Antofagasta Agrees to Reduced Copper Refining Charges Amid Supply Shortages

Chilean miner Antofagasta has reached an agreement with some Chinese smelters to significantly reduce copper treatment and refining charges (TC/RCs) to $23.25 per metric ton and $2.325 cents per pound, according to sources close to the matter. This mid-year agreement marks a sharp decline from the $80 per ton and 8 cents per pound set for the 2024 annual supply.

The London-listed company has not provided a comment on the agreement.TC/RCs serve as indicators of copper concentrate availability used in refined copper production. The lower charges reflect a shortage of copper concentrates, a situation exacerbated by the December closure of First Quantum's Cobre mine in Panama.

Copper prices recently soared to record highs above $11,100 per ton, partly due to large Chinese smelters' plans to cut output following mine supply disruptions. As of Thursday morning, copper prices were trading at approximately $9,500 per ton.