PreFeasibility Study Establish Solid Waste Recycling …eprints.qut.edu.au/7219/1/7219.pdf ·...

& 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).

PETEMIC TECHNOLOGY PTY LTD - FINAL REPORT PRE-FEASIBILITY STUDY FOR THE ESTABLISHMENT OF A RECYCLING PLANT Section TABLE OF CONTENTS

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



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



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



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



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



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

PETEMIC TECHNOLOGY PTY LTD - FINAL REPORT PRE-FEASIBILITY STUDY FOR THE ESTABLISHMENT OF A RECYCLING PLANT Section EXECUTIVE SUMMARY & RECOMMENDATIONS


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



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.



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).



• 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.



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.



• 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.



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.



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



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:



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.



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.

PETEMIC TECHNOLOGY PTY LTD - FINAL REPORT PRE-FEASIBILITY STUDY FOR THE ESTABLISHMENT OF A RECYCLING PLANT Section INSTRUCTIONS/TERMS OF REFERENCE


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".



• 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.



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;



• 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



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.



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



• 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

PETEMIC TECHNOLOGY PTY LTD - FINAL REPORT PRE-FEASIBILITY STUDY FOR THE ESTABLISHMENT OF A RECYCLING PLANT Section PROJECT SUMMARY


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

PETEMIC TECHNOLOGY PTY LTD - FINAL REPORT PRE-FEASIBILITY STUDY FOR THE ESTABLISHMENT OF A RECYCLING PLANT Section S.W.O.T. ANALYSIS #1


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.



• 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



2. Business Objectives

3. Company Mission Statement



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.



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



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.



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.

PETEMIC TECHNOLOGY PTY LTD - FINAL REPORT PRE-FEASIBILITY STUDY FOR THE ESTABLISHMENT OF A RECYCLING PLANT Section STRATEGIC MANAGEMENT PLAN


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.



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



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



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



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

PETEMIC TECHNOLOGY PTY LTD - FINAL REPORT PRE-FEASIBILITY STUDY FOR THE ESTABLISHMENT OF A RECYCLING PLANT Section MARKET PROSPECTS FOR THE PETEMIC SOLID WASTE RECOVERY PROCESS


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



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



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.




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.



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



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"



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





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.






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



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.



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




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





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






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







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.








Feasibility Study for Major Recycling Initiatives and a Council Operated Transfer Station" in



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.



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



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:




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.




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.



52 Initial indications at the commencement of the study was $20 to $25m - Petemic management later

revised this to the amount shown.



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"



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



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"



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,



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.



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



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.



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.



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.



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.



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.



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.






Engineers for Caboolture Shire Council



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.





Clipping 1 - The Courier Mail, 25

March, 1995



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.



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

PETEMIC TECHNOLOGY PTY LTD - FINAL REPORT PRE-FEASIBILITY STUDY FOR THE ESTABLISHMENT OF A RECYCLING PLANT Section SITE ANALYSIS


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.



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



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.



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



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.



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.”



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



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.

PETEMIC TECHNOLOGY PTY LTD - FINAL REPORT PRE-FEASIBILITY STUDY FOR THE ESTABLISHMENT OF A RECYCLING PLANT Section LABOUR SKILLS AND ORGANISATIONAL STRUCTURE


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.



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



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.



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



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


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.



Electronic and Engineering Contractor


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



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



Two Shifts


(TWO SHIFTS)(TWO SHIFTS)


SECRETARYx 2


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


MAINTENANCECREW

x 1* Fitter

* Turner* BoilerMaker


x 1



x 1


x 1Freight In / Out

SUB-CONTRACTORS

INDUSTRIALCHEMIST

x 1

CONSULTANTx 1


GENERAL MANAGERx 1

* Vision* Leadership

* Management* Overview




Three Shifts


(THREE SHIFTS)(THREE SHIFTS)


SECRETARY

x 2(extended hours)

ADMINISTRATIONASSISTANT

x 1Assists Managerin his abscence


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


MAINTENANCECREW

x 1* Fitter* Turner

* BoilerMaker


x 1



x 1


x 1Freight In / Out

SUB-CONTRACTORS

INDUSTRIALCHEMIST

x 1

CONSULTANT

x 1


GENERAL MANAGER

x 1* Vision

* Leadership* Management

* Overview


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.



