Chile’s Antofagasta Plc and China’s Jinchuan Group copper smelter agreed on copper-concentrate supply contracts for 2024 that set processing fees 9% lower than the current year as the supply of mined ore declines and processing capacity expands.
Smelter fees, known as treatment and refining charges, have been set at $80 per ton and 8 cents per pound.
Compared to a six-year high of $88 per ton and 8.8 cents per pound for 2023, this is the first decline in fees in three years.
The deal is important for the global copper industry because it could become a price determinant for millions of tons of copper ore supplies.
The first agreement between major mining and smelting companies traditionally serves as a benchmark for the rest of the industry.
Copper is mostly used in construction and industrial applications.