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Copper worth nearly $500 mln goes missing in China - Bloomberg News

Kitco News

Aug 4 (Reuters) - A group of Chinese companies are investigating why a commodities storage site in China's northern city Qinhuangdao is holding only one third of the copper concentrate they were financing, Bloomberg reported on Thursday.

Traders from more than a dozen state-owned firms gathered in Qinhuangdao earlier this week after becoming aware of the missing material following concerns about the borrower's finances, the report said, citing people familiar with the matter.

According to Bloomberg, the group has a claim on 300,000 tons of concentrate worth 5 billion yuan ($740 million), but at present there's only 100,000 tons at the depot, which pegs the dollar value of the missing material at about $490 million.

Huludao Risun Trading Co, a medium-sized merchant, is at the center of this incident, the report said.

Huludao Risun did not reply to a Reuters request for comment on the report.

($1 = 6.7560 Chinese yuan renminbi) (Reporting by Gokul Pisharody in Bengaluru; editing by Jason Neely)

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