UPDATE 1-China's Jiangxi Copper, Antofagasta agree 2016 TC/RCs at $97.35/T, 9.735 cents/lb -Jiangxi source
(Adds comment and background)
By Polly Yam
HONG KONG Dec 15 (Reuters) - China's top integrated copper producer Jiangxi Copper and Chilean miner Antofagasta Minerals have agreed 2016 treatment and refining charges 9 percent lower than this year's fees, as global mines cut output due to low prices.
Jiangxi Copper and Antofagasta, a division of Antofagasta Plc, have agreed 2016 treatment and refining charges (TC/RCs) at $97.35 a tonne and 9.735 cents a pound, a Jiangxi source with direct knowledge of the talks said on Tuesday.
The charges agreed to for term copper concentrate shipments next year are 9 percent lower than benchmark TC/RCs of $107 a tonne and 10.7 cents a pound in 2015, a 10-year high.
Antofagasta officials were not immediately available, and a senior company executive did not immediately reply to a Reuters email seeking comment.
TC/RCs are paid to Chinese smelters by sellers to convert raw material copper concentrate imports into refined metal and are deducted from the smelters' purchase prices.
The Jiangxi Copper source said the Chinese smelter reached the agreement with Antofagasta on Tuesday morning Beijing time, after 14-hour talks with the Chilean miner in New York.
The agreed charges were likely to be followed by other Chinese smelters and should be the benchmark for 2016 in China, the source said. Continuación...