UPDATE 2-Korea Zinc wins 10 pct rise in treatment fees on surplus ore
* Zinc concentrates oversupply boosts processing fee
* Deal includes price participation clause
* European, China firms still negotiating
By Silvia Antonioli
CANCUN, Feb 27 (Reuters) - Zinc smelter Korea Zinc has won a 10 percent rise in processing fees for 2013 with a top miner, setting a benchmark for industry terms this year and reflecting a shift in pricing power towards smelters from miners given heavy oversupply of zinc ore.
The deal between Asia's biggest smelter outside China and Canada's largest diversified miner Teck Resources sets a precedent for terms of other processing deals in Europe and China.
In the deal, fees climbed to $210.50 per tonne for 2013, from last year's benchmark of $191, delegates at an industry zinc conference told Reuters this week, based on a $2,000 per tonne London Metal Exchange (LME) zinc price.
European market zinc producers such as Nyrstar and Boliden are said to still be negotiating their treatment charges for this year and talks might drag on into next month, one source close to the negotiations said.
The Teck and Korea Zinc deal is expected to boost 2013 treatment charges by around 10 percent to Chinese smelters, which have not signed the annual fees with overseas miners, a manager at a large zinc smelter in China said. Continued...