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Bureau off Mines Information Circular/1 987 
 
 Domestic Secondary Lead Industry 
 Production and Regulatory 
 Compliance Costs 
 
 By R. Craig Smith and Michael R. Daley 
 
 UNITED STATES DEPARTMENT OF THE INTERIOR 
 
/ 
 
Information Circular 91 56 
 
 Domestic Secondary Lead Industry: 
 Production and Regulatory 
 Compliance Costs 
 
 By R. Craig Smith and Michael R. Daley 
 
 UNITED STATES DEPARTMENT OF THE INTERIOR 
 Donald Paul Hodel, Secretary 
 
 BUREAU OF MINES 
 Robert C. Norton, Director 
 
As the Nation's principal conservation agency, the Department of the Interior 
 has responsibility for most of our nationally owned public lands and natural 
 resources. This includes fostering the wisest use of our land and water 
 resources, protecting our fish and wildlife, preserving the environment and 
 cultural values of our national parks and historical places, and providing for 
 the enjoyment of life through outdoor recreation. The Department assesses our 
 energy and mineral resources and works to assure that their development is in 
 the best interests of all our people. The Department also has a major 
 responsibility for American Indian reservation communities and for people 
 who live in island territories under U.S. administration. __.. . 
 
 Library of Congress Cataloging-in-Publication Data 
 
 Smith, R. Craig. - 
 
 Domestic secondary lead industry. 
 
 (Information circular; 
 
 Bibliography: p. 
 
 Supt. of Docs, no.: I 28.27: 
 
 1. Lead industry and trade — United States — Costs. 2. Lead — Recycling — Costs. 3. Lead 
 industry and trade — Environmental aspects — United States. 4. Lead industry and 
 trade — Law and legislation — United States — Compliance costs. I. Daley, Michael R. II. 
 Title. III. Series: Information circular (United States. Bureau of Mines); 
 
 -^FN295:U4 [HD9539.L42U5] 622 s [338.2'3] 87-600137 
 
 For sale by the Superintendent of Documents, U.S. Government Printing Office 
 Washington, D.C. 20402 
 
Ill 
 
 CONTENTS 
 
 Page Page 
 
 Abstract 1 Operating costs 8 
 
 Introduction 2 Variations in operating costs due to size 8 
 
 Acknowledgments 2 Factors affecting operating costs 10 
 
 Methodology 2 Environmental legislation and compliance costs 10 
 
 Domestic secondary lead industry 3 Costs of compliance 11 
 
 Secondary lead processing 4 Compliance capability 12 
 
 Battery breaking 5 Conclusions 12 
 
 Smelting methods 5 References 13 
 
 Refining methods 6 Bibliography 13 
 
 Waste disposal 7 Appendix A. — Example of capital and operating 
 
 Sulfuric acid 8 cost estimates for environmental regulatory 
 
 Dust, organics, slags, and drosses 8 compliance 14 
 
 ILLUSTRATIONS 
 
 Page 
 
 1. Generalized secondary lead flow 3 
 
 2. Secondary lead smelting and refining process composite _, 4 
 
 3. Cross section of a typical blast furnace 5 
 
 4. Cross sections of a typical stationary reverberatory furnace 6 
 
 5. Cross section of a typical short-rotary reverberatory furnace 6 
 
 6. Cross section of a typical refining kettle 6 
 
 7. Operating cost estimates for present, pending, and proposed environmental regulatory compliance 11 
 
 8. Capital cost estimates for pending and proposed environmental regulatory compliance . . . .' 12 
 
 A-l. Original smelter facilities 14 
 
 A-2. Additional smelter facilities for CWA 14 
 
 A-3. Additional process emissions control equipment and ductwork for PEL 15 
 
 A-4. Additional downcast ventilation and ductwork for PEL 15 
 
 A-5. Original smelter process emissions control equipment, ductwork, and building enclosure 16 
 
 A-6. Additional building enclosures for NAAQS 16 
 
 A-7. Additional process emissions control equipment and ductwork for NAAQS 17 
 
 A-8. Additional building enclosures for RCRA 17 
 
 TABLES 
 
 Page 
 
 1. U.S. regional average price variations for scrap batteries in 1985 3 
 
 2. Historical refined lead statistics 4 
 
 3. Lead refining: Elements removed and reagents used 7 
 
 4. Average operating cost estimates for smelter size ranges 9 
 
 5. Current regulatory compliance operating costs 11 
 
 6. Pending and proposed regulatory compliance cost estimates for secondary lead smelters 11 
 
 A-l. CWA capital cost estimate 15 
 
 A-2. CWA annual operating cost estimate 15 
 
 A-3. OSHA's PEL capital cost estimate 16 
 
 A-4. OSHA's annual operating cost estimate 16 
 
 A-5. NAAQS capital cost estimate for the current regulation of 1.5 ptg/m 3 17 
 
 A-6. NAAQS annual operating cost estimate for the current regulation of 1.5 M-g/m 3 1/7 
 
 A-7. RCRA capital cost estimate 18 
 
 A-8. RCRA annual operating cost estimate 18 
 
UNIT OF MEASURE ABBREVIATIONS USED IN THIS REPORT 
 
 A 
 
 ampere 
 
 km 
 
 kilometer 
 
 °C 
 
 degree Celsius 
 
 kWh 
 
 kilowatt hour 
 
 cm 
 
 centimeter 
 
 lb 
 
 pound 
 
 eVKWh 
 
 cent per kilowatt hour 
 
 m 
 
 meter 
 
 c/lb 
 
 cent per pound 
 
 mt 
 
 metric ton 
 
 (2/mt-km 
 
 cent per metric ton kilometer 
 
 mt/yr 
 
 metric ton per year 
 
 d/yr 
 
 day per year 
 
 **g 
 
 microgram 
 
 op 
 
 degree Fahrenheit 
 
 ixg/m 3 • 
 
 microgram per cubic meter 
 
 ft 
 
 foot 
 
 |xm 
 
 micrometer 
 
 ft 2 
 
 square foot 
 
 min/d 
 
 minute per day 
 
 ft7min 
 
 cubic foot per minute 
 
 Mmt 
 
 million metric tons 
 
 g 
 
 gram 
 
 pet 
 
 percent 
 
 ga 
 
 gauge 
 
 ppm 
 
 part per million 
 
 h 
 
 hour 
 
 spd 
 
 shift per day 
 
 h/d 
 
 hour per day 
 
 st 
 
 short ton 
 
 hp 
 
 horsepower 
 
 V 
 
 volt 
 
 in 
 
 inch 
 
 yr 
 
 year 
 
 kg 
 
 kilogram 
 
 
 
DOMESTIC SECONDARY LEAD INDUSTRY: 
 PRODUCTION AND REGULATORY COMPLIANCE COSTS 
 
 By R. Craig Smith 1 and Michael R. Daley 2 
 
 ABSTRACT 
 
 The Bureau of Mines conducted a study of production costs for the secondary lead 
 industry and determined costs for present, pending, and proposed environmental 
 legislation. Operating costs for smelters by capacity groups range from 16.8 to 19.6 cTlb 
 of refined lead. Present regulatory compliance costs for these groups range from 2.2 to 
 2.4 tf/lb. Pending compliance costs could add 3.5 cTlb of refined lead, and proposed 
 regulations could add another 1.3 cVlb. 
 
 The individual capital costs necessary to comply with pending environmental 
 regulations are estimated to be $1.8 million for small smelters and $10.4 million for 
 large smelters. Proposed regulations could require additional expenditures from $1.9 
 million for small smelters to $4.9 million for large smelters. 
 
 These cost estimates, based on average 1985 dollars, indicate that pending and 
 proposed legislation could add significantly to capital and operating costs of the 
 secondary lead industry. These regulatory compliance costs may result in a loss of up 
 to 40 pet of secondary lead production capacity. 
 
 'Physical scientist. 
 'Mineral specialist. _ 
 Intermountain Field Operations Center, Bureau of Mines, Denver, CO. 
 
INTRODUCTION 
 
 The purpose of this report is to assess the economics of 
 producing lead by the domestic secondary lead industry 3 
 and to evaluate the costs and impacts for present, pending, 
 and proposed environmental regulatory compliance. Be- 
 cause the industry produces approximately 50 pet of the 
 refined lead in the United States, the resource of scrap 
 material becomes a significant commodity, which should 
 be considered in Federal minerals policy. The Bureau of 
 Mines conducted this study as part of the Minerals 
 Availability Program (MAP), which evaluates the avail- 
 ability of commodities. The production capability and 
 economic assessment of each operation is an integral part 
 of this program. The scope of this study includes an 
 economic assessment of the domestic secondary lead 
 industry and an estimation of the costs and impacts to the 
 industry from regulatory compliance. 
 
 At the time this study was begun, in January 1986, 
 there were approximately 24 operating smelters with 
 production capacity greater than 3,000 mt/yr. Smelters 
 with capacity less than 3,000 mt/yr were not included in 
 the study because they represented less than 1 pet of total 
 production capacity. 
 
 Over the past several years, there have been many 
 reports published by consulting firms on the cost and 
 implications of environmental regulatory compliance 
 (2 -4). 4 In general, the findings in this report support their 
 cost estimates. The following are the major differences: 
 
 1. The Bureau's capital cost estimate for compliance 
 with all of the environmental regulations affecting the 
 
 secondary lead industry is less than some industry 
 estimates, but is also based on fewer operating smelters, 
 due to recent closures. At the time this study was 
 conducted, there were 24 operating smelters with capaci- 
 ties greater than 3,000 mt/yr. 
 
 2. Published operating cost estimates, updated to 
 average 1985 dollars for comparison, indicate that the 
 Bureau's cost estimate is higher by approximately 2 eflb 
 refined lead. This is because the Bureau's estimate 
 includes transportation charges and more regulatory 
 compliance costs. 
 
 3. The Bureau's estimate for present regulatory com- 
 pliance operating costs is higher than updated published 
 estimates by approximately 1.5 0lb. The difference can be 
 attributed to the additional compliance presently being 
 performed compared with that actually being performed 
 several years ago. Assuming that this accounts for the 
 higher operating cost, then the net total operating cost 
 difference between previously published sources and the 
 Bureau's estimate is approximately 0.5 0lb refined lead. 
 
 4. The Bureau's estimate for proposed regulatory 
 compliance costs is approximately 1 0/lb less than updated 
 published estimates. 
 
 5. The Bureau's estimate of lost production capacity 
 because of shutdowns is less than half of previously 
 published estimates. However, the secondary lead indus- 
 try has lost aproximately 35 pet of production capacity 
 since those estimates were made. 
 
 ACKNOWLEDGMENTS 
 
 The authors would like to thank William D. Wood- 
 bury, lead commodity specialist, Bureau of Mines, 
 Washington, DC, for guidance and technical assistance. In 
 addition, the authors would like to thank the following 
 companies: Alco Pacific Inc., Gardena, CA; Bergsoe Metal 
 Corp., St. Helens, OR; Chloride Metals Inc., Tampa, FL; 
 Dixie Metals Co., Dallas. TX; East Penn Manufacturing 
 
 Co., Lyon Station, PA; GNB Inc., St. Paul, MN; General 
 Battery Corp., Reading, PA; Murmur Corp., Dallas, TX; 
 Ross Metals Inc., Rossville, TN; Schuylkill Metals Corp., 
 Baton Rouge, LA; and Standard Industries, San Antonio, 
 TX; for providing technical assistance and operating 
 information. 
 
 METHODOLOGY 
 
 The secondary lead industry is extremely variable 
 with respect to degree of integration, market conditions, 
 production capacity, and products. To assess the econo- 
 mics of the industry, operating costs had to be standard- 
 ized to reflect only those costs associated with acquiring 
 and converting scrap lead into refined metal. 5 For 
 
 ^The secondary lead industry refers to companies involved in the 
 recycling of scrap lead materials by smelting and refining the lead into 
 reuseable products. Presently (1986), approximately 80 pet of the scrap 
 lead is in the form of spent automotive batteries. 
 
