China Minmetals in $400m Deal for Copper from KGHM

HONG KONG, Jan 28 (Reuters) - China Minmetals Corp, the country's top metals trading firm, plans to import more than 40,000 tonnes of refined copper from Poland's KGHM in 2010, a source familiar with the deal said on Thursday.

Minmetals' subsidiary China Minmetals Non-ferrous Metals Co Ltd signed on Jan 25 a refined copper purchase contract for 2010 worth $400 million with KGHM, according to a statement posted on the company website.

The statement did not provide the tonnage but said the company had bought 500,000 tonnes of copper from KGHM in the past 12 years until 2009, or an annual average of 41,667 tonnes.

Based on the benchmark three-month copper price on the London Metal Exchange of $7,465 per tonne on Jan 25, the $400 million contract could be equivalent to about 53,000 tonnes of refined copper, according to Reuters' calculations.

"Imports (from KGHM) will be more in 2010 than last year if there is demand in China," said the source, who asked not to be named and gave no import tonnages for 2009 and 2010.

"Actual imports in the year would depend on the market."

He added the Chinese firm would buy term copper from the Polish copper producer, Europe's second-biggest producer of the metal, under a frame contract and might also buy additional spot copper, depending on demand in China, the world's top consumer of the industrial metal and the driver of a 140 percent LME copper price rise last year.

In June 2004, KGHM said it had signed a deal to sell electrolytic copper to China Minmetals Nonferrous Metals in the years 2005-2010, but gave no volumes.