1233051969ct 109 Smelter Contracts

Ct 109 notes: Separation efficiency, Smelter Contracts, and simple
calculations
High price
Low price
N.S.R
.
Concentrate grade
Fig 5:Effect of metal Price on NSR

Changes in metal price, smelter terms etc affect NSR. If metal price increases, then
optimum grade will be lower allowing high recoveries to be attained..
Smelter contracts
Concentrates are sold under contract to “custom smelters” at prices based on metal
markets such as the London Metal Exchange. Smelter are like ZimAlloys, Zisco, ZimPlat
etc.
The smelter, having processed the concentrate disposes it to the consumers.
Assays are performed to determine the value of concentrates.
Example: Simplified Smelter Contract:
Material Tin concentrates assaying to less that 15% Sn to be free from deleterious
impurities not stated and to contain sufficient moisture as to evolve dust
when unloaded at our works
Quantity Total production of concentrates.
Valuation Tin less than 1 unit per dry tonne of concentrates at the lowest official
London Metal Exchange prices.
Pricing On the 7th market day after completion of arrival of each sampling lot into
our works.
Treatment Charge ₤385 per dry tonne of concentrate
Moisture ₤24 per tonne os moisture
Penalties Arsenic ₤40 per unit tonne
Lot Charge: ₤175 per lot sampled of less tha 17 tonnes
Delivery Free to our works in regular quantities, loose in tipping lorry, or in any
other manner acceptable to both parties.
Worked example:
A tin concentrator treats a feed containing 1% tin and three possible combinations of
concentrate and recovery are:
High grade 63% tin at 62% recovery
Medium grade 42% tin at 72% recovery
Low grade 21% tin at 78% recovery
Determine which of these combinations of grade and recovery produce the highest
separation efficiency
Assume: that tin is totally contained in the Cassirite (SnO2) which when pure contains
78.6% tin.
Recovery = 100Cc/f, = 100 x C x concentrate grade/feed grade
For high grade
62 = C x 63 x 100/1 therefore C =9.841 x10-3
S.E. = 100Cm(c-f)/(m-f)f
= 0.984 x 78.6 x (63-1)/(78.6-1) x 1
= 61.8%
Similarly for medium grade, 72 = 100 x C 42/1
C = 1.714 x 10-2
S.E. = 1.714 x 78.6 x (42-1)/(78.6-1) x 1
= 71.2%
Low Grade concentrate: 78 = C x 21/1; C = 3.714 X10-2
S.E = 75.2%
Highest Separation efficiency is achieved by production of a low grade (21% tin)
concentrate and at high recovery(78%).
NSR = Payment for contained metal –(Smelter charges + Transport costs)

Assuming that we work with the same tin ore above, and that the ore is free of arsenic,
And that the cost of transportation to the smelter is ₤20 per tonne of dry concentrate and
Tin price per tonne = ₤8500 (LME)
NSR can be calculated from the smelter contract:
For the medium grade tin ore, Smelter payment is ₤8500 x 17,14 x (42-1)/100 000,
= ₤59.73
Weight of 1 tonne medium grade ore is 17.14 kg
Smelter treatment charge = ₤ 385 x 1.714 x10-2 = ₤6.59

Transport cost = ₤20 x 1.714 x10-2 = ₤0.34
NSR for processing 1 tonne = ₤ 59.73 - ( 6.59 - 0.34) = ₤52.80
Production of lower grade concentrate incurs higher smelter and freight charges but
increases the payment of the contained metal due to higher recovery
Breakdown of costs and revenue for treatment of cost and revenues for treatment
1 ton of mined ore (1%tin)

Contained value = ₤ 85
mining Cost ₤40
processing cost₤8
Concentrate (72% Tailing Contained

recovery) Contained value ₤23.80
value ₤61.20
Effective cost
Transport and smelting ₤(61.20-52.80) = ₤8.40
Payment of ₤ 52.80
This balance between milling costs and metallurgical efficiency is critical to a

concentrator treating ore of low contained value where it is critical that milling costs be
as low as possible. Reagent costs are typically around 10% on a large copper mine but
energy costs may contribute over 25%. Grinding is b7y far the greatest energy consumer
and has the greatest effect on metallurgical efficiency. Grinding is essential for liberation
of the minerals both it should not be carried out any finer than is justified economically.
The effect of fineness of grind on NSR and grinding costs can be shown:
Net Smelter return
₤/tonne
NSR - grinding costs
Grinding costs
Grind size, microns (80% passing)
Economic efficiency
Economic efficiency compares the actual NSR per tones milled with the theoretical
NSR
Example;
Calculate the economic efficiency of a tin concentrator treating an ore grading 1% tin
producing a concentrate grading 42% at 72% recovery under the given smelter contract.,
tin price ₤8500 per tonne.
As calculated before, NSR = ₤52.80
Assuming perfect milling, 100% recovery of tin would be achieved into a concentrate
grading of 78.6%(ie pure cassiterite).
Weight produced from 1 tonne concentrate = 12.72 kg.
Transport cost = ₤12.71 x 20/10000 = ₤0.25
Treatment charge = ₤385 x 12.72/1000 = ₤4.90
Valuation = ₤17.72 x ( 78.6-1) x 85000 /100 000 = ₤83.90
NSR = ₤(83.90 - 0.25- 4.90) = ₤ 78.75

Economic efficiency = 52.80 x 100/78.75 = 67.0%

1233051969ct 109 Smelter Contracts

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Ct 109 notes: Separation efficiency, Smelter Contracts, and simple

Fig 5:Effect of metal Price on NSR

Quantity Total production of concentrates.

NSR = Payment for contained metal –(Smelter charges + Transport costs)

Smelter treatment charge = ₤ 385 x 1.714 x10-2 = ₤6.59

1 ton of mined ore (1%tin)

mining Cost ₤40

Concentrate (72% Tailing Contained

This balance between milling costs and metallurgical efficiency is critical to a

Grind size, microns (80% passing)

NSR = ₤(83.90 - 0.25- 4.90) = ₤ 78.75

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