Document MMQ8Y5g9g0jOMByb8N5kK6vGL

It. B. FRAZER Aaalxtant Secretary ad Aaalatast Treasurer dA BUTTE. MONTANA December 2, 1948 Ur. i. S. UcGlcne, Vice President Anaconda Copper Dining Company Hennessy Building Butte, lentana J _ v. ;< , -- Dear Sir: Herewith, copy of report of Ur. S. C. Jacobson, Ketallurgical Auditor, covering audit of metallurgical operation of the International Smelting and Uefining Company - Tooele Plant for the month of July 1943. Copies of my letters to Kr. 7?. K. Daly, Comptroller, and Dr. Horn T&rburton, Cashier, are also enclosed. 3JF/EX Snc. cc - Hr. 8. . Daly PNYC 00012239 -/- 11~>KJS~x) 1 L,Oi>bIi >iIL4ivie C07d>TSi. An a c o n d a Co p p e r Min in g Co mp a n y DRAWER 19 61 K. B. FRAZER Aaslataat Secretary and Assistant Treaenrer dA December 2, 1943 BUTTE, MONTANA ' Mr. lion Jurburton, Cashier International Smelting end iefining Company 321 Kearns Building Balt lake City 10, Utah Bear Sirt Herewith, three copies of report of Mr. S. C. Jacob*cn, Metallurgical Audi tor, covering audit of metallurgical operations of the International Smelting and de fining Company - Tooele riant for the month of July 1343. Cm copy is intended for your filea and case is for Mr. Floyd. Tcu nay wLnh to give the third copy to Mr. Aardlaw or some other interested party. This report, being the first to cover these operations, is written up in complete detail and as a result of sectional presentation involves sose duplication. Pertinent ratters are sumsrised on pages S3 to 40, and to facilitate your review the subjects which say involve further consideration are set forth beloet Page 7 and 34 - Sale of Severbarstory Furnace Betteas to American Smiting and defining Cogoany: Under letter agreement covering the above sales, payments for silver and copper are made on quotations for the week 120 days forward from the date of arrival of ma terial at Tacoma. Oaring this interval, the material is continued in the inventory et Tooele as though shipment had not been made and only after final settlement is the Inventory reduced by proper weight and metal content. In addition, the latter agree ment does not provide for definitely defined splitting limits. In view of the agreement involved, it appears the accounting is reasonable for the market may* fluctuate considerably in the 120-day period and the selling price is not known until the period has elapsed. The agreement* however, is ecoewhat unusual and although we assume the terns result primarily from the nature of the material, it being understood that the material is seaswhat hard to dispose of for only small quantities can be treated at one ties by reason of the impurities, we would like to verify this assumption or ascertain the real reason for the 120-day period and the lack of definite splitting limits. Ears 10 - Ore et Stock Pile! Inventory of lead and copper ores in stock pile and bins was valued on a life basis starting April 30, 1948. Value per pound of lead in ere in stock pile at the audit date (July 31, 1948) was only 10.353 cents which would Indicate an even loser price at April 30, 1948. Since the market price of lead for April ranged between 15 and 17,5 cents a pound it sould appear that even after allowance for freight and re fining a coat in excess of 14 cants should result; consequently, we are wondering at what date the pound price of lead ore in stock pile was established. - PIMYC 00012240 t;.r; iv \r tv'/sx-:** Pago 11 - Ore In Process* ?rca the last paragraph It appears that Material coat of lead la process at July 31, 1943 was 17.353 cents a pound, which Is the price at which it was transferred fro* stock pile and bins. Transfer price of 17.553 cents is In order since that Is the price of the July receipts and thero is an increment in the Inventory at July 31, but, if our assumption that material cost of load in process is valued at 17.333 cents a pound, then the cost of lead in process exceeds its raw ore equivalent by 3.323 cents a pound (17.353 cants minus 11.73 cents). Possibly the material cost of lead in process is not valued on a llfo basis, but it would appear that it should be if wo are to be consistent with practice followed in valuing raw ore and, also, our practice in applying reduction costs, which are far below current ooets, to the in-process inven tory. Pago 30 - Cres frea Park Utah Consolianted Uinaa Coroany; Ore sold to the International Smelting and He/ining Company by the Park Utah Con solidated ISines Company is sampled by the Utah Ore Sampling Company, a public sampler. The Sampling Company, in addition to sampling, weighs cars gross and tare and obtains the moisture per cant. The moisture content is accepted by International as are the weights} however, cheak weights are mads by International. It is our understanding that the Sampling Company provides both International and Park Utah with the sample pulp from *hich assays of metal contents are made, flo independent sample being taken by International as a check on Uie Sampling Company probably because of the additional expense involved. If our understanding is correct, it appears that thsre is a chance of errors in sampling going undetected with resultant error in metal content on i&ich settlement is based, since both buyer and seller are provided with pulp for assay from the same source. Page 33 - Base Bullion Hate for determining lead and Copper Payment* on Park Utah Consolidated Hines Company Contracti PNYC 00012241 Contract provides that any increases or decreases in the leed and copper bullion rates shall be for the account of the shipper. On ApriJ. 20, 1935, the bullion rate was increased from 312.30 to $13.00 per ton. The contract of October 31, 1933 speci fied the 413,00 bullion rate. However, all settleaenta are calculated using the old $12.SO rate as a base. Ho explanation could be given regarding the use of the lower rate. Its use results in reduced peymani to the shipper of .025 cents per pound of lead or copper paid for. Ur. 0. 4. Burt, Ore Buyer, expressed the opinion that, in view of the smell amount involved and the long period of tine over which the 412.SO rate was ustd, no adjustments or.corrections be mode and use of the 312.30 rat* be continued. Tou may wish to discuss this matter further with Ur. Burt. Page 55 and 35 - Repeat Assays on Combined Jetsis Reduction Company! Page 36 - Limits of Variation of Astare - Combined Metals Seduction Companyt On page 36 the Auditor indicate* that he has discussed these matters with you nd that you are to confer with the kanagesent and advise the Auditing Department. Page 37 - Valuation of Cold: Total gold cost is divided by $34.91 an ounce to arrive at ounces purchased in order to show uniform price and 31/nplify presentation in the statements. A slight variation in actual gold ounces purchased is caused by this practice, but the alter native is to list all sold ounces at their several respective purciuse prices. If lots of gold purchased and prices paid are not too numerous it would seem that it would not be too much trouble to list them as they actually are, rather than follow the present practice. Page 37 - Sampling Ore Cost> Sampling costs are not included in coat of ora in stock piles at Lead Plant and Sulphide Concentrator presumably because when this ore is removed from the stock piles at a later date it is again sampled. There is soma Justification for this prac tice inasmuch as, if sampling costs were added at the etock pile and thus included in cost of stock pile ore going into process and this same ore was in the in-process in ventory and cost of sampling again added, the inventory could be burdened with two sampling costs. However, it is recognised practice to charge purchased ores with sampling costs and to inventory such sampling costs. Page 40 - Consignment Stocks of leaded -Cine Oxide; liinsty thousand pounds of leaded zinc oxide were consigned to C. L. Duncan Com pany, Los Angeles, California in August 1947. Sales of 22,900 pounds were reported in November 1947, but none have been reported from December 1, 1947 to July 31, 1943. It is our understanding that this product does not have ths ready sals that dsleaded line fuss does and possibly that accounts for the long lapse without a sals, but, if there is any doubt in your mind of the existence of this inventory and you think it advisable, our Auditor, who is now at the Anaconda 'Aire and Cable Company, Grange mi, could go up to Los Angeles and take an inventory. Tour comments on the foregoing subjects and any others which you may have relative to the report would be appreciated. If convenient, the next tins a metallurgical statement is prepared will you please have a oouple of extra copies made and forwarded, to Butts for our files. tJP/LK sc - &r. i, 3. Hellene ir. Sf. 5. Daly Pogscn, Pelsubet * Co. Tours very truly. ~2T/ F0a K ? PNYC 00012242 Copper Plant: Accounting Procedure Shipments Inventories Lead Plant: Accounting Procedure Receipts Shipmexfcs Inventories Slag Treatment Plant: Accounting Procedure Receipts Shipment* Inventories Sulphide Concentrator Plant: Accounting Procedure Receipts Shipments Inventories Errors and Discrepancies General Remarks and Conclusion -;; - MV'-' 6 to 8, Inclusive - ,'X.-*'-Y*J' ' *. -a - " : 9;-to iSy-Inclusivs m fj"- * *' . -15, Inclusive .to'17j?In.clusive r ` " |to;;23/lIaclusiTS " fc--.* ;a -4i-*/.to\2S^Inclus.iv4e* ^^toiasSf--------- ? *r_J36^tp_^8,Incl usire 29Ur?i.'JV' V-,Vr^T:,. ^^aoitoi'sirinclusivs ^Inclusive ^32;; -,Xr -v5ii . SiSAto Ap^XacIueiT* . -Jr * *&..* ' ** p4:X||f|' ' " . a .;. a Av. *ht\r` N11174.02 INTERNATIONAL SMELTING AND RgINISG COSUS' TC0BI3 PUNT ~ TCDELK1 UTAH ' JULY 1946 S7NQP5IS OF PLANT OPERATION Tbs following synopsis has Tor its sources (l)`a paophlst.sotitledn^Intarnati^M^Sasltiag^CfMipiaT^., Tooele Plant, Tooele, Utah,* prepared for the members of the American Institute oli, ;:r Engineers, September 1, 1925 (2) thesis of Ur. Paul H. Playd, son of Hr. F.?H. Floyd^Chief>Clerk^zltten as r- part of requirements toward a Bachelor of Science degree in .Metallurgical login#eringV.aad-cl5)ipaperjbyiMr*'H/ - . M. Rockwell, former Superintendent of Lead Plant, entitled "Tooele Slag Treatment and'Delsading^lsnt..*'-Frcm ' observation of the plant and inquiries nrde by the auditor data hat been revised t<^';eiTect^an^up{to '.'date*dais-. * ' cription of the plant. -: C` The Tooele Plant of the International Smelting and Refining Coop any is located^.International,-.Utah, the terminus of the Tooele Valley Railroad, five miles east of Tooele City azri thirty-fi^Jmiles.eoafcbsewt'of- Salt Lake City. It is a customs smelter ?nd consists of (1) a lead-zino flotation coacentrator- {8) lead sa*iter. and (5} a slag treatment and deleading plrnt. A copper amelter dating from August 1910-discontinued operations-' during 1945. The lead smelter started or^rntions in February, 1912) the Lead-zinc selectiT# flotation in Soveo-. ber 1924, and the slag treatment plant in 19*1. . ' All ores are sampled at the plar.t:s saurple mill for the purposes of ore settlement, and determination of the smelter treatment that is to folio*', the only exception being those already tabled at the public sampler. ^"V A major portion of the ore and concentrates is delivered to the plant by railroad,- the'only,exception .. being a small amount of trucked lots. "Railroad* ore is weighed on a Fairbanks typei*S" track seals mad la then ' dumped into temporary storage bins to await sampling. These bine are designated alphabetically from ."A* to "S", inclusive. Total capacity of these bins is approximately 3,000 tons, capacity of bins varying freo. 100 to 450 tons. The lead-zinc ores are received main.lv from Park City and Bingham, Utah, and frea Colorado, Nevada and Idaho. Lead orea are received mainly from Tiutic, Park City and Bingham, Utah and from Idaho and Nevada. The ore is conveyed to the sampling mill from the receiving bins by conveyor belts, crushed,.mixed and a representa tive portion automatically separated as a cample of the lot. After sampling,.the.jcrM. ^^dlstrlbuted'by. belt conveyors and railroad cars to Lead Plant bins or Lead-Zinc Plant bins, all.in the mslte;r'yards..-.^TheVlead,cre.'. , is shipped by belt conveyor or cars to Lead Plant charge bins and the care,of|Iead^^^^^^^^are^|3au^^|.o^ths,jpju -.. concentrator and dimped into receiving pockets there. SULPHIDS CONCENTRATOR .: "T' '*V:- The concentrator was acquired from the Utah Consolidated Mining Coopany,on1^April^l,' l94, at..iihich.,.';V time and up until November 1, 1924, it operated on copper ore from Bingham.: Du.to,:apoor.oppar market and..*-. .O due to experimental and research work done on concentration was remodelled and operations were started as a custom lead' pacity of 500 tons per day. .1 second unit of 250 tons per which was Increased to 500 tons per day on Hay 1, 1925, since whlieicfhc time .theconeert^^^^coasists-(of' t^unite, T ea ch of which may handle 500 tone per day of lead-zinc ore. Briefly, the operation consists of crushing and sampling the ore. as i above Jisscrlbed^snd to.aFconsidsr- able extentt bedding the different normes* npHrionnr trot MsennrHding? thhe*m ttjro> the* rcnonnrcwennttrreaftfoirr.inorder^t^msinntat innVas uniform. a feed as possible. Standard practice of ball mill grinding end classificatioalis^fbllow.edtSandithen^with-differ- treated in tbs section or combination of sections in which it has been found- the.!;u,_,-- gards metallurgical results. The lead concentrate is sent to the Tooele Lead1 Plaatjfahrf Anaconda Copper Mining Conpaay Plants at Anaconda and Great Falls, Montana,: and.th#2` Lead Plant for fluxing purposes. The tailings are discarded. la:;baat;adapted`a* re-, concentrate -to' tbs ' entrates/to the Tooele Assays of feed and products are about as follows: Feed - Lead - Irco - Zinc Lead Concentrates - Lead Zinc Concentrates - Zinc Iron Concentrates - Iron - ;:.6 to `*8 to^lO* '10 to^rl2ji - 55 -t/*^ 50 \io% 38 J to: . This concentrator is especially unique in that it is treating a varying many mines on a strictly custom basis, and making a three mineral separation-land coi alone. jS-J. 'nh:" ... *of\'lea<i~xinc: ores.from * - ` `-mvthsa br*flotatlon PNYC 00012244 $r. | . sail -r ****< i 'lo4Sas>>NTU<.,'i i flAfHitilfct SYNOPSIS CF. PLANT OPERATIPHS LSAD SKSL1TO Load oreo are received by belt conveyor and railroad cars from the aaiplirig'idlI$e^Ta^.delivere4 to', steal charge bins having a caoncity of 13,000 tons. These bins are divided into:two.`sectionsflone ofvWhich oox> - .. tains the materials for making up the sintering plant charge and the other the'jbre?jrXuxe*V cok^andieiirter ussd*. in making up ths blast furnace charge, . ;: " ^ ' 1C* ` ' &&: r, Practically all of ths fine autezial treated at the lead plant,/sucb?M.^iwsitottse^^lus,o4i*t, eto**, ^' requires uintering to agglomerate it before including it in the charge for tbe_'blart^jfurna.ce'.^Tharf^are, 22'aia- taring plant charge bin3 each having a capacity cf 120 tons of ore or 240.rtons* ofi^^eotratsstvl^iwctly.'bslow.v * .? the3 bins is tho charge floor. The various materials for the charge for theI'siaterii^pLast`a^efdrawn^fthe.' ./h bins by mechanical feeders adjusted to deliver the desired portion of each to..a-beltv.conve7or'vhichrdischarge* V; them to a nixing device. From this they fall on an inclined conveyor belt leadingthe feed'floor^pf-'jth* eLa-'Y tering plant where the charge is distributed to the five-ton feed hopper above; eachtaachlne. * ' *. b' ' > ZMlavi?1-*- =r There are ten standard Dnight-Llord ointerlng machine#. The charge./.!* mechanically .spread'-iira^tihick layer on a traveling grate. The surface of the charge is ignited by natural1 gajxburner* ia-a fire box`"spreading the width of the grate. Ignition is maintained by the continuous drawing of sir. through the ignited bed by means of suctJ.cn boxes connected to a Sirocco fan. Sulphur Is about 12% in the charge tad is roasted down to:abouV 1,2^ ia the sinter. Th* material fuses cUghtly rz\d forme a clinker-liko mass which is'discharged at the'ead of the machine aid falls into railroad cars. These cars are hauled to the blast furnace..bins and tbs sinter dumped there in to form part of the charge to the blast furnace, Ths gases from ths sintering.plant are passed through a o*>isture chamber ani then to a Cottrell precipitation plant where much of the dust they contain is'deposited. The Cottrell catchos about 65^ of total dust collected. The gases pass through a flue .to a. brick stack IS feet in diameter and 200 feet in height. The ccttrell dust is returned to the SinterrPlantf^.?/ . ' ,7'': : ..>>>..' > i;- The Blast Furnace Plant conriofcs of five lead blast furnaces 52* to 55" X'llflO" at tbs tuywre'lins, Sach furnace has 25 tnyeros. The holght from t ^re line to charge floor is 24 feet S inches, Ths capacity, of each'.of these furnaces in about 550 tons, total charge or 2"4 hours i.n..c...lu...d..i.n..g.....dump s`lag.and..r.e...t.r.e...a..t.e...d...m....a..t.e...r.i.a. ls. At ths present time only one furnace ia in operation. 'T- -*3 - v r:r >vit.r.rt/n r%4 ..>--1 . ; are of sintering is equipped with a swing scale hopper havirjj multiple beams for accuratte l'saighing,dof]>h* ingredients tovthe -blast, furnace charge. The constituent materials are dropped into the charge'car, ^ilsfibjmotlqa, thus bedding the': / chcrgo in the car itself The car is run over the fbrhace and the.chargs.v4roppsdjJbs'riiair Tbs^cfaarge'conjistevof coko, sinter, dross, limaa--rock, siliceous ere and scrap iron* . ' '' -**' The gases from the blast furnace are drawn off just below ths ;chargs|VT10oriand; sntsr .*^cylindrical- dust catcher,, tangentially. These catchers are 20 feet in diameter and'18 fert;in`hsl^^^Thefgases 'are'discharged . from this catcher into a steel balloon flue 499 feet long, whence they axe'fbrce'diintQ^tbe'baghouse by^a'Sirocco fan with a capacity of 190,000 cubic f set per minute. This brick bagbouse contains*1,440rcylindrlcal' cloth bags 13 indies in diameter arvd 50 feet in length. The fume from the gas Is .shakentfrom-theInaide :of .ths bags by re versal of the pressure on the bag, causing it to collapse. The fume falls. lnto`pits^Troa.`which it isyreoovedperiodically, either being shipped to Great Falls for recovery of;cadaium.or/retaiu''to>thablast.furnace as' part of a fresh charge. The filtered gases from the 'b--agb-o--u-s--*-r-^---e--^---^o'--^:-g--^**^ ^^p^^^^|^'^^^4ks^.^ the -same stack into which the sintering plant gases are recei Slag and epeiss are tapped from the blasft furnace Iinnftno 1large 7aovabltsk i,Tq^shasaat <r4tKh8~y?Ainn*1 whi^c>hs servpTa*roat. t4iro>nn is made by gravity. The purpose of the forahe&rth is to allow the slag, spsiss'ahdyemall amounts..'or entrained metal lic lead to settle ijito separate layers due to difference in epecific gravity and>'lmttiscibility!vThe flag over flows from the forehearth into a second settler and from that into 7 ton alag potefjihich are taken, to. the 81*g Treatment Plant. The spelss is tapped into pots, granulated, loaded into-.cars,{w>5^d!ai,.stok pile 'and period ically treated in the old UcDougall Roasting furnace for removal of. areeioio. ^.^e^fMu^ting'vCalelne isVretumed to the sintering Plant, The small amount of entrained metallic lead in':the^alagfisHappjedMjitoia^lead^ladls and taken to the dressing plant. Metallic lead is tapped from the blast furnace into three-eubicvioot|boxidsa2^pots and taken to ths " ` dressing plant where it is dumped into any one of four 60 ton drosaing kettles.^Inl^^ss kettles ths lead.is V agitated with compressed air introduced by raan3 of a pipe into the bath,^.-fWhen^4^tlC58s,,layer.;is formed an inch or so thick, it is nkimaed off the top of the l#3d bath by means of a-sieve ladls^ojfsrwisdibyc'aviDono-rail^orane, ' The ladle is set over ar empty drois kettle and any molten lead is allowed to* dralj^trtffiEElhs .drossd.n theAladle is * then taken to the Dross Reverberatory Plant* : >^*''' ' "v The mechanical dressing continues until there ia little or no.^droee. f^raSj^^dl^ducMj!thevcopper ^ content to .10 to .15 per cent. When the first drossing is caaplete tha.'balliox^i^ygiwpedg^^ons 'ofltwo 120.. ton kettles for the Hulst process. In the 120 ton kettle the lead is agitatsd^I "** " >; ^ ^ ' 2; - 13AO Si-SITSI i-Continued) SYNOPSIS OF PLANT OPHUfflOIB^f rw^ stated by i ' unted oil a plat/crm \<Kt bridges the kettle, thus putting^the^^ellerfstmlVUn^the canter t.ho .".olhen b ! The bullion is cooled to about 6e1i1f;0 f . and sulphur is ^owlydiu*>e4 4^&*?>brt''raatd by tho i.T:poilo rs Thirty to f'-rtj- zrdnules o.-o taken in the addition of 250.v'5ot it takes about ?.* 0 CO minute.'* for the dwss to fora and separate froa.th7aolt dicated when the dross becomes black ponder. The drooa la skinned .ia*attchiLth.V*' the first operation. - :i ; ___ _ e.1 in After dressing operation a i'*n\rifu~*l puop is placed over therdrc*siix^Jcettist' nulls for ships* it to the A-.">'\i.c -a Smelting and Refining Cospaajr/aijirtia,. Nebraska, for-.refining. 1:'.S cV ?. iieverberatvi`7 PI rnt 7'j? the dross from the DrosaingPl^t'-end'producesthree products, rntts^ -:.r cj.se =.-.n. j*ad. The :s'tte if- <'old to t..e American Smelting and Refining Cojtpany>=lhe spel3s-;is.;period- :eally treated tho Copper Concerting p.lnrt for recover/ of copper and'tbe a^^^^^ad *'.taken back'^to'tha:- Dressing Plant ?L.V? TRSATWT A/D QglRAPINO PLANT !h* Ci** Treatment Fl-oV '1 coernticii in September 1941, It has an average daily capacity of 352 hv-'.r -ir.d treat-, rolter* *1*5, :i g. crude ore end zinc flue cleanings* Itoltea lag comes from the lead bleat. ;.>!: Cold is wined frva t:l5 l ivl slag durnp., in which there was, in 1939, an estimated 300,000 to 400,000 lone of clng thftt c-vOd be profitably Zinc ore added is an oxide ore running about ISj zinc*- Zinc clean- ings cone from the furnace dowutoks vrv.1 cusi?nation chewier* Charges to the' fuaing fumace arw cospoeed of 10 pots or from 10 to 50 tons of material* A charge varies from 10 pots of bst slag to 7 jots of hot slag and/3 pots of cold material. The hot slag is rkarje-i as soon as it is tapped from the blast:'funwee,'- .< Ccrv.tr v'l-lon of the ;Oor*t *1? modeled .xfter that of the Anaconda Copper Mining Company at Kast Helen*, nt a nr.. It - ?-. \.r of (l) f .'.-:,i in; -r.d puiva.-i7.irig plant, (2) coal feeders,'(3) furnace, (4) primary flus stem, (M Or.^acoca fan. (6) ,i..a nd ;7J delcsdmg kiln, A very brief description of each .follows: itk cocl is dumped >\to ^1 bins having about 100 tons oapacityltYItiir-drisdin a;Wgle*i.Coles y bln with 6 iruh pi;$ valves through iljtreVconaected to the`40-ton storage the foader tanka are filled with,-,.coaliv!;Screw feeders, which can be ^perr.ted at variable speed*, ere .counnttrd on the hopper bottom of each.t'ankvaad^deliver tba..coal to- an'air iInnliee*ctor. The air injector naLitcins pressure differential carr tho furnace and thence to The fu runes is shaped ic a feet ?ddv. ID feet long and 11 f-et 4 inches high to the bottom of: the chsirgeci5|OUfc'i'.buVdj;'24'.fet high.to the highest port ox Hie water-jacketed top. Tlie downtake,, etiich'oonductefihe|fBmgftden^gas#ajfrom ^h^/fumice into the flu* system, is 8 Test wide, 8 l'ect high and 30 feet long and ^a\a^ri2^^jaokwt.'