Behr Sticks With a Golden Opportunity

While many refiners have stayed clear of refining low-grade precious-metal-containing scrap, Behr Precious Metals has been reclaiming the gold, silver, and platinum from these materials for nearly two decades.

Behr Precious Metals, Inc., Rockford, Illinois, however, has used these obstacles to its advantage, carving itself a niche in this sparsely populated business. According to Ronald Rosenson, president, when the operation was begun in 1962, "there was a big void in this area. Many of the old-line firms in the precious-metal-recovery industry were only interested in jewelry scrap, karat gold, thermocouple wire, and other high-grade precious-metal-bearing scrap." But Rosenson saw that much of the precious-metal-bearing scrap available, which included gold- and silver-plated circuit boards and plating solutions, was being bypassed by the larger refiners, presenting an opportunity that begged to be taken.

Going after these low-grade materials, he says, "proved to be an extremely good business for us-up to the 1980s." In the late 1970s and early 1980s, he notes, overall inflation, compounded by the Hunt brothers' actions in driving up silver prices, forced precious metal prices sky-high. As a result, one of the major sources of precious-metal-containing materials, the electronics industry, began to use alternate materials and to miniaturize in an effort to minimize precious metal use.

Today, Rosenson reports, that trend toward less precious metal use continues in virtually every industry employing those metals. For example, he notes, the silver content in X-ray film is currently half of what it was in the 1960s. The same may be said about plated items. According to Rosenson, in these goods one is apt to find more nickel content than gold.

Still, Behr Precious Metals has stuck with this diminishing scrap source, and has even grown while precious metal use has declined. One example of this can be found in the company's physical size. In 1962 it occupied less than 5,000 square feet of space; today it encompasses more than 100,000 square feet.

Preparing for Refining

The first stop for scrap going to Behr Precious Metals's processing and refining operation is a converted furniture factory with two truck-unloading docks and a rail-unloading area. Incoming scrap materials are immediately weighed on one of three direct-reading scales that measure to the 1/100 of a pound. This information is sent to an adjacent converted research lab that now is dedicated strictly to environmental files and record keeping, where it will be maintained for 10 years. Tracking of licensing; permits; communications with local, state, and federal environmental officials; and material safety data sheets received from customers is handled here, as well.

What happens from there depends on the type of material to be refined. The first stop for precious-metal-bearing liquid solutions--which include spent potassium cyanide, sodium cyanide, nitric acid, and sulfuric acid--is a large wet laboratory and adjacent fire assay room. According to Ron Couper, chief chemist, solution samples are sent for both wet and fire analyses. "Duplication," he says, "ensures accuracy." First the solution samples are assayed for precious metals using a cupel. Then they're sent to the newest innovation in electric fire assay furnaces for scarification. The furnace's intense heat isolates the precious metals from the rest of the wet samples. The remaining tiny beads of precious metals are analyzed and weighed against the original sample; the resulting figure represents the sample's precious metal content.

Following assay, precious-metal-containing solutions, most of which are packaged in 55-gallon drums weighing up to 750 pounds each, are poured into large holding tanks for chemical refining. This process involves precipitating gold and silver from the solutions. The silver recovered from silver-bearing solutions is then electrolytically refined, resulting in crystallized material that typically assays more than 99.9 percent silver.

Extracting Value

The enormous variety of precious-metal-containing scrap Behr Precious Metals handles includes circuit boards, precious-metal-plated electronic components, and X-ray film. Many of these materials are analyzed using a Perk and Elmer atomic absorption spectrophotometer, which enables measurement of minute quantities of platinum group metals. Rosenson finds this sensitive equipment particularly useful in analyzing circuit boards, which he says can contain as little as 0.01 percent to 0.03 percent platinum or palladium. The spectrophotometer also is employed in analyzing some of the incoming spent solutions.

If any of this scrap contains plastic components--which must be burned off prior to refining--it begins the precious-metal-recovery process in a thermal reduction furnace that handles approximately 1,500 pounds per day, six days a week.

According to Rosenson, the resultant precious-metal-bearing ash and other incoming scrap are then fed into one of six gas-fired crucible furnaces for refining. As an adjunct to precious metal refining the same equipment and technology are employed in recovering tin and lead solder from drosses and pastes. Nickel, iron, aluminum, and other materials are slagged off.

The resultant product is a copper-based bullion that is poured into 60- to 70-pound ingots. These ingots, Rosenson notes, contain anywhere from 65 percent to 95 percent copper; precious metals make up most of the balance. The ingots are shipped abroad for further recovery of their precious metal content and settlement to Behr Precious Metals.

