LS-Nikko Copper Inc., a leading copper-processing company in South Korea, said Monday it has signed a five-year deal with BHP Billiton PLC to purchase 1.65 million tons of copper concentrate from the Australian miner.

In the deal, LS-Nikko Copper will receive 330,000 tons a year of copper concentrate from the Chile-based Escondida mine operated by BHP Billiton from 2019 to 2023, the company said in a statement. 

The company didn't provide the value of the contract.

Copper concentrate is a key raw material needed to produce electrolytic copper, gold, silver, palladium and pure sulfuric acid. The company expects the 1.65 million tons of copper concentrate from BHP will be used to produce 3 trillion won worth of those products, it said.

LS Holdings owns a 50.1 percent stake in LS-Nikko Copper, with the remaining 49.9 percent held by Japan Korea Joint Smelting Co. (Yonhap)