A Guide to Vendor Selection .PPT 7MEGS

American Retroworks Inc.

www.retroworks.com Middlebury, VT

E-Scrap Recycling, a Guide to Vendor Selection Economic, Environmental and Ethical Considerations

Robin IngenthronAmerican Retroworks Inc.

Middlebury, Vermont

www.retroworks.com

An NRC Training Program sponsored by Dell Inc.



1) Why Hold This Event?

2) What about Exports?

3) Recycling 101: Understanding your supply and your vendor’s demand

4) Rules of Thumb for selecting recycling vendors

Session Topics:



Why Hold This Event?• World Demand for Copper, Gold, Aluminum, Lead, Plastic and Steel

expands Daily. The worst recycling is environmentally better than the best mining.

• One day events are “a date, not a marriage”. Establish your collections and you can leverage vendor practices, dictate higher standards.

• The longer monitors and computers are stored, the less social (digital divide) and economic value they have

• Reuse markets for CRTs are strong today, but in 2 years they may dive.

• Residents don’t stop generating electronic waste while advocates ponder policy.



1) E-Scrap is 300% richer in copper and other metals than mined ore

2) Recycling produces a fraction of the pollution from mining. Hard rock mining produces 45% of all toxics produced by all USA industries.

3) Gorilla and orangutan extinction is arguably driven by electrics metal mining.

4) USGS – At 1990 rate of consumption, copper reserves will be exhausted this century: Ocean mining will be the primary source of copper in our lifetimes.

5) USA Model? 95% from federal lands, $5/acre, 14/15 largest Superfund sites

Mining nightmares in Borneo, Chile, Congo, Philippines, Turkey, etc.Gold mining releases more mercury into the environment thanmercury production and disposal combined!!!



USA Mercury Emissions by Industry(Rank #2-#7 - w/o GOLD Mining)

0

10000

20000

30000

40000

50000

60000

Total On/Off-site Hg Releases

ElectricityPlantsPetroleum

Cement

Waste & HazWasteCopper Mining

Federal/DefenseFacilitiesSilver Mining

Source: http://www.epa.gov/region09/toxic/tri/report/01/mercury.pdf



USA Mercury Emissions by Industry(Rank #1-#7)

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

4500000

Total On/Off-siteHg Releases

Electricity PlantsPetroleumCementWaste & Haz WasteCopper MiningFederal FacilitiesSilver Mining#2-10 combinedGOLD MINING

Source: http://www.epa.gov/region09/toxic/tri/report/01/mercury.pdf



REALITY: If USA exports everything, we send 1/3 reusables, 1/3 recyclables, and 1/3 Toxics Along for the Ride.

REALITY: if USA exports nothing, we destroy reuseables (and they cannot afford new); they mine to replace the recycled metals, and mining produces even more toxic harm than recycling.

SOLUTION: Setting a Higher Standard. USA processing, limited exports (tested equipment, copper scrap), simple tests (like CRT Glass Test); market development to promote best practices; (funded) state processing contracts with restrictions and incentives; etc.

It’s better to meet demand than not to. That said, sleazy exportsthreaten recycling, and are worse than not recycling at all.

What About Exports?



The Good: Repair, Reuse

The Bad: T.A.R.

The Ugly: Scrap Recycling

Q: Why should we know the basics behind international demand?

A: You’ll be asked several times a week, “Do you export this stuff?”



Giant Sucking Sound Growth in Chinese demand for copper (ore and scrap): 20% per year 1999-2002

0

5

10

15

20

1999 2000 2001 2002

Reuse Forces

1. High tolerance/demand for used2. “Free” software3. Cheap parts4. Good, cheap tech. labor

Understanding Export Forces to Asia

Recycling Forces

1. Metal demand2. Balance of Trade3. Cheap labor 4. Cheap env. Laws



Monitor Refurbishing FactoryCopper extracted by hand

The Good and the Ugly



THE BAD: Legitimate USA recyclers must be able to show where the non-repairable lead goes.

Toxics Along For the Ride will hold recycling back



1) What you have

2) What the vendor does to it

3) Considerations for evaluating bids (ie demand) from multiple recycling vendors

Recycling 101: Understanding Basics



1) Pristine takeouts for auction, clean scrap- you can deal with anyone directly

2) Junk - you should insist on domestic processing

3) “I dunno”…- you should deal with USA companis with capacity to separate, process, market, document

This is always the one-day event

What you have



What the vendor does to it1) Can it be reused? 5% material = 50% of income

- e.g. 17” monitor tested working, $30

2) Can it be repaired? 15% material = 30% of income- e.g. white box PCs, repairable monitors, $5 each

3) Can it be recycled? 75% of material = 20% of income- lead, gold, copper, aluminum, steel, plastic, pennies per

pound. Does not cover labor or processing cost.

4) Disposed (incl. contaminants)? 5% material = LOSS- Wood debris, cable casings

• All Income combined = 1/3 of collection and operating cost

$$$?

$?

$ ?

?As the dollars get smaller, the volume gets bigger…



4 Simple Due Diligence Tests

• LEADED GLASS recycling records• GOLD BEARING SCRAP markets• SAMPLE EXPORT manifests (how is it recorded

and declared?)• Employees or capital investment per ton

Ideally, your state or cooperative marketing organization has already established a statewide contract and performed due diligence and vendor selection. If not, there are limits to the amount of information you can justify collecting (or understanding) for a One Day Event.



1. CRT Lead Glass Test – Lead CRT glass is the most expensive item to recycle domestically, and the biggest source of toxics.

Ask vendor these 2 questions:

-“How many tons of leaded glass did you send to lead smelters or glass furnaces last year?”

- (divide by) “How many total tons of electronics did you collect last year?”

(Ask for the lead glass end market to verify the shipments.)

After reuse, lead glass is 42% of material. Reuse will lower this figure, but not EVERYTHING can be reused.



Ask your vendor to provide documentation of markets for printed circuit board recycling. If there is no documentation, ask whether they are shipping computers intact to foreign markets. BAN: chinese circuit board / gold recycler

2. Printed Circuit Board (PCB) Gold Test – Not every PC can be refurbished. When sold for metal content, most of the pollution comes from extracting the gold circuit boards.

Asia is the #1 consumer of gold PER CAPITA



3. Truthful Manifest Test - Ask for RECENT shipping papers (sensitive market info can be blocked out). Legitimate bill of lading shows make/model/voltage/COO/condition.

“1030 pcs. Tested Working Monitors 95-99”

“40,000 lbs. scrap metal”



4. Employment / Capacity Test How many pounds per 5 employees?

Limited Demanufacturing and repair

Automated shredding

1M

3M

10M Whole-lotta Wholesaling going on…

Average is somewhere around five employees per million pounds of electronics.If it’s outsourced, insist on end market documentation!!



• mineralpolicy.org• mpi.org.au• USGS.gov• moles.org• ban.org• copper.org• www.antigraymarket.org • these and other links www.retroworks.com

Documents

A Guide to Vendor Selection .PPT 7MEGS