(Corrects headline to read 'copper charges,' not 'copper
prices')
* Antofagasta agrees TC/RCs with smelters in Japan, China
-sources
* China's Jiangxi Copper, Tongling Nonferrous sign up
-source
* Charges are same as those agreed by Freeport with China
smelters
By Tom Daly
Dec 18 (Reuters) - Chile's Antofagasta Plc and
Codelco will supply copper concentrate at treatment and refining
charges of $59.50 per tonne and 5.95 cents per lb in 2021,
signing up at the benchmark rate miners have now managed to
lower for six years in a row.
Two sources with knowledge of the matter said miner
Antofagasta had agreed to supply copper concentrate at those
rates to smelters in China and Japan.
State-owned Codelco, which is the world's biggest producer
of mined copper, said in an emailed statement it will also offer
customers supply at those rates for next year.
The charges, which are paid by miners to smelters to process
copper ore into refined metal, are the same as those agreed by
Freeport-McMoRan Inc and Chinese smelters on
Monday.
The annual benchmark is referenced in supply contracts
worldwide, playing a significant role in determining the
profitability of both miners and smelters.
It was as high as $107 a tonne in 2015 but has now fallen
for six years in a row to its lowest since 2011 as smelting
capacity in top copper consumer China expands and mine supply
tightens, meaning smelters have to accept lower terms to ensure
they have enough feedstock.
Antofagasta first settled with Japanese smelters this week
and then with Chinese customers including Jiangxi Copper
and Tongling Nonferrous'
Jinlong smelter, one of the sources said.
Both sources declined to be identified as they were not
authorised to speak to media.
Antofagasta did not immediately respond to a request for
comment, while Jiangxi Copper and Tongling Nonferrous did not
immediately respond to requests for comment outside normal
business hours.
(Reporting by Tom Daly; Editing by Susan Fenton and Elaine
Hardcastle)
Antofagasta (ANTO)