?44'Viacbaa high across' the furnace coaieciloii to keep tho sing from splashing into the dowots,*`fc"'if ^ (Alexander Laist cf the Anaconda Copper Mining Coapary Slag Treatamjt'F inlet type having r. connection for both air and ooal, mid are water..1' side the brick cosbuatlon chamber ty asans of an expansion joint* The moisture- channel oqaipped with 48 spraj-s. Between the moisture chamber and U-tnbe coolingjeeotionS having an area of about 114 sq. ft. All the dust from the balloon flue-and mof'* ~ trucks or mine cars and goes to the deleading kiln as part of the eecoedary;^^^^ 120 foot long and is made up of 16 U-tubes 55 feet high and 37 3/4' inchern'inifU^M^ partition running lengthwise of this section and 3 dampers, the gaa'ia ado/;tY**** time* To keep the cooling effect of thio section at ma-rj mm efficiancj^tha-ia mallsts twice each shift on seven different levels, each tube being-hitglQ.itoil falls into hoppers from where it is drawn into small cars and makes jip Ipactt** kiln, ^hDpper.'bottcmed^fXLd is ` 15. fset `:of|.balloon`` flue imher ia|cl'eane<i- into Utuba.pooling faction is ^^r-fmeaqs'-ofra. canter ^ifjvd;^.t^'8^tubes, at a ^^'uoied<wiib''; a^oden S^on;eachlleTel^^rhe diet *"ry^feed ita:. the^del fading, The beyheus* fan .is located equi-dietant from the outlet of the ^tubescaa4;^he. ij^^^.the.l)agbouee header flue* Volume of gas handled varies between 110,000 and 112,;0*0.-0/*. cu*^ftljfi:f^*i!r^'e{uidej^V^uar*'6ondition8. There are two parallel begheuseo, each having 294 woolen bags; 18liache^jjj^iameter a^d/SO-.feet long* The bags are shaken with mechanical shakers which raise and them drop the-bag^l^!^nJ^<^e^d^-Tevoiation-' The bay, or pit section of the building receives the duet which is removed by a-pt^umati^rai^aiviynTeylng-ayatam* The dust discharges into the deleadir-g storage bins above the kiln* " p XjK s e h o ps is o f p l a n t o p s r a t io ms liLVl TSSATi'Srr ASO 5SI5AD1H3 Ylk (Continued) 1718 ilni c. .ling (rotary) sila in Td ft* 6 in., long &ad ? feet in diaaateSaadSaifi The s5r. scr i:; r).o .i cars for .de discharges i'i'usi Ibis kiln into a cooler* From the cooler SJI^atedtfv, rating rinruit TJith a z:r'`> "siVi.1,. aa?ft of rolls. Screoen tndersise la. carrilead'lintrr-'a'tf^^yninTeeyyoprr'-bb' alt^t.ffVj<T-' srit to a sino report plant. The lekaadH ffuumne* HdIisBcnh'naarMgeAe HinnVt.ort. ftKha*'/^wc\oa|>Bia^)f*^f<bnan^haatej^^ofctbe '***'** rondary circuit The combustion chamber discharges into a 122 foot balloon. flu*yfte^u^|>a.ijboppor^ bot .eras for the r eirival of the fume into hand-trawoed cars. This chamber, i;0 ' U-t-ubes previous! described, A septate vacuua system railroad earn for recirculation through the sintering isplaunset do.rfofrotrhsishipsmecetnito'tnol,',ctoi^nas^uMuir^o.*;!bS^&^|^'j*5*' 5>S*d>/'/i j*-:h"ir, -:'r-:1'';:- -:. INT5RHATIORAL SkgLTIHG AHD RgIKING ODUPAKT-'-f- TC0SL3 PUtIT - TOOn*. tmK -5 JULY X945 . ` ,'j CCfYESPXJHT : J'.XJLV: C'JV ,'v'i ' ACOOlAHlcTomj'u5 nPtPicCgCFDroUcRoBrdFaOBfoCOrPtPhEaR PCLoApNpTer Plant Here designed to ehoe as. Per ai poaaibl^^^ccflt;or/optrfcticna and the valuation of inventories. Ultimate determination of profit* under operating available due . to lack of information on final sale of finished metal. Estimates were, however* prepAredland^are yet prepared, although the plant has not been in operation since June 1945. Present estimates sre !<reality final when'all sales are made in the West and actual revenues are available The following coameat will brleflyrreview the-* accounting procedure as to (l) receipt and cost of materials* (2) shipments and sales of productsrand {3) in-' vmtoriea and their valuations. . - '' *-~y V' U) Receipt tnd Cost of Materials '`v^* Since cessation of operations in Jims 1945 no materials have been purchased for treatment* ill original materials on hand have been disposed of* .< > (2) Shipments and Sales of Products All present shipments are from by-product inventories* The .products .available for sale are - reverberatory furnace bottoms, reverberatory flue dust, roaster furnace,bottoas..aai.roaster.,flue.dust, the last two being designated as "UcDougall" bottoms and dust* Sales hara4l*en_jaade'in..thav'past;to the Anaconda Copper Plant, the American Smelting and Refining Coop any at qp4 the:Tooele Lead Plant* Sales of furnace bottoms and flue dust to the Anaconda Copper'Plantiare...by letter agree ment. The Anaconda Plcnt has indicated that due to arsenic and other impurities, Ja 'the .materlal.lt cannot treat more than small quantities at one time. Otherwise the copper.'.AOOdes would.be*to.coa-i** taminated with deleterious elements. The salsa to the American dnlng Coilpepy er*.**1 cade on the basis of letter agreement.. During July 1948 some reverberatory'fttrnacev#bo,ttcsk'.w_er.i^old''. to that Coup any. Sales to the Tooele Lead Plant are made on a achedulefprepgrbd.byyths^manageaiMit^fe^f. and designed to yield, a fair profit to each plant. _ (3) Inventories and Their Valuation v' `; V*. The inventories remaining in the plant are deeignated as by-producta*^Jj,the.!tid"'content .of' these materials during a normal course of operation would be available ia.*fialabed 'product!on only-.if reprocessed at additional cost, such content is not "worked bade*. to'oclginalijuterial equivalents*. The value of these materials is therefore based on an estimated salesWalue'^Tor^actually on..an - ever<;:V normal" basis established years ago on a schedule basis* A brief resuse.^ofitleisqhe<iule usedtoivalus''-.. ; the remaining inventories is as follows: Metals paid for on all inventories: Lead t Copper t Silver : Gold : 40 of content Content less 4 lbs., per ton and balance at 97% $ 95% of content :" 95$ of content ,r Metal Prices and Treatment Charge: Lead Per Lb. Cooper Fer Lb. Silver . > Per Ounce: Reverb Bottoms Boaster Bottoms Reverb Dust Roaster Dust 2.00$ 2.00 2*955 2.00 10.078 10.500 10.500 10.500 34*75$'.f* 34*75 v,:. 34.75 *' 34*75 The treatment costs per ton are based on impurities* HlilffP' Based upon present or normal metal prices the above ^;be.veryjooose^yative . v Inventory during July 1948 was reduced by $8*364*66 due to saleof^^.rprn^uctAy'^*lt1hfeKlaLkera*.d4j!plaatA`^aimD4d5*4t.ao rei the American Smelting and Refining Conpecy. Revenue from'sales^iwa^$30^^J^*^^&^iph^ue(d9d'ltbityalue of the inventory as carried by $11,862*77, Cost of reclaiming thVfi0ap^^i^^&os;lK^ut|^oiBL^ajipanse of J $3*094.99 was $4,061.10 leaving a profit of $7,701.67, PreseQt`etal.`pr^4wpuld^ices*_ixly^hare to drop considerably to convert sales of this material fro* a profit jto^ail^s*2^wi--^;^.T 1i-'ii'Ci'Hlkk'dt'j "' ' . \{-h; --r <v. - tf- PLANT SHIFMENTS - COPPER PLANT Reverberatory rlns Dust and Furnace Bottorn to Lead Plant Actual reiht end assigns are obtained to determine metal contei shined to the Lead Plant* The management baa submitted a schedule. transferred,. This schedule is based on the assumption that the material side cecpany or to the Lead Plant at a price fair enough to yield shipments during July 1948 were from Inventories remaining after shut . 1 K sc-. Reve-berqtcT.-- Pumace Pott y?s to American Smelting and Refining Coapany. Tacopa'y?Wahlartoa..`:^.";' /.%v . > Furnace bottoms shippe edd to the American Smelting and Refining Coopany gt.Ttecsa, !lashingn,l:were also from inventory remaining after shut down, The terms under which the Bhipmentftarefmaderare.'o^lined in- letter agreement dated June 19, 1947, written by Ur, R C, Cole of the AmericaftjSaelting and Reftniag Company to Ur, Glen Port, Ore Buyer for the International Smelting and Refining CompanyJ7 l briefisyaop*is:of the terms is as follows: .tljfjV'''' >: Delivery - F0,B,, Tacoma, flavhlngton Tcrnr^e - 100 tons per month, nickel content not to exceed 3 tons per month,'. 'A* Duration - Terms subject to cancellation upon written notice, Feyaontu: Gold - If ,03 ocs., per ton or over, pay for 96,73jfc 34.913 per.ouacey Silver - If 1 troy ounce or over, pay for 95 at Handy and Sanaa'quotation for re*k 120 days forward from date of arrival at Tacoma,., d*. V duction .3 of an ounce, .-yV; Copper - Deduct 20 pounds and pay for balance at New fork cathode'price 120 - lays forvnrd, leas a deduction of 2,5^ per pound, r,,, Deductions: Treatment - $10 per net dry ton. Zinc - 7% free; charge for excess at 30$ per unit. Arsenic - 3 free; charge for excess st 5$ par unit, $3.00 per ton. If 1# or over, no penalty,.:1 Antimony - 1% free; charge for excess at 50$ per.unit Nickel and Bismuth - Charge $2.CO per unit, See aloo under eneral Comr.Lera - Reverberatory Furnace Botti^a^ Company,* ar^^ ^- INTBNTPRISS - COPPER PLA?7T Reverberatory Fumce Bottoms V-j ; :r * Y: The furnace bottom inventory at July 3., 1946, includes aet&l in furnaces Bps,: 3 and' 4,'^Tbe current in ventory is arrived at by reducing Testing Department estimates by known {^antltiss/'shipped.h.Ihe Testing De partment estimates were made by measuring, sampling and assaying. the^bottCM^^^^^^a^hese1t|tests^i8 .as Furnace Number n.*. Date Sacpled _____________________ METAL 3~'C Lead - Lba, Copper - Lbsf . T SllTtr1-Pane,, ~"^ ^ fCSold'- Ounces: 10/28/43 3/ 6/29 325,296 79-704 405,000 811,914 307,869 1,119,733 ..... * ; ..%iUK90.r -->:o:oo-* -5 'W***'" 530.000 8,792,000 To the inventory as thus determined was added frozen matte in furnao 10,500 96,600 Grand total carried as bottoms ... at cecnt^ !vr > operations 415,500 in June, 19*5 1,216,363 ! Shipments of inventory during the ensuing shut dawn period reduced-J^ii tent at July 31, 1948: :r. i> to June 1940 Inventory 95,657 23,02* 594,258 48,85* J-V \-4*> j it :it ~j ~ in- - - < !?tT- ,^.5oo '.Mi. ` : * rattdHrr.aBtJoo < jftllcgjrig,.coa- ; ;iai ` 5|26.6ejl: , . if K PNYC 00012249 'flS r COPPER PLANT INYTOTORIgS - CCPf^ PLANT (Centinutd} Rev*rberstory Furnace Bott-ons (Continued) Furnace Number Date Saroled Lood - Lbn, H T II ~C O H'T Copper - Lba. Sll^ei^Ctoe** GGoolldd-'- Ounces All removals to date have been made from furnace So. 3, the other furnacevieeuining:intact., Ibeix*- ventcry on furnace No. 3 at July 31, 1948 was: ,^-M -v.ffik;/v" 'fc&l;-W;- lr ' '='&ywt*\ h 'ft Y '' 5&M **.' 5,453 189,739 t^l^MS^;' feJ|lpL?S 148,981 > to October 1943 Inventory 1.69 23.38^ . - rtfiSlTC^V'- <.>; )I* -v.'.^T 'Sfo&f| :\ Providing there is enough tomage remaining to yield the remaining copper^|iiui:silYer`ooatent'as per. book inventory, it is apparent that the lead and gold inventories were quitevepaaerretivelyestimated. This is substantiated by test taken on furnace No. 3 on April 22, 1945, ten months'-After shutdown. The`inventory T/aa determined to be as follows: 5 ~C'"'"j* - 595,027 1,276,478 J46,860.00 "4,417.000 This inventory was not used due to instructions from Ur. E. 0. Sowerwine to.'.the effect^thatilnventoriea established at time of shut down, except fer subsequent removal adjustment*','-*** to remain as such until final cleanup of all plant inventories, Excavation underneath the bottom of furnace No. 3 has yielded earth impregnated with veins of lead. Accuracy of the inventory is indeterminable .until .final, cleanup is made. v--> ' Under the lettor agreement for sale of furnace bottoms payments by the American Smelting' andI-Refining Coroany for silver and copper are to be made on quotations for week 120-days forward from.date of 'arrival of bottoms at Tacoma. Settlements are therefore delayed approximately 4 month* from'.arrival of material. . During this interval the material is carried in inventory at Tooele as though'no .shipment;bed been made. L ' When final eottleaont is made, the inventory is then reduced by the properiweigbfcfoad^metal'contect. v-.< I Reverberatory Flue Dust I'. U ?! ^' On August 30, 1343 and February 23, 1945 (about 3 months prior,to hut|dpvn)'.the' Testing Department" estimated the reverberatory flue dist inventory to be as follows: ' i' '.* .i'v.-c . iii* , 8/30/43 2/23/45 Sections 5 and 6 Sections 1 to 4_> Inc. Total Dry Tons 680 1.966 2,646 Lead - Lbs. 146,987 439 .280 586,267- CoDDer -''Lbe^i rSilver - Ounces ' -Gold - Ounces j; *118,094 3*} 4;024.2 -133,340 395-. 280 -* ' 331,740/ 465V080 At June 30, 1945, the Metallurgical Accounting 2,646 308 . . '.V T|s.-* Vvv'-Wf'S- 7-4. .V.*?.*.-.' . No removals had been made from the flue up to July 21, 1948.'' Consequent^tbe^accuracyjo^,the .above inventories has not been proven. In addition1 to the flue inventor7'`Ta.:larg*iSqi?jaititys:9fi<iust.:Tiias3tored et' . stock pile at time operations ceased. The combined tonnage'of dustbin Jnn;SO,11949,,t 4,012 The inventory of July 31, 1948 was: 3,278 Indicating shipments of: 734 605,268 441,188^ 164,080 723,917 v'itp- ,517,564 vm/f V:.' -.-;*3-t--sC 779.754 626.459, *;>*i:-' ' v:153.295 Accuracy of the inventory remains for future determination. PNYC 00012250 iipte ;*? ^ vif. ..w- v . tisu:-.- ... .nWdlfeiMi iii>yafli COPFHH PLANT IHVBMT0RI33 - COPPSR PUINT (Continued) McDouall Flue Oust Sstimate of dust tonnage In licDoug&ll dust chamber was mads twice by tbj^M^i^7.D*partjnt"ahortij'.`.'. " after operations at the plant ceased. Using the analysis of dust roflwved lfrok^thi^ehaabr^daring tbe^last'-^' month of operation the inventories as per tests would be as follower Date of Tst Total Tons Lead - Lbs. 11 S T A i/ C 0 Conper - Lbs1.* < Sllrr-~Ounc --Yi^-Gold . :*`l- 9/24/45 10/ 2/4S 500 1,172 8,000 13,752 1631,0,0000-i0. ;< 382,,0072.. <%; 3,516.Q0 000 T' ;c. 200 ' The second test was more thorough then the first. Neither of these tests were used,'however, on metal lurgical reports. From time to time the Metallurgical Accounting Department 'estimated the dust inventory up to the time operations ceased. The inventory at that time, June 30, 1945 .vast / ..V. 1,600 65,800 330,250 " '9,400*00 310.000 Since that time shipments have been made reducing the inventory at July 31, 1948 to: 278 9,688 133,233 1,444.34 150.110 This would indicate that shipments had been made to the extant ofs - .'jhj. 1,322 56,112 195,017' . * T^5.66' 159.890.: To date then, removals have been mado exceeding either of the Testing Department estimates except for copper content. Only final cleanup "ill divulge accuracy of Ustallozgical Accoonting Department estimate, although to date it proved to bs far superior to that of the Testing Department^"v-^r.-v-. McDougall Purnsce Bottoms -: 1 Jll-4;-. . *s - v ' Tonnage of furnace bottoms has not been changed since the plant: discontinuedjOperafcion*r;:>The-e8tiaated content is as follows: '-r*.' Dry height Pounds Lead - Pounds Copper - Pounds Silver - Ounces Gold - Ounces 1,056^000 32.,112 l .\V *?:} . 24,331 :; ' 5'- -`S*Sa^lP^-:V V vr r Valuation is carried as ^2,298,,33. No data was readily available-as*to.;etbod pf.imrentorying/or method of arriving at metal content* Presumption is that estimates were made'oa'basisf^^^^rigU:-giy^|^ p ; Converter Copper . , : * ; - >**?' f*wbr;-y $.- . The only converter copper carried as inventory July 31, 1943, oonsistsdjofi6C^acIlds at.; 856, pounds .eachh for a total inventory of 35,640 pounds. This inventory is carried.by'thsT is made by the Tooele Office. flea < and no;.yaluatipn <ik: -r Sir v.. iV'S, ' :? PMYC 00012251 ;; y .......= >,.; =. . : w$ ISAD PLANT ACCOUNTING PROCEDURE FOR LEAD PUNT Records are kept by ths Accounting Department to furnish the. New York 'Offtes-'ffit'h'.c______________ ___ . of materials for treatment, gales of product and valuation of inventories. -Valuation/of lead^bullicaviinventories however, is mde by the New York Office and any profit and lose ctoterminatIona-:mde;'by.the;. Tooele. or.Salt Lake offices are necessarily estimates. All inventory valuations of-the Slag Tratant<Pi ^e-nndt by:tht Toosls 'Office and in that respect the accounting data on that plant.is more. coaplets|.thsa|^at.jCor,>ttbsIXsadi?lt.:rFiaaI statistics, however, on both plants are available only at the New York Office.^Thr^ecri'ptioa^low^briefly. de- tails features on {1> receipt and cost of materials {2) Bbipaeflts'and'sale'f`prductaiand.*(S)fcijXTentry val-^fci^ uati0M' ` (1) Receipt and Cost of Materials W .'S&yi Materials purchased for the Lead Plant consist of high lead content.ores, concentrates, `residues, scraps and inter-plant 'and inter-coopany materials. With ths exception, of vthe .inter-plant materials, all are purchased directly ty the Ore Purchasing Department.. InteJh(ria-this^rsport^a..Teprsssnt.ativs * . contract is sunnariaed giving the usual purchase terns. . settlements, issues the vouchers in payment and records ths.porchase'-cnstlon^thavgmsrallbooks`-.-Ths purchase cost is not segregated as to classes of material purchased,., only.on* .'total appearing .on trial balance as "Ores Purchased - Lead Plant,* Another account is kept segregating eost.:of ores for the Sulphide Concentrator Plant. The Salt Lake Office tabulate,tbs ores .by.;Shippers.showiag full detail on metal content, metals paid for, treatmert. charges, penalties and.net most-.of ora purchased. This statement is submitted to the Tooele Office there abstracts are.prepared^showing metal-content'of all., receipts. A check is thus obtained on the weight of ore and total natal'`content comparing tbs two. statements. The Tooelo Office accepts the net cost as submitted by^ihsiSalt^iaks Office. The inter- coopany materials received during July 1943 were arsenic residue from ths``Anaconda Copper Plnat and. * ' ores from the Anaoonda Copper Mining Conpany Darxin and Shoshone aines^-The New.'.York Office'of tha.v. International Smelting and Refining Company is credited with the proceeds.due the AnacondaCopper .-I.\ ' Mining Cospany. Vhe purchases are all rode by letter agreements. Inter-pl&sb purchases, such.as.' reverberatory flue dust and furnace bottoms from the Copper Plant aad.lsad furns.from ths Slag .Treat ment Plant are all purchased under schedules provided by the aanagemmtV^Tbesa. schedules ars 'cal culated to give both the shipping and the receiving plants a fair.asrgiii^ofi profit amdiths'schedules - are revised from time to time to equalize profits as uecesalty-requires.^ These.interrplantjtranafera in no way affect overall profits and ere made simply to .provide data on-profita' byplaats.f^The Salt' Offic e ^ V f 4 U |41 AM t \\M .AM. .A W M.1 AM., MM 4 WA 'a.'*,AUa < mAMm MaI * ku.A La * AWAvj A the cost to The main product of the Tooele Lead Plant is lead bullion'iahippad; tooths-JLmerioan Smelting.and Rs- .'* fining Coapany under toll contract. The lead, silver and hi%ith,.,ar^gwttBrnablefcaad. <&har^oonfrent . sold or charged for according to contract hereinafter discus4ed..?:^hlJM?Ckl$rstumabls.'astA^^rs^au4s];i by the New York Office, hence any profit calculations, by. ths-.essttsa5flfficsa^are1esiimatase>-w ~ turnable lead end silver are wholly owned by the International-Smeltinglkad-'SefiDlrgACospany/ although the returnable bisaith is sharedl on a percentage basis with.the. AnaoondaX*c^3pwr-_..M...i.i.x..i.n..g.i.Co*piay.^"lhiB .;; is due to. treatment of Anaconda Copper Plant's arsenic residue', .hlgh'^1 nibVaimith^contsi^Lbyttha;Tooela'vf Lead Plant under agreement that bismuth-la bullion, is .to A.be>;divl(^d^>^m2^^a^wo^co^anif5v^Blaat ` ' - baghouse fume is'shipped to the Great Palls wieebrolytdft ^na :PIimt^ar|^t^yeryT'nfjfeed^ sale ,. --;' is made on lettsr agreement, and is highly profitabl.e to: bothlplmta^ths^Tbosls .Plantvdisposlng',of an't.-V*' unwanted material,, the Great Falls Plant being able to treat':ijjritsd^q^'ntitissl'pcofits.blyjb>?Ths.MeWs^^'v-- York Office of the International Smelting and Refining Coopany. is^chJU'gadCfoc^the value...oT',this material- and sales account credited. In addition to the above products .wmsjconvscter/'oopper. is. produced-^/...'?' treatment of dross reverberatory speiss in the old copper coorartIng.plamtT^Zher.oopper.bullion is'^:> shipped to the International Smelting and Rsfining.Coo^ai^, ,PrthriJiboy^1WwwJJeraey1.'for'refining.' >- After toll charges and agreed deductions the copper, sll.ver. k^gol4^are;returnmblm.^As^inuthe case" of returnable lead, no sales revenue is reported to .the .Weatera^pffices^frere.prejlt^ciiculstlons must f be estimated. So entries are made by the Salt Lake..Off1cs^tQjfeecord,i^yeyta'ent^ehargos?orreyenu.es.from production of converter copper. Molten slag is. sold `to:the';Sl^VT^e!atMa^Pl^'t^inder4^ermu''outlined * } by the management. For further particulars on this Sc8Dsats;iajtbi:<*S*lag Treatment".-y.i Plant section of this audit. v' '" ' ' (3) Inventory Valuations .- rr-v {a) Ore at Stock Pile As noted under comment regarding tonnage and atal|cccisa^iaffqre_*ia atockpils,3tabulatioaf is made of all receipts at the stock pile by lota.rvThs'printj^KcSi|IfftoB*thia .tabulation has columns for pounds metal paid for, money paid, price deduQtions^and^r.eatmeatfcharges^'All this information is calculated from settlements as submitted.^by thelOrc^Purchsming.'P^artment, with the exception of sliver and gold valuations. Per 0^^owervdne'ths silver ' ^ PNtfC 00012252 '> --V " .: V~ ' I v V\ k LEAD PUNT ACCOUNTING PROCETURS FOE LEAD PLANT (Continued) (3) Inventory Valuations (Continued) (a) Ore at Stock Pile (Continued) :^vi=a. is priced at 34.75* per ounce and the gold at $34.00 per :ounce.^itI^h1^n^ioicafTKUi.orthodox-' `-`Po method is used in arriving at ounces gold paid for. A tabulationfl*?flrat?made'ahotwl2ig;.theamouxlCr *UW- paid for gold a* per actual settlements. Thie cost is th.eD:divide.d.sb3rr$34^91,:.govemjaent*'price, ' - . to arrive at ounces paid for. This number of ounces sill therefore vrary^.wdth thsrfold.pald for as calculated on settlements wherein various gold prices are used. -The ounces psid.for as.thus arrived at, are multiplied by $34.00 to arrive at total inventory, Wlue. jRsamon-'for 'this, practice ia discusoed under cocments "Inventory Valuations - lead.Plant.* .* * After the detail for all metals is set in and footed accordiag,'to;.the vartouAfpilss/posW;t > lags are made to the "Record of stock Pile Ore.* When added tp\the^rior;aoath"inventory a - "total to account for" is arrived at. $/ >..v . ' V.' Ae previously mentioned, removals of ore from stock pile are detendned frc*'scals tickets ' showing weight, and laboratory assays for determining metal content. The weight and metal content, of the reoovals are then posted to the "Record of Stock Pile Ore.