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.



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



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:




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


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



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:




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


Reporting Experience in

providing written and

verbal reports to

management and

other staff preferred.

Office

management,

Business or related



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


91 Equivalent to Grade 4 - State Clerical Employees Award ($420 per week base rate)



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:




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.



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:




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



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:




Loader Operation Experience in Loader

operation strongly

preferred

Loaders ticket /

certificate strongly

preferred


maintaining Loading

machines or similar an

advantage

none


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)



LOADER, PULVERSIER & EXTRUDER OPERATOR

Job Purpose: To FORM PRODUCT and TRANSPORT AND

MANOUEVRE PRODUCT OR MATERIAL:

Operates pulversiser and extruding

equipment; operates Loader



Skill Required:




Loader and Heavy Equipment

Operation

Experience in Loader

and heavy machinery

operation strongly

preferred

Loaders ticket /

certificate strongly

preferred


maintaining Loading

machines, heavy

equipment or similar

an advantage

none


experience in

documenting /

completing


and other logs an

advantage

none





LOADER & FORKLIFT OPERATOR, BRICK STACKER

Job Purpose: To STACK BRICKS and TRANSPORT AND

MANOUEVRE PRODUCT OR MATERIAL:

Operates Loader and Forklift; Stacks Bricks



Skill Required:




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


maintaining Loading

machines, forklifts and

heavy equipment or

similar an advantage

none


experience in

documenting /

completing


and other logs an

advantage

none





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.


Employ from Month: 2 - 6 (Two to Six)

Skill Required:




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.



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.


Employ from Month: 6 (Six - or at completion of Plant Construction)

Skill Required:




Loader Operation Extensive experience

in Truck Driving and

operation strongly

preferred

Current truck drivers

license (over 2

tonne) mandatory


maintaining Trucks

and Trailers an

advantage

none


experience in

documenting /

completing


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.





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



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.

PETEMIC TECHNOLOGY PTY LTD - FINAL REPORT PRE-FEASIBILITY STUDY FOR THE ESTABLISHMENT OF A RECYCLING PLANT Section PRODUCTION & PROCESSING OPERATIONS


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.



Conveyor #11Conveyor #10

Conveyor #9Conveyor #8Conveyor #7Conveyor #6


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)



Small Ferrous Metal Separator

Conveyor #10Conveyor #9

Conveyor #8Conveyor #7Conveyor #6


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)


METAL

Tumble Dryer


METAL

Figure 2- Block Diagram of the Petemic Waste Recycling Process (Petty Patent)

PETEMIC TECHNOLOGY PTY LTD - FINAL REPORT PRE-FEASIBILITY STUDY FOR THE ESTABLISHMENT OF A RECYCLING PLANT Section ENVIRONMENTAL GUIDELINES / ISSUES


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.



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.



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;



(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.



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



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



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.



SCHEDULE 1.2 Table 1 Schedule of Pollutants (continued)


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





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)]





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




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



SCHEDULE 1.5 Table 2 Schedule of Hazardous Pollutants*


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


emissions from all

points in a facility


emissions from all



emissions from all



emissions from all


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.



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



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

PETEMIC TECHNOLOGY PTY LTD - FINAL REPORT PRE-FEASIBILITY STUDY FOR THE ESTABLISHMENT OF A RECYCLING PLANT Section BUSINESS PREMISES & INFRASTRUCTURE SUPPORT


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



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.



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)



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

PETEMIC TECHNOLOGY PTY LTD - FINAL REPORT PRE-FEASIBILITY STUDY FOR THE ESTABLISHMENT OF A RECYCLING PLANT Section COMMERCIAL VIABILITY: INCLUDING FINANCIAL PLANNING & ANALYSIS


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.



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






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.



• 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 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



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.



