Codelco began to conclude long-term contracts
4 January 2019
Codelco is a Chilean state-owned company engaged in the production of copper. And it is the largest copper producer in the world. She began to conclude long-term contracts. They are called «evergreen» (evergreens) contracts. She concluded with a few companies. The first is the French company Nexans. Second was made by the Chinese company Minmetals. Finally, a contract was signed with the American company Southwire. All will be delivered to 50−100 thousand tons of copper per year.
The first contracts have to 2019−2021 years Every year will be their extension. Naturally, the extension will be only by mutual consent of the parties. In this case, the contract will be extended for the period 2020−2022 gg. everyone will be determining awards. We have in mind in relation to the quotations of the London stock exchange. Codelco has decided to change its sales policy. So it is possible to explain the transition to this form of sales.
The company entered into mostly short-term contracts. Their duration does not exceed one year. So, last year the production amounted to 1,734 million tons. Now the company is betting on increasing the share of large consumers. Thus, the sales traders will be reduced. It says news Agency Reuters. Customers interested in long-term contracts. They fear the threat that there may be a shortage in the copper market. On the other hand can be a limited volume of offers. The reason may be an insufficient number of new projects. In addition, the existing enterprises produce ore of lower quality.