* When a pile ia cleaned up, the last prior inventory is written off. Otherwise the metala paid for and the. valuation thereof are set up at an average of the "to account for* as above meationsd.s, However,: sinp*TApril`30, 1948, a last-in, first-out method has been used on lead and copper valuatioasi'-replaoing the -*to;aceoant. for" method* Having entered the receipts and removals to the "Record of'Stock Pile Ore* all colunns are footed to a new inventory which is transferred to a work sheet showing .the treatment of crude ore. The metals paid far in all receipts are adjusted by. metala paid for in inventories to arrive at metals paid for treated* Providing the pounds paid for in tha treatment is less than the pounds paid for in the receipts, then the average price of the poundsipaid for in tbs receipts is used against the treatment (last-in, first-out) and the etock-pile'inventory is arrived at by deduction. Example of this procedure for July 1948 on lead.inventory/isJas''follower.. ' " Using Stock Pile Record f . V-**-' %' *r- <# ; 1 OUsing- TTrrejiatjtnmeennt.t'N' Wbrokr'kS'Shheeefct*-` : Pounds Paid For Inventory Julyi^.948: Stock Pile 3,344,989 Bins 841-587 .Total 4,186,516 Cost Per Lb. t. .. . Pounds ;-> Paidi* -,, *Lb. " *'. Amount 9,989 $ 334,133,99 .'^3,3U,989i'i^ $334,133.99> 17.164* 144.409.65 -a'*' S<i.,587<^n7.1t' ''l} - >144 .'609.431 473,743.64 {U^lSSj';,;|^78"'743.6t| ' Receipts 3a974ftll9 17553< 697,576,35 17.5536 - -' 697-.876.28- To account for 8,160,635 $1,176,319.89 V:'-.#,i60j >'$!&*l,176,9.09:r Inventory July 31, 19481 Stock Pile Bins Total Put into Process 3,582,612 876.405 4,399,017 3,761,618 108* * *,5S7.',$ji8i8a{:*li| 18l.34S.W-S4?->- 876 ..O#'- 577,871.46ii*]4` 15.909* t 898(MB^t3^^^^i J54`jJpS364;699.38,* ii -te >-&i3l.348.73 : '-f. "' By using the 17.553* cost on material put into process,/* high^[ocst;iMui/uaed^and^ieonM- quently inventory lowered by $61,823.38. Talus per pK>mKi;:i^ntpr3^j^j,lbniered:fmTl25P^ per . pound to 10.353* per pound. It is apparent that this:proctduz^cssti^-*iATntoryL.vpluitions > lower than those carried on the Stock Pile Record :-AichIb*foM.ii^nij^^ichiof!^ja^^-in/;firrU out method above described was a starting point for maintaitdng^^^'sonably^i^mi'iny.entory.. To * bring the Stock Pile Record into agreement with tha revised'ovej^illi^epta reconciliation or revision will be necessary. - -..f -If:;. AC00UKTIN3 PROCSPURK FOR LEAD PUNT (Continued) (3) Inventory Valuations (Continued) (e) Ore at Stock Pile (Continued) '& &>*' - ' ' `vjyif'J- si: *fc. , It was noted above that when the pounds of paid.for metal-in .the aaterial^put:into:proceaxfii /' leas than the pounds paid for metal in the receipts, than the price^*aetel^^tbej>eceipts ,i*jused on the treatment, However, when the material put into proces#vdccee<kf:tbeli*ceij*e'.{eoms...invBtor7 treated) use of the received price is not justified, 'In.this .aTeot^theJfpouadsXtreated is'divided 'ifc into two parts, one being the whole received poundage'with the'cosd,"`v----- - -* >- * - of the poundage at the prior months inventory value. -:> - 7.t -'v$5 (b)^ Ore in Bins .. ** "**.' . * After having determined the bin inventories by bio measurement.-and.calculated weight,' a.tabu-. . lotion of these inventories ie made by lot numbers* As in tbs-:eaaffore#recaivedaf stockpile the metal content, paid for metals, value of paid for met ala.-ind^ti^taent* chju*gs^'are .obtained: from settlement data and tabulated* Following instructions as. before':mentionedJ-.ailyer^ is'valued.air 54.75^ per ounce and gold at $34.03 per ounce* Lead is valued'exactly at oat',' all^adjustmenta to arrive at a treatment at last-in, first-out cost being made on stock pile ores, as previously dis cussed, ' : > (c) Ore in Process Ores falling within this classification have two costs) namely^-parchas*- cost and- reduction cost. To arrive at the tonnages and octal content upon which to apply, oosts, use is made of a "worked back" inventory similar to that used by the. Montana planta.jfcr inventory.valuations. Only products which are In direct line of treatment, however, are worked back to an original material equivalent. The plants in order are (1) Calcining, (2) Sintering!mid1 (3) Blast Furnace. The pro ducts directly in line are therefore calcine, sinter and molten leadv^Inventory^af the latter pro duct is valued by the New York Office, leaving only sinter aad'.'cal'cin#'to be.worksd'back to tbsir original material equivalents, A number of other aderiaisara^daased.as^by-prqdttctt*- .Some are .. . lead dross, blast matte, epeiss, blast cleanings, Xorehsart)j;jiJctsrij(a,^hlast|>a^oase-fume, blast flue dost, converter cleanings, converter baghouse fuBS^*and:*aijAs|i^rplanVl<deaaii^s^;.These')xro--jr: ducts are not worked back to original material equlvalent^oa^th^iissu^tion't^atx^hey.^equirs ;$. }' further processing before entering the direct line of !tre4tamaV$|^e7.fr.e[Tlaei'indepeadently as ; discussed under (d) below. The sinter is worksd back to aatexlalTneeessary t:have,bean treated for its production. The material necessary is thsn further segregatedlby proration and assay appli cation into custom ore, calcine and by-products* The'calcine-equivalent.is thsnJddsd.to actual Cost per;.. ___ Iafli; -/ Sintering Plant $ ...2,5063 December: 31,. 1941**4 , 5*4916 "* Calcining Plait ;'4;i3l>J vi 5.0518* Sampling .- ,-1.4745 l Jr WM& Cost for 6 months ending June> 3300//\;TiiHS.^-rPlaat^Dot*ij3^t)aratio&'July 1940. ** Costs for 6 months ending Decamber* The purchase costts against ore in process are deter*ined','rom\data`arrived .`at'above in (a) Ore at Stock Pile, It was there noted that the eost of>l7*5534fperfpQUnd'of'lead!'waa.established for material put into proceos. This price is thsn ueedto value^thel'ore^iiLprocess, -using the... same percentage of metal paid for to metal content as.iXir1st^et#xmi^.djAn>t,treat^e^t. > 'Tts same*-*:. procedure is used on copper* Silver and gold,are .Valt^^^i^^t^^M^i^Wotively*^'All purchase contracts specify a deduction from metal !q^otr^tion^t^^^s^frei^t'JaHd|refining.^. This credit is applied directly to the costs of lead. ajjd-bb'ppep>tooitt<Stbii@laAt>-lnJ&irst-ovrt'method is applied for bin and pile inventories, bat no' s^chJlaat-ittj^fiyst^oovprooedw^isburned in following through the freight and refining credit frcai'receipt`.ii>iloospleted<treatment^'The mount involved is small and application of last-in, first-out method/on'tfcim'icredit would involve con siderable extra clerical work and detail of questionablles,.v-vaalnln*sTT^^pl>ber*m^aainino--JJUU,lppuarchasaesd the cosstt... is added to the lead oost* Treatment-' credits, are. also/;.a' pp* l*ica*b *le^^lead.,wheuA*tating,the o- re Jin- - ; ' ventory in terms of lead, eopper, diver and goldivalues, on?p46ev3a^fth%.?July ;L948- metallurgi-.^ cal report, "Value of Material on Hand." ... ______________ '1* -:*f '3? /. ' -w. ' 'r ;. wfe - >s-VJ. /V ,,fr/ `;23r- 4 LSAP PUNT ACCOUNTING PKCCEDURS FOR LBAD PIAW (Continued) (3) Inventory Valuations (Coirtinund) v'-- (d) By-Producta By-products are valued on a different basis than ore.and^elia7fu^ctes,^iJi"mentioned above,fc-i these products must be reprocessed before yielding their metal centerrt^jnIfjnj>^ri hntu<wyvsv.. spent up to the point at which they are located ia considered to have^bee^spenV.forjthafproduction.of- ' .'-V'; bullion, and any value remaining in the by-products is assumed to be'it 'tfit- imight, be-'sold'for,-' ' either to .an outside cocpany or to another plant for retreataent. Accordingly, -the-management has pro vided schedules for sale of products from one plant to another Dd it.-is^by these, schedules that valu ations have been placed on by-product inventories. ' One element of "worked back" principle is Involved in valuing by^roda^ts.\vInT'th^:tx)*nint 'above *' >r- concerning sinter and calcine it was noted that these inventories, are^worked'back^to> their-^components, - Vv - one of which was "by-products," These equivalent by-products.; are then^added to 'physical by-products on hand and a settlement, or settlements are figured on the total*. itfju^/31, 1948^: two. settlement*.' were made to show the value of by-products. A "Special Speiss" high In-copper content was valued separately, the balance of the by-products being calculated on a diffsrsnt.scbedule. Jbs .'Special : Speiss" was valued on a schedule predicated upon cost of recovering copper-content at the old converter plant. The schedule as used therefore included a high treatment charge (#15.00) per ton and'a high- . . penalty (75*) per unit on arsenic. No segregation of the by-product .values; ie. obtainable on'published metallurgical reports. The values are combined to arrive at a total'inventory. ;? Vi>r '-.j -Ti'j w-* \T-; - < y'v L'V i- ' ' r The eettlementa prepared for valuing by-products are used for obtaining metal content* metal* paid for, freight and refining allowances and treatment charges comparable to like information taken from ore settleownte to arrive at data on ore in stock pile and bins. .Since the by-product lnyentorlee contain considerable lead and copper a last-in, flrst-out method of pricing those inventoried* used. The prices as used were the approximate metal prices at the time an increment vat made to the inventory. At July 31, 1948, the pounds of lead and qopper in the inventory and thejeegregation according to price was aa follono: . Pounds Price \ Asu Wp. T:' ` founds- JKgKrto.'jR. 447,058 1,272,820 230,200 155,394 4.50* 6,50* 15.00* 17.50* 2,105,472 (a) Finished Inventories ; '51TfO*.VUV7M:-i > a 11 ' - *7,227.1^18,0087;|gL ?132,X20;:^.ig 20SSS8*:^ . X9*,I37 `trtg20:977 ~ X00.*08^at0r8Mr.ari5Wg - >. j ' l,05,808,;..S^.g - y- ' ; r-^lwv.v: Ss*y.' -.mi :/:iT -w* Inventory classifications above account for all valued aaterlal;ltb itbe,fcxeeptioa of' lead bullion. Finished lead bullion is valued by the New fork Office. All nceeeary,dat*^ertaining;to..lead-bullion au vu araou vuM*Vil tivvutvuvu .w v. 'vtw * R3UEIPT5 - LSAP PLANT C___o__n__t_r_a__c__t___P__r_o__v__i_s__i_o__n__s___-____G__e__n__e__r_a_l \Mk- .TOKB . ;j yi&' Blip:,,/: ffefiitti;!- : All saterlals purchased for treatment at the Lead Plant are purchased-mdi^^definite-^contract, terms or upon open schedule for shipments in smaller quantities. Inassuch as ;m*ltlng:o)^.X!are.purchased for their slag making qualities and absence of deleterious elements as well-rtalfor re'coTerebi*'metal.ccatent,tth*"coiv- tracts vary somewhat from those used for purchase of milling ore.A ' tT Ch the pages which follow informative data is given concerning piantFnc^c>j^re?^in>,''account.'ing^for.'receipts of ore and other treatment materials. As contract terms for the. most partlfollo^Jth* 'same :p4tterBjv a * > synopsis is here given concentrates, contract of contract terms being with B. K. Hamiltoc rd L. illustrative of those with Fo.tJhaecr,ocbosmonp5afnoiegs^.p; ugxhasai&ovf- le ad-oJrei-7^,r.nd lead' 11^ V, :> f-'Cif ISAD PLAMT RZT1IPTS - LEAD PLANT (Continued) Contract Provisions - General (Continued) Hi! Uotal Payoentu: Gold Silver Lead Copper Zinc If *02 ozs,, per ton or over,;pay for^Sl^ 'at^ S.C^pr_oaoc, . Pay for 95^, Miniana d*ductioa'**b^unc* Deduct 1*5 units from net aMay^sndjpay.forj per pound. - vV;N , . Bduct 15 pounds per ton and pwJXoribUne,i*tI*wiilork.'Bric i* 6.s5(. . iifWA-i?. IX 7i or 0Tr pay for 75jt ,at 25^ j prj.ce* \ Treatment t Labor Bullion Freight Insoluble Iron Lime Zinc Sulphur Arsenic and Antimony Duration Base charge $4,564 per dry ton on a^ settleMnt-leadj 'pXos. or. i ainus 104 per unit above or .belov*Q, : Base $8-*89* Add. or deduct 15{ '.to^base .treatment. charge for each 25< increase or decrease in-labor rate* : i-vv^ `' Base $19.61* Any increase or .decrease in this rate for the account of the shipper. Charge for all at 10$ per omit* v , ] Credit 8ll at 64 per nnit* . If 5 or over, credit at 64 per unit* ' Charge for all at 154 Pr unit;if paid for*-. .When no payment . made penalty will be 2S4 per unit for -excse* over.fjC* Zf> free* Charge for excess *t 254_p*r.uait: up'to.Yj of $2*50 per ton* `-Si . 2$ free. Charge for excess at 504 per unit* . - * ' it . 1* . Bff.ctiv. on rycsipto of Itareh l,.'l,'for .ilx'oaths.p*riod. Ores and Concentrates from Combined Metals Reduction Company . ,, ***8*? <* ' Receipts from the Combined Petals Reduction Company oonsiet of-crodaiore^fTcm various locations and.lead concentrates from Its plants at Bauer, Utah, and Pioche, Hevada.r factors'detensLiiing the quantity taken metallurgical receipts for the month are (1) availability of stiver affidavits end (2) .availability of data necessary to enable clerical ibrce to report plant profit* by 12th'.day. of *utiuf*s Date, of .weighing or date of dumping or sampling do not therefore govern the quantity of aaterialv;cec*iT*d^Pwcttc*;*i therefor*. scer . vhat at variance with that at the Montana plants of the AnAoarula-weighs .... lng governs receipt of custom zinc concentrates and Butte Hill- AEine^oee*``$<ReXsrflocY.toTsuxmaryiiof 'Combined":"v; Metals Reduction Company concentrates received shoved for example^'thatfiotej5b57^5060.''aand^5061niere'easpled on June 29th and 30tb, 1948, and weighed prior thereto, but were taken ii^^^toVXSAaireeaipta'.ioMr*' I**H. Floyd, Chief Clerk, stated that although the lots may have betn'weighed and'dusped'into bins/'edjustmant* . were made eliminating them from bin inventories and record of receipts If* sHverjiaifidavits,were not forth*-' coming, or J * - ' " * - -- ------ * J * .... . -* - - * ----- the month* gross, tare, and net weights and the moisture percentages are entered^ upoafo Jknown (as .fEUoord of Lead Ore Received,* This form also includes space fcr mine lot numbert`.smeltjarila Maher and.,car number*,.. The lot numbers, the net weights and the moisture percentages from thhee'-!wfiscordfdf aadJOre Received" .are :us*d in the preparation of a "sumnary* or "abstract* tabulating'all receipts' byTtheTmontb.^ Another/report eartitled "Report of Material Sampled" is prepared for the Sell Lake Offic**%^Jt^.lfllud* the.lot nusber, car number, naan of shipper, date weighed, date sampled, net.wet-weight of re#Boisture percentage?-dryijeigbt.: of ore and where duoped* From this report, together with sseay report**froa'>btowtbc -ehippe^tand the smelter the Salt Lake Ore Purchasing Department prepares the #ettlemente,:c/rh#.;Tpoe3^l0;5^ce..co^letcallts'suaaary; or tabulation by use of settlement assays in calculating the metitl-contfnt^^illMSSgiiil 'cre^curjoonccntrates^ received is then entered upon the metallurgical report *3tatemant 7of-'Custom.Material'Received -TooaleLead Plant," Cost of material is reported to Tooele by the Sals Lake-Office^wherejjotry ie made upon the general books. PNYC 00012256 ^f4j -I LEAD PLANT Crude ore and concentrates from both the Darwin and Shoshone mines of-.the .Anaconda CoFpsr'Mining ConpaaT^' are purchased under terns quoted in Letter of June L9, 1945, Ur* 1, B. Toung-to^Mr* B, 0*,;Sowerwin* Car* ol*` crude ore from the Darwin nine are conbined into composite lot* for assay and settlaoant. 1 Concentrates fro* both mines ere sampled and settled for by coq>osite car lots9 '. Accountin' procedure for receipt of these ores and concentrates is identical to that described for re ceipts of ore tvl concentrates received from the Conbined Metals Seduction Coopany, except that assay* of the International Smelting and Refining Conpany are accepted by the other companies, no comparison of assay* be ing made, Residue from American Zinc Company of Illinois 'f ; ' Residue from the American Zinc Company of Illinois is received under oonfcract dated April 9, 1947, ifcich provides for return of 80,t of xinc content in fora of deleaded sine fume at International, Utah, all other motal3 being outright purchases^ Inasmuch as treatment charges may outweigh purchase costs tb* American* Zinc Ccnpany is then billed for not treatment charges due* -; Accounting procedure for receipt of residue is identical to that described for receipt* of ore and con centrates from the Combined llotaln Reduction Company* The coi&ract provides that the zinc in fume will be returned currently-as the ainc residue is purchased und treated and adjustments in tty*. amount of returnable zinc will be made in the next calendar month* The duration of the contract is for a one year period freon April 9, 1947 to April 9, 1948 and extending beyond that period subject to a 90 day notice of cancellation. Such notice of cancellation was given to the American Zinc Coqaany by the International Smelting and Refining Coopery on .September-8, 1948, due to un profitability of treating its roaidue. Negotiation since that date has effected ;revislon of the additional treatment charge from $4.50 to $9,00 per dry ton? effective November 7, 1948," American Zinc Coopany to contin&e shipping Jto residue under the new rate, * TS'y.- , *. Residue from Anaconda Copper Klnlng Conoanr Reoidre from the Anaconda Copper Mining Company Is purchased under letter of-July 1, 1941* . This rosidut is a product of the Anaconda Arsenic Roasting Plant and is produced from high bismuth content'flu* dust re moved from the Main Cottrell Treaters* It is stored at stock pile and at periodic intervals shipped to Tooele where the Lead Plant recovers the bismuth in lead bullion in addition to other.metals,.. The lead bullion is - then shipped to the American Smelting and Refining Coopany at Ctamha, Nebraska on toll, both, the lead and the bismuth being returned to the International Smelting and Refining Coopany, -By agreement, the Anaconda Copper Mining Company shares equally with International in the proceeds of the returnable bismuth*'. Ninety percent of any bismuth in the bullion above >255& is returnable^ ^r~t|i. I ij.- Accounting procedure and records are the same as previously disouseedVconcezning; receipt of ore and con centrate from the Combined Metals Reduction Conpany* -.i V*; |rf&. ... ' Letter of July 1, 1941 under which terms of purchase were stated was from Mr* A. B. Toung,. Assistant Manager of the international Smelting and Refining Conpany to Mr* V. 5, Mitchell, Manager of Anaocnda Re duction Works, Reference may be made to letter for terms* No provisions wtr* made regarding splitting, limits and uqsiring, In letter of Mr, A, E* Higgin, then in charge of.Montana metallurgical, operations, to Mr. J. 0 Kitor. on July 15, 1939 the following splitting liait a were: suggwtedfn-'i- Gold Silver Lead Copper Bismuth lr-: .0CC66 ossss,.. oper toonn---* 5 ots. per ton'* .8*' .5* \ .15* ,v These splitting limits have since been used. In addition a 1#spllttlng^imit'was, put into effect on other metals per infonaation in letter of November 20, 1940, from Mr. Som larburtpn to Mr^Qeorge A.'Dean, former Chief Clerk at Anaconda Reduction Works quoting Mr, A, B,^Ioang instructing use of Upon caparison of assays at Anaconda the sample is sent to the Anaconda Copper Mining Cospay Washoe Sampler at Butte, Montana, There all unpires except bismuth are determined* As the Sampler does not have facilities for bismuth deteminotions, sample is sent to the Great Falls Reduction Department for umpire. v' . v- ------ -- PNYC 00012257 'i m 1BAD P1AOT Tor purpoo.s oC dUi-rainiiv5 Lsad Plant and Slag Troating Plait profit* ind.padaUy a aattlwiant 1* pr*- para.l to ai-rira at a valua of th* aatarlal tranofarrod froa ona plant to th* oth*r,' Th. aanagaaant ha* pra- parod a schailula datailing mota.1 pajnenta, raoovary paroentagaa and traataaotj'coata to ,ba oaad la oalealating the transfer coat.. <. ?* -f%l, - t*.-* X ' Lead fur.* from the Slag Treating plant is one of the interplant transferal* ^Actual'weigbt of the fuM -la obtained. The Sampling Department obtains series on the transfers from which monthly moisture percentage end asaoya are obtained. By application of monthly Engineering and Mining JournaIvquotation*.And the terms at out lined by the manogoraent a settlement is prepared. ' ?.rhen inventories of lead fume exist at the Load Plant the quantity of fume settled for is the amount treated. The inventory is carried at Slag Treating Plant and the deliver!#* to ;tbe"Lead'Plant art-adjusted by first and last of month inventories to arrive at Lead Plant treatment, for itoich; settlement isaade, This procedure simplifies inventory accounting* -if;1./ Th* Journal entry to record the tranofor is made by the Salt Lake Office and ia at folio*** Inter Plant Transfers - Lead Plant Inter Plant Transfers - Slag Plant When other inter plant transfers are made, the ataounts are oonbined and entered to the Journal in total. Reverb Flue Punt and Furnace Bottoms from Copper Plant The transfer of Copper Plant materials to the Lead Plant is made ia accordance *ith the principles des cribed above for transfer from the Slag Treating Plant. The Journal entry recorded by the Salt Lake Office is as follows*./ Inter Plant Transfers - Lead Plant Inter Plant Transfers - Copper Plant SHIPMENTS - LEAD PLANT Lead Bullion Shipped to American Smelting and Refining Company. Onaht. Nebraska -1 - .. , . w: * ` > ...* Load bullion is shipped to the American Smelting and Refining Company?*! Omaha, Nebraska,' under tenas of * contract dated Hay 27, 1946 for a ten year tens commencing June 15, 1946.andfaxpiriag-June 14, 1956* ` Contract ' provides for a shipment of bullion averaging between 98$ xd 99* lead, between ;-*4 end- *7 *., per ton gold, between 70 and 110 ounces per ton silver and between .2$ and .8$ biasutb*.vCoatnt..of ispurltiee is also specified* Twenty daye after receipt of the bullion at Omaha th* American SpalUng and (V^panjr ig obligated to return a quantity of refined lead equivalent to the entire lead cootent of bullioa as determined by wet assay, less a deduction of 8 pounds of lead per ton of bullion* 7be</re!nqd;lead mast'-not contain more than bismuth. Ninety-nine and one-half per cent (99*5$) of the gold content*is`pald for .at government price* : Silver and bismuth are returnable under the contract, the .silver at 100$ oflcoatenfcfand th* bismuth at 90$ of content over .25$ contained in bullion. Silver and bismuth are returnable 40vday af^'ar receipt of bullion at Omaha. ; '-r'C As compensation for refinirg the bullion the American Smelting and Befining^Coapsny receives 66 per ton. lead bullion with adjustments for changes in labor rate and sine price* > For-eaohr-lf per.bour,.increase or decrease in labor rate a charge or credit, respectively, of par.ton of-l#ad:.ballioails ,made.t A charge or . credit of 14 per ton of lead bullion is also made for each It that the average^sine prloe'shall: be. in excess of, or less than basic pries of 6,25# per pound* The contract also 'provides^pr*aa increast'(in base charge due to increase in various supply costs as determined by the U. S* DepartmeafcS.oflabor, Bureau of Labor ' Statistics* This provision, however, is effective only during the last five /years ^ of the-contract* For all silver returned the American Smelting and Refining Company charge-l*5f per.ucej\-and for. aUL hisouth re turned, 50# per pound* Charges are also mads of $1 per unit of antimony contained in the,bullion and $2*50 per unit of other impurities including copper, arsenic, tin and telloriuault Splitting Halta ,;for - det amdaation of settlement assays are provided by the contract, and provision 1* made for^usei.of uapires.