Cryptic crossword clue
Refinery melts ore, somehow extracting oxygen 7

The most common and most likely answer to this crossword clue is the 7 letter word SMELTER

I've seen this crossword clue in The Times
S
M
E
L
T
E
R

Buddy explains!

The straight part
We know that "Refinery" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case refinery = smelter.
The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.
This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.

What does SMELTER mean?

SMELTER noun
  1. A person employed to do smelting.
  2. A machine used to smelt metal.
  3. A place where smelting is done.

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