The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1916-07-27
Custom SHELTERS and Small Mines---
Information of Value To Shippers
tBy j. NJ. Turnbull. }

4 ate small lots and hand each min
back its proportion, nor could 1t
sold in this way to advantage, sine
metal selling IL a complicated bust
ness, based on large contracts, etc
so that the smelter Is compelled to &C
as selling agent. Selling costs money
therefore the smelter always deduct
marketing charge from your ore ii
some form or other.
Extracting the metal from your or,
and selling 1t takes on the average
about three months, therefore, un
less you wish to wait three month.
for your returns, the smelter Is com
PEELED to act as banker, and advance
Iyou the money on the basis of the as.
say. This means interest charges
which are also deducted from you In
some form. The price of metals may
vary greatly in three months, how
ever, so that II the smelter pays you
on the basis of the price at the time
he receives the ore, he may make a
three months later, according as the
price goes up or down In the mean
! time
This method of payment Is known
as spot" settlement. 1t is not desired
by the smelter since a slump usually
occurs when metal prices are high,
when everybody is shipping all he
can and the smelter is overstocked
with ores, so that the tendency Is for
the smelter to make larger loss on
the slump than his gain on the rising
market To place the risk of gain or
loss on the mines, the smelter may
make contracts on a three months
settlement that Is, pay 80 per cent
spot and adjust the balance on the
price of metals three months after re-
ceipt paying you In fact as near as
possible on the basis of what he ac-
tually receives for the metal. BY pay
ing you spot, on rising market, and
switching to three month basis before
a slump, the smelter stands to make |
an extra profit. The miners interest |
obviously calls him to do the opposite, |
II possible. It Is a kind of guessing
and the best guesser wins. l |
need hardly say who is likely to be
he best guesser and the smelter Is
hardly likely to allow you to switch
% your advantage when you please,
70 that you should not allow him to
10 so, either, which you can accom-
dish by making contract over
considerable period, choosing If pos
ible which kind of settlement you
prefer, II you can get it. The smelter
las the advantage of a better knowl-
dge of market conditions and of not
icing compelled to accept settlement
lie does not desire while the mine has
he advantage of being able to ship
eavily or lightly according to condi-
ions on the usual contract This is
ne small niger in the fence, the ad-
antage being rather on the side of
he miner, If he knows the game. i
Treatment Charges. In
In quoting you a treatment rate the I
melter makes various deductions, d
'hlch are supposed to cover market ,
lg costs, losses in smelling, and SO q
n. Presumably these are the costs g
nd losses actually incurred by the a
lelter in opera ton. acting as your +
gent, and do not theoretically leave b
ny profit for the smelter, that is, d
ON the deductions alone. In addi- u
on, a straight treatment charge is r,
ade which presumably covers the h
'tual cost of smelling plus profit. If a
e smelter makes an unusually low
eatment charge, he probably makes d.
the difference by high deductions, "a
I'd vice versa. A low treatment h;
arge does not necessarily mean that @,
u are getting your ore smelted m
eaply.
In the meantime, what is a fair To-
'atment charge? This depends on nj
ore, and can only be answered in du
neral terms. On copper ores with ey
mense tonnages of easily smelted
!, the direct cost of smelling may sn
as low as 1926 per ton. as at Grand of
rks. With high grade concentrates 70,
may run up to "a or even more. on tin
general run of ordinary ores IL
newhat about SO would not be ex- tire
sive. Adding one or two dollars ,ns
profit a charge of "a or SIS Is rea- IN,
'aDle in most cases, provided an vic
ia profit Is not also made on ex- Ger
sive deductions. 40,
m lead ores that require roasting an,
most b. G. ores do, the direct cost on
smelling. not including refining, for
run as high as IS or even more. nri
1t is even more difficult to aver 7
than on copper, depending on the fer
de OF the ore, and treatment charge lea,
often on a sliding scale varying yo,
n vs. to $12, which, including pro- roa
Is not excessive If the deductions va p
fair. on
re as received at the smelter In a,c
way cars is first weighed, giving loss
gross weight, then in turn ii goes tair
ugh the sampling min, being can
med, run over samplers, etc. In cd
course Of which 1t dries to some LEAD
ne sample is taken, part of ernl
weighed and dried in an oven. and