Glossary
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A
Anode
Copper anodes are typically 99% pure and are used as the positive element in electrolytic refining.
B
Backwardation
The situation when the cash or spot price of a metal is higher than its forward price. A “backwardation” occurs when a tight nearby situation exists in a metal, and the market is willing to pay a higher price to get the metal immediately. In a normal supply situation, the forward price is higher than the cash or spot price of the metal, as it takes into account the cost of financing, insuring and storing the metal. Such a situation is described as “contango”.
Billets
Round shapes produced from vertical casting for the subsequent transformation by extrusion into rods, bars, sections and mainly tubes.
Blister
98% pure copper – product of smelting and converting of concentrates.
By-product
A secondary or incidental product of a manufacturing process.
C
Cakes
Rectangular bars produced in the vertical copper casting process with variable lengths and a weight of up to 25 tonnes. Cakes are the starting material in rolling mills for the production of copper sheet, plate and foil.
Cathode
Metal deposited as result of electrolytic refining. Cathodes are the final result of the refining process for zinc and copper and are of a purity level of over 99.99%. They are the reference commodity on the world copper market and are priced on metals exchanges such as the LME (UK) and COMEX (USA).
Comex
New York Commodity Exchange.
Concentrates
The result of the concentration of valuable metals contained in ore and used as input material for smelting or leaching. Concentrates typically contain 30-60% of metal while ores only contain a few percent of metal at best.
Contimelt
A continuous melting and casting installation for the production of anodes, with blister and scraps as input. This proprietary process was developed jointly by Cumerio and Norddeutsche Affinerie.
Continuous cast wire rod
Semi-finished product which is the starting product for further processing into wire. Wire rod diameters range from 8 to 25 mm; the brand name of Cumerio’s wirerod is Contirod. Delivered in coils of 3-5 tonnes.
E
Electrolyte
A chemical compound (salt, acid, or base) that is dissociated into ions in solid, liquid or dissolved form.
Electrorefining
An electrolytic process in which, under the action of an electric current, an anode made of an impure metal dissolves in the electrolyte with the simultaneous deposition of a corresponding amount of the purified metal on the cathode. The impurities that are more noble than the metal being refined are not dissolved at the anode and are collected as what is termed anode slimes. The less noble impurities are dissolved but do not deposit on the cathode; periodically, they must be removed from the solution by bleeding.
EVA
Economic Value Added. It is the result of the following calculation : Operating result (EBIT) - (Average Cost of Capital (WACC) * Average Capital Employed).
F
FSD
Full Size Deposit, a significant breakthrough developed by Mount Isa (Australia) to decrease the copper refinery costs.
H
Hedging
A transaction entered into in order to offset the impact of adverse price movements of an asset (e.g. a metal or a currency).
L
LME
London Metal Exchange. The largest non-ferrous metal exchange in the world.
N
Nuggets (copper)
Chopped copper rod used mainly for plating.
P
Processing / transformation premiums
Premium at which copper transforming companies sell their semi-finished products.
S
Scrap
Materials for recycling.
Semis
Collective name for semi-finished copper products such as rod, cakes and billets.
Shapes (copper)
Copper products or formats produced from cathodes by casting: billets, cakes and wire rod.
Slag
A non-metallic residue resulting from the smelting of ore or metal. Lighter slag rises to the surface of molten metal, from where it is removed and often used in basic materials such as aggregate for concrete.
Smelter
A part of a works or company, in which crude metal or bullion are recovered, is called a smelter. Typical products are lead bullion, blister and black copper and red gun metal (red brass).
Sulphuric acid
Sulphur dioxide arises during the copper production process and is processed by Cumerio into sulphuric acid in order to reduce emissions thereof. As a result, sulphuric acid is a by-product of the copper production process.
T
Tankhouse
Facility for electrolytic refining of metal.
Treatment and Refining Charges (TC&RCs)
The fees paid by a miner to a smelter/refiner to process concentrates into refined metals.