Chinese smelter heard purchasing copper concentrate from Gresik above usual TCs

SHANGHAI, Nov 29 (SMM) – Market talk suggested that a large Chinese copper smelter purchased some 130,000 mt of copper concentrate from Gresik smelter in Indonesia with treatment charges (TCs) in the triple digits, much higher than the current spot TCs of $95/mt.

It is reported that PT Smelting declared force majeure at its Gresik smelter and diverted concentrate supply to the spot market. With capacity of 300,000 mt/year, the smelter is undergoing maintenance that was scheduled to be completed a month ago.

Most copper concentrate the Gresik smelter manufactures comes from the Grasberg gold and copper mine in Papua province in Indonesia.

SMM learned that some of Gresik’s copper concentrate has entered Chinese markets.

At the start of November, Chinese copper smelter Jiangxi Copper and Chilean miner Antofagasta agreed to lower 2019 long-term TCs to $80.8/mt earlier this month. Such low price prompted some smelters to delay signing long-term contracts.