Securing Stable Supply of Copper Concentrate
LS-Nikko Copper Inc., Korea's largest non-ferrous metal company, has made a long-term copper concentrate purchase agreement with BHP, the world's largest mining company in Australia.
The two companies held a signing ceremony at Lotte Hotel in Ulsan, Korea, on Oct. 12 with the attendance of LS-Nikko CEO Doh Suk-goo and BHP Minerals Americas president Daniel Malchuk.
The term of this contract is five years, and the total volume of the deal is 1.65 million tons, the largest since the launch of LS-Nikko.
LS-Nikko will receive 330,000 tons of copper concentrate from Escondida copper mine in Chile per year from next year to 2023.
LS-Nikko is planning to produce about three trillion won worth of non-ferrous metals, including 500,000 tons of electrolyte copper, precious metals such as gold, silver, platinum and palladium, rare metals, sulfuric acid and hig-purity sulfuric acid.
"After signing a 10-year contract with Minsur S.A., a mining company in Peru, in September, the company has concluded another long-term contract with BHP. These deals will help us secure a competitive edge in the global market," the company said in a statement.
BHP, in particular, increased the volume of its copper concentrate supply from 250,000 tons a year to 330,000 tons in this contract, and concluded a five-year contract, while the industry norm is a contract for less than three years.
"LS-Nikko has firmly established itself as one of the world's top companies through strengthening environmental safety and stabilizing operations despite the global economic crisis," said Vicky Binns, BHP vice president marketing minenals.
“We will continue to strengthen our competitiveness in smelting to grow as the best partner for BHP," said LS-Nikko CEO Doh.