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& ASSOCIATES
CERT.NO. 3400
AS/NZS ISO 9001
Our reference: PreFeasibility Study Establish Solid Waste Recycling Plant.DOC
25 Septemmber 1995
PRIVATE & CONFIDENTIAL
•••• Corporate member: Australian Institute of Agricul tural Science •••• Registered Valuer •••• Member: Australian Association of Agricultural Consultants
- A G R I B U S I N E S S & M A N A G E M E N T C O N S U L T A N T S & V A L U E R S -
FINAL REPORT PRE-FEASIBILITY STUDY FOR THE
ESTABLISHMENT OF A RECYCLING PLANT
PETEMIC TECHNOLOGY PTY LTD
"PETEMIC TECHNOLOGY PTY LTD"1
PREFACE
This Pre-feasibility Study Final Report sets out, inter alia, an assessment of the proposed establishment of a recycling plant ("the Project") to be carried out in the vicinity of Caboolture Shire, south-east Queensland, under the auspices of Petemic Technology Pty Ltd ("the Company"2) - an organisation incorporated in the State of Queensland. This Project, initiated by Mr Michael Walsh, General Manager of Petemic Technology Pty Ltd ("the Client") has been carried out utilising the services of Gary O Garner & Associates ("the Consultant")3 as a Regional Economic Development ("RED") Program Feasibility Study, as arranged through the Sunshine Coast (Mooloolabah) Regional Office of the Department of Business, Industry and Regional Development ("DBIRD").
1 A.C.N. 064 320 314
2 The term "Company" as used throughout this document is a generic term used to describe the
organisation "Petemic Technology Pty Ltd"
3 Gary O Garner & Associates are the “lead consultants” for the Project. Input has also been provided
by Mr John Mackenzie of Sloane, Cook & King Pty Ltd (market analysis and environmental
considerations); Mr Peter Stone of Chemquip Pty Ltd (various input in relation to technical
engineering matters);
Ms Helen Gibson (various sections of this Report, and assistance with specific matters relating to local
Council requirements, raw materials, site assessment, and strategic planning); and Coller, Shannon,
Rill & Scott (licensing requirements).
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25 Septemmber 1995 PreFeasibility Study Establish Solid Waste Recycling Plant.DOC
TABLE OF CONTENTS
PREFACE............................................................................................................................1
TABLE OF CONTENTS .........................................................................................................2
EXECUTIVE SUMMARY & RECOMMENDATIONS ................................................................8
MARKET ANALYSIS .................................... ...................................................... 8 Recommendation ..................................................................................................... 9
PRODUCTION, EXAMINATION OF ENVIRONMENTAL ISSUES, & SITE ASSESSMENT .......................................................................................... 9 Production, Labour Skills and Other Resources ...................................................... 9 Site Assessment .................................................................................................... 12 Environmental Issues............................................................................................. 13
COMMERCIAL VIABILITY ............................... ................................................ 14 Recommendation ................................................................................................... 16
LICENSING OF THE TECHNOLOGY........................ ....................................... 16 Protecting The Petemic Technology ...................................................................... 16 Recommendation ................................................................................................... 17
INSTRUCTIONS/TERMS OF REFERENCE ...........................................................................18
TERMS OF REFERENCE................................................................................. 18 Introduction to Consultancy Requirements ............................................................ 18 Study Objectives .................................................................................................... 18
CONSULTANT’S RESPONSE TO THE T.O.R. & GENERAL PROJE CT OVERVIEW ............................................................................................. 20 Introduction............................................................................................................. 20
FURTHER BACKGROUND & FEASIBILITY STUDY CONSIDERATIO NS ...... 21
PROPOSED ACTIVITIES ................................................................................. 22 Required Evaluation (Brief) .................................................................................... 22
PURPOSE OF CONSULTANCY............................. .......................................... 23
OBJECTIVES ......................................... .......................................................... 23
PROJECT SUMMARY........................................................................................................25
S.W.O.T. ANALYSIS #1.....................................................................................................26
STRENGTHS.................................................................................................... 26
WEAKNESSES......................................... ........................................................ 26
OPPORTUNITIES............................................................................................. 27
THREATS ......................................................................................................... 27
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S.W.O.T. ANALYSIS #2.....................................................................................................29
STRENGTHS.................................................................................................... 29
WEAKNESSES......................................... ........................................................ 30
OPPORTUNITIES............................................................................................. 31
THREATS ......................................................................................................... 32
STRATEGIC MANAGEMENT PLAN ....................................................................................33
STRATEGIC OBJECTIVES ............................... ............................................... 33
MISSION STATEMENT .................................................................................... 34
ACTION PLANS ....................................... ........................................................ 34
MARKET PROSPECTS FOR THE PETEMIC SOLID WASTE RECOVERY PROCESS ...............38
THE MARKET SURVEY - COMMENTARY..................... .................................. 38
INTRODUCTION & OVERVIEW ....................................................................... 38
BACKGROUND......................................... ....................................................... 43
POTENTIAL FUTURE WASTE PRODUCTION .................. .............................. 44
WASTE DISPOSAL COST ISSUES ......................... ........................................ 46
STRATEGIC OPTIONS IN RELATION TO RAW MATERIAL AND MARKETS ............................................ ................................................... 50
SUPPLY AND PRICE OF CONSTRUCTION MATERIALS IN THE S HIRE OF CABOOLTURE...................................... ............................................ 54
SUPPLY AND PRICE OF AGGREGATE AND CONSTRUCTION MATERIALS IN SOUTH-EAST QUEENSLAND ................. ..................... 57 Regional Supply & Demand ................................................................................... 57 Value of the Industry .............................................................................................. 58 Alternative Sources ................................................................................................ 59
USE OF THE PETEMIC PRODUCT, AND COMPETITIVE ADVANTA GE ........ 60 The Price of the Product or Service ....................................................................... 61 The Quality of the Product or Service .................................................................... 62 The Availability of the Product or Service............................................................... 62 Exclusive Rights or Concessions Which Might Limit the Competitors Rights to
Obtain a Raw Material, or Supply a Product or Service to the Marketplace ................................................................................................. 63
CONCLUSIONS................................................................................................ 63 Sales Potential ....................................................................................................... 66
SITE ANALYSIS ................................................................................................................68
PROSPECTIVE SITES ..................................................................................... 68
SITE LOCATION CRITERIA............................. ................................................ 68
THE NARANGBA INDUSTRIAL ESTATE..................... .................................... 69 Alternatives to the Narangba Industrial Estate. ...................................................... 72
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The Noxious, Offensive or Hazardous Industry Zone ............................................ 73
LABOUR SKILLS AND ORGANISATIONAL STRUCTURE......................................................76
KEY MANAGEMENT..................................... ................................................... 76 Delegation of Authority and Succession Planning.................................................. 77 The Petemic Board of Directors ............................................................................. 77 Professional Support Services ............................................................................... 78 Sub-Contracted Services ....................................................................................... 79
ORGANISATIONAL STRUCTURE ........................... ........................................ 81
ORGANISATIONAL CHARTS .............................. ............................................ 81 One Shift ................................................................................................................ 82 Two Shifts............................................................................................................... 83 Three Shifts ............................................................................................................ 84
POSITION JOB DESCRIPTIONS .......................... ........................................... 84 Use of Contract Labour and Enterprise Bargaining ............................................... 85
SKILLS AUDIT ....................................... .......................................................... 85 GENERAL MANAGER........................................................................................... 86 ADMINISTRATION MANAGER ............................................................................. 87 SECRETARY ......................................................................................................... 88 PRODUCTION MANAGER.................................................................................... 89 WEIGH BRIDGE OPERATOR & SECURITY ........................................................ 90 LOADER OPERATOR ........................................................................................... 91 LOADER, PULVERSIER & EXTRUDER OPERATOR .......................................... 92 LOADER & FORKLIFT OPERATOR, BRICK STACKER ...................................... 93 GENERAL HAND................................................................................................... 94 TRUCK DRIVER (if required)................................................................................. 95
QUALITY ASSURANCE (QA) & TOTAL QUALITY MANAGEMENT ( TQM)..... 95
PRODUCTION & PROCESSING OPERATIONS....................................................................98
CAPACITY........................................... ............................................................. 98
WASTE RECEIVING AREA............................... ............................................... 98
ENVIRONMENTAL GUIDELINES / ISSUES .......................................................................101
INTRODUCTION............................................................................................. 101
OVERVIEW..................................................................................................... 101
GUIDELINES BACKGROUND .............................. ......................................... 103 Air and Emission Quality ...................................................................................... 103 Water Quality ....................................................................................................... 104 Guidelines for Noise............................................................................................. 104
REFERENCES (Environmental Issues).................. ...................................... 105
Schedules to Environmental Guidelines & Issues ..... ................................ 107
BUSINESS PREMISES & INFRASTRUCTURE SUPPORT..................................................114
INFRASTRUCTURE REQUIREMENTS.......................................................... 114 Land Requirements.............................................................................................. 114 Services................................................................................................................ 114
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General Infrastructure .......................................................................................... 115
BULDING (PREMISES) ................................. ................................................. 116
SUNDRY PLANT & EQUIPMENT........................... ........................................ 118
COMMERCIAL VIABILITY: INCLUDING FINANCIAL PLANNING & ANALYSIS...................119
INTRODUCTION............................................................................................. 119 Status of Development Work ............................................................................... 119
TIMING ........................................................................................................... 120
SUPPORTING DATA FOR ESTABLISHING COMMERCIAL VIABILI TY (FINANCIAL PROJECTIONS AND ASSUMPTIONS)............ ................ 121
FINANCIAL PLANNING & ANALYSIS ...................... ..................................... 122 Objectives............................................................................................................. 122 Commercial Viability - Overview of Results.......................................................... 122 Sales Estimates - Major Assumptions ................................................................. 123 Notes on Primary Operating Costs ...................................................................... 124 Capital Investment Requirements ........................................................................ 125 Equity & Debt Ratio .............................................................................................. 126 Profit & Loss / Cash Flow Statements.................................................................. 126 Balance Sheet Analysis........................................................................................ 126 Break Even Analysis ............................................................................................ 126
SENSITIVITY ANALYSIS............................... ................................................. 126
TRADE TARIFFS, CUSTOMS & EXCISE.................... ................................... 134 Tariffs Applying to Building Aggregate ................................................................. 134 Customs & Excise ................................................................................................ 135
PATENTS, COPYRIGHT AND INDUSTRIAL DESIGNS.......... ....................... 135
TRADE MARK REGISTRATION............................ ......................................... 136
ASSISTANCE MEASURES FOR MANUAFCTURING, EXPORTING & RESEARCH & DEVELOPMENT APPLICABLE TO THE PROJECT... .. 137 The Industry Research & Development Board..................................................... 137 Department of Trade Industry & Regional Development (DITRD - formerly
DITAC) ....................................................................................................... 138 Federal Department of Industry, Science & Technology...................................... 139
TAXATION IMPLICATIONS FOR RESEARCH & DEVELOPMENT ... ............ 140
SALE OF THE NEUTRALYSIS WASTE PROCESSING PLANT ..... ............... 142
LICENSING OF THE TECHNOLOGY...................................................................................144
Introduction ....................................... ............................................................ 144
Prospects for Licensing: ........................... ................................................... 144
Protecting The Petemic Technology.................. .......................................... 144
Licensing - Evaluation Against Alternatives: ....... ....................................... 145
DISCLAIMER & QUALIFICATION BY CONSULTANT .........................................................146
APPENDICES..................................................................................................................147
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Appendix A - Job Descriptions................................... ............................... 147
Appendix B - The Petemic Waste Recycling Process (Block Diagram for Provisional Patent Application)................ ..................................... 160
Appendix C - The Petemic Waste Recycling Process (Block Diagram for Petty Patent) .................................. ................................................. 161
Appendix D - Panoramic View of the Narangba Industrial Estate ... ....... 162
Appendix E - Newspaper Clipping #1: Waste Managemen t ....................... 163
Appendix F - Newspaper Clipping #2: Waste Composition .......... ......... 164
Appendix G - Acknowledgments....................... ........................................... 165
Appendix H - References and Further Reading ........ .................................. 166
ATTACHMENTS...............................................................................................................169
Attachment 1 - Organisation Chart (Three Shifts Basis) ............ ............. 169
Attachment 2 - Project Implementation & Action Plan ............... ............. 170
Attachment 3 - Strategic Management & Action Plan................. ............. 171
Attachment 4 - Plant Construction & Capital Development Program... .. 172
Attachment 5 - Commercial Viability Supporting Schedules .......... ........ 173 Schedule 1 - Primary Base Assumptions............................................................. 173 Schedule 2 - Major & Secondary Inputs & Outputs (Material Balance)................ 173 Schedule 3 - Infrastructure & Costs ..................................................................... 173 Schedule 4 - Building (Premises)......................................................................... 173 Schedule 5 - Sundry Plant & Equipment .............................................................. 173 Schedule 6 - Plant Operating Equipment ............................................................. 173 Schedule 7 - Depreciation Schedule .................................................................... 173 Schedule 8 - Primary Operating Costs / Quantities ............................................. 173 Schedule 9 - Schedule of Salaries, Wages, & Sub-Contractors .......................... 173 Schedule 10 - Cash Flow Assumptions (Sundry)................................................. 173 Schedule 11 - Loans, Leasing & Hire Purchase Schedule .................................. 173
Attachment 6 - Cash Flow Budgets.................................. ......................... 174 Cash Flow Budget - Year 1 .................................................................................. 174 Cash Flow Budget - Year 2 .................................................................................. 174 Cash Flow Budget - Year 3 .................................................................................. 174 Cash Flow Budgets - Years 1, 2, 3, and Y.I.Y.O. ................................................. 174
Attachment 7 - Profit & Loss Summary (Years 1, 2, 3, and Year-In-Year-Out). 175
Attachment 8 - Balance Sheet Analysis (Years 0, 1, 2, and 3)...... ........... 176
Attachment 9 - Break Even Analysis (Profit & Loss Summary) ........ ...... 177
Attachment 10 - Locality Map - Narangba Industrial Estate .......... .......... 178
Attachment 11 - “Petemic Technology - A Technology Review” (Engineer’s Report - Chemquip Pty Ltd, June 1995). . ....................... 179
Attachment 12 - “Mass & Energy (Heat & Material) Balances” (Engineer’s Report - Chemquip Pty Ltd, 20 July, 199 5)..................... 180
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Attachment 13 - “Here’s the Plan” (Brisbane City Council’s Waste Reduction Program)................................. ............................................ 181
Attachment 14 - Provisional Specification for Patent Application - "A Waste Recycling Process and Apparatus" (Intellpro) . ...................... 182
Attachment 15 - Scale Drawings of Primary Apparatus ................ .......... 183
Attachment 16 - “Licensing” (Report prepared by Attorneys-at-Law: Collier, Shannon, Rill & Scott, September, 1995). .. ........................... 184
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25 Septemmber 1995 PreFeasibility Study Establish Solid Waste Recycling Plant.DOC
EXECUTIVE SUMMARY & RECOMMENDATIONS
MARKET ANALYSIS The study confirms that massive quantities of waste would be available to the
Project. However, it should be noted that whilst the study concentrates on
Eastern Australian Metropolitan areas, some data for the USA is also included.
At this stage, the Consultants have little information on costs for the Petemic
process4, but the basic product (aggregate pellets) should have a ready market at prices competitive with quarried materials. The price of such competitive materials will be very site specific.
The most attractive location for a Petemic type plant will be just inside the fringe
of large metropolitan areas where:
• There will be plenty of waste, including hard-fill from building sites.
• Landfill sites will be scarce and dumping will be under pressure from urban
residents.
• Waste disposal costs (including landfill lining and waste handling including
compaction and transport) will be high.
• There will be a local demand for the product particularly added value
variants such as bricks and tiles.
• There is a ready availability of clay
This report will be augmented by some discussion in relation to the above
matters, with Petemic Management.
Discussions held with Company management assume that the following premises
are to be used in regard to broad detail on expected plant size, capital cost and
per tonne operating cost:
1. Capacity: 500 tonne per day
2. Capital Costs: $20 to $25m5 ($A)
3. Costs per tonne for refuse disposal: $40 to $45 per tonne
Examination of the specifications put forward by Petemic Technology suggests
that the Petemic product in basic form should command a premium over
crushed and screened builders rubble. (Dumping charges for commercial refuse
at municipal landfill sites in Eastern Australia may also vary up to about $50 per
tonne, but can be expected to increase rapidly as new government
environmental and "user pays" policies are progressively introduced).
4 However, management advise that indicative costs would be in the order of $40.00 per tonne
5 During the early stages of the pre-feasibility study, this amount was revised to $20m to $50m
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Moreover the Petemic process has the potential to utilise a greater proportion of
the waste handled in municipal disposal than simply hard-fill waste amenable to
crushing and screening.
This analysis suggests that the break even point for the basic Petemic process
might be about $50 per tonne of refuse input. This might be allocated as to $40 per tonne in landfill utilisation cost avoided, and $10 per tonne in base product value (on site).
The available data suggests that sufficient waste is available in the main
metropolitan and urban areas to provide a consistent supply of input raw material, and that a regular demand for the basic output would be available at a price that would be competitive with quarried materials.
The indicative Petemic plant capacity to treat all the present Shire refuse would
be about 280 tonnes per day (assuming a 5 day week), expanding to about 600
tonnes per day by the year 2006. We are advised that the optimum sized plant
for the Petemic technology is about 500 tonne per day with an indicated capital
cost6 of $20 to $25 million7.
Importantly, it can therefore be concluded that the physical input and output
parameters for an optimum sized Petemic plant in the Shire of Caboolture would not be mismatched with the supply of refuse, and the expected Shire demand for
aggregate. For example, the output from the Petemic facility would provide less
than 10% of the expected demand for sand and aggregate in the Shire.
Recommendation
In view of the above findings, the Consultant recommended that the Project now
proceed to the next phase of the Project, i.e. Production, examination of
environmental issues, and site assessment.
This was subsequently agreed to by the client, and DBIRD.
PRODUCTION, EXAMINATION OF ENVIRONMENTAL ISSUES, & SITE
ASSESSMENT
Production, Labour Skills and Other Resources
The key production issues as required under the Study objectives (assessment and
quantification of availability of raw materials necessary to produce the
aggregate) has been covered in the previous section of this Report.
6 As noted previously, during the early stages of the pre-feasibility study, this amount was revised to
$20m to $50m
7 It should be noted that similar characteristics to the Shire of Caboolture are also present in adjoining
Shires, particularly Pine Rivers and Redcliffe, and it is possible that a strategically located facility
could also attract refuse from those Shires.
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In relation to labour skills, “Key Management” will consist of three personnel (plus
professional support services) in the General Manager, Administration Manager,
and Production Manager.
All three positions are critical to the effectiveness of the Project, with quite distinct
responsibilities.
The General Manager is responsible to the Petemic Board of Directors, and will
not only implement policy and be responsible for the ultimate performance of
the Company, but will also play a large part in the marketing of the Company
and its products.
The Administration Manager, with a primary responsibility for providing financial
management information, will act essentially as the Company’s bookkeeper and
paymaster. He will be integrally involved in nearly all transactional processing
activities.
The Production Manager is totally responsible for the production and processing
operations, in addition to being the designated Quality Control Officer. This
position also carries the ultimate responsibility for the production of the Petemic
end-product to the specifications and standards established as Company policy.
The Production Manager’s other critical area of responsibility is the day to day
management of most Company staff. It can be expected that this person will
have a key role in the “hiring and firing” of production and processing personnel.
Because of the possibility of key management being absent from the premises for
extended periods, management will need to carefully consider the development
of succession planning. Various programs, such as ATFIC (Assistance to Firms
Implementing Change) may be suitable for assisting the Company in achieving
such objectives, along with the possibilities of striking an Enterprise Bargaining
agreement with all staff.
In the short to medium term, the Consultant recommends that the existing Board
should look for at least two other, independent, non-executive Board members
with expertise in the areas of:
• Financial Management
• Engineering Technology (preferably with specific skills in the area of waste
management)
The following Professional Support Personnel will also be required, in addition to
full time personnel:
1) Industrial Chemist (required for the formal testing of product quality and
composition. Some stress-testing of product may also be required to meet
the potential requirements of local Councils and other clients of Petemic
2) Consultant(s) are required in the following areas:
• General Consultancy (allocation should be made for assistance with
the financial management functions).
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• Engineering (implementation of Plant design, and ongoing
calculations for product / process specifications. Plant modification
“on the fly”).
3) Other Professional Support (Ongoing). This includes the appointment of an
Accountant, Auditor and Solicitor
The following services will need to be retailed for the provision of various sub-
contracted services:
Maintenance Crew
The maintenance crew (comprising skill areas of fitter, turner, and boilermaker)
will be charged with the responsibility of maintaining the Petemic plant. A
reduced requirement is indicated in the early stages of plant operation.
The purpose of the Maintenance Crew is to MAINTAIN PRODUCTION AND QUALITY
by ensuring operation of machinery and mechanical equipment.
Security Guard
The Security Guard will be charged with the responsibility of ensuring the entry of
only those persons authorised to do so, or otherwise legally required, outside of Plant operation. A secondary role will be the securing of the Company’s assets. A
reduced requirement would be indicated should the Company proceed to two
shifts, with a “nil” requirement where three shifts are in operation.
Electronic and Engineering Contractor
The Electrical and Engineering Contractor will be charged with the responsibility
of maintaining the electronics and controls relating to the Petemic Plant. The
Maintenance Crew will be directed by the Production Manager, but with the
input from the Engineering Consultant engaged by Petemic.
The organisational structure of Petemic Technology Pty should be relatively “flat”,
allowing for smooth communications between factory workers, and
management. Whilst the Consultants have prepared structures for one, two and
three shifts, in order to produce the intended product output (i.e. 500t per day
plant), indications are that a total of three shifts per day will be required.
Preliminary indications, subject to further audit by Consulting Engineer8, are that
total staff numbers of at least 28 personnel will be required.
Positions have been identified as follows:
Management (as above)
• General Manager
• Administration Manager
• Production Manager
8 This matter is currently being investigated by Consulting Engineer Mr Peter Stone.
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Administration
• Secretary
• Administration Assistant
Operations and Production
• Sub-Foreman (Assistant Production Manager)
• Weighbridge Operator & Security
• Loader Operator
• Loader, Pulveriser & Extruder Operator
• Forklift Operator, Brick Stacker, and Loader Operator
• General hand(s)
Suggested Position Results (Job) Descriptions for all personnel are appended to
this Report, together with an audit of skills.
Finally, management must recognise the need for proceeding with the
implementation of a formal Quality Assurance program9. This will be sufficient to
meet the expectations and demand of clients (both domestic, and potentially
international clients), and the industry in general. Local Councils are becoming
more insistent that service providers (and Petemic is potentially one of these) be
Quality Assured. Progression to TQM is an option further on, however will capitalise
and strengthen a formal commitment to QA principles.
Site Assessment
The Consultants have followed the Client’s directive in endeavoring to establish
prospects for a suitable site or sites within the context of Queensland, and
preferably South-east Queensland. From this point, the viability model for the
establishment of a suitable Petemic plant can be adapted according to site
variables and infrastructure requirements applying to any particular location.
An indicative location for such a pilot plant is the Shire of Caboolture. There are
several prospective sites in the Caboolture Shire that may be suitable candidates
for the setting up of a pilot plant. The preferred site selected is the Narangba
Industrial Estate, based on the following factors:
• Able to support the identified infrastructure requirements (e.g. availability -
or reasonable availability - of power, telephone, water, gas / furnace oil /
diesel, etc.).
• Rapidly growing local population, and the implied availability of waste.
• Site is appropriately zoned Special Industry (“Noxious, Offensive or
Hazardous” ) zone.
• Environmental restrictions, particularly that relating to noise, do not, prima
facie, prohibit the planned development.
9 The Company should proceed to full implementation a formal program of Quality Assurance, in line
with a Quality System fulfilling the requirements of Australian Standards AS3901 or AS3902 as may be
applicable - the AS3900 Series Standards required by the Clever Country Policy of the Federal
Government and the State Government Purchasing Policy 1991.
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• Preliminary discussions with Caboolture Shire Council indicate that it is a
likely possibility that it could be acceptable, prima facie, to the local
Council.
• Low or nil level of objection likely posed by local / regional communities,
due to its distant proximity to residential areas and placement within an
identified “noxious, offensive, or hazardous” locality.
• Required land area - minimum of 10 to 15 acres (4 to 6 hectares) - is
available.
• Excellent road access for heavy vehicles. Easy access to the Bruce
Highway.
• Bitumen road access available to the Estate.
• Narangba Industrial Estate enjoys a significant “Buffer zone” which should
serve to minimise or eliminate any undesirable effect on residential areas.
• Viewing from major arterial roads or highways is highly restricted. This will
assist in minimising, or eliminating, any visual intrusiveness.
• Close proximity to a number of existing landfill dump sites, including those in
several adjacent shires.
Environmental Issues
The primary legislation governing environmental issues in the context of the
operation of a Petemic Plant are addressed in the Environmental Protection
(Interim) Regulations 1995 (SL No. 46 of 1995). This is subordinate legislation to the
Environmental Protection Act 1994. The primary areas of responsibility are: Ozone
depleting substances10; Licensing11; Assessment criteria for air quality12;
Assessment of water quality uses13; and finally, Noise level parameters14.
There are 10 schedules to the Regulations defining activities, licensing fees,
controlled substances and compliance limits.
The compliance requirements are presently in a state of flux, as new and uniform
guidelines are developed for all Australian States following the passage of the
National Environmental Protection Council Act 1994 (Commonwealth), and the
complementary legislation; the National Environmental Council (Queensland)
Act 1994. In some instances new standards are in force and replace former
10 Regulations set out parameters for installation and control and release of controlled substances
11 Conditions for licensing are set out, including monitoring of operations. An Environmental
Management Program will be required.
12 National Guidelines for air quality and control of emissions follow standards adopted by ANZECC &
NH & MRC (1985)
13 Australian Water Quality Guidelines for fresh and marine waters (ANZECC). Sampling follows water
quality sampling manual. (2nd Ed. 1995)
14 In general the acceptable limit will be 8-10 dB above the background noise level.
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guidelines established under a range of earlier Queensland legislation. In other
instances, earlier guidelines will remain in force until new guidelines are
developed. Moreover, it is likely that Environmental Auditing under ISO 14000 will
be implemented in early 1996. Standards Australia through its QRII Committee,
may issue the latest draft of ISO 14000 as an interim standard for Australia.
For the Petemic process, an EIS (Environmental Impact Statement) will almost
certainly be required containing very specific data. An environment
management plan will also be required.
Licensing will be dependent on satisfying both the Council and the State
Government. In practice the administration and enforcement of the Act is
devolved to Local Government, but the Consultants believe that the Caboolture
Council is reluctant to specify any clear guidelines in advance of a detailed plan.
Special Note: Development of an Environmental Management Plan, and
possibly an Environmental Impact Statement (if required), should be completed
post the pre-feasibility stage of the Project, when more specific data becomes
available following further research and development of the process including
operating data derived from the operation of major plant items using the input
feedstock likely to be used in the process.
COMMERCIAL VIABILITY
The Financial Projections contained in this Report demonstrate that the Project is
marginally viable, with a Year-In-Year-Out Net Profit After Tax of approximately
$0.5m.
The primary base assumptions used in calculating this amount are that of 503
tonnes of Municipal Solid Waste (MSW) Garbage is received daily at a price
$40.00 per tonne, with an output of 500 cubic metres of aggregate (350 tonnes)15
sold at $14.00 per tonne.
The above primary assumptions are critical in the calculation of net profit, i.e. the
Project is very sensitive to changes in MSW Garbage or Aggregate receipts / sale
prices. For example, the level of Net Profit After tax approximately doubles where
the price received for MSW Garbage is $45.00 per tonne.
The capital required to fund the Project is $20m, with the base model assuming
that 80% ($16m) is derived from investors, and the balance ($4m) obtained
through debt funding. This will support capital works in the order of $18m, and a
further $2m working capital.
The “Break-Even” point16 is reached where the amount received for MSW
Garbage is $34.60 per tonne (assuming 100% equity / investor) funding.
The Project will take approximately four years (from the commencement of the
commercialisation stage) to achieve annual profitability, although this could be
15 Based on 0.7 bulk density
16 The “Break-Even” point is defined as being Net Profit After Tax equalling $zero Year-In-Year-Out.
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achieved up to 12 months earlier should the required Capital funding be wholly
obtained from investors rather than partially obtained with debt.
Development of the technology is recommended to proceed in four stages
which are summarised below:
STAGE 1 - CONCEPTUAL
At this initial stage the basic process parameters and testing requirements should
be defined. Any restraints imposed by potential problems such as patent
infringement should be built in to the project.
STAGE 2 - BENCH SCALE TESTING
The stage determines the feasibility of operating at the selected conditions,
which are checked using bench scale equipment. Small batches of product
should be produced to provide samples for initial testing for key properties.
Operations at this stage are essentially on a batch basis.
STAGE 3 - PILOT SCALE STAGE
The pilot stage is used to validate the process, assess continuous operation,
provide the basis for scale-up to the semi-commercial or commercial design,
produce sufficient product for large scale testing and trials, develop quality
control procedures for the inputs, outputs and process, and enable
development of confidence amongst plant designers and equipment suppliers
so that a process guarantee can be obtained for the plant performance. (During
this stage a generic engineering design is often carried out to assist in market
development and to define capital costs more closely).
STAGE 4 - SEMI-COMMERCIAL/COMMERCIAL
This stage is usually a scale up from the Pilot Scale Stage and follows the
completion of a major feasibility study which would include a detailed
engineering study. Usually fine tuning and development of the process would be
expected to continue at this stage, leading to a modified and improved design
for the second plant.
The stage incorporates detailed process and engineering design, procurement,
construction and commissioning.
The estimated duration of the above stages is within the following ranges:
Stage 1 6 - 9 months
Stage 2 12-18 months
Stage 3 24-30 months
Stage 4 24-36 months
The estimated total duration from the commencement of concept planning to
completion of the commissioning of a commercial or semi-commercial plant is
therefore between 5 and 7.5 years. However, the financial projections in this
Report assume the following milestones:
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Stage Project Stage Description Commencement Duration
1 Conceptual 15-Dec-94 9 months
2 Bench Scale Testing 14-Sep-95 12 months
3 Pilot Scale Stage 13-Sep-96 24 months
4 Date to Commence Commercialisation 13-Sep-98
Plant Construction 13-Sep-98 14 months
Plant Construction Completed 13-Nov-99
Commercial Product / Equipment Testing 13-Nov-99 4 months
Commercial Production / Sales Commences 14-Mar-2000 6 months Project Completion (Commercial Plant Built & In Full Operation) 12-Sep-2000
Recommendation
In view of the above findings, the Consultant recommended that the Project now
proceed to the next and final phase of the Project, i.e. Liscencing & Final
Reviews.
This was subsequently agreed to by the client, and DBIRD.
LICENSING OF THE TECHNOLOGY
On the assumption that Petemic will obtain patent protection in connection with
its Technology, it is concluded that the Petemic Technology embodies suitable intellectual property rights which can be the subject of a technology transfer license.
Based on contacts (various clients and others in the environmental engineering
industry) it appears that the Petemic Technology is potentially “licensable”,
provided it can satisfy the relevant regulatory requirements and become a viable
alternative to competing processes and end products.
However, the recycling process developed by Petemic would have to compete
with the alternative of relatively inexpensive landfill disposal and strong existing
markets for recyclable products. As such, several contacts concluded that the
demand for the Petemic Technology is “uncertain”.
Protecting The Petemic Technology
The need to protect the Petemic Technology through a carefully negotiated and
properly drafted license agreement is emphasised.
