The tie-up is a government-orchestrated initiative designed to put Fangyuan, which has capacity to produce 700,000 tonnes of refined copper annually, on a firmer financial footing after the company admitted it was experiencing liquidity problems in late 2019 and reducing operating rates. [https://bit.ly/2RMs924]

ITG, a commodity trading firm which also provides supply-chain management services, will bring in "favourable resources" for Fangyuan smelting unit Dongying Lufang Metals Material Co Ltd and work to expand sales and purchase channels, a Fangyuan statement said, without providing further details.

Reuters reported in April that ITG would purchase and store raw materials, sell them to Fangyuan and then buy back the products, citing a source briefed on the matter.

(Reporting by Tom Daly; Editing by Kirsten Donovan)