ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

Technical Process of WEEE Recycling:Products and Processes

Presented to China’s National Appliance Productivity Center (CNAPC) Conference on WEEE

Robin IngenthronPresident, American Retroworks Inc.VP, ElectroniCycle Inc.

September 24-26, 2002

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

State Recycling Contracts:3 Basic Goals

• Meet Chinese/World demand for copper

• Use Best available environmental management

• Least possible cost

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

Example: the CRT Monitor

• US demand: 50 million monitors per year• Chinese demand: 50M monitors per year• India demand: 50M monitors per year• % Made in Asia rising every year

ferrous

copper

lead

silica

plastic

alum

other

These 3 countries willneed 450,000,000 lbs. of copper for monitors alone

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

3 Sources of Copper

World Copper Production: 2001

1. Mining (concentrates) 13,570,000 tons

2. Primary Smelter Recycling 1,234,000 (includes mix of brass, etc.)

3. Secondary Smelter Recycling 802,000

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

Lifecycle of Copper

Mining Primary Smelting SecondarySmelting

Wire Fabrication Product Assembly

Distribution / Retail First Consumer 2nd Consumer

Repair Recycle Disposal

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

First Effect: Reduce Mining Waste

500 Tons Mining,Concentrating2% concentrates, 98% waste

PrimarySmelting

350 tons residuals,145 tons leachate tailings1.8-2.7 tons SO gas1.8 tons slag

1 ton refinedcopper

cyanide Arsenic

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

Pollution Subsidies for Raw Materials

Number of 15 largest EPA Superfund Sites which are hard rock mines: 14

Percent of all toxic emissions from all US Industries attributed to hard-rock mining: 47%

Estimated Cost of Superfund cleanups to taxpayers $10B

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

Recycling Markets

Primary Smelting SecondarySmelting

First Consumer 2nd Consumer

Repair

Recycle

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

Recycling Plant

W ood C on so les

F errou s

P las tic

A lu m im u m

G old -B earin gA -B oard s

C op p erD eg au ss in g C o ils 4 2 %

Y okes 2 8 %W ire 2 2 %

5 ) Scrap Process ing4 4 ca teg ories

C ables , cordsM em ory, ca rd s

tu n erscartrid g es

6 ) Parts Inventory

3) D em anufacturing1 2 S ta ff

M on ito rsC P U S

TV sV C R s

7 ) Q ua li fied E xport

R ep a ir In -H ou se fo r R esa le2 7 " + TV s

1 9 " + m on ito rsP en tiu m 2 & ab ove

D om es tic S u b con trac to rsTV rep a ir lis tse rvescom p u te r lis tse rves

sp ec ia lty rep a ir sh op s

8 ) D om estic

4) Technical6 S ta ff

2) TEC H N IC AL TR IAG E

1) R ece iv ing

Shipping

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

1) Collection and Receiving

6 Million residents Collections/deliveries from City services, Retailers,Charities, Trash Haulers

Receiving: Must categorize, price, weigh eachload and enter it into administration database.

$/lbmonitors

$/lbTVs

$/lbCPUs

$/lbmixed

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

Service and ResaleWholesale ReUseWholesale Repair/partsScrapResidue

Glass Smelters

Plastic Recyclers

Gold, copper, aluminum other metals Smelters

Destiny of materials at ElectroniCycle

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

2) Technical Triage

3) Demanufacturing/Processing Department

4) Technical Department

$8-10 / hour70% labor force50 categories of scrapremove screwsgradingbaling

$10-22 / hour30% labor force41 categories of parts,reuse, etc.inspect for in-house repairinspect for 3rd party repair

15-30% 70-85%

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

Why is USA recycling expensive?

• Demanufacturing labor is high (75 monitors per FTE/day)• Plant and overhead is new• Baling, shredding, air compressing, power generating

equipment, degaussing equipment, rolling stock, shredder

Revenues:Tip Fees 85%Repair / Resale 10%Recycling 5%

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

Labor cost to product value$ spent and earned per 1000 monitors

-2000

-1500

-1000

-500

0

500

1000

1500

Copper revenue

Plastic revenue

Other metal revenue

250 monitor resale

Demanufacturing

Repair

Scrap handling

Does not include tippingfees charged to government.