 4 Underlined numbers in parentheses refer to items in the list of 
 references at the end of this report. 
 
 5 Refined metal is considered to be antimonial lead, soft lead, oxide lead, 
 and calcium lead. Other types of refined lead are actually produced but are 
 an insignificant amount of production and are not considered to affect 
 operating costs. 
 
 example, some fully integrated smelter complexes pur- 
 chase scrap, smelt and refine it, and use the refined lead to 
 fabricate new storage batteries. The costs associated with 
 making new batteries, beyond the refining stage, are not 
 included in this study. The battery fabrication costs 
 include labor, materials and supplies, administration, and 
 a percentage of property taxes, insurance, and deprecia- 
 tion. 
 
 Procedures to obtain data for estimating operating 
 costs included site visits to several smelters considered to 
 be representative of the industry, industry canvassing to 
 obtain specific operating details, and engineering studies 
 of smelting and refining practices. Twelve companies 
 responded to the canvass and supplied detailed cost data. 
 
These companies represented approximately 67 pet of the 
 1985 domestic secondary lead production. Operating costs 
 have been consolidated and averaged to conceal company- 
 proprietary data. All costs are presented in average 1985 
 dollars. 
 
 For this study, initial capital costs have been 
 excluded. Ongoing capital expenditures for improve- 
 
 ments, modifications, and regulatory compliance have 
 been identified, and a percentage of these costs are 
 included as depreciation. The purpose of this procedure is 
 to show net operating costs for current market conditions 
 so that future profits or losses for environmental 
 compliance expenditures can be estimated. 
 
 DOMESTIC SECONDARY LEAD INDUSTRY 
 
 The secondary lead industry primarily recycles new 
 and old scrap. New scrap is a waste product of fabrication, 
 casting plants, purchased drosses, and other residues. Old 
 scrap is a product of wornout equipment and materials, 
 such as batteries, cable, and type metal. Most recycled 
 scrap lead is in the form of spent automotive batteries. 
 Availability of lead scrap is contingent on the amount of 
 prior production, durability of lead-bearing goods, and 
 incentive to recycle (1). In 1984, battery scrap accounted 
 for 76 pet of recycled lead (5). In the first quarter of 1986, 
 an estimated 80 pet of recycled scrap was in the form of 
 spent batteries. Most scrap is reprocessed into storage 
 battery materials, although a variety of other commod- 
 ities are produced. There are approximately 70 companies 
 producing some form of secondary lead, but in 1985, 23 
 companies operating 30 smelters produced 98 pet of the 
 total (6). A generalized process flow is presented in figure 
 1. 
 
 Slag and 
 new scrap 
 
 c 
 
 Old scrap 
 
 Slag 
 
 > 
 
 Smelling turnaces 
 
 ^ __ f Smelting \ 
 
 reagents J 
 
 c 
 
 <* 
 
 Specialty alloy 
 
 Market Market Market Market 
 
 Figure 1 . — Generalized secondary lead flow. 
 
 Most secondary lead smelters have contracts with 
 battery producers, other secondary smelters, and indepen- 
 dent manufacturers. Secondary smelters, especially the 
 large-capacity plants, have long-term contracts with 
 battery producers. This is the most economical arrange- 
 ment because these smelters supply lead to the battery 
 producers and then back-haul spent batteries. However, 
 this arrangement does not necessarily supply the majority 
 of scrap lead, resulting in a competitive scrap lead 
 recycling industry. Transportation distances up to 1,600 
 km are not uncommon, and scrap prices vary by region. 
 The primary reason for scrap price variations is demand. 
 The Northeast has competition with Canada and Brazil 
 for scrap, and the west coast has competition with Asia, 
 Brazil, and Mexico. The South currently has the least 
 competition and the lowest price for scrap (table 1). 
 Exports have been increasing to southeast Asia and 
 Mexico for the last several years and have made the entire 
 west coast a very competitive market (6-7). Foreign 
 smelters can afford to bid a higher price for scrap because 
 their capital, labor, and environmental costs are lower 
 than U.S. producers. This puts west coast smelters in a 
 low profitability position because of the high price of 
 scrap. 
 
 TABLE 1.— U.S. Regional average price variations for scrap 
 batteries in 1985, cents per pound 
 
 Area 
 
 West 
 
 Northeast 
 South .... 
 
 Whole 
 batteries 
 
 Lead 
 content 
 
 3.85 
 3.00 
 2.65 
 
 8.0 
 6.2 
 5.5 
 
 Production capacity in 1981 was estimated to be 1.2 
 Mmt, but because of oversupply, weak demand, high 
 prices for scrap, and environmental regulatory costs, 
 several smelters have been shut down and dismantled. 
 This represents a permanent loss of production capacity. 
 Domestic installed production capacity is now estimated 
 to be 900,000 mt. In 1985, due to permanent and 
 temporary smelter closures, operating companies had a 
 combined capacity of 800,000 mt, of which approximately 
 600,000 mt of refined lead was produced. More closures 
 and resultant loss of capacity can be expected if current 
 market conditions and proposed environmental regula- 
 tions go into effect. In 1984 and 1985, battery scrap as a 
 percentage of recycled secondary lead has been increasing 
 (table 2). Secondary lead production has also increased as 
 a percentage of total lead production. Strikes at the 
 domestic lead mines in 1984 and low primary production, 
 because of poor economic forecasts for 1985, were the main 
 reasons for the increases (6). Capacity utilization for 
 operating secondary smelters was 75 pet for 1984 and 
 1985, and worse in the preceding years due to significant 
 overcapacity. 
 
TABLE 2.— Historical refined lead statistics, thousands of 
 metric tons of contained lead 
 
 Production 1981 1982 1983 1984 1985 
 
 Domestic ores 440.2 459.9 459.3 330.2 416.1 
 
 Foreign ores 55.1 52.3 55.2 65.4 71 .4 
 
 Secondary lead, new and old scrap 641.1 571.3 503.5 633.4 594.2 
 
 Batteries, pet of secondary lead 75 77 74 77 78 
 
 Secondary lead, pet of total refined lead 56 53 49 62 55 
 
 Source: Woodbury (2). 
 
 The average 1985 price for refined lead was 19.2 eVlb. 
 This represents a 25 pet decrease from 1984 and the lowest 
 price this century in terms of constant 1985 dollars (8). 
 The average price of refined lead for the first quarter of 
 1986 was 18.4 <z/lb. 
 
 SECONDARY LEAD PROCESSING 
 
 The smelting and refining technologies employed in 
 the secondary lead industry are significantly different 
 from those used in the primary lead industry. The reasons 
 are the high lead content of the feed, the absence of 
 complex impurities, the preparation of scrap lead feed, 
 and the types of products produced. The secondary lead 
 
 process flow includes battery breaking, smelting by either 
 blast furnace or reverberatory furnace or both, and 
 refining. A generalized process flow diagram presenting 
 the most commonly used methods of smelting, refining, 
 and product output is presented in figure 2. 
 
 LEAD 
 SUPPLY 
 
 C Slaga ) ( Scr»o ) ( Droaaaa j (Battary «ida) (Battary platea) ^Ba tt arias} 
 
 I 
 
 f High PB 
 
 SMELTING 
 FURNACES 
 
 REFINING 
 KETTLES 
 
 & 
 
 r 
 
 rM 
 
 High Pb dug 
 
 Battery omds 
 
 Rsverberatory 
 furnace 
 (rotary) 
 
 cx 
 
 Natural gas 
 
 SjllMouj limestone 
 
 ^ 
 
 Breaker 
 
 and 
 wathw 
 
 Battery metal 
 
 Reverberatory 
 
 furnace 
 
 (stationary) 
 
 °2 
 
 HjSO, 
 
 Plastic 
 
 Binary 
 oxida 
 
 U 
 
 Blaat firnac* 
 
 Hijfi Sb 
 
 High 
 Pb 
 
 1-J-- 
 
 -^^--- 
 
 p-'J 
 
 Sjllcgoug llmgatong 
 
 I Natural gas 
 or hjal oil 
 
 f^nerburner) 
 
 i I J 
 
 | [ Pitch or t 
 • I sawdust | 
 
 -H 
 
 Cu I 
 
 ; 
 
 XJ 
 
 lU- 
 
 CASTING, 
 
 PACKAQINQ, 
 
 WASTE DISPOSAL 
 
 Jf! »ESr» i 
 
 I Air , .. . 5 ■- 
 
 1 ' ; 3~± 
 
 Harris procass 
 w/sodium rMtrate 
 
 -:;-! 
 
 High PB dual 
 
 I High 
 ICu 
 
 I Pb 
 
 Laad 
 oxida 
 
 ■-H 
 
 Ca 
 laad 
 
 IT 
 
 Casting machines 
 
 • Pitch or 
 
 1 sawdust 
 
 • I or sulfur 
 
 i t I 
 
 Sb laad 
 
 \.J 
 
 Harris procass 
 
 Aa-Sn| 
 
 I- 
 
 Ca 
 
 laad 
 
 Baghouse 
 
 High 
 
 Cd-CI 
 
 dust 
 
 Limastons 
 or lima or 
 soda ash 
 
 (Acid neutralization) 
 
 Wet scrubber 
 (lime solutions) 
 
 Cu refiner Waste dump Market 
 
 |Sb 
 ilead 
 
 Market Cd-CI As-Sn 
 refiners refiners 
 
 Clean 
 gases 
 
 Gypsum 
 
 or 
 
 Na 2 S0 4 
 
 KEY 
 Ami mo ni a' lead 
 Sort lead 
 Slag (Ca-Fe-Sl) 
 • Fume 
 Dross 
 
 Figure 2.— Secondary lead smelting and refining process composite. 
 
BATTERY BREAKING 
 
 Battery breaking is the first step in the lead recycling 
 process. Because lead-acid batteries are considered to be 
 hazardous material for processors, it has become standard 
 practice to break batteries as soon as possible after 
 delivery. This usually means unloading from trucks 
 directly into the breaker. Most breakers are either the 
 hammer mill or the saw-type breaker. The hammer mill is 
 fed whole batteries. After the batteries are broken, the 
 acid drains into a collection facility and the solids proceed 
 to the flotation section. The saw-type breaker cuts the tops 
 off the batteries, allowing the acid to drain. The batteries 
 are then either manually emptied of plates and sludge and 
 fed into a hammer mill, or used as direct feed into a 
 reverberatory furnace. 
 
 If the batteries are manually emptied, the plates and 
 sludge must be washed to remove all vestiges of acid. The 
 tops of the batteries must be processed through a hammer 
 mill to separate the posts and plate tops from the plastic 
 and rubber. For the batteries not emptied manually, the 
 entire battery, less acid, is fed to a rotary hammer mill for 
 component separation and washing. Operations with 
 direct-feed hammer-mill breakers are realizing consider- 
 able labor savings as a result of the smaller work force 
 necessary for operation and maintenance. This results 
 from the fact that the batteries feed directly to the mill 
 from a conveyor and do not require constant monitoring 
 and adjustment. 
 
 The flotation section separates the battery-casing 
 plastic, rubber, and polyvinyl chloride (PVC) from the 
 plates, posts, and sludge. Washing is also accomplished in 
 this section. The plastic is recycled because it has a 16- to 
 18-eVlb value (1985 prices) and each battery averages 1.5 
 lb of plastic. Rubber and PVC are generally discarded in 
 hazardous waste dump sites. Plates, posts, and sludge 
 (lead oxide and lead sulfate) are stored in open-faced 
 concrete bins. Most of these storage bins are totally 
 enclosed in buildings or are being converted to enclosed 
 buildings because regulations require all materials with a 
 lead content greater than 1 pet to be stored in such a 
 manner. 
 
 SMELTING METHODS 
 
 Smelting is a pyrometallurgical method for the 
 separation of metal from impurities. There are three basic 
 operations involved in smelting: (1) initial burnout of the 
 charge, which incinerates combustibles; (2) sweating the 
 charge, which releases the metallics because of their low 
 melting point; and (3) slagging the charge, which forms a 
 molten lead layer and a layer of oxidized impurities. 
 Smelting can be accomplished in a blast furnace, a 
 stationary reverberatory furnace, or a rotary reverbera- 
 tory furnace. Electric arc furnace technology is being 
 tested or utilized, but is not included in this study. Many 
 smelters utilize a blast and reverberatory combination, 
 but rotary furnaces are generally used alone because of 
 their versatility. 
 
