During the next round of the CIIE (China International Import Export) fair in Shanghai, KGHM Polska Miedź S.A. concluded a contract with China Minmetals for the sale of between 250 thousand and 600 thousand tonnes of copper in the years 2024-2028. The estimated value of the five-year contract as quoted on the date of signing is between $2.03 billion and $4.88 billion.
The contract specifies the number of cathodes sold in each year, volume options, delivery bases and other logistical and legal provisions. The current framework contract for 2019-2023 was concluded with China Minmetals Nonferrous Metals Co., Ltd. in November 2018 during the first round of the fair.
“Another framework agreement with China Minmetals is the result of good cooperation and an effective sales policy pursued by KGHM. The signed contract provides us with revenue stability in the next five years, guarantees a market and ensures geographical diversification, which is particularly important in the situation of a possible downturn in the European market”, said Tomasz Zdzikot, President of the Management Board of KGHM.
“This year marks 26 years of commercial cooperation between KGHM Polska Miedź S.A. and its Chinese partners. The signing of a contract for the supply of copper to this country for the first time took place in 1998. The contracts currently in progress are with the company China Minmetals Nonferrous Metals Co., Ltd, part of the China Minmetals Group. The China Minmetals Group companies are the largest customer of KGHM Cu cathodes on the Chinese market.
The signing of an agreement for further copper deliveries to China would not have been possible without a consistently pursued sales policy, the excellent quality of our products and the commercial relations we have built up over the years with our partners in the Middle Kingdom”, said Mirosław Kidoń, acting Vice-President of the Management Board for Foreign Assets.