Unscrupulous competitorsavoid demanufacturing andrepair labor, send WEEEoverseas “as is”

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

3. Demanufacturing / Processing

• Processed Material • Grades of gold• Grades of copper• Grades of ferrous• Grades of Plastic• Grades of Alumium• Grades of Glass

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

Possible End-Markets for Processed Material

P rocessed R ecyc led M ateria ls M arke ts

U S A C R T G lass S m e lte rs

Ferrous Sm eltersU S A or F ore ig n

A lu m im u m , L ead , Z in clos t in s lag was te

O EC D Prim aryC opper Sm elters

G old s lim eP a llad iu m s lim e

G old recovered inh arm fu l p rocess

C hinese SecondaryC opper Sm elters

A lu m in u m , fe rrou s ,IC recovery

F lam e R eta rd en ts?

C hinese P lasticrecyclers (brokers)

U S S econ d ary S m elte rsor fu rn aces / G o ld

Processed, G raded M ateria lM a jor Scrap C ategories

Disadvantages

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

Sample Beijing EPAPermit for graded copper scrap. These permits areintended to allow 3 million tons per year of processed (clean) scrap, but somemay have beenabused by waste exporters

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

4. Technical Department

4) Technical Department

Domestic Refurbishment- TVs 1992+, 75 cm+- Monitors 1996+, 55cm+- Parts resale, cords, etc.- Networking Equipment

Export Reuse- Working small monitors- Repairable large monitors- Pentium computers- Repairable PAL TVs, VCRs

25% material = 60% revenue

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

4. Examples of Technical Dept.

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

Realistic Reuse Goals

Re-Use

Recycle

% of weight Re-usable

Red portion is still good for reuse, Blue portion should be processed to remove toxic waste

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

Largest Sellers of Refurbished Computer Equipment (USA)

• Gateway• Dell• IBM• Hewlett Packard/Compaq

•“Certified” Refurbished units is fastest growing profit center•Used Quality Products compete with New Off-name products

Hire your best counterfeiters!

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

Summary of Alternatives

USA Export

Repairbest revenuebest end use

declining

expensive labor (andsometimes lousy)Poor consumer demand

expanding

cheap, talented repairHigh consumer toleranceOEM Hostility / parts

Recyclingbest source ofnew material

expanding

driven by need todispose, regulation

expanding

driven by demand fornon-ferrous metal

Disposal well regulated

relatively expensive

unregulated

residues dumped onstreets and in rivers

Mining stagnant

horrow show

expanding

snuff film

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

• Secondary Nonferrous Metals Smelters• BAODING ALUMINUM WORKS• BAOTOU ALUMINIUM SMELTER, INNER MONGOLIA• BEIJING METALS & MINERALS IMPORT & EXPORT CORPORATION• BEIJING NONFERROUS METALS INDUSTRY CORPORATION• BENXI ALLOY PLANT• CHANGSHA ALUMINIUM MATERIAL FACTORY• CHANGZHOU HUAYI ALUMINIUM PROFILES CO., LTD• CHANGZHOU SMELTERY• CHINA NATIONAL METALS & MINERALS IMP. & EXP. CORP. TIANJIN BRANCH• CHINA NATIONAL NON-FERROUS METALS IMPORT AND EXPORT CORPORATION, BEIJING BRANC• CHINA NATIONAL NON-FERROUS METALS INDUSTRY CORPORATION ZHUZHOU SMELT• CHINA NATIONAL NONFERROUS METALS IMP. & EXP. CORP. GUANGXI CO.• CHINA NONFERROUS METAL INDUSTRY CO. SHANGHAI UNITED CENTER• CHINA NONFERROUS METAL INDUSTRY CORP. XIANGHUALING STANNARY NORTH-WEST ALUMINIUM