Methods for formulating a commercially viable royalty rate and a brief analysis of
Petemic’s potential areas of exposure is provided in the Collier, Shannon, Rill &
Scott Report17, together with an analysis of the potential advantages and
disadvantages of licensing the Petemic Technology18
17 Refer Attachment 16
18 This is particularly as compared with the pros and cons of Petemic establishing a recycling facility,
either on its own, or as part of a joint venture.
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Recommendation
Subject to the qualifications mentioned previously, it is concluded that licensing presents a viable “lower risk” option when compared with the establishment of a recycling facility either independently or as part of a joint venture arrangement. It is suggested that a carefully devised licensing strategy is worthy of further consideration.
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INSTRUCTIONS/TERMS OF REFERENCE
TERMS OF REFERENCE
The terms of reference for this Consultancy results from discussions held with
Company name principals, and liaison with DBIRD's Sunshine Coast Regional
Office staff (Ms Del Woodcock), and as contained in the Consultant's proposal
dated 23 January 1994 and agreement dated 9 September 1994.
Formal written guidelines (Terms of Reference19) for the Consultancy were
received 19 September 1994 as follows:
Introduction to Consultancy Requirements
Petemic Technology Pty Ltd is considering undertaking a Feasibility Study into the
Commercial viability of establishing a recycling plant to produce aggregate and
the potential for licensing the technology / product nationally and
internationally.
Study Objectives
Stage (i) Identify domestic and international market possibilities for the
aggregate produced from the recycling process.
Stage (ii) Assess and quantify availability of raw materials necessary to
produce the aggregate.
Assess specialist labour skills necessary for the project.
Identify any environmental issues which may be relevant to
the Project.
Identify appropriate establishment sites in South East
Queensland.
Stage (iii) Determine establishment and operating costs for a
manufacturing plant to produce the aggregate and include
a three year cash flow analysis.
Stage (iv) Assess the potential for licensing the technology and product
domestically and internationally.
Expanding on these objectives the consultant should consider the following
points:
Market Assessment
• Identify potential domestic and international markets for the aggregate.
19 Document entitled "Terms of Reference: Feasibility Study - Consultancy Submission - Recycling
Project".
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• Evaluate competitive advantage.
• Identify market competitors.
• Evaluate competitive re-action / retaliation (if any).
Raw Materials
• Identify sources of raw materials within Australia and overseas.
• Assess growth levels for raw materials for the Project.
• Identify availability of raw materials for the Project.
Labour Skills
• Assess specific labour skills necessary (if any) for the Production of the
aggregate.
Establishment Sites / Environmental Issues
• Identify suitable establishment site/sites for the recycling plant presenting
each on its own merits in relation to freight in and out, production costs,
administration costs, etc.
• Investigate sites in relation to Local Authorities, community support and
possible further expansion.
• Investigate all environmental issues relating to such establishment.
Commercial Viability
• Determine transport options and preferences.
• Investigate any potential tariff protection opportunities.
• Evaluate expected output in relation to supply and demand.
• Estimate establishment costs to meet identified market demand.
• Provide an estimate of running costs for a three year period based upon
the markets identified in Stage (I).
Licensing
• Assess the potential for licensing of the technology
• Evaluate licensing against establishment and production.
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CONSULTANT’S RESPONSE TO THE T.O.R. & GENERAL PROJECT
OVERVIEW The following information was provided in the introduction by the Consultant for
the Project, and provides a comparative overview of the Company before commencement of the Consultancy:
The above formal Terms of Reference (TOR) for the Consultancy have been
further discussed with the Project's proponents. The activity list and processes
described below build upon the original TOR, and are a result of joint discussions
held with Company Management (Mr Michael Walsh), DBIRD (Ms Del
Woodcock), other interested parties present at meeting 23 September 1994, and
further liaison with the technical consultants and ensuing discussions between all
parties.
The Consultant has endeavoured to closely follow the above-mentioned TOR,
and, as instructed, has addressed the proposed Feasibility Study in the same
format as the TOR with Section 3 of this Report in particular addressing the key
assessment issues.
Introduction
Petemic Technology Pty Ltd is a newly established company created essentially
for the purpose of commercialising apparently new, unique technology related
to the recycling of waste material such as building rubble, household garbage,
and non-radioactive waste.
The Consultants understand that this technology is commercially sensitive, and
accordingly will be required to sign an appropriate confidentiality agreement.
The Consultants (agreeable to this requirement), have therefore prepared this
proposal without full knowledge of the specific technology and its full
implications. Nonetheless, we believe that our approach is relatively simple and
robust and may be applied against the Project given its rigorous coverage.
The Company currently consists of several Directors whom have managed to
capitalise the business to initiate commencement of the feasibility and other first
stages. They have already identified a number of critical success factors which
include:
• the need to establish and quantify sources of material for establishing the
enterprise;
• the need to examine town planning and other issues, including
environmental issues, likely to affect the site location of the proposed
operations;
• the need to assess the market demand for final aggregate product as a
prelude to financial planning;
• the need to establish viability of the enterprise;
• the need to examine the best ways to protect the technology by way of
licensing or other means;
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• the need to develop documentation likely to attract suitable investors,
including private investors and / or bankers (in short, a "bankable
document"); and
• the need, not only to identify capital funding and other financial
requirements, but to establish management and all other resources
required for the Project to succeed to Pilot Plant stage.
This Consultancy Assignment has been designed to address these, and other
issues.
FURTHER BACKGROUND & FEASIBILITY STUDY CONSIDERATIONS
It is logical that the first step in proceeding with the proposed development is to
establish firstly, the market demand for enterprise's products, and, if apparent
demand is demonstrated, then proceed to conduct a feasibility study into the
Project's viability. This step will be based on, inter alia, the availability of raw
materials, required resources, and finally, proven financial soundness based on
cash flow and other related analysis.
In this way the consultancy assignment can be designed to examine firstly the
market and its constraints, and secondly (and most importantly), financial viability
taking account of environmental, labour, plant, equipment, and other related
issues. Having examined the first set of issues, the project is proposed to reach a
major "GO/NO GO" stage, at which point if viability is demonstrated, the
assignment could proceed to assisting the company with addressing the second
set of issues, i.e. establishing viability to the point where investor support can be
anticipated. That is to say, the Company will be in a position of achieving a commercial outcome.
The Consultant anticipates that a close working relationship will need to be
developed with Company executives - and possibly Mr Michael Walsh in
particular. This is not only to ensure that there is no duplication of effort, but to
also ensure that the Company is fully involved in each stage of the consultancy
whereby the process is interactive. The cost effectiveness of this approach has been factored into the quotation as detailed below.
Strategic Direction
Petemic Technology intend to set in place a strategic direction which will involve
them in the recycling industry.
Accordingly, a component of the Consultancy will involve a degree of market
research in order to establish the size, nature and scope in these markets. This will
ensure that the Company's entry has the best chances for success. Whilst the
proposed initial investment is probably (in relative terms) modest, the venture as
proposed does represent a significant challenge in terms of management, future
direction, technology protection, and funding.
General Comments
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In addition to factors mentioned above, there are a number of reasons why the
establishment of a technologically advanced recycling plant in Australia is prima
facie, a commercial proposition. These could include:
• An increase in world-wide effluent / waste disposal costs and more stringent
environmental controls - especially in Europe.
• Potentially low and continually falling labour intensity in processing /
recycling operations - primarily through technological developments.
• Access to suitable raw material (waste).
• A general awareness of the need to promote environmentally friendly
waste disposal methods.
In addition to proving the financial soundness of the Project, and the need to
protect its technology, the challenge for Petemic Technology is probably one
primarily of its ability to promote sales of recycled aggregate product. Whilst
there is little evidence (other than anecdotal) supporting the Company's ability or
effectiveness in this regard, the Consultants have numerous contacts in the
political, bureaucratic and financial sectors which, at the direction of Company
management, may be the subject of further action as the Project progresses.
PROPOSED ACTIVITIES
Required Evaluation (Brief)
Market Analysis - Market demand for the aggregate produced (current and
future), both domestic and international - Country x Country.
Sources of Raw Material Supply - Location and numbers.
Processed Recycled and Other Product Competition - Australia and international
- Profile each company.
Site Analysis - Sewerage or waste treatment - water supply - environmental
requirements - freight - local Government planning and requirements - power -
roads and other infrastructure.
Capital Items - land - buildings - equipment - working capital.
Financials - Revenue and expenditure budgets and analysis - return on assets -
break even points - cash flows etc.
Timing - strategic importance of completion dates etc.
Technology Protection - Licensing of the technology - domestically and
internationally.
Financial Assistance - apply for NIES, REDP or other Government assistance to
support this project.
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Recommendations
PURPOSE OF CONSULTANCY
The proposed consultancy is designed to cover the major elements of markets,
management, structure, supply, technology protection, and funding. This is
fundamental in the evaluation process in order to establish the viability of a
recycling plant which is capable of producing aggregate which attracts an
adequate market demand.
OBJECTIVES
In line with the Terms of Reference, the primary objectives of the Consultancy are
to:
✎ In overall terms, to ensure the key issues associated with the development
of a waste recycling plant are addressed. As mentioned previously, it is
believed that our approach is simple and robust.
✎ Provide a detailed marketing plan which defines the current and future
prospects for the domestic and international markets, and establishes the
availability of raw materials necessary to produce the aggregate.
✎ Prepare cash flow / profit and loss projections for the full planning period
(three year cash flow analysis) specifying likely returns and expenditures,
complete with sensitivity and break even analysis. The projections will
provide a basis for developing organisational performance measures, and
provide detail as to capital expenditure and working capital requirements.
✎ Provide an in depth site analysis which examines, inter alia, infrastructure
requirements, inputs (such as water supply, power supply, transport, etc.),
effluent control and statutory requirements, and outputs including
sewerage and waste treatment.
✎ Ensure the feasibility study (incorporating marketing, financial and
organisational plans) is sufficiently detailed to provide the Company's
Board with a clear direction in terms of the management and
implementation of the Strategy. This will include a mass and energy
balance, and additionally the assessment of specialist labour skills and
other resource requirements.
✎ Recommend the appropriate corporate mechanism for delivery of the
Strategy.
✎ Provide a detailed Implementation (Action) Plan identifying the key tasks
and allocation of resources.
✎ Assuming to this point that the proposed venture offers good prospects for
viability and success ...
✎ Assist with the practical aspects of
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• assessing the potential for licensing the technology and product
(both domestically and internationally), and
• ensuring that the information produced is in sufficient detail and
coverage, and in an appropriate format, for the purpose of providing
investor documentation
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PROJECT SUMMARY
The following information was provided by the Consultants for the purpose of
providing a brief Project description for public circulation as may be required
throughout the duration of the assignment.
P e t e m i c S o l i d W a s t e R e c o v e r y
The disposal of domestic waste has become an increasing world-wide problem. It will be essential to develop new systems for processing and reusing much of the waste that would otherwise be disposed of by expensive and environmentally hazardous landfill. Petemic Technology is a Queensland owned company that is developing new technology in waste recycling to produce useful products from domestic garbage. Petemic has lodged a patent application for a recycling process that treats domestic garbage, and solid building and demolition waste; to produce a commercially usable building material. The development phase of this technology is being supported by a grant from the Queensland Department of Business, Industry, and Regional Development (DBIRD). The Petemic process involves reduction of selected waste to a mass of finely divided particles of predetermined character; and compacting and processing the material to produce a relatively dense particulate product suitable for use as a building material, road base or moulding material for the production of bricks and tiles. The plastic intermediate material can be extruded into pipes, bricks or tiles that can be dried or baked into a range of attractive building products. Smaller pellets can also be produced that can be incorporated into other rigid structural materials such as concrete. The process is being developed to service areas of expanding population where the composition of the urban waste contains both household refuse and building scrap. The processing plant will be sited close to existing landfill installations and will significantly increase the useful life of each site. The process has been designed to meet all current environmental standards.
Additional details of the process may be obtained from:
Mr Michael Walsh
PETEMIC TECHNOLOGY PTY. LTD. A.C.N. 064 320 314
P O Box 435 Phone/Fax (07) 408 3844 Bribie Island Qld 4507 Mobile (015) 588 337
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S.W.O.T. ANALYSIS #1
Workshop held by the client in conjunction with Ms Helen Gibson has resulted in
the identification of the Company's perceived "Strengths, Weaknesses,
Opportunities and Threats" (SWOT) as follows:
STRENGTHS
• Expanding road construction programs
• Expanding hydroponic farming
• Reduce the need to provide recycling and landfill sites, with the resultant
reduction in costs to Local Authorities and the consumers.
• Use of timber mill waste products as fuel and raw material.
• Employment opportunities...technical, trade and clerical, as well as multi
skilling.
• Flexibility of energy source, and therefore of running costs.
• Co-operation between Local Authorities in joint management of
equipment and resources.
• Flexibility of raw material for production.
• No wastage of water due to in built recycling and reuse within the plant.
WEAKNESSES
• Failure of the Neutralysis program.
• The availability of suitably zoned land.
• The location of a suitable water supply and its proximity.
• Environmental constraints re. the emission of gases, etc. during the
production process.
• Prolonged period of wet weather and the impact of same on the supply of
raw materials.
• Negativity and/or resistance to a new product by consumers.
• Any interruption to the present level of the building industry.
• Storage on site of the required materials and any resultant potential
environmental (including health) problems.
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• No long term engineering or scientific data available concerning the
durability, etc. of the final products.
OPPORTUNITIES
• Reduction of environmental problems with the reduced need for waste
disposal sites, landfill, sites etc.
• Development of new building designs, engineering practices, etc. using the
new light weight products.
• Ability to build up an experienced consultancy group to provide ongoing
expertise to purchasers.
• Potential for export of technology and the final products both interstate
and overseas.
• To maintain costs at a reasonable level for construction products by an
efficient use of recycled products.
• The use of this technology will extend the life of natural resources with
which its products may be substituted.
• Enable the joint involvement of Local Authorities with private enterprise in
the process, and the opportunity for a local Authority to be self sufficient in
some forms of road making materials (see new Local Government Act).
THREATS
• Objection by waste management companies presently operating landfill
programs for local authorities.
• Objection by producers and suppliers of extractive resources for road
making purposes, etc.
• Government (all three levels) support not forthcoming for the project.
• Potential for industrial sabotage by opponents.
• The possibility of the introduction of Government imposed taxes (Federal,
State or local) on recycled products (e.g. as is on recycled paper).
• The reappearance of the Neutralysis process.
As an outcome of the above SWOT, the Consultant intends to set in place a
strategic planning workshop during the next phase of the Project, which will
identify:
1. Priority Issues for Action planning
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2. Business Objectives
3. Company Mission Statement
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S.W.O.T. ANALYSIS #2
A further workshop held was led by the Consultant on 25 March, 1995, resulted in
the identification re-definition and amendment of the Company's perceived
"Strengths, Weaknesses, Opportunities and Threats" (SWOT) as follows:
(note: SWOT's have been prioritised in preparation for the development of Strategic Objectives. In addition, numbering has been "doubled up" where the issues were considered to be of equal importance, or where they were considered to be essentially the same issue.)
STRENGTHS
1. Reduce the need to provide recycling and land fill sites 1. Environmental Planning legislation 2. Co-operation of local authorities with Petemic Technology 3. Use of timber mill waste products, mine sites, and others 4. Transportable plant with some limits e.g. foundation
• Expanding road construction programs
• Expanding hydroponic farming
• Employment Opportunities
• Flexibility of Energy source (site specific)
• Flexibility wider range of raw material for production
• Water recycling (no wastage)
• Freight advantages of "light weight" Petemic product.
• Development of a light weight building block/brick
• More competitive than Neutralysis.
• Ability to site technology/plant world-wide provided constraints are met
(environmental)
• Majority of plant and equipment available "off the shelf"
• Potential market - huge
• Ready market for aggregate in some countries that lack appropriate
natural resources.
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WEAKNESSES
1. No long term scientific data available on Petemic products 2. Lack of substantial capital required to commercialise the process. 3. Confidentiality of Project 4. Apparent failure of Neutralysis program
• Availability of suitably zoned land in some areas (site specific)
• Location/proximity of water supply
• Environment constraints (process)
• Impact of weather on raw materials
• Consumer reaction to new product
• Viability of process connected to viability of building industry
• Storage problems: raw material supply (especially domestic refuse)
• Petemic product is untested - may fail to meet engineering standards. e.g.
stress tests etc.
• Product variations according to raw material supply
• Lack of specific knowledge on end product
• Lack of some inputs for some sites e.g. building rubble in non-urban areas
• Unknown availability of appropriate furnace equipment
• Durability of plant - unknown
• Business systems not formalised
• Personnel - no technical expertise available "in house"
• Market size unknown
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OPPORTUNITIES
1. Reduction of environmental problems (landfill) 1. Assisting State and Federal Governments in meeting their waste reduction
objectives by year 2000 - 2006, especially landfill. (Uniquest reckons reduce waste by 80%) Un-substantiated
1. Environmental planning legislation. 2. Potential for licensing technology - $ sales (license of plant) number is high. 2. Plant construction by contract $ sales attached to # above. 2. Potential for consultancy to purchasers of plant, technology and aggregate
(intellectual property, computer packages, etc.) 3. Potential for extending life of extractive natural resources e.g. clay,
hardrock, sand.
• New products/designs available through Petemic light weight aggregate.
Development of new building products.
• Export of above.
• Efficient use of recycled material (both in and out?)
• Joint involvement with local authorities
• Self sufficiency for road-making materials for local authorities (customers at
"both ends")
• Saleability of the process on the basis of potential "green tax" levy.
• Possibility for availability of vast raw material supply resulting from natural or
other disaster(s).
• More efficient use of rail system - back-loading of Petemic product to more
remote areas.
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THREATS
1. Objections by existing waste management companies 1. Government support for project - unknown quantity (all 3 levels) 1. Existing contracts with existing waste management companies who have
long term contracts 2. Re-appearance of the Neutralysis process and appearance of other
processes. (technology risk) 3. Objections by existing suppliers of extractive resources.
• Potential for industrial sabotage
• Possibility of government taxes on recycled products
Neutralysis Waste Processing Plant - located at Rocklea (Brisbane, Queensland). This plant has since been sold to an (undisclosed) overseas buyer, and reportedly re-commissioned overseas. The technology has reputedly been retained or sold separately. The process has apparently proven non-viable, however is identified
as a “threat” because of it’s possible re-appearance. The Petemic process, however, needs to be differentiated to ensure support by potential clients.
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STRATEGIC MANAGEMENT PLAN
STRATEGIC OBJECTIVES A result of the Company having conducted a SWOT analysis process, the
following Strategic Objectives have been developed:
1. To promote the Petemic process as a means of reducing the need for land
fill sites in compliance with State/Federal Government objectives and
environmental planning legislation.
2. To gain the co-operation of local authorities and other regulators in regard
to:
• Site identification
• Use of collected non-toxic, non-radioactive refuse
• Participation in Project and use of local resources
• Existing waste management contract obligations
3. To utilise the Petemic process as a means of recycling "non-recyclable"
problem waste products such as industrial, timber, mining, building and
other waste
4. To ensure the research and development of the technology enables the
Petemic process to handle variable volumes of raw material, with
maximum mobility.
5. To obtain independently verified scientific data/analysis on the Petemic
products and processes.
6. To identify capital requirements up to commercialisation stage.
7. To maintain the confidentiality of the Petemic process.
8. To promote the distinctiveness of the Petemic process as compared to
other waste management processes, especially Neutralysis.
9. To develop viable products resulting from the proving of the Petemic
process, including:
• intellectual property
• technology licenses
• end-product(s) - aggregate etc.
• construction contracts
• etc.
10. To promote the Petemic process as a means of extending the life of existing
and potential extractive resources, including sand, hardrock, and
aggregate.
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11. To closely monitor alternative waste management processes and
practices.
12. To promote the Petemic process as being an environmentally friendly
alternative to the use of extractive resources, e.g. hardrock, clay, sand,
aggregate.
MISSION STATEMENT
The following Mission Statement has been adopted20:
‘‘Solving Today's Waste With Tomorrow's Technology’’
ACTION PLANS As a result of the formulation of Strategic Objectives, the following Action Plans
have been developed by the Consultant for adoption:
Appendix D provides full details of the Strategic Management Action Plan, which
is summarised below. It provides, inter-alia, the following information:
1. Action detail (what the Action is)
2. Action Duration (the estimated time required to complete the Action).
3. Action Scheduled Start (when the Action should, or is due to, commence).
4. Action Scheduled Finish (when the Action is due for completion).
5. Action Predecessors (what other actions need to be undertaken before the
Action in question - if any).
6. Action Resources (who / what resource is allocated to undertake or support
the Action).
7. Critical Path (the development of a "Pert Chart" or similar which allows an
overview of those Actions which are critical to the implementation of the
Project, and / or those Actions most likely to cause a delay in implementing
the Project).
8. A monthly summary of Actions required to be undertaken to assist in
Managing the Project. This will ensure that the Project is kept "on-track".
20 The Mission Statement has been designed for incorporation on marketing material, and other
publicly distributed information
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1. TO PROMOTE THE PETEMIC PROCESS AS A MEANS OF REDUCING THE NEED FOR LAND FILL SITES IN COMPLIANCE WITH STATE / FEDERAL GOVERNMENT OBJECTIVES AND ENVIRONMENTAL PLANNING LEGISLATION
1. Prepare Project Summary document suitable for public circulation
2. Circulate Project Summary document to interested parties including
Council, Government, etc.
3. Lobby Council and others as appropriate, appraising them of the Petemic
process advantages
2. TO GAIN THE CO-OPERATION OF LOCAL AUTHORITIES AND OTHER REGULATORS IN REGARD TO:
* SITE IDENTIFICATION * USE OF COLLECTED NON-TOXIC, NON-RADIOACTIVE WASTE * PARTICIPATION IN PROJECT AND USE OF LOCAL RESOURCES * EXISTING WASTE MANAGEMENT OBLIGATIONS
4. Negotiate suitable site for the Petemic Plant with Council
5. Discuss the impacts of the Petemic Process with Council, especially with
regard to waste reduction, utilisation of Council resources, possible
aggregate sources, etc.
6. Determine existing waste management obligations of the Caboolture Shire
Council
3. TO UTILISE THE PETEMIC PROCESS AS A MEANS OF RECYCLING "NON-RECYCLABLE" PROBLEM WASTE PRODUCTS SUCH AS INDUSTRIAL, TIMBER, MINING, BUILDING, AND OTHER WASTE
7. Commence process of obtaining investor support for Commercialisation of
the Project
8. Commence set-up of Pilot Plant to demonstrate the effectiveness and
viability of the Petemic Process
9. Continue with research and development activities to prove the Petemic
Process prior to Commercialisation and Pilot Plant set-up, especially having
regard to the viability of utilising a wide range of waste inputs
10. Commence testing of various waste inputs to prove the Petemic process
4. TO ENSURE THE RESEARCH & DEVELOPMENT OF THE TECHNOLOGY ENABLES THE PETEMIC PROCESS TO HANDLE VARIABLE VOLUMES OF RAW MATERIAL, WITH MAXIMUM MOBILITY
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11. Commence testing of variable volumes of various waste inputs to prove the
Petemic process
12. Conduct test experimentation of various waste product inputs to assist in
the proving of the Petemic process
5. TO OBTAIN INDEPENDENTLY VERIFIED SCIENTIFIC DATA/ANALYSIS ON THE PETEMIC PRODUCTS AND PROCESSES.
13. Commence the obtaining of scientific analysis of Petemic product from
accredited laboratory (once product available)
14. Determine scientific test requirements for Petemic products and processes
6. TO IDENTIFY CAPITAL REQUIREMENTS UP TO COMMERCIALISATION STAGE
15. Determine Capital requirements up to Commercialisation stage
7. TO MAINTAIN THE CONFIDENTIALITY OF THE PETEMIC PROCESS
16. Documentation to be secured at all sites
17. Obtain Sign-off for all external discussions (with third parties) with Petemic
management and lead Consultant prior to progressing
8. TO PROMOTE THE DISTINCTIVENESS OF THE PETEMIC PROCESS AS COMPARED TO OTHER WASTE MANAGEMENT PROCESSES, ESPECIALLY NEUTRALYSIS.
18. Ensure the distinctiveness of the Petemic Process is included in Project
Summary Document
19. Ensure the distinctiveness of the Petemic Process is included in all major
documentation, especially that provided for public release
9. TO DEVELOP VIABLE PRODUCTS RESULTING FROM THE PROVING OF THE PETEMIC PROCESS, INCLUDING
* INTELLECTUAL PROPERTY; * TECHNOLOGY LICENSES; * END PRODUCT(S) - AGGREGATE, ETC.; * CONSTRUCTION CONTRACTS; * ETC.
20. Prove the viability (Feasibility Study) of the Petemic process
21. Feasibility Study (and Financial viability of the Petemic Process) completed
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22. Commence continuation of Research and Development of Petemic end-
Products, including the development of both "physical" end products, and
the sale of intellectual and other property
23. Ensure the Feasibility Study for the Petemic Process includes information on
potential end products, other than aggregate, e.g. intellectual property,
contracts for constructing other plants, etc.
10. TO PROMOTE THE PETEMIC PROCESS AS A MEANS OF EXTENDING THE LIFE OF EXISTING AND POTENTIAL EXTRACTIVE RESOURCES, INCLUDING SAND, HARDROCK, CLAY AND AGGREGATE.
24. Ensure the Project Summary Document outlines the potential for extending
the life of extractive resources
25. Lobby Council with details of extending-life capability of the Petemic
process in relation to extractive and other resources
11. TO CLOSELY MONITOR ALTERNATIVE WASTE MANAGEMENT PROCESSES AND PRACTICES
26. Petemic Management to join Waste Management peak body / industry
organisation
27. Petemic Management to enquire re subscribing to appropriate
organisations for the regular review of relevant literature on the subject of
waste management and recycling
28. Consultants to monitor other / alternate waste management processes
that may impact upon viability of the Petemic process
12. TO PROMOTE THE PETEMIC PROCESS AS BEING AN ENVIRONMENTALLY FRIENDLY ALTERNATIVE TO THE USE OF EXTRACTIVE RESOURCES, E.G. HARDROCK, CLAY, SAND, AGGREGATE.
29. Lobby Council (and other appropriate organisations, including
"Greenpeace" and others) on the environmental friendliness of the Petemic
Process
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MARKET PROSPECTS FOR THE PETEMIC SOLID WASTE RECOVERY
PROCESS
THE MARKET SURVEY - COMMENTARY
This report assumes that anyone who uses extractive products are potential
clients for the Petemic product. There is no other basis on which a survey can be
conducted, viz:
1. There is no product to present to anyone
2. No specifications of any product are available
3. No price of any product has been suggested
4. No details of the process can be revealed (a condition of the consultancy).
Moreover, the Consultants have been requested not to approach or discuss the
marketing of the product with the major potential competitors who are also the
major users of aggregate materials. Discussions have been held with the
Caboolture Shire Council, who would be a major potential customer.
In the absence of any information at all on the product, its specification or price,
a survey of potential customers would not prove to be a useful exercise, and may
even be counterproductive to the project.
The only proof that will ever exist in relation to the Petemic process will be survival
in the marketplace.
As to the surveys and product demand, a very extensive literature search has
been conducted of local and overseas material to provide background material
to assist Petemic in their planning.
The Consultants point out that additional work (other than that undertaken) will
be of no benefit in the absence of better information on the process, and until a
product with defined specifications is available for presentation to the market.
INTRODUCTION & OVERVIEW
The disposal of domestic waste has become a major world-wide problem. The
environmental aspects of landfill waste disposal, and rising disposal costs have
directed ever increasing attention towards recycling.
In Australia and the USA, about one tonne of waste is produced per person every
year. In Europe, per capita waste production is somewhat lower, often only
about half the Australian level, but population density is higher, and disposal
problems more severe.
Although recycling technology has been developed for the more valuable
components of domestic and industrial waste, the cost of recovery and
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processing for the lower value components has invariably exceeded the
commercial value of these materials.
The quantity of waste material potentially available for treatment is immense. In 1971, the US Environmental Protection Agency (EPA) estimated that municipal
solid waste (MSW) generation in the USA amounted to 125 million tonnes annually
or 3.22 lb. per person per day excluding industrial waste. By 1993 the quantity of
MSW had risen to 207 million tons, or 4.4 pounds per person per day. After
materials recovery for recycling and composting, discards were 3.4 pounds per
person per day. Virtually all of these discards were combusted or sent to
landfills21.
EPA now projects that the per capita generation rate will decrease by the year
2000 to 4.3 pounds per person per day. These projections are based in part on
source reduction efforts, especially actions to divert yard trimmings from the solid
waste management system through backyard composting and leaving grass
clippings on lawns. States that include more than half of the U.S. population
already have regulations leading to these actions. Other source reduction
activities, e.g., reduced packaging, are also contributing to this decrease.
Even with significant source reduction efforts, generation of MSW is projected to
increase to 218 million tons in 2000. However, discards to combustion facilities or
landfills are projected to decline from 162 million tons in 1993 to 152 million tons in
2000 assuming a 30 percent recovery rate for recycling and composting is
achieved.
Recovery of materials for recycling and composting was estimated to be 22
percent of MSW generated in 1993, up from 17 percent in 1990. Combustion
facilities managed 16 percent of total generation, and the remaining 62 percent
of the municipal solid waste stream was sent to landfills or otherwise disposed.
Between 1990 and 1993, recovery of materials for recycling and composting
increased from 38 million tons to 45 million tons, an increase of 18 percent.
Recovery of paper and paperboard accounted for over half of this increased
tonnage. Yard trimmings for composting contributed the next largest increase in
tonnage recovered.
The percentage of MSW discards continues to decline due to increased levels of
recovery for recycling and composting. In 1985, 83 percent of MSW was
landfilled compared to 62 percent landfilled in 1993. Even with this reduction,
land filling continues to be the single most predominant waste management
method into the year 2000.22
Recent evaluations in Australia confirm that the quantities are of similar or greater
magnitude. In Sydney alone, up to 3.4 million tonnes of solid waste has been
produced each year23, and until recently, the quantity has been increasing at a
rate faster than population growth.
21 Environmental Protection Agency. USA (1994), "Characterisation of Municipal Solid Waste in the
United States. Executive Summary" EPA Publication No EPA530-S-94-042
22 Environmental Protection Agency. USA (1994), "Characterisation of Municipal Solid Waste in the
United States. Executive Summary" EPA Publication No EPA530-S-94-042
23 Cook, J.B. & van den Broek, B. (1994), "A Plan to Achieve 50% Waste Diversion in Sydney". in Achievements and Challenges; Proceedings of the 2nd National Hazardous & Solid Waste
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A goal for Australia has now been established under the National Strategy for
Ecologically Sustainable Development, to significantly reduce landfill disposal of
waste.
The New South Wales Government plans to reduce by half the amount of solid
waste directed to landfill by the year 2000. NSW believes that this goal can be achieved by a mix of waste avoidance, recycling, and resource recovery initiatives. The Government also anticipates that the average increase in the
cost of waste management will be about 5% per year between now and the
year 200024.
In Victoria, the Recycling and Resource Recovery Council (established under
1992 legislation) has also adopted a target of reducing the total waste going to
landfill by 50% by the year 200025.
Tasmania has also identified an increasing problem in waste disposal. In 1994,
the Tasmanian Government released it's draft policy to deal with the problem,
and proposes to replace existing license fees with new fees based on the volume
of waste. Tasmania has set a target of reducing the volume of waste dumped at
municipal tips by 25% by the end of 1995, and by 50% by the year 200026. The ACT legislature has also adopted a target of reducing landfill by 50% by the
year 200027. Solid waste diversion objectives in overseas countries (Europe and North
America) now vary between 8% and 60%, with target dates ranging up to the
year 200028.
