REMOVE THE GUESSWORK:
UNDERSTANDING THE REFINING PROCESS
For the Best Value, Stick to Well-Established
Alloy Companies
The process of refining dental scrap may seem mysterious to some
lab technicians. Every so often, metal scrap and dust are collected
and shipped off to a refiner to face an uncertain outcome. A short
time later, you receive a gold coin or a check in return.
There is no magic or alchemy involved. Instead, there is a painstaking
process - part science, part art - involved in transforming your scrap
into an accurate settlement. The science can be learned from any textbook,
but correctly applying science and art in the correct measure can
be learned only through years of experience.
Collecting
Dental lab scrap comes in many different shapes and forms
- some you may not have considered. Scrap is generally classified
into the following major categories: Solid metallics, semi-metallics,
higher-grade combustibles/sweeps, lower-grade combustibles/sweeps
and low-grade refractory. These are further described below, according
to the metallic versus non-metallic composition of their contents:
Solid Metallics
• Crowns & bridges, facings, castings, sprues, buttons,
snips, wire, flashing, foil and even old ingots and damaged bullion
coins – all virtually 100% solid metal, except for any incidental
sweeps, facings and natural teeth that find their way into this category.
After-process metal recoveries are usually 85-95%.
Semi-Metallics
• Bits of metal and abrasive materials remaining after the finishing
process, which primarily consist of grindings and filings. Care should
be taken here to remove any magnetic contamination with a magnet prior
to shipment and after-process metal recovery is typically less than
90%.
Higher-grade Combustibles/Sweeps
• Residues remaining after polishing, which are commonly referred
to as Polishing Dust and Vacuum bags containing more valuable (“richer”)
sweeps. After-process metal recovery here is typically less than
75%.
Lower-grade Combustibles/Sweeps
• Shop dust, floor and rug sweepings, toweling, papers,
air filters, low-grade vacuum bags and occasionally even carpeting.
After-process metal recovery here is typically well below 50% and
can often times fall to as low at 5-15%.
Low-grade Refractory
• Investment, crucibles, graphite parts and aluminum
oxide suspected of being contaminated with trace precious metals.
After process metal recoveries here are highly unpredictable, but
generally below 5%.
In general, metallics and semi-metallics will
have higher values than the other categories mentioned above and
will invariably have a higher recovery or “yield” (equates
to more alloy recovered “after-processing” as a percentage
of the original weight received) than combustibles, sweeps and refractory.
The combustibles and sweeps, for their part, are prone to be mixed
with other non-metallics, including rouge, polishing media, floor
dust, towels, filters, etc., which have no precious metal content
in and of themselves, but which are impregnated or co-mingled with
the waste precious metal alloys.
Solid metallic scrap from a casting operation or rejects from the
lab’s quality control process are relatively easy to collect.
Semi-metallics and higher grade sweeps, such as grindings and polishings,
can be collected with any vacuum system that is equipped with filters
or waste storage receptacles. Because the majority of your value tends
to be in these two or three categories, it is incumbent that these
materials are routinely collected, accounted for and stored securely
until the materials are dispatched for refining. Do not expose yourself
to internal pilferage; collect and secure your valuable scrap to the
best of your abilities.
Larger scrap generators should endeavor to separate solid metallics
from grindings, grindings from polishing, etc. In doing so, you
will have a better idea of what your refiner is recovering by material
category over time. Since minimum lot charges are usually only applied
to very small lots failing to generate a minimum refining fee, larger
shipments will avoid this penalty and still provide valuable historical
settlement information that can be utilized for comparisons. For
all shippers, it is very important that you do not mix mercury-bearing
amalgam or any base metal alloys containing nickel beryllium with
the rest of your scrap shipment. Mercury and nickel-beryllium alloys
are hazardous to your refiner’s technicians, in the event
that these elements vaporize during processing. They should not
be shipped without proper hazardous materials documentation and
then only to a legitimate reclamation company.
Always remember to legibly label your scrap lot with your name, address,
phone number, and any special instructions regarding your scrap. Your
scrap is money! Each year, we receive several lots without proper
identification, which forces us to postpone processing until the shipper
can be properly located and identified.
Sampling-Assaying
Sampling and assaying are the most important aspects of the refining
process, bar none, because they form the basis of your settlement.
Refiners “sample” each lot under tight controls in order
to preserve economies of scale and to provide customers with a faster
turnaround. The ultimate goal is to homogenize your lot in such a
way as to obtain a sample that is truly representative of the lot
from which it was extracted.
