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ArticleName Peculiarities and importance of price formation in non-ferrous metallurgy (on example of copper concentrate production)
DOI 10.17580/tsm.2016.08.01
ArticleAuthor Kelchevskaya N. R., Altushkin I. A., Korol Yu. A., Bondarenko N. S.

Ural Federal University named after the first President of Russia B. N. Yeltsin, Ekaterinburg, Russia:

N. R. Kelchevskaya, Head of a Chair of Metallurgical and Mechanical Engineering Enterprise Economy and Management, e-mail:

JSC “Russian Copper Company”, Ekaterinburg, Russia:
I. A. Altushkin, Head of a Bord of Directors
Yu. A. Korol, Vice-president

JSC “Aleksandrinsk Mining Company”, Chelyabinsk Oblast, Russia:
N. S. Bondarenko, Chief Executive Officer


The issues of price formation for non-ferrous raw materials and products in Russia became urgent for the enterprises after transition to market economy. Product sales on global markets required the company accounting of the international experience. Price formation in non-ferrous metals industry based on formulas allows suppliers and buyers of metal products to value their competitiveness in the world market. Price formulas consist of different components such as: cost of metallurgical processing — TC (treatment charge), cost of refining — RC (refining charge), discounts for payable metals contents, penalties for impurities. Price formulas assist in measuring of production efficiency from technological and economical point of view. Using these criteria for non-ferrous products, the price formation makes possible not only the accounting of the technical level of the current production, but also the formation of the strategic programs of development and enterprise improvement. Formula price formation is illustrated by a detailed calculation of a value of one ton of copper concentrate.

keywords Value of copper concentrate, price formula, metallurgical processing, refining, mining, flotation, payable metals content, price of copper, gold and silver, penalties for impurities, metals recovery rate

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