Editing Copper extraction (section)

==Concentrate and copper marketing==

Copper concentrates produced by mines are sold to smelters and refiners who treat the ore and refine the copper and charge for this service via treatment charges (TCs) and refining charges (RCs). The TCs are charged in US$ per tonne of concentrate treated and RCs are charged in cents per pound treated, denominated in US dollars, with benchmark prices set annually by major Japanese smelters. The customer in this case can be a smelter, who on-sells blister copper ingots to a refiner, or a smelter-refiner which is vertically integrated.

One prevalent form of copper concentrate contains gold and silver, like the one produced by Bougainville Copper Limited from the Panguna mine from the early 1970s to the late 1980s.<ref>{{cite web |url=http://www.bcl.com.pg/about-us/about-the-company/ |title=About the Company |access-date=24 August 2015 |archive-url=https://web.archive.org/web/20150923182900/http://www.bcl.com.pg/about-us/about-the-company/ |archive-date=23 September 2015 }}</ref>

The typical contract for a miner is denominated against the London Metal Exchange price, minus the TC-RCs and any applicable penalties or credits. Penalties may be assessed against copper concentrates according to the level of deleterious elements such as [[arsenic]], [[bismuth]], [[lead]] or [[tungsten]]. Because a large portion of copper sulfide ore bodies contain [[silver]] or [[gold]] in appreciable amounts, a credit can be paid to the miner for these metals if their concentration ''within the concentrate'' is above a certain amount. Usually the refiner or smelter charges the miner a fee based on the concentration; a typical contract will specify that a credit is due for every ounce of the metal in the concentrate above a certain concentration; below that, if it is recovered, the smelter will keep the metal and sell it to defray costs.

Copper concentrate is traded either via [[spot contract]]s or under long term contracts as an intermediate product in its own right. Often the smelter sells the copper metal itself on behalf of the miner. The miner is paid the price at the time that the smelter-refiner makes the sale, not at the price on the date of delivery of the concentrate. Under a Quotational Pricing system, the price is agreed to be at a fixed date in the future, typically 90 days from time of delivery to the smelter.

A-grade [[copper cathode]] is of 99.99% copper in sheets that are approximately 1 meter square; thickness and weight depend on manufacturer. Typical 1&nbsp;cm thick sheet weighs approximately 200 pounds (about 90&nbsp;kg). It is a true [[commodity]], deliverable to and tradeable upon the metal exchanges in [[New York City]] (COMEX), [[London]] (London Metals Exchange) and [[Shanghai]] (Shanghai Futures Exchange). Often copper cathode is traded upon the exchanges indirectly via warrants, options, or swap contracts such that the majority of copper is traded upon the LME/COMEX/SFE, but delivery is achieved directly, logistically moving the physical copper, and transferring the copper sheet from the physical warehouses themselves.

The chemical specification for [[electrolyte|electrolytic]] grade copper is ASTM B 115-00 (a standard that specifies the purity and maximum [[Electrical resistivity and conductivity|electrical resistivity]] of the product).