The following summary graph, and following table shows the solid waste diversion
objectives for some specific locations.
Convention, Melbourne. Australian Water & Wastewater Association and Waste Management
Association of Australia; Artarmon NSW. 39-42.
24 Cook, J.B. & van den Broek, B. (1994), "A Plan to Achieve 50% Waste Diversion in Sydney". in Achievements and Challenges; Proceedings of the 2nd National Hazardous & Solid Waste
Convention, Melbourne. Australian Water & Wastewater Association and Waste Management
Association of Australia; Artarmon NSW. 39-42.
25 Victorian Government (1994), "The Resource and Recovery Council; Grant Programs 1993-94.
"Reported at the Local Government Conference - Waste.
26 Skinner, J.H. (1975), "Demonstration of Systems for the Recovery of Materials and from Solid Wastes"
Resource Recovery and Utilisation, ASTM STP 592, American Society for Testing and Materials. 53-63
27 Graham, R.A., Sharpley, G.E., & Thorpe, J.L. (1994), "Environmental Audits and Management Planning
for Canberra's Landfills" in Achievements and Challenges; Proceedings of the 2nd National Hazardous
& Solid Waste Convention, Melbourne, Australian Water & Wastewater Association and Waste
Management Association of Australia; Artarmon NSW. 149-156.
28 Caboolture Shire Council (1993), "Waste Management Strategic Plan" Sinclair Knight Consulting
Engineers for Caboolture Shire Council.
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0%
20%
40%
60%
80%
100%
2000
"near future"
"next few years" 1995
2000 2000 20002000
2000 (varies)
2030
Jurisdiction
Ob
ject
ive
Great Britain
Switzerland
Switzerland (Zurich)
Germany (Hanover)
Ontario
Denmark
Canada
Netherlands
United States
Toronto (metro)
Solid Waste Diversion ObjectivesSelected World-wide Jurisdictions
Sourc e: Sinc la ir Knight, Wa ste Ma na gem ent Stra tegic Pla n for Ca b oolture Shire
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Solid Waste Diversion Objectives29
Jurisdiction Objective
Target Date
Netherlands 54% 2000
Great Britain 8% 2000
Denmark 50% 2000
Switzerland 16% "near future"
Zurich, Switzerland 40% "next few years"
Hannover, Germany 40% 1995
Canada 25% 1992
50% 2000
Ontario 25% 1992
50% 2000
Metro Toronto 30% 1992
45% 1995
60% 2000
70% 2010
90% 2030
United States 25% 1992
25% likely to be 1995
extended 50% possible 2000
US States 15% to 60% 2000 (varies)
US Cities
Berkeley, California 44% 1995
62% 2000
Newark, New Jersey 60% 1995
Seattle, Washington 60% 1998
Philadelphia,
Pennsylvania
50% 1997
Chicago, Illinois 39% 1995
San Diego County,
California
30% 1992
Los Angeles, California 25% 1995
50% 2000
Notes: (1) As a percentage of the total Waste Stream by weight
In May 1994, the Queensland Government Department of Environment and
Heritage published a Draft Waste Management Strategy for Queensland. The
Queensland strategy also encompasses the National Strategy for Ecologically
Sustainable Development, and covers three basic issues described as being
essential to effective waste management30;
1. Waste Minimisation which seeks to reduce by prevention and recycling
options, the volume of wastes which ultimately must be destroyed or
disposed of.
29 Source: Sinclair Knight, Waste Management Strategic Plan for Caboolture Shire
30 Queensland Department of Environment and Heritage (1994), "Draft Waste Management Strategy for
Queensland"
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2. Waste Containment which seeks to handle, treat, and finally dispose of
wastes without adversely affecting the environment or public health.
3. Pricing Equity which seeks to allocate waste disposal costs, so that those
benefiting from activities which lead to waste generation will be expected
to pay all the costs associated with disposal of the wastes.
The adoption of "user pays" principles in refuse disposal is also NSW Government
policy, and appropriate charges are to be progressively introduced following
updating of the Local Government Act in 1993.
It is now clear that State and Federal Government environmental and pricing
policies can be expected to cause a steep rise in the cost of conventional waste disposal practices including landfill. Although specific details have not been collected for overseas countries, it is likely that similar policies and outcomes will apply in most of the developed countries.
It is in this context that Petemic Technology Pty Ltd is developing a strategy to
satisfy the environmental goal of reducing landfill disposal, whilst at the same
time producing a commercial raw material for the construction industry that can
compete with landfill disposal for the lower value components of municipal
waste.
The initial step in the Petemic strategy will be to test the cost/benefit of the
Company's technology for solid waste recovery using a commercial scale plant,
located in the Shire of Caboolture.
The Petemic plant will use domestic garbage and builders rubble to produce a
mass of finely divided particles of predetermined character. This feedstock will
then be compacted and processed to produce a relatively dense particulate
product suitable for use as a building material, road base, or as a moulding
material for the production of bricks and tiles. One particular advantage of the
Petemic strategy is that the product will have a range of local uses, and will not
require extended transport to it's market.
BACKGROUND
A number of studies have been carried out on Australian solid waste, and how it
might be recycled to avoid landfill disposal. Work by van den Broek and Hutton
(1992) set out the nature of the Sydney solid waste stream and presented an
analysis of the materials that could be most readily diverted from landfill into
beneficial use. This work provided for the first time in NSW a theoretical basis for
development of a plan to achieve the Government's ambitious waste diversion
target. In parallel to this work, Cook (1992) examined waste disposal pricing as a
means to effect better waste management, including both economic incentives
and disincentives31.
Prior to these initiatives, a process known as "Neutralysis" had been developed in
Australia during the early 1980's to convert municipal, commercial and Industrial
31 Cook, J.B. & van den Broek, B. (1994), "A Plan to Achieve 50% Waste Diversion in Sydney". in
Achievements and Challenges; Proceedings of the 2nd National Hazardous & Solid Waste
Convention, Melbourne. Australian Water & Wastewater Association and Waste Management
Association of Australia; Artarmon NSW. 39-42.
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solid wastes, into an inert lightweight building aggregate suitable for the
production of structural concrete, masonry blocks, and other building products.
A nominal 25 tonne per day pilot plant was built in Brisbane to provide
information for the development of a commercial scale facility. At that time, the
capital cost of a commercial scale Neutralysis plant was estimated to be up to
$A100 million with an annual operating cost of about $A8 million. The developers
of the process estimated that revenues derived from waste disposal gate
charges, the sale of aggregate, and power generation from surplus heat, would
more than offset capital service charges and operating costs for the process32.
However, the pilot plant did not achieve the cost/benefit targets set by the
Brisbane City Council, and further development did not proceed at that time33.
The Neutralysis project appears to have come before it's time. Perhaps the
capital and operating costs were too high to encourage commercial investment.
Moreover, public attention to environmental issues was less intense in the 1980's
than it is today. Although refuse disposal costs in Queensland were rising at that
time, landfill was ultimately chosen as the cheapest and most appropriate option
by the Brisbane City Council.
The present Petemic strategy is to produce a similar lightweight aggregate to
that produced by the Neutralysis method, but with a relatively simple process
requiring a lower level of capital investment and operating cost. At the present
stage of development, the Petemic process does not incorporate surplus heat
recovery (also known as refuse derived fuel (RDF), or power generation.
POTENTIAL FUTURE WASTE PRODUCTION
Modern recycling policies have tended to reduce the quantity of waste being
directed to landfill in Australia. However, these policies alone are unlikely to meet
Government waste disposal targets. A recent paper by Cook and van den Broek
delivered to the 2nd National Hazardous & Solid Waste Convention held in
Melbourne in 1994, describes the situation in the Sydney metropolitan area34.
In 1990 a total of 3.4 million tonnes of solid waste was reported as having been
generated in the Sydney metropolitan area. Since 1990 there has been a
reduction in the quantities of waste recorded as received at disposal sites, to
about 2.8 million tonnes per year. This reduction has been attributed to NSW
Government waste minimisation initiatives introduced over recent years,
including recycling and other resource recovery initiatives. The construction of
the new runway at Sydney airport also provided a destination for a large
proportion of the available solid fill and builders rubble. The effects of the
32 Stone, P. “Neutralysis - A Use for Municipal Waste” Proceedings of the International Conference of
Solid and Hazardous Waste Management (Enviroworld), Singapore, June 1991.
33 The Consultant has advised the Project proponents that the Neutralysis plant and equipment was
shortly coming up for auction. As at date of writing, the Auction did not proceed, and the
Consultants understand that the whole of the Neutralysis Plant was sold privately to an overseas
interest.
34 Cook, J.B. & van den Broek, B. (1994), "A Plan to Achieve 50% Waste Diversion in Sydney". in Achievements and Challenges; Proceedings of the 2nd National Hazardous & Solid Waste
Convention, Melbourne. Australian Water & Wastewater Association and Waste Management
Association of Australia; Artarmon NSW. 39-42.
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recession may have also influenced the growth rate of waste disposal during this
period35.
A comparison of the estimated waste generation rates for some municipal areas
in Australia is contained in Table 1.
Table 1. Waste Generation for Selected Australian Municipalities36 Kilograms per person per year.
Caboolture Brisbane Perth Sydney Port
Stephens37
Domestic waste 387 555 480
Industrial/Builders 481 460 500
Total 868 1015 798 980 711
Figures cover various periods between 1989 and 1993.
0
200
400
600
800
1,000
1,200
Caboolture Brisbane Perth Sydney Port Stephens
Domestic waste Industrial/Builders Domestic or Industrial
Waste Generation for Selected Australian Municipali ties Kilograms per person per year.
Source: Sinclair Knight, Waste Management Strategic Plan for Caboolture Shire
Within the present waste management systems in Australia, large quantities of
materials are now being recovered for re-use and recycling. While complete
statistics are not available, the amount of recovery in Sydney is believed to be of
35 Brookes, G., Kenley, R., Kerby, N., & Ellwood, D. (1994), "Shire of Hornsby: Economic & Operations
Feasibility Study for Major Recycling Initiatives and a Council Operated Transfer Station" in Achievements and Challenges; Proceedings of the 2nd National Hazardous & Solid Waste
Convention, Melbourne. Australian Water & Wastewater Association and Waste Management
Association of Australia; Artarmon NSW. 141-148.
36 Source: Sinclair Knight, Waste Management Strategic Plan for Caboolture Shire
37 Port Stephens Shire is approximately 180 km from Sydney, and is in an area of similar urban and
commercial / industrial characteristics to Caboolture Shire, but with a reduced annual growth rate.
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the order of one million tonnes per annum. This level of recovery is being
achieved mainly from commercial and industrial sources, and includes materials
such as scrap metal, plastic, and paper products, whose inherent value makes
their recovery for recycling commercially attractive.
In addition, education of the commercial sector on waste minimisation,
combined with Waste Service pricing policies which discourage mixing
recyclable materials with waste, is now having the effect of encouraging source
separation in commerce and industry for materials whose recovery may not have
been commercially attractive in the past. Furthermore, there has been a
growing rate of recovery from the domestic waste stream as a result of councils
providing better recycling services, and with the assistance of policies such as the
Council Recycling Rebate Scheme.
While levels of waste minimisation and recycling may still increase somewhat
under present policies, new initiatives will be required to remove an additional
one million tonnes from the Sydney solid waste stream to meet the NSW
Government's 50% waste diversion target by the year 2000.
Cook and van den Broek38 have predicted that the key tools available to meet the 50% diversion target for Sydney will be additional waste avoidance (particularly in the commercial and industrial sectors), recycling, green waste removal and processing; and new processing technologies such as Neutralysis, advanced composting, and refuse derived fuels (RDF).
WASTE DISPOSAL COST ISSUES
The weighted average disposal cost for solid waste in Sydney was about $29.50
per tonne in 1993. It is generally conceded that most of the new recycling and
processing technologies have hitherto exceeded this cost. However, available
landfill capacity in the Sydney region is limited, and as this capacity is exhausted,
alternative disposal options have been estimated at about double the present
cost. In addition, avoided environmental impact and disamenity costs, although
difficult to quantify, will also favour increased diversion. Table 2 summarises the
estimated cost of these technologies for the Sydney metropolitan area.
Table 2. Likely Disposal Charges for New Technologies39
Green waste processing $40 per tonne
Neutralysis $70 per tonne
Composting $60 per tonne
RDF $70 per tonne
Based on these costs, and assuming that funding support of $20 per tonne will be
required to remove additional tonnes of waste by avoidance and recycling, the
38 Cook, J.B. & van den Broek, B. (1994), "A Plan to Achieve 50% Waste Diversion in Sydney". in
Achievements and Challenges; Proceedings of the 2nd National Hazardous & Solid Waste
Convention, Melbourne. Australian Water & Wastewater Association and Waste Management
Association of Australia; Artarmon NSW. 39-42.
39 Source: Cook, J.B. & van den Broek, B. (1994), "A Plan to Achieve 50% Waste Diversion in Sydney". in Achievements and Challenges; Proceedings of the 2nd National Hazardous & Solid Waste
Convention, Melbourne. Australian Water & Wastewater Association and Waste Management
Association of Australia; Artarmon NSW. 39-42.
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estimated weighted average cost for waste disposal in Sydney expressed in 1993
dollars would increase as shown in Table 3.
Table 3. Estimated Average Sydney Waste Disposal Costs40
Weighted Average Cost
1993 29.50
1994 30.70
1995 33.00
1996 35.00
1997 37.10
1998 38.35
1999 39.70
2000 41.40
The above information and trend is more clearly demonstrated in the graph
below:
Weighted Average Cost
19931994
19951996
19971998
19992000
$0$5
$10$15$20$25$30$35$40$45
Estimated Average Sydney Waste Disposal Costs
Dollars per tonne
In the United States of America, disposal costs may be considerably higher.
Thomas Duston (in Recycling Solid Waste; 1993) reports that the 1991 tipping fees
for residential trash at five modern disposal sites in New Hampshire, USA ranged
40 Source: Cook, J.B. & van den Broek, B. (1994), "A Plan to Achieve 50% Waste Diversion in Sydney". in
Achievements and Challenges; Proceedings of the 2nd National Hazardous & Solid Waste
Convention, Melbourne. Australian Water & Wastewater Association and Waste Management
Association of Australia; Artarmon NSW. 39-42.
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from $US40 to $US110 (trash to energy plants or lined landfill). This cost is
equivalent to $A55 to $A150 at the 1995 exchange rate. Costs in other US States
were said to be similar41.
In 1993, Sinclair Knight and Partners prepared a Waste Management Strategic
Plan for the Caboolture Shire Council, and reviewed the options for disposal
methods up to the year 2022. Sinclair Knight estimated the cost of simple land
filling in the Caboolture Shire at $10 to $15 per tonne. Land filling after pre-
treatment was expected to be double this cost, and advanced technologies
such as incineration, pryrolysis, and Neutralysis were all expected to cost more
than $50 per tonne, with capital costs exceeding $30 million for each of the
advanced options42.
The Industry Commission recently conducted an inquiry into waste recycling and
noted that:
"Many Councils and Waste Management Authorities may not be charging enough to cover the real costs to the community and provide for site replacement and environmental costs.
The Commission went on to state:
''that while Councils and Waste Management Authorities persist in charging unrealistically low disposal rates, the public will continue to discard rather than recycle. The public is, generally speaking, quite willing to participate in recycling programs on environmental grounds, confident that recycling is conserving material resources."
In it's Waste Management Strategic Plan for the Caboolture Shire Council, Sinclair
Knight and Partners made the following comments on recycling options43:
"It is likely that in the short term, recycling will provide the bulk of waste diversion schemes being employed by local authorities. The viability of any recycling scheme is dependent on many factors including the cost of collection, the market value of the material less the cost of transport to the market, and the volume of material collected which is dependent on community participation rates. The viability of recycling schemes are particularly affected by remoteness of markets for recyclable materials, and transport costs are a major constraint. On a commercial basis, recycling schemes are viable if the cost of the recycling is less than the value of the recycled material. However, this does not account for the cost savings in waste disposal. To this extent, Councils should subsidise or otherwise provide assistance to recycling."
The present recycling initiatives have been largely directed at higher value
materials that can be easily separated. These include metal scrap, glass, plastics
and paper. Most of the potential for the recovery of these materials may have
been already exploited.
41 Duston, Thomas E. (1993) "Recycling Solid Waste" Quorum Books, Connecticut, ISBN: 0-89930-754-X
42 Caboolture Shire Council (1993), "Waste Management Strategic Plan" Sinclair Knight Consulting
Engineers for Caboolture Shire Council.
43 Caboolture Shire Council (1993), "Waste Management Strategic Plan" Sinclair Knight Consulting
Engineers for Caboolture Shire Council.
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Other municipal waste of lower value including undifferentiated domestic waste
and builders rubble, may not be so easily amenable to recovery by separation.
However, concrete and masonry products can be used as construction site fill or
crushed and screened to produce both drainage and road base materials. The
recent construction of the third airport runway into Botany Bay used a significant
proportion of treated demolition material. The Industry Commission in 1991
estimated that 80% of Sydney's demolition rubble was being recycled at that
time44. However, the long term opportunities for the economic construction site
disposal of untreated hard fill may not match the recent Sydney performance.
One of the existing landfill sites in the Caboolture Shire - located at Boundary
Road, Narangba. Sinclair Knight & Partners report that trials undertaken in Brisbane suggest that
crushed and screened masonry rubble can be produced for about $7.50 per
tonne45. At this price the product is a competitive substitute for quarried materials. Estimates by Brookes et al for the Shire of Hornsby north of Sydney
(1994), suggest that the reuse of crushed aggregate from clean and hard fill
could save the Hornsby Council up to $14 per tonne for materials otherwise
purchased46.
44 Brookes, G., Kenley, R., Kerby, N., & Ellwood, D. (1994), "Shire of Hornsby: Economic & Operations
Feasibility Study for Major Recycling Initiatives and a Council Operated Transfer Station" in Achievements and Challenges; Proceedings of the 2nd National Hazardous & Solid Waste
Convention, Melbourne. Australian Water & Wastewater Association and Waste Management
Association of Australia; Artarmon NSW. 141-148.
45 Caboolture Shire Council (1993), "Waste Management Strategic Plan" Sinclair Knight Consulting
Engineers for Caboolture Shire Council.
46 Brookes, G., Kenley, R., Kerby, N., & Ellwood, D. (1994), "Shire of Hornsby: Economic & Operations
Feasibility Study for Major Recycling Initiatives and a Council Operated Transfer Station" in
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Moreover, the charges levied for the private dumping of industrial waste at
council landfills has been increasing sharply. Dumping charges for commercial
and industrial wastes at Brisbane and adjacent council landfills now range up to
about $50 per tonne.
STRATEGIC OPTIONS IN RELATION TO RAW MATERIAL AND MARKETS
The optimum siting of a refuse recovery and recycling plant will be very site
specific, and will depend on an adequate supply of raw material at an attractive
price, together with an adequate demand for the output product at a price that
will be competitive with alternative materials. These considerations suggest that
the most attractive location for a Petemic type plant will be towards the fringe of
a large and expanding metropolitan area where:
• There will be plenty of waste, including an adequate proportion of hard-fill
from building sites.
• Landfill sites will be scarce and dumping will be under pressure from urban
residents.
• Waste disposal costs (including landfill lining and waste handling including
compaction and transport) will be high.
• There will be a local demand for the product fuelled by a high level of
building activity, particularly for added value variants such as bricks and
tiles.
An indicative location for such a pilot plant is the Shire of Caboolture. The Shire is
growing rapidly, indicating an increasing supply of refuse, together with an
expanding demand for building materials. One of the characteristics of an
expanding urban area is a relatively high proportion of hard-fill in the refuse,
compared with areas of stable population where soft domestic waste is the
major component of garbage. This characteristic will provide the best feedstock for the Petemic process.
Since 1971, the population of the Shire of Caboolture has increased at growth
rates in excess of 10% per annum, and growth is expected to continue at up to
8% per annum in the period to 200647. This high growth rate is being maintained
by urban expansion and inward migration of people.
The population of the Shire is now expected to more than double to 160,000
people by the year 2006. If the present housing occupancy rate remains at the
current level of about 3.0 people per household, then the number of residences
will also need to double from the current number of about 25,000, to about
53,000 houses by the same date48 49.
Achievements and Challenges; Proceedings of the 2nd National Hazardous & Solid Waste
Convention, Melbourne. Australian Water & Wastewater Association and Waste Management
Association of Australia; Artarmon NSW. 141-148
47 Caboolture Shire Council (1993), "Strategic Land Use Plan, 1993"
48 Source: Australian Bureau of Statistics (various publications including 1991 Census of Population &
Housing, and Planning) Collaborative in Conjunction with Caboolture Shire Council
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If occupancy remains at around the current 2.65 people per household, then the
number of dwellings could exceed 60,000 as per the table below:
Population & Growth Rates - Caboolture ShireSource: Australian Bureau of StatisticsAdditional Source: Strategic Land Use Plan (1993) - Caboolture Shire CouncilPlanning Collaborative in Conjunction with Cabooltu re Shire Council
Year Population Dwellings (Total) Occupancy Rate
1971 12,207 5,088 2.401976 20,060 7,588 2.641981 32,380 11,645 2.781986 48,602 17,386 2.801991 70,093 26,068 2.691996 96,390 36,374 2.652001 127,479 48,105 2.652006 159,349 60,132 2.65
Shaded area: Consultants estimates
The above information may be more readily absorbed by viewing the Graph
below:
49 Caboolture Shire Council (1993), "Strategic Land Use Plan, 1993"
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0
50
100
150
200
0
20
40
60
80
Tho
usa
nd
s
Tho
usa
nd
s
Year
Po
pu
lati
on
Dw
elli
ng
s (
To
tal)
1971 1976 1981 1986 1991 1996 2001 2006
Pop ula t ion Dwellings (Tota l)
Population & Growth Rates - Caboolture Shire
Source: Australian Bureau of StatisticsAdditional Source: Strategic Land Use Plan (1993) - Caboolture Shire Council
Between 1985 and 1993 the number of building approvals in the Shire increased
by 99.7%. Projections by the Department of Housing and Local Government
show that construction in the Shire of Caboolture will increase to the year 2006,
while Brisbane City will decline. Within the Strategic Land Use Plan there are
large tracts of land allocated for sub-divisional development coupled with
relatively short processing times for applications. According to the Department
of Housing and Local Government, sub-divisional approvals in the Shire take
approximately four weeks compared to approximately eight to nine weeks in
Brisbane50.
50 Caboolture Shire Council (1993), "Strategic Land Use Plan, 1993"
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5
10
15
20
25
Tho
usa
nd
s
Year
No
. o
f n
ew
Dw
elli
ng
s
1986-1991 1991-1996 1996-2001 2001-2006
Brisb a ne Cit y
Ca b oolt ure
Projected New Dwelling Requirements 1986 - 2006
Source: Medium Series DaraDept. Housing, Local Government & Palnning for the Social Justice Startegy, 1990/91 Caboolture
The present production of refuse (excluding private landfill) in the Shire of
Caboolture is about 900kg per person per annum, or a total refuse production
(1993 basis) of about 70,000 tonnes per annum for the Shire. This quantity is
expected to grow to about 150,000 tonnes by the year 200651.
Most of the refuse in the Shire is currently sent to the main Caboolture landfill site.
It is estimated that this site has about 20 years of remaining life at the present
dumping rate of about 44,700 tonnes per annum.
The establishment of a waste recycling plant would significantly extend the life of
this facility, and would eliminate the need to transfer operations to a new site by
2014. Most of the other existing landfill sites in the Shire have similar or earlier
expiry dates.
The indicative Petemic plant capacity to treat all the present Shire refuse would
be about 280 tonnes per day (assuming a 5 day week), expanding to about 600 tonnes per day by the year 2006.
We are advised that the optimum sized plant for the Petemic technology is about
500 tonne per day with an indicated capital cost of $20 to $50 million52.
51 Caboolture Shire Council (1993), "Waste Management Strategic Plan" Sinclair Knight Consulting
Engineers for Caboolture Shire Council.
52 Initial indications at the commencement of the study was $20 to $25m - Petemic management later
revised this to the amount shown.
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It should be noted that similar characteristics to the Shire of Caboolture are also present in adjoining Shires, particularly Pine Rivers and Redcliffe, and it is possible that a strategically located facility could also attract refuse from those Shires.
Accordingly, it is noted that the present and projected production of refuse in the
Shire is reasonably well matched to the optimum estimated Petemic plant size,
particularly having regard to the fact that it is likely to be several years before a
commercial scale plant could be commissioned.
However, it should also be noted that long term refuse disposal contracts have
been negotiated for most urban and per-urban municipalities close to Brisbane,
and equity issues will need to be addressed prior to establishment of any
treatment facility.
SUPPLY AND PRICE OF CONSTRUCTION MATERIALS IN THE SHIRE OF
CABOOLTURE
In 1986, Mr M O'Flynn prepared a report on the quality and viability of extractive
resources within the Shire of Caboolture53. He identified a number of deposits
including a regionally significant deposit of hornfels, greenstone and granite rock
in the upper reaches of Burpengary Creek. However the potential to develop
these resources has been limited by the encroachment of rural residential
development into the area.
Privately owned quarries at Narangba, Moodlu and Bracalba now supply the
hard rock requirements in the Shire. Caboolture Shire Council has just approved
an additional quarry at Bracalba, and a reliable source of hard rock will be
available well into the next century. But the haulage distance from Bracalba to
the main areas of population growth in the eastern part of the Shire may allow
some advantage to a centrally located source of substitute aggregate. The
Council also operate quarries at Round Mountain near Elimbah and Wamuran to
provide aggregate for its own use.
Regionally significant deposits of fine to medium grained sand are located within
the Shire along Six Mile Creek, Lagoon Creek, Lower Burpengary Creek, and at
West Beachmere and West Torbul. Sand from these deposits is of excellent
quality and is available (at source) for a price of less than $10 per tonne. It is
unlikely that a "fine" Petemic product would be able to compete with local sand
in the short term. However, in the long term, extraction may face some
environmental restrictions and, some market potential might develop.
Extensive resources of ceramic clay occur in the lateritised and weathered
sediments in the Landsborough Sandstone, mainly in the eastern half of the Shire.
These deposits were identified in the O’Flynn Report. However, extensive rural
residential development in this area has reduced the areas available for future
extraction. Ceramic clay also occurs in the west of the Shire, but these deposits
appear to have limited application for the building industry.
53 O'Flynn, M. (1986), "Revision of Rock and Mineral Resources in Caboolture Shire" reported in
Caboolture Shire Council (1993), "Strategic Land Use Plan, 1993"
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The declining resource base for extractive materials is discussed in the Caboolture
Shire Council's Strategic Plan (1993)54. The Plan stresses that the availability of
economic deposits of rocks and minerals for construction purposes is essential for
the expansion and maintenance of urban services in the Shire. As urban or rural
residential development eliminates viable extractive resources, the cost of urban
infrastructure increases as materials need to be introduced from more remote
locations. This increased cost is eventually borne by the entire community.
The O'Flynn report55 as quoted in the Strategic Land Use Plan identified a number
of innovations that might have been expected to mitigate the loss of extractive
resources, these include:-
• The use of improved explosives, better blasting technique and more
sophisticated pattern design and monitoring which together with other
practices might enable the impact of operations in proximity to urban
development to be better managed.
• An awareness that nuisance factors such as dust and noise must be
monitored and mitigated. To do this, new techniques and processes have
been introduced. Also important is the visual amenity of the operations,
together with the future use of sites and the rehabilitation techniques
required.
Since the O'Flynn report was prepared, extensive urban development in the Shire
has resulted in the further loss of significant extractive resources.
At the same time, the rapid spread of rural residential development is greatly
increasing the demand for low quality road base and fill. The Council has now
reached the conclusion that strategically located deposits of these materials
must be preserved where possible for the developing sections of the Shire.
The development of a centrally located recycling facility might be expected to
relieve some of the pressure on the existing reserves of hard rock, especially those
located within reasonable distance of developing urban areas.
Resources of creek sand along Six Mile and Lagoon Creeks are more widespread
than previously estimated by O'Flynn in 1986. The material is generally better
graded than the beach-ridge sands in near coastal areas and more suitable for
blending with concrete and bituminous aggregate. Because of the lack of
similar well graded, fine to coarse-grained sand on the north side of Brisbane, the
deposits will be increasingly significant as the alternative sources on the south
side of Brisbane are depleted.
The beach ridge deposits near the mouth of Burpengary Creek have been
worked for nearly 20 years and the remaining resources are thought to be limited.
Workable deposits of beach ridge sands are still likely in the Godwin
Beach/Beachmere area.
In the Wamuran, Moodlu area and along the Lagoon Creek area, deposits are
available in the vicinity of the existing workings. The area is largely rural and the
54 Caboolture Shire Council (1993), "Waste Management Strategic Plan" Sinclair Knight Consulting
Engineers for Caboolture Shire Council.
55 O'Flynn, M. (1986), "Revision of Rock and Mineral Resources in Caboolture Shire" reported in
Caboolture Shire Council (1993), "Strategic Land Use Plan, 1993"
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Council believes that future rural residential development should be excluded to
maintain the availability of these deposits.
The current demand for hard rock and sand in the Shire is at least one order of
magnitude greater than the projected output of a Petemic plant that would
treat all the Caboolture Shire refuse.
The demand for hard rock and sand has increased substantially in recent years,
although over the period 1993 to 1994 the situation has stabilised somewhat.
Production for the Shire of Caboolture is demonstrated in the graph below:
1993
1994
Sand
Deco
Hardrock
050,000
100,000150,000200,000250,000300,000350,000
400,000
450,000Cubic Metres Extracted
QUARRY PRODUCTS DEMAND - CABOOLTURE SHIREAmount of Material Extracted - January to December, 1993 and 1994
Source: Caboolture Shire Council, Town Planning Department (March, 1995)
From the table above, it may be seen that extraction of hardrock in the Shire of
Caboolture for the year to December 1994 amounted to 323,000 cubic metres.
Deco production was 256,000 cubic metres and sand 353,000 cubic metres in the
same year. It should be noted that aggregate and other construction materials
also enter and leave the Shire.
Accordingly it can be concluded that the physical input and output parameters
for an optimum sized Petemic plant in the Shire of Caboolture would not be mismatched with the supply of refuse, and the expected Shire demand for aggregate. The output from the Petemic facility would provide less than 10% of the expected demand for sand and aggregate in the Shire.
It should be noted that aggregate also enters the Shire from adjacent sources.
However, most of the deposits of hard rock and sand in the Shire have now been
acquired by large competitive companies operating Australia wide. The most
important operators in this field are Pioneer International, Boral and CSR. These
Companies are vertically integrated and also produce pre-mixed concrete,
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bricks, tiles, and a range of more specialised building products. These companies
also operate in the contract supply of materials and services in road building.
The position in the sand and rock market has similar characteristics to the
handling of domestic and commercial refuse. Large companies and long term
arrangements dominate in the market place. It will be necessary to negotiate
satisfactory arrangements with present concession holders to ensure access to
the marketplace. Although this may present some problems, the community and
government pressure to reduce landfill disposal will act as a powerful incentive in
the establishment of competitive recycling facilities. However these facilities will
need to be fully cost effective to succeed.
The price and quality of the recycled product will need to compete with locally
quarried materials. Enquiries made with a long-standing independent supplier of
aggregate at the retail level, who is also a substantial supplier of sand from his
own deposits in the Caboolture Shire56 indicates that the wholesale pricing of
aggregate and sand (ex quarry) in the Shire is as follows:
$ per tonne
Road base Medium quality at pit 9.00
Crushed aggregate 12.00
Graded aggregate (best quality) 18.00
Sand (lowest quality) 8.00
These prices are consistent with reports from other urban areas, and coincide
with estimates of the cost of crushing and grading demolition rubble.