Reducing Risks

The entire process--from receiving scrap materials to final settlement to Behr--can take months. Behr's customers, however, are generally paid within 30 days. To help bridge that time gap, Behr is an active hedger on the Commodity Exchange as well as the London Metal Exchange. Given the volatile nature of commodities in general, and precious metals in particular, Rosenson explains, the exchanges represent a prudent means to reduce market exposure and risk.

Although Behr purchases, refines, and exports large quantities of precious-metal-containing materials, security measures are not particularly noticeable. The fact that most of the scrap material contains such low percentages of precious metals is one reason security is not top priority. As Behr Vice President of Marketing Nancy Fox points out, "remember, we're starting off with literally tens of thousands of pounds of low-grade scrap and reducing it to only a few hundred pounds of copper-based bullion. Fort Knox, we're not." However, she says, “we are concerned with the potential for loss, or possible theft, so we keep a close watch on all incoming and outgoing materials.” In addition, according to Carrol Sholders--who acts as the communication link between the plant, the lab, the customers, and the sales force--Behr recommends that all incoming materials be sent in steel drums to best guarantee a safe, tamper-proof arrival. Furthermore, as a service to its customers, Behr carries and assumes the cost of insurance covering the value of incoming materials. As a result, Sholders notes, customers' shipping costs are greatly reduced. This is an important service, he says, since Behr's customers are located nationwide.

A History beyond Precious Metals

There's more to Behr than precious metals. In fact, Behr Precious Metals is only one of three companies owned by Joseph Behr and Sons. The parent company traces its history to the turn of the century when Joseph Behr, a collector and peddler of old paper and paperboard, textiles, and scrap metals, and his wife Celia moved north from Chicago to Rockford. The company was incorporated in 1928 with three divisions: iron and steel, nonferrous metals, and rags and paper. Over the next three decades other divisions were added. These include a machinery division, an iron and steel brokerage division, a wholesale paper division, and an electric motor division. Precious metal refining began in 1962 as a part of the nonferrous metals division; it became an autonomous division in 1977.

Today, Joseph Behr and Sons consists of Behr Precious Metals, Inc., Behr Iron & Steel Co., and Behr Non-Ferrous Metals, Inc., each of which has it own distinct and separate operations. Behr Iron & Steel Co., led by President Allen Goldberg, processes and brokers hundreds of thousands of tons of ferrous scrap each month. Nonferrous metals are handled through Behr Non-Ferrous Metals. Under the direction of Stuart Cohn, president, the company produces copper shot from scrap and supplies aluminum alloy to die casters in the Midwest. In addition, a 25,000-ton-peryear reverberatory furnace consumes virtually all kinds of scrap aluminum and produces a range of specification ingots consumed by the foundry and die casting industries. All three Joseph Behr and Sons companies are overseen by a grandson of the founder, Richard A. Behr, who assumed the company presidency in 1964. David Behr, a great-grandson of Joseph, also is actively involved in company activities, thus bringing a fourth generation of Behrs into the business.

In recent months an additional operation was started in response to local municipal solid waste challenges. This new entity is a small postconsumer scrap paper, plastic, and glass handling facility. In addition, Behr recently announced plans to construct and operate a modem postconsumer recycling plant adjacent to an existing landfill. Behr will be undertaking this venture with Winnebago Reclamation Services, Inc., Rockford, in an effort to offer a long-range solution to the solid waste disposal needs of the greater Rockford area.

Working for the Environment and Success

What all of these Behr entities hold in common, according to Rosenson, is a commitment to worker safety and attention to environmental details. At the Behr Iron & Steel drop-off and storage area for industrial turnings to be crushed, a state-of-the-art 40,000-square-foot concrete water-and-oil-collection pad was recently installed at a cost of $1 million. The pad's design allows capture of the oil and purification of the water so that no runoff finds its way to the scenic Rock River located a stone's throw away.

To tell its environmental story, the company produced a video it now shows to many industrial suppliers. The video, "Superfund and You," was designed to demonstrate how the Comprehensive Environmental Response, Compensation, and Liability Act affects scrap suppliers and processors. It also shows how Joseph Behr and Sons has responded to the letter and spirit of the law.

At Behr Precious Metals environmental awareness is evident throughout the refining process. For instance, after the precious metal content is removed from spent solution, the remaining liquids-which have been rendered entirely harmless by the chemical refining process-are either evaporated or discharged into the sanitary sewer systems. As Coupar points out, Behr Precious Metals is licensed by the Illinois and U.S. Environmental Protection Agencies as a point-source discharger of hazardous materials.

Attention to environmental compliance is important not only to Behr's environmental well-being, but also to its customer relations. According to Rosenson, it is Behr Precious Metals's policy to assure its customers that scrap and spent solutions shipped to the company are handled in complete compliance with EPA regulations. Rosenson credits the company's success to this policy and to other customer service practices such as a commitment to promptly responding to inquiries and samples and to making timely settlements.