Solids and semi-solids can be readily melted into a homogeneous form
and at Jensen we easily pin sample these materials thanks to our electric
induction furnace capabilities. However, lots containing non-metallic
or combustible content or those posing a bio-hazard due to the presence
of tissue and teeth typically undergo additional processes, which
include incineration and smelting. Incineration reduces both the non-metallic
bulk of the lot and simultaneously eliminates any downstream handling
risks. Once incinerated, the residual ash will either be routed to
a pulverization and blending step, which reduces the lot into a homogeneous
powder at a minimum or to a foundry where the ash will be mixed with
flux and smelted, often multiple times, and cast into a intermediate
production ingot.
A representative sample allows for the most accurate assessment of
the contents during assaying. After the sampling process has been
completed, the laboratory must maintain this same precision during
assaying, in which a combination of time-honored labor intensive
methods with rather sophisticated automated instrumentation are
used to arrive at the precious metal determinations.
The advent of so many new dental alloys on the market has considerably
complicated the sampling and assaying process. Many alloys embrace
a wide range of precious and non-precious metal contents and therefore
each lot presents new challenge to the refiner. In addition to gold,
palladium, platinum and silver, we also contend with a host of base
metals, including nickel, chrome, iron, monel, molybdenum, tin and
tungsten, which find their way into scrap lots from time to time
by simple cross-contamination.
As these alloys add new complexity to the dental refining industry,
the activities involved in the sampling and assaying processes demand
careful attention. The care with which sampling and assaying are
performed is very much dependent upon the individual performing
the task. Ultimately it is the precision with which these tasks
are completed that determines the accuracy of your settlement.
To begin the sampling process for metallics, your lot is placed in
a crucible and melted. When the homogenized metal reaches a given
temperature above its molten point, a sample is taken via vacuum pin
tube. The metal remaining in the crucible is cast into a bar. At Jensen,
both the sample and the bar are then weighed and then we endeavor
to hold both within reason until the customer approves the settlement,
which is an accommodation that is somewhat unique for the industry.
There are several processes that can be used to determine the percentage
of precious metals in your lot. Among the available analytical choices
are fire and gravimetric assay, X-ray fluorescence, atomic absorption
and ICP optical emission spectrometry. At Jensen, we use an industry-standard
fire assay for gold, as it is still considered the most accurate
method to date, however we also employ other corroborating methods
for determining the remaining payable precious metals. We then run
blind samples using two independent technicians, who are not at
liberty to exchange information with each other. In the event that
the assays fall outside lab tolerances, they are either repeated,
or in cases of demonstrable segregation, the material is re-sampled
in its entirety and then re-assayed once again.
The fire assay begins by combining your sample with pure silver and
pure lead in a process called cupelling. The silver/lead sample combination
is placed in a cupel (a small bone-ash bowl) where it is heated in
a temperature-controlled furnace until the non-precious metals are
absorbed, leaving a small button of precious metal. This button is
combined with nitric acid and de-ionized water and heated. The acid
slowly dissolves all metals, except gold. This process is called parting.
Any other precious metals present can be selectively precipitated
from the solution or subsequently analyzed in mass using either XRF
or ICP instrumentation.
This detailed methodology is designed to protect both your vital
interests and those of your refiner by creating the means to arrive
at the most accurate and fair outcome as possible. While the system
is relatively foolproof, there is still the issue of finding the
right refiner for your needs.
Choosing A Good Refiner
Finding a refiner with whom you feel comfortable - someone who
is honest, reliable and creditworthy - is paramount. While no checklist
can verify individual integrity, there are some qualities and features
you can look for to separate the wheat from the chaff.
Many refiners also manufacture and sell dental casting alloys.
Refiners with alloy manufacturing facilities generally have all
the technologies to process your scrap lot in house, as well as
the metallurgical expertise (in the form of full-time metallurgists,
chemists and technicians) to do the job correctly. These firms understand
the material you are sending in, because they work with it everyday.
Check to see if your refiner is in the alloy business. Those that
are have a host of quality and audit requirements that they are
mandated to supply to the FDA, the International Organization for
Standardization (ISO), and/or MDD/EU.
As a group, they are required - by virtue of their medical device
credentials - to painstakingly maintain their production, quality
control and systems standards. Since these alloy companies would
like you to purchase alloys from them, they have an equally compelling
interest in satisfying your expectations and providing the best
possible refining yields. Furthermore, Jensen is very flexible with
regards to how alloy customers, with A/R balances, use their refining
settlements. Provided that customers have not repeatedly abused
their credit provisions or are not extensively past due, there are
no restrictions against taking back a settlement check. If the refiner
is not affiliated with an FDA and ISO-approved organization, you
should proactively seek to assess their qualifications by other
means.
Remember, when you are sending scrap to a refiner, you are also making
an important credit decision. Above all else, you want to ensure
that you are dealing with a refining organization that has strong
financial credentials, where your material is not at risk. Here
are just few helpful ideas:
• Larger shippers should consider accessing Dunn & Bradstreet,
the Better Business Bureau or Secretary of State to determine whether
the refiner is rated as being in good standing.
