London 20/04/2016 - Canadian miner Teck Resources has concluded initial deals with Korean smelters for the annual supply of low-silver lead concentrates from its Red Dog mine in Alaska with treatment charges (TCs) down $29 per tonne on 2015 levels, well informed sources said.
The agreement is believed to have been concluded between Teck and its customers in South Korea for a TC of $193 per tonne for 2016 on a lead base price of $2,000 per tonne.
Escalators, which amplify TCs in the event of higher London Metal Exchange lead prices, are six percent over $2,000 per tonne with no upside limit o prices. On prices below $2,000 per tonne, de-escalators have been set at four percent with no floor limit.
The parties also agreed silver refining charges at $1.20 per ounce, sources familiar with the negotiation told FastMarkets.
(Edited by Mark Shaw)