KGHM has extended the contract with China Minmetals, under which it will sell a total of 250,000 to 600,000 in 2024-2028. tons of copper, the company announced. The commercial terms and conditions for a given year will be detailed on an ongoing basis in the annual contracts concluded under the framework agreement in question. The estimated value of the five-year agreement, according to quotations on the day of signing, ranges from USD 2.034 billion to USD 4.882 billion.
The contract specifies the number of cathodes sold in particular years, quantity options, delivery bases and other logistic and legal provisions. The current framework contract for 2019-2023 was concluded with China Minmetals Nonferrous Metals Co., Ltd. in November 2018, it said.
“Another framework agreement with China Minmetals is the result of good cooperation and effective sales policy pursued by KGHM. The signed contract ensures revenue stability in the next five years, guarantees a sales market and ensures geographical diversification, which is particularly important in the event of a possible economic downturn on the European market,” said Tomasz Zdzikot, president of KGHM, quoted in the release.
This year marks 26 years of commercial cooperation between KGHM Polska Miedź and partners from China. The contract for the supply of copper to this country was signed for the first time in 1998. The contracts currently being implemented are concluded with China Minmetals Nonferrous Metals Co., Ltd., which is part of the China Minmetals Group. Companies from the China Minmetals Group are the largest recipient of KGHM Cu cathodes on the Chinese market.
“Signing a contract for further copper deliveries to China would not be possible without a consistently implemented sales policy, excellent product quality and trade relations with partners from the Middle Kingdom built over the years,” added the vice-president of the management board for foreign assets, acting. Vice-President for Development said Mirosław Kidoń.
KGHM Polska Miedź has a broad portfolio of exploration, development and production projects in Poland, Germany, Canada, Chile and the USA. The company has been listed on the WSE since 1997; is included in the WIG20 index. In 2022, it had PLN 33.85 billion of consolidated revenues.