EXCLUSIVE: Teck, Korea Zinc agree annual concentrate supply deal at $172/t – sources

Zinc miner Teck Resources and smelter Korea Zinc have agreed annual zinc concentrate supply contracts with treatment charges (TCs) of $172 per tonne and have effectively removed the price participation aspect, several sources with knowledge of the matter told Metal Bulletin.

Reflecting a market where spot concentrate supply is at its tightest in many years, the headline TC for 2017 is a drop of 15% on the rate of $203 that both parties agreed for 2016 but, with escalators included, equates to a year-on-year drop of a 36%. At the current London Metal Exchange three-month price of $2,823 per tonne, last year’s benchmark TC would have been $269 per tonne. The deal extends the much-debated...

Published

Archie Hunter

March 29, 2017

13:06 GMT

London