Critical copper negotiations point to a tight market
As Freeport McMoRan hammers out next year’s benchmark deal for the copper industry, the coronavirus has complicated negotiations but also given the miner an edge.
Gone is an ice-breaking reception for key customers that Freeport’s Javier Targhetta hosted for more than two decades during London Metal Exchange Week. For the past few years, that’s seen CEO Richard Adkerson serenade hundreds of guests as they dined on champagne and paella at a Park Lane hotel.
While virtual talks are proceeding more slowly than traditional face-to-face meetings, senior VP of marketing and sales Targhetta is targeting similar contractual terms to this year. That’s partly because the pandemic is stoking market uncertainty and keeping mine supply tight, a central pillar in copper’s rebound to a two-year high above $7 000 a ton last week.