 Blast furnaces are operated as large-scale batch 
 smelters. This allows for greater utility because the 
 charge can be adjusted to the base metal assay for each 
 batch. Batch operations also allow for more variable feed 
 stocks, such as high-lead drosses, high-lead slags, flue 
 dust, scrap lead, and any combination of the above. Blast 
 furnaces are top loaded and have a crucible at the bottom 
 
 (fig. 3). These furnaces range in size from 68 to 120 cm in 
 diameter with a working height of 2.4 to 3 m. Crucible 
 location prevents further reaction of the molten lead 
 because of the overlying slag layer. Tuyeres extend 
 through the water jacketed shaft above the hearth and 
 supply air and oxygen for combustion. The blast furnace 
 can simultaneously burnout and sweat the charge, 
 thereby reducing fuel and time requirements. Coke is the 
 standard fuel and makes up approximately 10 pet of the 
 charge. 
 
 Charge 
 
 Charge hopper 
 Cone 
 
 Offtake to 
 downcomer 
 
 Average level of charge 
 
 5 o 
 
 O CM 
 
 Water jacket 
 
 Diameter 
 at tuyeres 
 68 lo 120 c 
 
 Hot water •» 
 
 Lead spout 
 
 Lead well 
 and siphon 
 
 Tuyere 
 
 Slag spout 
 
 Drain tap 
 
 Figure 3.— Cross section of a typical blast furnace. (Modified 
 from Murph (9)) 
 
 As a charge is heated, the pure metal portion melts 
 first, which leaves the flux (iron, silica, and lime) and the 
 metallic oxides to be converted into slag. The molten lead 
 accumulates at the bottom of the furnace and is tapped 
 through the use of a weir-dam siphon. With the 
 metallurgical reduction order being lead, then antimony, 
 then tin, the charge balance of coke must be adequate to 
 carry reductions at least through the antimonial stage. 
 
 The stationary reverberatory furnace is essentially a 
 melting furnace. It is rectangular in shape and has a 
 shallow hearth and an arched roof. The floor and roof both 
 slope downward, roughly parallel, toward the firing end of 
 the furnace. The other end of the furnace has a large 
 hopper for continuous feed of the charge, generally 
 through the roof (fig. 4). The dimensions are quite 
 variable, with widths from 1 to 6 m, lengths from 1.8 to 12 
 m, and heights from 1 to 3 m. The furnace is ideally suited 
 for smelting of homogeneous material, whereas heter- 
 ogeneous material in a continuous feed system can 
 develop problems in maintaining a balanced flux charge. 
 The charge is melted by a flame, which extends half the 
 length of the furnace. As the charge melts, it flows down 
 into the molten pool on the hearth. The slag is tapped 
 continuously while the lead is tapped periodically. 
 
Arch 
 
 Hygiene hood 
 
 Hygiene hood> 
 
 Refractory 
 lining 
 
 Side 
 tapping 
 
 ^7 
 Combustion 
 air fans 
 
 Figure 4.— Cross sections of a typical stationary reverbera- 
 tory furnace. (Courtesy Tolltreck International Ltd.) A) Interior, 
 exhaust end and B) Exterior, combustion end. 
 
 Because the throughput rate of a stationary rever- 
 beratory furnace is relatively slower than the rate of a 
 blast furnace, refining within the reverberatory furnace is 
 possible. In particular, high lead-content drosses may be 
 formed and recovered, as well as slags with high lead and 
 antimony content. These materials may be returned to the 
 blast furnace for further lead recovery. 
 
 The rotary reverberatory furnace has some similar- 
 ities with both the stationary reverberatory and the blast 
 furnace. The rotary, like a blast, may handle a wider 
 variety of feed materials because most charges are 
 handled in batches. This allows the flux component to be 
 adjusted to the specific assay of the material to be reduced. 
 Like the stationary reverberatory furnace, it has an 
 external fuel source so that after the reduction reaction 
 has been carried out, it may retain the melt for drossing. 
 The primary advantage of this system is the thorough 
 mixing action, which optimizes the reduction recovery and 
 rate. The mixing action also allows optimum reaction time 
 for drossing. 
 
 Rotary reverberatory furnaces have a relatively 
 simple design. They are barrel shaped, from 1.8 to 4.5 m in 
 diameter, and 2.5 to 6.8 m long, with gas jets fixed in a 
 stationary plate at one end and an attached charging door 
 at the other end (fig. 5). One of the primary problem areas 
 for rotaries in the United States has been a premature 
 failure of the refractory linings within the furnace barrel. 
 
 Burner 
 
 Drive train 
 
 Figure 5. — Cross section of a typical short-rotary reverbera- 
 tory furnace. (Courtesy Tolltreck International Ltd.) 
 
 These problems have been gradually remedied over the 
 past few years, and now rotaries are being received more 
 favorably in the United States. The rotary design is a 
 compromise between the operating flexibility of the blast 
 furnace for smelting and the refining capability of the 
 stationary reverberatory furnace. 
 
 REFINING METHODS 
 
 Refining is the final step in the chemical purification 
 process of secondary lead recycling. It is accomplished in 
 open-topped containers, called refining kettles, that are 
 usually semispherical in shape and are constructed of cast 
 iron or steel. Kettles range in depth from 1 to 2.2 m, with 
 capacities of 25 st or more. All are heated from below, with 
 the kettle seated in a specially constructed, refractory- 
 lined, steel-sheathed furnace (fig. 6). Melt agitation is 
 accomplished by mechanical impellers or by specially 
 designed air jets, which impart a stirring motion. 
 
 Mixer drive 
 
 Fume hood 
 
 Figure 6.— Cross section of a typical refining kettle. (Cour- 
 tesy Tolltreck International Ltd.) 
 
The refining process upgrades lead bullion to soft lead 
 (pure lead) or alloys. It is in this stage that reaction rates, 
 and selective reactivity, become critical. If a particular 
 reagent is added at the wrong time, a potentially toxic 
 substance may be formed or a beneficial metal may be 
 prematurely removed. In some cases, a potentially 
 valuable byproduct may even be lost in the process and 
 require additional processing to recover it. Table 3 is a 
 summarized listing of the alloy metals that may need 
 removal and some of the reagents commonly used for that 
 purpose. 
 
 TABLE 3. — Lead refining: Elements removed and reagents 
 used 
 
 Element 
 removed 
 
 Principle 
 used 
 
 Temp, 1 
 °C 
 
 Basic 
 reagent 
 
 Other alloying 
 elements affected 
 
 Ag Intermetallic . . . 675 
 
 As do 675 
 
 ..do 675 
 
 Oxidation 620 
 
 . .do 455 
 
 Bi Intermetallic . . . 675 
 
 Cu do 675 
 
 Limited 400 
 solubility. 
 
 Chemical 330 
 
 . .do 330 
 
 Fe Intermetallic . . . 675 
 
 Chemical 400 
 
 Limited 400 
 solubility. 
 
 Ni do 400 
 
 Sb 
 
 Sn 
 
 Zn 
 
 Chemical 330 
 
 . Intermetallic . . . 675 
 Oxidation 620 
 
 .do. 
 
 . .do . . . . 
 
 . .do . . . . 
 ...do.... 
 
 ..do... 
 
 ..do.... 
 
 ..do.... 
 . Limited 
 
 solubility. 
 
 ..do.... 
 
 . .do . . . . 
 
 Fine solids do 
 
 ..do 
 
 620 
 565 
 425 
 620 
 620 
 480 
 425 
 600 
 
 400 
 400 
 
 400 
 400 
 
 Zn None. 
 
 Al Sb.Cu. 
 
 Zn None. 
 
 Air Sb, Sn. 
 
 K 2 C0 3 Sn. 
 
 Ca, Mg None. 
 
 Al As, Sb. 
 
 Pitch or Ni, Fe, Zn. 
 
 sawdust. 
 
 S Sn. 
 
 NaOH with S .. .. .. 2 Sn. 
 
 Al None. 
 
 S Cu, Sb, Ni. 
 
 Pitch or Cu, Ni, Zn. 
 
 sawdust. 
 Pitch or Cu, Fe, Zn. 
 
 sawdust. 
 
 S Cu, Sn. 
 
 Al As, Cu. 
 
 Pb 3 4 Sn. 
 
 Air Sn, As. 
 
 NaOH, NaN0 3 Sn. 
 
 NaOH, NaN0 3 Sn. 
 
 Pb 3 4 None. 
 
 Air Sb, As. 
 
 NaOH, NaN0 3 As, Sb. 
 
 NaOH, NaN0 3 None. 
 
 Vacuum None. 
 
 distillation. 
 NH4CI with NaOH.. None. 
 Pitch or Cu, Ni, Fe. 
 
 sawdust. 
 
 Steam Finely divided 
 
 Natural Gas metallic solids. 
 
 1 All temperatures are at or near upper range for the particular reactions 
 listed. 
 
 2 Sn interferes with the chemical reaction promoted by the NaOH, 
 therefore, this reaction cannot be used when Sn is present in the melt. 
 
 Source: Modified from Hudson (10). 
 
 Antimonial lead is the most common product of 
 secondary lead operations, primarily because most pro- 
 duction is derived from, and recycled into, lead-acid 
 batteries. The initial step in the refining process is to 
 decopperize the melt. If the sulfur method is to be used, 
 the lead temperature is dropped from the smelting 
 temperature to around 320° to 330° C and then elemental 
 sulfur is mixed into the kettle. For the dry drossing 
 method, the temperature is held at 400° C and pitch or 
 sawdust is used instead of sulfur. These processes produce 
 a copper sulfide dross, which can then be returned to the 
 smelting furnace for lead recovery. 
 
 The softening process normally used to remove 
 arsenic and tin is the bubbled air method. With the melt 
 
 at a temperature of 620° C, air is bubbled through the 
 molten lead, and the dry dross is skimmed off. Some 
 operations will use sodium hydroxide to form sodium 
 stannates and arsenates in a dross. If a fully softened lead 
 is needed (lead which contains no antimony, arsenic, or 
 tin) then sodium nitrate (niter) can be used in conjunction 
 with air. The niter speeds up the oxidation rate and acts as 
 a catalyst so that all three impurities are removed at the 
 same time. For those operations where the feed stock 
 contains no arsenic, aluminum may be used to remove 
 copper, antimony, and nickel. This procedure will remove 
 copper and nickel to acceptable levels. 
 
 If the melt has appreciable zinc values that must be 
 removed, then the sulfur method will be used to remove 
 the copper. The pitch-sawdust method removes copper and 
 zinc at the same time and produces a combined copper-zinc 
 dross that is not as readily marketable as either copper or 
 zinc drosses. Zinc is considered to be a very detrimental 
 alloying agent in lead products. For those operations that 
 treat scrap with appreciably large zinc assays, a vacuum 
 distilled zinc process is generally used. This is accom- 
 plished by heating the melt to 600° C in a kettle with a 
 specially fitted vacuum hood, which maintains a very low 
 vacuum pressure to boil off the zinc. The hood has its own 
 cooling system, which causes the zinc to condense and 
 crystallize on the inside of the hood. This method requires 
 no further processing to produce a marketable zinc 
 byproduct. 
 
 When producing calcium alloys, the calcium is added 
 to a mixed kettle of softened lead. Calcium is added in its 
 metallic form or as a reactive carbide. Because of the 
 susceptibility of the calcium to oxidation during this 
 process, it is normal to have a layer of nonreactive 
 material on the surface of the melt. 
 
 Lead oxide is made from softened lead or primary 
 lead, commonly by the Barton process. Lead is melted in a 
 melting pot, continuously fed into a Barton pot (reactor), 
 and atomized. The atomization process involves rotating 
 mixer blades just at the molten lead surface, which 
 produces particles of Pb of 5 u-m or less. As the lead is 
 oxidized to PbO, it is entrained in the air stream and 
 conveyed to the air pollution control system. Approx- 
 imately 60 pet of the product is recovered in the settling 
 chamber and 15 to 20 pet in the cyclone. The remaining 
 product is collected in the baghouse. The product is then 
 augered to storage bins or to a hammer mill. The hammer 
 mill is primarily used to insure a uniform product and to 
 meet specifications. 
 
 After refining and alloying, the metal is pumped to 
 casting machines. The final cast form can range in weight 
 from special-order 20-lb bars to 2,000-lb blocks. Forms 
 may be rounds, bars, ingots, pigs, hogs, billets, or any of a 
 number of different speciality shapes. Standard practice is 
 to cast 65-lb ingots or 2000-lb hogs. The ingot casting 
 chain is water cooled and usually requires personnel for 
 skimming off the oxidized layer. For small custom 
 operations, ingot casting may be done by hand with 
 long-handled lead dippers used to pour the lead into 
 single, twin, or five-cavity molds. 
 