-j^The abov* briefly outlines the main features of the contract to which reference may be tmade for more detail.-' - ...' - PNYC 00012258 l ead pl ant The Omaha plant samples the bullion by lots, and also makes a composite monthly sample^!'Lot' sampling is don to obtain silver and gold assays, and other assays are detemiiMd.Xraa-aoothljr'CGi^joaiteimamplMfr* The contract specifically provides that settlement shall be made oaths last day'of themonthfollowingde^ - livery of the bullion or as soon thereafter as all neoeseary information is available paratioojof.pro-r.,.. ductioQ data by the Tooele Office must therefore be mads on the best availableHiaforaatioa^at;timwfof^closdn^jp For example Nay 1946 final settlement was not available until 'Julyl943 production^waa|beingTcalcBlated"t ^^r; which tine adjustment was made for estimate of Uay 1949 delivery previousljused;to^iirriTs'ya.t^Kay 1M8 pro*:^'^- duction. No final data on June 1940 delivery was yet available. Julj(_ 1948 deliveries,'were-Vetimeted by use : * of Omaha weights and Tooele assays^ ; " :'"t `-a; " The Omaha plant reports the weight of bullion in each car received and,also,'reports .threetinm* monthly the cars lotted for settlement purposes. Four cars constitute a lot* Xach lotjweigbs-, approxinately 240:tis. Although the contract specifies lots of about 130 tons, the larger tonaage'Vaafbeaa *ituaUyi.agreed upon <fcie to capacity of kettles used in refining. Car numbers, Tooele lot &uabers,^.d&tes|rceiTed,^ClULha'weights1 and/ lot numbers, and estimated metal content appear on the three reports eent^fmM^^Laha flnMng';^ach - Each company sends its assays to respective offices of each company in Salt Lake City, Utah, dwr* assays are compared. If umpires are needed the Omaha plant is notified and a sample forwarded.from there to the designated umpire assayer. .. \ After all weights and assays are complete the Omaha Office coapilee a monthly statement.shoving the- weight of bullion, settlement assays, metal content, returnable content, gold paid fortand Monthly settl*- mont showing the charges and credits as per contract terms. This stataaeot-'is;;.checked by_.the Tooele Office and the data used as final delivery for computation of production statistics. Accounting for returnable metal is done by the New Tork Office of the International Smelting and Bo- fining Company. That office also makes settlement with the American SnaLting>;and. Refining Company for toll charges on refining. -J Blast Bag House Fume Shipped to Anaconds Copper Mining Co Tooele blast bag house fume is a cadmium bearing product of ths .blajrtjfdrnace^&paration?.. Duetto purities in the fume, treatment at thhee Electrolytic Zinc Plant at Great:Fallsj;lsfilialted^to'^one or twwoo cere per month. There the fume is introduLcuceedd to the zinc roasters in order" to^i*proTe^tbe'eoollaabbililttyy:f`af ttbl s ead~ ad uni and eliminate part of the arsenic and antimony ahead zinc and cadmium are partially extracted and the residue metals ment to the American Smelting and Refining Company at East A proposed schedule for purchase of bag house fume was This schedule was to be effective on and after November 1, 1945,.ao^wes ing and Refining Conpany, Its terms, still in use, are as follows iternatiomi Smelt Payment for metals: Lead - Silver - Hot jja;, loos l.Sjt x 903fr t H*-lorfc; ptico;XM* &.50f pArpoond^'- ; Jg-4! MM A All MAM O A . . I. . fV.l A.AA t WAAA Va U. . AIa I AA U* . W --J~* ** Gold Cadmium -- for eales in previous month, less.lS^'per. pouad^^ .. - .. Treatment Charge: $3.00 per dry ton, f.o.b.. Black Bagle, Montana*';' ,l25j( arsenic plus antimony free. Charge $2.00 ;peritonifc> I^^Jt'arsenl'o^^ plus antimony in excess of .125, Fraction pro rat;te' V-r'ihH * ............. . . .. ..... In letter of July 15, 1939 Ur. A. S biggin wrote to Ur* 'J.xO*:.XXtoa^^us^tlng that: an;averag* of Anaconda and Tooele assays be used in making settlements for..iaacopi3a^arsai^pa^ster..reeidu9.^>rinr.to that date Tooels assays had been used. Following up Ur. iggia,a,jeqpest'75b`( ` ~~ ~ Manager at Tooele, suggested that split assays also be used oni-ba^thouae^fUMi rreatVFalla^asaays^had' pre^> ' viouely been used. Ur, Caples, on December $, 1.939, euggested'V"plitting?.} Tof5 *# on' nadmiun.A 3inee ' pNYC 60012259 ^ v* i-A m SHIPMENTS'- LEAD PLANT (Continued* Blast Bag House Fume Shirred to Anaconda Copper Mining Co., that date Halts of *3,* on lead, ,3 ois., per ton on silver and established. The Anaconda Reduction Works As aa/ laboratory, has bean n>t<nnji,'^' > Cars of fume shipped to Sr?si Palls ar- weighed at Tooele although freight.'is pa^^SSe^^eaeit amde/#* on weights at Black Eagle, Montana, Upon receipt at Great Falla Reduction*Department .aMjBple*is,obt*ined for determination of moisture percentage and assays. A sample is. sent 'to'Tooele'jiith'.a^lebteiuofltrana- nittol giving Great Falls lot number, Tooele lot number, date received at`."plant .and eei^eijl, ger'~r>tfKaTJ s C neight, percent moisture and dry weight pounds* Settlements are'prepared^atlOreat F.allsItnoted"&, r*Joeipt of .sell.Inerts by the Tooelo Plant the metal content la calculated'4nd^s-propriy used ;in determin ing plant recoveries* Met allurgical report is prepared shoving details ofshipment e by lot numbers, and also coc*->osito data on ail settlements showing raotal content, metal.prices,: jtalap*id for,.fraight-.and treat ment costs, and total charges and credits in dollars, "The Salt "La*ke C"*ff"i*ceY*record.s.-.the sa.le .of.fume on the General Books, The charge is made to "International Smelting and Refining Cot,' Rem Tork^ and the credit to "Blast Bag House, iFun Sold to Great Falia,* 4L<r ^ ^1- Converter Copper to Raritan Copper Works ~ yp$m '* .-tm* '* " . * Spoiss from the Dross Reverberatory Plant is periodically treated at theyold Copper Converting Plant for recovery of copper. This copper 5s then shippod as bars to the Raritan Coppej.Works at Perth Amboy, Hew Jersey. A deduction of 5 pounds per ton of copper is mode from the copper content andjthe balance le returnable. . The silver end gold are returnable 1CQ7~ the copper is returnable 60 days after/sampling and the silver and gold ninety days after sampling. All charges for treatment, and all records pertaining to the return of smtale are handled by the New Tork Office, ( .. ' '.. Lot No, 7, carried as on hand at Tooele at June 30, 1943, was shippedFjuns, 28j 1948ii&t. 8,waa. shipped on July 1, 1948. Car containing lot No. 7 (NIC 133796} was damaged in transit^and.3 pieces'of .copper vers lot* The remaining content of the car was transferred to car fSR 3S12g-?andrarrived at Raritan,*:August.3, 1946. Lob No. 8 arrived at Britan on July 29, 1948 and was taken into^acoow^; as a July .1948 receipt, pre liminary returnable metal content being determined on the basis, ojf Tooela^seays,^but using-Rarltan.veighte* ; The loss of 5 pieces of copper was recorded as "Five (3). pcs Raritan'iCopper-Iforks * 'Arrival _ ' Notice. Personnel of the Tooele Office stated that the ,T<x>ele.Talley-Ra^l'roadihad{investigated records od * ; the number of pieces loaded. See under "General Remarks - Shijen^s>'from:L*ead?piant';-:ConvertervCopper Lost 4': in Transit to Raritan Copper Works." / :. Z '/ Due to the delay in> arrival of these cars at Raritan, lack of >finalKassa^fand low in'transit, decision As stated above all treatment charges are handled by the' NewiTorkyCtffies. Department at Salt Lake yielded the following information ` record? ^ase rate per ton May, 19(8, labor rate Base labor rate per hour June cost of fuel oil per Base cost per gallon Total Refining Charge M/ ' V -4 ' ' '.>* ;' -i : ' i :: 5. IRAQ fUNT Cr? Zach **'5y a "Daily Cur Report repar?d by the Operating Departsifc;ahwihg-;e*r nuifetrs of.'oxs'duoped at ntosfc piles, These cwr misters are then checked to the report "Record of, liad~OreReceived* >*ich gives. tV- was., t?re and net weights, zi U\? car and ite let nunber. Having thus secured toe lot Inuafeer the'car r v b* Jd^-.Ufied on the Abstract rf Ore Received which give* the Tull detail`of aetal content. The lote. which have been ot^red nrr thtr. pelted to a summary or disposition etateaunt wheire totale-are kept by shippers and by plier- to v-hich ore l.n- br*r. stored. The veriest storage* are then postedit. a, .'Record or Stock Pile , Ore" viilr.h t';?.tainoa oututary of tbs inventories, receipts and removals of 'etooicjpilevoree*^V*i ^ - * i r 'f Ji*. .. ' hen oir? a,-f rcaovsd iron stock piles, scale tickets are sent to-tos;.Vst*Uurgi6ir:Aeitti&iag* Depart ed r.t wlieie tabulations arc -side lr. a "Record of Deliveries Between Departasatsi^Upon re>val fron stock : piles the ore 1 copied ev i the l*bor*tery reports essays ty which the aetal'content) i* determined. The Sampling IH'nrtr.eni. also ohtniye the moisture percentages. With tb*iafoetioa)thn complete as to the weeiigghhtt,,awnvdr f--'-r-?---y- jl *th' e wm*eta"llurg*ica'l A* ccoun*t'ing ~Departmen`t tlh' en ca*lcu`la'te* th- e-'-neta-l content, which, along wiitthh net <'ry weights are posted to the "Record of Stock Pile Ore.* 'HaringLtbue entered.the receipts and renavals h now inventory is arrived ats ; .ij*'-.7 So bs -::c^ption8 to the aboi* practice occurs due to impossibility of balancing'oat stock pilssbyr . acrays* For *:-uuaple, a v-i2* ^ cleaned up,. Laboratory assays are reported in-the usual way for ^ deteminir.' r *i &1 content rf th cleanup Tide metal content as thue determined may vary considerably from t!.--: remains cn the "Rcc' rd of S:-rK pile Ore-" The assays in thoee instencee are disregarded and the V--'C-k invrr.tr-'-; 13 writr.en o<\f fic'.i.i.arjy at tines some metal might be written dow to nil toils other* Y*T-Jn in `:i-* inventory Laboratm;, rc?*ys must be disregarded in instances of this kind. When negligible q-j.nMlisr -'r ?> n-.ctal rerct-.'.a in 'v.-frithe laboratory assay on rmaovalj&ay [also be lowered to maintain c t 'S rcetal in the inventory ThJfu pr^'-edures are common in metaHurgical.'iaccounting practice.. The al- ismstive mi-tic d is to make rose vale et the average of *hat was renainieg^'in. ths'lnventory-in the month pricr, V**r>> the mnteriai is cf consistent nature this pr&ctice-i* very practicable, and in`some instances '-he st.c'k i ila.- ct. the lead plan', era handled in this maroer. However,, diefto-the complexity of the oree, th* pzTcod-!:- as outlined above -.?r:r,r, the moat satisfactory. V.*' : Cre. vyn-:;!.'? :% ec Reaj.dc^w '-rid Scran Cable on Hand at Sintering Plant an' d'.r$7*>('..&U.^W'-i*''-' 'tiast y-.fvSB?ilng ?lari. 4r,,;:VL 'i s '**' : -'v: '!"; V-t.> .5' vntheut exccpU'.:; receipts or ore and other materials are.'dunpedito storegeibinsL;; 0;. ^ action of bins io known m rilet<t?ving Bins" and is lettered coasedtiT<Uy^-from A.through S^These> " ins are rairoling mill bins Uc-iaUy the inventories are deternined.by;refrepce^to/''dijcp'.reporte':^/ shhooww.*i.nr.g`-* materials enntteerriinng' th* bbiirn>s3. If the material has noott..bbeeeei ci?ajledJtWrlotror lots entering the uia ire carried on. hand C ota is obtained from eettleasntsf . '.Ti'iPaiW'... Aft-or sampling th ore tr conveyed to lead plant bios by a'eyttek7.o^90cveyer beltel'^Thare are 2P. sJjitorlng plant charge b'jn3 >uch having a capacity of 120 tons-of:ore o*^240 tons of~ccoceotrete. ' Sf csuse the ore width enter? if'ese bins may be mixed with othei^oree i^ils.^ieceesary.tojQbt'eia the it***;., ver.vory tonnages by rca-am^i'-nt an1 a segregation later made from plant reports as '..to kindjOfyore stored. The clerks from the Vstallurgical Accounting Department take/msasureoenbel of.`the bins^at .8*"' /--k,,. on the first of cao; n-vnih Tne capacity of all bins has''pretiously:'ibe<en:{detrmined'^end'a.;r cord is. available giving tha voliimc in cubic feet for each -foof' depth^cr^coaTtrsely-.the/record `shows' " the voivies for oach foot empty depth. After having measured the.bins^'d,^o^einedj!the[volume^on hand, -,c; the voKv** is multiplied by the weight per cubio foot applicable .ta^^tjn^of.'1*materlalTstored^ ^These l wsighti Lave been determined by the Research Department* - Since, ores^Ti^y|^t.consiet.enoy^and[.weight,.the Dappling Department also from time to time obtains weights on'oree^froa^ver^ous^ehippaniv'-After t^e weight of ore in bins has been determined, reference is made tora'Sinterir^^laat^eilylBin^Beport which records the estimated tonnages on braid end the receipts to- each bin identifiedfas'to.'klnd. * A1 segregation of the tnrr.ag Is thus 'onwibla by \^t number and the metallurgioel. inventoriesyere'detenained by assays and payment date from eettlcmnts applicable. ', * h:; In *d<iition to the 22 sintering plant bins as above de*cribed;;are^f#j^S>ins,\i\e*ch`having'a capacity of 110 tons and which hold the various constituents to[*ths.biasJtKi?c**li4rgs^'.0n*M|)led material such es ecko and scrap iron are stored in these bins, as weU^ss!te^hier, limeroek^.cleanings, etc, .Inveot'.iry of these bins is determined by measureasnt as above deecribed^v*; i < , Air-- ; ... for storing lewd ^rc.- nre "Hiocallaneoue Bine* latterd*A],toiC'induive and "Old Bins" i-wiberr-' y t-'> U inclusive TJir.&t Lina are used for end arc .r.v.i.cured in manner dcaoribed above. IBAD PLANT INVBIT!RI3S - LEAD PLANT (Continued) Ore. Concentrated. Resides npd Scrcn Coble on Hand at Sintering Plant and*! Blast Fumsco Snaltinr Plant" (Continued) . v,,s4y^ Customarily used for sulphide concentrator ores are bin* IB to *10B'.inclusive^ BowevNvjsoaw 1'Md oros trr.ru stored in these bins during July 1548, Inventories. are.4#Ursdned:byJ?iVure^'t'/f&*lth..o..u..g..h..': during July 1S48 soco lots retained their identity and inventory was^determined--fromiactuai-'^ot.weights and assays, * .. .*''"'t'.yi'fcTi -'g ^ . In addition to the above bin3 some storages are made at'other places.: * For example, some Raritan residue was stored at the Oxide Vfarohouse and scrap cable at various; locations* i: Bo accurate reports ' are received concerning there inventories and reliance is placed by clerks on telephone calls con- ^ ctrning th, : . -H^-U T ATUr all inventory tonnages of these materials have been .aeeeJbledtiLndlideintltied 'by lot nubber, : the metal content is determined by settlement assay. For determining'plant;recoveries a segregation is made showing the plants to which the inventories belong. This segregatica'Sppears on the metallurgical report "Ore, etc*, on Hand" to which all inventories are posted* Sinter . .( * ; >"' ' , As noted in the Synopsis of Plant Operation the fine material treated atsths^lead plant, such as.coiv- cer.tratee, flue dust, etc., requires sintering to agglomerate it before inclttdihg'it inibe charge for the blast furnace. The material fuses slightly and forms a clinkez^like mass which<1* discharged at the end'of the machine and falls into railroad ctrs, either for ismediate treatment, or;for storage. The sinter <n- ventory at July 31, 1048 consisted of both car and bin inventories. At the'end of sach month ths Accounting Department takes a car inventory. Scale tickets are received by ths Uetallurgioal Accounting Department and a tabulation made showing weight of all material reported on the Tram inventory'or. "Switch List,* -The bin inventories are measured and tonnage determined by application of wight/per:.cubic< foot to/Maaured yolua*. bln inventories ere then combined for inventory purposes*vAiuiilf3ori.'5isture.'of .*7&3l'.la used to calculatei thhe dz7 weight. Ths l.Vooro.tcry makes assay deteiaiMtior'>^a>tenU4r^*ttIP^>vUui these assays are used to arrive at the metal content of the inventory. '- Calcine Speiss from the blast furnace operation, being high in arsenic is'roastadjfor.reaoval of that element* Speiss is stored at stock pile and periodically roasted in a McDougall''.roasting^furnace*,.-.'7he resulting cal-' cine, having substantial quantities of copper, silver and gold is ` storedjahVstook'^pile andjlsterireaioved,in Tooele Valley Railroad cars to lead plant bins for retreataent.' For.raiepliity^tbe 'stock:pile rand storage bln inventories are combined on metallurgical accounting records,^The..blnriirventoriee.[*re calculated in the. same manner as are ores; i.e., by measurement and application of weight;;p.*rJcubie}foot to .calculated volume. The weight of stock pile removals Is then adjusted by the bin inveatoriesfto.4d*terodne the lead plant treat-, sent. Providing there have been additions to the stock pile (none during: July* 1948) laboratory assays are v used to determine metal content. The metal of removals is detemined'ty...taking:an average.of the first of month inventory and the receipts. The treatment tonnage is used.as'.the- rsBOvairand- the remaining Inventory automatically includes all inventories, both stockpile and lead;' may be calculated, however, if desired* The methodin use is r Sintering Plant Cleanings, Btc. At July 31, 1943 the following inventories were grouped under this;Uadiugt.;(l)Jpreroast (sinter), (2) flue duat, (3) pond cleanings, (4) belt cleanings and (5) yard clonings- ' C "?r*V5>a''*r>ji -v " The object of the sintering plant operation is to obtain a product'iUit'abl'a]:in physical ^characteristics for treatment at the blast furnace, and to reduce the sulphur content fro^bpuw`12 in' the /.charge .to about 1.2% in the sinter. On the first sinter, or preroast, the cakes faJLi-'onto^paajsonTeyor to,be delivered to the preroast crushing plant. On the second sinter the cakes fall onto afgrixa.lyy%the'^coaraerainter being by passed to railroad cars for delivery to the blast furnace charge binJAand^e^ines ,fallirig-octo aipan con- ` vsyor for retreatment on the preroast charge. The preroast sintering*is!ca1^^>\jb om.thapflrst^machins; i.e*, those serviced by the pan conveyor. When more machines are require4^tn3|diitrilKustr^b .discharged into railway cars and taken to the preroast storage bins without crushii^^Th'i&iater^froa^betfirst' 6 machines is discharged onto the horizontal pan conveyor, then throug^alcr^hjj^|plantj,aad^tolpreroast storage bins. They aro located at the original charge floor and their hoppereLfeVd^ontOfthe;original/gathering belt. The bins are measured on the first of each month to obtain the cubio^fest^oX^qi^&ts^l^Zhis'-WlaAS it then multiplied by an average weight of sinter per cubic foot to arrive'-,atttot^^to^^e.r'v The^^boxn^^T wakes assay determinations on an Inventory sample. The Uetallurgical Accoxintifigyp^p^tmsnt^c^culatjes'rtbe metal content of the inventory from the assays as reported. . ' \ iM; ifiiw pKvc w"'226* f ' ;; iv- . .. . . . ..iv,___ ie . ... IHVENTCBnS - LEAD PLAHT (Contimiod) LEAP PLANT M SInterim' Plant Clmlnj;3. etc. (Continued) ' wSPf ^.......... The flue system inventory at July 31, 1948, consisted of duet In tlia^ollgidngrioe^ionsl{4)^dr7 flus vt-j" or "Header" flue, lb) moisture chafer, (c) main flue, (d) treatar intaica,'l(elJtack^be^'(f)''etockpila aad (g) cars and bins. The flues leadir^ from each sintering machine r.a 30:lnchasila,diameter, and aada of sheet steel. The flues of each pair of adjoining machines marge before-antranoa.toithe-main flua.lsytan.t The first section of the main flue system is a brick structure, 10* x 14, x.l41,.-lTha,.coarsestrmatfirial, the dust'V mechanically carried over, is mostly deposited in this section.of the.flue.<This flue d'cleaned about once a year. On the average 1J tons of dust per day is deposited _in this '.header.* eectipn;I'lIt..aa*y.'Bi'll apprcoci-. mate that of the charge. The gases pass from the brick header flat .into eibrlci^mDis^ure uihamber^^l* x 87\x ` UO1. Because of the increased area and a nutcher of eater eprays ,the.;gases, artihere^conjiderabljrvcooled. . .In this section finer dust settles than in the header section. The eater aids inlthis .diet settling. About.1$ tons of dust and fume per da7 are precipitated in the moisture chamber, '.vlhe eater, is run. into a^pond where separation of the eater and solids takes place by evaporation (see below),..'The moisture chaobar.-.delivere into a third section of the flue (main flue) &ich is made of brlek and is 101*3^ 14*.x 260*, ' Thls-flue section delivers directly into 3 treater intakes, each ?' x 8' x 60', .The 3 .treater `intakes are equipped.with, auto matic dampers which control the distribution of the gases into the 3 treater\Sectioni,} The'.treater. proper consists of 3 parallel horizontal flues or units. Each unit is divided into'4* sections. - The gas stream - flows through the sections and the dust is electrically precipitated. The'precipitated dust:is.Tremoved by beating a yoke that supports the collecting grids with an air hammer.' This isidcne' automatically once every two hours. The dust falls into tar lined wooden hoppers located under the .units. A scree conveyor runs along the bottom of the hoppers to remove the dust to small cars. The small oars .are band trammed to larger railroad cars, the dust in Hiich is unloaded at the sizfcering plant charge .bins..for retreatmant. A fan blows the gas from the treater sections into a 130 foot brick stack. Occasionally some flue dust'ls stored at stock pile and in storage bins. Determination of tonnages is made by .the JUsearch Department .and.periodic changes made as required. Fixed assays, determined by prior sampling, are-used/to^.determine metal content. For further moment on flue duet Inventories see under "Content* - Inventories*>;Lead Plant - Sintering Plant Flue Dust,* - ` 'T ... As noted above, the water from the moisture chamber carries the'dist^and fumsj?out'..with lt to'a settling pond. The pond is divided into two sections, one being filled while the other^/drying and waiting:to be cleared. Inventory in ponds is by visual observation. At periodic,internalsaach.'pond,i*.:cleansdt*nd re- 'moved to stock pile, actual weights being obtained from cootractor^juJdj^^ali^ul^Aceuratelw^i^Aa'jtfe also obtained on removals, and monthly moisture percentages and' assays :Me^tt*at.adi^nalnt^di7,;i:weigbt and.-^ometal content. Ur, Floyd reports that difficulties are dCountered^in^gettingfaccure^vinventorlesTat pile. .*'' due to mixing of pond cleanings with those from other department sJ'V AdJutmeota^are*"m2de^when'pile'has .been cleaned up and new inventories started. This occurred during; *'J" u* ly.1948. jThsjold pile, was oleaned^up; and?-' removals after July 15, 1943, made from the new stock pile. Belt and yard cleanings are sacpled and moithly moisture-and auay^deterainstlons''are. .mada^for.-arxlvLQg-- at dry weight and metal content. The cleanings may be in tins, in'TootlerVaU^,railroad 'carsT'yard or. stock piles. . The bins are measured and weight calculated according'.to mrtht^p^rto9f^^escrib*4f,fora;ore*,'^ Actual- '' weight of railroad cars is obtained, When a dross layer is formed on the drosslng kettle it Is skimmed offithe^top'.of the 'lead bath by means of a sieve ladle operated by a crane. The ladle is set over *a; empty: dross kettle send,the .Witaatlead. is .,-|V allowed to drain out. When most of the lead has drained out,<'the';iica.e.