London, 9 February 2010

The LME is pleased to announce that a second long-term physical cobalt contract has been finalised incorporating an LME pricing formula.

Jiangsu Cobalt Nickel Metal Co Ltd has agreed a long-term sales contract with LN Metals International Ltd for its 2010 export quota of the company’s KLK brand cobalt metal which received LME brand registration on 29th January, 2010.

For a terminal market contract to gain traction physical material has to be priced basis the exchange formula. Jiangsu’s decision is a further significant development and reflects keen interest in the physical industry to take advantage of LME pricing and the Exchange’s other services.

Others producers that that have obtained LME registration include Jinchaun Group, Sumitomo Metal Mining Co, Votorantim, Kasese, Norilsk Nickel and Vale Inco.

The LME cobalt futures contract begins trading on February 22nd, 2010.

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