 WASTE DISPOSAL 
 
 Because of the hazardous nature of the materials 
 being handled at secondary lead operations, special 
 
 precautions are necessary to prevent air, water, and land 
 contamination. Waste disposal is therefore an important 
 
aspect of secondary lead recycling. The primary waste 
 products are sulfuric acid, dust, organics, slags, and 
 drosses. These wastes are either neutralized, recycled, or 
 transported to hazardous waste-dump sites. 
 
 SULFURIC ACID 
 
 Acid neutralization is the most involved and costly 
 aspect of waste disposal. Presently, there are three 
 chemical processes being employed within the industry: 
 lime neutralization, soda ash neutralization, and anhy- 
 drous ammonia neutralization. The Environmental Pro- 
 tection Agency (EPA) has determined that the lime 
 neutralization method is the best available technology 
 (BAT), and compliance with this standard is scheduled for 
 March 1987. Lime neutralization involves mixing lime 
 with acid, resulting in the formation of gypsum and water. 
 The gypsum is placed in settling bins or is filtered to 
 reduce the moisture content. It is then transported to 
 hazardous waste dumps because it generally exceeds the 
 EPA limit of 5.0 ppm lead or the variable state limits. This 
 method of acid neutralization produces large quantities of 
 gypsum. An average recycled battery produces about 0.6 
 kg of dry-weight gypsum. Disposal, therefore, becomes a 
 very expensive operating cost item. 
 
 Neutralization with soda ash is a more expensive 
 neutralization and monitoring process, but there are no 
 waste product transportation costs. This process mixes the 
 soda ash with the acid to form a weak sodium sulfate 
 solution. Filtration and pH adjustment are required to 
 keep lead levels at a minimum, and then the solution is 
 pumped into the sewer system. The solution is generally 
 alkaline (pH 7-10), which actually helps the water 
 treatment plants because they can have serious problems 
 with acidic solutions. This neutralization process is not as 
 effective as the lime neutralization process for removing 
 lead and also produces a large amount of dissolved solids 
 in the waste stream. 
 
 The ammonia neutralization process produces ammo- 
 nium sulfate, which is water soluble, nontoxic, and 
 biodegradable. If the waste stream is low in metals (lead, 
 arsenic, antimony, selenium, and cadmium), then ammo- 
 
 nium sulfate crystals can be produced for use as a 
 fertilizer. The process also allows for pumping the solution 
 into the sewer system, but most sanitation departments do 
 not permit it because of the high biological oxygen 
 demand (BOD) and the large amount of dissolved solids. 
 This neutralization process is not considered to be BAT 
 because the Clean Water Act (CWA) classifies ammonia 
 compounds as "nonconventional pollutants." The regula- 
 tion requires that 90 pet of nonconventional pollutants be 
 removed from waste water discharges. Because of the 
 regulation, this acid neutralization process is no longer 
 considered to be a viable alternative. 
 
 DUST, ORGANICS, SLAGS, AND DROSSES 
 
 Dust, organics, slags, and drosses are additional 
 waste products from lead processing. Several smelting and 
 refining stages produce significant quantities of offgases, 
 which contain lead particulates. To meet emission 
 standards, it is common practice to use baghouses to filter 
 the lead particulates from the offgas. Baghouse dusts are 
 recycled as furnace feed until other elemental accumula- 
 tions, primarily cadmium and chlorine, reach assay levels 
 requiring other methods of processing. When this occurs, 
 the dust is usually sold to smelters that can process the 
 material. 
 
 Disposal of the organics (rubber, PVC, and battery- 
 casing plastic) is handled in several ways. Some opera- 
 tions burn the rubber, plastic, and PVC in the smelting 
 furnace and realize some energy savings. The most 
 common method is to dispose of the rubber and PVC in 
 hazardous waste dumps, and sell the plastic to battery- 
 casing manufacturers. 
 
 Almost all slag is disposed of in hazardous waste 
 dumps because it cannot meet structural integrity tests, 
 or the leachable lead content is too high. Slags are usually 
 hauled by contractors to State-approved disposal sites. 
 
 Drosses are reprocessed onsite to reduce the lead 
 content until the impurity metals reach a level that 
 cannot be handled by the smelter. The drosses are then 
 sold to other smelters that can process the material. 
 Copper drosses and arsenic-tin drosses are the most 
 common drosses produced. 
 
 OPERATING COSTS 
 
 To evaluate smelters on a common basis, all dollar 
 values were adjusted to average 1985 dollars, and only 
 those costs associated with producing refined metal were 
 considered. For example, a fully integrated smelter 
 complex with an end product of packaged batteries would 
 be evaluated only from battery breaking through refining. 
 All additional costs for labor, utilities, materials, supplies, 
 maintenance, and overhead associated with battery 
 production are excluded. Cost items such as property 
 taxes, insurance, and some general office charges are 
 proportionally allocated. 
 
 The operating costs have been separated into conver- 
 sion costs, lead supply costs, and miscellaneous costs for 
 clarity and comparison. Conversion costs represent the 
 cost of converting scrap lead into refined lead and lead 
 alloys. Included in these costs are materials and utilities, 
 maintenance, general services, labor, administration, 
 environmental, property taxes, and insurance. Lead 
 
 supply costs represent the cost of purchasing delivered 
 scrap lead. Miscellaneous costs represent cost items that 
 affect individual operating economics, such as credits, 
 transportation, and depreciation. 
 
 VARIATIONS IN OPERATING COSTS DUE TO 
 SIZE 
 
 Table 4 presents the operating cost breakdowns for 
 smelters grouped into size ranges. Grouping by size serves 
 the purpose of disguising individual company-proprietary 
 data and shows relative economies of scale for the size 
 ranges. The table shows an economy of scale for the 
 medium size range smelters over the smaller smelters, but 
 a diseconomy between medium and large smelters. This 
 diseconomy is primarily a result of under utilization of 
 capacity for the large smelters. If the large smelters were 
 
805,020 
 
 1 ,704,360 
 
 3,847,470 
 
 109,960 
 75,140 
 42,340 
 
 139,970 
 185,650 
 184,560 
 
 542,160 
 285,300 
 176,580 
 
 227,440 
 
 510,180 
 
 1,004,040 
 
 TABLE 4. — Average operating cost estimates for smelter size 
 ranges, average 1985 dollars 
 
 Capacity mt/yr. . 1 5,000-15,000 2 1 5,000-40,000 3 40,000-85,00o" 
 
 ANNUAL COSTS 
 
 Materials and utilities: 
 
 Electricity 124,570 215,540 587,800 
 
 Natural gas 140,310 326,530 955,360 
 
 Fuel 11,620 18,820 67,500 
 
 Coke 165,470 450,510 456,880 
 
 Scrap iron 30,130 130,860 190,300 
 
 Limestone 9,060 7,210 8,040 
 
 Arsenic 23,500 27,200 81,320 
 
 Antimony 83,130 123,600 468,840 
 
 Tin 81,330 44,980 100,090 
 
 Calcium 8,790 
 
 Selenium 1,130 10,800 
 
 Oxygen 28,200 128,910 76,830 
 
 Zinc-aluminum 5,480 
 
 Hydrated lime 400 11,580 69,560 
 
 Caustic soda 28,570 20,200 31,800 
 
 Caustic potash 500 4,470 2,660 
 
 Sodaash 12,410 2,500 397,630 
 
 Miscellaneous materials 64,690 177,180 342,060 
 
 Subtotal 
 
 Maintenance materials: 
 
 Repair parts, mechanical 
 
 Repair parts, consumable ... 
 Purchased and rental service 
 
 Subtotal 
 
 Labor: 
 
 Production labor 329,160 687,830 1,197,290 
 
 Supervision 80,170 190,350 285,740 
 
 Maintenance labor 55,300 118,680 347,160 
 
 Supervision 65,730 45,840 78,070 
 
 Administrative 91,430 338,990 638,280 
 
 Payroll overhead 176,130 522,800 811,360 
 
 Subtotal 797,920 1,904,490 3,357,900 
 
 Indirect costs: 
 
 General office 70,510 313,320 299,210 
 
 Environmental (partial) 108,280 553,360 1,158,900 
 
 Property taxes 4,350 86,140 146,590 
 
 Insurance 43,470 74,570 41,540 
 
 Subtotal 226,610 1,027,390 1,646,240 
 
 Scrap lead supply: 
 
 Batteries 552,130 2,395,030 5,077,820 
 
 Primary lead 184,960 616,660 
 
 Scrap and dross 195,270 213,770 445,990 
 
 Subtotal 932,360 2,608,800 6,140,470 
 
 MiscsllsnGous' 
 
 Recycled plastic credit -107,120 -263,300 -616,790 
 
 Transportation 320,190 378,320 983,040 
 
 Depreciation 4 -5,850 -192,620 -520,310 
 
 Subtotal 207,220 -77,600 -154,060 
 
 Net operating cost 5 3,196,570 7,677,620 15,842,060 
 
 COST PER POUND REFINED LEAD 
 
 Materials and utilities 0.049 0.037 0.043 
 
 Maintenance materials 014 .01 1 .01 1 
 
 Labor 049 .042 .037 
 
 Indirect costs 014 .022 .018 
 
 Scrap lead supply .057 .057 .068 
 
 Miscellaneous .013 -.002 -.002 
 
 Total 196 .168 .176 
 
 1 Average 1985 production is 7,384 mt refined lead. 
 
 2 Average 1985 production is 20,751 mt refined lead. 
 
 3 Average 1985 production is 40,869 mt refined lead. 
 
 4 Depreciation is a percentage of 1985 identified capital expenditures and 
 estimates of past capital expenditures based on the ACRS. 
 
 5 Data may not add to total shown because of independent rounding. 
 
 operating near capacity, then the economy of scale would 
 be consistent through the size ranges. 
 
 In 1985, the larger smelters' average production was 
 approximately 64 pet of capacity, whereas the medium 
 size smelters were utilizing 91 pet of capacity. Economy of 
 scale is consistent for production and maintenance labor 
 throughout the size ranges because the labor force can be 
 scheduled according to production requirements. Regula- 
 tory compliance costs indicate a reverse economy of scale 
 for the smaller smelters for several reasons: they are 
 
 generally compact and require less capital for enclosure 
 and retrofit, they are more capable of varying furnace 
 operations for particulates emissions compliance, and 
 they have been generally less regulated than the larger 
 smelter complexes. 
 
 The amount of depreciation varies from smelter to 
 smelter. In general, most of the small smelters and many 
 of the medium size smelters were built in the 1940's and 
 1950's and are essentially depreciated, although many 
 have rebuilt or replaced furnaces. Depreciable costs for 
 these smelters are' primarily attributable to capital 
 expenditures for environmental compliance. Several of 
 the medium and larger smelters are newer and, therefore, 
 have a larger depreciation value for capital costs, but a 
 smaller amount of depreciable environmental compliance 
 costs. This is primarily because of better control technolo- 
 gy incorporated within these newer smelters. 
 
 In an attempt to account for after-tax economics, 
 individual smelters were evaluated for recent capital 
 expenditures for regulatory compliance and original 
 capital cost recapture. Capital costs for regulatory 
 compliance were depreciated based on the Accelerated 
 Cost Recovery System (ACRS). This schedule, based on 
 1985 tax laws, is anticipated to be the most advantageous 
 tax schedule, which may come close to actual company 
 accounting practices. As a common basis of depreciation, 
 the second year rate of 22 pet was used for identified 
 capital expenditures. Smelter capital costs are depreciated 
 over a 30-yr period or 3.33 pet per year. These depreciable 
 items are included in the operating costs for comparison 
 purposes. 
 
 There are several cost items that are relatively 
 inflexible to scale. The most significant conversion cost 
 items are electricity, natural gas, coke, and antimony. 
 These supplies are basic to the conversion of scrap lead 
 into refined lead and lead alloys. Battery supply is a 
 significant cost item and is probably the single most 
 important item for determining refined lead profitability. 
 In general, smelting practices have probably reached 
 optimum efficiency, thereby reducing conversion costs to a 
 minimum; therefore, the margin between conversion costs 
 plus lead supply costs and the sale price of refined lead 
 determines profitability. 
 
