Japanese copper smelters are engaged in challenging mid-year negotiations with global miners over treatment and processing charges (TC/RCs), reported Reuters, citing the head of the Japan Mining Industry Association (JMIA).
The JMIA has voiced concerns that Japanese smelters cannot accept the low terms agreed upon by Chinese smelters with suppliers, such as the $0 per tonne (t) and $0.00 per pound (lb) with Chilean miner Antofagasta.
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During mid-year talks last month, some Chinese smelters settled on these rates, which are significantly lower than the 2025 annual charges of $21.25/t and $0.0213/lb.
In contrast, Japanese smelters had secured TC/RCs of $25/t and $0.025/lb for 2025 by around May, according to industry sources.
JMIA chairman Tetsuya Tanaka, who is also the president of Mitsubishi Materials, stated at a conference: “Still, negotiations are proving very difficult, as the miners have proposed charges even lower than the 2025 annual levels.”
He highlighted that shrinking smelting margins are exerting intense pressure on non-Chinese smelters.
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By GlobalDataTanaka emphasised that individual companies conduct negotiations, but the terms accepted by Chinese smelters are not viable for Mitsubishi Materials.
The nature of the ongoing talks, whether for second-half semi-annual contracts or new annual agreements, remains uncertain.
Tanaka has called for government intervention, suggesting a unified approach with other non-Chinese consumer countries.
“Negotiations by the private sector alone cannot easily break the deadlock, so we are asking the Japanese Government to act in unison,” he said. However, he did not specify the actions he expects from the governments.
An official from the industry ministry mentioned that while Japan is committed to maintaining and strengthening domestic smelting of key minerals, no specific support measures for copper smelters have been finalised.
On the topic of China’s export restrictions on rare metals, Tanaka noted some recovery in Mitsubishi Materials’ tungsten procurement, although supplies are still tight and insufficient for domestic demand.
Japan is also working to enhance national stockpiles of critical minerals by increasing volumes or expanding target items, but details have not been disclosed for national security reasons, the industry ministry official added.
