Base metal producer Ok Tedi Mining will pay less in copper treatment fees to smelters in Japan in fiscal 1994-95 (April 1-March 30) than in the previous year.
Fees that will be paid to process metal will fall by about 13%, Knight-Ridder reports.
The reduction reflects the current oversupply of capacity in the Japanese smelting pool, which groups most of Japan’s smelters for collective bargaining purposes.
Sources close to the negotiations say the Papua New Guinea-based company will pay about US21.75 cents per lb. in combined smelting and refining fees (assuming an average concentrate grade of 32%), compared with US25 cents in fiscal 1993-94.
OK Tedi officials declined to comment on the negotiations.
The terms could serve as a basis for negotiations, later this month, between South American miners and representatives of Japanese smelters, according to sources.
Ok Tedi is 55% owned by BHP of Australia, with the Papua New Guinea government holding 30% and Metall Mining (TSE) 15%.
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