 In 1985, the "ask" price for soft lead was 19.0 to 19.5 
 eTlb. The "bid" price was probably closer to 18.5 0/lb. The 
 1985 average contract price for soft lead was approximate- 
 ly 19.2 e71b (8). If the secondaries all produced soft lead as 
 their only product, then the net profitabilities would be 
 very low, and some smelters would have a negative cash 
 flow. However, this is not the case because the secondary 
 lead smelters products incorporate a "value-added," which 
 commands a higher price. Value-added represents the 
 additional value to a product for further refinement, metal 
 alloying, or casting. The smelter operating costs presented 
 in table 4 exclude the processing costs for value-added, and 
 do not reflect the actual sale price or value of the products. 
 The value of products sold has not been included because 
 of the variability of products produced from each smelter, 
 the degree of integration for each, and individual company 
 contract prices. 
 
 For example, the smaller smelters generally produce 
 products according to customer orders or internal de- 
 mands. Customer orders may vary from special alloys to 
 sailing vessel keels. The value-added is incorporated in 
 the form of additional refining and metal content to 
 fabrication of keels. Therefore, the sale of these products 
 will include a profit margin for additional metal content or 
 
10 
 
 fabrication. The bottom line would show a profit on 
 production, but not per pound of refined lead. Degree of 
 integration has essentially the same effect. A plant that 
 converts scrap lead into marketable batteries has passed 
 the profit along to the final product. The profit is, 
 therefore, in terms of profit per battery and not profit or 
 loss per pound of lead produced. 
 
 FACTORS AFFECTING OPERATING COSTS 
 
 Within the secondary lead industry, each smelter has 
 some relative operating advantages and disadvantages. 
 Size and age of the smelter are important factors because 
 economies of scale do exist and some fully depreciated 
 smelters are more economical, on an after tax basis, than 
 partially depreciated smelters. Degree of integration and 
 product diversity also have distinct advantages. Most of the 
 smaller smelters cater to orders for small lots of various 
 products and are able to include an added value to these 
 products. The smaller smelters also show a greater degree 
 of integration, some through battery marketing. This 
 allows for the largest amount of added value to the 
 
 product. Smelter location is probably the most important 
 factor affecting direct operating costs. Regional variations 
 in prices for electricity, natural gas, scrap lead, coke, and 
 labor significantly affect operating costs. Proximity to 
 suppliers and consumers affects transportation costs. 
 Truck transportation rates vary from 9.2 e7mt-km for local 
 hauls up to 100 km, to 3.1 0/mt-km for long hauls. An 
 increasingly significant cost factor is environmental cost. 
 State and local regulations are quite variable. States such 
 as California and Oregon are very strict and compliance is 
 very costly, whereas most southern States are less strict. 
 Local governments can even shut down smelters if actions 
 are contrary to city planning and administration policies. 
 Waste disposal is also becoming a very significant expense 
 and is often a difficult task to perform. For example, 
 smelters are required to test slag to see if it is classified as 
 "hazardous." If tests indicate the material is hazardous, 
 then special hazardous waste dumps must be used. There 
 are very few dumps that can accept hazardous waste and, 
 in some cases, they may be hundreds of kilometers from 
 the smelters. California charges $29.76/mt of hazardous 
 waste as an additional tax. The total cost for testing, 
 hauling, and dumping these wastes can be as high as 
 $105/mt. 
 
 ENVIRONMENTAL LEGISLATION AND COMPLIANCE COSTS 
 
 Over the past two decades, the EPA nas been charged 
 by Congress to enforce numerous laws intended to protect 
 the environment, to reduce the amount of pollutants 
 introduced into the environment, and to clean up the 
 environment. All of these laws have impacted the 
 secondary lead industry to varying extent. The Clean Air 
 Act (CAA) and National Ambient Air Quality Standard 
 (NAAQS) have resulted in lower lead emissions released 
 into the atmosphere and lower exposure levels of lead for 
 the industry labor force. The CWA and Solid Waste 
 Disposal Act (SWDA) have insured monitoring of ground 
 water for possible contamination around lead processing 
 facilities and proper handling and disposal of hazardous 
 wastes. The Resource Conservation and Recovery Act 
 (RCRA), SWDA, and Hazardous and Solid Waste Amend- 
 ments Act have helped to insure public health and 
 decrease environmental degradation by setting disposal 
 and monitoring standards for solid and hazardous wastes. 
 The Comprehensive Environmental Response, Compensa- 
 tion, and Liability Act "Superfund" levies a tax of 
 $4.56/mt of lead oxide produced to generate funds to 
 clean up polluted waste disposal sites. In addition, several 
 Superfund reauthorization bills introduced in Congress 
 propose a tax on all lead but, at the time of this report, the 
 legislation has not been passed. The NAAQS is also being 
 reviewed for possible reduction to 1.0 or 0.5 p-g/m 3 of lead 
 in ambient air at fenceline. The most important Federal 
 regulations affecting the secondary lead industry are: 
 
 1. The EPA's CWA of 1977, as amended. This governs 
 effluent limits based on type of smelter production or 
 consumption of metal and the BAT, and became effective 
 July 1, 1984. For current operations already indirectly 
 discharging through publicly owned water treatment 
 facilities, BAT pretreatment standards must be complied 
 with by March 1987. 
 
 2. The Occupational Safety and Health Administra- 
 tion's (OSHA) inplant maximum permissible exposure 
 limit (PEL) standard of 50 jxg/m 3 of lead in air. Final 
 
 compliance plans must have been filed by August 1, 1984, 
 with full implementation of the plans completed by June 
 29, 1986. An interim standard PEL of 100 \x.g was allowed 
 during the interval between these two dates. Variable 
 combinations of engineering controls, administrative 
 controls, and worker self-protection were allowed during 
 the interim period and in the final compliance plan, but 
 plans were negotiated on a plant-by-plant basis with 
 OSHA and, where applicable, with the union. This 
 negotiation process, known as Cooperative Assessment 
 Program (CAP), has been made available to all lead 
 processors. The program allows for greater flexibility by 
 mutually agreed plans for compliance. 
 
 3. Public Law (PL) 98-616, the Hazardous and Solid 
 Waste Amendments Act, enacted November 8, 1984, 
 amending the SWDA of 1965 and its amendments, the 
 RCRA of 1976, and the SWDA amendments of 1980. This 
 law classifies as hazardous waste all effluents that have 
 lead or lead compound concentrations of 500 ppm or 
 greater with a pH of less than or equal to 2.0. 
 
 4. The OSHA's 1979 blood-lead standard. The final 
 phase of that regulation became effective on March 1, 
 1983, with full implementation of the maximum allowable 
 blood concentration of 50 |xg of lead per 100 g of blood. At 
 or above that level, an employee must be immediately 
 removed to a nonexposure job site or furloughed with pay 
 until the blood-lead level has been reduced to no more 
 than 40 |xg per 100 g of blood. 
 
 5. The CAA of 1963, (PL 88-206), with its amendments 
 of 1970 (PL 91-604) and 1977 (PL 95-294), and the EPA 
 established NAAQS of 1978. This standard is to be fully 
 implemented by January 1, 1988. During the interim, the 
 existing operations can operate under temporary, renew- 
 able variances, which are allowing for phased imple- 
 mentation of the statutes. Although interim compliance 
 can be met by periodic curtailment of production, final 
 compliance cannot. 
 
11 
 
 COSTS OF COMPLIANCE 
 
 The capital and operating costs for environmental 
 regulatory compliance are extremely variable from 
 smelter to smelter. Variables such as smelter capacity, 
 state regulations, plant technology, type of products, age, 
 and degree of integration all affect the costs. In general, 
 an industry average for present regulatory compliance 
 costs is 2.3 cTlb of refined lead (table 5). Included in this 
 cost are four general categories comprising employee 
 health and safety, equipment operation and maintenance, 
 supplementary labor, and hazardous materials handling 
 and disposal. There appears to be a diseconomy of scale for 
 the large smelters, but this is not the case. These costs are 
 based on actual production at the time of the study. If the 
 costs were based on rated smelter capacity, then the 
 economy of scale would be consistent. 
 
 TABLE 5.— Current regulatory compliance operating costs, 
 average 1985 dollars 
 
 Smelter Operating costs, 
 
 capacity, mt/yr c/lb refined lead 
 
 5,000 to 15,000 23 
 
 15,000 to 40,000 2.2 
 
 40,000 to 85,000 2.4 
 
 Employee health and safety includes costs for clothes, 
 shoes, respirators, safety glasses, hard hats, shower time, 
 laundry, blood-lead monitoring, administration, and 
 medical removal for high blood-lead levels. Equipment 
 operation and maintenance includes costs associated with 
 running and maintaining equipment installed specifically 
 to meet environmental regulations. Equipment items 
 include baghouses, negative pressure atmosphere sys- 
 tems, floor scrubber machines, supplementary work- 
 station ventilation, flue mufflers, scrubbers, and miscel- 
 laneous equipment. Supplementary labor costs consist of 
 people required to operate and maintain pollution control 
 equipment as well as administrative requirements. 
 Hazardous materials handling and disposal costs include 
 acid neutralization, precipitation and transportation, 
 water treatment, slag analysis and transportation, per- 
 mits, and other disposal costs. Also included in this 
 category are well and air monitoring and water effluent 
 monitoring. 
 
 Additional capital and operating costs for compliance 
 with pending and proposed regulations are presented in 
 table 6. The operating cost items represent only the costs 
 associated with operations and maintenance. They do not 
 include costs for interest on borrowed capital, deprecia- 
 tion, taxes, and insurance. The actual costs to the 
 companies would, in all likelihood, be higher than the 
 presented values. The costs are based on actual costs for 
 installed systems or for smelters that have already 
 engineered systems and have obtained cost estimates from 
 contractors for installing the systems. The costs, there- 
 fore, represent actual site-specific industry costs for the 
 various systems. Scaling these costs to a specific size 
 smelter complex is not recommended because of the 
 variability in size, design, and technology employed at 
 each site. All of these costs do not necessarily apply to 
 each smelter, because each smelter is in various stages of 
 environmental compliance. 
 
 The bureau's estimate for the average pending 
 regulatory compliance operating cost is 3.5 eYlb of refined 
 lead. This estimate is based on the present NAAQS 
 standard of 1.5 |xg/m 3 ambient lead plus an estimated 
 average for additional standards. If the standard is 
 
 TABLE 6. — Pending and proposed regulatory compliance cost 
 estimates for secondary lead smelters' 
 
 Regulation 
 
 Cost items 
 or standards 
 
 Operating cost, Capital Smelter capa- 
 e/lb refined lead cost, ICPS city, 2 10 3 mt/yr 
 
 CERCLA' 31 
 
 Liability insurance 
 
 w 
 
 NAp 
 
 NAp 
 
 
 Estimated proposed tax on lead . 
 
 ^l 
 
 NAp 
 
 NAp 
 
 CWA 
 
 . 80 ppm Pb in water 
 
 0.19-0.75 
 
 $175-760 
 
 13-41 
 
 MRP 161 .. 
 
 Removal from lead exposure at 
 50 M-g per 1 00 g blood and 
 return at 40n.g per 100 g blood 
 
 (?) 
 
 NAp 
 
 NAp 
 
 PEL' 81 
 
 (PEL): 50 M-g/m 3 
 
 Current: 1.5 M-g/m 3 Pb 
 
 0.64 
 
 1,085 
 
 18 
 
 NAAQS .. 
 
 1.20 
 
 9 5,750 
 
 36 
 
 
 Proposed: 1 .0 p.g/m 3 Pb 
 
 0.72 
 
 1,500 
 
 12.5 
 
 
 Proposed: 0.5 ng/m 3 Pb 
 
 1.13 
 
 3,050 
 
 12.5 
 
 
 Annual mean of 80 ng/m 3 SO? 
 and 24-h mean of 365 ng/m* . 
 
 0.21 
 
 500-1 ,000 
 
 22.5-66 
 
 
 
 
 
 RCRA 
 
 Hazardous waste handling, 
 transportation, and disposal 
 
 ,0 0.34-1.6' 
 
 113-1,000 
 
 4.5-87 
 
 NAp Not applicable. 
 
