The London Metal Exchange (LME) is pleased to announce its intention to list Jeddah as a new delivery point for copper and zinc, subject to a short consultation on one technical change to the LME’s warehouse location framework.
Matthew Chamberlain, LME CEO, commented: “We are committed to evolving the LME warehouse network to ensure we provide maximum global connectivity for the metals community. Saudi Arabia is an increasingly important global metals hub, and Jeddah fully meets with the operational and logistical criteria for new warehouse locations – such as being an important area of net consumption and having an effective transport network.”
Farooq Shaikh, LogiPoint CEO, commented: “We very much welcome the LME intention to list Jeddah as a new LME Delivery Point for copper and zinc, and we are very pleased that the Jeddah Islamic Port and the Bonded Re-Export Zone meets the LME’s exacting standards.
“The listing of Jeddah is a great illustration of the implementation of the 2019 National Industrial Development and Logistics Program (part of the Kingdom’s Vision 2030) which aims to transform the Kingdom into a leading global player in the energy, mining, logistics and industry sectors.
“We look forward to a long future of cooperation with LME and to further developing our relationships with the international metals community to make Jeddah and the Kingdom of Saudi Arabia a major metals logistics hub servicing the Middle East, North and East Africa regions.”
The LME’s consultation proposes to amend a general clause in the LME Policy on the Approval of Locations as Delivery Points related to warehouse insolvency. A key element of the Policy is to ensure that, in the unlikely event of a warehouse operator insolvency, metal owners can easily access their metal. The proposed amendment is intended to clarify that some jurisdictions may require a court order to allow the withdrawal of metal – and the LME considers that this is acceptable, provided that concerns do not exist as to the speed or effectiveness of the court process.
The consultation will close on 30 April 2024, and subject to feedback, the Policy change will take effect. It is then the LME’s intention to list Jeddah as a delivery point. As per the usual process for location listings, Jeddah will then become active three months after the approval of the first warehouse company in that location.
