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Antofagasta, Jiangxi concur significant drop in 2025 copper TC/RCs, sources

Chilean miner Antofagasta and Jiangxi Copper have agreed considerably lower copper concentrate processing costs for 2025, four sources with understanding of the matter informed Reuters on Thursday.

The contract in between Antofagasta and Jiangxi Copper for treatment and refining charges (TC/RCs) of $21.25 a heap and 2.125 cents per pound represents a drop of 73.4% from the $80/8. cents market standard for 2024, an indication of concerns about. sufficient availability of copper concentrate in the area market. in 2025.

Antofagasta decreased to comment. Jiangxi Copper was not. instantly offered for comment.

The costs, known as treatment and refining charges (TC/RCs),. a crucial source of income for smelters, paid by miners when they. offer concentrate, or semi-processed ore, to be fine-tuned into. metal.

The charges tend to fall when ore supply declines and rise. when more concentrate is available.

The costs agreed are lower than quotes in a Reuters poll. of industry participants last month, where charges were seen at. a 15-year-low - in between the high-$ 20s and mid-$ 30s a ton.

The first agreement between international copper miners and. smelters in China, the world's dominant processor, has actually often set. a benchmark for charges of other industry players recently.

Nevertheless, this year, according to one of the sources, other. Chinese smelters want to negotiate their own fees with. minor changes to that reached between Antofagasta and Jiangxi.

In the area market, copper concentrate supply has actually tightened. this year due to unforeseen mine operations disruptions and. rising smelting capability, and the tightness is anticipated to. persist in 2025.

The copper concentrate deficit is anticipated to expand to. 950,000 tons in 2025 from 1,600 heaps in 2024, according to. experts at Criteria Mineral Intelligence

(source: Reuters)