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I am no longer getting any shiny dust from pulverizing ferrous ore. Current version I am running is Infinity 1.2, however this has been an issue for me the past 2 updates. I can't seem to find a config in any mod that controls this. Kinda hard to make tesseracts etc without shiny ingots... Anyone else having this issue?
I dunno about any issue with Infinity, but I've always gotten my shiny ingots by silk touching redstone ore blocks and TE pulverizing them. You will get some cinnabar and if you use the TE augments for additional secondary product you'll get a bit more of it. Note that this is the Thermal Expansion cinnabar, not the Thaumcraft cinnabar blocks (you can convert them into TE cinnabar using gelid cryotheum). Place a ferrous ore block and a cinnabar in a TE Induction Smelter to get a guaranteed shiny ingot as a secondary product. Since Infinity has Tinkers' Construct, silk touch isn't all that difficult to acquire on your pickaxe or hammer, and once you get it, you'll be all set for shiny ingots.
Redstone Ore is a default 25% chance for cinnabar and Gold Ore is a 5% chance. So I process these two ores separately from all the other ores in a separate Pulverizer with Augments just so I can maximize my shiny ingot production. Once you can put Silk Touch upgrade onto an EnderQuarry you will be swimming in shiny. Until then, I just grind it out with a Tinker's hammer near bedrock to find Redstone Ores.
I didn't think it was ever possible to get shiny by pulverizing Ferrous directly, but given your report, I'm no longer certain of that.