Japan Copper Smelters Accept Lower Treatment & Refining Charges

Japanese copper smelters agreed with offshore miners to reduce the treatment charge to US$ 50-55 per tonne and the refining charge to 5-5.5 US cents per pound for the year to June 2008 at the mid-year negotiation. The charges are 8-16% lower than that at year end negotiation for 2007-2008 shipment. Some miners agreed to keep the price participation system to share the profit from higher copper ingot price with smelters.Chilean Escondida owned by BHP Billiton agreed with Pan Pacific Copper, which is joint venture of Nippon Mining & Metals and Mitsui Mining & Smelting, for the charges at around US$ 55 per tonne for treatment and around 5.5 US cents for refining. Ok Tedi mine of Papua New Guinea also agreed at the level last week. Highland Valley mine of Canada owned by Teck Cominco agreed with Japanese smelters at around US$ 45 per tonne of treatment charge and around 4.5 US cents of refining charge. The mine also agreed to keep the price participation system with 1.5% of additional increase and limit to 4 cents per pound when copper ingot price increases more than 150 cents per pound.