Electrolytic copper producer LS MnM secures 1.73mn tons of copper ore

[Courtesy of LS MnM Inc.]

LS MnM Inc., the non-ferrous metals unit of South Korea’s LS Group, has secured the largest volume of high-purity copper concentrate (refined copper ore) in its history.

LS MnM announced on Sunday that it signed a copper concentrate purchase agreement with global mining giant BHP Group Ltd. (BHP) at the LS Yongsan Tower in Seoul on Friday.

BHP is a multinational mining company founded in 1851 and ranks third globally in copper production.

The signing ceremony was attended by key executives from both companies, including LS MnM Vice Chairman Doh Suk-goo, Chief Executive Officer and Vice President Koo Dong-whi, and BHP Chief Commercial Officer Ragnar Udd.

The deal covers a total of 1.73 million tons of copper concentrate, with LS MnM set to receive about 350,000 tons annually over the next five years. This represents the largest annual import volume since LS MnM’s inception and accounts for 20 percent of the company‘s total annual procurement volume.

LS MnM is the only company in Korea that produces high-purity electrolytic copper (99.99 percent pure copper) through electrolysis.

With the raw materials supplied by BHP over the next five years, the company will be able to produce 520,000 tons of electrolytic copper, as well as precious metals like gold, silver, platinum, and rare metals, and high-purity sulfuric acid for semiconductors, which amounts to approximately 7 trillion won ($5.06 billion) in products.

In particular, the copper concentrate secured this time has a purity level of 30 percent, which is higher than the global average level of 25 percent and is expected enhance the efficiency of smelting operations by improving raw material blending and production management.

Copper prices have been gaining as global demand for copper is on the rise. LS MnM’s acquisition of a large volume of copper concentrate is significant for LS Group.

Copper accounts for 90 percent of the manufacturing cost of electrical cables, and the group’s LS Cable & System Ltd. produces cables using copper supplied by LS MnM.

“We have maintained a long-term partnership with BHP, one of the world’s top mining companies,” Koo said. “We will continue to strive to ensure that our secondary battery materials business can grow as rapidly as our globally recognized metals business.”