 ' All costs are not necesssarily applicable to every smelter because each 
 may already be in compliance with one or several of the regulations. 
 
 2 Used as basis for estimating costs. 
 
 3 Comprehensive Environmental Response, Compensation, and Liability 
 Act (Superfund). 
 
 ' Undetermined cost. Industry sources indicate that this type of insurance 
 is not available and if it were made available, they could not afford the 
 insurance premiums. 
 
 5 Based on current tax rate for lead oxide. 
 
 6 Medical Removal Program. 
 
 7 Not determined because of too many variables, such as individual's 
 ability to metabolize lead. Can be a significant cost item at some smelters. 
 
 9 MRP and PEL are regulations promulgated by OSHA. 
 
 9 Cost based on information developed from TRC report (11). Proposed 
 standards are cumulative to the current standard. 
 
 10 Costs based on smelter capacities from 6,500 mt/yr to 87,000 mt/yr. 
 " Costs are extremely variable because of different requirements under 
 
 the State Implementation Plans (SIP). Costs based on smelter capacities 
 from 4,500 to 60,000 mt/yr. 
 
 amended to 1.0 (xg/m 3 ambient lead, then the average 
 industry compliance cost is estimated to be an additional 
 0.5 c71b of refined lead. If the NAAQS standard is amended 
 to 0.5 |xg/m 3 ambient lead, then the average industry 
 compliance cost is estimated to be an additional 1.3 cYlb of 
 refined lead. These cost estimates are considered to have 
 an accuracy of ±25 pet (fig. 7). 
 
 KEY 
 
 Proposed 
 
 Pending 
 
 Present 
 
 Direct operating costs 
 
 Environmental 
 compliance costs 
 
 1985 a v price 
 per pound 
 refined lead 
 
 5-15 15-40 40-85 
 
 SMELTER CAPACITY, 10 3 mt/yr refined lead 
 
 Figure 7.— Operating cost estimates for present, pending, 
 and proposed environmental regulatory compliance. 
 
12 
 
 The capital costs necessary to comply with these 
 environmental regulations are presented in figure 8. The 
 costs are grouped by smelter size and include estimates at 
 the proposed NAAQS levels of 1.0 |xg/m 3 and 0.5 |xg/m\ 
 because meeting this standard is the most significant cost 
 item. Although the costs account for all of the environ- 
 mental regulations, the total cost is not necessarily 
 applicable to every smelter because of individual degree of 
 environmental compliance. The capital cost estimates are 
 considered to have a ±25 pet accuracy. 
 
 16 
 
 15 
 
 ~ 14 
 
 u> 13 
 
 oo 
 S> 12 
 
 (O 
 
 o 
 
 Q. 
 < 
 O 
 
 11 
 10 
 9 
 8 
 7 
 6 
 5 
 4 
 3 
 2 
 1 
 
 KEY 
 Proposed costs 
 Pending costs 
 
 5-15 15-40 40-85 
 
 SMELTER CAPACITY, 10 3 mt/yr refined lead 
 
 Figure 8. — Capital cost estimates for pending and proposed 
 environmental regulatory compliance. 
 
 COMPLIANCE CAPABILITY 
 
 The ability of the secondary lead industry to comply 
 with the environmental regulations and remain profitable 
 is questionable. On a direct cost per pound of lead basis, 
 the industry would be losing money. The vertically 
 
 integrated smelters, especially those that make high 
 value-added specialty products, may be able to absorb the 
 additional compliance costs, but profit margins will be 
 severely reduced. 
 
 •In addition, if current economic conditions continue 
 and proposed environmental regulations become effective, 
 many smelters will be forced to shut down. This will occur 
 because some companies cannot afford the capital costs for 
 compliance and also because many smelters' "book values" 
 would be less than the capital expenditures. Companies 
 would therefore consider alternative investments rather 
 than risk capital expenditures into a business that offered 
 a poor rate of return. Loss of production capacity is 
 speculative, but could be as high as 350,000 mt/yr. This 
 represents approximately 40 pet of the current industry 
 production capacity. In general, the ability of the industry 
 to survive is a function of size, degree of integration, 
 efficiency, and ability to market products with value- 
 added. 
 
 The cost of regulatory compliance and the resultant 
 effects on the industry could create this particular 
 long-term chain of events: The smelter closures will lower 
 demand for battery scrap, which will create an oversupply 
 of scrap. With low demand and large supply, the price for 
 scrap will decrease. This will dampen the incentive to 
 recycle because of reduced profit margins. In some areas of 
 the country, the price for scrap is already approaching the 
 break-even cost for recycling. Continued downward price 
 pressure will begin breaking down the recycling industry, 
 especially the independents, which account for approx- 
 imately 50 pet of the industry. The net effect is a loss of 
 battery scrap supply because of a lack of recycling. The 
 effect of a breakdown of the recycling industry will 
 probably result in a serious environmental problem (12). 
 Batteries will probably be dumped in inadequate land 
 fills, along back roads, and in ditches. Because of the 
 hazardous nature of batteries, the effect on the environ- 
 ment would be the introduction of lead and sulfuric acid 
 into the soil and possibly the water table, and the 
 introduction of rubber and plastic into the soil. 
 
 The primary lead industry should also be considered, 
 assuming that the environmental regulations apply 
 equally to the primaries. The primaries will be faced with 
 significantly higher compliance costs (13), which may 
 result in loss of production capacity through plant 
 closures. If this occurs, production from the secondary lead 
 industry may increase although fewer secondary smelters 
 will be operating. 
 
 CONCLUSIONS 
 
 The continued depressed price of lead and the 
 additional costs for environmental regulatory compliance 
 have severely impacted the secondary lead industry. Since 
 1980, plant closures have accounted for approximately 
 200,000 mt of lost production capacity and 200,000 mt of 
 temporary shutdown capacity. Current potential domestic 
 capacity is 900,000 mt/yr of refined lead. More plant 
 closures can be expected if stricter environmental regula- 
 tions become effective. Resultant loss of capacity could be 
 as high as 350,000 mt/yr or 40 pet of remaining domestic 
 production capacity. 
 
 Based on 1985 operating parameters and average 
 1985 dollars, the average operating costs varied from 16.8 
 to 19.6 c/lb of refined lead. The 1985 average sale price per 
 
 pound of refined lead was approximately 19.2 c71b. 
 Industry profitability for 1985 was very low and for many 
 companies, it was close to break-even. Profit was mostly 
 achieved by vertically integrated companies capable of 
 producing value-added products. 
 
 Present regulatory compliance costs, as an industry 
 average, are 2.3 c71b of refined lead. Pending environmen- 
 tal regulations could cost the industry an additional 3.5 
 <2/lb of refined lead. It is estimated that proposed 
 environmental regulations, assuming the NAAQS of 0.5 
 (xg/m 3 , would cost an additional 1.3 eYlb of refined lead. 
 This cost is in addition to the cost for pending regulatory 
 compliance. These costs do not include discounted cash 
 flow rate of return (DCFROR) analysis. 
 
13 
 
 Capital costs necessary to comply with environmental 
 regulations are estimated to be approximately $1.8 
 million for smelters with capacities between 5,000 and 
 15,000 mt/yr, $7.6 million for smelters between 15,000 
 and 40,000 mt/yr, and $10.4 million for smelters between 
 40,000 and 85,000 mt/yr. Proposed regulations could add 
 an additional $1.9 million for smelters with capacities 
 between 5,000 to 15,000 mt/yr, $3.6 million for smelters 
 between 15,000 to 40,000 mt/yr, and $4.9 million for 
 smelters between 40,000 and 85,000 mt/yr. 
 
 These cost estimates indicate that pending and 
 proposed environmental legislation could add significant- 
 
 ly to capital and operating costs of the secondary lead 
 industry, thereby reducing its capacity to recycle lead as 
 marginal plants shut down. Ramifications could impact 
 the recycling industry. The net result could be less scrap 
 lead recycling, which could result in hazardous wastes, 
 primarily batteries, being introduced into the environ- 
 ment. If this legislation significantly affects the primary 
 lead industry, the result may be a loss of both primary and 
 secondary production capacity, however, the remaining 
 smelters' actual production would increase. 
 
 REFERENCES 
 
 1. Charles River Associates Inc. (Cambridge, MA). Economic 
 Impact of the Proposed EPA National Ambient Air Quality 
 Standard for Lead: Background Support Document. Mar. 1978, 
 127 pp. 
 
 2. Economic and Environmental Analysis of the 
 
 Current OSHA Lead Standard. CRA Project 536.60, 1982, 153 pp. 
 
 3. CRU Consultants, Inc. (New York). The Costs of Producing 
 Primary and Secondary Lead. Implications for Prices, Competi- 
 tiveness, Environmental Standards, and New Technology. Com- 
 modities Res. Unit LTD, New York, 1984, 340 pp. 
 
 4. Putnam, Hayes and Bartlett, Inc. The Impacts of Lead 
 Industry Economics on Battery Recycling. Prepared for Office of 
 Policy Analysis, EPA. June 13, 1986, 32 pp. 
 
 5. Woodbury, W. D. Lead. Ch. in BuMines Minerals Yearbook 
 1984, v. 1, pp. 563-594. 
 
 6. U.S. Bureau of Mines. Minerals Yearbooks 1970, 1975, 
 1980-1985. Chapter on Lead. 
 
 7. American Metal Market. Export Mart Still Strong. V. 94, 
 No. 49, Mar. 12. 1986, p. 13A. 
 
 8. Zelms, J. L. Lead: Hope For Modest Recovery. Eng. and Min. 
 J., v. 187, No. 3, 1986, pp. 32-34. 
 
 9. Murph, D. B., and J. L. Pinkston. Current Blast Furnace 
 
 Practice at Murph Metals' Southern Lead Company Smelter. 
 Metall. Soc. AIME paper A70-41, 1970, 13 pp. 
 
 10. Hudson, E. K. (Lake Eng. and Dev., Inc., Atlanta, GA). 
 Personal correspondence, 1986; available upon request from M. 
 R. Daley, BuMines, Denver, CO. 
 
 11. Hoffnagle, G. F., and W. A. Klinger. Exposure to Airborne 
 Lead From Stationary Sources: An Evaluation of Proposed 
 National Ambient Air Quality Standards for Lead. (Lead Ind. 
 Assoc, project 3220-J51, TRC Environ. Consultants, Inc., East 
 Hartford, CT,). Mar. 1986, 48 pp. 
 
 12. Palmer, J. G., and M. L. Sappington. An Impending Crisis? 
 What Would be the Impact on the Nation's Environment if 70 
 Million Spent Lead Acid Batteries Each Year Were Not Recycled? 
 April 1986, 24 pp.; available from J. G. Palmer, GNB 
 Incorporated, St. Paul, MN, or M. L. Sappington, Lake 
 Engineering and Development, Inc., Atlanta, GA. 
 
 13. Smith, R. D., O. A. Kiehn, D. R. Wilburn, and R. C. 
 Bowyer. Lead Reduction in Ambient Air: Technical Feasibility 
 and Cost Analysis at Domestic Primary Lead Smelters and 
 Refineries. BuMines OFR 67-86, 1986, 52 pp.; NTIS PB 
 86-216447. 
 
 BIBLIOGRAPHY 
 
 Anderson, C. W., P. Behum, and F. Miller. Environmental and 
 Occupational Health Regulations in the U.S. Lead Industry. 
 BuMines OFR 3-86, 1986, 76 pp.; NTIS PB 86-155686. 
 
 Everest Consulting Associates, Inc. (Princeton Jet., NJ), and 
 CRU Consultants, Inc. (New York). The International Competi- 
 tiveness of the U.S. Non-Ferrous Smelting Industry and the 
 Clean Air Act. Ch. 4, 6, Apr. 1982. 
 
 Gill, C. B. Nonferrous Extractive Metallurgy. Wiley, 1980, 346 
 pp. 
 
 Kilgore, C. C, S. J. Arbelbide, and A. A. Soja. Lead and Zinc 
 Availability — Domestic. A Minerals Availability Program 
 Appraisal. BuMines IC 8962, 1983, 30 pp. 
 
 Kohn, A. F., Jr. The Recovery of Soft and Antimonial Lead From 
 Secondary Sources. Pres. at 1963 AIME Annu. Meet., Dallas, TX, 
 Feb. 24-28, 1963, Metall. Soc. AIME preprint #47-M, 1963, 12 pp. 
 