WORKING MILL• DESHENG ALUMINIUM PLANT• FUJIAN CAPITAL CONSTRUCTION MATERIAL SUPPLY CORPORATION• FUSHUN ALUMINIUM PLANT• GANSU ALUMINIUM INDUSTRY COMPANY• GANZHOU ALUMINIUM PLANT• GEJIU GENERAL FOREIGN ECONOMIC RELATIONS & TRADE CORPORATION• GUANGDONG NANHAI COUNTY XINGFA ALUMINIUM SECTION PLANT.• GUANGXI HARDWARE MINERALS IMP. & EXP. BEIHAI CORP.• GUANGZHOU ALUMINIUM MATERIAL PLANT• GUANGZHOU ALUMINIUM PROCESSING FACTORY• GUANGZHOU COPPER AND ALUMINIUM MATERIAL FACTORY• GUIZHOU ALUMINIUM PLANT• HAINAN NATIONAL FOREIGN TRADE CORPORATION• HANGZHOU YATONG ELECTRONICS CO., LTD• HANSEN SPECIAL ELECTRIC WIRE CO. LTD.• HENGDIAN GROUP CO. HENGDIAN GROUP CORP. IMPORT & EXPORT COMPANY

Chinese secondary non-ferrous smelters

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

• HENGYANG TIANYUAN NONFERROUS METAL CO.,LTD.• JIANGSU ALUMINIUM PLANT• JIANGXI NON-FERROUS METALS SMELTING AND PROCESSING PLANT• JILIN NICKEL INDUSTRY CORPORATION• KAI PINT ALUMINIUM SECTIONS MATERIAL MANUFACTORY• LANZHOU LIANCHENG ALUMINIUM SMELTER• LUOYANG PETROLEUM CHEMICAL INDUSTRY SUPPLY AND MARKET COMPANY• MATOU ALUMINIUM PLANT MEIZHOU CIGARTTE FACTORY• METALLURGCAL RESEARCH INSTITUTE, GUANGHUA CHEMICAL INDUSTRY COMPANY• NANHAI OIL ZHUHAI BASE CO.• NANJING DOLOMITE MINE NANJING HUAHONG MAGNESIUM COMPANY• NINGBO THREE A INDUSTRIAL GENERAL CORPORATION• NORTHEAST LIGHT ALLOY FABRICATION PLANT• PANSHI ALUMINIUM WORKS, JILIN• PINGXIANG ALUMINIUM FACTORY, JIANGXI• QINGTONGXIA ALUMINIUM PLANT• SHANDONG ALUMINIUM COMPANY• SHANGHAI AIRCRAFT MANUFACTURING FACTORY• SHANGHAI NON-FERROUS METALS INDUSTRY CORP• SHANGHAI SMELTER• SHANGHAI VACUUM FLASK & VESSEL MANUFACTURING CORP.• SHANTOU SPECIAL ECONOMIC ZONE, ZHUCHI REAL ESTATE DEVELOPMENT CORP.• SHAOGUAN SMELTERY• SHENYANG LIMING FORGING AND CASTING INDUSTRIAL COMPANY• SHENYANG NONFERROUS METALS WORKS• SHENZHEN JINYUE ALUMINIUM PRODUCT CO. LTD.• THE BEIJING ZHONG KE NEW TECHNOLOGY DEVELOPMENT OF CHEMICAL METALLURGY COMPANG• TIANJIN METAL MATERIALS WEST STATION STORE COMPANY• URUMCHI ALUMINIUM PLANT• WAFANGDIAN MATERIAL REGENERATING, UTILIZING CO.• WUXI COUNTY WELDING MATERIAL MANUFACTORY• WUXI SMELTERY• YANTAI INSTITUTE OF MECHANICAL TECHNOLOGY• YELLOW RIVER ALUMINIUM INDUSTRY COMPANY LIMITED• YUNNAN ALUMINIUM PLANTZHEJIANG HENGSHAN FERROALLY FACTORY

Chinese secondary non-ferrous smelters, cont.

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

Recycling or Disposal Jobs / Ton1 ton = about 50 picture tubes

0200400600800

1000120014001600

Jobs /1,000tons

Disposal

Exporting

Recycling

Repair

Most employment fromrepair and reuse; Next most employmentis from correct processing

ElectroniCycle, Inc.

PO Box 1010 Middlebury, VT 05753 P: 802-382-8500

More Perspectives

• Www.ban.org

• www.unctad.org

• www.mineralpolicy.org

• www.mpi.org.au

• www.retroworks.com

• www.electronicycle.com