^{d^8^ijC>reoipved^7;;the^crane to the Dross Reverberatory Furnace. Uetbod of droes removal is .tiadlar^en ^thj^he^60'i'an'd712Q.,t'^'^lrossing kettles. At July 31, 1943, the dross inventories consisted of ;that-`in.Too'ele^Talley;ailroad7cars'faad aoae _;^ _ in storage. Actual weights were obtained on the railroad cart ;andjthesstorege<p^le. was.eatiaate.d/by.,visual observation. Assay determinations are made from a sample of dxoso on*hand.<HTbe;;aa*aysi'*re applied to .ther, total dross inventory to obtain the metal content. The dross'is assumedito^be^iry,' no moisture percentage being need, . `-j. :^'*^4 -v ' Blast Uatte (Dross Reverberatory Matte) ... t ------------ ------------------------ - ! 1- This matte is a product of the Dross Reverberatory Plant,, where;!matisJrip^iaa.'and molten'lead-are pro duced from dross. The matte is sold to the American Smelting.and BefiningXCdepjDy,''. the speise is.l'periodically treated at the Copper Plant' converters and the lead is. returned .to thelDiossingJPlant.4 The inventory at July 31, 1948, consisted of matte in (l) Tooele Valley Railroad oars, U)`torage-;bia*;and..(3) in. tran*ifc to the American Smelting and Refining Cotpany* at Garfield, Utah, The bin inventory.*iSidetendn*d byrmeasurement and calculation. Car weights are actual. Shipments to Garfield are considered^,finalionly.whan^settleaent.is com pleted. Two cars were shipped during July, 1948, one on the 22od andyoae^oxi^he^Slst^.Keither^had been settled for at time metallurgical reports wers in preparation and^werejvcarriedgJi dhe/iaTpton?!.^The..metal . content of the bin and car inventories is determined by assays on*a^monthl^eample^vKa.chrlcW'Jshipped to Garfield is essayed, metal content for inventory purposes being dt#imin^i|oii47u<'"'," Final settlement assays however, are used on final metallurgical d*ta*!$jpff " % PNYC 00012263 iTJC J'Hf-SsSs >V. si- v t;; 4i -VC* - LSAD PLANT lUVBMTCRIg - LEAD PLANT (Continued) Lead Residue "Spoias" '* ;/r' *!; - Speiss may' be from the bleat furnace or the dross reverberatory furnace,;>*The former*is,usually stored ' and periodically treated in the old McDcugall roasting furnace for remoTiicof^areeaicJ the^reeultlog calcine.... Jtv being returned to the Sintering Plant. The speiss from the drossTererberfJUj^fUwaw^/^gl^iay.coppai*^4'-- content, and is stored in stock piles for future treatment at-ithe Copptr^C<"*""L'`-,,4it*, :------- --1 " production of copper. Separate stock piles are mintained for eacb'elass^ the dross reverberatory speisj. was also segregated into two separafce.*pile#*' consisted of speiss in: (1) stock piles, (2) Tooele Talley Railroad care! and-(3)'cooverter-sladleaV 'Additioee to, or removals from the stock pile ere by actual weight of cars, Inventoryiin railroad oars is taken by . the Accounting Department and scale weights obtained. Inventory in converter-ladles is. determined by /visual. estimate. At July 31, 1943 there were 42 tone in ladles, Monthly samples. are'ltaken from which .moisture', percentage and assays are determined for arriving at dry height and metal,contentjof:the .inventory, ' For-' further conuuent on this inventory see under "General Coszaents - Inventory.';Changes to Arr*Ye,/at3easonable';^ Recoveries," W* Blast Clesnlngs .-' * **. ' 'v This inventory consisted of furnace barrings and cleaning from around the furnace. Both are loaded into cars and returned to lead plant bins for retreatment. Actual weights, are obtained on fully loaded cars, although the cleanings are accumulated during the month end are estimated visually if .cars are only - partially full. Bin inventories are measured anl weight calculated. Monthly .Inventory staples are taken upon which assays are determined to arrive at metal content, , - V'. V;*`' Foreheorth Material ` ;.`'v ? ` i. Slag and speiss are tapped from the blast furnace into large moveable forehearths. Separate layers are formed in the forehearths, the slag being tapped for treatment at the Slag treatment Plant end the apeiee.be- ing tapped for further treatment at McDougall roasting furnace for removal of^areenio#.^After.the tapping is complete the cold shell remaining is removed to the Copper Converter, buHdiftg&wbez'e-It 'is:broken.'up by mectaaoical means. It is returned for retreatment st the Sintering Plant^or-he*Btaft.Furnace<The inrei^ory:et^ July 31, 1943, consisted of forehearth material at the SiDteringiPlagtfbja^K^atrjthe^CoBverter. building, ^ The inventory in the bins is determined by measurement and calcuIatlon.^^^nTentary.at;the Converter ' building consisted of 30 tons on the floor, 10 tons in ladles aad30! tonsl'ofbattona" or high lead content material. These tonnages were determined by estimation as cost of weighlsg:wonld be prohibitive. A sample, le taken monthly from which assays are determined to arrive at metal. ooatsnt^^V^'e Blest Flue Dust * m`X ; 'V-i A brief description of the blast furnace flue system is aa. follow*t^Tba gaa offtake dJ looated'ln the back of the furnace ^ust below the charge floor. The offtake r^'dowziwar<^.,3Q;fset'JLnto';a'large dust' collect* lag tank 20 feet in diameter and 18 feet high. The siae of'.the.'tack'allaweithefgases; to .elow: down end drop * part of their dust burden. Flue gas passes from the top of the tank'istOyfa^shset iron'balloon'flue :that' ;; . * = leads to the baghouse. The dust collecting tank is equipped witbf a^bopper^b^ttca that^diech&rgea onto *T>-+. :i. conveyor belt discharging into a railroad car and returning to. thej aintw|cij nit, $"T"b* ;sheet'iiron balloon *' flue leading to the baghouse has a hopper bottom to feciiitate*cl'eanlngfihii' [ieTdone' fabout"jfcwioe' 'y*r^,;.t>:: When cleaning, the hoppers are opened a--nd, the d__u_st__i_s__a_llo.w.e_d_-_t_o__fa_H_*`oui?0! heffrw4,STbo*duft 'is \'U\**N&* shoveled up into dump trucks and returned to the sintering plant^circuitt# Tonnage In the flue is usually arrived at : by estimate.; Cleaning.of^th.f,eflt.tie..i4.e.d-4*on..e-.-.a.b,oaV t*w4ice a year and approximately 100 tons of dust are removed each time, ..IKiririg Julyjtl^a/the^fluV^a^oni down to be replaced and all dust wae hauled by truck to stock pile. !^.Consenrative;/fixedT.assays^ were ufed^for flue inventory, Coaa>arlson of fixed assays with July 1948 shipmente|to^Sinte'rlng?plantn'ia.:;aa:follow -Fixed July 1948 Lead so.ao* ai.8# Copper ' M 0.6# 1.2# - ; surer, I:.1r60..0668.;fo/'l Since aseay on feed varies and will produce dust of varyiag^grade^^e^wae^vativs 'aesaye, as used eeem warranted, especially since tonnage ie not large# iV IV. '` . A ' : ;}*. . f? :.sr- pNYC 0001M6A 5 il.ll V ; j4ll y <' k mms-t* LXAD PLANT INVENT CRIES - LEAD PLANT (Continued) Blast Baa House Force "tg'Bi S , - -**' ?-jj .1, > ...... . The baghouse ie a brick building containing 144 *001*0 bags that are 3Cl*fjMt,",long,;and. 18 -inches In,/ diameter. By changing pressures in the baghouse the baga are wllepaed/ilooeeningfalls. rV" into the pita. Once a week the bags are shaken by hand iron the inside. .ISde^jsbaking^reao'y** .the'^dust that could not be removed otherwise. The diet in the pit is burned once'a week^/J,This is done^to'clinker the duet end thus make it easier to handle. Metallic cadmium, metallic rsaaic,eleaeatai sulphur and email portions of coke dust furnish the fuel value for this burning... The pits fcaresflat-bottoaed,-and the dust clinkers are removed by laborers and returned to the sintering plantIcircuit'*! The bag house collects about 4$ tons of dust per day on a normal run. When the cadmium in the*flue circuit.builds up to,,- a high enough percentage to warrant its recovery, the dust ie sold to the-Great^Falle Electrolytic Zinc . ' Plant. A steel downtake flue connects the top of the begbouee to the bottom''of&the -stack. *LA. 200 .foot brick stack is used for the disposal of the baghouse gases. Three inventory classifications were'used on .-- metallurgical inventory for July 31, 1948. They were (1) intake, (2) pits and (3) .bins and cars. -'A fixed tonnage (SO) is used on the intake inventory. The pit inventory ie reported monthly by.the. super- ; intendent who estimates the inventory by observation. The car inventory is ^byiactual weight >sad the bln inventories are by measurement and calculation, using a weight of about 108*pouads per cubic foot.?Xbe * tonnages on the three classifications are combined and a monthly laboratory.-'analysis on baghouse dust ' shipped to Sintering Plant is used to arrive at metal content. Moisture percentage for calculation*! . ' dry weight is also obtained from this sample. Converter Flue Dust As previously mentioned, dross reverberatory matte is treated in the old copper. converters for re-* covery of copper oontcnt. When the converter ie blowing, its spout is turned into a hood. The hood connects to a flue that carries the fume to a brick moisture chamber containing'-.water sprays, which pre cipitate the dust. The dust from the flue is removed by means of hoppers on -its bottom,. and the dost from the moisture chamber is removed manually when the accumulation is sufficient. ATbesevtwo items.maks . up the Converter flue dust inventory. vp Converter Cleanings v " V.. '.V-'-' 7! V -" `. At July 31, 1948 the inverfcory consisted of cleanings (1) in stock pile, {(2) {la storage-bias, and cars, (3) in transit to the American Smelting and Refining Cospany aid (4) on convertex;;floor.. ;{The^firet,two. classes of Inventory are determined by bln measurement and calculation'andyby&eportfof/car^weight'jt-aad inventories. One car had been reloaded for shipment to the American SmItingfandjRefIning- Company *at Oar- field, Utah, but settlement had not been received and car was retained>in:'inventory- The 'Superintendent . estimates the floor inventory. Metal content of all inventories is-arrivedfat'by{laboratory assay. ..-With the exception of cleanings sold the inventory ie returned to the blast furnace, for retreatnent./,';^' f.* '' . Converter Bag Bouse Fume . , iyj- . 'A ?''::r. r .i Pollening the converter moisture chanber is the baghouse, constructed-,ofibrick and. having^8:pits with'- 960 woolen bags* The pit bottoms are *7* shaped. A worm operates'in' tbe^bottom'of -'.thei. "7* and "removes^ the dust to railroad cars. The dust or "fume" is returned to the alj3tering'rplimt.Tcircuit.t The ..baghouse gases, upon leaving the baghouse, pass off to the atmosphere by means of a brickrstack*^*-. ` v l&f . - * . The inventory at July 31, 1948, consisted of Aims at stock pile, sad Jj i pits.k^-Ihe stock pile was accumulated in a prior month, there being no storages or removals during July 1948.;* Tbe pit inventory was arrived at from data supplied by the Chief Testing Engineer. Oa April: 5,":lS48il'"|fterfc.a period of converter blowing he measured the depth of fume in the pits, calculated the volume ,obtaiid,V.w.ei^t;per cubic foot - (29 pounds) and a laboratory analysis of the sample. From the dstaias^thus^obtained tbe^inyentoryzwas.cal- . culated. Since that time the converter operated during period between?Juae^2ltand ^Jone1: 30;i948*hfThe' test ing Engineer then obtained new measurements to arrive at tb* volume of'fume'dfpc>altsd during tbe*last run, - together with a weight per cubic foot and assaye on the new deposit. ,tbe weightier cubic foot was 20.5 pounds. The calculated metal content of the new deposit was then added to-rtbijprlor inventory^to arrive at the total July 31, 1946, inventory as uspd. -v''*- '"l- Lead Bullion - - * -V TCt ' ic Lead bullion inventories usually consist of lead (1) in blast fursace^CwaUL*)>'(2)/iA-kettle- at drossing plant, (3) in dross reverberatory furnace, (4) metallic l*ad.:.frpmjjby-j> ducts', at. Copper' Converter building and (S) in transit to Omaha, Nebraska. . v'-T.LijHg During operation of the blast furnace there is usually 13 Wm. 'or molten'dead^'which.ie'fcarried as a - LEAD PUNT INV5NTDKIB5 - LEAD PLANT (Continued) Lead Bullion (Continued) There fire four droeoing kettles having a capacity of 60 tons eaah* By visoal^obeervatioa .am ertdmaie is made of the tonnage of molten lead in each* There are also t*o' larger, kettles-baring capacltlm.of .120.* * tons each. The tonnage in these kettles is also estimated, visually..* UsuaIly~cu->gMnerl.wllh,,thakettle.An-> j.y- vcntories are the weights of any lead "buttons" and cleanup on the floor* ^Each yfbuitoa^or-piecetof;bullion\tv weighs an estimated four tons. Cleanup consists of r^rji^VT-T <J^iw, Hi * The dross reverberatory furnace contains a constant $0 tons when in operationpjTitfJuly51, -*1946, : the -.v.. furnace was net in operation and had been cleened out, having no .inventory Lead in the converter building is from lead plant by-products and la oot^ intended for'treatment at that; plant. This inventory at July 21, 1946, consisted of cleanings on the floor*' .Estimate of tonnage was made visually. *; ''\ \ w *":>> ' ' -!.- Lead in transit to Omaha, Nebraska consists of finished bullion billed fromjiTooale but not'.taken, into ,. receipts at Ctaaha. The Omaha plant sends 3 reports during each month.ahowing'the^eeight 'af bttHion'rectived, the Tooele lot numbers, tbs Qaaha lot numbers, date received and estimated metaltcontent* Upon'receipt of the final report from Omaha sufficient information is available to determine-the'invfntory in transit* Any care shipped from Tooele, but not taken into receipts by the <** * plant are carried as.in transit* ' Lead, silver and gold content are carried on the inventories described* Assays on silver and gold are applied to tonnages, lot numbers for which are available such as lota in transit,.or.*buttonsB about to be shipped. Lead assay on monthly composite sample is used in determining lead.content icf .all bullion inven tories. Converter Copper Converter copper inventories at July 31, 1948, consisted of two classifications, .(1) at Tooele and (2) in transit to Raritan Copper Works, The total inventory at Tooele consistedLVof. 68 molds of-which 3were Lead Plant inventory, the balance being carried by the Copper Plant.'^On.ths'basis'.ofiactaal-.weightV the 68 molds have been carried at 856 pounds each* Metal contaenntt.,wra--s ,--ai^'^--^^^^~^se^^^^^l^l^t>onttory , assays on copper from which the molds sere'made* Any shipments of copper from the Tooele Plant which have not been,received.at;Raritan Copper Works are; classified as in transit inventory* The Raritan Copper Works forwards.ia;1{eta^Stteaent*;fortlots.i&-^'. eluded in each months business* Any lots Dot included are for Tooele account.Jt^i^^'i'^ A# ri mmkr[-4^1 I *3; -'.^v ''U i''wM.rtv . is. . . :pNYC 000A2266 rjstrf "Iti 4 ./ ..V-* sue TREATMENT PLANT ACCOUNTING PROCEDURE FDR SLAG TREATUB?# PLANT For purpose of determining the profitability of the Slag Treatment Plant accountingscords;are kfptsto:.,.`-'*" show cooplcte cost of material, sales and inventory valuations on the * (1) Coat of material. The only material received at the Slag Treatment Plant dgring,: JiUy/^lMS^eae^elag,"^;*^''.; Cold slag is reclaimed from old dump, and either goee directly to the Slag TreataactvPlant or to. the^ blast -Tv. furnace of the Lead Plant where it becomes oo-eixed with the materials treated sod-ultimatelyJis delivered a-- ;'*-:*''' long with current slag to the Slag Treatment Plant. ' The latter slag is usiuly.:teraadV?iK>ltsa?ijad:.is the major slog introduced to the Slag Treatment Plant. To determine plant profit It.is necessary, to arrive."at a-cost of this material to the plant. Inasmuch as the purchase cost becomes a revenue or sale,of the lead. Plant1.and also determines profit of that plant, some endeavor is made by the management to.establisb^aitransfer cost->which sill be reasonable for both plants. Overall profits are in no say affected by such. a.transfer. Metal content of , cold slag is determined by actual assay. Cold slag to ths Lead Plant blast fhraac.^is.lalao''saBQpledcand :assayed.N From the total mclteu slag delivered to the Slag Treatment Plant (tonnage determined'.ty. iron: contents and assay): the tonnage of cold slag say be deducted to arrive at the molten slag produced froa'.cuyrent .treatment (2) Sales. Sales of product art made on definite contract tens. During July^lMS two stajor products rre sold to outside corporations, leaded zinc oxide was sold through various paint companies to dioa shipawnte were made on consignment. Reports are received from these companies monthly giving; status of- sales end in- ventoriee. The other product sold was deleaded sine fuse. Sals of this product sas^aade.outright to International Minerals and Metals Corporation, Bartlesville, Oklahoma. Contract specifies definite.terms of sals. Deleaded' zinc fume was also shipped to the American Zinc Coopany of Illinois under contract providing.return of d0 of the zinc content of residue from that company treated in the Lead Plant. In addition.to;salee to outside companies some leaded zinc oxide (lead fume) is returned to the Lead Plant for further recovery.of its lead.:' Sale is made on basis of schedule prepared by the management^ accounting principle being in conformance with that outlined a- bove for transfers between plants. Direct sales to outsiders are credited directly to sales accounts. Con signment stocks are held in inventory and are credited to sales only when remittance is received from consignees. Freight on consignment stocks are charged to "Prepaid Freight on Leaded Zinc Oxide on .Consignment*:and upon sale tide account is credited and charge made to "Freight on Leaded Zinc Oxide.". .Metal content of all\Ulss;iis determin.eeda boy asecttuuaaxl lxaabooraawtoorry assay., Hnoowwever, ailil connvtaaimnedu mmeevtaaxl ixss noovt ppaaiQid--:i:oforr.V';r*Tor .aezxaas^pixlse^,..>!tnheev'Juniyy 1948 sale*s of deleaded tine fume to *thve- -In--t-e--r--n--a-t-i-o--n--a--l--M---i-n--e-r-a*l-s---a--nJd Metals,Corp1--o--r-ak tion?ccnt*inedt.5?/"7'8*^-p-o--u-n-Jd-s lead not paid for. This lead is a "sales loss." Couplets record of such sales ^losses.;are keptvby.i the Kstal- lurgical. Accounting Department. ?' /5 ' (3) Inventory Valuations. There are no treatment inventories carried at the Slag Treatment Plant.. Cold slag is removed from the dup upon which no value is carried on the Western books^Consequsatly all. slag de livered from the duap is adjusted by any known ear or bin inventories to :arrlve \at Ionly:.tihe quantity'treated,' and none remains as plant inventory. As the tonnage of-molten slag is arriTed:at^^Tcalqulstion;noi^i0restorlss sre carried. The method of accounting in use segregates tbs remaining inventor^:lnto'!,two^elaVses]^by^prodncts' and finished materials. The by-products consist of various flue, chamber and.^U-tubetiirrentoriesland tbe finished.-V materials consist of products In bins or cars ready for sale or in transit rto'coMunara'.^.Mo^coefc/of purchase '' (slag cost) is carried against the by-product inventories. Hcstever,-fuming plant*cost|;is; assessed to by-products on basis of cost per ton produced. The finished saterials, consisting .of. leaded slnc;oxlde sad deleaded zinc. : fume are not based on cost. Ths orthodox method would be to value tbese'prodacts .atscost,; ormarkst ^lichever is the lower. Since these smterlals are really by-products of lead ores,.'no aceu?atv*0*t basis, is, available. The lead ores were purchased for their lead content and unless arbitrary!!!locstlons^^lead coft*^wer*:nad,'DO known ccet of the slag treating plant products becomes available. . Besortthaa^^tbsrefoiralibeen^madai.to market ooet. Since a good market for deleaded zinc fUe exists the inventories of' that'prcduct"aretfvalaed:at-asrket. price. The inventory of July 31, 1948 was valued on basis of contract with the lntemstiozialTMinerals and Metals : Corporation. Loaded zinc oxide has not the same ready market as the deleaded sine^foM. Therefor* prudence required s more conservative method of pricing, since the price on smsll .sales to palnt'eompanleS:migbt oot be a criterion for establishing Inventory values. Since the major portion of this material is;returned,to .the lead Plant under schedule, the inventory is priced according to terms of that schedule. .> RSC2IFTS - SUG TREATING PLANT Cold Du s t Slag - Reclaimed After construction of the Slag Treating Plant a certain percentage of'Cbld.;alag could be-treated in addition to the molten slag from the Blast Furnace Plant. The slag ;is;loadsd-,at|tha.:dusp ^ln'full railroad cars and weigh'd on track scales. The weights are recorded by toeMetallnrgi^.aT^icjpuiitij^Department. How ever, the plant is assessed for only the actual tonnage treated. It*ls''tharefcre?necesaaryfto-prpare a statement showing the actual weight treated by adjusting the quant1^!loaded^ifthai-pils^bylinventories at first and last of month in storage bins. The bins are measured-at,;tbwrfixsvpfVeecMmonth#i.The Re search Department has established a weight of slag per cubic foot.:~-Fro^^l#stsbo<dLnglthe*'tatal'fcublo feet in each bin at varying empty depths ths tonnage of inventory is `dstsrmlnad^To~v theiinreatory -" ' monthly, assays are applied to arrive at metal content. The same- assays'sreqapplied,to..the .tonnage, of slag loaded to arrive at its metal content. Having thus detenained`the/mstalJcofltent Qf`both`the slag. loaded annd t'he inventory, the quan.t.i.t.y....t..r.e...a..t.e...d....i..s.....t.h..u...s....d...s..t.e...r..a..i.n...s..d....s Fort*rsasfe' r*Fcoet:thimj*aaterlal *' refer to idiscussion on "Receipts - Hot Slag." " " ^^ fVK5isR:'<T"1 PNYC 00012267 s>- V-irO'. ^t b^SV; SLAG TREATING PLANT R5CT3PT5 - SLAG TREATING PLANT (Contimod) Hot Slag In addition to receipt of cold dump slag, hot or aoltea alag .ia.racaived^from the^laat.JJTUrnaca. '-Thia;i. molten slag is from two sources, (1) from treatment of current material.adU)^ro treatment of cold alag';'"-- j from dump, introduced into blast furnace for melting prior to treatment at'Slagtlreating!,Plant*.'.Beta of . molten slag were at one tiro? weighed, but this has been discontinued# . it present .the quantity' of slag is determined by deduction* Iron and manganese content it used as a basis for/thia-. deduction* i;Fron.tbe known iron and manganese content of material treated is deducted the iron ancLauganeso.conteat of..'materials pro duced, the difference being assumed as iron and manganese content of slmg.V By>means of. iron and manganese assays determined on a monthly sacple, the dry tons of slog produced im arrivediat. ' r".v.. -ViSTSSk' All molten slag is sold by the Lead Plant to the Slag Treating Plant* iSi^daflnite^schedule is;outlinedv'> by the Management for calculating this cost. Among other provisions the lead Plant receives ^a'$5 credit per ton of cold slag melted. The schedule is calculated in such a manner as to'allow each plant -a;fair profit* sitraamTS - s l a g t r e at in g p l a n t w Deleadod Zinc Fuae to International Minerals and Metals Corporation. Bartlesville. Oklahoma reloaded zinc fume is one of the products of the deleading kiln* It is sold under contract to the International Minerals and Metals Corporation* The contract is for three years beginning February 15, - 1947. The contract contains two schedules, one applicable when .the price, of sine is 82S{. per pound or less, and one applicable vhen the price is over 3*254 per pound (Schedule IX.)