Lisiting of Special High Grade Zinc Brands

Guidance Notes for Applicant Producers

THE LONDON METAL EXCHANGE LME.COM

10 Finsbury Square, London EC2A 1AJ | Tel +44 (0)20 7113 8888
Registered in England no 2128666. Registered office as above.
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Listing of Special High Grade Zinc Brands

Guidance Notes for Applicant Producers

1. Zinc producers wishing to apply for the listing of their brand by the LME will only be
considered providing that:

(i) The producer has been in business for at least 12 months.

(ii) The production plant has been in production for a minimum of 12 months or, if in the
opinion of the LME Lead and Zinc Committee adequate production capacity utilisation
and satisfactory quality has been achieved at an earlier date.

(iii) Has a capacity to produce a minimum of 12,000 metric tons per annum of Special High
Grade Zinc.

NB. A production plant is defined as an integrated zinc refinery with an associated ingot
moulding line (lines), producing a brand of zinc of consistent assay, quality and identity.
Exceptionally, it may be permitted that a “stand-alone” casting house may be considered for
listing subject to any additional conditions that the LME may introduce.

2. The producer is required to advise the LME in writing of the name of the Category 1-5
Member Company who will be processing the listing application (see Rule Book Part 7, Rule
1). Thereafter, all correspondence will be via the selected Member Company. A list of
Members Categories 1-5 expressing a general willingness to assist producers list their brands
can be found here:-

https://www.lme.com/-/media/Files/Warehousing/Approval-process/Brand-Applications-
Members-List.pdf

3. Production from more than one production plant must be separately listed. Each production
plant must use a different brand name.

4. The application is in two stages and all documentation must be submitted in English.

5. The LME and LMEC reserve the right to discuss without restriction any information provided
with any regulatory body; any third party provider of KYC, screening or other monitoring
services; or any other persons or organisations, as the LME/LMEC may in their absolute
discretion decide, and to make such other enquiries as they think fit (including using the
information provided by the Producer in such enquiries).

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Stage One
1
The producer is to supply information with an Application Letter on his headed notepaper addressed
to the LME as follows:

1. The name of the LME Member processing the application.

2. The full name and address of the producer to be listed by the LME.

3. Brief details of the history of the producer.

4. Details of the ownership of the producer.

5. The address of the production plant.

6. The first date of production of the plant.

7. The name of the brand the subject of the application.

8. The first date of production from which the producer guarantees the brand as meeting
specification.

9. The design capacity.

10. The current annualised use of capacity.

11. The monthly production figures for the previous 12 months.

12. The names of two Testers from the List of Approved Testers of Special High Grade Zinc
provided at the end of these Guidance Notes which the producer intends to use for testing
(Stage Two). Evidence of the Testers’ willingness to test is to be submitted. Prior approval
will be required from the LME Lead and Zinc Committee to use the named Testers.

13. The names of two LME Listed Samplers and Assayers (LSAs) to carry out assessment of the
quality of the application brand (Stage Two).

1
Note that the signatory and their position within the applicant producer company must be shown on
the dated Application Letter.

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The following information is to be provided by attachments to the covering Application Letter.

