LETTERS Scrap iron transportation
Dear Sir: I greatly enjoyed reading the article: “Transportation: bugaboo of scrap iron recycling” (€S&T, May 1973, pp 408-11). However, it raised certain questions in my mind regarding the basis of the various cost comparisons. I t appears to me the real basis of the cost comparisons should be the tons of processable iron, delivered to the mill door, and not just the tons of total material moved. For example, we find that, on the average, an ore containing 51% iron is considered a fairly good iron ore. On the other hand, one ton of good scrap contains nearly one ton of usable iron (or “iron units” as it is referred to in the article). Further, the ton of iron recovered from the ore should, in a realistic comparison, also bear a proportionate share of mining, processing, and land rehabilitation costs, in addition to the shipping costs of the raw ore.
Under these conditions, the comparisons of the actual resources ”use” costs seem to be somewhat different. To keep the figures simple, let us say it takes two tons of ore to give one ton of processable iron. We then find the shipping costs of 50 tons of iron produced from raw ore becomes $164 instead of the $82 used in the article for raw ore. Let us then say mine stripping costs average at least $2.00 per ton of ore. This gives us $4.00 per ton of actual iron recovered or $200 for the 50-ton example used in the article. And finally, let us consider land rehabilitation costs of the strip mining operation. I t would not be unreasonable, under present EPA standards in most states, to consider this to average close to $1200 per acre for this cost. Or to put it another way, an average environmental protection cost of at least $1.00 per ton of usable iron recovered. So we then have another $50 per 50 tons of iron to add on the
cost when the iron is taken from raw ore. On the other hand, we find that 50 tons of good scrap has a shipping cost of $206. This may provide, on the average, 50 tons of usable iron. If we assume an average gathering cost of $40 per ton of scrap we have a total cost of $406 per 50 tons of usable iron delivered at the steel mill. At this point we find that the 50 tons of required iron, if taken from raw ore, has costs of $414 at the mill door. Or to summarize for the 50-ton unit involved: Shipping costs Mining costs Environmental costs
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OCEANOGRAPHY INTERNATIONAL Office College Station, Texas 846-7721 Box2980
77840
Circle NO. 40 on Readers’ Service Card
772
Environmental Science & Technology
(713)
Scrap
$206
200
200
(av price, $40/ton)
“Dyou know what your BODS been up to this week?” “ofcourse” “Ohyeah? So where was it on Wednesday?”
Post
Ore
$164
Totals
50 -
__
$414
$406
(Continued on page 7 7 4 )
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Volume 7, Number 9, September 1973
773
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Environmental Science & Technology
It seems to me that when due consideration is taken of some more of the factors involved in the costs of processable iron, that recovered from scrap, may well, in many cases, be somewhat less than that of iron recovered from raw ore, freight rates not withstanding-although it would appear that lowering freight rates on scrap could well be an effective means used to provide additional incentive for the increased use of scrap, particularly in view of the effect of the depletion allowance which I have not included. The inclusion of, this allowance would make the iron from raw ore a bit cheaper at the mill door, in all probability, depending on scrap price variations. Nor can there be much question but that the freight rate structure is discriminatory by the ICC's own definition of the word. However, one does wonder if, perhaps, the apparent failure to consider all the actual costs of usable "iron units" at the mill door might not be another of the contributing factors to the fact that the Japanese seem to be able to buy scrap in the United States, pay going freight rates, ship it to Japan, process it, ship back finished products, and still make money on the product. Maybe they have discovered an "iron mine" in our own backyard that we did not realize existed and is not due entirely to labor cost differentials. C. A. Caswell, President Environmental Audit Corp. Pittsburgh, Pa. 15232 Sewer line infiltration Dear Sir: I thought the article ( E S & T . July 1973, p 586) was excellent. However, I would like to point out that our company is also in this business and has been since the early 50's. We do no inspection but we do manufacture equipment for our own use. In 1952, we repaired an old and deteriorated sewer line for West Palm Beach, Fla. During the mid-50's, the Centriline Division of Raymond Int. started the development of a television camera and, independently of the other companies in the field, developed a packer system as well as television inspection systems. After doing several jobs, however, we found we were "before our time." The rash of people entering the business with off-the-shelf television cameras and inadequately experienced personnel supported our decision to soft-pedal this end of our business. We do, however, continue to do quite a few sewer rehabilitation jobs. These are not the run-of-themill type jobs discussed in your article, however, and would probably not qualify for inclusion unless there were a section on Specialist of the Specialties. Charles M. Aiken Raymond International Inc. Houston, Tex. 77027