• Request a customer reference or two, so that you can gauge
the types of labs that the refiner services.
• Prior to shipping your scrap, take the time to contact
any new refining vendor to discuss and confirm their published processing
rates and terms and do not ship without this confirmation. Ask them
to spell out all aspects of the charges including their published
(yields) payable returns; their processing and analytical fees;
whether they discount the payable market prices and their refining
fees or percentages, etc. Request a copy of a sample settlement
in order to review its format and determine whether the information
that is provided is sufficient.
• Determine how any disputes are handled and resolved. Do you
have recourse to obtain your material back, if you contest the outcome?
• Ask for a brochure outlining their capabilities to make
sure that they have the credentials to handle your valuables. Some
refiners and independent brokers can attend trade shows, have websites
and produce ads, but still run on a shoe-string. What checks and
balances do they have in place to insure that errors are minimized
and that there is demonstrated professionalism throughout the organization?
• Each time your scrap moves at the refinery, there is a potential
for loss from theft or spillage. What security measures are taken
to protect your assets? Tight internal security, like documented weigh-ins
at each stage of a receiving/sampling process, video camera monitoring,
locked storage and limited access areas can help prevent loss and
ensure a fair settlement. Also, ask the refiner if they adhere to
federal EPA and state environmental agency regulations. If they are
less than vigilant in this area, it is possible that you might be
held liable.
Personal Attention
Your refiner should contact you when your lot is received to confirm
its safe arrival. They should provide you with literature about
their company and their methodology, detailed shipping and rate
information and free shipping containers. Ideally, your refiner
should make a technical person available to discuss any questions
you might have about your particular lot. Is the refining manager,
general manager, or other senior management personnel available
to help you when a problem arises?
Performed properly, a scrap-refining job takes time. If your refiner
settles your lot overnight or on the spot, chances are that they
are not sampling your scrap to the degree that is required, but
estimating the value of your lot (and probably not in your favor).
If your refiner takes a month to turn your metallics and high grade
scrap around, they are inefficient and probably costing you money.
A reasonable time expectation to process and settle your scrap is
10 to 15 days from its arrival, unless you ship an unusually large
low-grade lot requiring additional incineration or processing. When
you settle, a good refiner should offer you the option of receiving
your payment in gold coin, alloy, or check and provide you with
a detailed report. We would dissuade you from accepting a cash settlement(1)
due to the newly enacted U.S. Patriot Act.
This detailed report, commonly referred to as a Settlement, should
include a comparison of your original receiving weight to the after-processed
or recovered weight and clearly demonstrate the payable results
for each metal, as well as the refining fees and all other applicable
charges. Merely showing you the net paid metals at their applied
market rates, in absence of other details, is insufficient and leaves
you guessing as to whether your process losses were acceptable.
It also prevents you from making intelligent historical comparisons
from one lot to the next or even contrasting different lots between
different refiners.
Lastly, in the unlikely event that you do contest the outcome, the
refiner should also give you satisfaction in knowing that you have
a few different avenues of recourse. This recourse could include
requesting a simple re-assay, requesting that the material be totally
re-sampled and then re-assayed, or as a last resort, obtaining the
return of your material, slag and all prior samples - even though
the material has been converted to a homogenous ingot or powder
form.
Your refining relationship should be an open book. We hope these
tips act as a useful guide in choosing the best refiner for your
business and we hope your next refining experience is a pleasant
one.
For more information about how Jensen could play a contributing
role to your successful scrap program, please call your Jensen Account
Manager at 800-243-2000. We appreciate your consideration.
* * * * *
(1) Postscript: A Note About Cash
Settlements
With the passage of the U.S. Patriot Act, cash payments – which
had been a traditional form of payment in the dental industry - have
come under heightened scrutiny. Cash payments are no longer under
the radar screen of the U.S. government. A refining company is now
considered a precious metal dealer, under the letter of the Act, and
is now required to maintain adequate records, have a compliance officer
and full fledged Anti-Money Laundering program. As such…..the
US Patriot Act (of 2001), Section 5318(h) requires a “dealer
in precious metals” to institute an effective Anti-Money Laundering
(AML) Program, designed to best detect and deter money laundering
and terrorist financing from abuse of our industry. The US Treasury
deems you to be a “dealer in precious metals” and have
a AML Program IF: (a) Your are in the business of purchasing and selling
precious metals of .500 fineness purity or higher; (b) Your purchase
and sell more than $50,000 per annum of those precious metals; (c)
You are not a qualified retail seller buying almost exclusively from
“dealers;” and (d) You are not a manufacturer of fabricated
goods with minor precious metal content. By this definition, all U.S.
Refining companies fall into the “dealer’s definition”
and will be required to put a AML Program into place and to monitor
all suspect cash transitions, as well as the parties associated with
those transactions.