Pan Pacific Copper Seeks Synergy

Pan Pacific Copper, which is copper smelting joint venture of Nippon Mining & Metals and Mitsui Mining & Smelting, tries to extract synergy from newly integrated operations from the parent companies. New president Eiji Kato said the firm focuses on synergy and integration after the firm integrated Saganoseki smelter of Nippon Mining & Metals and Tamano smelter of Hibi Kyodo Smelting, at the interview with Japan Metal Bulletin. Mr. Kato said the firm tries to improve the competitiveness by stabilizing operations of Saganoseki with 450,000 tonnes of output capacity and Tamano with 260,000 tonnes of capacity. He said the firm eyes additional capacity after the stabilization. He said the firm now focuses to stabilize the operations when the lower grade ore needs more treatment facilities including byproducts treatment. Mr. Kato said the firm might have to accept certain price hike for copper ore at the mid-year price negotiation with miners under tight supply. He said the firm tries to secure profitable treatment and refining charge when the firm operates with less profit at current US$ 60 per tonne of treatment charge and 6 US cents per pound of refining charge without price participation system. He said the smelters and miners should share the earnings from higher copper price. He indicates the firm will seek to resume price participation system when the ore supply gets easier in a couple of years.