Accordingly, it is concluded that market parameters for the Caboolture Shire are
favourable, and may be reasonably typical of similar locations elsewhere in
Australia. The Shire of Caboolture thus presents the optimum opportunity and
location for testing the Petemic technology on a commercial scale.
SUPPLY AND PRICE OF AGGREGATE AND CONSTRUCTION MATERIALS
IN SOUTH-EAST QUEENSLAND57
Regional Supply & Demand
The demand for aggregate (including sand and gravel) is dependent on the
state of the construction industry. In turn, construction activity is a function of the
population trend and the economic climate.
Local aggregate demand in South-east Queensland will probably increase
proportionally, but will continue to be dominated by large public works such as
the water and highway projects mentioned above. Local per capita base-
consumption within this largely rural area is unlikely to exceed 0.5 m3/a.
56 Source: confidential
57 Material in this section has been largely sourced from: Department of Primary Industries Qld, Sand
and Gravel Resources of the Upper Brisbane and Lockyer Valleys: A Technical Information Paper, DPI,
Queensland, 1995.
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However, much of the material that is extracted from the region is exported to
the conurbations of Brisbane, the Gold and Sunshine Coasts, and Toowoomba.
The region, therefore, has a potential market of nearly 2 million people, growing
at 2.5% annually (ABS, 1993).
The volumes of aggregate being produced in the region (and consumed in the
region - negligible quantities are being exported or imported) are considerable.
In 1990, the last year in which statistics are available, 17.6 Mt of aggregates,
including 6.6 Mt of sand and gravel, were produced in the Brisbane and Moreton
Statistical Divisions (which incorporate the Cities of Brisbane, Caloundra, Gold
Coast, Logan, Ipswich and Redcliffe, and the Shires of Albert, Beaudesert,
Caboolture, Esk, Gatton, Kilcoy, Laidley, Maroochy, Moreton, Noosa, Pine Rivers
and Redland).
Queensland’s per capita consumption of aggregate is remarkable high
(compared with consumption in New South Wales, for example). This mainly
reflects the escalating rate of quarry rock production. The trend of per capita
sand and gravel consumption is slightly negative in Queensland, and the
situation is mirrored in the southeast of the State. Nevertheless, it appears that
Southeast Queensland’s demand for sand and gravel will remain above 6 Mt/a is
the foreseeable future.
Coarse sand and gravel is currently being won from a number of sources, mainly
from the Brisbane River estuary (0.8 Mm3/a), the Brisbane River between Ipswich
and Fernvale (0.3Mm3/a), the North and South Pine Rivers (1.0 Mm3/a), Coomera
River (.0.9 Mm3/a0 and the Mary River tot he north of the region (0.2 Mm3/a).
Fine-medium sand is mainly won from the Oxlet/Blunder Creek system (0.8
Mm3/a) and the Logan River system(0.3 Mm3/a) , as well as a variety of other
sources such as fossil beachridges near Toorbul and marine sand from Moreton
Bay (O’Flynn, 1992).
Obviously, reserves from these sources are finite, and new sources will inevitably
be required. Large resources of fine-medium sand of marine origin exist in the
region but these are of lower quality than river sand and their availability is far
from certain. Reserves of coarse sand and gravel are mainly confined to a few of
the rivers in the region. Reserves in these ‘traditional’ sources of supply
(particularly in the Coomera River and the Brisbane River estuary upstream of the
Story Bridge) are approaching exhaustion , while other resources (such as the
Brisbane River estuary downstream of the Story Bridge) are presently unavailable
because of opposition from sectors of the community.
Accordingly, the industry is beginning to relocate further afield into areas such as
the upper Brisbane River and Buarabe Creek. It is clear that the demand for sand and gravel form the study area is likely to increase markedly over the next few years. It is also clear that deposits in the region will be unable to maintain supply beyond the short-term. Possible substitutes for such materials (i.e. long-term
sources) include the Petemic aggregate.
Value of the Industry
Sand and gravel is valued at $5-10/m3 ‘on bank’ (i.e. stockpiled at the site) and
$20-25/m3 delivered to the coastal markets (landscaping and concrete blends
retail in Brisbane at $40-45/m3.). The Moreton region consumes about 3.5 Mm3/a
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of sand and gravel, or about $70M annually. In 1994, operations in watercourses
from within the region supplied only about 5% of this figure.
Most of this sand and gravel is used in concrete and concrete products. 2.5-3
Mm3 of concrete is produced in the region annually. At an average production
cost of $110/m3 delivered, the region uses about $300M of concrete annually.
Industry sources have advised the Qld Dept. Primary Industry that this represents
over 10% of the region’s building and construction costs.
Alternative Sources
Fuvially derived sands and gravels are usually ideal concrete aggregates
because they have been naturally beneficiated and they usually possess a
desirable grading. However, suitable and accessible reserves of alluvial sand and
gravel are finite, and alternative sources need to be identified. Three products
need to be considered. In industry parlance, these are coarse aggregate (-
5mm), coarse sand (coarse sand/fine gravel; 1-5 mm) and fine sand (fine-
medium sand; 0.1-1 mm).
For many years, hard rock quarries have provided the bulk of Brisbane’s coarse
aggregate, and the trend will undoubtedly increase as gravels become
increasingly scarce or unavailable. Rounded river gravel is preferred over crushed
rock for certain applications, such as exposed aggregate and pumped
concrete, although the main reasons for its use at present are cost
competitiveness and consistent product quality.
An example of such a quarry in the Brisbane Valley is Kansas Properties Pty Ltd
operate the Ravensbourne Sand Pit. A large face is cut into weathered, friable,
mainly medium-grained, quartose Helidon Sandstone. The clay matrix has been
partly removed as a result of groundwater leaching. The pit supplies sand for
various concrete products, plaster sand and bedding sand for the Toowoomba
market. The production level is unknown. Large reserves remain. A Mining Lease is
also held over the area for silica sand and kaolin (O’Flynn, 1992).
Crusher dust from hard-rock quarries can substitute for coarse a\sand in concrete
but it is generally only used when there is a supply shortfall because its shape is
greatly inferior to that of sand. Its sharp, tabular nature decreases workability and
pumpability, necessitates a higher cement content and allows increased
shrinkage. This problem can be ameliorated to some extent by the use of impact
rather than jaw crushers, and the used of certain admixtures (chemicals which
modify concrete properties such as setting-time or viscosity).
Crusher dust production is presently incidental to coarse aggregate production.
At present, almost all crusher dust produced in the region is used in roadworks. It is
inevitable, however, that the use of this material in concrete will increase. If and
when this occurs, new hard-rock quarries will need to be opened. Suitable hard-
rock quarry sites are not ubiquitous because of land use and geotechnical
limitations. In addition to the impacts generally associated with hard rock
quarries, such as noise, vibration and dust from blasting, and acid drainage from
the oxidation of pyrite, there are added environmental costs associated with
crusher dust production. Large quantities of water and energy are used, and high
volumes of waste ‘slimes’ are produced.
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Gap-graded concrete mixes (deficient in coarse sand) are possible but are
generally undesirable because of the need to increase the contents of fine sand
and cement to fill the interstices. More water is required in the mix to maintain
workability and the strength of the concrete decreases. The higher cement
content increases the cost of concrete and places additional pressure on
calcium carbonate deposits, which are often environmentally sensitive areas
(e.g. coral in Moreton Bay, limestone at Mt Etna).
The DPI suggest that, where possible, alluvial sand resources should be conserved
for the more valued end uses. For example, lower grade materials could be used
in lieu of river sand for general fill or bedding material. This is, of course, much
easier said than done, because river alluvium is often more readily available and
less expensive to supply, and the higher quality product will be assured of
meeting quality specifications. If follows that for substitution will not occur unless
river sand commands a higher price.
Materials technology may conserve resources in various ways. For example, the
use of silica fume in structural concrete increases strength, and therefore less
concrete is required overall. Of course, silica fume is expensive, making it
unsuitable for more general applications. The use of ‘flowable fill’ rather than
conventional concrete is increasing; this material uses a high proportion of fly-ash
and much less aggregate. Flowable fill is being used as a bedding material along
part of the Wivenhoe-Tarong Pipeline route.
Fly-ash (pozzolanic waste material from coal-fired power stations) is used in
concrete to partially replace the cement, in order to reduce cost and potential
reactivity. The coarsest fly-ash particles (unsuitable for cement replacement) can
also be used to substitute for sine silty sand.
Concrete is being recycled in many parts of the world, generally for use in roads
and as bedding material, and in some cases for reuse as concrete aggregate.
Recycling is being trialled by the Brisbane City Council for use in suburban roads.
There are, however, a number of problems associated with concrete recycling,
such as quality control. Nevertheless, in future, waste concrete is likely to become
an important source of constructional material. Other recycled and artificial
aggregates (e.g. tyre rubber) have limited applicability and are of marginal
interest.
USE OF THE PETEMIC PRODUCT, AND COMPETITIVE ADVANTAGE
Competitive or comparative advantage for an organisation or product is a
marketplace concept. It refers to the ability to capture or expand market share
relative to other competitors offering the same (or an equivalent) product or
service. Comparative advantage arises from a number of parameters;
1. The price of the product or service
2. The quality of the product or service
3. The availability of the product or service
4. Any exclusive right or concession which might limit the competitors rights to
obtain a raw material, or supply a product or service to the marketplace.
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A number of secondary issues will also have a bearing on comparative
advantage including;
• The source availability and cost of raw material
• Manufacturing and overhead costs
• Manufacturing ability including product range
• Ability to comply with regulatory requirements
• Degree of vertical integration of source materials, processing, and final
market.
In practice, it will be extremely difficult to establish whether a product or service
can gain a comparative advantage (i.e. can compete in the marketplace)
without actually entering the marketplace.
Unless precise detail about the above mentioned parameters is available, then it
will be impossible to derive the competitive boundaries for each of the relevant
parameters for which advantage might arise. Moreover, the market response to
a new competitor for the existing potential operators will be very difficult to
predict. It is suffice to say that the Australian market for aggregate and
construction materials is dominated by several large vertically integrated
national companies.
The market survey revealed that the potential production from a Petemic plant
based in the Caboolture Shire would have an output less than one tenth of the
total production of generic extractive aggregate in the Shire.
It should also be noted that the market survey is presented as a “pre-feasibility”
study. As such, information from this Report will be used to establish the economic
boundaries within which Petemic would need to operate to be competitive. It is
the responsibility of Petemic Management to demonstrate that it can meet those
requirements.
The Price of the Product or Service
No information was available on Petemic product price at the time the survey
was conducted.
At the bottom end of the aggregate market, the product can be regarded as
generic, and competition will be based on price, provided that the product
reaches the specifications required in the marketplace.
A major customer group is public sector instrumentalities (Road Departments and
Local Government) who purchase on tender with specified standards. Otherwise
the market is diverse and competitive.
It will be difficult to establish product differentiation in this market unless the
product has particular attributes not available in competing products. We have
no specifications for the Petemic product. Consequently we are unable to
comment on this aspect.
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We have obtained prices for generic products that we would expect to
compete with Petemic products from local sources and from literature review,
and these are included in the market survey.
The likely market competitors vary from place to place. It can be expected that
the main competition will be the major Australian building products companies.
These companies include CSR Ltd, Boral Ltd, and Pioneer International Ltd. These
companies all quarry rock and sand at a large number of locations, and produce
bricks and other derived products. They also offer a large range of contracting
services (such as road building) that utilise the source building materials. Privately
owned independent suppliers also operate at many locations especially where
they have secured exclusive rights to raw material deposits.
Some Local Government Authorities (including Caboolture Council) maintain
their own quarries for use in road building.
The market situation in the Caboolture Shire is typical of Australian urban
locations, and the three national firms operate as well as a number of
independents.
Petemic will have to demonstrate that it can supply products of defined
specifications to compete on price with the range of products available from the
existing extractive sources in the Shire.
We have no information at this stage to demonstrate that Petemic can deliver a
competitive product in the marketplace.
The Quality of the Product or Service
No product has been produced from the Petemic process at the time the market
survey was prepared, and no specifications had been provided that would have
enabled the writer to seek comment from potential purchasers. The market
survey was conducted on the assumption that the product(s) would be of
equivalent quality to materials obtained from extractive deposits.
It is therefore concluded that, as at date of writing, no comparative advantage
in respect of quality has been demonstrated for the Petemic product.
The Availability of the Product or Service
In some circumstances availability and timing are important attributes of
comparative advantage. Reliability and timeliness in respect of product delivery
and quality may provide a considerable comparative advantage. At the time
the market survey was conducted, no information was available on this aspect,
and the Consultants are not aware of any additional information to hand as at
the date of writing this Report.
Consequently it is concluded that, as at the date of writing, no comparative
advantage in respect of availability or supply has been demonstrated for the
Petemic product.
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Exclusive Rights or Concessions Which Might Limit the Competitors Rights to
Obtain a Raw Material, or Supply a Product or Service to the Marketplace
The extractive industries and infrastructure construction projects are often subject
to exclusive arrangements that limit the entry of competitors.
Exclusive assess to extractive resources is the general rule, and the large national
companies have secured deposits at strategic locations. This fact may enable
some operators to price products above a competitive market price, and enable
them to maintain a comparative advantage over new entrants.
This may have some impact on a potential entrant (such as Petemic) where the
existing operator has an excessive margin that will enable price reduction in the
face of competition.
This survey was directed at establishing competitive prices that Petemic would be
likely to face. As far as the Consultant’s can judge, Petemic has no advantage
arising from an exclusive access to material not available to others.
Indeed, Petemic is yet to secure guaranteed access to the raw material sources
(garbage and builders rubble). At present, this raw material source is the subject
of an exclusive right held by Hunter Brothers. If the Petemic process is to source
input material from the Caboolture Shire it will need to negotiate with Hunter
Brothers. The cost of any arrangement negotiated will be relevant in establishing
comparative advantage for the Petemic process.
As to the secondary issues mentioned above, the source and availability of raw
materials will need to be secured in advance of any plant establishment. At the
time of conduction of the market survey, no information on manufacturing costs
or overheads were available, nonetheless Petemic management have advised
that costs will be low enough for Petemic to compete. The issues of marketing
ability and product range cannot be addressed until some product is actually
processed. The compliance requirements have been set out in the environmental
section of this Report, and will need to be factored into the manufacturing
process and costs.
The final issues of access and vertical integration require some comment.
Petemic is a small company with no national scope. Moreover it does not provide
immediate prospects for vertical integration unless it forms an alliance with
another group to assist with product demand.
Petemic will need to address some of these issues prior to establishing their Pilot.
CONCLUSIONS
The disposal of municipal waste has become a significant problem for local
government authorities throughout the developed world. Earlier levels of waste
generation at about one tonne per person per year have declined somewhat in
the mid 1990's because of recycling and other government initiatives. However,
the economic separation and recovery of the higher value items in municipal
waste may now be reaching a practical limit.
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Waste commonly directed to landfill in the higher population municipalities of
Eastern Australia now contains 30% to 60% hard-fill and the balance in
undifferentiated domestic garbage. The prospects for economic recycling for
these materials is relatively limited58 59.
Environmental restraints imposed by government, rapidly declining capacity in
existing landfill sites, and the shortage of new areas suitable for landfill disposal
near to the main areas of population, can be expected to cause sharply rising
costs in landfill refuse disposal. New initiatives will be needed to counteract these
costs, and to comply with national targets of a 50% reduction in waste directed
to landfill by the year 2000.
58 Brookes, G., Kenley, R., Kerby, N., & Ellwood, D. (1994), "Shire of Hornsby: Economic & Operations
Feasibility Study for Major Recycling Initiatives and a Council Operated Transfer Station" in Achievements and Challenges; Proceedings of the 2nd National Hazardous & Solid Waste
Convention, Melbourne. Australian Water & Wastewater Association and Waste Management
Association of Australia; Artarmon NSW. 141-148.
59 Caboolture Shire Council (1993), "Waste Management Strategic Plan" Sinclair Knight Consulting
Engineers for Caboolture Shire Council
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Various commentators have suggested that
the real cost of landfill disposal is higher than
the charges now being levied by municipal
authorities on the producers of refuse. It is
now government policy at the state and
federal level that users should pay the whole
cost of refuse disposal. The future cost to
dumpers is now likely to include forward
planning and environmental costs.
The direct cost to local government
authorities of landfill disposal in metropolitan
and urban Australia currently varies between
$10 and $50 per tonne, with the higher figure
applicable to areas of higher population
density. Similar costs in the USA may be up to
three times greater.
Dumping charges for commercial refuse at
municipal landfill sites in Eastern Australia may
also vary up to about $50 per tonne, but can
be expected to increase rapidly as new
government environmental and "user pays"
policies are progressively introduced.
Recent interest has been generated in some
municipalities towards the recovery and
treatment of builders rubble to produce
roadbase and drainage aggregate. The cost
of this treatment has been estimated at
about $7.50 per tonne with the value of the
product (on site) being up to $14 per tonne
depending on the quality of the product, and
the availability of competitive materials at
the particular site. There will also be an
additional benefit in this option in the cost of
dumping avoided60.
Examination of the specifications put forward
by Petemic Technology suggests that the Petemic product in basic form should command a premium over crushed and screened builders rubble. Moreover the process has the potential to utilise a greater proportion of the waste handled in municipal disposal than simply hard-fill waste amenable to crushing and screening.
60 Brookes, G., Kenley, R., Kerby, N., & Ellwood, D. (1994), "Shire of Hornsby: Economic & Operations
Feasibility Study for Major Recycling Initiatives and a Council Operated Transfer Station" in Achievements and Challenges; Proceedings of the 2nd National Hazardous & Solid Waste
Convention, Melbourne. Australian Water & Wastewater Association and Waste Management
Association of Australia; Artarmon NSW. 141-148.
Clipping 1 - The Courier Mail, 25
March, 1995
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This analysis suggests that the break even point for the basic Petemic process might be about $50 per tonne of refuse input. This might be allocated as to $40 per tonne in landfill utilisation cost avoided, and $10 per tonne in base product
value (on site).61
The available data suggests that sufficient waste is available in the main
metropolitan and urban areas to provide a consistent supply of input raw
material, and that a regular demand for the basic output would be available at
a price that would be competitive with quarried materials.
Further, it is apparent that the physical input and output parameters for an
optimum sized Petemic plant in the Shire of Caboolture would not be mismatched with the supply of refuse, and the expected Shire demand for aggregate. The output from the Petemic facility would provide less than 10% of the expected demand for sand and aggregate in the Shire.
However, it should be noted that no attention has been given in this analysis to
the ownership of municipal waste, or to any contractual arrangements that local
government bodies may have made with waste disposal contractors.
Aggregate from the Petemic process is anticipated to be similar in some ways to the aggregate produced by Neutralysis as shown in the photograph above, i.e. a
lightweight, pelletised aggregate.
Sales Potential
Based on the foregoing data, calculations for annual sales potential are
provided as follows:
Low Estimate @ $8 / tonne
Mid-Estimate @ $14 / tonne
High Estimate @$20 / tonne
$ $ $
7,200,000 12,600,000 18,000,000
12,960,000 22,680,000 32,400,000
61 As noted previously, this compares to the direct cost to local government authorities of landfill
disposal in metropolitan and urban Australia which currently varies up to $50 per tonne in areas of
higher population density.
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The above estimates assume production in the order of 0.9m to 1.6m cubic
metres of aggregate. This compares to the current Shire demand as follows:
Quarry Products Demand Amount of Material Extracted - January to December, 1993 and 1994 Caboolture Shire
Material Cubic Metres Extracted 1993
Cubic Metres Extracted 1994
Sand 361,646 323,203
Deco 217,008 255,955
Hardrock 419,849 352,655
Total 998,503 931,813
The following graph of the above sales estimates is provided for analysis and
comparison:
0
10
20
30
40
Mill
ions
Expected demand for Sand & Aggregate in the Caboolt ure Shire (cubic metres)
Gro
ss S
ales
($) p
er a
nnum
900940
9801,020
1,0601,100
1,1401,180
1,2201,260
1,3001,340
1,3801,420
1,4601,500
1,5401,580
1,620
Low Estimate @ $8
Mid-Estimate @ $14
High Estimate @$20
Indicative Sales Values for the Petemic Process - Caboolture Shire
Values based on current (93/94) demand
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SITE ANALYSIS
PROSPECTIVE SITES
The Consultants have followed the Client’s directive in endeavouring to establish
prospects for a suitable site or sites within the context of Queensland, and
preferably South-east Queensland. From this point, the viability model for the
establishment of a suitable Petemic plant can be adapted according to site
variables and infrastructure requirements applying to any particular location.
An indicative location for such a pilot plant is the Shire of Caboolture. The
rationale here is that the Shire is growing rapidly, indicating an increasing supply
of refuse, together with an expanding demand for building materials.
There are several prospective sites in the Caboolture Shire that may be suitable
candidates for the setting up of a pilot plant. These have been visited by
Company management and the Consultants.
SITE LOCATION CRITERIA
Site selection criteria has been based on the following factors62:
1. In general terms, the site must be able to support the identified
infrastructure requirements (refer previous section of this Report). This would
include the availability - or reasonable availability - of power, telephone,
water, fuel (e.g. gas, diesel, furnace oil, etc.), etc. Limited water supply must
be available (Petemic management advise a requirement of no more than
several hundred litres per day63). Treated sewerage water would be
acceptable64.
2. Adequate supply65 of refuse.
3. Site must be appropriately zoned, or likely able to be rezoned to suitable
definition, e.g. “Noxious, Offensive or Hazardous”.
4. Environmental restrictions, particularly that relating to noise, must not, prima
facie, prohibit the planned development (refer Section of this Report
“Environmental Considerations”).
5. Should most likely to be acceptable, prima facie, to the local Council (and
meeting likely requirements imposed by the Town Planning department in
particular).
62 Some changes to the criteria listed below may be possible if plant design is modified
63 To be confirmed by Engineer
64 According to advice received by Petemic management
65 That is, supply of refuse must be sourced in sufficient quantities to support the ongoing viability of the
Petemic processes raw material requirements. In the case of the Caboolture Shire, the rapidly
growing local population indicates, primae facie, an increasing or at least maintained supply of
refuse.
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6. Low or nil level of objection likely posed by local / regional communities.
7. Minimum available land area of between 10 to 15 acres (4 to 6 hectares)66.
8. Excellent road access for heavy vehicles.
9. Preferably bitumen road access (or minimal requirement for bitumenisation
of access).
10. Presence of buffer zone to minimise or eliminate any undesirable effect on
nearby residential areas.
11. Restricted viewing from major arterial roads or highways to minimise or
eliminate any visual intrusiveness.
12. Close or immediate proximity to existing landfill dump sites.
THE NARANGBA INDUSTRIAL ESTATE
One of the sites visited (refer photograph below) is the Narangba Industrial
Estate, which is in part owned by the Department of Business, Industry & Regional
Development (the consultants understand that land in this estate is available for
freehold - if project eligible).
One of the possible sites - located at Narangba Industrial Estate. An ideal location because of the appropriate land zoning.
66 Indicative for a 500t output per day Plant
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With the exception of a 35 hectare parcel of land which is undeveloped, the
majority of the Special Industry zoned land has been utilised for noxious and
hazardous industries. Indeed, latest advice from Council (as at date of writing) is
that the Narangba Industrial Estate itself is in major part zoned a “Noxious,
Offensive or Hazardous Industry zone”.
(Special Note: The Caboolture Shire Council Town Planning maps67 indicate
that the Estate is zoned “Special Industry” and in other parts “Special Purpose”.
The Department of Business, Industry & Regional Development’s Locality map has
categorised the Estate as being either “Special Industry” and / or “General
Industry”. Council advice received indicates a “Noxious, Offensive or Hazardous
Industry zoning).
The use of the Estate as an area containing “noxious, offensive or hazardous”
industries, which established by right previously, now require Town Planning
Consent in the Special Industry zone, thus affording greater control over the
development. The Special Industry zoned land, which has been developed for
the major part, is surrounded by an undeveloped tract of land.68 A future Stage
(No. 5A2) is planned.
A panoramic view of the Narangba Industrial Estate is appended to this report,
as taken from the current (physical) end of Potassium Street (refer to Locality Map
of the Estate, also appended to this Report.
Whilst advice to hand is that the existing Industrial Estate lots have all been taken
up for development, expansion of this estate is imminent.
Site selection criteria is addressed as follows:
1. Able to support the identified infrastructure requirements (refer previous
section of this Report). This includes the availability - or reasonable
availability - of power, telephone, water, gas / furnace oil / diesel, etc.
Town water supply (including fire hydrants) is available.
2. Rapidly growing local population (refer data presented in previous sections
of this Report). Caboolture Shire (together with the Sunshine Coast) is one of
the most rapidly growing - if not the most rapidly growing - populations in
Queensland69.
3. Site is appropriately zoned Special Industry (“Noxious, Offensive or
Hazardous” ) zone.
4. Environmental restrictions, particularly that relating to noise, do not, prima
facie, prohibit the planned development (refer Section of this Report
“Environmental Considerations”). However, as previously noted there may
be a requirement for the completion of an Environmental Impact
Statement, and / or Environment Management Plan.
67 Caboolture Shire Council Town Planning Scheme Map numbers 1:10,000 *15 (Issue #1), and 1: 5,000
*14C (Issue #1).
68 Source for information on the Narangba Industrial Estate is the Strategic Land Use Plan (1993),
Caboolture Shire Council (pp. 137 - 138).
69 The Sunshine Coast Economic Development Board claim that the Sunshine Coast region is the fastest
growing population centres in Australia.
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5. Preliminary discussions with Caboolture Shire Council indicate that it is a
likely possibility that it could be acceptable, prima facie, to the local
Council (and meeting likely requirements imposed by the Town Planning
and Health departments in particular).
6. Low or nil level of objection likely posed by local / regional communities,
due to its distant proximity to residential areas and placement within an
identified “noxious, offensive, or hazardous” locality.
7. It is likely that the a land area of between a minimum of 10 to 15 acres (4 to
6 hectares) is available70.
Area located on the outskirts of the Narangba Industrial Estate - creekbed to the north / north-east, with some evidence of pollution from other nearby industries. The area of the Industrial Estate is able to be further expanded towards this
locality, with fire hydrants located strategically along the track seen to the rear of the photograph.
8. Excellent road access for heavy vehicles. Easy access to the Bruce
Highway.71
9. Bitumen road access available to the Estate.
10. Narangba Industrial Estate enjoys a significant “Buffer zone” which should
serve to minimise or eliminate any undesirable effect on nearby residential
areas.
70 Whilst indications are that the majority of lots on the Narangba Industrial Estate have been taken up,
the area will be expanded further. Also, there has been limited development occurring on the
outskirts of the Estate inferring that some blocks may become available for resale by private vendors.
71 Very limited exposure to residential areas
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11. Viewing from major arterial roads or highways is highly restricted. This will
assist in minimising, or eliminating, any visual intrusiveness.
12. Close proximity to a number of existing landfill dump sites, including those in
several adjacent shires.
One of the existing Landfill dump sites located in the Caboolture Shire - and a possibility for co-development with a Petemic Plant located on site. This one is
located at Boundary Road, adjacent to the Narangba Industrial Estate (Caboolture Transfer Station).
Alternatives to the Narangba Industrial Estate.
There are potentially a number of other fairly suitable sites located within
reasonably close proximity to central Caboolture, for example a 300 acre (121
hectare) site located along Boundary Road72, and existing landfill / dump sites.
There may also be some potential to site the Project on an existing landfill site,
however this would need to be negotiated with the Council and / or waste
management contractor. Design of the plant, however, would need to take
account of the possibility of leeching material. Some caution is advised since any
problems associated with landfilling activities might be wrongly attributed to the
Petemic process.
72 as per advice from DBIRD, Sunshine Coast.
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The Caboolture Shire Light Industrial Estate at Narangba - not considered a
potential Petemic Technology Plant site due to its zoning, proximity to residential areas, and existing development use.
A number of “apparently suitable” alternatives, not eventually considered for a
variety of reasons to be viable, are also apparent. These include the Light Industry
Industrial Estate, the ex Bribie Brickworks site, the Caboolture Shire Sewerage
Treatment Plant (located near the coast between Beachmere and Deception
Bay), and others.
The Noxious, Offensive or Hazardous Industry Zone
The Government gazetted town planning definition of the “Noxious, Offensive, or
Hazardous Industry Zone” is provided as follows:
“To provide for industries which by their nature are likely to be noxious, offensive
or hazardous in relation to other types of land use including other industries. Large
scale general industries may also locate in this zone with Council consent.
Junkyards, and other visually intrusive activities will be encouraged to locate in
this zone. Residential and other forms of incompatible land uses will be restrained
from locating near this zone.”
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The Narangba Industrial Estate - a suitable site for a Petemic Plant. Shown here is
the outskirts of the existing land allocation, at the end of Potassium Street.
Caboolture Shire Council advises that the property is zoned Noxious, Offensive, or
Hazardous Industry73. The proposed use on the Narangba Industrial Estate
therefore conforms with purposes for which buildings or other structures may be
erected or used or for which land may be used without consent of the council74,
including:
a) advertising hoarding, advertising sign, bulk store, car repair station,
domestic pets, general industry, junkyard, light industry, liquid fuel depot,
and park, and
b) caretaker’s residence, car park, hazardous industry, noxious or offensive
industry, public utility and stockyard.75
Limited consent (purposes for which buildings or other structures may be erected
or used or for which land may be used only with the consent of the council
includes:
• agriculture
• commercial premises
• lot feeding (intensive)
• refreshment service
73 A current zoning certificate has not been obtained. The obtaining of such a Certificate is time
consuming and costly, and often an excessive requirement for the purpose of this Report. The
Consultant has therefore relied upon the verbal advice of Council.
74 Definition has been obtained from the Government Gazetted “Table of Development: Noxious
Offensive or Hazardous Industry Zone.”
75 Such purposes are subject to special conditions
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Purposes for which buildings or other structures may not be erected or used or for
which land may not be used (i.e. prohibited development) includes:
• any purpose not referred to above
Council has advised that there are no immediate planned changes to the land
zoning.
Another view of the Narangba Industrial Estate, taken from the western extremity of existing development. Note the excellent bitumen road access.
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LABOUR SKILLS AND ORGANISATIONAL STRUCTURE
KEY MANAGEMENT76
Key management, consisting of three personnel (plus professional support
services), are vested with quite different and distinct responsibilities as follows:
➮ General Manager
The General Manager is responsible to the Petemic Board of Directors for the
implementation of policy, and the leadership of the Petemic team. His is the
ultimate responsibility for the financial performance of the Company and its
production / processing operation. For this reason, his primary role is to
achieve Company objectives.
He must also provide vision to the Company (both “upwards” and
“downwards” communication), and must maintain regular contact with the
owners / directors of the business.
➮ Administration Manager
The Administration Manager’s role is essentially to act as the Company's
internal Bookkeeper and Paymaster. His primary role is to provide financial
information to management, however in the process the Administration
Manager will be responsible for the payment of creditors, exercising debtor
control, maintaining and controlling the accounting system (including
ordering and overseeing other transactional activity), and payment of staff
wages.
The Administration Manager will need to be a strong “team player”,
maintaining close liaison between the General Manager and the Operations /
Production department. He will also need to implement directives concerning
the engagement of professional service personnel, and on occasion initiate
such engagements.
➮ Production Manager
The Production Manager has a critical role in the Petemic organisation, in that
he is responsible for the “engine room” of the Company (i.e. production and
processing operations). In addition to being the designated Quality Control
Officer, the Production Manager will need to demonstrate detailed
understanding, flair and initiative in relation to the Petemic process.
This position also carries the ultimate responsibility for the production of the
Petemic end-product to the specifications and standards established as
Company policy (subject to the outcomes of any ongoing research and
development activity). This must be achieved in the most cost-efficient
manner possible.
