EXPOSURE TO CHINA
Sales are made to a limited number of customers in China, particularly in respect of copper concentrate output. Treatment and refining charges are dependent upon Chinese smelting capacity and the level of copper concentrate supply in the region.
China is an important source of financing to the Group with long-term debt facilities of $3.0 billion at 31 December 2017. In addition, the Group uses contractors, services and materials from China.
Bozshakol and Aktogay produce a copper concentrate that is attractive to Chinese smelters, being ‘clean’ and high in sulphur content. The Group has established good relationships with strategic customers in China.
The Group maintains relationships with a number of international lending banks, having the PXF facility and DBK facility in place and has the flexibility to consider other sources of capital if required.