A. The last externally audited financial accounts of the producer.
B. A copy of the incorporation certificate of the producer.
C. Photographs of the ingot product showing the brand, grade and production cast reference
and any other symbols on the metal.
D. Provide a copy of any label used which must be plasticized.
E. Photographs of a strapped bundle from top and side dimensions.
F. Drawings of an ingot and bundle showing all dimensions in mm and weights in kilos and
stating the number of ingots in a bundle. Also the producer is required to state with the
drawing of the bundle the following phrases:
(i) Each bundle is securely strapped with material protected against corrosion and of
sufficient strength and fixing to permit safe handling by fork lift truck without bundle
distortion and breakage.
(ii) The bundle size and shape is suitable for safe and secure stacking.
(iii) The bundle assembly and security is such that on removing the security straps it
remains an integral free standing bundle.
G. A Letter of Undertaking issued by the producer in accordance with the attached draft to these
Guidance Notes dated and signed by the same person as the Application Letter.
H. An outline of the production process including a process flow diagram.
I. A production site plan/diagram.
J. A paper giving the sampling and analytical regime and advising if any aspect of this work is
outsourced. Show the detection levels used for determining impurities.
K. A schedule of the cast analysis data for the previous three months for any of the LME
contract standards of grade 99.995% Zn.
L. A copy of the normal dated Certificate of Analysis which must include the English language,
the name of the producer, the name of the brand and the production cast reference. Note
that Certificates of Analysis provided by Listed Producers must at all times demonstrate
compliance with LME listed specifications by showing actual analysed content of the metal.
M. A copy of the current ISO 9001 Certificate or, alternatively, that of ISO/TS 16949.
N. Also at Stage One, payment of the fee for applying for the listing of a zinc brand is required.
The fee is US$65,000 plus ruling UK VAT and it is non-refundable.
NB. Value Added Tax (VAT): Under current UK legislation, the LME understands that LME
members established in the UK submitting applications for their own production operations or
for third party producers must pay UK VAT to the LME at the ruling rate at the time of
application, regardless of domicile of the producer. LME members should only on-charge UK
VAT to producers established in the UK. LME members not established in the UK making
applications do not have to pay UK VAT to the LME regardless of the location of the
production operations. This information is for guidance only and relevant parties should
always seek their own advice in relation to tax matters. The LME will have no liability for
reliance on the above.

At this stage, it is the producer’s responsibility to ensure that the information complies
with the Special Contract Rules for Special High Grade Zinc, LME Rules Part 6 and to
ensure that no testing is to take place until approval to do so is given by the LME.

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Stage Two
1. On receipt of all information the LME will respond to the application as follows:
(i) Request such additional information as required.
(ii) Approve or otherwise to proceed to testing with the Testers mutually agreed and any
production plant auditing.
(iii) Advise the tonnage for testing which will usually be 2 x 50 tons (from a minimum of 4
production batches) unless otherwise specified by the LME.
2. The LME will write to the Testers and LSAs advising them of their nomination and
requirements for testing.
3. Sampling of test lots shall be carried out by an LSA at the Testers’ works and/or if required, at
the application producer’s production plant. Samples shall be taken, divided and distributed
in accordance with LME procedures which include supplying samples to a second LSA for
analytical purposes to augment the analysis of the sampling LSA. The sampling LSA shall
provide a sampling report covering all aspects of the test lots in accordance with LME
instructions. The two LSAs shall provide analysis reports of the metal tested in accordance
with the LME requirements for Special High Grade Zinc.
4. The producer is required to provide the LME with their analysis certificates for the production
batches that are sent to the Testers for evaluation.
5. The LME will receive all assay and sampling reports.
6. Production plant quality control auditing and the requirements for sampling and analysis of
test lots will be at the cost of the producer. Selection of LSAs will be at the choice of the
producer.
7. The Testers are required to supply a letter to support the application subject to their
satisfaction with the brand under test.
8. The LME Lead and Zinc Committee reserve the right to require that zinc for testing is
selected in a random manner by an LSA at the expense of the producer.
9. The LME reserves the right to require testing to be extended, if, in its sole opinion, such
action is necessary for evaluation of the brand.
10. On receipt of satisfactory reports from the Testers and LSAs, the LME Lead and Zinc
Committee will make a recommendation to the LME Executive Committee that the brand
should be listed as suitable for delivery against the contract.
11. The LME reserves the right to audit any producer’s operations at any time prior to or post
listing of a brand for verification of any aspect of the listing process.

