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The agreement is the first major co-investment between a domestic Chinese smelting business and an international trading firm, Simon Collins, Trafigura’s Head of Non-Ferrous and Bulk, said in a press release today.
“As one of the world’s largest trading companies in non-ferrous metals we will bring our long-term relationships with producers, reliability and commercial experience to this partnership,’’ he said.
The agreement, which is subject to regulatory approval, includes a multi-year supply and off-take arrangement corresponding to Trafigura's shareholding percentage for the 400,000-tpy copper smelter in Fangchengang, which began production in October last year.
Financial details of the deal were not disclosed.
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