IC 9156 Domestic Secondary Lead Industry: Production And Regulatory Compliance Costs

The Bureau of Mines conducted a study of production costs for the secondary lead industry and determined costs for present, pending, and proposed environmental legislation. Operating costs for smelters by capacity groups range from 16.8 to 19.6 ¢!lb of refined lead. Present regulatory compliance costs for these groups range from 2.2 to 2.4 ¢!lb. Pending compliance costs could add 3.5 ¢!lb of refined lead, and proposed regulations could add another 1.3 ¢!lb. The individual capital costs necessary to comply with pending environmental regulations are estimated to be $1.8 million for small smelters and $10.4 million for large smelters. Proposed regulations could require additional expenditures from $1.9 million for small smelters to $4.9 million for large smelters. These cost estimates, based on average 1985 dollars, indicate that pending and proposed legislation could add significantly to capital and operating costs of the secondary lead industry. These regulatory compliance costs may result in a loss of up to 40 pet of secondary lead production capacity.