 Peterson, G. R., K. E. Porter and A. A. Soja. Primary Lead and 
 Zinc Availability — Market Economy Countries. A Minerals 
 Availability Program Appraisal. BuMines IC 9026, 1985, 44 pp. 
 
 Raymond Kaiser Engineers. Capital and Operating Cost Esti- 
 mating System Handbook for Lead Smelting and Refining 
 Facilities (contract JO245003). BuMines OFR 81-86, 1986, 282 
 pp.; NTIS PB 86-246592. 
 
 Sealey, C.J. Secondary Lead Smelter and Refinery. Tolltreck 
 Limited, Droitwich, Worcestershire, England, Feb. 10, 1981, 15 
 pp. 
 
 Tolltreck International Limited (Englewood, CO). General 
 information brochures, 1985, 70 pp. 
 
14 
 
 APPENDIX A.— EXAMPLE OF CAPITAL AND OPERATING COST ESTIMATES FOR 
 ENVIRONMENTAL REGULATORY COMPLIANCE 
 
 An example of costing methodology has been included 
 for a fictitious smelter with a 40,000 mt/yr refined lead 
 capacity. It is assumed that this smelter approximates the 
 industry's average level of compliance (fig. A-l). There- 
 fore, the costs presented for each regulation reflect the 
 additional costs necessary for compliance. Costs associ- 
 
 9. Smelter is partially 
 enclosed 
 
 10. Existing process 
 emissions control 
 includes one baghouse: 
 
 11. Small oxide plant 
 
 120,000 ftVrnin capacity 
 
 Materials 
 supply and 
 maintenance 
 
 Administration 
 
 Change room 
 
 Lunch room 
 
 Security 
 
 Battery » | — | r 
 
 breaker 
 
 L 
 
 XJt 
 
 f t t 
 
 Raw material storage area- 
 
 Blast furnace 
 charge bin 
 
 Blast lurnace 
 
 Reverberatory 
 furnace 
 
 Control 
 room 
 
 Fan 
 room 
 
 Exhaust stack- 
 
 Process dust 
 collectors 
 
 -Afterbum and 
 cooling towers 
 
 Finished 
 
 lead 
 
 storage 
 
 -j 
 
 I Refining kettlea > 
 
 ooo 
 
 _j 
 
 I Casting line area 
 
 Oxide plan t 
 
 Figure A-1. — Original smelter facilities. 
 
 ated with these regulations should be interpreted with 
 caution and with a complete understanding of the level of 
 compliance for the example smelter. The components 
 comprising the costs for each regulation are presented in 
 this appendix. Contingencies for each regulation vary 
 according to degree of confidence. These costs do not 
 necessarily equal or approximate the costs presented in 
 table 6 of the main text. The costs for each smelter are 
 extremely variable because of smelter layout, existing 
 technology incorporated at the smelter, and degree of 
 environmental compliance. Smelter statistics are pre- 
 sented below in order to better understand cost estimates 
 for this example: 
 
 1. Production capacity: 
 
 2. Primary feed material: 
 
 3. Operating parameters: 
 
 4. Average hourly wage: 
 
 5. Payroll overhead: 
 
 6. Limestone: 
 
 7. Electricity: 
 
 8. Current acid 
 neutralization process 
 is not BAT 
 
 40,000 mt/yr refined lead 
 
 85 pet batteries 
 
 3 spd, 290 d/yr 
 
 $9.30/h 
 
 35 pet 
 
 $30/mt delivered 
 
 $0.05/kW-h 
 
 CWA 
 
 The costs associated with the CWA are based on the 
 use of lime and settle technology. This technology 
 incorporates acid neutralization, heavy metal precipita- 
 tion and sedimentation, and multiple stage pH control. All 
 battery acid, process water, and water introduced onto the 
 property requires treatment by lime and settle technolo- 
 gy. For this example, it was assumed that lime and settle 
 technology was not being used. The capital costs therefore 
 include an acid neutralization and water treatment plant 
 with a 3-stage settling pond system (fig. A-2). The cost 
 items are presented in table A-l. 
 
 Settling ponds- 
 
 Acid 
 neutralization 
 and water 
 r^vtreatment 
 
 •a 
 
 Materials 
 supply and 
 maintenance 
 
 Administration 
 
 Change room 
 
 Lunch room 
 
 Security 
 
 Battery » | 1 . 
 
 breaker 
 
 L 
 
 XJt 
 
 t f 
 
 Raw material storage 
 
 Blast lurnace 
 charge bin 
 
 LZJ 
 
 Blast furnace 
 
 Reverberatory 
 furnace — 
 
 t J 
 area— 1 
 
 D 
 
 Control 
 room 
 
 Fan 
 room 
 
 Exhaust stack - 
 
 Process dust 
 collectors 
 
 - Afterbum and 
 cooling towers 
 
 Finished 
 
 lead 
 storage 
 
 m A 
 
 I Refining kettlea — > 
 
 OOO 
 lo 
 
 I Casting line area 
 
 I 
 
 Oxide plan t 
 
 Figure A-2.— Additional smelter facilities for CWA. 
 
 The operating costs associated with the CWA include 
 utilities, supplies, labor, payroll overhead, and general 
 office charges. Lime is the primary supply used for 
 neutralization, but coagulants and flocculants may also be 
 added to enhance settling properties. Coagulants and 
 flocculants were not added to this cost model because the 
 parameters requiring these reagents are not identified for 
 this example. Much of the labor associated with operating 
 this treatment plant is not required on a full-time basis. It 
 
15 
 
 TABLE A-1. — CWA capital cost estimate 
 
 Cost item 
 
 Unit cost plus 
 installation, $ 
 
 Number Total cost, 1 $ 
 
 Acid sump pump 1 5,000 
 
 Acid transfer pump 8,000 
 
 Lime storage bin 6,000 
 
 Lime hopper & transfer system 11 0,000 
 
 Neutralization tanks 1 2,000 
 
 Clarifier 46,000 
 
 Thickener 24,000 
 
 pH control tanks 4,500 
 
 PH monitor system 14,000 
 
 ilter system 135,000 
 
 Grounds sump pumps 9,000 
 
 Grounds piping and electrical 2 1 8.00 
 
 Pond recycle sump pumps 11 ,000 
 
 Residue ponds 60,000 
 
 Recycle pond 60,000 
 
 Subtotal 
 
 Contingency @ 15 pet 
 
 Total installed cost 
 
 3 
 890 
 3 
 2 
 1 
 
 15,000 
 8,000 
 6,000 
 
 110,000 
 24,000 
 46,000 
 24,000 
 9,000 
 14,000 
 
 135,000 
 27,000 
 16,000 
 33,000 
 
 120,000 
 60,000 
 
 647,000 
 97,000 
 
 744,000 
 
 1 Values rounded to the nearest $100. 
 
 2 Per foot. 
 
 has therefore been partitioned as a percentage of time 
 required by labor category and average wage or salary 
 category. Administration is considered to be one full-time 
 "environmental specialist" to deal with all regulations 
 affecting this smelter. The salary has been equally 
 partitioned to each regulation. General office charges for 
 all regulations are considered to include phones, utilities, 
 office supplies, vehicles, public relations, and miscel- 
 laneous expenses. These costs are presented in table A-2. 
 
 ~n 1 - 
 
 Settling ponds 
 
 Acid 
 
 neutralization 
 
 and water 
 
 O treatment 
 AD 
 O 5 
 
 Materiala 
 aupply and 
 maintenance 
 
 Administration 
 
 Change room 
 
 Lunch room 
 
 Security 
 
 TABLE A-2. — CWA annual operating cost estimate, dollars 
 
 Cost item Total cost 1 
 
 Utilities and supplies: 
 
 Lime 100,800 
 
 Electricity (200 hp @ 5c/kWh) 13,800 
 
 Repair parts e 6,600 
 
 Labor: 
 
 General labor (2.5 people @ 2 $1 5,000) 37,500 
 
 Maintenance labor (0.5 person @ 2 $1 8,000) 9,000 
 
 Supervision (0.3 person @ 2 $24,000) 7,200 
 
 Laboratory-labor (0.3 person <& 2 $14,000/yr/person) . . . 4,200 
 
 Laboratory-skilled (2 people @ .3 @ 2 $24,000) 14,400 
 
 Administration (0.25 person @ 2 $34,000) 8,500 
 
 Payroll overhead (35 pet of all listed personnel) 28,300 
 
 General office charges "2,000 
 
 Subtotal 232,300 
 
 Contingency (10 pet) 23,200 
 
 Total annual cost 255,500 
 
 NOTE. — Cost per pound refined lead based on a production rate of 40,000 
 mt/yr refined lead: 0.29 <?'lb. 
 
 1 Values rounded to tha nearest $100. 
 
 2 Annual cost per person. 
 8 Estimated. 
 
 PEL 
 
 Cost estimates for PEL are based on a 50 (xg/m 3 
 standard and include engineering and personal hygiene 
 controls. It is assumed that a combination of these controls 
 will limit workers exposure to the PEL standard. Some 
 controls can also be applied to NAAQS because they serve 
 the same purpose. For this study, the cost items were 
 distributed to the particular regulation for which they 
 were most applicable. 
 
 The capital costs associated with PEL include 
 wet-vacuum floor sweepers to control resuspension of lead, 
 a ventilation dust collector with 10,000 ftVmin capacity, 
 six down-cast ventilation stations, and all ductwork for 
 both systems. The example's ductwork requirements, hood 
 locations, and smelter layout are shown in figures A-3 and 
 A-4. A summary of the capital costs are presented in table 
 A-3. 
 
 Figure A-3. — Additional process emissions control equip- 
 ment and ductwork for PEL. 
 
 1 1 
 
 Settling ponda 
 
 1 1 
 
 
 Administration 
 
 Acid 
 
 neutralization 
 
 and water 
 
 
 Change room 
 Lunch room 
 
 /-^treatment 
 
 0/\Q 
 
 o s 
 
 Materiala 
 aupply and 
 maintenance 1 
 
 Security 
 
 
 
 Battery z 
 breaker 
 
 Jar" 
 
 
 JLi 
 
 i t 
 
 I — Raw mat 
 
 i 
 
 area— > 
 
 Control 
 room 
 
 Blast furnec 
 charge bin 
 
 / 
 
 LG 
 
 erlal storage area 
 
 ~7~ 
 
 Blast lurnace 
 
 V- 
 
 Finished | 
 lead 
 storage I 
 
 Fan 
 room 
 
 L> 
 
 Exhaust stack - 
 
 Process dust 
 collectors 
 
 ReverberatoryC 
 furnace C 
 
 Refining kettles — 
 
 -Afterburn and 
 cooling towers 
 
 i Caating line area 
 
 q Oxide plan t 
 
 o 
 
 _L 
 
 Oxide 
 atorage 
 
 Figure A-4.— Additional downcast ventilation and ductwork 
 for PEL. 
 
16 
 
 TABLE A-3.— OSHA's PEL capital cost estimate 1 , dollars 
 
 ^t item £g_ 
 
 Boor sweepers (2 @ $27,000 each) 54,000 
 
 Ventilation dust collector (450 hp fan; 460 V, 495 A, 
 
 100,000 f^/min) 307,000 
 
 Ductwork (14 ga, gasket and flange connection, 1 ,020 
 
 lineal ft @ $300/lineal ft) 306,000 
 
 Downcast ventilation (fan, 6 workstations, 480 lineal ft 
 
 @ $70/lineal ft) 33,600 
 
 Subtotal 700,600 
 
 Contingency (15 pet) 105,100 
 
 Total capital cost 805,700 
 
 1 Smelter assumed to be in partial compliance with PEL. Therefore, costs 
 do not represent the total cost for compliance. 
 
 2 Values rounded to the nearest $100. Total cost includes purchase, 
 freight, and installation where applicable. 
 
 The operating costs associated with PEL are pre- 
 sented in table A-4. Safety equipment items include hard 
 hats, respirators, earplugs, gloves, and uniforms. Laundry 
 service includes daily washing of uniforms. The other cost 
 items are described in the table. 
 
