Korea Zinc Agrees Historic Cut in Smelting Fees in Teck Deal

Korea Zinc Co. has accepted a 52% cut in processing fees to turn mined zinc produced by Teck Resources Ltd. into refined metal, in what would mark the lowest benchmark deal for the industry in more than 50 years.

The treatment charge that Korea Zinc will receive for smelting semi-processed ores known as concentrates will drop to $80 per ton this year, down from $165 a year ago, according to people familiar with the matter, who asked not to be named due to the commercial sensitivity of the matter.