Japan Cu Smelters Agree with BHP Billiton for Lower Charge

Mitsubishi Materials and Pan Pacific Copper agreed with BHP Billiton to reduce the smelters’ charge by 38% for copper ore purchase in 2010-11 from previous year. BHP Billiton sought originally 43% cut but the smelters rejected the wide cut. They finally agreed to the level as agreement between Japanese smelters and Freeport-McMoRan Copper & Gold.

Japanese smelters and BHP Billiton, which is owner of Escondida mine of Chile, agreed to reduce the charge to US$ 46.50 per tonne of treatment charge and to 4.65 US cents per pound of refining charge. The smelters revenue is total around US$ 263 per tonne for copper ingot. BHP Billiton gets US$ 7,237 per tonne for copper ore in 100% copper base.

Japanese smelters already agreed with Freeport-McMoRan Cupper & Gold to reduce the charge to US$ 46.5 per tonne of treatment charge and to 4.65 US cents per pound of refining charge in December. The charge represents 38% lower revenue for Japanese smelters and is less than US$ 600 per tonne of smelters’ cost.