* Under the latter schedule 95$ of the zinc content is paid for at 100$ of the East St. Louis quotation*- Tha base treatment charge it $39*00 per dry ton when the zinc price is 10*54 per pound* For each 14 incr*aee"in the sino price over 10.54 per pound there is added $3.00 per ton to the base price* For each'14 decrease in the price of zinc below IO.54 there is deducted #4*00 per ton from the base price. Contract was written when the base labor rate was $9*672 per day* For each 104 increase or decrease in that rate there .is added to, or deducted from the base charge 234 per ton* Splitting limit on zinc is .4$ with provisions for repeating .assays and call- ing for uopirss. - s. : ^ , ''.JS'r' .1'*.'.::' . Fuss is sold F.0.B.f Barble3villa, Oicl&hom*. AfUr assay, it s sxitimnjfd, rooyarsd: sad repeats and tu*- pires called for, if neoessary, the International Minerals and Metals Corporation'pr.epares'thejraettleaents .`f and forwards them, together with paid freight bills to the Salt .Lakt^Qffic'e^fj-^e International Smelting and Refining Coupany where entry is made recording revenue from;sals*-*iConhlnedToaAtbs 'same`'certificate with Bartlesville assays are their weights and moisture percntages*'r-TheJlSalt^Lake/pffice forward#;theee:re- .. ' ports, together with the freight bills and settlements to the Tooele'Qffice^wheroVa'metallurgical.''stateaest. is prepared showing a tabulation of the weights, assays, metal. content, ch*rges^|nd;redits* i'-The' weight and metal content are then adjusted by dele&ded fume Inventories to arriveiat'production as.used:on plant ' metallurgical statement. " ^ 'M Both zinc and lead are assayed by each company, although lead\is."it!ai,settle*t^iactor,^'Tb:f acilitate ` early preparation of metallurgical statements all inventory assaye are det'emXned.-fpoa-grab.eiaples, ; in - computing metal production, however, settlement assay' on tziinnc* is used*!* +P'l-aLnwt vats---aay.a'' o*n-''le--ad* /rc--op-per and''-`?- eilver govern for calculation of production of those metals. -.;h Bookkeeping entry on sale is mads at the Salt Laka OffiLceee, the'International'MLDerals'and.Metale Corp., being charged and credit made to "Zinc Fume Sales ~ Leaded Zinc Oxide Sales ' *'.y. ; 11 Leaded zinc oxide is that high lead content material recovered rafter. the^n^oxide ^ has been discharged from the deleading kiln* The leaded zinc oxide is either returned to the;sinteringvplaxit-for''furti>er re covery of its lead content or sold to customers for urns in".manufactureT:of 'pint*^:.Sales'ofvlsaded sino oxide are made direct to customers or shipped on consignment to-agents who.report-monthly on,.sale# and in ventories* Sales orders ars received at the Salt Lake Office fTcm-tbe Intematlgnal'Sttsitlng;and Refining .. Cocpany, Pigment Department, Bast Chicago, Indiana, or from the BewlToric,.Ott$cm!^rioeS|are|quoted hr the. Eastern offices and agents are allowed a commission of 4 per po^ull^DaringfJul^^LStiSlone^salt^was made .. direct by Carl F. Miller and Company, Seattle, Washington, and conalgnaytTsals^weriji^made^by^C.^L* Duncan Company, San Francisco, California, and Eraft Chemical Company,'jChiyjKy Shipments to consignment stocks are mads in 100 pound bags* Tbs`amtsiial^usually aasaya^between 50$ and 53$ lead and fro* 16$ to 18$ zirc , although the sales price-ia npt;c*lfulatd.-uponactual.assay* For incorporation into metallurgical records actual assays or assays .M^naarly^yprsuntative as possible art used in determining inventories and a ales. -. i. SLAB TREATING PLANT 5HIPV5MT5 - SLAG TRBATIN3 PLANT (Continued) Louded Zinc Oxlda Sales (Continued) The Salt Lake Office receives the shipping order* and records the entrieeyfbr^freight,coaieaion*.' r. and sales* The information is then forwarded to the Tooele Offioewwhheerre a stateme*n-t is.prep' ared'g*iyi*ng. full detail of weights and metal content, gross revenue, freightt,. comlBgiona-'v, '^7%,. ' Information on consignment sales is somstiaes received too late .to.incorporataJlntbi^|ecouats\foEl.tbe; month in which sales were actually made. For exumple the June 1948 aalea/vhy-vC^iLtHlhojca^Coflpaay^were. re. ported and remittance received on July L3, 1918 after metallurgical 'data* had' been.'j>repared*'3ilb*rfaale va* therefore recorded in July 1943 account* Also, the consignment sales are recorded ."directly .through the cash book upon receipt of cash, such caah payments being received too late, tolcredit; to. consignment sales for the month in which the sale was actually made* > ; Deltaded Zinc Fume Returned to American Zinc Company of Illinois As noted under comments concerning receipt of residue from tbs American^ Zinc\Cnpar^.`of11llinois, 80 of the zinc content Is returnable in the form of deleaded zinc fume at International, Utah* The fume is weighed and grab sanpled at the Tooele smelter and assay determinations are mads on the samples eo obtained* Assays are obtained on zinc, lead, oopper, silver and miscellaneous metals* Due to. delays in shipment and settlement sampling and assaying, the assays as first obtained at Tooels are ussd in compiling data on metals shipped. >Thheenn final weights and assays are available,, adjustaaanitts* are aatadr-' to preliminary data. :z. /'-'v:.-*- ; Upon receipt at destination (Machovec, Texas, during July .1948)'the American Zinc TCooipaqr .of Illinois obtains gross, tare and net wei^its and percent moisture* From the moisture staple percent`sine is also determined. After sample has been submitted to the International Smelting and Refining Coapany a comparison cf zinc assays is made, uapires called for, if necessary aid the contained line .determined* ;.. , No provision was made in the original contract as to whose weight*. diould.gov*ra"and_Lae 'to.the splitting limit to be used on lino. Reference to files in the Salt lake Office'idlsclosed^that agreeaeat'.ves later effected covering these subjects. Letter of Ur* R. A* Toung,: Vice ^President|o^ihe^Aasricaa':Zinc Company, r of Illinois to Hr. G. A. Burt, Ore Buyer for International Saelting^ani'RafiningiCoBpaay,*stated\."ConfirmIi^ our conversation today, the contract between our companies' for retum^offzine;fuJMvfrom ths'Honsaatoreielda* . currently being shipped you did not provide at ifcich end the material^!* Vto*b;weigbsd*`. As.per.oar agree* . aant, we will use for settlement purposes weights and adeburea oafumsaa;dstermined .ationr. Dumas Pleat.upon arrival and will send a pulp of sssple to Hr. C. Bardwell at your Tooels .plantj^iAs 'soon, as year ..assays are completed, please notify us of date you will expect to mail your assay, and we will mailours.so as to crow in the mails. If splitting limits provided for in the cccctract.'ars.. exceeded, .asj^shall^thea. resort "to 1 pire procedure as set forth in the original contract*?- " * * `* ** ` * ` * limit of..# on zinc which is used in conformance with iKvprrDRiBS * s l a g t h s a t ib q p l a n t Finished Product - Deleaded Zinc Fufflb fI _ ;T{ i. ... fk; Inventory of deleaded sine fume at July 31, 1948, cctvsieted.of .ClJ'inHritnsit^to Intemational Hinarsla and Metals Corporation, (2) on hand at plant and (3) on hand at plagt.abub|balong1ng to^imarican Zinc Company under contract specifying return cf zinc in fora of deleaded fUasi*;j?M'^"" Bills of lading are prepared showing ears shipped to-International HiMrals^and'Hetala^Corporation*. That ' company, upon receipt of fume, prepares settlements on cars recslved'-during'ighefiionth**v Anjr'care-for which bills of lading have been issued which are not included in receipts/at Bartlesville, acoording^to-eettle* ; cent statements, are considered to be in transit* The dry weightofithejinventyy;.:is dstaradnsd byixppLi*- eation of moisture percentages reported by the Sampling Departaercfc*,>Grab 'namplestofrcars/shipped'provide the basis for determining assays used for calculating metal contfntj ch ?c'ar(ix; ealcaletmd' and tabulation made of all cars* Deleaded fume on hand at plant usually consists of that in partially.loaded^oars 'or.In bins* ' Tbs Operating Department estimates the tonnages in this category. : Inclxad*dtin^thsj;Jaly?J31,'3l848. inventory 2 tons in "put and take" bin* This bin .is used as a receptacle,for.-*toriiig^uantiti.*a-*T*oTed'fromJ,ov^ loaded cars. At July 31, 1943 the major portion of the invantoryi`coneist*^^^.barrijjgs,4iqir^cleanii>g,s.Craa *thue- kiln* Monthly moisture percentage and assay* obtained frta;^ te^aa^l^.^n**^.u*+s**^*^ia cal* culating the dry weight and metal content of the inventory* Y- ' PNYC 00012269 h>-- zr v;V?3'. HIPS P tf :k-M*s^ v:-/.. 'i: . : JUs. --.Uv- r- SU3 TH3ATBO PLANT Plnlehsd Product. - Pelcadod Zinc Puras (Continued) Contract with American Zinc Conpany specifics that "Zinc will be returned;current!/ as.the sine resi due is purchased and treated." Due to this provision it is necessary to calculate-the. sino.content of . residue treated by adjusting receipts by inventories at first and last of month,'-,all.calculated.at:80|, rate at which sine is returnable. To the quantity due the American Zinc Coapacy as thus arrived at is added the amount due at the beginning of the month, from which total is dsdneted-ths quantity actually delivered in fume during the month to arrive at the inventory of zinc In fume on hand, but belonging to the American Zinc Company, The amount due, although recorded as to weight and metal content, ia not valoedL Its content is deducted from some plant inventory, the balance of which is valued. Finished Product - Leaded Zinc Oxide Inventories of leaded zinc oxide consist of (1) quantities consigned to paint coopaniea and (2) quantities on hand at plant. * Coaraiosicas are granted to consignees for sale of the leaded zinc oxide. Each month the consignee usually transits a letter showing the amount sold and the inventory remaining, along with remittances of cash doe. The unsold cate rial is tabulated on metallurgical reports, metal content being calculated on the basis of laboratory assays. Quantities on hand at plant consist of oxide in storage in pits and in full or partially loaded cars. Tho storage Inventory consists of 100 pound bags. At July 31, 1948, there were 330 bags on hand. The in ventory in cars is determined by actual scale weight, if full, or by visual observation if partially full. The inventory in pits consists of oxide underneath the bags. The pits are,usually cleaned each day. They ere open to observation and the tonnage is therefore estimated visually hr the superintendent or truck driver. By-Prodacts The by-products ere classified into three divisions, (1) furnace fume, (2) lead flue deeninga and (3) furnace flue cleanings. Furnace fume consists of that in (a) balloon flue, (b) U-tubes, (c) header,flue, ,(d) bag bohse pits and (e) storage. All of this primary zinc fume is exceedingly lighfc'and bulky|in'character,`.which neces-* eitateo the handling of a vary large volume each 24 hours to keep, up wiib'iproduction.A Weights per cubic y foot of dust in places are as follows) U-tube cooling section -. 83 pounds; ^baghouse'header, flue - 2o pound*; bag house pits - 1$ pounds. The balloon flue is thoroughly clsaned;onoe every 8 months or year. Cnee a day, or every other day, the flue is tapped for removal of current, material. The truck driver estimates the inventory, *hlch at July 31, 1948, was 50 tons*. The U-tubes discharge into hoppers from - which the dust is removed. Some dust renains on the side walls and around the hoppers, - This inventory at July 31, 1948, was estimated at 35 tons. The header flue is cleaned about-every-; 12.days end removals made through a pit underneath. A fairly accurate estimate of the tomags. reamlnlng'.'ii'poa eible. At July 31, 1946, only 20 tons were carried es inventory. The beg bouse pita aredireotly below'the'bags which oollect the funs. There are two parallel baghouses, each having 294. woolen Jbags 18 inherin'diameter and 30 feet long* Each baghouse is divided into 7 pits of 42 bags. All.of; the fourteen pits are'used for tbe sine fume from the slag blowing furnace and a separate baghouse is used, for lead furns from tbe kiln* Tbe bags are shaken with mechanical shakers which raise and then drop the bag l .inches each revolution. Tbe pita are about 7 foet deep. The depth of dust is estimated by visual observation.' Each foot of depth contains 2 tons dust. Thu* 14 pits containing dust averaging 1 ft., in depth would have an inventory of 23 tons. At July 31, 1948, the inventory was carried at 30 tons, indicating.that the pits were kept well cleaned. A vacuum system ie used for cleaning. Storage inventory.at July^3lV>19,49H consisted of. 73*8 tons. This inventory ie determined by count of 50 pound bags of which the*invantoryTconsists.';.-.Ths metal content of the above described inventories is determined on tbs basis of fixed assays.-.-'Tbe material is consistent in grade end is the fume highest in zinc content. ^v '? The lead flue cleanings inventory consists of fume in (a) brick;chamber, (b) balloon flue, (c) 0-tubes and (d) header flue. These Inventories are known as secondary flue system inventories. Tbe brick comfcastioa chamber Is 40 feet long followed by 122 feet of b&lloon flue, which connects to a. 8-tube cooling section 20 feet long and made up of 4 U-tubes, The inventory is the brick; chasher- may ;be observed and Is estimated visually* As a sloping Cotton is necessary some inventory is always 'left,!. facilitate passage of current material over top. The chamber is cleaned daily. At July 31, 1946 the inventory consisted of- SO .tons, Tbm balloon flue and U-tubes inventories are determined in similar, manner to that^dsseribed above for thm pal mary flue system. No inventory was carried at July 31, 1948, in tbe header flue,- It ia cleensd every three months and estimation of inventory is on basis of time accumulations have been .-ends since last cleaning date. Jfetal content of lead flue cleanings are determined by fixed assays, . ' PNYC 00012270 J ' >. mm m STAC TREATIN'! PLANT Th-1 third inventor/ r*lw.9ri.firation, fumucw flu cleanings, are primary flu* system inventories and consist of (a ) brick chamber dust, (b) steel chamber dust and (c) furnace dust,.; The. furnace downtake connects '.-ilia a brick combustion chamber that la 80 feet long. It la equipped-Mth.eater sprays 'wfaioh , can be used to ccol the gases when necessary. A series of hinged doors .oaiaafihsida'peradJ...tha duat .to be scraped out with long-handled hoes. It is cleaned about every 2 weeks and-inventory .is estimated, on the-.* basis of prior removals, A steel moisture'chamber fallows the brick. chaaberi'aad.iB.48..f.eetJ:long.\ It la:.*. hopper bottomed and cleaned daily or on alternate days. Occasionally, the'hoppers are; .viewed to'`determine ' inventory romainirig. In addition to the charter dust sone dust accumulates around the slag furnace, is leaded into r:-ilroad cars and stored in bins. Visual estimate is made of that in. cars and bin.inventories art determined by measurement of bin md weight per cubic foot. Pixed assays are used for determination of metal content of chamber inventories, although monthly samples and assays are taken on furnace, clean ings to determine metal content. * \ jVi> v-*^ Considerable difference is noted betueea the Baat Helena and Tooele methods of arrlvtng!t'inventory. At Past Helena the Superintendent calculates daily production from known metallurgical data, and accumu lates production for the month. From the calculated production deduction is'made of weight of cars shipped to Great Falls, adjusted by inventories, to arrive at inventory remaining in system. Tbs inventory as so determined was consistent with tonnageo removed during shut down periods, thus indicating a good degree of accuracy in inventory calculation. The method is much in contrast with that described above for the Tooele Plant. Hie difference in method illustrates the difficulties encountered in determining accurate metal lurgical inventories. Both methods would seem to be reasonable and superintendents of both'plants indicate that tonnages are consistent and compare favorably with inventory removals during shut down periods. ; -l: ."jVjfc \U \ '* ' AS* i.'&fPw o my C 00012271 - **.: ' v *' SULPIEIDS CONCENTRATOR ACCOUNTING FaCC^UFT FOE SULPHIDE CONCENTRATOR Similar to procedure on Lead and Slag Treatment Plante all accounting details vkept*ft arriv:At>profit.:.\-' -' a? nearly as possible. Except for depreciation expense all costa are availed e.for.idsterninAtioalcfiprofit a. Revenues, honover, are dependent upon schedules as provided by the management, .tranaXeri.oX^lead'and iron oon-r centrato3 being made to the lead plant cn that basis. The description below briefly details'features'on. U),, receipt and cost of materials, (2) shipments and a alee of products and (3) inventories and their valuation* (1) Receipt and Cost of Material* V ' * t **. . ,' Materials for treatment consisted during July 1948 entirely of crude lead-tine ores* ... Of,ten ahip*. cents received nine contained a greater average percentage of lead than zinc* -,The purchases are made under contract provisions or open schedule by the Ore Purchasing Department. of the.Salt Lake Office, and payments are mode by that office directly to the shippers. Cost of ore is ettered on the general books and is kept separate and distinct from cost of ore purchased, for the .'lead plant* So materials were received during July 1548 from the Lead Plant* . V// * (2) Shipments nd Sales of Products There ore three customary products sold or transferred. They are (a) lead concentrates, (b) nine concentrates and (c) iron concentrates. The lead concentrates are all transferred to the lead plant uid?r schedule provided by the management. Total production is transferred, that is, any in ventories remaining at the end of a month are purchased by the Lead Plant and are included as a part cf ite inventories. Bookkeeping entry is made by the Salt Lake Office crediting the Sulphide .Con- . centratcr and charging the Lead Plant with the value of the transfer* Zinc.concentrates are all disposed of to the Montana zinc plants of the Anaconda Copper Mining Coc^any. The Salt.Lake Office properes the entry charging the International Smelting Company, Hew lork .Office, and crediting Zinc Concentrates Sold to Anaconda or Great Falls. Sale of iron concentrate* to the L*ad:Plant is.mad* in manner identical to that above described for lead concentrates* : " . Vr.'v . {3} Inventory Valuation* (a) Or* at Stock Pile Ore at stock pile is carried at cost with the exception of the 'silver and gold centent which' are valued at 34.75* and $34.00 per ounce respectively, as per'irutnictioos.,;-!* notedrunder cocments on "Inventories - Ore in Stock Pile* the additions, are made.'toHb* pile in full " lots and calculations on value of ore by lots is made from data on ore aettlemeots*: 'Removals from the pils era made at the average of the *to account for* quantities, both aa .to, aetal coctact, metals paid for, value of sstale and treatment chargee. Small piles'are usually carried and are cleaned up frequently. Usually a pile la cleaned up entirely, as the plant,1a operated in campaigns when a sufficient supply of ore has been accumulated* Partial removal of piles is an' exception .to usual practice. Ho last-in, first-out method of inventory.' quently cleaned up and total cost is carried against' (b) Ore in Bins Record is kept as nearly as possible of bin inventories by.lota*V,Under the method used in operating'the concentrator; i.e*, in caopaigns, the content of the . bins is generally ascertainable by lots. Complete cleanups are and* during periods of operation,'-h L accumulations begin for the next operation. By reference to dump reports tbs lot number. of..ore;*tored_is^obt*ined,';.Tabulation of the inventory is then made by lots and the- d^ weight,Vm*tal*'ccntntj;'mstal_s'paid for, revenues and treatment charges are calculated from settlamants*i^he^jj(llver'>axxd.'rgold^'boever, . sr# changed to 34.75$ and $34.00 per ounce respectively, As- with. stock':pil*rores^so'last-in, " first-out method of valuing the other metals is used* (c) Concentrates on Hand and in Transit Concentrates on hand are finished product and are therefor# loot, -.wrkad back. to . an original equivalent* The inventories are therefore prioed at market yvalueimhichlat July 3L',>1948, was the price obtainable under contract with the Anaconda Copper.Mlning^Coqpany*V All revenue*, -treatment charges and freight on concentrates on hand `Julyv31'i^l4iB^jwre calculated;n-jthe basis of that contract* : '1 ' Tt Writ*;- * ' >.w-'.; . \*r: PNYC 00012272 < . "iff' BBCEIPTS - SUlfHIDS OQHCENTRATCB Contract Provisions - General Concentrating or83 ar< purchased under specific terms as provided by contract or open-schedule. Of th? l^rgc nu;:;btrs of ores received during July 1948 tin were aydited in detail,.tboat of the Park Utah Consolidate'.- Mln^c Cospany o.v' leasers of the National Tunnel and Mines Cospany. Typical of contract* fer millins orec is that with the former company, Por inforaative purposes the terms are heredth summarized: . < <$>: v ; Payment fer Metals* -..s : .i :-U , - V Gv.id Silver Copper lead Zinc Pay for 70& up to and including .05 ounce# per ton at $32,816 per ounce. Pay for 60, if over .05 oze., at $32,816. Mlnianm deduction is .01 z., p!r tor.. Whan 13 ounces or under, pay for 83jt at Mint Price. When over IS oza*, pay for 90,'i of the excess over 15 ounces at- MinbvPrice* m m ma de- duction .5 ozs. ;r V. Fay for 70$ at New York electrolytic price less*6.32901. Minim* de duction 15 pounds per ton* * Fay for 83,1 less 2.4?0< per pound. Mini mm deduction 20 pounds per ton. Pay for 65j$ lesc 2.9105$ when zinc is 5$ per pound or less. To this deduction of 2.9105$ add ,4$ per pound for each 1$ increase in price of zinc over 5$. Minimum, deduction 60 pounds per ton. Monthly average on sdnirojm deduction if beneficial to shipper (per A. B. Young a/16/43). Trents-rr-.t; Charge $1.24 per dry ton when sampled by.the Utah.Ore Sampling Company. If not aanplod by the Utah Ore Sampling Cospany, charge 23$ par..dry Bullion Freight - Metal prico deductions based on copper and ltad bullion rate of $19.03 and $12.76 for zinc. Any increases or decrease*;art for account of the shipper. ->>/! '" 'r . Splitting limits: Gold Silver lead Coppor Ziic 02 oz, , per ten 5 oz. per ten' .3* .3* .5* Or^-e from Park Utah Consolidated Vines Cotnpany Ore from Park Utah Consolidated Mines Company is from two locations. Park City, Utah, and Keetley, Utah, This ore is sanpled by the public sampler, the Utah Ore Stapling Cospany*' According to-the con tract the International Company allows a credit of 25$ per dry ton to the Park = Utah Comparer fear sampling concentrating ores, the latter company bearing the full cost of sampling byitha..Utah Ore Sampling Company. The full cost is paid by the International Company which deducts the amount* from^the proceeds of.;ore du# ' the Park Utah Company. ` ^\ - The Ut8h0re Sampling Company weighs each car gross and tare,Tend obtains;;the-percent moisture. The weights and moisture percentage are accepted by the International Coi^>aigr^However, the ore is weighed heavy and light upon its receipt at the Tooele Plant, a check then by. beingobtalnd on theweight. The Salt like Office reports the weight and moisture percentage to the Tooele Office for use in tabulating the re ceipts , Sett.lmuent assays are arrived at in tbs usual procedure by averaging teller* and buyers assays with use of umpire assays when splitting Units have been exceeded., r `y.Jfer ' 7. PNYC 00012273 .v:-V7b:y-.