U.S. smelter acid sales and revenues: The implications of adopting European acid trade and marketing practices

Abstract

Sulphuric acid obtained as a byproduct of non-ferrous metal ore smelting is often the mandatory result of stringent environmental policies adopted in the industrialized countries to limit sulphur dioxide emissions. For the primary copper industry in the southwestern U.S., improvement of sulphuric acid marketing and distribution economies is a critical factor. In this thesis, through a comparison of the European and U.S. sulphuric acid market structure and organization, both the opportunity and the implications of adopting European acid marketing practices are discussed. A more centralized system of acid distribution, as in the European model, if applied to the U.S. smelter acid market, proves to be potentially beneficial for net revenue enhancement. A rationalization of the logistic aspects could substantially reduce acid transportation costs, allow repayment of at least average variable costs of production and improve southwestern smelter acid competitiveness in the domestic markets.