76 For convenience only, the Consultant has adopted the words “he” or “his” when referring to staff
positions and organisational structure. However, the Consultant is committed to presenting data on
an equal opportunity basis and for this reason the words “she” or “her” could also be used in
replacement of the foregoing except where otherwise and specifically noted.
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This position carries the key to achievement of the Company’s financial
objectives, from a cost point of view. It is important that he also maintain on a
regular basis his professional and technical knowledge, ensuring that he is fully
acquainted with industry developments in the area of waste management.
Finally, the Production Manager’s other critical area of responsibility is the day
to day management of most Company staff. It can be expected that this
person will have a key role in the “hiring and firing” of production and
processing personnel.
The sharp delineation in management responsibilities, as depicted above, will
contribute towards a good working relationship being developed between the
respective personnel.
Delegation of Authority and Succession Planning
The Company will need to consider the implications of the possibility of key
management not being present for extended periods (especially the General
Manager). Not only does this imply that the need for delegation of management
responsibilities, but more importantly it emphasises the importance of putting in
place a "succession plan" (comments follow below) for the current owner-
Directors.
Key Management Risk
There is currently a reliance of "Key Men" (i.e. Walsh, Holbut, and Schulz). Because
of their critical management and other functions undertaken, a risk to their
spouses (as may be applicable), and the ongoing viability of the Company exists,
they become incapacitated for a medium term or longer.
This risk will be considerably exacerbated once the Viability stage has been
completed, and presumably construction commences on a Pilot or Commercial
Plant.
One way that this may be overcome is for key management to identify suitable
persons for succession. It is in fact in their own interest to do so, as the Consultant
is not only cognisant of the personal objectives of the owners, but if the business is
to become more self-reliant, it is imperative that this matter be attended to. This
could be progressed along with a proposed ATFIC77 program to be developed
(the ATFIC is explored in the next sub-Section of this report).
In addition to the above, the management may wish to investigate suitable
income protection insurance , in addition to implementing a system of revolving
work duties, particularly with identified key workmen. This could also be
conducted in conjunction with an ATFIC program
The Petemic Board of Directors
77 ATFIC - Assistance to Firms Implementing Change
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The Organisation Charts below indicate a Board of three Directors (current
organisational structure is two persons78). These persons are could be:
1. Mr Michael Walsh (existing General Manager)
2. Mr Peter Holbut (existing Research Development & Technology Manager)
3. Mr Graham Schulz (Non-Executive Director)
In the short to medium term, the Consultant recommends that the existing Board
should look for at least two other, independent, non-executive Board members
with expertise in the areas of:
• Financial Management
• Engineering Technology (preferably with specific skills in the area of waste
management)
This would serve to bolster the skill base and expertise required to effect
implementation of the Project.
Professional Support Services
The following Professional Support Personnel will be required:
Industrial Chemist
The engagement of an independent Industrial Chemist will be required for the
formal testing of product quality and composition. Some stress-testing of product
may also be required to meet the potential requirements of local Councils and
other clients of Petemic79.
The nature and specification of tasks required to be completed would be subject
to client requirements, and tailored to meet needs.
Suggested allocation: $2,000 per month upon construction of the Pilot or
Commercial Plant.
Consultant(s)
Consulting services may be required in the following areas:
• General Consultancy (allocation should be made for assistance with the
financial management functions80).
• Engineering (implementation of Plant design, and ongoing calculations for
product / process specifications. Plant modification “on the fly”)81.
78 Mr Michael Walsh, and Mr Peter Holbut.
79 The stress testing of material used, for example, as road base, will almost certainly be required)
80 Financial Planning and Analysis, including analysis of performance, will support the Administration
Manager’s role. There will be a greater than usual requirement during establishment of the Plant,
and for at least the first six month’s of operation.
81 A suitable Engineering Consultant has been located in Mr Peter Stone, who is being utilised by
Petemic management as at the date of writing.
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Suggested allocation: $1,500 per month for the first year commencing upon
completion of the Viability Analysis (General Consultancy), and $1,500 per month
for the first year commencing upon completion of the Viability Analysis
(Consulting Engineer).
Other Professional Support (Ongoing)
An Accountant, Auditor and Solicitor should be appointed. The Solicitor should
ideally be conversant with liscencing requirements of the Petemic Technology.
Suggested allocation: $3,000 per annum for the first year commencing upon
completion of the Viability Analysis (Accountant); $1,500 per annum for the first
year commencing upon completion of the Viability Analysis (Auditor); and $1,000
per annum for the first year commencing upon completion of the Viability
Analysis (Solicitor82).
Sub-Contracted Services
The following services will need to be retained for the provision of various sub-
contracted services:
Maintenance Crew
Assuming one shift only per day:
Allocate $1,000 per month (first year of operation post Plant Construction)
Allocate $2,000 per month (second year of operation)
Allocate $2,500 per month (third year of operation and thereafter)
The maintenance crew (comprising skill areas of fitter and turner, and
boilermaker) will be charged with the responsibility of maintaining the Petemic
plant. A reduced requirement is indicated in the early stages of plant operation.
A formal schedule of regular maintenance tasks will need to be formulated by
Petemic management, in addition to a “memorandum of understanding” in
relation to “ad-hoc” maintenance that may be required from time to time.
The Maintenance Crew will be directed by the Production Manager. As with all
sub-contracted and professional services, confidentiality agreements will need to
be executed with the Companies / individuals concerned.
The purpose of the Maintenance Crew is to MAINTAIN PRODUCTION AND QUALITY
by ensuring operation of machinery and mechanical equipment. Job Results are
defined as follows:
1. ENSURES OPERATION OF MACHINERY AND MECHANICAL EQUIPMENT by
completing preventive maintenance requirements on engines, motors,
pneumatic tools, conveyor systems, and production machines; following
diagrams, sketches, operations manuals, manufacturer's instructions, and
engineering specifications; troubleshooting malfunctions.
82 This allocations assumes resolution of all liscencing issues
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2. MAINTAINS EQUIPMENT, PARTS, AND SUPPLIES INVENTORIES by checking
stock to determine inventory level; anticipating needed equipment,
parts, and supplies; placing and expediting orders; verifying receipt.
3. LOCATES SOURCES OF PROBLEMS by observing mechanical devices in
operation; listening for problems; using precision measuring and testing
instruments.
4. CONSERVES MAINTENANCE RESOURCES by using equipment and supplies
as needed to accomplish job results.
5. REMOVES DEFECTIVE PARTS by dismantling devices; using hoists, cranes,
and hand and power tools; examining form and texture of parts.
6. PROVIDES MECHANICAL INFORMATION by answering questions and
requests.
7. DETERMINES CHANGES IN DIMENSIONAL REQUIREMENTS OF PARTS by
inspecting used parts; using rules, calipers, micrometers, and other
measuring instruments.
8. PREPARES MECHANICAL MAINTENANCE REPORTS by collecting,
analyzing, and summarizing information and trends.
9. ADJUSTS FUNCTIONAL PARTS OF DEVICES AND CONTROL INSTRUMENTS by
using hand tools, levels, plumb bobs, and straightedges.
10. CONTROLS DOWNTIME by informing production workers of routine
preventive maintenance techniques; monitoring compliance.
11. MAINTAINS CONTINUITY AMONG WORK TEAMS by documenting and
communicating actions, irregularities, and continuing needs.
12. FABRICATES REPAIR PARTS by using machine shop instrumentation and
equipment.
Security Guard
Assuming one shift only per day:
Allocate $800 per month (first year of operation post Plant Construction)
Allocate $800 per month (second year of operation)
Allocate $800 per month (third year of operation)
The Security Guard will be charged with the responsibility of ensuring the entry of
only those persons authorised to do so, or otherwise legally required, outside of
Plant operation.83
A secondary role will be the securing of the Company’s assets.
A reduced requirement would be indicated should the Company proceed to
two shifts, with a “nil” requirement where three shifts are in operation.84
83 During hours of Plant operation, the Weigh Bridge Operator will be charged with the responsibility of
security.
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Electronic and Engineering Contractor
Assuming one shift only per day:
Allocate $1,500 per month85 (first year of operation post Plant Construction)
Allocate $1,000 per month (second year of operation)
Allocate $800 per month (third year of operation and thereafter)
The Electrical and Engineering Contractor will be charged with the responsibility
of maintaining the electronics and controls relating to the Petemic Plant. A
reduced requirement is indicated in the early stages of plant operation.
A formal schedule of regular maintenance tasks will need to be formulated by
Petemic management, in addition to a “memorandum of understanding” in
relation to “ad-hoc” electronic maintenance that may be required from time to
time.
The Maintenance Crew will be directed by the Production Manager, but with the
input from the Engineering Consultant engaged by Petemic.
ORGANISATIONAL STRUCTURE
The organisational structure of Petemic Technology Pty should be relatively “flat”,
allowing for smooth communications between factory workers, and
management.
ORGANISATIONAL CHARTS
The following charts represent the organisational structure and line operations /
responsibility of the Company for one, two and three shifts86:
84 Since the Weigh Bridge Operator is charged with the responsibility during operation hours, in the
case of three shifts the Plant would always be secured by employed staff.
85 Equivalent to $40 per hour
86 For clarity, a full page of the Organisation Chart for One Shift only is appended to this Report
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One Shift
PETEMIC TECHNOLOGY PTY LTDPETEMIC TECHNOLOGY PTY LTDORGANISATION CHARTORGANISATION CHART
(ONE SHIFT)(ONE SHIFT)
FULL TIME STAFF EQUIVALENTS = 11Plus Sub-Contractors & ProfessionalSupport
SECRETARYx 1
ADMINISTRATIONMANAGER
x 1* Accounting
* Wages* Ordering
* Scheduling
ADMINISTRATION
WEIGHBRIDGE
OPERATOR& SECURITY
x 1
LOADEROPERATOR
x 1
LOADER,PULVERISER
&EXTRUDEROPERATOR
x 1
FORKLIFTOPERATOR,
BRICKSTACKER,LOADER
OPERATORx 1
GENERALHAND
x 3* Sorting
* Other Duties
PRODUCTIONMANAGER
x 1* Production
*Quality Control* Operations
OPERATIONS &PRODUCTION
MAINTENANCECREW
x 1* Fitter
* Turner* BoilerMaker
SECURITY GUARDCONTRACTOR
x 1
ELECTRONIC &ELECTRICAL
ENGINEERINGCONTRACTOR
x 1
FREIGHT(Road Transport)CONTRACTOR
x 1Freight In / Out
SUB-CONTRACTORS
INDUSTRIALCHEMIST
x 1
CONSULTANTx 1
PROFESSIONALSUPPORT GROUP
GENERAL MANAGER
x 1* Vision
* Leadership* Management
* Overview
BOARD OF DIRECTORSx 3
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Two Shifts
PETEMIC TECHNOLOGY PTY LTDPETEMIC TECHNOLOGY PTY LTDORGANISATION CHARTORGANISATION CHART
(TWO SHIFTS)(TWO SHIFTS)
FULL TIME STAFF EQUIVALENTS = 19Plus Sub-Contractors & ProfessionalSupport
SECRETARYx 2
ADMINISTRATIONMANAGER
x 1* Accounting
* Wages* Ordering
* Scheduling
ADMINISTRATION
WEIGHBRIDGE
OPERATOR& SECURITY
x 2
LOADEROPERATOR
x 2
LOADER,PULVERISER
&EXTRUDEROPERATOR
x 2
FORKLIFTOPERATOR,
BRICKSTACKER,LOADER
OPERATORx 2
GENERALHAND
x 6* Sorting
* Other Duties
PRODUCTIONMANAGER
x 1(extended hours)
* Production*Quality Control
* Operations
OPERATIONS &PRODUCTION
MAINTENANCECREW
x 1* Fitter
* Turner* BoilerMaker
SECURITY GUARDCONTRACTOR
x 1
ELECTRONIC &ELECTRICAL
ENGINEERINGCONTRACTOR
x 1
FREIGHT(Road Transport)CONTRACTOR
x 1Freight In / Out
SUB-CONTRACTORS
INDUSTRIALCHEMIST
x 1
CONSULTANTx 1
PROFESSIONALSUPPORT GROUP
GENERAL MANAGERx 1
* Vision* Leadership
* Management* Overview
BOARD OF DIRECTORSx 3
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Three Shifts
PETEMIC TECHNOLOGY PTY LTDPETEMIC TECHNOLOGY PTY LTDORGANISATION CHARTORGANISATION CHART
(THREE SHIFTS)(THREE SHIFTS)
FULL TIME STAFF EQUIVALENTS = 34Plus Sub-Contractors & ProfessionalSupport
SECRETARY
x 2(extended hours)
ADMINISTRATIONASSISTANT
x 1Assists Managerin his abscence
ADMINISTRATIONMANAGER
x 1* Accounting
* Wages* Ordering
* Scheduling
ADMINISTRATION
WEIGH BRIDGEOPERATOR &
SECURITY
x 4
LOADEROPERATOR
x 4
LOADER,PULVERISER &
EXTRUDEROPERATOR
x 4
FORKLIFTOPERATOR,
BRICK STACKER,LOADER
OPERATOR
x 4
GENERAL HAND
x 10* Sorting
* Other Duties
PRODUCTIONMANAGER
x 1(extended hours)
* Production*Quality Control
* Operations
FOREMAN
x 2* Assists Foreman
in his abscence
OPERATIONS &PRODUCTION
MAINTENANCECREW
x 1* Fitter* Turner
* BoilerMaker
SECURITY GUARDCONTRACTOR
x 1
ELECTRONIC &ELECTRICAL
ENGINEERINGCONTRACTOR
x 1
FREIGHT(Road Transport)CONTRACTOR
x 1Freight In / Out
SUB-CONTRACTORS
INDUSTRIALCHEMIST
x 1
CONSULTANT
x 1
PROFESSIONALSUPPORT GROUP
GENERAL MANAGER
x 1* Vision
* Leadership* Management
* Overview
BOARD OF DIRECTORSx 3
POSITION JOB DESCRIPTIONS
In view of the likelihood of staff turnover, accompanied by expected strong
growth and the changes this will bring about, the matter of job definition is
critical. Appendix D provides a detailed Job Definition of all staff to be
employed.
The development of written Job Descriptions, defining the nature, scope and job function, along with relevant authority levels, is an important aspect of the
Petemic management function. It is emphasised that a key factor in bringing
about an efficiently managed organisation will be the clear definition of job
functions and reporting lines. This becomes of even greater significance as
employee numbers increase, and where the available time to spend with
employees becomes less.
Job descriptions - developed for all existing and proposed positions, provides in a written form clear delineation of job duties/responsibilities and reporting lines.
Ideally, each Job Description should be further refined in conjunction with each employee.
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The Job Description models located at Appendix D could be used as a basis for
the development of all staff positions. The major features of worthwhile and
meaningful job descriptions are:
• Results and duties are both stated (the result expected and the duties
needed to accomplish the result)
• Accomplishment is emphasised over "doing" (employees need to first know
where they are going - only then can it be explained "how you get there")
• The focus is on results (including how the job fits into the overall scheme of
the organisation, and how the job fits into the organisations' mission)
• Clear writing style, with job descriptions simple and easy to understand.
• Job Descriptions must be changed when job requirements change.
• Linkage should be established here possible with QA Procedures
documentation.
Use of Contract Labour and Enterprise Bargaining
The Company may be interested in following up prospects of enterprise
bargaining; from its point of view, in an effort to improve productivity (it may also
have the potential to increase capacity utilisation of factory/processing
operations.).
Should the Company wish to progress this matter, or in order to assist in identifying
the training requirements of the enterprise, the Consultant recommends that the
Company engage the services of Dr. Catherine Norton of the Norton Consulting
Group87, for the purpose of submitting an ATFIC (Assistance to Firms
Implementing Change)88 proposal which would examine these and other issues
related to staffing. The Government may provide up to $40,000 funding for this
purpose. The primary purpose of this program should be to effect improvements
in productivity.
SKILLS AUDIT
The following data is provided to guide management in the selection of
personnel capable of performing executive and other positions planned for
Petemic Technology Pty Ltd.
87 Phone 07-369 5523. The Consultant would be willing to arrange an introduction and preliminary visit if
so desired.
88 ATFIC is a program run by DEET (Dept. Employment, Education & Training), and is designed to assist
firms to expand or restructure and to develop business and human resource practices. The program
assists companies retain or expand their workforce, and is designed for firms who have less than 50
employees, with up to $40,000 in funding over a 12 month period.
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GENERAL MANAGER
Job Purpose: To ACHIEVE COMPANY OBJECTIVES: develop
business opportunities; meet sales quotas;
manage staff; provide leadership; implement
Board directives.
Estimated Salary per annum: $ 80,000 p.a. + vehicle + performance bonus89
Employ from Month: 0 (Zero)
Skill Required:
Experience in Skill area required:
Required minimum Educational
Qualification (if any):
Leadership Demonstrated
performance in
managing companies
none
Visionary Demonstrated skills in
showing initiative and
vision
none
Personnel management Demonstrated skills in
the recruiting,
selecting, disciplining,
appraising and
training employees
none - some informal
or formal training in
management
preferred.
Business development Demonstrated skills in
growing and
expanding businesses
and achieving sales
targets
none
Business Ethics Demonstrated
performance in
maintaining high
business ethics
none
Professional and technical
knowledge
Experience in the
waste management
industry preferred
Engineering or
related discipline
preferred but not
essential
Financial management Demonstrated
understanding of
Company financial
accounts and
records, including
Balance Sheet
analysis and cash flow
budgeting
Accountancy or
related discipline
preferred but not
essential
89 No award applies - suggested salary is Consultant’s estimate
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ADMINISTRATION MANAGER
Job Purpose: To PROVIDE FINANCIAL INFORMATION TO
MANAGEMENT: Research and analyse
accounting data; prepare reports; Implement
administrative systems, procedures, and
policies, and monitor administrative projects.
Estimated Salary per annum: $ 45,000 p.a. + vehicle + performance bonus90
Employ from Month: 1 (One)
Skill Required:
Experience in Skill area required:
Required minimum Educational
Qualification (if any):
Transaction recording and
analysis
Demonstrated ability to
enter and interpret
accounting information,
auditing, debtor and
creditor control.
Accounting or
related discipline
Accounting procedures Demonstrated ability in the
development and
maintenance of
accounting procedures
and systems.
Accounting or
related discipline
Business Ethics Demonstrated
performance in
maintaining high business
ethics
none
Personnel management Limited demonstrated skills
in the recruiting, selecting,
disciplining, appraising
and training employees
none - some informal
or formal training in
management an
advantage.
Professional and technical
knowledge
Experience in the waste
management industry
preferred. Experience in
the accounting profession
mandatory
Accounting or
related discipline.
Financial management Demonstrated capabilities
in the production of
Company financial
accounts and records,
including Balance Sheet
analysis and cash flow
budgeting
Accountancy or
related discipline.
90 No award applies - suggested salary is Consultant’s estimate
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SECRETARY
Job Purpose: To ENHANCE (COMPANY) EFFECTIVENESS:
providing information-management support.
Estimated Salary per annum: $ 21,840 p.a.91
Employ from Month: 3 (Three - or at commencement of plant
construction)
Skill Required:
Experience in Skill area required:
Required minimum Educational
Qualification (if any):
Reception Experience in greeting
customers and
gaining their
confidence preferred
Office
management,
Business or related
discipline preferred.
Telephone technique Experience in
answering or referring
enquiries preferred.
none
Office Procedure Filing, transcribing,
maintaining
calendars, arranging
meetings,
conferences
preferred.
Office
management,
Business or related
discipline preferred.
Reporting Experience in
providing written and
verbal reports to
management and
other staff preferred.
Office
management,
Business or related
discipline preferred.
Business Ethics Demonstrated
performance in
maintaining high
business ethics an
advantage.
none
Word-processing Ability to type at least
80 wpm mandatory.
none
Computer skills Demonstrated
understanding and
ability to operate
maintain, and back-
up computers
mandatory.
Office
management,
Business or related
discipline preferred.
91 Equivalent to Grade 4 - State Clerical Employees Award ($420 per week base rate)
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PRODUCTION MANAGER
Job Purpose: To PRODUCE PRODUCTS: Supervise staff and
operations; create new designs and
modifications; establish and enforce quality
standards; test materials and product.
Estimated Salary per annum: $55,000 p.a. + vehicle + performance bonus92
Employ from Month: 0 (Zero)
Skill Required:
Experience in Skill area required:
Required minimum Educational
Qualification (if any):
Leadership Demonstrated
performance in
managing personnel
teams mandatory
none
Personnel management Demonstrated skills in the
recruiting, selecting,
disciplining, appraising
and training employees
none - some informal or
formal training in
management
preferred.
Professional and
technical knowledge
Experience in the waste
management industry
preferred
Engineering or related
discipline preferred but
not essential
Project management Demonstrated
experience in
successfully managing
and implementing
projects strongly
preferred.
none
Financial management Demonstrated
understanding of
budgeting and activity
costing a distinct
advantage
Accountancy or
related discipline would
be an advantage but
not necessary
Production scheduling Demonstrated
experience in scheduling
and assigning employees
mandatory
none
Production achievement Demonstrated skills in
growing and expanding
businesses and achieving
sales targets through
prudent production
management and cost
effectiveness
none, however
experience in quality
assurance
implementation
preferred.
92 Suggested salary is Consultant’s estimate - above appropriate Award rate.
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WEIGH BRIDGE OPERATOR & SECURITY
Job Purpose: To OPERATE WEIGHBRIDGE AND MAINTAIN
SECURITY: Operates weighbridge equipment;
allows entry / departure of only authorised
vehicles and personnel.
Estimated Salary per annum: $22,447 p.a.93
Employ from Month: 6 (Six - or at completion of plant construction)
Skill Required:
Experience in Skill area required:
Required minimum Educational
Qualification (if any):
Weigh Bridge Operation Experience in weigh
bridge operation
preferred
none
Security management Experience in
maintaining security
of company premises
and assets could be
an advantage
none
Equipment maintenance Experience in
maintaining weighing
machines or similar an
advantage
none
Documentation Demonstrated
experience in
documenting /
completing logs an
advantage
none
93 Equivalent to General Labour Rate (Building Construction Industry Award) being $431.68 per week
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LOADER OPERATOR
Job Purpose: To TRANSPORT AND MANOUEVRE PRODUCT OR
MATERIAL: Operates a Loader.
Estimated Salary per annum: $ 20,888 p.a.94
Employ from Month: 6 (Six - or at completion of Plant construction)
Skill Required:
Experience in Skill area required:
Required minimum Educational
Qualification (if any):
Loader Operation Experience in Loader
operation strongly
preferred
Loaders ticket /
certificate strongly
preferred
Equipment maintenance Experience in
maintaining Loading
machines or similar an
advantage
none
Documentation Demonstrated
experience in
documenting /
completing
maintenance, records
and other logs an
advantage
none
94 Equivalent to Transport Distribution and Courier Industry Award - Grade 3 being $401.70 per week
(Grade 4: 5-10 tonne)
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LOADER, PULVERSIER & EXTRUDER OPERATOR
Job Purpose: To FORM PRODUCT and TRANSPORT AND
MANOUEVRE PRODUCT OR MATERIAL:
Operates pulversiser and extruding
equipment; operates Loader
Estimated Salary per annum: $21,283 p.a.95
Employ from Month: 6 (Six - or at completion of Plant construction)
Skill Required:
Experience in Skill area required:
Required minimum Educational
Qualification (if any):
Loader and Heavy Equipment
Operation
Experience in Loader
and heavy machinery
operation strongly
preferred
Loaders ticket /
certificate strongly
preferred
Equipment maintenance Experience in
maintaining Loading
machines, heavy
equipment or similar
an advantage
none
Documentation Demonstrated
experience in
documenting /
completing
maintenance, records
and other logs an
advantage
none
95 Equivalent to Transport Distribution and Courier Industry Award - Grade 4 being $409.30 per week
(Grade 5: 10-34 tonne)
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LOADER & FORKLIFT OPERATOR, BRICK STACKER
Job Purpose: To STACK BRICKS and TRANSPORT AND
MANOUEVRE PRODUCT OR MATERIAL:
Operates Loader and Forklift; Stacks Bricks
Estimated Salary per annum: $21,283 p.a.96
Employ from Month: 6 (Six - or at completion of Plant construction)
Skill Required:
Experience in Skill area required:
Required minimum Educational
Qualification (if any):
Loader, Forklift and / or Heavy
Equipment Operation
Experience in Loader,
Forklift and heavy
machinery operation
strongly preferred
Forklift ticket
mandatory. Loaders
ticket / certificate
strongly preferred
Equipment maintenance Experience in
maintaining Loading
machines, forklifts and
heavy equipment or
similar an advantage
none
Documentation Demonstrated
experience in
documenting /
completing
maintenance, records
and other logs an
advantage
none
96 Equivalent to Transport Distribution and Courier Industry Award - Grade 4 being $409.30 per week
(Grade 5: 10-34 tonne)
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GENERAL HAND
Job Purpose: To MAINTAIN PRODUCTION AND QUALITY:
Ensures operation of machinery and
mechanical equipment; sorts raw material
and other product; attends to general factory
maintenance.
Estimated Salary per annum: $15,080 p.a.97
Employ from Month: 2 - 6 (Two to Six)
Skill Required:
Experience in Skill area required:
Required minimum Educational
Qualification (if any):
General Labouring Demonstrated
experience and track
record in providing
labour services
none
Maintaining machines Experience in the
maintaining of light
and / or heavy
machines an
advantage
none, however some
formal training in
mechanical
engineering would
be advantageous
Technical knowledge Mechanical
engineering skills an
advantage but not
necessary
none, however some
formal training in
mechanical
engineering would
be advantageous
97 Equivalent to Building Products Minor Manufacture Award - ranges from Junior 16-17 ($188.80 per
week) to Junior ($291.70 per week) and Adult ($343.20 per week). Allowance: average, say $290 per
week.
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TRUCK DRIVER (if required)
Note: it is anticipated that deliveries (inwards / outwards) will be sub-contracted.
However, the following is provided should employment be contemplated:
Job Purpose: To TRANSPORT AND DELIVER PRODUCT OR
MATERIAL: Operates a truck and trailer.
Estimated Salary per annum: $21,284 p.a.98
Employ from Month: 6 (Six - or at completion of Plant Construction)
Skill Required:
Experience in Skill area required:
Required minimum Educational
Qualification (if any):
Loader Operation Extensive experience
in Truck Driving and
operation strongly
preferred
Current truck drivers
license (over 2
tonne) mandatory
Equipment maintenance Experience in
maintaining Trucks
and Trailers an
advantage
none
Documentation Demonstrated
experience in
documenting /
completing
maintenance, records
and other logs an
advantage
none
QUALITY ASSURANCE (QA) & TOTAL QUALITY MANAGEMENT (TQM)
Management must recognise the need for proceeding with the implementation
of a formal Quality Assurance program. The Company should proceed to full
implementation a formal program of Quality Assurance, in line with a Quality
System fulfilling the requirements of Australian Standards AS3901 or AS3902 as may
be applicable - the AS3900 Series Standards required by the Clever Country
Policy of the Federal Government and the State Government Purchasing Policy
1991. This will be sufficient to meet the expectations and demand of clients (both
domestic, and potentially international clients), and the industry in general.
The future success of the Company's market penetration to both local, and
potentially export markets, could well depend upon the Company's commitment to QA accreditation, and should therefore be addressed with some priority. Local
Councils are becoming more insistent that service providers (and Petemic is
potentially one of these) be Quality Assured.
98 Equivalent to Transport Distribution and Courier Industry Award - Grade 4 being $409.30 per week
(Grade 5: 10-34 tonne)
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Progression to TQM is an option further on, however will capitalise and strengthen
a formal commitment to QA principles.
Objective: Implementation of Quality Assurance / Total Quality management to
ensure the highest possible product quality standards, and a
commitment to quality by all staff.
Meaning:99 Traditionally Quality has been assessed by a product's reliability,
durability and conformance to specifications.
While these are still important criteria, customer' expectations today
are broader; they are influenced by perceptions of the whole
organisation, not just the products it makes. Enterprises with a high
overall quality rating in the eyes and minds of customers will win both
market share and repeat business. An ongoing competitive
advantage.
Thus, the starting point for Quality-based management is the
customers' viewpoint. It's the perspective from which the enterprise
will plan to utilise the principles of Quality-based management,
known internationally as Total Quality Management (TQM). Total
Quality Management is the driving force for company-wide
improvement; commitment to improving performance at every level;
strategies to improve its processes and systems; enhanced
productivity and profitability; involvement and development of every
employee.
It embraces all products, all services, all processes, all people, at all
levels.
99 Adapted from NIES brochure - Quality: The Strategic Advantage
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Responsibility:100 Initially, management must have an awareness and
understanding of Total Quality Management. It is they who must
be convinced of its potential strategic advantage. It is they
who must commit to shaping, leading and resourcing their
organisation in the TQM implementation. TQM recognises the
role of people as managers and workers in the system and the
vital contribution they can make together towards
improvement in every aspect of the business.
So quality improvement in an organisation becomes a way of
life; it involves everyone from the CEO to the most junior
employee in the process of on-going improvement.
Implementation: NIES has developed a comprehensive TQM 'How To' model. the
NIES network will assist in the selection of a trained and licensed
consultant.
This should follow the Company's involvement in the QA
process.
A high level of Quality Control can be achieved through the Company's
commitment to a formal program of Quality Assurance / Total Quality
management, including export accreditation if required (AS 3902 - 1987)101.
100 Adapted from NIES brochure - Quality: The Strategic Advantage
101 Company to install a Quality system fulfilling all the requirements of Australian Standards AS3901 or
AS3902, now more generally described as the ISO9000 series.
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PRODUCTION & PROCESSING OPERATIONS
CAPACITY
The capacity of feed and product storage will depend upon aspects such as
supply arrangements, operating schedules, requirements for buffer capacity,
marketing arrangements and seasonal demand for the product. Open stockpiles
offer advantages to silos in that they are more accessible and not prone to
blockage or hold up. On the other hand they take up more ground space and
can be subject to product degradation. Examples of sizes for a 500 tpd waste
plant, receiving on one shift per day, 5 days per week are:
Waste receival 500 tonnes
Intermediate waste 1,500 tonnes
Product 3,000 tonnes
WASTE RECEIVING AREA
The waste receiving area can be bunker or open floor type. The later is
becoming more popular overseas as it enables inspection and some facility for
pre-sorting. It will need to be enclosed to prevent escape of odours, and sloped
to a collection sump to collect drainings and wash-down. Deodorising sprays will
most likely be required.
