UPDATE 2-Nyrstar signs benchmark zinc smelter fee for 2008

(Adds Nyrstar comment)

By Anna Stablum and Michael Hogan

LONDON, April 14 (Reuters) - The world's largest zinc smelter, Nyrstar (NYR.BR: Quote, Profile, Research), has settled this year's European benchmark deal at $350 per tonne based on a $2,500 a tonne zinc futures price MZN3, sources close to the deal told Reuters.

"We have settled a couple of contracts at those levels," said Erling Sorensen, Chief Marketing Officer at Nyrstar.

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

"The contracts concluded are European benchmark contracts," one source said.

"It is a significant contract for Nyrstar," he added.

The de-escalators and escalators in Nyrstar's main deal were similar to the agreement between the world's second-largest zinc miner Teck Cominco (TCKb.TO: Quote, Profile, Research) and Korea Zinc (010130.KS: Quote, Profile, Research), the world's third-largest zinc refiner, reported in March.

"There is nothing strange about the escalators ... at the important prices it is similar," the source said.