While many refiners have stayed clear of refining low-grade precious-metal-containing scrap, Behr Precious Metals has been reclaiming the gold, silver, and platinum from these materials for nearly two decades.

Behr Precious Metals, Inc., Rockford, Illinois, however, has used these obstacles to its advantage, carving itself a niche in this sparsely populated business. According to Ronald Rosenson, president, when the operation was begun in 1962, "there was a big void in this area. Many of the old-line firms in the precious-metal-recovery industry were only interested in jewelry scrap, karat gold, thermocouple wire, and other high-grade precious-metal-bearing scrap." But Rosenson saw that much of the precious-metal-bearing scrap available, which included gold- and silver-plated circuit boards and plating solutions, was being bypassed by the larger refiners, presenting an opportunity that begged to be taken.

Going after these low-grade materials, he says, "proved to be an extremely good business for us-up to the 1980s." In the late 1970s and early 1980s, he notes, overall inflation, compounded by the Hunt brothers' actions in driving up silver prices, forced precious metal prices sky-high. As a result, one of the major sources of precious-metal-containing materials, the electronics industry, began to use alternate materials and to miniaturize in an effort to minimize precious metal use.

Today, Rosenson reports, that trend toward less precious metal use continues in virtually every industry employing those metals. For example, he notes, the silver content in X-ray film is currently half of what it was in the 1960s. The same may be said about plated items. According to Rosenson, in these goods one is apt to find more nickel content than gold.

Still, Behr Precious Metals has stuck with this diminishing scrap source, and has even grown while precious metal use has declined. One example of this can be found in the company's physical size. In 1962 it occupied less than 5,000 square feet of space; today it encompasses more than 100,000 square feet.

Preparing for Refining

The first stop for scrap going to Behr Precious Metals's processing and refining operation is a converted furniture factory with two truck-unloading docks and a rail-unloading area. Incoming scrap materials are immediately weighed on one of three direct-reading scales that measure to the 1/100 of a pound. This information is sent to an adjacent converted research lab that now is dedicated strictly to environmental files and record keeping, where it will be maintained for 10 years. Tracking of licensing; permits; communications with local, state, and federal environmental officials; and material safety data sheets received from customers is handled here, as well.

What happens from there depends on the type of material to be refined. The first stop for precious-metal-bearing liquid solutions--which include spent potassium cyanide, sodium cyanide, nitric acid, and sulfuric acid--is a large wet laboratory and adjacent fire assay room. According to Ron Couper, chief chemist, solution samples are sent for both wet and fire analyses. "Duplication," he says, "ensures accuracy." First the solution samples are assayed for precious metals using a cupel. Then they're sent to the newest innovation in electric fire assay furnaces for scarification. The furnace's intense heat isolates the precious metals from the rest of the wet samples. The remaining tiny beads of precious metals are analyzed and weighed against the original sample; the resulting figure represents the sample's precious metal content.

Following assay, precious-metal-containing solutions, most of which are packaged in 55-gallon drums weighing up to 750 pounds each, are poured into large holding tanks for chemical refining. This process involves precipitating gold and silver from the solutions. The silver recovered from silver-bearing solutions is then electrolytically refined, resulting in crystallized material that typically assays more than 99.9 percent silver.

Extracting Value

The enormous variety of precious-metal-containing scrap Behr Precious Metals handles includes circuit boards, precious-metal-plated electronic components, and X-ray film. Many of these materials are analyzed using a Perk and Elmer atomic absorption spectrophotometer, which enables measurement of minute quantities of platinum group metals. Rosenson finds this sensitive equipment particularly useful in analyzing circuit boards, which he says can contain as little as 0.01 percent to 0.03 percent platinum or palladium. The spectrophotometer also is employed in analyzing some of the incoming spent solutions.

If any of this scrap contains plastic components--which must be burned off prior to refining--it begins the precious-metal-recovery process in a thermal reduction furnace that handles approximately 1,500 pounds per day, six days a week.

According to Rosenson, the resultant precious-metal-bearing ash and other incoming scrap are then fed into one of six gas-fired crucible furnaces for refining. As an adjunct to precious metal refining the same equipment and technology are employed in recovering tin and lead solder from drosses and pastes. Nickel, iron, aluminum, and other materials are slagged off.

The resultant product is a copper-based bullion that is poured into 60- to 70-pound ingots. These ingots, Rosenson notes, contain anywhere from 65 percent to 95 percent copper; precious metals make up most of the balance. The ingots are shipped abroad for further recovery of their precious metal content and settlement to Behr Precious Metals.