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Conveyor #11Conveyor #10
Conveyor #9Conveyor #8Conveyor #7Conveyor #6
Conveyor #5Conveyor #4Conveyor #3Conveyor #2
Secondary Vibrating Screen
Pulverisor #2Primary Vibrating Screen
Pulverisor #1Ferrous Metal Sorter
Garbage Hopper
Weighbridge #1
Tumble DryerMixerBinder Station
Weighbridge #2
Storage BaysCrusherRecovery Bay
Cutters #1 and #2
Extruder
COMPACTING & HEATING STAGE
WASTE SELECTION WASTE REDUCING MEANS
MIXER & BINDER STAGE
BUILDERS RUBBLEHOUSEHOLD GARBAGE
CLAYINDUSTRIAL WASTE
(Non-Toxic)
Conveyor #1
Plastics BINS(Product for Sale)
Building Rubble (Oval)
Crusher
Pre-Heater (600deg.C)
Revolving Tumbler
Kiln/s(1,200deg.C)
BINS(Product for Sale) Small Ferrous
Metal Separator
Figure 1- Block Diagram of the Petemic Waste Recycling Process (Provisional Patent)
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Small Ferrous Metal Separator
Conveyor #10Conveyor #9
Conveyor #8Conveyor #7Conveyor #6
Conveyor #5Conveyor #4Conveyor #3Conveyor #2
Secondary Vibrating Screen
Pulverisor #2Primary Vibrating Screen
Pulverisor #1Ferrous Metal Sorter
Garbage Hopper
Weighbridge #1
MixerBinder Station
Weighbridge #2
Storage BaysRecovery Bay
Pan Palletiser
COMPACTING & HEATING STAGE
WASTE SELECTION WASTE REDUCING MEANS
MIXER & BINDER STAGE
BUILDERS RUBBLEHOUSEHOLD GARBAGE
CLAYINDUSTRIAL WASTE
(Non-Toxic)
Conveyor #1
Plastics
BINS(Product for Sale)
ROAD BASE (Crushed Building Rubble)
Building Rubble (Oval)
Crusher
Kiln/s(1,200deg.C)
BINS(Product for Sale)
METAL
Tumble Dryer
BINS(Product for Sale)
METAL
Figure 2- Block Diagram of the Petemic Waste Recycling Process (Petty Patent)
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ENVIRONMENTAL GUIDELINES / ISSUES
INTRODUCTION
The primary legislation governing environmental issues in the context of the
operation of a Petemic Plant are addressed in the Environmental Protection
(Interim) Regulations 1995 (SL No. 46 of 1995). The primary areas of responsibility
are:
1. Ozone depleting substances. Regulations set out parameters for installation
and control and release of controlled substances.
2. Licensing. Conditions for licensing are set out, including monitoring of
operations. An Environmental Management Program will be required.
3. Assessment criteria for air quality are set out. National Guidelines for air
quality and control of emissions follow standards adopted by ANZECC & NH
& MRC (1985)
4. Assessment of water quality uses Australian Water Quality Guidelines for
fresh and marine waters (ANZECC). Sampling follows water quality
sampling manual. (2nd Ed. 1995)
5. Noise level parameters are defined. Maximum noise levels are set out in
the schedules. In general the acceptable limit will be 8-10 dB above the
background noise level.
There are 10 schedules to the Regulations defining activities, licensing fees,
controlled substances and compliance limits.
For the Petemic process, an EIS (Environmental Impact Statement) will almost
certainly be required containing very specific data.
An environment management plan will also be required.
Licensing will be dependent on satisfying both the Council and the State
Government. In practice the administration and enforcement of the Act is
devolved to Local Government, but the Consultants believe that the Caboolture
Council is reluctant to specify any clear guidelines in advance of a detailed plan.
OVERVIEW
The disposal or treatment of domestic waste is classified as a Level 1
Environmentally Relevant Activity under the Environmental Protection (Interim)
Regulation 1995 (SL No 46 of 1995) (“The Regulation”). The Regulation is
Subordinate Legislation as part of the Environmental Protection Act 1994.
The Regulation requires that defined Activities must be licensed, and must
comply with regulatory guidelines.
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The compliance requirements are presently in a state of flux, as new and uniform
guidelines are developed for all Australian States following the passage of the
National Environmental Protection Council Act 1994 (Commonwealth), and the
complementary legislation; the National Environmental Council (Queensland)
Act 1994. In some instances new standards are in force and replace former
guidelines established under a range of earlier Queensland legislation. In other
instances, earlier guidelines will remain in force until new guidelines are
developed. Moreover, it is likely that Environmental Auditing under ISO 14000 will
be implemented in early 1996. Standards Australia through its QRII Committee,
may issue the latest draft of ISO 14000 as an interim standard for Australia.
The Regulation (SL No 46 of 1995) establishes new and detailed guidelines for the
use of ozone depleting substances, particularly refrigerants and other
halogenated hydrocarbons. It is possible that these particular requirements of
the Regulation will not impact greatly on the Petemic process. But in the
absence of detailed information on the process machinery and the nature of the
gas emissions, the writer cannot be certain that there will be no impact at all.
For the other elements of Environmental Compliance, Transitional Provisions will
apply. These Transitional Provisions are included as Part 5 of the Regulation. In
general, the Transitional Provisions apply to air pollution, water quality, and noise.
It can be expected that the new Environmental Guidelines will apply to the
establishment of any Petemic manufacturing facility, the operation of the facility,
and the training of the staff.
It is almost certain that an Environmental Impact Study (EIS) will be required prior
to licensing. It is equally likely that a Management Plan will be required as part of
the licensing procedure.
With the particular product range anticipated from the Petemic Process, it is also
likely that quality parameters will be set for the testing and use of any exported
product.
Although the Minister for Environment and Heritage administers the Environmental
Protection Act 1994, Ministerial powers are usually delegated to Local
Government Authorities.
Accordingly, the administration of licensing and compliance for a Petemic facility
sited in the Narangba Industrial Estate is likely to be managed by the Caboolture
Shire Council. The Council has indicated that the Petemic process is likely to be
classified to a zone for “Hazardous, Noxious or Offensive Industry”. The potential
site in the Narangba Industrial Estate lies within such a zoning.
Environmental management is a politically sensitive issue nowadays, and
Councils (including Caboolture) will be reluctant to depart at all from accepted
guidelines in licensing a new facility, unless they can be certain that “the public
interest” is being served, and that community sentiment is strongly in favour of the
establishment of the facility.
The absence of any strong precedents relating to overall compliance under the
new legislation will mean that any and all Councils will be extremely reluctant to
commit themselves to approving any new project having environmental
overtones without a very detailed submission.
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Enquiries with the Caboolture Shire Council have confirmed their level of
uncertainty about the intention of the Government in the administration of the
Environmental Protection Act. It is virtually certain that the Council will decline to
offer any guidelines or advice other than those contained in the Legislation and
Regulation. Moreover, responsible Council Officers have indicated to the writer,
that the Council will not be prepared to offer any opinion on the acceptability of
a project without a detailed submission in terms of the Act.
The present policy of the Council is to require a “Request for Terms of Reference
for an Environmental Impact Statement” pursuant to Section 8.2 of the Local
Government (Planning and Environment) Act to be lodged with the Department
of Housing, Local Government and Planning. This particular Legislation defines
“Designated Developments” requiring an EIS. Item 30. of these designated
activities is reproduced below:
30. Refuse transfer station, sewage treatment plant, waste disposal facility,
waste landfill or waste treatment plant for burying, crushing, disposing of, incinerating, processing, recovering, storing, or transferring hospital wastes or chemical, liquid, oil, petroleum, or solid wastes.
Caboolture Shire Council is likely to insist on a formal reference in terms of Section
8.2 of the Local Government (Planning and Environment) Act before giving any
opinion at all on the Petemic process.
This would seem to require some operating experience, or at least, a very
detailed specification of operating parameters. It is difficult to see how an EIS
can be constructed without actual operating data derived from the operation of
major plant items using the input feedstock likely to be used in the process.
GUIDELINES BACKGROUND
As mentioned above, Transitional Provisions are in force for designated activities.
These arrangements cover;
1. Air and Emission Quality.
2. Water Quality
3. Noise
Air and Emission Quality
Air quality will be subject to analytical contents standards, and testing for
dispersion. The present interim compliance standards follow “Exposure Standards
for Atmospheric Contaminants in the Occupational Environment” adopted by
the National Occupational Health and Safety Commission, October 1991. The
interim “national air quality standard” means the lower value of;
(a) for fluoride-a goal stated in ‘National Goals for Fluoride in Ambient Air and
Forage, March 1990’ published by ANZECC;
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(b) for carbon monoxide, lead, nitrogen dioxide, ozone or photochemical
oxidants, sulphur dioxide or particles; a goal adopted in session by the
National Health and Medical Research Council (NHMRC).
(c) for odour, units calculated under the approved laboratory method.
The more recent “National Guidelines for Control of Emission of Air Pollutants from
New Stationary Sources” was published by the Australian Environmental Council,
National Health and Medical Research Council (NHMRC) in 1986.
These guidelines are included as Schedule 1 at the end of this section.
Water Quality
In general, a facility of this type will be required to retain all liquid effluent
produced on the site. Containment of run-off after rain will also be required if the
run-off is likely to scavenge any pollutants from the surface of the site. The use of
containment ponds to intercept any surface run-off may be required. Where
there is a chance of pollutants percolating through to the groundwater, a
mechanical barrier may be required. The use of sheet sealing to prevent
percolation to the groundwater is becoming a more common feature of urban
refuse landfill sites.
The more stringent requirements for site pollution and percolation should be a
positive point for the Petemic process relative to the increasing compliance costs
in landfill. But compliance will also be a feature of the Petemic operating site,
and care will need to be taken to restrict any risk of site pollution and run-off from
introduced refuse.
The standard criteria for water under the Transitional Provisions of the Regulation
are:
(a) for paragraph (j) of the definition “standard criteria” in the Act, the
Australian Water Quality Guidelines for Fresh and Marine Waters published
by ANZECC is the relevant standard for an activity involving the release of a
contaminant into waters.
(b) for subsection (1), the collection, storage, preservation and analysis of
samples for measuring a parameter under the Guidelines must be carried
out under the Water Quality Sampling Manual, 2nd edition, February 1995.
It is likely that the relevant ANZECC standard applied will be the guidelines for
raw waters for drinking purposes. These guidelines are attached as Schedule 2.
Guidelines for Noise
The standard for noise is somewhat dependent on location. Proximity to urban
residential areas requires a higher level of noise control than for more isolated
areas. The hours of operation are also relevant. The acceptable upper limit for
noise pollution is dependent on both the time and the ambient noise levels. In
practice, noise levels will be measured at the most noise sensitive point on the
boundary of the site.
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Under these Guidelines, the standard is related to the adjusted average
maximum A-weighted sound pressure level under AS 1055.1-1989; Acoustics-
Description and Measurement of Environmental Noise: Part 1-General
Procedures.
The “ambient noise” means the totally encompassing sound in a particular
environment. An approved instrument for calculating the level of noise is defined
as an instrument that complies with the specifications for sound level meters type
1 or 2 under AS 1259.1-1990 Acoustics-Sound Level Meters.
Schedule 7 of the Regulation sets the maximum noise level for a commercial
place as 10dB above the background level during the day, and 8dB above the
background level during the night (10pm to 7am).
REFERENCES (Environmental Issues)
Agriculture and Resource Management Council of Australia and New Zealand
(1994) “Guidelines for Sewage Systems. Acceptance of Trade Waste (Industrial
Waste)”. Canberra
Australian Environmental Council, National Health and Medical Research Council
(1986) “National Guidelines for Control of Emission of Air Pollutants from New
Stationary Sources” - Australian Government Publishing Service, Canberra
Australian and New Zealand Environment and Conservation Council (1992)
“Australian Water Quality Guidelines for Fresh and Marine Waters”. Canberra
Caboolture Shire Council (1993), “Waste Management Strategic Plan” Sinclair
Knight Consulting Engineers for Caboolture Shire Council.
Caboolture Shire Council (1993), “Strategic Land Use Plan, 1993”
Caboolture Shire Council (1993) “Procedures for the Submission of Consent
Applications within the Caboolture Shire”.
Monahan, D. & Scott, R. (1994), “New Approaches to Regulation of Environment
Protection including Waste Minimisation Aspects” in Achievements and
Challenges; Proceedings of the 2nd National Hazardous & Solid Waste
Convention, Melbourne. Australian Water & Wastewater Association and Waste
Management Association of Australia; Artarmon NSW. 82-89
Queensland Department of Environment and Heritage (1994), “Draft Waste
Management Strategy for Queensland”
Queensland Department of Environment and Heritage (1994), “Environmental
Protection Act 1994”
Queensland Department of Environment and Heritage (1994), “Environmental
Protection (Interim) Regulation 1995”
Queensland Department of Housing, Local Government and Planning (1992),
“Environmental Impact Statements and Designated Developments”. Brisbane
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Queensland Department of Housing, Local Government and Planning (1992),
“Request for Terms of Reference for an Environmental Impact Statement”.
Brisbane.
Stone, P. “Neutralysis - A Use for Municipal Waste” Proceedings of the
International Conference of Solid and Hazardous Waste Management
(Enviroworld), Singapore, June 1991.
Working Group Environmental Auditor Certification (1995), “Outline Proposal for
Environmental Auditor Certification System”. Artarmon NSW
Working Group Environmental Auditor Certification (1995), Progress Update - April
1995. Artarmon NSW
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Schedules to Environmental Guidelines & Issues SCHEDULE 1.1 Table 1 Schedule of Pollutants
Pollutant Standard applicable to
Standard Notes
Dark smoke102 Stationary fuel-burning sources
1. Fired by solid fuel
2. Fired by any other fuel
Shipping
Ringelmann 1
Ringelmann 1
Ringelmann 1
Opacity1
(excluding effect
of water vapour
All sources
except the following:
Portland cement plants
- clinker cooler
- other
Nitric acid plants
Iron and steel plants
- basic oxygen process furnaces
- dust handling equipment
- other
Primary aluminium reduction plants
- prebake
- other
Lime manufacturing plants
- rotary lime kilns
- other
Petroleum refinery FCCU
- other
Kraft pulp mills
- recovery furnaces
other
20%
10%
20%
10%
10%
10%
20%
10%
20%
10%
20%
30%
35%
20%
Solid particles Boilers other than power stations
burning solid fuels
Power station boiler
0.25 g.m.-3
0.08 g.m. -3
2% CO2
reference
level
12% CO2
reference
level
102 The more stringent (level) of Dark Smoke or Opacity to apply, dependent on measurements
available.
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SCHEDULE 1.2 Table 1 Schedule of Pollutants (continued)
Pollutant Standard applicable to
Standard Notes
Solid particles Incinerators
- less than 300 kg/hr
- equal to or greater than 300 kg/hr
Furnaces for the heating of metals
Any other trade, industry process,
industrial plant or fuel-burning
equipment
0.5 g.m. -3
0.25 g.m. -3
0.1 g.m. -3
0.25 g.m. -3
12% CO2
reference
level
12% CO2
reference
level
Except where
standards in
Table 2 apply
Soot Any boiler or furnace burning liquid
or gaseous fuels
Bacharach
Shade 3
Other than
for lighting or
soot blowing
Sulphuric acid
mist and sulphur
trioxide
Sulphur dioxide
Any trade, industry or process other
than sulphuric acid plants and fuel
burning equipment
Fuel-burning equipment
Sulphuric acid plants or plants
producing sulphur trioxide
Any trade, industry or process
manufacturing sulphuric acid
0.1 g.m. -3
expressed as
SO3
0.2 g.m. -3
expressed as
SO3
0.075 kg.t-1 of
100% acid or
equivalent
2.0 kg.t -1 of
100% acid
Acid gases 0.4 g.m. -3 Acid gases
and mists
readily
soluble in
water and
expressed as
hydrochloric
acid
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SCHEDULE 1.3 Table 1 Schedule of Pollutants (continued)
Pollutant Standard applicable to
Standard Notes
Nitric acid or
oxides of
nitrogen103
Nitric Acid Plants
Steam Boilers
For liquid and solid fuels
- general industrial
- for electricity generation
where rated electrical output is as
follows:
less than 30 MW
greater than 30 MW
For gaseous fuels
Gas Turbines
For gaseous fuels
- rated electrical output as follows:
less than 10 MW
greater than 10MW
For other fuels
- rated electrical output as follows:
less than 10 MW
greater than 10 MW
2.0 g.m. -3
0.5 g.m. -3
0.5 g.m. -3
0.8 g.m.-3
0.35 g.m.-3
0.09 g.m. -3
0.07 g.m. -3
0.09 g.m. -3
0.15 g.m. -3
Expressed as NO2
Nitrogen oxides
calculated as
NO2 at a 7 per
cent oxygen
reference level104
Nitrogen oxides
calculated as
NO2 at a 15 per
cent oxygen
reference level2
Fluorine
compounds
Any process or industrial plant used
for the manufacture of aluminium
from alumina
Any other trade, industry or process
0.02 g.m. -3
expressed as
hydroflouric
acid
1.0 kg F or F
compounds
expressed as F
per tonne of
aluminium
produced
0.05 g.m. -
expressed as
hydrofluoric
acid
Limit refers to total
emissions from
new primary
aluminium
smelting facilities
103 The corrected nitrogen oxide emission concentration is calculated as follows:
Corrected NOx concentration
= Measured Nox concentration x [21% volume, minus Reference Oxygen Concentration (% volume)]
[21% volume, minus Measured Oxygen Concentration (% volume)]
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SCHEDULE 1.4 Table 1 Schedule of Pollutants (continued)
Pollutant Standard applicable to
Standard Notes
Chlorine and
chlorine
compounds other
than hydochloric
acid
Any trade, industry or process 0.2 g.m. -3
expressed as
chlorine
Carbon
monoxide
Any trade industry or process other
than cement manufacture, brick
manufacture and stationary
industrial diesels
1.0 g.m. -3 Processes
exempt
should be
fitted with
stacks in
order to
achieve
adequate
dispersion
Hydrogen
sulphide
Any trade, industry or process 5.0 mg.m -3
Total of antimony,
arsenic,
cadmium, lead,
mercury and
vanadium and
their respective
compounds
Cadmium and its
compounds
Mercury and its
compounds
Any trade, industry or process
Any trade, industry or process
Any trade, industry or process
10.0 mg.m -3
3.0 mg.m. -3
expressed as
cadmium
3.0 mg.m -3
expressed as
mercury
Addition of
each metal
or compound
expressed as
the metal in
each case
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SCHEDULE 1.5 Table 2 Schedule of Hazardous Pollutants*
Pollutant Standard applicable to
Standard Notes
Nickel and its
compounds,
except nickel
carbonyl
Nickel carbonyl
Beryllium and its
compounds
Mercury and its
compounds
Vinyl chloride
monomer
Any trade, industry or
process
Any trade, industry or
process
Extraction plants,
ceramic plants,
foundries etc.
Mineral ore processing
and mercury cell
chlore-alkali plants
Waste-water-sludge
incinerators
Ethylene dichloride
purification
Ocychlorination
Vinyl chloride formation
and purification
Polyvinyl chloride
polymerisation plants
20.0 mg.m -3 expressed
as nickel
0.5 mg.m. -3 expressed
as nickel
10.0 g over 24 hour
period
2300 g over 24 hour
period
3200 g over 24 hour
period
20.0mg.m-3
0.1 g.kg - 100% ethylene
dichloride product
20.0 mg.m -3
20.0 mg.m -3
Tentative standard
only
Limit refers to total
emissions from all
points in a facility
Limit refers to total
emissions from all
points in a facility
Limit refers to total
emissions from all
points in a facility
Limit refers to total
emissions from all
points in a facility
Asbestos An emission standard for asbestos fibres is at present exceedingly
difficult to define.
To assist in the design of equipment for the control of asbestos emissions,
the following is recommended:
All emissions shall be passed through a fabric filter collection device
complying with section 61.154 of the United States Federal Register 48
(135):p. 32132, July 13, 1983, or equivalent before they escape to or are
vented to the outside air.
There shall be no visible emissions.
Best available control technology shall be used to minimise fugitive
emissions. There shall be no visible fugitive emissions.
*These pollutants will be kept under review. Further standards will be declared when appropriate.
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SCHEDULE 2.1 Table 4.1 Summary of quality guidelines for raw waters for drinking purposes subjected to coarse screening
Parameter
Guideline values (mg/L, unless otherwise stated)
Biological parameters
Micro-organisms:
Total coliforms
Faecal coliforms
Algae
Toxic parameters
Inorganic:
Arsenic
Asbestos
Barium
Boron
Cadmium
Chromium
Cyanide
Lead
Mercury
Nickel
Nitrate-N
Nitrite-N
Selenium
Silver
Organic:
Benzene
Benzo(a)pyrene
Carbon tetrachloride
1,1-Dichloroethene
1,2-Dichloroethane
Pentachlorophenol
Pesticides
Polychlorinated biphenyls
Tetrachloroethene
2,3,4,6-Tetrachlorophenol
Trichloroethene
2,4,5-Trichlorophenol
2,4,6-Trichlorophenol
Radiological:
Gross alpha activity
Gross beta activity
(excluding activity of 40K)
Up to ten coliform organisms may be occasionally accepted in
100 mL. Coliform organisms should not be detectable in 100 mL
of any two consecutive samples. Throughout any year, 95% of
samples should not contain any coliform organisms in 100 mL.
No sample should contain any faecal coliforms in 100 mL
Up to 5,000 cells/mL may be tolerated; levels of 1,000 - 2,000
cells/mL of cyanobacteria may result in problems
0.05
NR
1.0
1.0
0.005
0.05 = 50 ug/l
0.1
0.05
0.001
0.1
10.0
1.0
0.01
0.05
10.0 ug/L
0.01 ug/L
3.0 ug/L
0.3 ug/L
10.0 ug/L
10.0 ug/L
(Table 4.2)
0.1 ug/L
10.0 ug/L
1.0 ug/L
30.0 ug/L
1.0 ug/L
10.0 ug/L
0.1 Bq/L
0.1 Bq/L
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Table 4.1 Summary of quality guidelines for raw waters for drinking purposes subjected to coarse screening (continued)
Parameter
Guideline values (mg/L, unless otherwise stated)
Aesthetic parameters
Physical:
Colour
Taste & odour
Turbidity
15.0 Pt-Co
Not objectionable*
Site-Specific determinant
Chemical:
Aluminium
Ammonia (as N)
Chloride
Copper
Oxygen
Hardness (as CaCO3)
Iron
Manganese
Organics (CCE & CAE)
pH
Phenolics
Sodium
Sulfate
Sulfide
Surfactant (MBAS)
Total dissolved solids
Zinc
0.2
0.01
400.0
1.0
> 6.5 (> 80% saturation)
500.0
0.3 = 300 ug/L
0.1
0.2
6.5-8.5
0.002
300.0
400.0
0.05
0.2
1,000.0**
5.0
NR No guidelines recommended at this time; MBAS Methylene blue active substances
* Engineering & Water Supply Department suggests combined concentration of
geosmin and methylisoborneol should be less than 20 ng/L
** Levels in excess of 500 mg/L cause a deterioration in taste
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BUSINESS PREMISES & INFRASTRUCTURE SUPPORT
INFRASTRUCTURE REQUIREMENTS
Supporting infrastructure Requirements are assessed as follows (further details are
shown at Attachment 5 of this Report):
Land Requirements
Requirement
Specification
Land Area • 10 to 15 acres (4.05 to
6.07 hectares)
minimum105.
Zoning • Noxious, hazardous or
offensive zoning, or
similar
Services
Requirement
Specification
Power • 4,040 to 4,850 kilowatts per hour of
operation106.
• Transformer & Substation required.
• 5,700 kWh/hr installed capacity
Telephone
Access Road • Bitumen
Sewerage and Septic (Staff Amenities)
Gas or Recycled Furnace Oil (optional) • Fuel Oil: 780 to 2,100 litres per hour
of operation107.
• 90 Gj/hr maximum gas
requirement.
Water (fresh) • Approx. 1,210 cubic metres
maximum per day108
• See note below
• Can be treated sewerage water
Lime (used for gas scrubbing) • 3,000 tpa
Diesel (fuel for plant) • 354 kL/yr109
105 40,469 to 60,703 square metres
106 4,040 kWh/hr average running requirement; 4,850 kWh/hr peak running requirement; 5,700 kW
installed capacity
107 The fuel oil requirement could vary from of the order of 780L/hr using heat recovery to 2100 L/hr
without heat recovery. If gas is required then the maximum requirement is 90 Gj/hr.
108 Equivalent to 42,731 cubic feet, or 1,583 cubic yards
109 354,000 litres per annum
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1,200 m3/day of water is required (may be recycled water) plus portable water
@ 0.2 m3/person/day.
The 1,210m3/day is based on:
Washdown and pallet makeup: 70 m3 day
Scrubber water: 116 m3 day
Gas Cooling: 1,024 m3 day
Total: 1,210 m3 day
General Infrastructure
Requirement
Specification
Water Holding Tank • 90Kl (concrete)110
Silos • Steel or Concrete
• 350 tonne111 holding capacity
Bunker Holding Pits x 3 • Open floor space is
preferred112
Bunker Holding Pit (see note below
table) • Fully enclosed113
Control Equipment, Electronics, Wiring • approx. 15% of capital cost (as
per engineers specifications)
114
Air filtration Unit115 • as per engineers specifications
(see Note below table)
Engineering Design Fee • 10% of final capital cost (say
$6.0m)
Environmental Management Plan
Environmental Impact Statement • May not be required (not
included for the purpose of this
analysis)116
110 The water holding tank is needed for surge capacity only. Capacity of this tank is estimated at 90kL.
111 Equivalent to 350 cubic metres. On ground stockpiles are preferred. “Open” stockpiles offer
advantages to silos in that they are more accessible and not prone to blockage or hold up. On the
other hand they take up more ground space and can be subject to product degradation.
112 As above (“Open” stockpiles offer advantages to silos or as in this case, bunker holding pits)
113 A Waste Transfer Station has now been completed at Narangba. This means that there is a reduced
requirement for holding pits since waste can be accessed directly and locally on a virtually “ad
hoc” basis (i.e. as required). Also, refer note below table: Drainage collection and deodorising
required.
114 Estimated electrical cost (from Perry Chemical Engineers Handbook 6th Edition Table 25-50) is from
13% to 25% of delivered equipment cost. Instrumentation is estimated to be between 3% and 12% of
delivered equipment cost.
115 This is for the purpose of gas emission, and air pollution control
116 This Report assumes that all Research and Development has been completed, a Pilot Plant
established which has proven the concept. This Report assumes operation of a “full scale”
commercial / semi-commercial Plant, i.e. Stage IV operation as described in the attached Report
completed by Enginneers Chemquip Pty Ltd. Therefore, development phases (Stages I to III being
Conceptual, Bench Scale Testing, and Pilot Scale Stage) are assumed to have been successfully
completed.
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Explosion suppression and relief on
Pulveriser
• as per engineers specifications
Fuel Storage Bunds • as per engineers specifications
The waste receiving area can be bunker or open floor type. The later is
becoming more popular overseas as it enables inspection and some facility for
pre-sorting. It will need to be enclosed to prevent escape of odours, and sloped
to a collection sump to collect drainings and wash-down. Deodorising sprays will
most likely be required.
The air pollution equipment specified will vary depending on the licence
conditions. It could be reasonably expected to include:
• afterburner
• quench (cooling)
• acid gas scrubbing
• particulate removal (baghouse or ESP)
The above specifications do not include:
1. Engagement of Plant Construction Team (supply and installation of plant)
2. Computer Programming and Software
BULDING (PREMISES)
Requirement
Specification
Main building area to house plant and
machinery
• 10,000 sq.m.
• Height minimum 6 metres.
• Slab size 4 to 12 inches
reinforced117
Sound-proofed Pulversing Room and
Crushing Plant
• 500 sq.m. approx.
• Explosion proof
• 12 inch reinforced slab floor118
Computer Room • 25 sq.m.
• air-conditioned
Office • 80 sq.m.
• air-conditioned
Staff Amenities Block • 150 sq.m. minimum, including
lunch room, showers, lockers and
toilets.
•
117 The slab sizes will vary from say 4 inch to approximately 12 inch depending on use. The pulverises
and other large equipment will require special foundations and slab design.
118 To be advised by Engineer Mr Peter Stone (matter currently being investigated)
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SUNDRY PLANT & EQUIPMENT
Requirement
Specification
Front End Loaders • x 3 to 4119
Forklift • x 1
Motor Vehicles120 • x 3121
Computer, Printer • One 16Mb Ram, 500Mb Hard disk;
486 or Pentium
• 5 ppm Laser printer or better
• One Notebook 486 Computer122
Office Furniture & Equipment •
Staff Amenities • Fridge
• Uniforms
• Safety Equipment
Safety Equipment • Fire Fighting Main, Hydrants and
Hosepoints
• Fire Fighting Extinguishers
• First Aid kit
• Respiratory Protection
• Gloves, earmuffs, helmets, etc.
Security System • as per engineers specifications
Computer based Plant Control System •
119 3 or 4 front end loaders are likely to be required (1 or 2 for waste receival, 1 for product, 1 for
intermediate product handling).
120 Motor vehicles are provided for the General Manager, Administration Manager, and the Production
Manager
121 A plant utility will be required but may be one of the 3 vehicles listed.
122 There is likely to be a requirement for at least one notebook computer for plant work
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COMMERCIAL VIABILITY: INCLUDING FINANCIAL PLANNING &
ANALYSIS
INTRODUCTION
Technical consultants Chemquip Pty Ltd suggest that the Project can be
progressed on the basis of a four stage development program. This would be
required to bring the technology from the present concept stage to commercial
viability. The suggested program encompasses bench and pilot scale testing.
Product produced in these tests will need to be tested for at least leachability
and engineering properties, dependent on the final market.
The development program is likely to take between 5 and 7.5 years. A preliminary
estimate of funding requirements based on what was spent on Neutralysis
development is $16.5 million.
Alternate strategies are suggested for consideration. These are separate
treatment of building rubble, specific target marketing, and obtaining a licence
for the Neutralysis process. These alternate strategies have not been factored into
the Commercial Viability tests which form part of this Report.
Status of Development Work
At this point of time the development work has been basically conceptual. Only
one limited trial has been attempted.
Assuming the pre-feasibility study shows that the project is viable, and providing
there are considered to be no insurmountable restrictions due to the patent
situation, then the next stage of the process should concentrate almost
exclusively on technology development.
Development of the technology should proceed in four stages as outlined in the
attached Report “Petemic Technology - A Technology Review”. The results of
each stage should be reviewed prior to commitment to proceed with the next
stage. Reviews should also be held at appropriate times during each stage.
These four stages are summarised below:
STAGE 1 - CONCEPTUAL
At this initial stage the basic process parameters and testing requirements should
be defined. Any restraints imposed by potential problems such as patent
infringement should be built in to the project.
STAGE 2 - BENCH SCALE TESTING
The stage determines the feasibility of operating at the selected conditions,
which are checked using bench scale equipment. Small batches of product
should be produced to provide samples for initial testing for key properties.
Operations at this stage are essentially on a batch basis.
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STAGE 3 - PILOT SCALE STAGE
The pilot stage is used:
• for validation of the process
• for an assessment of continuous operation
• to provide the basis for scale-up to the semi-commercial or commercial
design
• to produce sufficient product for large scale testing and trials
• to develop quality control procedures for the inputs, outputs and process
• to enable development of confidence amongst plant designers and
equipment suppliers so that a process guarantee can be obtained for the
plant performance. This guarantee is usually required to obtain funding for
the commercial plant.
• for the detailed examination of process parameters and for the solution of
operating problems. Some of the parameters which may need to be
investigated are, typically, process control, residence times, pellet fusion,
thermal stresses, gas quality, kiln ringing, and emissions composition.
During this stage a generic engineering design is often carried out to assist in
market development and to define capital costs more closely.
STAGE 4 - SEMI-COMMERCIAL/COMMERCIAL
This stage is usually a scale up from the Pilot Scale Stage and follows the
completion of a major feasibility study which would include a detailed
engineering study. For a plant of the type envisaged for the Petemic Technology
a scale-up factor of approximately 8 to 10:1 is appropriate for developmental
units.
Usually fine tuning and development of the process would be expected to
continue at this stage, leading to a modified and improved design for the
second plant.
The stage incorporates detailed process and engineering design, procurement,
construction and commissioning.
It is also this stage against which the Commercial Viability is assessed which is the
subject of this Report.
TIMING
The estimated duration of the above stages is within the following ranges:
Stage 1 6 - 9 months
Stage 2 12-18 months
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Stage 3 24-30 months
Stage 4 24-36 months
Some overlapping is possible. The estimated total duration from the
commencement of concept planning to completion of the commissioning of a
commercial or semi-commercial plant is between 5 and 7.5 years. This assumes
that an order is received for a commercial plant immediately after the
completion of pilot scale testing.
