Breaking News

Glaxo to Pay $488.7 Million Fine to End China Corruption Probe
Tweet TWEET

BHP Wins Cut in Mid-Year Copper Fees From LS-Nikko, Brook Hunt Reports

July 2 (Bloomberg) -- BHP Billiton Ltd., the world’s biggest mining company, won a cut in copper processing fees from LS-Nikko Copper Inc., according to researcher Brook Hunt.

BHP will pay $39 a metric ton and 3.9 cents a pound in treatment and refining charges, Brook Hunt said in a report to clients this week, citing unidentified people with knowledge of the accord. The figures were confirmed yesterday by Richard Wilson, chairman of metals at Addlestone, England-based Brook Hunt, a Wood Mackenzie company. A spokesman for Seoul-based LS- Nikko denied an agreement had been reached.

“We’ve not concluded any deal with BHP,” said Lee Joon, a spokesman of LS-Nikko, operator of the world’s third-largest copper refinery and smelter. Fiona Martin, a spokeswoman for BHP in Melbourne, declined to comment today. BHP owns the Escondida mine, the world’s biggest copper mine.

The fees are part of mid-year contracts, which typically cover about 5 percent of the annual global business, Brook Hunt’s Wilson said. The remainder is handled under annual contracts. Fees at the end of last year were set at $46.50 and 4.65 cents, he said.

The treatment and refining charges usually decline when there is a shortage of raw material and smelters have to compete for deliveries. Copper for delivery in three months on the London Metal Exchange rose as much as 2.1 percent to $6,459.75 a ton today.

Brook Hunt’s data is used in presentations by companies including BHP, Rio Tinto Group and Aurubis AG, the world’s second-largest producer of refined copper after Codelco.

To contact the reporters on this story: Jae Hur in Tokyo at jhur1@bloomberg.net; Anna Stablum in London at astablum@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.