Reducing Risks

The entire process--from receiving scrap materials to final settlement to Behr--can take months. Behr's customers, however, are generally paid within 30 days. To help bridge that time gap, Behr is an active hedger on the Commodity Exchange as well as the London Metal Exchange. Given the volatile nature of commodities in general, and precious metals in particular, Rosenson explains, the exchanges represent a prudent means to reduce market exposure and risk.

Although Behr purchases, refines, and exports large quantities of precious-metal-containing materials, security measures are not particularly noticeable. The fact that most of the scrap material contains such low percentages of precious metals is one reason security is not top priority. As Behr Vice President of Marketing Nancy Fox points out, "remember, we're starting off with literally tens of thousands of pounds of low-grade scrap and reducing it to only a few hundred pounds of copper-based bullion. Fort Knox, we're not." However, she says, “we are concerned with the potential for loss, or possible theft, so we keep a close watch on all incoming and outgoing materials.” In addition, according to Carrol Sholders--who acts as the communication link between the plant, the lab, the customers, and the sales force--Behr recommends that all incoming materials be sent in steel drums to best guarantee a safe, tamper-proof arrival. Furthermore, as a service to its customers, Behr carries and assumes the cost of insurance covering the value of incoming materials. As a result, Sholders notes, customers' shipping costs are greatly reduced. This is an important service, he says, since Behr's customers are located nationwide.

A History beyond Precious Metals

There's more to Behr than precious metals. In fact, Behr Precious Metals is only one of three companies owned by Joseph Behr and Sons. The parent company traces its history to the turn of the century when Joseph Behr, a collector and peddler of old paper and paperboard, textiles, and scrap metals, and his wife Celia moved north from Chicago to Rockford. The company was incorporated in 1928 with three divisions: iron and steel, nonferrous metals, and rags and paper. Over the next three decades other divisions were added. These include a machinery division, an iron and steel brokerage division, a wholesale paper division, and an electric motor division. Precious metal refining began in 1962 as a part of the nonferrous metals division; it became an autonomous division in 1977.

Today, Joseph Behr and Sons consists of Behr Precious Metals, Inc., Behr Iron & Steel Co., and Behr Non-Ferrous Metals, Inc., each of which has it own distinct and separate operations. Behr Iron & Steel Co., led by President Allen Goldberg, processes and brokers hundreds of thousands of tons of ferrous scrap each month. Nonferrous metals are handled through Behr Non-Ferrous Metals. Under the direction of Stuart Cohn, president, the company produces copper shot from scrap and supplies aluminum alloy to die casters in the Midwest. In addition, a 25,000-ton-peryear reverberatory furnace consumes virtually all kinds of scrap aluminum and produces a range of specification ingots consumed by the foundry and die casting industries. All three Joseph Behr and Sons companies are overseen by a grandson of the founder, Richard A. Behr, who assumed the company presidency in 1964. David Behr, a great-grandson of Joseph, also is actively involved in company activities, thus bringing a fourth generation of Behrs into the business.

In recent months an additional operation was started in response to local municipal solid waste challenges. This new entity is a small postconsumer scrap paper, plastic, and glass handling facility. In addition, Behr recently announced plans to construct and operate a modem postconsumer recycling plant adjacent to an existing landfill. Behr will be undertaking this venture with Winnebago Reclamation Services, Inc., Rockford, in an effort to offer a long-range solution to the solid waste disposal needs of the greater Rockford area.

Working for the Environment and Success

What all of these Behr entities hold in common, according to Rosenson, is a commitment to worker safety and attention to environmental details. At the Behr Iron & Steel drop-off and storage area for industrial turnings to be crushed, a state-of-the-art 40,000-square-foot concrete water-and-oil-collection pad was recently installed at a cost of $1 million. The pad's design allows capture of the oil and purification of the water so that no runoff finds its way to the scenic Rock River located a stone's throw away.

To tell its environmental story, the company produced a video it now shows to many industrial suppliers. The video, "Superfund and You," was designed to demonstrate how the Comprehensive Environmental Response, Compensation, and Liability Act affects scrap suppliers and processors. It also shows how Joseph Behr and Sons has responded to the letter and spirit of the law.

At Behr Precious Metals environmental awareness is evident throughout the refining process. For instance, after the precious metal content is removed from spent solution, the remaining liquids-which have been rendered entirely harmless by the chemical refining process-are either evaporated or discharged into the sanitary sewer systems. As Coupar points out, Behr Precious Metals is licensed by the Illinois and U.S. Environmental Protection Agencies as a point-source discharger of hazardous materials.

Attention to environmental compliance is important not only to Behr's environmental well-being, but also to its customer relations. According to Rosenson, it is Behr Precious Metals's policy to assure its customers that scrap and spent solutions shipped to the company are handled in complete compliance with EPA regulations. Rosenson credits the company's success to this policy and to other customer service practices such as a commitment to promptly responding to inquiries and samples and to making timely settlements.