The financial projections in this Report assume the following milestones: (for detailed information, refer Attachment 4 - Plant Construction and Capital
Development Program)123
Stage Project Stage Description Commencement Duration
1 Conceptual 15-Dec-94 9 months
2 Bench Scale Testing 14-Sep-95 12 months
3 Pilot Scale Stage 13-Sep-96 24 months
4 Date to Commence Commercialisation 13-Sep-98
Plant Construction 13-Sep-98 14 months
Plant Construction Completed 13-Nov-99
Commercial Product / Equipment Testing 13-Nov-99 4 months
Commercial Production / Sales Commences 14-Mar-2000 6 months
Project Completion (Commercial Plant Built & In Full Operation) 12-Sep-2000
Total Project Duration to Plant Commissioning 3.8 Years
Stage 4 (Commercialisation) 2.0 Years
Total Project Duration 5.8 Years
SUPPORTING DATA FOR ESTABLISHING COMMERCIAL VIABILITY
(FINANCIAL PROJECTIONS AND ASSUMPTIONS)
The supporting data behind the financial and production projections contained
in this Report are comprehensively detailed in the following Attachments:
Attachment 5 - Commercial Viability Supporting Schedules
• Schedule 1 - Primary Base Assumptions
• Schedule 2 - Major & Secondary Inputs & Outputs (Material Balance)
• Schedule 3 - Infrastructure & Costs
• Schedule 4 - Building (Premises)
• Schedule 5 - Sundry Plant & Equipment
• Schedule 6 - Plant Operating Equipment
• Schedule 7 - Depreciation Schedule
• Schedule 8 - Primary Operating Costs / Quantities
• Schedule 9 - Schedule of Salaries, Wages, & Sub-Contractors
123 Also, refer Schedule 1 of the of the Commercial Viability Supporting Schedules.
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• Schedule 10 - Cash Flow Assumptions (Sundry)
• Schedule 11 - Loans, Leasing & Hire Purchase Schedule
Attachment 6 - Cash Flow Budgets
• Cash Flow Budget - Year 1
• Cash Flow Budget - Year 2
• Cash Flow Budget - Year 3
• Cash Flow Budgets - Years 1, 2, 3, and Y.I.Y.O.
Attachment 7 - Profit & Loss Summary (Years 1, 2, 3, and Year-In-Year-Out). Attachment 8 - Balance Sheet Analysis (Years 0, 1, 2, and 3). Attachment 9 - Break Even Analysis (Profit & Loss Summary)
The above attachments will be referred to throughout this section of the Report:
FINANCIAL PLANNING & ANALYSIS
Objectives
In overall terms, the major objectives in completing the financial planning and
analysis section of this Report are:
• To establish commercial viability of the Project.
• To establish the parameters upon which commercial viability can be
demonstrated.
• To establish the level of funding required to implement the Project.
• To determine the point (operating and other parameters) at which the
Project can “Break - Even”.
• To determine the variables upon which the Project is most sensitive.
Commercial Viability - Overview of Results
The Financial Projections contained in this Report demonstrate that the Project is
marginally viable, with a Year-In-Year-Out Net Profit After Tax of approximately
$0.5m.
The primary base assumptions used in calculating this amount are that of 503
tonnes of Municipal Solid Waste (MSW) Garbage is received daily at a price
$40.00 per tonne, with an output of 500 cubic metres of aggregate (350
tonnes)124 sold at $14.00 per tonne.
124 Based on 0.7 bulk density
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The above primary assumptions are critical in the calculation of net profit, i.e. the
Project is very sensitive to changes in MSW Garbage or Aggregate receipts / sale
prices. For example, the level of Net Profit After tax approximately doubles where
the price received for MSW Garbage is $45.00 per tonne.
The capital required to fund the Project is $20m, with the base model assuming
that 80% ($16m) is derived from investors, and the balance ($4m) obtained
through debt funding. This will support capital works in the order of $18m, and a
further $2m working capital.
The “Break-Even” point125 is reached where the amount received for MSW
Garbage is $34.60 per tonne (assuming 100% equity / investor) funding.
The Project will take approximately four years (from the commencement of the
commercialisation stage) to achieve annual profitability, although this could be
achieved up to 12 months earlier should the required Capital funding be wholly
obtained from investors rather than partially obtained with debt.
Sales Estimates - Major Assumptions
The primary assumptions in establishing sales levels are contained within
Schedules 1 (Primary Base Assumptions) and 2 (Major & Secondary Inputs &
Outputs) of Attachment 5 of this Report. This information is summarised hereunder:
SCHEDULE 1
PRIMARY BASE ASSUMPTIONS BASE MODEL
AggregateProduction 500.0 cubic metres per dayBulk density 0.70 tonnes per cubic metre= Production (available for sale) 350 tonnes per day
Building RubbleReceivals 102.0 tonnes per day= Production (available for sale) 100.0 tonnes per day
Production levels from Plant Completion date (post equipment testing)Estimated time to full capacity = 6 Months
Estimated capacity @ Month Cash Flow (Project) MonthCapacity is 10.00% 0 18 Mar-2000
Capacity is 25.00% 1 19 Apr-2000Capacity is 40.00% 2 20 May-2000Capacity is 55.00% 3 21 Jun-2000Capacity is 70.00% 4 22 Jul-2000Capacity is 85.00% 5 23 Aug-2000Capacity is 100.00% 6 24 Sep-2000
ClayClay: Dry Garbage ratio 100.00%= Required clay input 341.00 tonnes per day
125 The “Break-Even” point is defined as being Net Profit After Tax equalling $zero Year-In-Year-Out.
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SCHEDULE 2MAJOR INPUTS & OUTPUTS (MATERIAL BALANCE) - PRICES, & QUANTITIES REQUIRED
BASE MODELTonnes /day
Tonnes /week
Tonnes /month
Tonnes /Year
Cost / Priceper tonne ($)
tonne pertonne ofMSW
Days per period = 7.0 28.0 336.0INPUTS
WastesMunicipal Solid Waste (MSW) Garbage 503 3,521 14,084 169,008 $40.00 1.000Liquid waste (or water) 51 357 1,428 17,136 $0.00 0.101
Other Clay 341 2,387 9,548 114,576 $4.50 0.678
Lime (for flue gas scrubbing) 8 56 224 2,688 $208.00 0.016Scrubber Water 104 728 2,912 34,944 $0.00 0.207Quench Water 1,176 8,232 32,928 395,136 $0.00 2.338Natural Gas 8 56 224 2,688 $460.00 0.016Combustion Air 3,390 23,730 94,920 1,139,040 $0.00 6.740
Total Inputs 5,581 39,067 156,268 1,875,216 n/a 11.095
OUTPUTSProducts
Aggregate 350 2,450 9,800 117,600 $14.00 0.696Reclaimed metal 28 196 784 9,408 $57.50 0.056
WastesRejects (non-metal) 29 203 812 9,744 $5.00 0.058Scrubber Residues * 17 119 476 5,712 $0.00 0.034Flue Gas 5,157 36,099 144,396 1,732,752 $0.00 10.252
Total Outputs 5,581 39,067 156,268 1,875,216 n/a 11.095* For re-processing back through the Recycling Plant
SECONDARY INPUTS & OUTPUTS - PRICES, & QUANTITIES REQUIRED
Tonnes /day
Tonnes /week
Tonnes /month
Tonnes /Year
Price pertonne ($)
Days per period = 7.0 28.0 336.0
INPUTBuilding Rubble
Quantity Received 102 714 2,856 34,272 $20.00Losses 2.00% 2 14 57 685
OUTPUTBuilding Rubble
Production (Sale of Road Base) 100 700 2,800 33,600 $9.00
Notes on Primary Operating Costs
In addition to information shown on the above tables, primary operating costs
are shown at Schedule 8 (Primary Operating Costs / Quantities) of Attachment 5,
summarised as follows:
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SCHEDULE 8
PRIMARY OPERATING COSTS / QUANTITIES BASE MODEL
Description UnitFuel Oil
Quantity Required (minimum): 780.0 litres per hour of operation (using heat recovery) Quantity Required (maximum): 2,100.0 litres per hour of operation (without heat recovery)
Percentage of time operated: 5.00% without heat recoveryQuantity Required (average): 846.0 litres per hour of operationQuantity Required (average): 568,512.0 litres per month of operationCost: $262.89 per tonne= Cost: $0.2300 per litre (BP) - Shell is @ $0.30 per litre
GasNatural or LPG - maximum required: 90.0 Gj per hourLPG - Cost: $0.46 per KilogramLPG or Natural gas $0.23 per Litre (CIG or Elgas)Cost: $0.00 per Gj
Water (Fresh)Maximum per day required: 1,210.00 cubic metres per day= Equivalent to: 1,210,000 litres= Equivalent to: 266,200 gallons
Diesel (Fuel for Plant)Useage = 354.00 Kilo litres per annum= equivalent to 29,500.00 lites per monthCost = $0.6290 per litre
PowerAverage Running Requirement = 4,040.00 Kilowatts per hourPeak Running Requirement = 4,850.00 Kilowatts per hourInstalled Capacity Requirement = 5,700.00 Kilowatts per hour
Cost of Power = $0.0770 per Kilowatt hour (first 16 hrs)Cost of Power = $0.0310 per Kilowatt hour (next 8 hours)Cost of Power = $0.0617 per Kilowatt hour (average for 24 hr period)Cost of Power = $167,418 per month average requirement
ClayCost = $2.50 per tonneAverage delivery charge = $2.00 per tonne
Total Delivered Cost = $4.5000 per tonne
Fuel Consumption
Some factors such as fuel consumption will be considerably influenced by factors
such as the degree of heat recovery and the process flow of the gasses. For
instance the fuel oil required may vary by a factor of three times depending on
whether the heat is received from the gasses evolved from the waste. Fuel oil
including recycled oil can be used provided the temperature required for clay
hardening can be achieved. Otherwise LPG or natural gas will be necessary.
Water Utilisation
The amount of water used will vary depending on the moisture in the waste, the
clay properties, and the air pollution control system used. By far the largest
amount used is for scrubbing plus gas cooling.
Capital Investment Requirements
Capital Investment Requirements are summarised as follows:
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CAPITAL WORKS SUMMARY
See Schedule
INFRASTRUCTURE & COSTS $5,107,850 3
BUILDING (PREMISES) $4,858,350 4
SUNDRY PLANT & EQUIPMENT $1,289,590 5
PLANT OPERATING EQUIPMENT $6,788,650 6
TOTAL $18,044,440
Equity & Debt Ratio
Debt to Equity Ratios
Proposed Total Capital Funding = $20,000,000
Equity: 80.00%
Debt: 20.00%
EQUITY REQUIRED: $16,000,000
DEBT REQUIRED: $4,000,000
Profit & Loss / Cash Flow Statements
Refer Attachment 6 (Cash Flows), and Attachment 7 (Profit & Loss Summaries).
Balance Sheet Analysis
Refer Attachment 8
Break Even Analysis
Refer Attachment 9
SENSITIVITY ANALYSIS
A 10% sensitivity analysis126 on the "base Model" cash flows for each of the years
1, 2, and 3 has been completed (refer right hand column on the cash flows at
Attachment 6). These amounts show in broad terms the Project’s overall sensitivity
to cost/price squeeze.
In addition, sensitivities to various prices, costs, and production / input levels have
been conducted, with the results shown graphically below:
126 This analysis assumes 10% lower income, and 10% higher variable costs (i.e. loan repayments, etc.
are assumed static)
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300 400 500 600 700
($1)
$0
$1
$2
Base Model
Millions
Cubic metres per day
NPA
T - $ per annum (YIYO)
PETEMIC TECHNOLOGY PTY LTDSENSITIVITY ANALYSIS
Production of Aggregate
60.00 80.00 100.00 120.00 140.00
($1)
$0
$1
$2
Base Model
Millions
Production per day
NPA
T - $ per annum (YIYO)
PETEMIC TECHNOLOGY PTY LTDSENSITIVITY ANALYSIS
Building Rubble Production
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$25.00 $30.00 $35.00 $40.00 $45.00 $50.00 $55.00
($1)
$0
$1
$2
Base Model
Millions
Price per tonne ($)
NPA
T - $ per annum (YIYO)
PETEMIC TECHNOLOGY PTY LTDSENSITIVITY ANALYSIS
MSW Garbage - Price Received
$3.00 $4.00 $5.00 $6.00
($1)
$0
$1
$2
Base Model
Millions
Cost per tonne ($) delivered
NPA
T - $ per annum (YIYO)
PETEMIC TECHNOLOGY PTY LTDSENSITIVITY ANALYSIS
Cost of Clay
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$140 $160 $180 $200 $220 $240 $260 $280
($1)
$0
$1
$2
Base Model
Millions
Cost per tonne
NPA
T - $ per annum (YIYO)
PETEMIC TECHNOLOGY PTY LTDSENSITIVITY ANALYSIS
Cost of Lime (for flue gas scrubbing)
$0.30 $0.40 $0.50 $0.60 $0.70
($1)
$0
$1
$2
Base Model
Millions
Cost per Kilogram ($)
NPA
T - $ per annum (YIYO)
PETEMIC TECHNOLOGY PTY LTDSENSITIVITY ANALYSIS
Cost of Gas
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$10.00 $12.00 $14.00 $16.00 $18.00 $20.00
($1)
$0
$1
$2
Base Model
Millions
Price per tonne ($)
NPA
T - $ per annum (YIYO)
PETEMIC TECHNOLOGY PTY LTDSENSITIVITY ANALYSIS
Price Received for Aggregate
$40.00 $50.00 $60.00 $70.00 $80.00
($1)
$0
$1
$2
Base Model
Millions
Price per tonne
NPA
T - $ per annum (YIYO)
PETEMIC TECHNOLOGY PTY LTDSENSITIVITY ANALYSIS
Price Received for Reclaimed Metal
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25 30 35 40 45 50
($1)
$0
$1
$2
Base Model
Millions
Average Life of Asset (Years)
NPA
T - $ per annum (YIYO)
PETEMIC TECHNOLOGY PTY LTDSENSITIVITY ANALYSIS
Allowance for Depreciation - YIYO
$150.00 $200.00 $250.00 $300.00 $350.00
($1)
$0
$1
$2
Base Model
Millions
Cost per Tonne ($)
NPA
T - $ per annum (YIYO)
PETEMIC TECHNOLOGY PTY LTDSENSITIVITY ANALYSIS
Cost of Fuel (Furnace) Oil
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600 800 1,000 1,200
($1)
$0
$1
$2
Base Model
Millions
Average Quantity (litres per hour of operation)
NPA
T - $ per annum (YIYO)
PETEMIC TECHNOLOGY PTY LTDSENSITIVITY ANALYSIS
Quantity of Fuel (Furnace) Oil Required
250 300 350 400 450 500
($1)
$0
$1
$2
Base Model
Millions
Kilo litres per annum
NPA
T - $ per annum (YIYO)
PETEMIC TECHNOLOGY PTY LTDSENSITIVITY ANALYSIS
Useage of Diesel
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$0.40 $0.50 $0.60 $0.70 $0.80 $0.90
($1)
$0
$1
$2
Base Model
Millions
Cost per Litre ($)
NPA
T - $ per annum (YIYO)
PETEMIC TECHNOLOGY PTY LTDSENSITIVITY ANALYSIS
Cost of Diesel (Fuel for Plant)
2,500 3,000 3,500 4,000 4,500 5,000 5,500
($1)
$0
$1
$2
Base Model
Millions
Average Running Requirement (Kilowatts per hour)
NPA
T - $ per annum (YIYO)
PETEMIC TECHNOLOGY PTY LTDSENSITIVITY ANALYSIS
Power Useage
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$0.04 $0.05 $0.06 $0.07 $0.08 $0.09
($1)
$0
$1
$2
Base Model
Millions
Power Cost per Kilowatt Hour (average 24 hr.)
NPA
T - $ per annum (YIYO)
PETEMIC TECHNOLOGY PTY LTDSENSITIVITY ANALYSIS
Cost of Power
TRADE TARIFFS, CUSTOMS & EXCISE
Tariffs Applying to Building Aggregate
Building aggregate is referred to as Tariff Item No: 2517.20.00. The following
summaries provide an insight into tariff protection applying to selected overseas
countries. (It is assumed that the most immediate opportunities exist in Asia)127:
Japan
No import duty. Consumption tax of 3% based on C.I.F. (Cost, Insurance, Freight)
applies.
The Philippines
10% tariff applies based on C.I.F. 10% Value Added Tax also applies. A pre-
shipment inspection is required if goods are valued at over US$500. (If this applies,
call SGS on 262 7200)
Indonesia
Import duty of 15% based on C.I.F. applies. Also Value Added Tax of 10%. A pre-
shipment inspection is required if goods are valued at over US$5000. (If this
applies call Surveyor Indonesia Australia on 900 411)
127 Please refer to the Consultant for Tariffs that may apply to other countries not listed
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Customs & Excise128
The Federal Government imposes excise duties on a narrow range of products.
The principal items affected are oil, petroleum products, normal strength beer,
spirits, and tobacco.
Customs tariffs are levied on a wide range of imported goods. These tariffs
provide protection for Australian manufacturers and producers. Tariff levels are
altered only after a review of the industry concerned has been carried out by the
Industries Assistance Commission (IAC). The IAC considers submissions from those
likely to be affected by a change in tariff.
Where there is no equivalent Australian manufactured product or equivalent
goods sold in a separate market, it may be possible to obtain a tariff concession
order, reducing duty on the product imported to minimum levels.
In the case of Petemic and their technology, some tariff concessions may be
available, offsetting the costs of the importation of some of the processing equipment and apparatus (i.e. capital set-up costs). However, it is not possible to be too definitive without formal application, and accordingly the commercial viability tests conducted in this Report assumes that no tariff concessions have been made available to the Company.
Where goods exported from Australia contain imported materials, a refund of
duty paid on importation may be available to the exporter under a “duty
drawback” system. An extension of this is known as the By-Law for Export, which is
designed for regular users of the Drawback System. It allows for the goods to be
imported without payment of duty and sales tax, providing they are imported for
industrial processing and are subsequently exported.
It is assumed, for the purpose of viability analysis and testing, that all product
inputs and outputs required / generated by the Petemic process will be acquired / sold to local (domestic) markets.
Further, where goods have been sold to Australia at an “export price” less than
their “normal value” (which is determined as being the domestic price in the
country of origin) Anti-Dumping legislation provides for the imposition of a penal
duty in addition to that which would normally be payable. Similarly, a
comparable remedy, known as countervailing duty, applies where there has
been a subsidy, bounty, or other assistance paid in the country of export, which
has caused injury of threatened to injure or hinder the establishment of an
Australian industry.
As the outputs of the Petemic process are not subject to competition with
equivalent imported product, it has been assumed that the Federal
Government’s anti-dumping legislation will not apply.
PATENTS, COPYRIGHT AND INDUSTRIAL DESIGNS129
128 Acknowledgment is given to primary source for information in this sub-section to: Coopers & Lybrand,
Tax Facts and Figures 1988-89, Coopers & Lybrand Aust, 1988, Australia.
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The matter of Patents and liscencing of the Petemic technology will be
addressed in the next section of this Report.
However, it should be noted that, in relation to impact upon the cash flow, any
expenditure incurred by a taxpayer in obtaining or seeking the grant of a patent,
registration of a copyright or design, or extension of the term of a patent or
design, is deductible to the extent that the expenditure was incurred.
The deduction may be allowable even though the taxpayer was unsuccessful in
obtaining the grant or extension, providing that the expenditure was incurred for
the purposes of producing assessable income.
Capital expenditure incurred on the development or purchase of such a patent,
registered design or copyright, or for the purchase of a licence to use such an
asset, is deductible over the effective life of the right. The deduction commences
from the first year in which the right is used for the purpose of producing
assessable income.
This Analysis assumes that all deductibility of patents and liscencing of the
technology has been taken account of in earlier stages of the Project, i.e. during the bench scale testing and pilot plant stages. It is, however, acknowledged that
some benefit of the patent (and subsequent deductibility) will be applicable
over the Commercialisation (and later) stage(s), however in the context of the
overall Project this is not anticipated to be significant in terms of impact on tax
payable.
TRADE MARK REGISTRATION130
The matter of Patents and liscencing of the Petemic technology will also be more
fully addressed in the next section of this Report. This section deals with the
marketing and commercial aspects of trade mark registration.
Trade marks distinguish goods or services of a trader from those of other traders.
They can be in the form of a word, picture or symbol, or a combination of these.
In the case of Petemic Technology Pty Ltd, a distinguishing trademark symbol will
serve to differentiate the Company and its products - especially in the context of its “recycycling” involvement, and the favourable image that this creates.
Registration of trade marks is obviously not compulsory, but has several benefits.
These benefits include:
• Protection of investments made in products and their promotion
• Legal rights to exclusively control and use the trade mark for the goods or
services for which it was registered
129 Acknowledgment is given to primary source for information in this sub-section to: Australian
Government Publishing Service, Taxation, AGPS Press, 1991, Canberra
130 Primary source for this information is: AIPO Trademark Leaflets 1, 2, 3 & 4, Printed by AIPO Print Room,
March 1995.
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• Ownership rights additional to common law rights
• Protection of trade mark from misleading use in the market place
• Australia wide registration, which can be useful when seeking registration
overseas.
Only distinctive marks, or marks that are capable of becoming distinctive, can be
registered. These could include; names represented in a distinctive manner, an
invented word, or a distinctive mark.
Trade mark registration differs from business name registration. A business name is
a name, style, title or designation under which a business is conducted, whereas
a trade mark is used to identify and distinguish goods or services of a business or
trader.
To apply for a trade mark an application form must be filled out and lodged.
Application forms are available from the Trade Marks Office. Applications are
examined in order of lodgment, and it is usually several months before the
application is processed. Applications are examined to determine whether they
meet the requirements of the Trade Marks Act. Results of the examination are
sent to the applicant.
If the application is in order a notice of acceptance is sent to the applicant. An
advertisement of acceptance is placed in the Official Journal of Trade Marks,
and there is a three month period where any person may give notice of
opposition to the registration. If there is no opposition and the fee has been paid,
the trade mark will be registered and a certificate of registration will be sent out.
Registration lasts for seven years initially. After that it can be renewed for 14 year
periods.
For further information contact the Trade Marks Office:
7th Floor
280 Adelaide St
Qld 4000
Ph: (07) 864 8277
ASSISTANCE MEASURES FOR MANUAFCTURING, EXPORTING &
RESEARCH & DEVELOPMENT APPLICABLE TO THE PROJECT
The Industry Research & Development Board
Specific elements of the Industry Innovation Program - 150 per cent Tax
Concession, Competitive Grants and Concessional Loans131 - are administered
by the Industry Research and Development Board132.
131 See next sub-section for details on these programs
132 The Head Office of AusIndustry / Industry Research and Development Board is 51 Allara Street,
Canberra City ACT 2601 (PH: 06-2762307, FAX: 06-2761122)
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The Board’s role is to help companies successfully enter local and export markets
by encouraging:
• more and better use of research and development;
• successful commercialisation of new technologies; and
• greater collaboration and networking between firms and research
institutions.
The Board has a number of committees which consider expressions of interest
and applications on eligibility and merit. AusIndustry advise that “strict
precautions are taken by the IR&D Board and its committees to avoid conflicts of
interest on information provided by applicants”.
Department of Trade Industry & Regional Development (DITRD - formerly
DITAC)133
DITAC may have funds available with / through the TCFTA - the latter whom may
have funding money134 available for value added processed products. The
Discretionary Grants Scheme also provides grants for developing internationally
traded goods, systems or services, specifically targeted for Companies unable to
receive adequate benefit from the 150% research and development (R&D) tax
concession but seek R&D assistance for projects that would otherwise not
proceed. It is also specifically targeted to small start up companies wanting to
enter international markets and to industries involved in industry restructuring.
Projects can be:
� assisted for up to three years
� maximum grant is 50% of eligible project costs exceeding $50,000 (for the
purpose of salaries, outside contracted work. and purchase of equipment
used directly in the R&D and overheads).
Generic Technology Scheme
Grants under this scheme are available for a maximum of three years covering
up to 90% of total eligible costs, for strategic research and development in
technologies which have widespread application in industry. Projects must have
at least one commercial partner and one public sector research body such as a
University or the CSIRO. The Company would therefore need to source a public
sector research body interested in, for example, waste manufacturing
technology and / or other manufacturing processes.
Advance Manufacturing Technology Development Program (AMTDP)
Grant funds of up to 50% of project expenditure in excess of $500,000 may
become available for an Advance Manufacturing Technology Development
Program (AMTDP). This scheme is designed to encourage the development,
133 Refer Ms Alex Appleman and Mr Shane Campbell of DITAC (Ph 07-2315111)
134 There ore many highly desirable features of the Project which enhance prospects for a successful
result in obtaining funds from this source. Reference should be made to Mr Shane Campbell 07-
2315111
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production and use of AMT in Australian Industry. Assistance is provided for the
development and use of:
� advanced materials and related process technology
� advanced manufacturing techniques or services
� advanced computer controlled or microprocessor -based equipment used
in the design. testing or handling of a product.
Whilst only joint applications from an applicant company and a collaborating
partner are considered, the Company, if it becomes a partly Network Venture
capital resourced organisation, may well qualify for assistance135 ( but please
bear in mind the qualifying size of the Project as indicated above).
Federal Department of Industry, Science & Technology
Export Access
Financial assistance is available for those enterprises requiring training or practical
assistance for the development of offshore activities. Participation in Export
Access assists with:
• Identification of opportunities (evaluation of Company's products / services
and advice on financial and management requirements).
• Training (assistance with strategic planning and assisting with the
preparation of a Business Plan).
• Overseas market visits (up to 10 days subsidised accommodation and living
costs per company in the target market)
• Post Market Evaluation
This program could be utilised for the purpose of proceeding to the development
of a Marketing or Business Plan.
Competitive Grants for Research and Development136
Competitive Grants for Research and Development are intended to support
projects involving R&D or product development (including development of
prototypes) or trial or demonstration and related market research.
The maximum grants if 50 per cent of project costs.
Grants are provided, on a competitive basis for:
• market driven R&D in dynamic firms needing assistance but unable to gain
full financial benefit from the 150 per cent Tax Concession for R&D;
135 Contact Mr Shane Campbell on 07-231511 or the IR&D Hotline 008-026121
136 Contact is the Queensland office for AusIndustry which is:
12th Floor, AGL House, 60 Edward Street, Brisbane Qld. 4000, Phone 07-2315111 Fax: 07-2290017.
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• collaborative R&D activities, that are high risk but could provide extensive
benefit to Australia;
• trial and demonstration activities between technology developers and
potential customers; and
• collaborative R&D activity between industry and research institutions.
Concessional Loans for Commercilaisation of Technological Innovation137
Concessional loans support small firms in the early commercialisation of
technological innovation of goods, systems or services.
The maximum loan is 50 per cent of project costs.
Commercialisation activities supported by the loan are limited to the following
activities, which may include related market research:
• product/process design;
• trial production runs including tooling up costs;
• regulations and standards compliance;
• protection of core intellectual property;
• trial and demonstration activities; and
• product documentation.
Loans will be made for a maximum period of six years from the date of the loan
agreement, with repayment commencing after 42 months.
Interest will begin to accrue three years from the date of the loan agreement. At
the time of writing, interest was being calculated daily at 40 per cent of the
Commonwealth Bank Loan Reference Rate.
TAXATION IMPLICATIONS FOR RESEARCH & DEVELOPMENT
All income tax concession is available to a company for expenditure incurred on
qualifying research and development in Australia. The concession is in the form of
a deduction against assessable income. As of 30 June 1995 the allowable
deduction is 100 per cent of qualifying research development expenditure138.
The following major points relate to the taxation implications for Research and
Development, and have been incorporated into the financial analysis contained
in this Report:
137 Contact is the Queensland office for AusIndustry which is:
12th Floor, AGL House, 60 Edward Street, Brisbane Qld. 4000, Phone 07-2315111 Fax: 07-2290017.
138 Source: Australian Government Publishing Service, Taxation, AGPS Press, 1991, Canberra
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• The 150% tax concession (against income earned) for R&D is still available.
The definition of R&D expenditure basically applies up to but NOT
INCLUDING Marketing stage, including conducting Market research. That is,
R&D is only claimable until the Marketing stage unless the product is being in some way modified or further improved. The concession is subject to, inter alia:
1. Companies which incur expenditure on research and development
may claim a 150% deduction in respect of wages, salaries, other labour
costs and expenditure exclusively for R&D activities.
2. Research and development activities cover systematic, investigative,
or experimental activities which involve innovation and technical risk,
carried on for the purpose of:
✎ acquiring new knowledge (whether or not it will have special
practical application).
✎ Creating new or improved materials, products, devices,
processes or services (i.e. experimental or developmental)
✎ Activities directly related to R&D activities including industrial
design, engineering design, production engineering, operations
research, mathematical modelling and analysis, psychological
research; design, construction and operation of prototypes
where the primary objective is technical testing or to make
technical improvements; and finally feedback R&D directed at
problem solving beyond the R&D stage, e.g. technical problems
arising during initial production runs.
3. To be eligible for R & D concessions a company must be registered with
the Australian Industrial Research and Development Incentives Board,
or the Industry Research and Development Board.
Certain other benefits also apply in particular situations.
• In many situations it will be possible to "claw back" expenditure made - and
not claimed - for the previous four years, and sometimes beyond.
• A good contact enabling (at a cost) a "ruling" to be obtained for relevant
expenditure is:
Mr. Paul Scammell
Assistant Director, Tax Concessions
Dept. Industry Technology & Commerce
GPO Box 2704 Canberra ACT 2601
Phone: 06-2761000
Fax: 06-2761122
• Generally speaking, expenditure of $50,000 and above (meeting the
criteria) will be an acceptable minimum. Expenditure below this level may
be subject to a "sliding scale".
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• Company management should maintain accurate records for the purpose
of obtaining R & D expenditure claims as detailed.
• The Company should also be aware that they may have the opportunity to
directly employ a graduate through the National Teaching Co. scheme
specifically for the research and development of new products.
SALE OF THE NEUTRALYSIS WASTE PROCESSING PLANT
Indicative costings for used equipment may be gained from recent experience -
the sale of a Pilot Neutralysis Waste Processing Plant in early 1995.
This Plant, sold to an undisclosed buyer, was reportedly sold for an amount in the
region of $300,000, with the auctioneers originally anticipating sale value of at
least $250,000 “piecemeal”139. Several of the major plant items are similar to that
contemplated for the Petemic process. The Newspaper Clipping below outlines
the type of plant and equipment sold:
Clipping 2 - The Courier Mail, 31 March, 1995
According to auctioneer Scott Bendall, the above Pilot Plant was said to have
been originally constructed for a cost of approximately A$6.0m.
139 These amounts were provided by MGS Turners Auctions (c/- Mr Scott Bendall).
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Whilst the above costings are indicative only at best, it nevertheless demonstrates
the significant savings that might be gained from purchasing used plant and
equipment.
This Report, however, assumes that all equipment will be purchased new.
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LICENSING OF THE TECHNOLOGY
A full review of the licensing aspects of the Petemic Technology is provided in the
Attachment: “Licensing”, as prepared by Attorneys-at-Law Collier, Shannon, Rill &
Scott.
The following is an excerpt from this document, taken from the Executive
Summary:
Introduction
This section of the pre-feasibility study for Petemic Technology Pty Ltd (“Petemic)
focuses on the issue of licensing the technology which forms the basis of
Petemic’s waste recycling process and apparatus (“the Petemic Technology” or
“the Technology”). The remainder of this introduction provides a summary of the
methodology and findings:
Prospects for Licensing:
In this section, the prospects for licensing the Petemic Technology, from both a
legal and commercial perspective, are evaluated. A brief summary is provided of
the possible intellectual property rights subsisting in the Petemic Technology.
