Canadian miner Teck Resources Ltd. and Japan’s Sumitomo Metal Mining Co. are locked in a commercial dispute over a major copper supply deal, exposing cracks in a decades-old pricing system as the market endures a severe shortage.
The two sides have failed to agree on the sales terms for concentrated copper ores that Teck will supply to Sumitomo’s smelter in Japan this year, according to people familiar with the matter, who asked not to be identified due to the commercial sensitivity of the matter.
Lawyers have been appointed to seek out an industry expert to act as independent referee to resolve the issue, the people said. The dispute centers on the value of treatment and refining charges that will be deducted from the price of Teck’s concentrates to cover Sumitomo’s smelting costs. Spokespeople for Sumitomo and Teck declined to comment.
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