--. ?:r ** V:*Av` SULPHIDE CONCENTRATOR RECEIPTS - SULPHIDE CONCENTRATOR (Continued) One ftom Park Utah Consolidated Mines Company (Continued) Perk Utah ore is usually purchased for the Sulphide Concentrator*' HoweverJ,there .are occasional lota !. sufficiently high in lead content to be used in the lead emelter*. Two.acbeduleeiare.ii^efXect^foritbe.pur-C-. /' t chase of Fark Utah ores, one for concentrator ore and one for aneslter,ore'.':f\BTeGXtho'u^^'an?pr*;ay7iiot^be, LSf?.* of the proptr analysis for treatment in the smelter, it may be settled for on the;`.lead?Melter:achedul#| ' ^ if by th*>t. rrhedule the settlement is advantageous to the shipper* 1 Of seven-lots rectivediXroa Park City during July 1?-? throe were purchased under terms of the lead-zinc schedule -andN'four undeTy.the, lead!Melt ing schedule ?U-hovgh all ee^nn lets w^re actually treated at the concentrator***'... -.ri f ** >. . - . * .i V-' ft1 During July 1248 concentrator ore was received from nine shippers. Of the .nine. only.tno^ssat^their cro to the Utah Ors Sampling Cocpony, the Park Utah Consolidated Mines Coi^>my_and tbs^Ba?';X.lHitUjag^c<B^ry,^ ':* at Jericho, Utah* * ' v;5 VV.- Contract >.'lth the Park Utah Cci^nj- contains a provision for use of a monthly Iwirmin deduction calcul^Mon o.u clue. The contract provides paymont for 65$ of the zinc content at_a specified prio* with a minimum deduction of 60 pounds p*r ton (3$ assay)* If 35$ of line content (not paid for) is less than the poundage not paid for on a 3$ deduction from assay, then the greater amount, or 9$ of dry weight, is not paid for, Likrains if th9 35$ of cine content exceeds the 3$ of dry weight not'paid for, then the higher pounds zinc at 35$ is not paid for. According to the contract each lot is settled for-separately and the minimum deduction applied to each lot. On April 16, 1943, Mr. A, B. Toung conceded that a minimum deduction be calculi*.cd, banod on a monthly avnr-'.ga zinc assay. If the monthly calculation results in a leaser nusber of pourfda no\ p/ij.d for than the sun of the pounds not paid for by lots, then the Park Utah Conpany would be r-- i.uvur*od for the additional pounds zinc. However, if the calculation resulted in an additional poundage of zinc not pni.d for no penalty would he issersad against the Park Utah Conpany* Stated otherwise, the nwnMily calc ilntion is used only if beneficial to that conpany* Ore from the National Tunnel mid Minefl Conpany /^ . Ore from the National Tunnel and Mines Conpany is from a lessee of that conpany (Prank.Da Bonch)* Re ceipt of or? and accounting procedure is identical to that described .under JReoeipts --iLead FI mV.* Ore from Combined Metals Reduction Conpany." . The ore Is purchased under open schedule terms. One settlement provision varies'somewhat with other* as audited for July 1948. Certain of the ores in the National Tunnel property are oxidized* ' Is .such oxide ores are not amenable to the concentrating process, the oxides of lead and.; zinc are.assayed and such assays deducted from the total assay of each metal before payment is V' 1 ** The National Tunnel and Mines Conpany is in the process of bauikruptcy jnd'ao^ores'ar.e being mined other than that of losswes, . ;* SULPHIDE CONCENTRATE J ** Zinc Concentrates Shipped to Anaconda Cocoer Mining Conpany* Anaconda." Montana * .d `r - Zinc concentrates are shipped to either or both of the electroly$ic**ino*plaat* of the Anaconda'Copper Mining Conpany in Montana, one being at Anaconda and the cither at Great Palls. .^Present settlements are based on letter agreement dated January 1, 1943* Whether or not concentrates art'ehipped to: JLaaconda or Great - Palls, the International Conpany is obligated to pay freight to Great Falle^EUck Sagle) | Agreement specifies percentages of metals paid for, prices to be used and base.treatment^charges, with adjustment* thereto. One unusual feature of this agreomont is that the lino-price to .bemused it not that quoted,by the Engineering and Mining Journal, but the price received by the Anaconda Coppez^Mialng. Goaf?any,f*p*b, its Montana Plants, for zinc sold and delivered by Anaconda during the month:ofi:receiptr.of* theiconcentrate, less .30+ per pound, plus freight on zinc from Montana zinc plant to St* Louissaouid.. k'The.'original agree ment did not specify any increase or decrease in base treatment charge dae-t.Ojjincreaseaior,decreases in labor rate. ' In letter of Mr. R. 5. Dwyer, November 5, 1947, provisions were made`for .each, changes in treat ment charge. Ary increase or decrease above or below $10,50 per day labor^ie'itO'ba.'coBpsnsated by addition, or subtraction as the case may be, of l*2f per dry ton to the base, treatment^charge for each li pw day in crease or decrease in coat of .labor above or below said $10*50 per.day* Anaconda weight* are used in making settlement and date of weighing at Anaconda is official date received* `>;T!ir*oqrd-the tranaaction the Salt Lake Office charges the International Smelting and Refining Conpany/--A**m Sold to Anaconda." PNYC 00012274 ^ ? ,-KV< .A. V* ^ `. Sr.-v SULPffHE CONCTITRATPR SHIFgCTS - SUIPHT.03 OOUCEOTBATCR (Continued) Lead Concentrates and Iron Concentrates to Lead Plant Sulphide Concentrator did not operate during July IMS and no-tranafsr-.of&sad5ftEiii^Tco were aiade to lead plant. ffhen plant Is operating, transfer of these- productslis.aacUE'ft.h&aad[plant on - & ; ' basis of schedule provided by the management. Zinc concentrates, discussed`tbovei'ersji3ran#it-^t^ June l 30, 19*3, nnd received in Montana during July 1943 in which month revenue-from.'sale was-taken/into'account. Zinc Concentrates Lost in Transit between International, Utah, end AntcondeJ Montana tr.^ v: , , The Traffic Department at the Anaconda Reduction Works compares.its weights of. sine concentrate* with those of International to arrive at a basis for establishing freight.claims.^Tbe'Traffic Department at Butte, Montana, is advised of losses and from information supplied-Jy the..Accounting Department files claims with the railroad. During July 1913 one such claim was collected, r.'Prior..;to'/collection,of "such claims the Metallurgical Accounting Department makes no adjustment for these losses onlstateoents of treatment and pro duction. Some variation alnaya exists between shippers aed consignees weights-and are absorbed as loss or gain in preparation of statistics. However, when cash collection for loss is made, .the metal content of such lossen are recorded tc adjust plant recoveries, and revenue is entered upon the books of account. During July 1343 a collection was made by the Butte Traffic Department,copy of the claim being forwarded to the Salt Lake Office, The following entry was made: w-?l f . . Dr, International Smelting and Refining Co,, Sew fork Office Cr. Zinc Concentrates Lost in Transit to Anaconda ^ The credit is in reality a sals, ; iNvgmRiss - s u l ph id e CQuatNTn.vrcR . Or* in stock m* Bach day a "Daily Car Report" is prepared by the operating'Department showing car numbers of ore dumped at stock piles. These car numbers are then checked to report "Record oflKilling..Cre'Received" which gives the gross', tare and net weights of the car and its lot number,; paving ,thu^seured;.th lot'rmmber, the car cay be identified on the Abstract of Cre Received which gives allodetiilfas.^i'weig^^aad jastal,-content Tbs.r lots which have been stored are then posted to a euaoary or.- dispositionuatatament where totalai-are kept by ^ shippers and by piles to flhich ore has been stored. The various storagesv'are.'then posted.to a .TRscord of Stock Pile Ore" which contains a sumaary of the inventories, receipts-md'removals of ;iWck.pile ores, ; ` V... s U-, * -**'' Practice in handling removals is different from that used on-lead pimtj'stp'ck pile:orea where samples were obtained and assays deler-nlnod* Since most of the Concentrator ppLapt^bres^re^rtpred^o^.'rwlatively -*.t short periods and the piles are entirely cleaned up.during-petiods-of:'cpertjop^Pj^W^'po removals have been made, 'When a pile is partially removed the dry weight ludT'1'' --v'--*** J-J -* -J--*- carried In the inventory. Ore in Bins ---------- * ?.< -:W - Two methods of determining bin inventories are possible. One method;is;by measurement of bins and cal culation of inventory by multiplication of cubic feet full by weight per^cubic; foot of material,? Bis other . method is to arrive at the inventory by accurate scale weighU on .juUitiwjjiusdlyeaovala.^A^modification . of the latter method was used for July 31, 1948, inven^ry. in.-MM^^ftf^^Bit^tor/.does-no.tfo^rate^ , ", continuously. The Operating Department usually puts on its caapalgM*daringjsthe^ai'ddle;oflthe7aonth at" which times whole pile or bin inventories ere removed to treatment,v .TtasShirtafrJuly;lHB*a, large^quantity ^ of ore was placed in ecqpty bins and plant did not operate during?the aonth.^Ths inventorrjof: these '.bins was therefore determined by reference to dump report* showing what.lotsientsred'Aheibins.^Ths weights and- j metal content of these lots was then obtained from settlements' or 'abstracts""of`ore -received, Totbe in-, t ventories as so obtained were added bin inventories still -remaining Zinc Concentrates on Hand and in Transit ' At the first of each cwnth the Superintendent of the Sulphids .Co'ncsntrator^iubmitsTAN.stter'dttailing . various ores on hand in bins and at plant. The clerk preparing_Juitallurgi,ftaX|ftatemaats^COf^are* the.lots reported on hand in bins with his own record obtained from duap'rwportt&^^^&arJlmQtoxisSj including concentrate in Tooele Valley Railroad cars are reported by the Superintendent, j1 XX BO' staple is taken'the best available moisture and assays are used to obtain the dry-weight andjWtal-.COfitent*',;.;.- \ The inventory of cars in transit is determined from bills'pf,-ladSng-and^ettsrs .received from the con signees, the Montana xinc plants. Bach month the with pulp samples stating the car numbers and weights of cars taken into their.'moDihSvrwceipta*K'Aoy5bSS.shipped.;frctt Tooels and not received at the Montana plants are carried as inventoxyiinttriig^B'`ears-*rs|sa^lad 'at: Tboelei-- by lots (approximately 10 cars to a lot) and assays ars'obtalmd^ftom^hs^saaplas.taken.-gThsss assays ppo-v,'- vhidhe* >th->e> meAanus for obtaining mmsettnal.l content of the in ttrraannssiitt- inveennttoo^rryy.'^j^-^tf' y ? * -? Jll_TMYC 0001227S Mil gRR0R3 AND DISCREPANCIES r ;l ,5 SHIPMENTS - COPPER PLANT Furnace Bottoms to the American Smelting md Refining Company Letter agroeoant on sale of furnace bottoms provides] "Arsenic : 3^ free; charge for excess at 25$ per unit. 'Maximum -arseoi^p'1e-nalty- rH^fc> V>re :'v:tv. per ton- However, if the arsenic content is i^Tor^w^^here^iil^^M^ be no penalty." ' ; F''f-as' Lot No. 15, settled for during July 1948 contained 15,7034 arsenic. After deducting tbe^.Sjt free,, the penalty would calculate to >3,18 (12.70 units 6 25$ each). This penalty was used on the settlement sub* oitted by the American Smelting and Refining Company in contradiction to,.tbe provision*above.state.d celling SHIPMENTS Freight Bills on Deleaded Fume to International Minerals and Metals Corporation Freight bills on two cars of deleaded fbrae shipped to the International Minerals and Metals Corporation included errors in tabulating weights. Detail of weights appearing on fre^ht bills and coo^arlsoo with Tooele weights is as follows: v&-5. $v- Bartlesville . Tooele Car No* Lot No. CIO 83437 1735 Gross Tare Net 188,120 . 48,240 139,780* :/ 189,840 43,680 ui.160 ; 1,360 Car No, Lot No. FLS 2236 1736 Gross Tare Net 106,260*Vv . 30,440 146,240* sS -*'-r 340 Bartlesville net weight on car CIO 83437 should be 139,860.providing j typographical errors were made in recording gross and tare weights. Gross and tare weights a* wed oa-catnX`236.sre.<ejcplainable, al though the net weight as reported is very close to that reported by Toosl^^^v^'" ?* jjjlj The Salt Lake Office was questioned concerning the above errors.?-Statement;was aade-.thjfc- if'the net weights as reported by Bartlesville were oonparable with those.ofvTooele^thej^exe accepted.*: However,* if'.' apparent shortages occurred in substantial amountss, i'nve s*ti'gawtions,,we' re' -maJd-efofVsueh shortages,*' *"**' 3 A1 RECEIPTS - SULPHIDE CONCENTRATOR " *v--:. Base Bullion Rate for Determining Lead and Copper Payments on' Park Utah Consolidated Mines Conn any Contract Contract provides that any increases or decreases in the lead'and;copper, bullion rates-shall be for the account of the shipper. On April 20, 1935, the bullion rate waaiacrsaeed from\$12`.50 to :4l0,00 per ton. The contract of October 31, 1935 specified the >13.00 bullionir5^e^Bowevr,t:*lI;;'aettlaaents are calculated using the old >12.50 rate as a base. Ho explanation.couldi^efjfcven regarding;:the-tt* of the lower rate. Its use results in reduced payment to the shipper of. ^^2S$^pM^pound .of,fleadi;or; copper.paid for*. Mr. G. A. Burt, Ore Buyer, expressed the opinion that. iaCvie^Wfit :amoant.vinyolved and . the . long period of time over which the >12.50 rate was used, nOj^ad^usta*** Cifcorrectionslbe.made and use of the >12.50 rate be continued, .. iiSirf PNYC 00012276 . <`-&V: U?- < : >-n fif: G2NERAL REMARKS SHIPMENT OF MATSIIAL - COPPER PLANT Reverberatory Furnace Bottom to American Smelting and Refining Company ' Latter agreement with the American Smelting and Refining Company doesnottprovidefor'eplitting Unite h or umpire assays. Ur* Scanlon of the Ore Purchasing Office at Salt.Lake statedtthat>,the.-,prooadure^uaediinarriving at settlement assays was to obtain the American Snsltingiicd'BerinJ^JCc^aiijr^iss^sJJai^.tcoa^-'i' : parison of its assays with the Tooele assays and call for umpires'on thoseHaaa^yaVtoof:i) nV, i*T f~'h--- ' ujtpires were called for, the middle- assays were used) otherwise the flessye^of-'the-Agsirioan- PBeltV^'end ~R fining Company were used. On lot 15, and duplicate assays. Detail of assay Copper Lead Silver Gold Insoluble Iron Zinc Arsenic Antimony Nickel T< Original 11,7 4.2 7.2 1.31 28.8 16.9 0.7 15,7 2.4 6.4 11,7 4.2 7.3 1.30 29,0 16.9 11.75 3.5 ' 6.42 1.35 27.2 17.1 1.0 14.94 . 3.1 . 7.3 . ' ^Ul?5 0SWKjfc'; co. co. s :' ?;25'v . ;7'lrrg. I00.I. : ... 1.27. t. 1.27,- Middle':(Umpire) . ^27.8 'r. 1.3. IS. Co. ' ^ 17.1 A.S. A R. Co. - - 5fei '1.0.'' viij; t s. co. _ ,16.15 15.7 Hlddl., (Toool.) V 3.1 - ->-,/- l^. fc S..Co. ' -8.2 ' 7.3/- 'Mlddl. U.S. 1 S. Co. The settlement assays are therefore arrived at by review of assays without definitely defined Units. The procedure would appear to be rather loose, but inasmuch as the. material'is .hard to, dispose of - due to its iopurities the lack of definite limits may be condoned as a cobcesaion necessary.to making.sale. Any changes in the above method are at the discretion of the management. R5CgI?T CF MATERIAL - LSftD PLANT Received Dates As noted under comments on receipt of ore and concentrates from' CombinedJtotals Reduction* Company, the factors determining the quantity taken into receipts are (1) avdlability.-,oi;silyeE-4ffidavit#7andV()-avail-. ability of data necessary to enable clerical force ' -*~'*'* *i -- - < tracts governing purchase of various ores usually < sampling as a basis for metal payments. The above practice in determining receipts for the month varies some what'froa.'practice^bf^Anaconda? Coppor Mining Company plants in Uontana where date of receipt is usually date"sajt4gal' is weighed. However, the point of receipt in Uontana is the plant iteelf where the material, is^weighed^wheressfat Tooele the point of receipt is Warner Junction, between six and seven udJ.es froa.tha?.p_lant^V(i-Soae^delay; might occur between receipt of ore at 'Warner and weighing at the smelter. . Sampling mjy^again>be^d*ls7ed,.',f6r b o m time after weighing. Illustrative of the lapse of time between receipt .of rcars]^Lt}yi and settlement is the following data on Combined Metala Reduction Coany''jssj'^ 'r$ Lot Ho. Date of Receipt Date of Sampling Date`of*Settlement i \'Mo. Business 5175 7/22/43 7/27/48 .. .V_,J_u,,ljr-_1_*4_8. . . 5181 7/23/48 7/28/48 1948 > - . *. rr From this data it may be observed that both lots were'received^u^d;'8u^ple^^|yuly^l948''altho.ugh one was officially received in July 1948 and the other in August 1948It':may:3|l^^^]^ted`tJa^/tbejBttlSAeat for - lot 5175 was prepared in time to facilitate dosing of July 1948:accoaiit8v^Al^>'u^preliglnXry-;a;ttlemeots might be used to facilitate early closing this would izzvolve'coadderade^cd^^^cd^vzic^i^?lA;-report* ing affidavit silver would also require more statements. When affidavit ailver^ts^not. involved preliminary From this it may be noted that closing could not be- deferred', until.aval,lability of`final data.' Adjust- ments are made for final settlement in the month following. tj PMYC 00012277 :VCH' A 4}f: iv aHn GRN8RAL mUARKS RSCEFT Cf MATERIAL - LSAD PLANT (Continued) Received Dates (Continued) Discussion with Ur. W. H. Floyd indicated that instructions bare __ sent between silver affidavits and receipts as shown on metallurgical atatsi^t^^^.Ihus^XtoTr^rtlsilver^o q *z basis of prelintinary settlements would involve preparation of reoonciliationi.stet^aneat^shcniing: adjustments .to *?', preliminary ounces silver included in receipts. Such reconciliation statmaents^are'piSientlyhbeing made'ity the Montana Plants. '. The main difficulty and objection to determining receipts as above noted>lj;.;that<'lota,oftore*mayv'already be in smelter storage bins, but excluded from receipts because of-iunavailability^ofp^ilver^affidavlts/or settlement assays. Adjustments in these cases are made to inveatorieB'`aH.re^uir,ed.'^Forudstail-OE^lnventoriao^rt see further under "General Remarks - Inventories of Original Material." ^:r*-i hp&y:;. '. **'* ; ; V*> . Inasmuch as the receipts are determined on the basis of practicability: rather, than uponfixed dates, any change in present procedure would invariably cause more delay and inconvenience, in; dosing. In view.of.that no recommendations are here made to change present'procedure. ; n-Lj* Repeat Assays on Coirbined Metals Reduction Cone any ------------ -----------------------------------------------------="u .. !ywsh;-..cyfi-h2ii-55 J':r-'-'.'3^'; 'V- : ' V- Contract between the International Smelting and Refining Company end the Combined Metals'*Reduction - Coapany states "Certificates of assay showing all assay results shall be exchanged. If the'assays shall check' within the limits of variation herein stated, tho average of the two assays shall'govern settlement* If the assays do not check within said limits, at the option of either party, a sample pulp shall be submitted to an umpire agreeable to both parties and the decision of such uspire shall be final if'his assay falls ba- tween the other two assays. If the umpire's assay is above the higher assay .or below the lower assay by an amount greater than the splitting limit (listed below), then the. umpire pulp,; shall: be submitted.to another umpire whose result shall be final if his essay falls between the two assay** of the contracting parties. When an umpire assay is above the higher or below the lower assay by an amount not limits then the assay of the party nearest the umpire's assay shall be taken for final*'settlement,* It is noted that if the assays do not check within the prescribedlimits.a sample'shall be submitted to . an umpire at the option of either party. Contracts between the Anaoonda-.Copper MiningvCoapany and.otbar .-*: companies relative to sales or purchases of ore in Montana do not contaln'such an optional provision, umpires being required when assays fall outsids the prescribed splitting limits.^Comparison between the. company#* * - practices is here mentioned only informatively. However, conslderi!!#'variance'from, contractsprovisions was noted in use of assays pertaining to purchase of ores from the. Combined Metals* ^Auction-Company.'^ If .the original assays do not fall within the prescribed limits,, either..by ivwrbal^pgrsiment, 'or by. assumed, privilege, repeat assays are reported by each coapany. Providing the assays st^ll'exceed^the'aplittingjlimits an . plre is requested. If the umpire assay is then lower than the lowest? assay,'jor higher than the'.'highest'assay., by more than the splitting limit, a repeat uspire is requested rather.'* "** uapire assayer fer analysis. - It was noted that an unusually large number of assays are repeated.^'Such^situatlon'Wuld^se'em.'to^ indicate that each company feels out the other in first assays reported,vand; bFfMtort`jto'.repeat assays * arrives at a settlement basis. Whether or not the assays are actually. repeated,l;or reports'merely-changed.^, is problematical, and not within the province of this audit. Typical ofAhe^praptic:ee/''rare~ /.^the~:' fo*'llo**w' in* g-. -: ; '' assays on lot number 5087, received during July 1948: Original Intl? Combined Copper Lead Silver Gold Insol Iron Sulphur Lime Zinc Manganese :t:t5 A.ftp Observation Is made that with the. exception of sulphur, use of averages^pruoriginal^asaays v.or^with umpires ' , as required would give substantially the same settlement result4'.^fDnifnnd.ty^o^jcetults^howeryer,;is.'not ia- . plied on all lots. The above lot was chosen at random,. .'S3?:.* : .4. _Jl - . RECEIPT OF MATERIAL - liAD PLANT GENERAL REMARKS (Continued) 31 Repeat Assays on Combined Metals Reduction Company (Continued) , MpOTl'-Sl. ,r, ............... Ur. G. A. Burt, Ore Buyer, was consulted regarding the use of repeat assays^:-He.stetedithat-'due to- f-' : wide discrepancies between buyers1 and sellers* assays agreement was reached-verbally orrotherwise'.to re-'V peat assays to obtain less variance. No written agreements were- w<ifM*-kndjwd<srin .t-hat the"" letter of the contract was not being followed* -.