Chemetco was a major U.S. secondary copper smelter in Hartford, Illinois, that operated from 1969 until 2001. At its peak, the facility produced about 125,000 tonnes of refined copper annually from recycled material, which represented a major proportion of domestic secondary copper refining capacity. The company reported revenues of roughly $500 million in 1999.
Chemetco and its senior officers became involved in multiple federal investigations during the 1990s. In 1992, the Federal Election Commission found that Chemetco, as well as its company president, John M. Suarez, and associate José Bóveda, arranged unlawful corporate and foreign campaign contributions affecting the U.S presidential primary in Missouri. The FEC's General Counsel described the payments as "clearly laundered money," and evidenced that funds were routed through entities owned by Chemetco and a Belgian holding company. Suarez took over ownership of the company the following year.
In 1996, an inspector from the Illinois EPA discovered a concealed 10-inch pipe discharging heavy metals from the smelter into wetlands connected to the Mississippi River. The finding led to a joint investigation by the U.S EPA, FBI, and Illinois State Police, leading to federal indictments against the company and its chief officer, Denis L. Feron, who owned parent company Metallo Chimique. Prosecution and conviction followed, for conspiracy and felony violations of the Clean Water Act. After Chemetco entered a nolo contendere ("no contest") plea, the company was fined $3.8 million, then ceased operations in 2001, following Chapter 7 bankruptcy.
The case established legal precedent when the Seventh Circuit held in United States v. Chemetco, Inc. that the number of violation days is a sentencing factor for judges, rather than a matter for a jury. Atmospheric modeling later identified Chemetco as one of the largest individual North American sources of dioxins in the Arctic, including measurable fallout in Nunavut, Canada. Federal investigations also documented extensive worker exposure to health problems including chronic beryllium disease and hazards such as widespread lead overexposure.
The former Chemetco site was made a Superfund cleanup project in 2010 and remains under oversight by the EPA. Remediation continues to address contaminated soils, slag, and hazardous waste; at the same time, ongoing litigation involves numerous Potentially Responsible Parties including Fortune 500 companies.
Location, history and operations
Location The Chemetco smelter was in Hartford, Illinois, one mile east of the Mississippi River, within Madison County's American Bottom floodplain. The facility occupied roughly 41 acres of a 230-acre tract.
History Construction of the plant, originally with the name Chemico, began in 1969. Three 70-ton gas-fired converters were installed, and a fourth later. For each converter, there was also a melting furnace.
The business was incorporated as a Delaware company and renamed Chemetco, Inc. in 1972.
Ownership Corporate records indicate that Chemetco underwent a change in ownership during the early 1990s. In testimony before the Illinois Pollution Control Board, Chemetco president David Hoff stated that John M. Suarez purchased Chemetco in 1993.
1992 U.S presidential primary 'laundered money' campaign contributions In June 1992, a year before John M. Suarez took over as Chemetco's owner, a complaint was filed with the Federal Election Commission alleging that contributions connected to Chemetco's president, John Suarez, and associate José Bóveda, violated federal election law. A contemporaneous The Kansas City Star profile of Suarez had noted his history of political contributions and that some donations were made through companies or associates rather than in his own name.
The FEC complaint stated that the contributions affected '...an ongoing primary election campaign which will end on August 4, 1992', referring to the U.S presidential primary then underway in Missouri.Federal Election Commission, Matter Under Review 3541, Complaint (June 12, 1992), https://www.fec.gov/files/legal/murs/3541.pdf
In 1994, the FEC investigated allegations that Suarez arranged a $25,000 contribution through an account under the name Tippins Development Ltd., which was refunded amid concerns over its legality. Additional contributions from Concorde Trading, Chemetco, and Midco, all of which were linked to Suarez and a Belgian holding company, were also routed to federal campaigns through intermediaries.
The FEC's General Counsel described these payments as 'clearly laundered money'.Federal Election Commission, General Counsel's Report, MUR 3541, https://www.fec.gov/files/legal/murs/3541.pdf John Suarez was not among the individuals charged when Chemetco and several employees were indicted in 1999 for Clean Water Act violations.
Chemetco's role in U.S. secondary copper industry collapse The permanent closure of Chemetco's facility in 2001 signaled the end of large-scale secondary copper smelting in the United States. The company ceased operations on October 31, 2001, following criminal convictions for environmental violations and mounting financial pressures, and Chemetco then filed for Chapter 7 bankruptcy protection on November 13, 2001. The plant had an output of 95,000 metric tons and was operating at roughly 30% below capacity before closure.
Secondary smelters operated by Southwire, as well as Cerro Copper Products' facility, had already shut down. Between 1997 and 2001, when Chemetco closed down, approximately 200,000 metric tons of secondary refining capability vanished; output in the United States fell to zero.
Chemetco's exit was the final point in a cycle of closures mediated by market pressures as well as the substantial capital investments required to meet evolving environmental standards that operators found economically unviable.
