 cents per pound
The BHP Billiton mining company agreed to pay an increase of 41% in commissions of copper processing to large China foundries in the first half of 2014, sources said, in a sign that these companies are in a strong negotiating position with the rise concentrate supply.
Foundries and Anglo-Australian BHP agreed treatment and refining charges ((TC / RC, for its acronym in English) of US$99 a ton and US$9.9 cents per pound for term concentrate shipments in January to June 2014, said on Monday two foundries sources.
This compares to U.S. $ 70 and U.S. $ 7 cents negotiated by both parties for shipments in July to December 2013 and is above the 2014 reference rate for shipments throughout the year.
The rise in fees reflects an unexpected increase in the global supply of copper concentrate market next year. A greater supply of concentrate would encourage foundries to manufacture more metal, which could weigh on copper prices.
The charges are higher than the 2014 benchmark of U.S. $ 92 and U.S. $ 9.2 cents agreed between Chinese foundries and other mining companies as Freeport-McMoRan Copper & Gold Inc.
However, they are lower than the TC / RC spot around U.S. $ 130 and U.S. $ 13 cents for standard clean concentrates to China.
“We have arranged with BHP at $ 99 and U.S. $ 9.9 cents for shipping mid-year,” said a source at a large copper foundry with direct knowledge of the deal.-
A manager from another large company said he had signed the same TC / RC with BHP and would continue negotiating with the mining company for shipments throughout the year.
BHP had not given a new figure for full-year shipments to China after foundries last month rejected the offer from the mining company of U.S. $ 80 and U.S. $ 8 cents, source added.
“We do not comment on prices,” said a public relations manager of BHP in Australia.
Source: La Tercera
