MMG Limited (MMG) has proposed higher annual quantity caps for copper concentrate sales to China Minmetals Non-ferrous Metals (CMN) under their long-term Framework Offtake Agreement.
Revised caps • 2026: 250,000 t of contained copper in concentrate (previous cap: 224,000 t) • 2027: 264,000 t (previous cap: 224,000 t)
Rationale 1. Las Bambas production outlook: management is planning for up to 400,000 t of contained copper per year in 2026–2027. 2. Contractual commitment: CMN is entitled to 57.31 % of Las Bambas output. 3. Buffer: 9 % for 2026 (greater visibility with less than four months left in the year) and 15 % for 2027 to cover potential over-production.
Historic utilisation • 2023: 213 k t delivered vs. 277 k t cap (76.9 %) • 2024: 178 k t vs. 277 k t (64.3 %) • 2025: 234 k t vs. 277 k t (84.5 %) • 1H 2026: 127 k t vs. 224 k t cap (56.7 %)
Regulatory implications • CMN is MMG’s controlling shareholder; transactions are classified as continuing connected transactions. • The off-take agreement exceeds the 5 % percentage ratio under Chapter 14A of the Hong Kong Listing Rules, requiring announcement, annual review and independent shareholders’ approval. • An extraordinary general meeting (EGM) will be convened; a circular is expected on or before 14 October 2026. • Somerley Capital Limited has been appointed as Independent Financial Adviser; all independent non-executive directors will form the Independent Board Committee.
Future caps unchanged for 2028–2034 Existing quantity limits of 224 k t (2028–2030) and 146 k t (2031–2034) remain in place; MMG will reassess if production assumptions change.
Governance and controls MMG’s marketing team monitors production and sales against caps, while independent directors and external auditors conduct annual reviews to ensure pricing and terms remain on normal commercial footing and within approved limits.
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