-"H For informative purposes the present practice has been reviewed. Considering that the contract, written as recentl7 as Hay 24, 1948, does not specify use of repeat assays,-it would seem, tbatlthelrpuse*by thayOre Purchasing Department should be approved by those representing the parties -.to:tbe-contract.;;)If approved, such approval, in writing, should bo obtained and filed for reference*1 ..,'?d: * -, Use of the practice above described was discussed with Ur. Boa Warburton>*o stated that hs would c o ih ' fer nith the derating Department and report his findings to^tbe Auditing Department, . v' * .--'c .. t : -y.:} Limits of Variation of Assays - Combined Metals Reduction Cowpmy ;*!', . .> , Contract with Combined Uetals Reduction Company states *Assays must agree within the following limits:* Gold Silver Copper Lead Insoluble Iron Manganese Lime Sulphur Zinc Arsenic Antirony 01 of an ounce 2 of an ounce 2 of 1;i : }* 3 of. ljC. V ,3 of 1* .:;yffe V- V;^. Audit revealed that these limits were not adhered to with the exception oflthose on ` copper."and gold* e in use are as follows: K$*; * * ' : li'Lfe'-Vi -. ' ^ 'r Gold ,01 of an ounce Silver Copper .3 ' of as ounceAV^1-^ .r; .s;;or w !.;*f-.vj.-. .a' . Lead .. .4,'ori* -.< v>. Zinc ;B of.15 wben^assays exceed'.ln,: ,.V * Ur-* '' otbirwisetl>>^|i".v?r-;' '* \ y', Others The use of limits other than those specified by contract was called ,tp. Ur,.G, A* Burt's attention* As with the use of repeat assays as previously discussed, Ur. Burt stated tbatstberuse of limits^other: than specified by contract was the outgrowth of experience of prior ywars<in^eliidnating^a^lerge nnaber^pf urn- \ pires. Contract provision specifying that assays must agree lithin'i'certaiii^limits^would^jadioats'.that the*Y"'^ parties thereto were not informed as to the limits actually applied*^i.3ome?clArifioatloa'ahoald-beLrsought, ty reviaion of the contract or otherwise, to effect agreement on the use of proper; assay-'liaits'r^'Ur.-Burt agreed here also, that the letter of the contract was not being'followjKl;'^-^ i`rY%i Report of the above practice was made to Ur* Rom Warburton. who stated^he,would also confer with the Operating Department on the matter and report to the Auditing Department.. %:? i - - fr'': .-y v: . 'f : ,!V SHIPMENTS FROM LSAD PLANT ' Converter Copper Lost In Transit to Raritan Copper forks' ^ '` ^ ' * lESHSSfRK?* - ' '!/ ' As noted under comments concerning shipmect of converter copper to RailtanJCopper Yorks, five pieces were lost from car NYC 133798 shipped on June 23, 1948. The following data'showsvthe.loss in pieces and weight: Shipped from Tooele, Utah Received at Raritan, New Jersey Hiufcmr ef -V nwU-.. ^sswdwefei.-* mi *f.rfiy,gic8;-acg j'. Loss i;-. Transit On August 12, 1948, Ur. if. H, Floyd, Chief Clerk, submitted the aboveTdatatto Ur. Rom;larburtcn. Ur. Yarburton advised that he in turn submitted the data to the Hew Tprk.'Traf^'cvD^artment-for'.Iclai* purposes. i""0 .-rl ' r:: IttVSirrORY VALUATIONS - LEAD PLANT Valuation of Gold Tab>ilation of gold cost is made for all lots carried in inventory*.,1 "* ' " * - ^..................... tabulated, but calculated in total, based on a $54*91 price* Afterthel; culated the value in inventory is calculated at $34 per once.-; For,'exampleJ!ont:--,__________________ T T. Jaa ' July 31, 1948, the gold cost was actually $3,390*09. No tabulation of/.the;i0^ceVp^<i^e^aFittde7to# tracts specifying 9l at $35*00, sons lOQjt at $31*816 etc* Rather than 8howounce*,;paid*fo^at!aa. odd ^average ' price per ounce, and to consistently show a price of $34^01 {government-price lesa-''marketing'cost)** Mr,-* Floyd states all gold paid for at that price. Therefore $3,390*09 ia divided'^;$34.Sl t^arriTe. at 97*109 ounces paid for, which will admittedly differ by small amount fro* actualVottncea^pald^or^Sii* liwentoiy of . 97.109 ounces is then valued at $34.00 or $3,301.71* In preparing estimated prpftt^and* Xoeej-jrt'ateiaent hr*'1-' ' Floyd found that less confusion resulted by consistently showing gold revenuetat^$34f,9ljpec<puDce'/:preferring to hold that figure constant and make the ounces paid for variable*-.'1 Ihe^practice," as above!4tated* *is used ' - on ir.var.tor7 data. 7..-v: / Sampling Ore Cost A`*. ^ ' Ore received at the Lead Plant is sailed before treatment for determination-of purchaae^coefc and fee control of metallur^* At July 31, 1948, there were 19,266 tens sampled're'in stock pile -against;whieh no ' saspling cost was carried. Mr* Floyd stated that (1) the original sailing bad served its purpose in pro- ' viding data from vdiich eettlensnt could be grade, (2) the ore would have to be resampled upon treatment, ;aai (3) the ore was worth less in the stock pile than in a bin or car due to cost of.reclaiming*'!-?or these reasons the original saspling cost was allowed to "wash through1* none being carried against inventory* Mr* Plcyd stated that he had received verbal approval of this practice from Mr. S* 0:Scrwezwine* ^ i k ;.': Following the practice of the Lead Plant, no sampling cost is carried in stock pile inventories of .the Sulphide Concentrator, .i ` ; BSCEIPTS - SULPHIDg COKCSHTBATOR PLANT ' % > Contracts with Park Utah Consolidated Mines Cone any , T*o contracts are in effect between the International Smelting Cospacy'id'the Park,.Utah Consolidated- - Mines Coapany. One is for the purchase of lead ores for smelting, and originated'June l^i;.1926^VThe other, for the purchase of lead-sine ores for the concentrator has been in effect-ieinclisPctoberv 31,^935, ;and ls a rather informal letter agreement* Perusal of the files containing.the c.cmtractrjani^corres'pondence bar v tween the two companies revealed that cost terms and conditions as agreed!upon>;are;'st-.present^being uaed^inV calculation of settlements. Subjects upon which no correspondence was foundlare.'asfollowar'^'u'.s<i - ; *>?' -i . - "* (1) The payment for sine content is adjusted for bullion freigbttrate.* Although the'original . agreement did not specify a base bullion rate the bas>ee rate prreessei^nltyly^*a] in^.used.lir$3.50.per ton. ' " * ' (2) Payment for gold under the lead smelting contrac.4t. 4is. fo^lOO^JmtJISlJo^iSj:p_e__i^_o_u_n_c'i-e`- .lir11 ,7.-w assay is ,,D1 ozs., per ton or over* No correspondence'was avi^labij^bu^g^eeoe:&'sto'luse<-$31.8i6' per ounce, '* * -- J -----------'* --* -*> :-*.- -J - * ' J v * *' * price is Differential At 90% paid for Add $19 as provided by contract As used (3) Lead smelting contract synopsis as used by the Ore^Settleaent^pipartaent^ooQtains' a^provision -v^- relative to sampling by the Utah Ore Saspling Cj^>auy. i_;Pro_viiion^lji^vab'.whe^vth_e.'tahipper,..alects v ^ to have its ore sampled by the Utah-Ore Saspling Co*,.;a~.erwdit.>OJ^gf^e^to<^B^p^pwedfgn treat-/**; v. ment charge. Otherwise an additional 50< par ton is- to' be s" J"' *>> and Refining Cospany for the saspling* Letter agreemant.joovying^hi%lyrpprro^vvijejlioQna^jwwaay^jrnaovt/Ta.avvauailacbulee*. -v Present practice of the Park Utah Cospany is to have itaor'e^saj^led1g?kf~a:fti*thue-,"T"U,,*t,a"hws- Pr"q~e jS--aap1 ling Com* pany and receive the 254 credit aa above stated* : .. (4) Original lead smelting contract provides for a *2& splitting':Uaiaddit.-;ooan copper* Splitting limiit being used is .3j 4. Remarks pertaining to splittinngg li.m....i.t.................. .. als Redu^tion Company ores are also here applicable* W^m GENERAL REMARKS r s c l if t c p ma t e r ia l - l e ad p l a n t tenthly Zinc Ponalty on Receipts of Ores from Combined Metals Reduction, Co* . ; f/V ` /.*' Contract provides that when line is not paid for all line in excess of 9$^shall he d^argsd at the rate of 25 per unit and at the yr.d of the calendar zed nth such lots, in which no zinc is paid for, shall he averaged and the average penalty applied theronj During July 19*8 settlement lot 5138 received from Com-'1 ' bined Metals Reduction Company, Wiilis Smith Lease, was settled for under-terms,of contract with that co&r ' pany* However, in making monthly adjustment on zinc penalty that lot was omitted*.- -Explanation of the Ore Settlement Department was that the contract specified purchases only from the Calumst,* Butterfield and '-'V-' Castleton Hines and the Piocbe and Bauer Flotation Concentrators and that: lot 5138 was not included in this group, Exclusion of this lot vras to the advantage of the International Smelting1 and Cos^any, less refund being required on previously excessive zinc penaltiea charged due to lot having only a.i*4 y<pg content. Acceptance of settlement by the Combined Petals Company would infer that' contract bed been inter-' preted correctly, ^' Adjustment to Base Treatment Charge due to Choree in Coke Price (/ Price of coke increased on July 16, 1948, requiring an addition to the base treatment charge as used, on settlements* Settlements represented by lot numbers 51*4, 5145, 5146, 5147 and 5154, ore for ifcich was ell reported saopisd after July 15, 1948, did not include increased treatment charge* Since the contract, specifies point of receipt no Earner Junction, audit of reports of ore received at that place indicated that all cars In the above lots wore received prior to July 16, 1948 and ndt subject to adjustment* Beceived dates riore not shown on settlements. Settlements as submitted were properly calculated* INVENTORIES - ISAD PLANT Cost to Finish Lead Bullion Inventories Statement is prepared monthly arriving at lead bullion production by adjusting deliveries to Omaha by inventories at .Tooele and In. transit to Omaha, Nebraska* Costs of refining lead and blsaith, freight to Omaha are also calculated for lead bullion produced. Inventory costs are estimated on basis of content as determined by Tooele assays. Refining and freight costs on inventories appearing on. the production statement have therefore not been incurred* Estimate of ,tbeee costs is, similar .to that prepared by the ; Great Falls Office of the Anaconda Copper Mining Conpany in determining .cost*to; finish* in process r*--J finery inventories. Assumption is that reserves are set up by theNew Xork.Offioe to adjust .the inventories to actual value, -i '/if 't1"--- .' Included in the same category as cost of refining lead and bismuth is.'oost of finishing lead in wells** The New York Office values the lead bullion inventories, included in' which.is the tonnage of molten lead in dressing kettles or "wells," Since the cost of dressing is taken into eocount" on Statement of Cost, treat ment, Production and Losses, thht statement should show actual oost of producing bullion* However, lead in kettles, although included in bullion inventory is not finished production's* it'requires further droaaing. The estimated dressing cost is deducted by the Tooele Office from the-valusi.of-in process inventories,, auto- * :/! matically raising cost of producing bullion, although the expenditure has'npt ;.yet .been made* It is'.assumed that the New York Office makes further account to counteract the increased *ost~as shown'by_.the tboele'state ment. / v *.-ff- VTeifhtB per Cubic Foot on Material in Storage Bins - Lead Platk heights per cubic foot are used in determining tonnage in bins afterlvolume of^bins hays bean detsrmined* These weights per cubic foot are reported by the Chief Testing Engiaeer,orin tome in*tanessvtbs Sampling Department obtains weights when sampling the material* All weights per cubic foot se used on/July 31, 1948, inventories were not identifiable on weigit tables* Explanation was that saterisls in `inventory do not always conform in woight and other characteristics with the sasples upon which original weights.were determined.. For example on November 1, 1943, weights were obtained on two classes of Bristol ore, one weighing 108 pounds, per cubic foot and the other 136 pounds per cubic foot. Recent receipts of Bristol-ore are not classified into different types, Height of a cubic foot from a car recently received was 104*9.pounds*;:'Tbe dark preparing the inventory statements used an estimated 110 pounds in arriving at inventory/of.-Bristol..ore in bine, assail as for other miscellaneous inventories* In instances where exact acale weightsare'obtainable for cot^ariaon with calculated weights a fair degree of accuracy was noted* The following July,;1948 data is illustratives Calculated^ . Weight -' Scale Weight V-O- Bin No, 5 - Forehearth Material Bin No. 39 - Bristol Ore (Weight of one lot assumed to equal inventory) Bin No, 40 - Miscellaneous Ore 300,680*^^;.;: 308,420' 138,500,,-. 1; 121,780 N,S9P -'lu,- $jV .. 209,920...., , : Conclusion io that the Metallurgical Accounting Department is doing the best'it can with the data avail-- able, PNYC 00012281 - :v: jp:5". >4 INVENTORIES - IEAD PUNT (Continued) Sintering Pleat Flue Dust GBJBRAL REMARKS This flue duet falls under the classification "Sintering Plant Cleanings,:etc.,* on theTwauthly ^tal- lurgical inventory report. Fixed tonnages as reported by the Research Department are .used, ly tha'iHstal-/ lurgical Accounting Department for inventory purposes. Sines there is.sosM "^ntMy i^nwirV^n: fn ^ t dry flue a fixed inventory does not represent as accurate an inventory .Mpaielble.'''AttJulj.31,ri948y this inventory was carried at 176,000 pounds. Inquiry was made of Hr. B. 0.1 IokHea/iTeetiag'lfcjgiflser,.regard-. ' ing accumulations of dust in this flue. He stated that in his calculations.he>vM';pre8eatlyvaccuHulating'> flue dust at the rate of 198 pounds per sintering machine day. Hr. Floyd.thought:thatTl7^'.pounds;per <iay ` would be conservative figure to use, as prior weights per machine day averaged from 100 pounds to over 200 pounds. Calculated on this basis since the last flue cleanup at November,-!, 1947/:' the.-inventory- at July; 31, 1948, would have been 247,800 pounds instead of 176,000 as used.-; Agreeasnt. was reaehedto'uee this - method on future inventories. At September 30, 1943, the inventory wfll be30I,280 pounds.' Abrupt change was noted in the main flue inventory froa January 31, 1948.to-February 29/1948, tbs former date showing 60,000 pounds and the latter date 600,000 pounds. Hr, Floyd .stated that:no doubt low >- recoveries prompted investigation of inventories to determine inaccurate tonnages and the flue in ventory was found to have been understated. Closer contact Aoulijbe kept with the Research:Department to avoid such abrupt inventory changes. The 600,000 pound inventory has since been cleaned up, the inventory at July 31, 1948, being 100,000 pounds. Suggestion is made that on the above mentioned flue, as well as on other flue system inventories, the Testing Department or other* la charge should submit signed state ments as to tonnages on hand. Falling under this classification is Blast Bag House .fume in-pits, reported by telephone to be 430,000 pounds on July 31, 1948. No report on this tonnage was available for audit. Inventory Changes to Arrive at Reasonable Recoveries Similar to practice used on metallurgical statements of the Montana Plants, the Metallurgical Accounting Department at the Tooele Plant arbitrarily changes metal content of inventories to arrive at reasonable re-T^ coveries* Explanation received was that assaying or inventorying was no doubt in error and to avoid stating unreasonable recoveries inventory changes were arbitrarily made. Ho cumulative';record of such changes was available, but changes mads on the July 31, 1948, inventories togetherwlth'>ffet.oa recovery-percentages are as follows: ''*T' Sintering Plant Sinter Inventory: Original As revised Decrease Cleanings - Preroast Inventory: Original As revised Decrease Reoovery Percentage: Cto Original Inventories On Decreased Inventories Blast Furnace Smelting Plant Spelss Inventory: Original As revised Decrease Lead - Lbs. Copper - Lbs. ,*, Silver - Ocs. Gold - 0*sT 270,144 260.594 10,450 25,371-. 12,159 6.079- ! 110.88* r.; 99.13* A;- *i-, ? ' . !eoo,8c3S^!^^w;4W.'ee-^; 635.067J0&!i5p54.351.31 :Vr,iaih.eti 754.543 *, 61.3*4 Recovery Percentage: Ch Original Inventories On Decreased Inventories 100.01* 100.69* 1" ' i87.**jt-.BS^ij6f--.-:.io.8<i:i- 107.13* ! V 106.0#''?- -- 9a.as* Hr. W. H. Floyd, Chief Clerk at the Tooele Plant, was inforaed.thit tha'HoQtana Plaatefof th* Anaconda Copper Mining Company were instructed by the New York Office that"arbitrary;inventory'changes for the purpen* of securing suitable recoveries were permissible except at June 30th and-.December-31st, when actual inveotorlaat and assays must be recorded. Mr. Floyd stated that then recoveries were out;.?*: 11m an investigation * usually made to ascertain under or overstatement of inventories and that:.tbe> statements as reported gave effect to corrections ifcich were necessary. ; . *'v\n& . PNYC 00012282 :K "rt' INVENTORIES - LEAD PLANT (Continued) Inventory Taking :.'i -v-y$ Clarkr from the Metallurgical Accounting Department 'at the first.`.ofileachfa storage bins for determination of inventory tonnage and sake obaarvatlon^of^alJ inventories ylV such as full and partial carloads, material on floor, etc. In BOBa^iastaacesfTOj^*arl.ion^oJ , reported by the Operating Department were at considerable variance'with>thoVe|aWlcuiated*J7^tha?iUTOUnting Department* Operating Department tonnages were used for comparative purp<^ee*oaJ^,ViceptV)din^clerIcal!force was incapable of arriving at reasonable tonnages* For example on Slag Treatmact^lant^tonaages tlte:;'uper*-'?i' intendent's inventories were accepted as he was more familiar with the location^and; approximate: tonnages^* A conscientious effort was made by the clerical staff to obtain accurate inventories. SKIPMBNTS - SLAG TKSATIHQ PUNT Weights used at Bartlesville, Oklahoma &V<* " : i> LvV.';^ : Bartlesville weights and moisture percentages are used in making settlementTs^for'deleaded `fume*received ' froa the Tooele Plant* In many instances the weight upon which freight was.'paidcwas disregarded, -with notation Met down for unloading" being written upon the assay and weight certificate*^Assumption'dslithattfume was dry and dusty and water added to prevent dusting loss. Typical exa^ples of weights`after wettingdown are as follows: -a, ... \. V. j Net Bartlesville Wta. . . *. :-V Tooele Wta .-I.' Car Numba^ Freight Weight i fist H2Q Dry Net H20 "Six Dry Weight' Difference ISO 46497 MOP 23200 113,760 103*920 117,220 3.05 113,640 107,060 2.50 106,160 115,840 0*00 115,840. 105,660 . 0*28. ; 109,360 . 2,200 ,200 It nay be noted that some loss apparently takes place between Tooele and Bartlesville 'aeVthe;'co^>arion. indicates* Of interest is also the loss in dry weight between Tooele^'weights and;Bartlesville weighta;after wetting down, -*w ' -- - * - *----- ** J---------1 -- --* -* ----------*--*--------. -.Tx :--a* loss in dry i meat a * The INVENTORIES - SLAP TREATING PLANT Consignment Stocks of leaded Zinc Oxide J *._ . _t __ _ - ..____uu'______n j. _ _______i___ V pany, Dos Angeles, California during August leaving a balance of 67,100 pounds inventory, pany relative to this inventory, inquiry information on file was letter of March 9 firming possession at December 31 quantity is presently being carried SHIPMENTS - SUUHIDS CONCENTRATOR Zinc Concentrates to Anaconda and Great Falls. Montana ............ ... ------------------------------------------------------ ---------- : :r:; Agreement of January 1, 1945, providir^; for sale of concentrates^l^e^Anaqpnda^pp.axjMlninglCo^anyX-^Sij* does not specify splitting Units or provide for umpire assiys.'^.Perus'al^^^setlt^eawzita'^firom'Jaaaary^-1947,'>>>'v through July. 1948, disclosed very doe# agreement on zinc aasar^ major^eei^lem^j^ffactor^Widest differencs between the coopanies was .6$ and an average of the two assays waa^iised,_ .... .-vf^sfeswu Since correspondence is on file relative to splitting limits'a?bliut2h fume.ytp^Qreat^Fidlsjaad. r bismuth residue froa Anaconda question arises as to desirability, o^cstablish tsJfor. alocloonceatretes* '31: As the transaction is between the parent coop any and a subsidiary,f_and.]sinc*J sent, no splitting limits may be desired* Establishment of limits;jtould,** eediecretipn^ffthermjnag*^^' r.Jt cants of toe respective companies. . CONCLUSION Audit of the metallurgical records of the Tooele Plant disclosed-no errorajormiecrepanciaa^oftmaJo b in-'*' ."<4''. portanca except for divergence from contract terms on as saying <aad splittlng^Llm^t^tM^above|''deacribed.^All 4 \ office-records were neat and orderly and an exceptional de^eexof:..a<XOTacy^waiiS^tjdl^thHi^calVidgtion?ofr^:;,vVc`~>'-:-^^ settlamants by the Ore Purchasin' "----- *""* -x ** - - ~ the personnel of the Metallurgic calved from all departments PNYC 00012283 ri'M ,4i INTERNATIONAL s mel t in g AND REFINIK? COlPi TCCSL2 PLANT - TOCSIg^UTAH ^ REPORT ON AUDIT OF THE COPPER PLANT, I2AD PLANT, SLAG 1RE1MHT-PLANT AKD'iSCIPHII*'0 PIANT OF THE INTSINATICKAI SMELTING AND REFINING COtf>ANr TOOEl, UTAHfTCB^JULT MONTH OF JULT 1943 Audit of the Tooele Plant of the International Smelting and Refining Coapany eabncea^eouiiinatlon 'of^-^^vK records for the month of July 1943 to the extent outlined in "Books and Records .Checked**. No..!pbserjftioa':!of July 31, 1943, inventories w as made, but methods of inventorying were observed at'Augusti31st'and'September 30th is48. ! 1 :*-. Audit covered all classes of materiel received and shipped and ell(,inventoiies:at July 3X',J?1948j!'as.' `y included in the July 1943 Tooele Plant Metallurgical Report* 'kjj- svi%' ` <> :-^.T.:}&!i;#>y-\ .. Lead Plant ores from four shippers out of thirty two from ^jom ores sere received were-audited fa* weight and metal content. Ores from those four shippers represented 62$ of total weight received during July 1943, About 25$ of the settlements covering purchases of ore from the four shippers were audited in detail for atiaerence to contract terms, footings and extensions, ... ] . Sulphide Concentrator ores from the Park Utah Consolidated Mines Coipany. and leasers of! the National' : Tunnel and Mines Company were audited for weight and aetalcontent. Ores from those companies represented.'?^ of total wei^it received during July 1948, Fifty percent of the Park Utah.settlements and ell':,the Rational': Tunnel settlements were audited in detail for adherence to contract terms, footings..end.' extensions*!^ *. :... Wherever possible, original sources of information such as scale tickets, assay certificates, bills of lading and plant reports were used in the audit* The report includes date on. the physical and accounting features connected with receipt of material and shipments of products, determination of inventories,'.errora;and discrepancies and general remarks concerning the audit* ; The report is divided as follows: Synopsis of Plarit Operation Copper Plant Lead Plant V ` - -;r ' Samrsaf-73w ,to 4 inclusive `Inclusive: -V ! 1 Slag Treatment Plait. Sulphide Concentrator Plant Errors and Discrepancies General Remarks and Conclusion See paga following for detailed index* mm ^..ifs* s jSr- .'-rr. iSJfe il-Atti*'* 3ft .i)j rid "' ' >4 *?;: *?:'. S.kr