UPDATE 1-Teck Cominco confirms zinc TC deal with Korea Zinc

(Changes dateline, adds Korea Zinc comment, details)

By Carole Vaporean

NEW YORK/SEOUL, April 4 (Reuters) - Teck Cominco Ltd. (TCKb.TO: Quote, Profile, Research, Stock Buzz), the world's second-largest zinc miner, agreed to contract terms for treatment charges, or TCs, with Korea Zinc Co. (010130.KS: Quote, Profile, Research, Stock Buzz), but would not divulge details, the two firms said.

"We confirmed that we had agreed on terms, but we don't comment on the terms of our contracts," said Greg Waller, vice president of investor relations at Teck Cominco.

TCs are the fees miners pay smelters to refine their zinc concentrates into metal.

Market talk has put the charge at $300 per tonne based on a $2,000 a tonne London Metal Exchange zinc MZN3 price.

The deal with Korea Zinc, now the world's third-largest zinc refiner, was said to include price participation, involving an escalator of 10 cents a lb and a de-escalator of 6 or 7 cents a lb. Those terms have not been confirmed.

Last year's benchmark TC was set at $300 a tonne based on an LME zinc price of $3,500 a tonne.

LME zinc for delivery in three months finished Thursday at $2,330 per tonne, down sharply from the record high reached shortly before last year's talks at $4,600 per tonne.