Serbia Zijin Copper Bor has announced the return of Bor copper to the London Metal Exchange (LME). “We must meet all LME requirements regarding the supply chain, product quality, and branding, but we believe that we will succeed in bringing Bor cathode back to the London Metal Exchange this year,” said the marketing department of the Bor-based company, as reported by eKapija. It is further stated that the certification of Bor copper’s superior quality, issued by the London Metal Exchange, brings a higher premium, resulting in better selling prices for the “red” metal.
The initiative to reintroduce the cathode copper produced in Bor as a branded product on the renowned London Metal Exchange has been formalized through the creation of a working group that has been intensively branding the company’s main product for several months, according to the statement.
The goal is to make Bor cathode synonymous with quality worldwide, and a team of experts is responsible for achieving this. The working group of Serbia Zijin Copper includes personnel from the smelter, as well as the company’s sectors and departments for marketing, planning, finance, supervision, auditing, ESG, and quality control.
“The first step towards bringing Bor cathode to the London Metal Exchange is evaluating supply chain management. All steps are dictated by LME, so the company had to hire an auditing firm recognized by the London Metal Exchange as competent in the copper supply chain. There are three such firms, and we have selected and engaged one of them. Since their job is to assess the situation on-site and review the documentation, we invited them to visit our facilities. The report they will produce after their fieldwork will go through additional checks within that firm, and we expect an official confirmation and assessment of our supply chain management later this month,” said the marketing department of the company.
The second step involves the company applying for registration with LME, which consists of three elements: a letter of intent from the company, a diagram of the production process, the ISO standards the company holds, and other necessary documentation.
“We currently lack two things: one is a new declaration on the packaging of cathode plates, with updated product text and complete specifications, and the other is a new packaging method, i.e., binding the cathodes with steel straps bearing the Zijin Bor logo. We will update these according to LME standards and include them in our registration request,” the marketing department added.
After verifying the complete documentation required for registration, which will take two to three months, the London Metal Exchange will check if Bor cathode meets its standards.
This is essentially the second phase, at which point the cathodes will be sent to three test companies appointed by LME, which will use them to make a final product (such as wire or copper billets). This will allow LME to verify the quality of Bor copper, and the company will receive a report on the results. If everything is in order, LME will issue a certificate within one to two months, according to the statement.
Bor electrolytic copper has always been highly regarded for its quality, and it was previously registered on the London Metal Exchange as “Bor” cathode, with a grade “A” quality and fineness of 99.96% to 99.99%. This official confirmation of superior quality was lost in the late 20th century, during hyperinflation, due to alleged quality complaints, although the main reason was the political situation in the country and the sanctions imposed by the United Nations on Yugoslavia. In the period of 1995-1996, RTB attempted to return its cathode to the exchange, but all efforts failed for the same reason, as NATO bombed Serbia in 1999.
Despite losing the quality certificate, Bor cathode continued to be sold at the “grade A” price. Unofficial confirmation of the metal’s high quality came from buyers, who paid above the LME price to secure it.
