Smelters are Struggling Even as Copper Prices Soar
Refined copper has enjoyed record prices, but the facilities that smelt the concentrate are struggling to stay afloat because processing fees have tanked to extremely low levels. Processors now have to depend on the by-products of the refining process in order to keep their doors open. Previously, smelters obtained revenue from the processing fees they charged, and then augmented that revenue with the income they got from other products that were contained within the copper they processed. Those other products include silver, sulfuric acid and gold. These byproducts are now the financial lifeline for smelters after processing fees collapsed. How…