London 20/06/2016 - KGHM has signed an agreement with China Minmetals for the sale of copper cathodes from 2017 until 2021, it said.
The estimated value of the agreement ranges from $1.178 billion to $2.828 billion depending on the level of the quantity, KGHM said in a release on Monday.
"China Minmetals Corporation is our key partner in the Chinese market. Our co-operation potential is growing each year," KGHM CEO Krzysztof Skóra said.
"In terms of value, this is our largest mutual agreement in history. KGHM is already on the New Silk Road," he added.
This is the fourth such sales agreement between KGHM and China Minmetals - the first was signed in 2002.
"Last year, three contracts were made, based on the framework agreement for the years 2012–2016. Their value exceeds 10 percent of our equity, which proves the agreement’s importance. Contrary to what is often heard, copper consumption in China is growing and we hope to benefit from that process," Jacek Rawecki, KGHM first vice president of supply chain management, added.
(Editing by Mark Shaw)