Reuters reporetd that global commodity trader Trafigura would buy 30% stake in Jinchuan Group's copper smelter in southern China.

Trafigura said the agreement, subject to regulatory approval, marked the first major investment by an international trading firm in a Chinese smelting business. It did not provide financial terms for the deal. The 400,000 tonnes a year smelter is in Fangchengang in the south of China, the world's top refined copper producer and consumer.

Jinchuan is China's third largest copper producer and the top maker of refined nickel. It is the parent of Hong Kong listed Jinchuan International. The agreement includes a multi-year supply and off-take arrangement corresponding to the size of Trafigura's stake.

The trader said that the agreement allows Trafigura to supply raw material copper concentrate to the smelter and buy refined metal. The smelter was still in trial production and was expected to start normal output after June 2014.