LS-Nikko copper smelter signs $1 bln contract with Peru miner

Lim Chang-won Reporter Posted : 2018-09-11 17:32 Updated : 2018-09-11 17:32
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[LS Nikko Copper]

SEOUL -- LS-Nikko Copper., a copper smelter based in South Korea, secured a stable supply of high-quality raw materials with a long-term contract worth $1 billion to buy 560,000 tons of copper concentrate and electrolytic copper from Minsur, a Peru-based mining company.

Under an agreement signed in Seoul Tuesday, LS-Nikko will receive 50,000 to 60,000 tons of copper concentrate produced at the Mina Justa mine in Peru every year from 2021 to 2030. The company also secured the right to sell 156,000 tons of electrolytic copper (15,000 tons per year) produced by a wet smelter plant near the mine.

LS-Nikko Copper CEO Doh Suk-goo said in a statement that his company secured a stable production base with high-quality raw materials from Peru, the world's second-largest copper producer behind Chile. "I hope the two companies will be able to consolidate their partnership and grow together," he said.

The state-run Export-Import Bank of Korea will finance $200 million in the development of the Mina Justa copper mine. LS Holdings, the holding company of South Korea's LS Group, owns a 50.1 stake in LS Nikko, with the remainder controlled by JKJS, a Japanese consortium.