On the assumption that Petemic will obtain patent protection in connection with
its Technology, it is concluded that the Petemic Technology embodies suitable intellectual property rights which can be the subject of a technology transfer license.
Also provided is a summary of contacts with various clients and others in the
environmental engineering industry to obtain an informal and preliminary
indication as to the prospects for licensing the Petemic Technology. Based on
these contacts it appears that the Petemic Technology is potentially “licensable”,
provided it can satisfy the relevant regulatory requirements and become a viable
alternative to competing processes and end products. However, the recycling process developed by Petemic would have to compete with the alternative of relatively inexpensive landfill disposal and strong existing markets for recyclable products. As such, several contacts concluded that the demand for the Petemic Technology is “uncertain”.
Protecting The Petemic Technology
In this section the intellectual property protection which may be available to
Petemic is discussed, with particular emphasis on patent and trademark
registration.
The need to protect the Petemic Technology through a carefully negotiated and
properly drafted license agreement is emphasised. Methods for formulating a
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commercially viable royalty rate are suggested. Also provided is a brief analysis of
Petemic’s potential areas of exposure.
Licensing - Evaluation Against Alternatives:
An analysis of the potential advantages and disadvantages of licensing the
Petemic Technology is provided here, particularly as compared with the pros and
cons of Petemic establishing a recycling facility either on its own or as part of a
joint venture.
Subject to the qualifications set out previously, it is concluded that licensing presents a viable “lower risk” option when compared with the establishment of a recycling facility either independently or as part of a joint venture arrangement. It is suggested that a carefully devised licensing strategy is worthy of further consideration.
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DISCLAIMER & QUALIFICATION BY CONSULTANT
It should be noted that much of the data and material presented in this Final
Report for the Feasibility Study, including financial data, has been acquired from
a number of sources, including Petemic Technology Pty Ltd management. This
information has been made available to the consultant for analysis. Our report is
prepared on the basis that full disclosure of all information and facts which may
affect our report and / or advice has been made, and therefore the Consultant
cannot accept any liability or responsibility whatsoever for the report and / or
any advice contained therein unless such full disclosure has been made.
In accordance with the normal practice of Gary O Garner & Associates, I confirm
that this report is confidential to, and solely for use of, the Directors of Petemic
Technology Pty Ltd, subject to its provision to the Department of Business Industry
& Regional Development (as instructed). No responsibility is accepted to any
third party who relies on the whole or any part of our report.
GARY OWEN GARNER B.Bus., A.V.L.E.(Val.), Assoc.Dip.Val., P.Ag., Dip.Ag., A.I.M.M., M.A.A.C. Registered Valuer (Qld) No. 1959
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APPENDICES
Appendix A - Job Descriptions
The following examples140 demonstrate the general format for each position in
the organisation.
JOB TITLE:
GENERAL MANAGER
JOB PURPOSE: ACHIEVES COMPANY OBJECTIVES by
developing business opportunities; meeting sales quotas; managing staff;
providing leadership; implementing Board directives.
ESSENTIAL JOB RESULTS:
% of
Time
% of
Time
1. PROVIDES LEADERSHIP & VISION
by
communicating Company objectives
and assisting the Board in design of
Company direction.
6. MEETS SALES OBJECTIVES
by
establishing sales quotas; monitoring
demographic sales results; applying
marketing research; defining strategies.
2. ENSURES COMPLIANCE
GOVERNMENT REGULATIONS
by
maintaining environmental monitoring
files; coordinating efforts with all
Company departments.
7. MAINTAINS STAFF JOB RESULTS
by
counselling and disciplining employees;
planning, monitoring, and appraising job
results
3. MAINTAINS STAFF
by
recruiting, selecting, orienting, and
training employees.
8. MAINTAINS PROFESSIONAL AND
TECHNICAL KNOWLEDGE
by
attending educational workshops;
reviewing professional networks;
participating in professional societies.
4. DEVELOPS TRUST AND OTHER
“NONCORE” FEE INCOME BUSINESS
by
publicizing the Company’s service
capabilities.
9. ACHIEVES FINANCIAL OBJECTIVES
by
ensuring preparation of the annual
budget; overview of scheduling
expenditures; analyzing variances;
initiating corrective actions.
5. GENERATES BUSINESS
by
meeting potential customers in the
business (private and public sector)
communities.
10. CONTRIBUTES TO TEAM EFFORT
by
accomplishing related results as
needed.
140 Job descriptions have been, in the main, adapted from source material: Plachy RJ, Plachy SJ,
Results-Orientated Job Descriptions, Amacon (1993)
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JOB TITLE:
ADMINISTRATION MANAGER
JOB PURPOSE: PROVIDES FINANCIAL INFORMATION TO MANAGEMENT
by
researching and analyzing accounting data; preparing reports;
Implementing administrative systems, procedures, and policies, and
monitoring administrative projects.
ESSENTIAL JOB RESULTS:
% of
Time
% of
Time
1. PREPARES ASSET, LIABILITY, AND
CAPITAL ACCOUNT ENTRIES
by
compiling and analyzing account
information.
12. MAINTAINS FINANCIAL SECURITY
by
following internal controls.
2. DOCUMENTS FINANCIAL
TRANSACTIONS
by
entering account information
13. PREPARES PAYMENTS
by
verifying documentation, and
requesting disbursements.
3. RECOMMENDS FINANCIAL ACTIONS
by
analyzing account options.
14. ANSWERS ACCOUNT PROCEDURE
QUESTIONS
by
researching and interpreting account
policy and regulations.
4. SUMMARIZES CURRENT FINANCIAL
STATUS
by
collecting information; preparing
balance sheet, profit and loss
statement, and other reports.
15. COMPLIES WITH FEDERAL, STATE,
AND LOCAL FINANCIAL LEGAL
REQUIREMENTS
by
studying existing and new legislation
enforcing adherence to requirements,
and advising management on needed
actions.
5. SUBSTANTIATES FINANCIAL
TRANSACTIONS
by
auditing documents
16. PREPARES SPECIAL FINANCIAL
REPORTS
by
collecting analyzing, and summarizing
account information and trends.
6. MAINTAINS ACCOUNTING
CONTROLS
by
preparing and recommending policies
and procedures.
17. MAINTAINS CUSTOMER
CONFIDENCE AND PROTECTS
OPERATIONS
by
keeping financial information
confidential.
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JOB TITLE:
ADMINISTRATION MANAGER (continued) JOB PURPOSE: PROVIDES FINANCIAL INFORMATION TO MANAGEMENT
by
researching and analyzing accounting data; preparing reports; Implementing administrative
systems, procedures, and policies, and monitoring administrative projects.
ESSENTIAL JOB RESULTS:
7. MAINTAINS WORK FLOW
by
studying methods; implementing cost
reductions; and developing reporting
procedures
18. MAINTAINS PROFESSIONAL AND
TECHNICAL KNOWLEDGE
by
attending educational workshops;
reviewing professional publications;
establishing personal networks;
participating in professional societies.
8. RECONCILES FINANCIAL
DISCREPANCIES
by
collecting and analyzing account
information.
19. DEVELOPS ADMINISTRATIVE STAFF
by
providing information, educational
opportunities, and experiential growth
opportunities
9. SECURES FINANCIAL INFORMATION
by
completing data base backups.
20. MAINTAINS SUPPLIES INVENTORY
by
checking stock to determine inventory
level; anticipating needed supplies;
placing and expediting orders for
supplies; verifying receipt of supplies.
10. COMPLETES OPERATIONAL
REQUIREMENTS
by
scheduling and assigning administrative
projects; expediting work results.
21. CONTRIBUTES TO TEAM EFFORT
by
accomplishing related results as
needed
11. CREATES AND REVISES SYSTEMS
AND PROCEDURES
by analyzing operating practices, record
keeping systems, forms control, office
layout, and budgetary and personnel
requirements; implementing changes.
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JOB TITLE:
SECRETARY
JOB PURPOSE: ENHANCES (COMPANY) EFFECTIVENESS
by
providing information-management support.
ESSENTIAL JOB RESULTS;
% of
Time
% of
Time
1. PRODUCES INFORMATION
by
transcribing, formatting inputting,
editing, retrieving, copying, and
transmitting text, data, and graphics.
7. MAINTAINS OFFICE SUPPLIES
INVENTORY
by
checking stock to determine inventory
level; anticipating needed supplies;
placing expediting orders for supplies;
verifying receipt of supplies.
2. ORGANIZES WORK
by
reading and routing correspondence;
collecting information; initiating
telecommunications.
8. KEEPS EQUIPMENT OPERATIONAL
by
following manufacturer's instructions
and established procedures.
3. MAINTAINS COMPANY'S SCHEDULE
by
maintaining calendars for Company
personnel; arranging meetings,
conferences, teleconferences, and
travel.
9. SECURES INFORMATION
by
completing data base backups.
4. COMPLETES REQUESTS
by
greeting customers, in person or on the
telephone; answering or referring
inquiries.
10. PROVIDES HISTORICAL
REFERENCE
by
utilizing filing and retrieval systems.
5. MAINTAINS CUSTOMER
CONFIDENCE AND PROTECTS
OPERATIONS
by
keeping information confidential.
11. MAINTAINS TECHNICAL
KNOWLEDGE
by
attending educational workshops;
reading secretarial publications.
6. PREPARES REPORTS
by
collecting information.
12. CONTRIBUTES TO TEAM EFFORT
by
accomplishing related results as
needed.
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JOB TITLE:
PRODUCTION MANAGER
JOB PURPOSE: PRODUCES PRODUCTS
by
Supervising staff and operations; creating new designs and modifications;
establishing and enforcing quality standards; testing materials and product.
ESSENTIAL JOB RESULTS:
% of
Time
% of
Time
1. PLANS PROJECTS
by
studying customer requirements,
market demand, and competitors'
products; identifying and analyzing
trends in technology; conferring and
collaborating with other members of
management.
9. MAINTAINS PRODUCTION STAFF
JOB RESULTS
by
coaching, counselling, and disciplining
employees; planning, monitoring, and
appraising job results.
2. DETERMINES FEASIBILITY OF
PROJECT
by
identifying and forecasting costs and
requirements.
10. ACHIEVES FINANCIAL OBJECTIVES
by
preparing the production budget;
scheduling expenditures; analyzing
variances; initiating corrective actions.
3. COMPLETES PROJECTS
by
directing design and modification
activities.
11. COMPLIES WITH FEDERAL, STATE,
AND LOCAL LEGAL REQUIREMENTS
by
studying existing and new legislation;
anticipating future legislation; enforcing
adherence to requirements; advising
management on needed actions.
4. MAINTAINS PROFESSIONAL AND
TECHNICAL KNOWLEDGE
by
attending educational workshops;
reviewing professional publications;
establishing personal networks;
participating in professional societies
12. MAINTAINS PRODUCTION
OPERATIONS
by
initiating, coordinating, and enforcing
project, operational, and personnel
policies and procedures.
5. COMPLETES PRODUCTION
PROJECTS
by
scheduling and assigning employees;
following up on work results.
13. MAINTAINS PRODUCTION DATA
BASE
by
developing information requirements;
designing an information system.
6. MAINTAINS PRODUCTION STAFF
by
recruiting, selecting, orienting, and
training employees.
14. CONTRIBUTES TO TEAM EFFORT
by
accomplishing related results as
needed.
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JOB TITLE:
PRODUCTION MANAGER (continued) JOB PURPOSE: PRODUCES PRODUCTS
by
Supervising staff and operations; creating new designs and modifications; establishing and
enforcing quality standards; testing materials and product.
ESSENTIAL JOB RESULTS:
7. MAINTAINS PRODUCT QUALITY
by
enforcing quality assurance policies and
procedures and government
requirements; collaborating with other
members of management to develop
new product and engineering designs
and manufacturing and training
methods.
15. PREPARES PRODUCT AND
PROCESS QUALITY REPORTS
by
collecting, analyzing, and summarizing
information and trends.
8. COMPLETES QUALITY ASSURANCE
OPERATIONAL REQUIREMENTS
by
scheduling and assigning employees;
following up on work results.
16. ESTABLISHES STANDARDS FOR
THE DISPOSITION OF FINISHED
PRODUCT
by
devising evaluation tests, methods, and
procedures.
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JOB TITLE:
WEIGH BRIDGE OPERATOR & SECURITY
JOB PURPOSE: OPERATES WEIGHBRIDGE AND MAINTAINS SECURITY
by
operating weighbridge equipment; allowing entry / departure of authorised
vehicles and personnel.
ESSENTIAL JOB RESULTS:
% of
Time
% of
Time
1. DETERMINES SEQUENCE OF
OPERATIONS
by
studying specifications, and work
orders.
6. ENSURES OPERATION OF
EQUIPMENT
by
completing preventive maintenance
requirements; following manufacturer's
instructions; troubleshooting
malfunctions; calling for repairs.
2. PREPARES MACHINE FOR
WEIGHING
by
positioning and securing equipment.
7. MAINTAINS SECURITY &
CONTINUITY AMONG WORK TEAMS
by
documenting and communicating
actions, irregularities, and continuing
needs.
3. REGULATES OPERATION
by
setting and adjusting controls.
8. DOCUMENTS ACTIONS
by
completing weigbridge, security and
quality logs.
4. MAINTAINS SPECIFICATIONS
by
observing operations; detecting
malfunctions; inspecting parts;
controls; replacing dies.
9. CONTRIBUTES TO TEAM EFFORT
by
accomplishing related results as
needed.
5. RESOLVES WEIGHBRIDGE
PROBLEMS
by
altering process to meet specifications;
notifying supervisor to obtain additional
resources.
10. MAINTAINS SECURITY
by
ensuring only authorised entry and
departure of people and vehicles
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JOB TITLE:
LOADER OPERATOR
JOB PURPOSE: TRANSPORTS AND MANOUEVRES PRODUCT OR MATERIAL
by
operating a Loader. ESSENTIAL JOB RESULTS:
% of
Time
% of
Time
1. DETERMINES CONDITION OF
VEHICLE
by
inspecting vehicle before and after use;
logging inspection; reporting
requirements.
5. MAINTAINS SAFE VEHICLE AND
CONDITIONS AND PROTECTS LOAD
by
complying with organization policies
and procedures and regulations.
2. ENSURES CORRECT LOADING OF
VEHICLE
by
loading product or material; directing
material handlers.
6. CONSERVES RESOURCES
by
using equipment and supplies as
needed to accomplish job results.
3. DELIVERS & MANOUEVRES
PRODUCT OR MATERIAL TO
DESTINATION
by
loading product or material; directing
material handlers.
7. MAINTAINS RECORDS
by
completing driver log; filing documents.
4. ENSURES OPERATION OF
EQUIPMENT
by
completing preventive maintenance
requirements; following manufacturer's
instructions; troubleshooting
malfunctions; calling for repairs;
maintaining equipment supplies;
evaluating new equipment and
techniques.
8. CONTRIBUTES TO TEAM EFFORT
by
accomplishing related results as
needed.
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JOB TITLE:
LOADER, PULVERSIER & EXTRUDER OPERATOR
JOB PURPOSE: FORMS PRODUCT and TRANSPORTS AND MANOUEVRES PRODUCT OR
MATERIAL
by
operating pulversiser and extruding equipment; operating Loader ESSENTIAL JOB RESULTS:
% of
Time
% of
Time
1. DETERMINES SEQUENCE OF
OPERATIONS
by
studying blueprints, specifications, and
work orders.
9. MAINTAINS STOCK INVENTORY
by
checking stock to determine amount
available; anticipating needed stock;
placing and expediting orders for stock;
verifying receipt of stock.
2. PREPARES PULVERISER AND
EXTRUDING MACHINES FOR
PRODUCTION
by
positioning and securing stops, guides,
and other equipment.
10. MAINTAINS CONTINUITY AMONG
WORK TEAMS
by
documenting and communicating
actions, irregularities, and continuing
needs.
3. REGULATES MACHINING
by
setting and adjusting controls.
11. DOCUMENTS ACTIONS
by
completing production and quality logs.
4. MAINTAINS SPECIFICATIONS
by
observing operations; detecting
malfunctions; inspecting parts; controls;
replacing “consumables”.
12. MAINTAINS SAFE VEHICLE AND
CONDITIONS AND PROTECTS LOAD
by
complying with organization policies
and procedures and regulations.
5. RESOLVES PRODUCTION
PROBLEMS
by
altering process to meet specifications;
notifying supervisor to obtain additional
resources.
13. CONSERVES RESOURCES
by
using equipment and supplies as
needed to accomplish job results.
6. DETERMINES CONDITION OF
LOADER VEHICLE
by
inspecting vehicle before and after use;
logging inspection; reporting
requirements.
14. MAINTAINS RECORDS
by
completing driver log; filing documents.
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JOB TITLE:
LOADER, PULVERSIER & EXTRUDER OPERATOR (continued)
JOB PURPOSE: FORMS PRODUCT and TRANSPORTS AND MANOUEVRES PRODUCT OR MATERIAL
by
operating pulversiser and extruding equipment; operating Loader ESSENTIAL JOB RESULTS:
7. ENSURES CORRECT LOADING OF
LOADER VEHICLE
by
loading product or material; directing
material handlers.
15. ENSURES OPERATION OF
EQUIPMENT
by
completing preventive maintenance
requirements; following manufacturer's
instructions; troubleshooting
malfunctions; calling for repairs;
maintaining equipment supplies;
evaluating new equipment and
techniques.
8. DELIVERS & MANOUEVRES
PRODUCT OR MATERIAL TO
DESTINATION
by
loading product or material; directing
material handlers.
16. CONTRIBUTES TO TEAM EFFORT
by
accomplishing related results as
needed.
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JOB TITLE:
LOADER & FORKLIFT OPERATOR, BRICK STACKER
JOB PURPOSE: STACKS BRICKS and TRANSPORTS AND MANOUEVRES PRODUCT OR MATERIAL
by
operating Loader and Forklift; Stacking Bricks ESSENTIAL JOB RESULTS:
% of
Time
% of
Time
1. DETERMINES CONDITION OF
VEHICLES
by
inspecting vehicles before and after
use; logging inspection; reporting
requirements.
6. MAINTAINS SAFE VEHICLES AND
CONDITIONS AND PROTECTS LOAD
by
complying with organization policies
and procedures and regulations.
2. ENSURES CORRECT LOADING OF
VEHICLE
by
loading product or material; directing
material handlers.
7. CONSERVES RESOURCES
by
using equipment and supplies as
needed to accomplish job results.
3. DELIVERS & MANOUEVRES
PRODUCT OR MATERIAL TO
DESTINATION
by
loading product or material; directing
material handlers.
8. MAINTAINS RECORDS
by
completing driver log; filing documents.
4. ENSURES OPERATION OF
EQUIPMENT
by
completing preventive maintenance
requirements; following manufacturer's
instructions; troubleshooting
malfunctions; calling for repairs;
maintaining equipment supplies;
evaluating new equipment and
techniques.
9. CONTRIBUTES TO TEAM EFFORT
by
accomplishing related results as
needed.
5. STACKS BRICK PRODUCT OR
MATERIALS TO DESTINATION
by
loading product or material; placing
material into designated position(s)..
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JOB TITLE:
GENERAL HAND
JOB PURPOSE: MAINTAINS PRODUCTION AND QUALITY
by
ensuring operation of machinery and mechanical equipment; sorting raw
material and other product; attending to general factory maintenance.
ESSENTIAL JOB RESULTS:
% of
Time
% of
Time
1. ENSURES OPERATION OF
MACHINERY AND MECHANICAL
EQUIPMENT
by
assisting with completing preventive
maintenance requirements on engines,
motors, pneumatic tools, conveyor
systems, and production machines;
assist with troubleshooting
malfunctions under supervision.
8. MAINTAINS EQUIPMENT, PARTS,
AND SUPPLIES INVENTORIES
by
checking stock to determine inventory
level; anticipating needed equipment,
parts, and supplies; notifying
supervisors for the placement and
expedition of orders; verifying receipt.
2. LOCATES SOURCES OF PROBLEMS
by
observing mechanical devices in
operation; listening for problems; using
precision measuring and testing
instruments.
9. CONSERVES MAINTENANCE
RESOURCES
by
using equipment and supplies as
needed to accomplish job results.
3. REMOVES DEFECTIVE PARTS
by
assisting with the dismantling of
devices under supervision; using
hoists, cranes, and hand and power
tools; examining form and texture of
parts.
10. PREPARES MECHANICAL
MAINTENANCE REPORTS
by
collecting, and summarizing
information and trends for analysis by
supervisor(s).
5. ADJUSTS FUNCTIONAL PARTS OF
DEVICES AND CONTROL
INSTRUMENTS
by
using hand tools, levels, plumb bobs,
and straightedges under supervision.
11. MAINTAINS TECHNICAL
KNOWLEDGE
by
attending educational workshops;
reviewing technical publications;
establishing personal networks.
6. CONTROLS DOWNTIME
by
assisting with, or carrying out routine
preventive maintenance techniques;
monitoring compliance under
supervision.
12. MAINTAINS CONTINUITY AMONG
WORK TEAMS
by
documenting and communicating
actions, irregularities, and continuing
needs.
7. MAINTAINS PRODUCTION
CONTINUITY
by
Sorting raw material and other product
in accordance with specifications.
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JOB TITLE:
TRUCK DRIVER (if required)
JOB PURPOSE: TRANSPORTS AND DELIVERS PRODUCT OR MATERIAL
by
operating a truck and trailer.
ESSENTIAL JOB RESULTS:
% of
Time
% of
Time
1. DETERMINES CONDITION OF
VEHICLE
by
inspecting vehicle before and after use;
logging inspection; reporting
requirements.
5. MAINTAINS SAFE VEHICLE AND
CONDITIONS AND PROTECTS LOAD
by
complying with organization policies
and procedures and highway rules and
regulations.
2. ENSURES CORRECT LOADING OF
VEHICLE
by
loading product or material; directing
material handlers.
6. CONSERVES RESOURCES
by
using equipment and supplies as
needed to accomplish job results.
3. DELIVERS PRODUCT OR MATERIAL
TO DESTINATION
by
loading product or material; directing
material handlers.
7. MAINTAINS RECORDS
by
completing driver log; obtaining shipper
and receiver authorizations; filing
documents.
4. ENSURES OPERATION OF
EQUIPMENT
by
completing preventive maintenance
requirements; following manufacturer's
instructions; troubleshooting
malfunctions; calling for repairs;
maintaining equipment supplies;
evaluating new equipment and
techniques.
8. CONTRIBUTES TO TEAM EFFORT
by
accomplishing related results as
needed.
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Appendix B - The Petemic Waste Recycling Process (Block Diagram for
Provisional Patent Application)
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25 Septemmber 1995 PreFeasibility Study Establish Solid Waste Recycling Plant.DOC
Appendix C - The Petemic Waste Recycling Process (Block Diagram for
Petty Patent)
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ary
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ays
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AST
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r #1
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stic
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SE (
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shed
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ubb
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Bu
ildin
g
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bb
le (
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l)
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r
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Appendix D - Panoramic View of the Narangba Industrial Estate
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Appendix E - Newspaper Clipping #1: Waste Management
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Appendix F - Newspaper Clipping #2: Waste Composition
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Appendix G - Acknowledgments
Acknowledgment is hereby given to technical adviser and consultant Mr John
Mackenzie of Sloane, Cook & King Pty Ltd, who have undertaken the majority of
market analysis and environmental considerations contained in this Report.
Mr Peter Stone of Chemquip Pty Ltd (Brisbane) has provided various input in
relation to technical engineering matters (also, refer various Attachments to this
Report completed by Chemquip Pty Ltd).
Ms Helen Gibson of Caboolture has provided constructive criticism and advice in
relation to various sections of this Report, and has assisted with specific matters
relating to local Council requirements, raw materials, site assessment, and
strategic planning.
Coller, Shannon, Rill & Scott (Sydney) have provided the complete review of
licensing requirements.
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Appendix H - References and Further Reading
1. Brookes, G., Kenley, R., Kerby, N., & Ellwood, D. (1994), "Shire of Hornsby: Economic & Operations Feasibility Study for Major Recycling Initiatives and a Council
Operated Transfer Station" in Achievements and Challenges; Proceedings of the
2nd National Hazardous & Solid Waste Convention, Melbourne. Australian Water
& Wastewater Association and Waste Management Association of Australia;
Artarmon NSW.
2. Brunner, Calvin R. (1991) "Handbook of Incineration Systems" McGraw-Hill, New
York, ISBN: 0-07-008589-7
3. Caboolture Shire Council (1993), "Waste Management Strategic Plan" Sinclair
Knight Consulting Engineers for Caboolture Shire Council.
4. Caboolture Shire Council (1993), "Strategic Land Use Plan, 1993"
5. Cook, J.B. & van den Broek, B. (1994), "A Plan to Achieve 50% Waste Diversion in
Sydney". in Achievements and Challenges; Proceedings of the 2nd National
Hazardous & Solid Waste Convention, Melbourne. Australian Water & Wastewater
Association and Waste Management Association of Australia; Artarmon NSW.
6. Duston, Thomas E. (1993) "Recycling Solid Waste" Quorum Books, Connecticut,
ISBN: 0-89930-754-X
7. Environmental Protection Agency. USA (1994), "Characterisation of Municipal
Solid Waste in the United States. Executive Summary" EPA Publication No EPA530-
S-94-042
8. Graham, R.A., Sharpley, G.E., & Thorpe, J.L. (1994), "Environmental Audits and
Management Planning for Canberra's Landfills" in Achievements and Challenges;
Proceedings of the 2nd National Hazardous & Solid Waste Convention,
Melbourne, Australian Water & Wastewater Association and Waste Management
Association of Australia; Artarmon NSW.
9. Monahan, D. & Scott, R. (1994), "New Approaches to Regulation of Environment
Protection including Waste Minimisation Aspects" in Achievements and Challenges; Proceedings of the 2nd National Hazardous & Solid Waste
Convention, Melbourne. Australian Water & Wastewater Association and Waste
Management Association of Australia; Artarmon NSW.
10. O'Flynn, M. (1986), "Revision of Industrial Rock and Mineral Resources in
Caboolture Shire" reported in Caboolture Shire Council (1993), "Strategic Land Use
Plan, 1993", as revised from Dept. Mines Publication (1989)
11. Queensland Department of Environment and Heritage (1993), "Environment
Protection Bill"
12. Queensland Department of Environment and Heritage (1994), "Draft Waste
Management Strategy for Queensland"
13. Skinner, J.H. (1975), "Demonstration of Systems for the Recovery of Materials and
from Solid Wastes" Resource Recovery and Utilisation, ASTM STP 592, American
Society for Testing and Materials.
PETEMIC TECHNOLOGY PTY LTD - FINAL REPORT PRE-FEASIBILITY STUDY FOR THE ESTABLISHMENT OF A RECYCLING PLANT Page 167 Section APPENDICES
25 Septemmber 1995 PreFeasibility Study Establish Solid Waste Recycling Plant.DOC
14. Stone, P. “Neutralysis - A Use for Municipal Waste” Proceedings of the
International Conference of Solid and Hazardous Waste Management
(Enviroworld), Singapore, June 1991.
15. Tasmanian Government (1994), "Solid Waste Plan" Reported at the Local
Government Conference - Waste.
16. Victorian Government (1994), "The Resource and Recovery Council; Grant
Programs 1993-94. "Reported at the Local Government Conference - Waste.
17. Wang, F.S., Richardson, A.J. & Roddick, F.A. (1994), "Swim: an Interactive Model for Solid Waste Integrated Management: in Achievements and Challenges;
Proceedings of the 2nd National Hazardous & Solid Waste Convention,
Melbourne. Australian Water & Wastewater Association and Waste
Management Association of Australia; Artarmon NSW.
18. Agriculture and Resource Management Council of Australia and New Zealand
(1994) “Guidelines for Sewage Systems. Acceptance of Trade Waste (Industrial
Waste)”. Canberra
19. Australian Environmental Council, National Health and Medical Research Council
(1986) “National Guidelines for Control of Emission of Air Pollutants from New
Stationary Sources” - Australian Government Publishing Service, Canberra
20. Australian and New Zealand Environment and Conservation Council (1992)
“Australian Water Quality Guidelines for Fresh and Marine Waters”. Canberra
21. Caboolture Shire Council (1993) “Procedures for the Submission of Consent
Applications within the Caboolture Shire”.
22. Monahan, D. & Scott, R. (1994), “New Approaches to Regulation of Environment
Protection including Waste Minimisation Aspects” in Achievements and
Challenges; Proceedings of the 2nd National Hazardous & Solid Waste
Convention, Melbourne. Australian Water & Wastewater Association and Waste
Management Association of Australia; Artarmon NSW. 82-89
23. Queensland Department of Environment and Heritage (1994), “Environmental
Protection Act 1994”
24. Queensland Department of Environment and Heritage (1994), “Environmental
Protection (Interim) Regulation 1995”
25. Queensland Department of Housing, Local Government and Planning (1992),
“Environmental Impact Statements and Designated Developments”. Brisbane
26. Queensland Department of Housing, Local Government and Planning (1992),
“Request for Terms of Reference for an Environmental Impact Statement”.
Brisbane.
27. Working Group Environmental Auditor Certification (1995), “Outline Proposal for
Environmental Auditor Certification System”. Artarmon NSW
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28. Working Group Environmental Auditor Certification (1995), Progress Update - April
1995. Artarmon NSW
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ATTACHMENTS
Attachment 1 - Organisation Chart (Three Shifts Basis)
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Attachment 2 - Project Implementation & Action Plan
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Attachment 3 - Strategic Management & Action Plan
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Attachment 4 - Plant Construction & Capital Development Program
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Attachment 5 - Commercial Viability Supporting Schedules
Schedule 1 - Primary Base Assumptions
Schedule 2 - Major & Secondary Inputs & Outputs (Material Balance)
Schedule 3 - Infrastructure & Costs
Schedule 4 - Building (Premises)
Schedule 5 - Sundry Plant & Equipment
Schedule 6 - Plant Operating Equipment
Schedule 7 - Depreciation Schedule
Schedule 8 - Primary Operating Costs / Quantities
Schedule 9 - Schedule of Salaries, Wages, & Sub-Contractors
Schedule 10 - Cash Flow Assumptions (Sundry)
Schedule 11 - Loans, Leasing & Hire Purchase Schedule
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Attachment 6 - Cash Flow Budgets
Cash Flow Budget - Year 1
Cash Flow Budget - Year 2
Cash Flow Budget - Year 3
Cash Flow Budgets - Years 1, 2, 3, and Y.I.Y.O.
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Attachment 7 - Profit & Loss Summary (Years 1, 2, 3, and Year-In-
Year-Out).
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Attachment 8 - Balance Sheet Analysis (Years 0, 1, 2, and 3).
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Attachment 9 - Break Even Analysis (Profit & Loss Summary)
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Attachment 10 - Locality Map - Narangba Industrial Estate
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Attachment 11 - “Petemic Technology - A Technology Review”
(Engineer’s Report - Chemquip Pty Ltd, June 1995).
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Attachment 12 - “Mass & Energy (Heat & Material) Balances”
(Engineer’s Report - Chemquip Pty Ltd, 20 July,
1995).
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Attachment 13 - “Here’s the Plan” (Brisbane City Council’s Waste
Reduction Program).
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Attachment 14 - Provisional Specification for Patent Application -
"A Waste Recycling Process and Apparatus"
(Intellpro)
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Attachment 15 - Scale Drawings of Primary Apparatus
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Attachment 16 - “Licensing” (Report prepared by Attorneys-at-Law:
Collier, Shannon, Rill & Scott, September, 1995).