Prices, lead

Price et al. (2001) thermoluminescence-dated aeolianites on both Lord Howe and Rottnest islands, off the coast of Western Australia (a lack of suitable crystalline minerals meant that attempts to date aeolianites on Norfolk Island were unsuccessful). They found that emplacement occurred at different times in different places, leading Price et al. (2001) to suggest that sediment availability and the type of offshore shelf play important roles in addition to sea level. On Lord Howe Island, the numerical dates obtained by Price et al. (2001) indicated that dunes were deposited only during high... 

In 1993, the Environment Minister has signed an agreement with the consortium of battery collectors, producers and importers to set up a system granting an efficient collection of all spent lead accumulators. The levy paid by the consumer for car batteries of 20 amperes minimum is about 3.10 , an amount considered sufficient to allow a good support to the system even when lead prices are low. More than 95% of spent batteries are annually collected. 

Looking at table 11, it can be noted that the recycling rate is higher in those countries with a consortia-based system. Lower rates in other countries are explained because the collection is directly linked to lead price therefore, when the lead price diminishes, collection becomes less attractive as in this case the impact of transport cannot be further reduced, and the overall collection cost vis a vis lead price is higher. Free competion may therefore show some negative aspects, especially if one considers that acid-free batteries are paid better than others. On the contrary, the overpricing-based system is able to meet the costs of a complete recovery and, at the same time, to protect the environment. 

Lead concentrate and high-class lead ore, with 40 to 60 per cent, lead, 3 to 10 per cent, antimony, and generally carrying some silver. Antimony is usually sold at lead-price by the mines, and also sometimes by dealers, on the consideration that they receive the resulting hard lead at an advantage on the market price. 

The treatment charge is negotiable and can escalate with the lead price, but is typically of the order of US 250 per tonne of concentrates at an LME lead price of US 1000 per tonne. The escalation is typically 15 per cent of the increase in the lead price, but is a negotiable item. In times of surplus... 

The cost of concentrates. In accordance with Chapter 3 Commercial Terms for Purchase of Standard Lead Concentrates concentrate feed has been costed on the basis of a 60 per cent lead content, 1000 g/t of silver and 3 g/t of gold, and a treatment charge of US 265/t of concentrate at a lead price of US 1100/t, giving a net cost of US 650/t of concentrate. 

Lead price is the main variable and uncertainty in any assessment of smelter economics, and is outside the control of the smelter operator. A new venture or investment in lead extraction facilities, whether mine or smelter, must be able to withstand wide movements in the lead price and at least remain cash positive at all points in the expected price cycle. 

The impact of lead price on the margin, and return on investment for the sinter plant-blast furnace process is given in Table 17.15. From this it can be seen that the margin increases by around 29/tonne of lead produced for every 100/tonne increase in the lead price. This reflects the distribution of lead price gains between the concentrate snpplier and the smelter and is a function of the concentrate purchase terms - particularly the escalation of the treatment charge with the lead price. 

The cash break-even lead price in the above example would be US 624/t, below which the secondary smelter would operate at a cash loss. 

The relative sensitivities of cash margin to LME lead price is shown in Figure 17.3. For primary smelters a fall in lead price will cause a proportional fall in raw material costs and a decline in allowable treatment charge, but the dechne in treattnent charge will be only a fraction of the lead price decline and in some contracts may in fact have a floor below which it cannot fall. This has the effect of significantly reducing metal price sensitivity. 

Fig 17.3 - Sensitivity of operating cash margin to lead price for primary and secondary smelters. 

The reverse situation does not apply to secondary lead, since scrap availability is relatively inflexible, and any significant growth in lead danand must be met from increased primary lead production. This will result in inaeased concentrate demand and cause an increase in lead price. 

The above may present a somewhat simplistic view, but does illustrate the interplay of primary and secondary operations in influencing lead price movements. The other major factor is of course mine supply. 

Throughout this period, the benchmark sulfur price had been the f.o.b. Frasch price at their Tampa Bay terminals. In 1992, this practice was abandoned. The f.o.b. Vancouver price (in U.S. funds) became the leading price indicator. Recovered sulfur had been sold at 20% to 50% lower than Frasch. Earlier, their irrflu-ence on global pricing had been minimal, as this sulfur was not readily available for export. With the opening up of Vancouver to export shipments and then an efficient system to get it there through Sultran, Canadian recovered sulfur producers set the global standard. For now the price was maintained less than Frasch, as recovered producers needed more of their market share. 

During the 1960s investment in new lead smelting capacity was fairly modest and evenly balanced between the primary and secondary sectors. The majority of new projects were located in the industrialised countries, and in particular in the USA. Following a period of exceptionally high lead prices, the 1970s saw a phenomenal expansion in secondary capacity (of... 

Although it is perhaps misleading to try to compare present-day prices for lead with those prevailing even 200 years ago, let alone in the ancient world, it can be an instructive exercise in some respects. The fragmentary evidence that is available certainly seems to support the view that lead prices are much lower now then ever before. In Greece in the 4th century BC, for instance, a talent (30-35 kg) of lead sold for five drachmae, and thus a ton would have been worth about 150 drachmae, roughly equivalent to the market value of a mining slave. ... 

Long term trend in lead prices. Sources Metal Bulletin and Roskill. 

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