TC/RC stands for treatment charge and refining charge: the fees a smelter charges a miner or trader for converting raw concentrate into refined metal. The treatment charge is quoted per tonne of concentrate and the refining charge per pound or ounce of contained metal, and together they are the price of smelting capacity. In a concentrates deal, the miner is paid the metal value of the shipment minus the TC/RC, which makes these two numbers some of the most fought over lines in any offtake negotiation.
TC/RCs matter beyond individual deals because they are a barometer for the balance of power between mines and smelters. When concentrate is plentiful and smelting capacity is tight, smelters charge more and TC/RCs rise. When mines underdeliver and smelters are hungry for feed, TC/RCs fall. Annual benchmark negotiations between major miners and large smelters set a reference the rest of the market trades around, while the spot market shows where the balance sits right now.
