The zinc concentrate market is dominated by the traditional "frame" contract sales between major zinc mines and zinc smelters/refineries. These arrangements are longer-term contracts. Contracts are on a principal-to-principal basis between mines and smelters, and often underpin the project funding for the mine over the initial years, with funding banks having default access. General contract provisions, and particularly tonnage obligations, are established for contract duration. However, terms (treatment charge, escalator provisions, plus other minor commercial items) are reviewed and agreed on an annual basis.
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