The Economics Of Sulphide Smelting Processes

A number of interrelated factors influence the economics of the sulphide smelting of copper, lead, zinc and nickel. This paper discusses these factors, mainly from a US point of view, and shows how they affect the cost of construction and operation of new and existing plants. The paper shows how metallurgical plant construction costs and the consumer price index have increased at a much faster rate than metal prices thereby making some metal mining and production operations within the USA, Canada and the EEC less profitable than operations elsewhere. This in turn inhibits new "grass roots" metallurgical developments. It is explained how retrofit of existing pyrometallurgical plants can be a more viable development than the construction of "green field" plants, especially if such retrofit improves, energy efficiencies, overall operating costs and reduces emissions of sulphur and other toxic wastes. Some aspects of metallurgical plant operation are examined, especially for copper and nickel, to show how changes in operating practices may develop in order to improve overall smelting economies, especially when developed in conjunction with objective retrofit. The paper also examines some financial aspects, especially insofar as the disparity between terms for loans offered to third world countries and the USA and the EEC are concerned and also comments upon the need, especially within the USA, for legislation to permit rapid depreciation of capital. Specific comments are made about environmental aspects, including the lack of uniformity of pollution control legislation and how environmental considerations may have some bearing of the location of future smelting operations.