Jan. 17 (Bloomberg) –Sumitomo Metal Mining Co. (5713), Japan's second-largest copper producer, will not purchase concentrate from BHP Billiton Ltd. (BHP) this year under an annual contract after failing to reach an agreement on processing fees, company spokesman Masashi Takahashi said today by phone. He declined to disclose the tonnage under discussion.

A call to Kelly Quirke, a Melbourne-based spokeswoman for BHP, was not answered.