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21st Annual Conference E-Waste: Trends, Challenges & Legislation Sims Metal Management Limited ASX Code: SGM NYSE Code: SMS WasteMINZ Conference – New Zealand Kumar Radhakrishnan Sr. Vice President - APAC 15/10/2009 Agenda • • • • • Introduction E-Waste - Trends & Challenges Legislation Lessons from Global Experience Conclusion Sims Recycling Solutions (SRS) • Subsidiary of Sims Metal Management (SPM in NZ) – $ 7 billion revenue and public listed on ASX / NYSE • The world’s largest electronics recovery and recycling company - 34 processing facilities world-wide • 400,000 tonnes of EEE recycled & recovered annually • Many facilities “multi-service” Carbon neutral when savings versus virgin material exploitation are taken into account One of Innovest’s Global 100 most sustainable companies 2009 (released at the Davos Summit 2009) SRS presented the 2009 Market Leadership Award to Sims Recycling Solutions for demonstrating unrivalled thought and experiential leadership in the electronics waste recycling market by Frost & Sullivan Global Operations – Sims Recycling Solutions Illinois 2 Operations Canada 1 Operations EU 13 Operations Asia Representative offices California 3 Operations Singapore 1 Operation Arizona 1 Operation Australia 5 Operations Nevada 1 Operation Louisiana 1 Operation South Carolina 1 Operation Tennessee 1 Operation India 1 Operation Florida 1 Operation New Zealand 1 Operation 34 Operations Globally 5 E-Waste – Trends, Challenges & Legislation Sims Metal Management Limited ASX Code: SGM NYSE Code: SMS 6 E-Waste :Trends & Challenges • Definition – E-Waste or WEEE • Trends – Volumes – Targets & Collections – Complexity of new products • Challenges – Technical – Commercial – Enforcement Courtesy – WEEE Man Europe 1 EU Directive, 27 different interpretations • 27 registration regimes, 27 reporting frameworks Limits economies of scale and creates difficulties for both recyclers and obligated producers For Instance: – TFS regs.– Apply within EU - Barrier to trade, adds cost “Co-mingling” working and BER units makes the whole load waste Crossing borders with “waste loads” can require special paperwork Permitting Regulations for transport and processing – 1EU Directive---27 different permitting systems Recycling and Reuse targets higher in revised WEEE directive 8 USA Of 50 States, 18 and NYC have passed legislation – Products covered vary (all cover monitors) – 17 are EPR but California is ARF – Of the EPR’s, some require producers to pay for collection and transportation , others do not – All require producers to provide some funds for recycling. – Some ban prison labour, some don’t Export is controlled by Feds, and controls are absent, but CA will not pay for recycling done out-of-State Permitting – State EPA’s apply differing and varying permits 9 Australia No national legislation Adhoc export permits Any investment is at recycler’s risk but industry and producers have been ready for sometime and waiting for government action Choice Modelling study confirms consumer willingness to pay for recycling beyond any doubt Stakeholder consultation on various options have been held EPHC to make decision in November 10 Asia Japan “Home Appliance Recycling Law” financed by consumer Voluntary collection scheme for IT equipment Korea – “Act for Recycling of EEE and ELV” Taiwan – Waste Disposal Law / Recycling Management Fund China and India have issued draft e-waste guidelines Main concerns Huge “back yard” industry leaves little scope for industrialised operators Illegal shipments from West keep back yard operators busy Immature Environmental, Health and Safety standards, with differing requirements everywhere Shipments to Asia carry big risk with data security, IP protection, OH&S, environmental outcome etc. 11 Lessons from Global Experience • Focus on recycling standards Consumer Waste bin – Environmental benefits flow from landfill diversion and resource recovery only when appropriate standards are met • Enforce export restrictions to support standards, otherwise – Material will flow abroad with adverse carbon emissions impacts – Will be recycled inefficiently in back yard cottage industries Retailer Municipal site 2nd hand market place Trader • Promote reuse • Set targets for collection and Export benchmark against world standards • Minimize administrative requirements • One national scheme Unauthorised Treatment • No cherry picking Collection centre Transport Export Authorised Treatment Accounted for Unaccounted for New Zealand – Where are WEEE now? Voluntary schemes do not create a level playing field E-waste not a priority product Random collection events locally One National “E-Day” collection event per year Mostly B2B arisings from a few responsible OEMs and local companies Donations to charities 13 Conclusion - Can these be applied in NZ? • Mandatory product stewardship schemes do exist • EU have moved on from WEEE to RoHS, REACH, EuP, Battery Directive……. • Countries with comparable population i.e. Ireland, Denmark, Finland etc recycle 35,000 – 60,000 MT of WEEE annually • Solutions are readily available • Political will required Thank You Sims Metal Management Limited ASX Code: SGM NYSE Code: SMS 21st Annual Conference