 TABLE A-4. — OSHA's annual operating cost estimate 1 
 
 rv«»item Annual cost Number Total 
 v ' OSITOm per employee, $ of people cost 2 , $ 
 
 Safety equipment 240 78 18,700 
 
 Laundry service 210 78 16,400 
 
 Medical examinations 240 92 22,100 
 
 Personal hygiene 3 440 78 34,300 
 
 Floor sweeping NAp 4 1 .3 32,800 
 
 Maintenance NAp *2A 105,000 
 
 Utilities 6 NAp NAp 62,000 
 
 Baghouse liners 7 NAp NAp 19,300 
 
 Administration 45,900 0.25 1 1 ,500 
 
 General office (estimated) . . 1,500 
 
 Subtotal 323,600 
 
 Contingency (10 pet) 32,400 
 
 Total cost "356,000 
 
 NAp Not applicable. 
 
 1 Costs based on a 92-employee labor force. 
 
 2 Values rounded to the nearest $100. 
 
 3 Costs include overtime pay for shower time @ 7.5 min/d @ an average wage 
 of $9.30/h @ time and one-half pay. 
 
 4 Costs include 3 h/shift, 3 spd, 290 d/yr @ $9.30/h plus payroll overhead @ 35 
 pet. 
 
 5 Costs include labor, maintenance supplies, administrative, and indirect 
 costs. 
 
 8 Cost for electricity based on 178.2 kWh draw @ 24 h/d, 290 d/yr, and 
 5c/kWh. 
 
 7 Replacement of baghouse liners is $38,600. The liners are replaced 
 every other year so one-half of the cost ($19,300) is charged on an annual 
 basis. 
 
 8 Cost per pound refined lead based on a production rate of 40,000 mt/yr 
 refined lead: 0.40e/lb. 
 
 1 r- 
 
 Settling ponds 
 I I 
 
 
 Administration 
 
 Acid 
 
 neutralization 
 
 and water 
 
 
 
 Change room 
 Lunch room 
 
 •—■■.treatment 
 
 0/\D 
 O I 
 
 Materials 
 supply and 
 maintenance 
 
 
 Security 
 
 
 
 
 Battery _ 
 breaker " 
 
 -igr 
 
 
 
 Exhaust stack- 
 
 Process dust 
 collectors 
 
 Afterburn and 
 cooling towers 
 
 Oxide pian t 
 
 Oxide 
 
 storage 
 
 Figure A-5. — Original smelter process emissions control 
 equipment, ductwork, and building enclosure. 
 
 1 1 
 
 Settling ponda 
 1 1 
 
 
 Administration 
 
 Acid 
 
 neutralization 
 
 and water 
 
 
 
 Change room 
 Lunch room 
 
 ^-Ntreatment 
 
 0/\D 
 
 o § 
 
 Materials 
 aupply and 
 maintenance 
 
 
 Security 
 
 
 
 
 Battery _ 
 breaker ~ 
 
 Jczir^ 
 
 
 
 NAAQS 
 
 In estimating the costs associated with the NAAQS, it 
 is assumed that the smelter can achieve the 1.5 n,g/m 3 Pb 
 standard, the annual mean of 80 (ig/m 3 S0 2 , and the 24-h 
 mean of 365 u-g/m 3 S0 2 . The proposed process controls are 
 considered BAT, but in reality, it is not known whether 
 these process controls can meet the standards. 
 
 The capital costs include smelter enclosure, installa- 
 tion of an additional baghouse, ductwork, air monitoring 
 systems for lead and S0 2 , installation of an S0 2 gas 
 scrubber, enclosure and surfacing of the entire yard area 
 including sump stations for water runoff collection, a 
 wheel washing station at the primary materials handling 
 access, and an agglomerating system at the process dust 
 collectors. Figures A-5 to A-7 show the smelter layout 
 with the specific costing items highlighted. The most 
 important items assumed to be already installed for this 
 example smelter are the partial plant enclosure and the 
 
 ^Additional 
 
 building 
 
 enclosure 
 
 Scale, ft 
 
 Figure A-6— Additional building enclosures for NAAQS. 
 
17 
 
 J 1 - 
 
 Settling ponds 
 _J L_ 
 
 Acid 
 
 neutralization 
 
 and water 
 
 Otreatmant 
 /\D 
 
 o 
 
 o 
 
 O 
 
 Materials 
 aupply and 
 
 maintenance 
 
 Administration 
 Chang* room 
 Lunch room 
 
 Security 
 
 Load material 
 atorag* 
 
 Figure A-7 — Additional process 
 merit and ductwork for NAAQS. 
 
 emissions control equip- 
 
 process emissions controls at the blast furnace, reverbera- 
 tory furnace, refining kettles, and oxide kettles (fig. A-5). 
 Also, this smelter has an afterburner and cooling towers, 
 which are probably not standard level of compliance items 
 for the lead industry. The capital costs are presented in 
 table A-5. 
 
 The operating costs associated with the NAAQS are 
 presented in table A-6 and are based on the operation and 
 maintenance of the previously mentioned process controls. 
 
 TABLE A-5.— NAAQS capital cost estimate for the current 
 regulation of 1.5u.g/m 31 
 
 Cost item Total cost 2 , $ 
 
 Plant enclosure: 
 
 Strip doors (5 doors; 1,216 ft 2 @ $1 5.50/ft 2 ) 18,800 
 
 Plant enclosure (25,500 ft 2 @ $8.30/ft 2 ) 21 1 ,700 
 
 Foundation (350 lineal ft @ $26.00/lineal ft) 9,100 
 
 Air monitoring: 
 
 Lead monitor (photometer system) 51 ,000 
 
 S0 2 monitor (fluorescent system) 32,000 
 
 S0 2 gas scrubber 53,300 
 
 Yard paving (2 in asphalt, 4 in aggregate, 96,000 ft 2 
 
 @ $0.82/ft 2 , plus mobilization) 79,800 
 
 Curb (6 in by 9 in with 8 in subgrade, 2,1 00 lineal ft 
 
 @ $7.25/lineal ft) 15,200 
 
 Baghouse (100,000 frVmin system; 450 hp fan, 460 V, 
 
 495 A) 307,000 
 
 Ductwork (14 ga, gasket and flange connection, 520 lineal ft 
 
 @ $300/lineal ft) 156,000 
 
 Electrical system airflow monitor, fan restart system 50,000 
 
 Aqglomerator system 34,000 
 
 Wheel washing station 16,000 
 
 Subtotal 1 ,033,900 
 
 Contingency (1 5 pet) 155,100 
 
 Total cost 1,189,000 
 
 1 Smelter assumed to be in partial compliance with NAAQS. Therefore, 
 costs do not represent the total cost for compliance. 
 
 2 Values rounded to the nearest $1 00. Total cost includes purchase, ^ 
 freight, and installation where applicable. 2o O c? 
 
 TABLE A-6. — NAAQS annual operating cost estimate for the 
 current regulation of 1.5u.g/m 3 
 
 Cost item Total cost 1 , $ 
 
 Materials and utilities: 
 
 Electricity 86,800 
 
 General supplies (10 pet of electricity) 8,700 
 
 Maintenance materials (60 pet of labor and supervision) . . . 54,800 
 
 Baghouse liners 38,500 
 
 Labor: 
 
 General labor (2 people @ 2 $15,000) 30,000 
 
 Maintenance labor (1 .5 people @ 2 $1 8,000) 27,000 
 
 Supervision (.4 person @ 2 $14,000) 9,600 
 
 Laboratory-labor (.4 person @ 2 $14,000) 5,600 
 
 Laboratory-skilled (2 people @ .4"@ 2 $24,000) 19,200 
 
 Administration (.25 person @ 2 $34,000) 8,500 
 
 Payroll overhead (35 pet of above personnel) 35,000 
 
 General office (estimated) 3,500 
 
 Subtotal 327,200 
 
 Contingency (20 pet) 65,400 
 
 Total cost 392,600 
 
 Cost per lb refined lead based on a production rate of 
 
 40,000 mt/yr refined lead: 0,45c/lb. 
 
 1 Values rounded to the nearest $100. 
 
 2 Annual cost per person. 
 
 RCRA 
 
 Capital costs associated with RCRA include the "part 
 B" permit, the ground water monitoring system, and the 
 material testing laboratory and equipment. For this 
 example, the well monitoring system includes eight wells 
 (each 80-ft deep), well casing, pumps, pipe, electrical 
 hardware, caps, and well-site paving. Material testing 
 equipment includes an atomic-absorption spectrophoto- 
 meter, multiple and single element tubes, and miscel- 
 laneous equipment for wet- and dry-test methods. The 
 part B permit costs between $30,000 and $50,000 and 
 generally varies because of smelter size. For this example, 
 the cost is assumed to be $42,000. Also included is the 
 battery breaker enclosure. The ventilation and ductwork 
 has been charged to the PEL regulation (fig. A-8). The 
 capital costs for RCRA are presented in table A-7. 
 
 Settling ponds 
 _! L_ 
 
 Acid 
 
 neutralization 
 and water 
 streatment 
 
 Administration 
 Chang* room 
 Lunch room 
 
 Security 
 
 Figure A-8.— Additional building enclosures for RCRA. 
 
18 
 
 TABLE A-7— RCRA capital cost estimate 
 
 Cost item Total cost 1 , $ 
 
 Well monitoring: 
 
 Drilling (1 wells, 80 ft deep, $1 2/ft to drill and case) 9,600 
 
 Pumps (10 @ $400 each) 4,000 
 
 Pipe and electrical (10 sites @ $450/site) 1,500 
 
 Overhead electrical (10 sites @ $450/site) 4,500 
 
 Cap and pave (10 sites @ $250/site) 2,500 
 
 Installation (10 wells @ $250/well) 2,500 
 
 Contingency (10 sites @ $150/site) 1,500 
 
 Drill rig mobilization 600 
 
 Subtotal 26,700 
 
 Battery breaker enclosure: 
 
 Foundation (432 ft @ $11/lineal ft) 4,800 
 
 Siding and roofing (13,340 ft 2 @ $8.30/1f) 110,700 
 
 Strip doors (4 doors; 928 ft 2 @ $15.50/f^) 14,400 
 
 Contingency (15 pet of above items) 19,500 
 
 Subtotal 149,400 
 
 Miscellaneous costs: 
 
 RCRA part B permit 42,000 
 
 Atomic absorption spectrometer 55,000 
 
 Support equipment, lab supplies 8,000 
 
 General office (estimated) 1,500 
 
 Subtotal 106,500 ~ 
 
 Total capital cost 282,600 
 
 1 Values rounded to the nearest $100. Total cost includes purchase, 
 freight, and installation where applicable. 
 
 The operating costs for RCRA compliance include 
 well monitoring and testing, and material testing. The 
 costs are composed of labor, equipment operation and 
 
 TABLE A-8.— RCRA annual operating cost estimate 
 
 Cost item Total cost 1 , $ 
 
 Well monitoring: 
 
 General labor (.3 person @ 2 $14,000) 4,200 
 
 Laboratory-labor (.3 person @ 2 $1 4,000) 4,200 
 
 Laboratory-skilled (2 people @ .3 @ 2 $24,000) 14,400 
 
 Supervision (.3 person @ 2 $30,000) 9,000 
 
 Payroll overhead (35 pet of above personnel) 1 1 ,100 
 
 Materials and utilities (1 pet of labor & supervision) 3,200 
 
 General office "2,000 
 
 Subtotal 48,100 
 
 Waste disposal: 
 
 Contract haulage 173,000 
 
 Disposal fees 108,500 
 
 RCRA administration (.25 person @ 2 $34,000) 8,500 
 
 Payroll overhead (35 pet of administration) 3,000 
 
 Subtotal 293,000 
 
 Contingency 3 (15 pet) 51 ,200 
 
 Total cost 392,300 
 
 Cost per lb refined lead based on a production rate of 
 
 40,000 mt/yr refined lead: 0.44 e/lb. 
 
 1 Values rounded to the nearest $100. 
 
 2 Annual cost per person. 
 
 3 For well monitoring and waste disposal. 
 8 Estimated. 
 
 maintenance, laboratory supplies, and supervision (table 
 A-8). Waste disposal is based on a 100-mile one-way haul 
 distance by contract carrier. The dump site is considered 
 to be a class II or better hazardous waste disposal site. 
 
 ♦U.S. GOVERNMENT PRINTING OFFICE: 1987-190-U1U Region 3. 
 

 
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