Metal Minings News

European zinc smelters are seeking a big rise in 2008 concentrate treatment and refining charges because of large volumes of concentrates available globally, industry and trade sources said today. The annual TC/RC negotiations are starting at around $330 a tonne for 2008, based on a LME zinc price of $2,500 a tonne. This was up from last year’s European benchmark TC/RC of $300 per mt based on an LME zinc price of $3,500 a tonne. TC/RCs are fees charged by zinc smelters on mines to convert concentrate into metal. LME zinc was quoted at $2,265 per mt at 1715 GMT. Smelters are sometimes seeking substantially more and TC/RC demands of $360 /mt and more have been made. “There is a considerably higher volume of concentrate available this year compared to early 2007 and a large rise in charges is being sought by refiners this year,” one trader commented. “There is even talk of a $400 benchmark although this is unlikely to be reachable.” High rises in European energy prices this year was also provoking smelters to seek higher TC/RCs.