Bloomberg reported that Jiangxi Copper Company, China’s largest smelter of the metal will seek 43% increase in fees for treating and refining ore next year as global mine supply increases.

Mr Wu Yuneng VP at the Jiangxi based company said that “The charges may rise to USD 100 per tonne to treat concentrate and 10 cents a pound to refine metal. The rates for this year were USD 70 per tonne and 7 cents a pound.

Higher treatment fees would help boost earnings at smelters and add support to copper prices that may come under pressure from a global glut in the metal. Futures in London tumbled into a bear market in April and fell 9% this year as economic growth slowed in China, the world’s biggest user.

Mr Wu said that “Fees will advance further next year as the pace of growth of concentrate is likely to exceed that of new treatment facilities. The charges are deducted from the price paid by smelters to mining companies for the raw material. Jiangxi Copper on September 6 settled a short term deal at USD 99 per tonne to treat concentrates of the highest grade.”

Mr Zhang Mei a researcher with China’s Ministry of Land and Resources said that “New output from mines in Oyu Tolgoi in Mongolia, Las Bambas in Peru and Esperanza in Chile is estimated to add 3.53 million tonnes in global supply from 2012 through 2015.”