Operation
Main products
Chemetco was primarily a secondary smelter of copper anodes and cathodes. Its peak historic capacity was about 125,000 tonnes of refined copper annually, from an average of 250,000 tonnes of scrap copper and residues.
Subsidiary products and precious metals The smelter also produced lead and tin ingots. Independent evaluations of the tankhouse sludges confirmed gold, silver, and other metals.
Introduction of Kaldo /Top-blown rotary converter (TBRc) technology to secondary copper smelting
Chemetco appears to mark the first large-scale, continuous application of TBRc in secondary copper refining rather than steel, showing parent company Metallo to be an early adopter. Chemetco's primary rival was Noranda's Horne Smelter in Rouyn-Noranda, Quebec.
Characterization of by-products
Chemetco operated under state and federal environmental regulations that governed the handling of secondary materials and industrial residues. In a significant hearing in front of the Illinois Pollution Control Board (PCB) the company petitioned for an 'amended standard' that would allow it to slurry its bunker material, which it described as 'zinc oxide,' then blend it with copper and tin fines before shipment overseas.Illinois Pollution Control Board Opinion and Order, Chemetco, Inc. (AS 96-4). https://pcb.illinois.gov/documents/dsweb/Get/Document-12078. Illinois Pollution Control Board. 1996. Chemetco presented this process as a means of recovering metal value from material it characterized as a product.
The PCB reviewed the proposal and ultimately, denied the petition for an amended standard; this decision made the bunker material subject to existing waste management requirements, rather than to reclassification as a "recoverable" product. Overall, this case provides one example of how Chemetco's operational approach to by-product recovery was tested and limited by the regulatory framework that governed its activities.
Analysis of what Chemetco described as 'zinc oxide' by-product Laboratory analyses by the United States Environmental Protection Agency (EPA) determined that the material referred to by Chemetco as 'zinc oxide' was not a product at all. Rather, it was a hazardous by-product containing extremely high concentrations of lead, cadmium, and copper, along with trace elements such as antimony, cobalt, nickel, and mercury.Site Profile - Chemetco Superfund Site Removal Action - EPA OSC Response. https://response.epa.gov/site/site_profile.aspx?site_id=8994. response.epa.gov.
EPA laboratory testing found that Chemetco's by-product failed Toxicity Characteristic Leaching Procedure (TCLP) standards for lead and cadmium, classifying it as hazardous waste under federal regulations. The agency's analyses concluded that the material posed significant risks owing to toxicity as well as to its potential for leaching.
EPA-confirmed metal and metalloid content All samples analyzed failed EPA regulatory thresholds for lead and cadmium.
Comparison with pure zinc oxide EPA's characterization established that Chemetco's 'zinc oxide' could not be marketed or exported as a recyclable product and instead, required management as hazardous waste. This distinction highlighted the difference between genuine industrial zinc oxide and the metal-rich residues generated by Chemetco's refining operations.
The unusable waste generated by Chemetco accumulated in a conspicuous pile for decades.
Occupational health hazards Systemic occupational health deficiencies The findings of the NIOSH Health Hazard Evaluation showed profound and systemic failures in occupational health protection at Chemetco. Documented overexposures to arsenic, lead, and sulfuric acid, combined with contamination of eating areas, demonstrated that the facility lacked effective exposure controls and hygiene measures.
NIOSH concluded that worker exposures exceeded recognized safety limits for multiple hazardous substances, and these resulted in adverse health effects including respiratory irritation, skin damage, beryllium sensitization and chronic beryllium disease and elevated blood lead levels. These findings indicated that Chemetco fell very short of fundamental occupational health and safety standards.
Chronic beryllium disease NIOSH investigators confirmed one case of chronic beryllium disease in a 31-year-old furnace operator who had worked at the plant for two and a half years. The worker was diagnosed with chronic berylliosis requiring lifelong steroid treatment.National Institute for Occupational Safety and Health. "Health Hazard Evaluation Report HETA 82-024-1428, Chemetco, Inc., Hartford, Illinois." March 1984. CDC.gov
The affected worker was found to be charging small quantities of metal scrap into a sample furnace without respiratory protection, and further, his job classification did not require such equipment. NIOSH found that historical beryllium concentrations at the facility exceeded recommended occupational limits, with 17 percent of company air samples from 1981 above NIOSH exposure standards.
Lead and other exposure hazards
NIOSH reported widespread exposure hazards across plant operations. Personal air monitoring detected lead concentrations were described by NIOSH as potentially toxic. NIOSH also noted that production areas did not have exhaust ventilation, and that workers performing charging of furnaces, sampling and scrap handling often did not use respiratory protection. Dust and metal fumes were identified as consistent exposure sources throughout smelting and refining operations.
NIOSH identified additional exposure hazards involving arsenic, lead contamination in eating areas, and sulfuric acid mist in the electrolytic tankhouse.
Arsenic exposure and health impact on workers