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From time to time the LME will request every producer having listed brand(s) of Zinc to
re-affirm the undertakings originally given at the time of listing. Failure to comply with
the undertakings or supply evidence of continuing compliance with the ruling specification(s)
and requirements may result in the delisting of the brand(s) concerned. If the producer fails to
notify the LME promptly of any change in the information supplied with its original application,
or if such changes are in the LME's view material, then the LME's Executive Committee may
suspend the listing or delist the brand.
The listing of any brand is subject to the provisions of Rules 3 to 7 inclusive of Part 7 of the
Rules and Regulations of the LME which provide as follows:
3. Subsequent to listing any alteration or additions to the details given at the time of listing by
the producer are to be notified to the Exchange. A brand may be suspended from listing or
delisted at the discretion of the Directors if any such changes are not notified to the Exchange
promptly or if there are changes in the information given at the time of listing which the
Directors consider to be material or if the producer fails to comply with any undertaking given
to the Exchange.
4. Brands may be listed, suspended or delisted at the discretion of the Directors, who are
entitled to make such investigations into the producer as they may deem appropriate at any
time before, during or after the application for listing. No listing shall become valid until
particulars of the brand concerned have been posted on the Exchange for 28 days.
5. Should any complaint as to the quality of any listed brand be brought to the notice of the
Directors, they shall have the right to investigate the brand in question and the right to
suspend deliveries onto warrant until quality is proven to the satisfaction of the Directors. If
after such investigation the Directors are not satisfied with the quality of the listed brand, then
the brand may be delisted at the discretion of the Directors.
6. The Directors may, at their discretion, waive or amend any of the listing requirements.
Producers must comply with this Part of the Rules and Regulations, the listing requirements,
as well as with any variations to those and with any applicable Notices issued by the
Exchange.
7. Neither The London Metal Exchange nor any of its Directors or other officers shall be under
any liability whatsoever either in contract or in tort to any Member or other person in respect
of any act or omission in relation to the listing of any brand of metal or the maintenance,
suspension or termination of any such listing.

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Draft of Producer's Letter of Undertaking –

Special High Grade Zinc
This letter must be issued by the producer on headed paper, signed and dated and show the
signatory’s position.

London Metal Exchange

10 Finsbury Square
London
EC2A 1AJ
United Kingdom

Attention: Mrs Liz Sullivan

Brands Listing Manager, Physical Operations Department

(INSERT DATE)

In consideration of the LME maintaining our Zinc Brand (insert brand name) in its list of brands
deliverable in fulfilment of its Special High Grade Zinc Contract:

1. We (insert producer name) undertake that the quality of our zinc brand (insert brand name)
produced at (insert name and address of production plant) will meet with the requirements of
the LME Contract for Special High Grade Zinc conforming with either the BS EN 1179:2003
specification for zinc purity 99.995%, ISO 752:2004 specification, ASTM B6-12 specification
or GB/T 470-2008 specification and its quality will be maintained in accordance with the lots
supplied for testing and analysis.

2. We also undertake that any complaints we may receive with regard to the quality will be
investigated without any restriction on the period within which such a claim be made.

3. We undertake that we will not attempt to restrict (insert brand name) brand from being
delivered against the LME Contract.

4. We further undertake that any change in ownership, financial status, production practice or
any other material circumstance will be advised to the LME without delay and to comply with
Rules 3 to 7 inclusive of Part 7, of the Rules and Regulations of the LME, any amendments
thereto and any Notices issued by the LME.

5. This letter of undertaking shall be governed by English law. The courts of England shall have
non-exclusive jurisdiction to settle any disputes in relation to this letter of undertaking.

Yours sincerely

Signature ………………………………………………

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Name …………………………………………………..

Position in Company ………………………………….

