LS MnM Signs Contract to Purchase 1.73 Million Tons of Copper Concentrate, Largest Since Founding, from World's Largest Company BHP

Introduction of 1.73 Million Tons of High-Grade Cathode Copper Over 5 Years... Annual Volume 20%
Production Possible of 7 Trillion Won Products Including Electrolytic Copper and Precious Metals

LS MnM (formerly LS Nikko Copper) announced on the 2nd that it signed a copper concentrate purchase agreement with BHP, the world's largest Australian mining company, on the 31st of last month at LS Yongsan Tower.

Koo Dong-hwi, Vice President of LS MnM (right), and Ragnar Wood, Chief Commercial Officer (CCO) of BHP, are posing for a commemorative photo after signing the largest copper concentrate purchase contract in LS MnM's history.
[Photo by LS MnM]

Present at the signing ceremony were Do Seok-gu, Vice Chairman and CEO of LS MnM, Koo Dong-hwi, Vice President and COO of LS MnM, and Ragnar Wood, Chief Commercial Officer (COO) of BHP. BHP, the contracting partner, is a world-class mining and smelting company established in 1851 and is also the world's third-largest copper producer.

The total contract volume is 1.73 million tons. LS MnM will receive approximately 350,000 tons of copper concentrate annually from BHP over the next five years. This accounts for 20% of the company's total annual procurement volume. This is the largest annual import volume in LS MnM's history. Copper concentrate, the raw material for electrolytic copper, refers to copper ore powder purified to about 25% from copper ore with a purity of around 1% through the beneficiation process.

LS MnM plans to produce products worth about 7 trillion KRW using BHP's raw materials. Over five years, it will produce 520,000 tons of electrolytic copper, as well as precious metals and rare metals such as gold, silver, platinum, palladium, selenium, and high-purity sulfuric acid for semiconductors. An LS MnM official said, "This contract enables us to secure a competitive advantage in the global copper smelting market."

LS MnM stated that the agreement allows for stable procurement of raw materials. Raw material procurement is the starting point of the smelting business and is as important a capability as production in the copper smelting industry. In particular, the copper concentrate secured this time has a grade (purity) of 30%, higher than the global average grade of 25%. It is expected to improve the efficiency of smelter operations such as raw material blending and production management.

An LS MnM official said, "The typical contract period for copper concentrate is 2 to 3 years, but by signing a 5-year contract this time, it is evaluated that LS MnM has demonstrated its status in the global smelting industry," adding, "It is highly significant that the company has secured the foundation for the sustainability of its smelting business."

Koo Dong-hwi, CEO of LS MnM, said, "We are pleased to continue our partnership with BHP, the world's top mining company," and added, "We will devote our passion and sincerity along with our employees to rapidly grow the secondary battery materials business as much as our globally recognized metals business."