Steps outlined to ensure precious metals miners have good relationships with their refiners

Introduction The relationship between precious metal miners and gold refiners has been uneasy over the years. Reasons for this uneasiness and lack of trust include technical factors, economics of scale, and cultural differences. Technical factors take two forms. First, concentrates, precipitates, and sponge produced at the mine site are notoriously difficult to sample. A nonrepresentative sample can be the cause of misunderstanding and distrust. Dote, however, is relatively homogeneous and can be correctly sampled and analyzed with greater reliability. Second, the technology and chemistry of fine gold and silver production is complex and quite different from dote production. Most mining companies are content not to be involved with additional processing steps. From the standpoint of process economies, it is easy to see why miners and refiners are separate groups. Mine location is dictated by the natural occurrence of ore bodies. Heavy capital investment requirements for infrastructure in remote locations usually limits companies to produce the first marketable product from a mine. Beyond that point, the economies of scale and large capital investments for refineries generally dictate that the outputs of several mines be combined to feed a single refinery. The refin¬ing process is so complex that refineries are generally built in larger cities with a skilled labor pool. Therefore, only the largest mines can afford to refine their own output. Lastly, there are cultural differences between the miner and the refiner. The miner, particularly the small gold miner, is by definition a risk taker in a risky business. Refineries, on the other hand, have historically been operated under legal or implied monopolies approved by the government. The government is interested in owning gold, either for currency reasons or because many national mints are major users of gold coins. It is not surprising, then, to find that miners may regard refiners as part of an unresponsive government bureaucracy or, worse, as "city slickers." It is easy for the two groups to distrust each other with these different backgrounds. The interface between miner and refiner does exist and affects nearly all precious metal mining companies and most refineries. This paper discusses the technical and economic aspects of the interface. It points out how both parties can improve the relationship. Technical interface Precious metals selectively dissolve to produce a pregnant solution. They are then recovered from solution by zinc precipitation (Merrill-Crowe process) or by absorption onto activated carbon. This is followed by stripping and electrowinning. At this point, the mining company must decide whether to ship precipitates (or sponge) to refiners or to produce a dote. Some factors the company must consider are the ability to sample precipitates, concentrates or sponge, security of storage, and production rates. An important factor is the incremental cost (capital and operating) of converting precipitates or sponge into dote at the mine. Generally, mines prefer to melt precipitates or sponge to dote to avoid prob¬lems associated with sampling them. There are three types of fur¬naces used by mining operators to melt precipitates to dote. The first and most widely used is a sil¬icon carbide crucible heated ex¬ternally with a gaseous liquid fuel. The crucible is easy to use and slag can be skimmed before pouring dote. This simple system is capable of handling 1 t/a (32,000 oz per year) gold. It could cost as little as $20,000. More complex systems could cost up to $200,000. The second type of furnace is the gas- or propane-fired rever¬beratory furnace. This is usually used only by large-scale opera¬tors in the silver business. Precip¬itates in reverberatory furnaces come in direct contact with the flame. The large volumes of flue gas can carry significant amounts of dust and fume that must be re¬moved from the gas before dis¬charging it to the atmosphere. In the days when the Rand re¬finery in South Africa used reverberatory furnaces, the silver leaving the furnace in the form of vapor and fume was estimated at 2.2% of the total silver charged to the furnace. The gold in the gases was about 0.03% of the gold charged. Most of this silver and gold was recovered in the exhaust gas scrubber system. These scrub¬ber systems can be more costly than the furnace itself.