copper concentrate market to remain in deficit

BHP Says Copper Concentrate Market to Remain in Deficit to 2008

By Tan Hwee Ann

Dec. 15 (Bloomberg) -- BHP Billiton Ltd, the world's largest miner, said the copper concentrate market will remain in deficit in 2007 and 2008, as smelting capacity outpace growth in mines supplies.

BHP has cut processing fees paid to smelters by 37 percent in commercial talks this year, the Melbourne-based company said in slides presentation posted on its Web-Site. It didn't specify which customers it had settled with.

BHP Billiton's Chief Executive Officer Charles `Chip' Goodyear said last month that new smelters in India and China are driving down processing charges, as miners can't expand fast enough to meet demand. Manufacturing of copper-related goods and consumption in China has been rising since the middle to the year, the company said in slides.

To contact the reporter on this story: Tan Hwee Ann in Melbourne at [email protected] ;