Strapping Specifications for Metals Producers

1. Steel strapping for all metals, polyester strapping for primary aluminium,
aluminium alloy, tin, lead and zinc ingots

Strap Size Average Applied tension Joint Joint Working

(mm) strength (Newtons) strength range
(Newtons) elongation

Polyester 15.6 x 0.9 6000 3500 Metal Seal 60% 2 – 3.5%

Polyester 15.6 x 0.9 6000 2500 Friction 80% 2 – 3.5%

Steel 19 x 0.63 12000 7000 No Seal 80% 0.1-0.3%

Steel 19 x 0.63 12000 5000 Metal Seal 60% 0.1-0.3%

2. Polyester strapping upgrade for copper and nickel cathodes

Strap Size Average Applied tension Joint Joint Working

(mm) strength (Newtons) strength range
(Newtons) elongation

Polyester 19.0 x 1.0 10000 3500 Metal Seal 60% 2 – 3.5%

Polyester 19.0 x 1.0 10000 2500 Friction 80% 2 – 3.5%

3. Securing of Straps

Tool Strap material Joint type Maximum applied Joint

tension (Newtons) strength

Manual Polyester Metal Seal 3500 60%

Pneumatic Polyester Friction Weld 2500 80%

Pneumatic Steel No Seal 7000 80%

Manual Steel Metal Seal 5000 60%

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List of Approved Testers of Special High Grade Zinc

Canada Contact

Purity Zinc Metals Jim Piascik

290 Arvin Avenue Tel: +1 905 662 4802
Stoney Creek Fax: +1 905 664 3944
Ontario Email: [email protected]
Canada L8E 2M1

China Contact

Bayannaoer Zijin Non-Ferrous Metal Co., Ltd. Mr Li Wenxin

Wulatehouqi Industrial Zone Tel: +86 478 466 6999
Bayannaoer City Fax: +86 478 466 6984
Inner Mongolia Email: [email protected]
015543 P.R. China

Hunan Shuikoushan Nonferrous Metals Group Mr Li Hongguang

Co., Ltd. Mr Zhou De
Songbai Town Tel: +86 734-8852003/8852776
Changning City Fax: +86 734-8852110
Hunan Province Email: [email protected]
421513 [email protected]
China

Yunnan Chihong Zinc & Germanium Co Ltd. Ms Tang Gui Lin

Economy & Technology Development Region Mr Chai Zhenglong
Of Qujing City, Tel: +86 874 897 9505
Yunnan Province +86 874 896 6888
655011 China Fax: +86 874 896 6655-6719
Email: [email protected]
[email protected]

Zhuzhou Smelter Group Co Ltd Mr Xu Xiangchun

Qingshuitang Zhuzhou City Tel: +86 731 2839 1215
Hunan Province Fax: +86 731 2839 1308
412004 China Email: [email protected]

Henan Yuguang Zinc Industry Co., Ltd. Mr Zhang Wei

North of Liandong Village Tel: +86 391 6665809
Jiyuan City Fax: +86 391 6695027
Henan Province Email: [email protected]
China

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Germany Contact

Diehl Metall Stiftung & Co KG Mr Uwe Schmidt

Heinrich-Diehl-Str. 9 Tel: +49 911 5704 151
D-90552 Rothenbach a d Pegnitz Fax: +49 911 5704 440
Germany Email: [email protected]

Metallwerk Dinslaken GmbH & Co. Kg. Mr Werner Morbitzer

Kommanditgesellschaft Tel: +49 2064 416 151
Thyssenstrasse Tor II Fax: +49 2064 416 200 151
46535 Dinslaken Email: werner.morbitzer@metallwerk-
Germany dinslaken.de

Wilhelm Grillo Handelsgesellschaft mbH Mr Florian Menzel

Am Grillopark 5 Tel: +49 203 4066 121
47169 Duisburg Fax: +49 203 4066 114
Germany Email: [email protected]

United Kingdom Contact

The Brock Metal Company Mr John Titley

Walsall Road Tel: +44 (0) 1543 276666
Norton Canes Fax: +44 (0) 1543 276418
Cannock Email: [email protected]
Staffordshire
WS11 3NR
United Kingdom

Mazak Limited Mr Jonathan Hill

Willenhall Lane Tel: +44 (0) 1922 714430
Bloxwich Fax: +44 (0) 1922 714433
Walsall Email: [email protected]
West Midlands
WS3 2XN
United Kingdom

USA Contact

Eastern Alloys Inc Mr Richard Bauer

PO Box 317 Tel: +1 845 427 2151
Henry Henning Drive Fax: +1 845 427 5185
Maybrook Email: [email protected]
NY 12543
USA

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