![]() ![]() We currently originate copper from Zambia, Democratic Republic of Congo and we are also extending our origination to Botswana and South Africa.īerium Group has got the required resources, infrastructure and logistics capacity to deliver bulk copper concentrates and copper cathodes from Africa all over the world reliably, competitively and within the required turnaround time. We deliver copper directly to reputable global refiners, smelters, fabricators and manufacturers of copper components around the world who transform these raw materials into important copper products that impact on daily lives of consumers worldwide. He also has extensive experience as an analyst and advisor in the securities industry and as an investor.We are global suppliers of copper cathodes from Zambia, Congo and South Africa. He trained as a geologist and has worked as a director of listed companies for over 20 years. Mark Hansen is a director of Market Capital Group Pty Ltd. I would like to thank an associate of mine, who has many years’ experience in metal trading, for assistance with this article. Finally, a further complication arises when intermediaries are engaged to market the concentrate. Any company contemplating concentrate production needs to engage an experienced advisor at the earliest opportunity. They generally comprise the value of the payable contained copper, a refining charge, a deduction for penalty elements and payment for contained precious metals.Ĭoncentrate sales contracts are an absolute minefield for the inexperienced. Blister is generally sold on a CIF basis and sales terms are relatively simple. The custom blister copper market is the smallest. There are also some elements, particularly gold and silver, that are payable.įinally, there will usually be a price participation factor which will allow the smelter to increase the treatment and refining charges should the copper price increase above a pre-determined level. Some elements, such as uranium, could render the concentrate unsaleable. Typical elements which attract a penalty charge are: magnesium, aluminium, chlorine, cobalt, nickel, zinc, arsenic, mercury, selenium, antimony and bismuth. There are also penalty charges for deleterious elements. There is also a refining charge payable as USD per pound or tonne of copper metal. The next deduction will be the treatment charge, payable as USD per dry metric tonne of concentrate. This takes account of smelter losses and will typically be 95% to 97% of the contained copper. Concentrates are typically sold on a CIF, CIFFO (Cost, Insurance, Freight Free Out, buyer pays for unloading) or FOB (Free Onboard Vessel) basis.Ĭoncentrate value is first determined by agreeing upon payable copper content. The concentrate may be smelted to produce blister copper for sale to a custom refinery, or the blister copper may be refined to cathode, which is then sold into the market.Ĭoncentrates sales contracts are specialised and very complex. A typical copper ore would be 0.7% to 2% copper, a typical copper concentrate would grade around 25% to 35% copper.Ĭopper concentrates are either smelted and refined in-house, or sold to custom smelters. Accordingly, sales contract administration and invoicing for cathode is quite straightforward and relatively easy, particularly when compared with the complexities of invoicing and accounting for concentrates sales.Ĭopper concentrates are produced by the beneficiation, or upgrading, of copper ore. ![]() There are no other deductions to the value of the contained copper. If the brand is not LME accredited, a discount to the copper price may be negotiated by the buyer. If the cathode is an LME registered brand having met the required quality and physical properties, it can command a price premium. Cathode is usually sold on a CIF (Cost, Insurance & Freight) basis and the price for the product is the LME (London Metal Exchange) “A” Grade Copper Price (USD7,124/tonne at the time of writing). It is also used in the production of alloys such as brass and bronze. ![]() There are two main sources of cathode: custom smelters that treat copper concentrates and mining operations with “in-house” smelters and, usually, refineries.Ĭathode is the purest form of copper and is the feedstock used to produce copper wire, cable, sheet, strip, tube, etc. A very small amount of high grade copper is mined and direct shipped to a smelter (direct shipping ore, or DSO).Ĭathode comprises all of the refined copper sold, excluding copper scrap. You can read that article here.Ĭopper is sold in three main forms: refined copper cathode copper concentrate and blister copper. A few weeks ago I described the relationship between gross metal value in a concentrate and the net percentage of the gross that a seller will actually receive. ![]()
0 Comments
Leave a Reply. |