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:



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:



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)



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



Building Rubble Production



$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



MSW Garbage - Price Received

$3.00 $4.00 $5.00 $6.00

($1)

$0

$1

$2

Base Model

Millions

Cost per tonne ($) delivered

NPA



Cost of Clay



$140 $160 $180 $200 $220 $240 $260 $280

($1)

$0

$1

$2

Base Model

Millions

Cost per tonne

NPA



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



Cost of Gas



$10.00 $12.00 $14.00 $16.00 $18.00 $20.00

($1)

$0

$1

$2

Base Model

Millions

Price per tonne ($)

NPA



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



Price Received for Reclaimed Metal



25 30 35 40 45 50

($1)

$0

$1

$2

Base Model

Millions

Average Life of Asset (Years)

NPA



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



Cost of Fuel (Furnace) Oil



600 800 1,000 1,200

($1)

$0

$1

$2

Base Model

Millions

Average Quantity (litres per hour of operation)

NPA



Quantity of Fuel (Furnace) Oil Required

250 300 350 400 450 500

($1)

$0

$1

$2

Base Model

Millions

Kilo litres per annum

NPA



Useage of Diesel



$0.40 $0.50 $0.60 $0.70 $0.80 $0.90

($1)

$0

$1

$2

Base Model

Millions

Cost per Litre ($)

NPA



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



Power Useage



$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



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



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.



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.



• 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)



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



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.



• 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



• 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".



• 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).



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.

PETEMIC TECHNOLOGY PTY LTD - FINAL REPORT PRE-FEASIBILITY STUDY FOR THE ESTABLISHMENT OF A RECYCLING PLANT Section LICENSING OF THE TECHNOLOGY


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

PETEMIC TECHNOLOGY PTY LTD - FINAL REPORT PRE-FEASIBILITY STUDY FOR THE ESTABLISHMENT OF A RECYCLING PLANT Section LICENSING OF THE TECHNOLOGY


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.

PETEMIC TECHNOLOGY PTY LTD - FINAL REPORT PRE-FEASIBILITY STUDY FOR THE ESTABLISHMENT OF A RECYCLING PLANT Section DISCLAIMER & QUALIFICATION BY CONSULTANT


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

PETEMIC TECHNOLOGY PTY LTD - FINAL REPORT PRE-FEASIBILITY STUDY FOR THE ESTABLISHMENT OF A RECYCLING PLANT Section APPENDICES


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)



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.


% 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.



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.


7. MAINTAINS WORK FLOW

by

studying methods; implementing cost

reductions; and developing reporting

procedures


TECHNICAL KNOWLEDGE

by


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.


by


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.



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


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


reading secretarial publications.

6. PREPARES REPORTS

by

collecting information.


by


needed.



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.


% 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.


TECHNICAL KNOWLEDGE

by


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.


by


needed.



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.


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.



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.


% 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.


by


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



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


material handlers.

7. MAINTAINS RECORDS

by

completing driver log; filing documents.


EQUIPMENT

by




malfunctions; calling for repairs;

maintaining equipment supplies;

evaluating new equipment and

techniques.


by


needed.



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



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”.



by



5. RESOLVES PRODUCTION

PROBLEMS

by

altering process to meet specifications;

notifying supervisor to obtain additional

resources.


by




LOADER VEHICLE

by



requirements.


by




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:


LOADER VEHICLE

by


material handlers.


EQUIPMENT

by







techniques.



DESTINATION

by


material handlers.


by


needed.



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


VEHICLES

by

inspecting vehicles before and after

use; logging inspection; reporting

requirements.

6. MAINTAINS SAFE VEHICLES AND


by




VEHICLE

by


material handlers.


by





DESTINATION

by


material handlers.


by



EQUIPMENT

by







techniques.


by


needed.

5. STACKS BRICK PRODUCT OR

MATERIALS TO DESTINATION

by

loading product or material; placing

material into designated position(s)..



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.


% of

Time

% of

Time


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


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



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


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



needs.

7. MAINTAINS PRODUCTION

CONTINUITY

by

Sorting raw material and other product

in accordance with specifications.



JOB TITLE:

TRUCK DRIVER (if required)

JOB PURPOSE: TRANSPORTS AND DELIVERS PRODUCT OR MATERIAL

by

operating a truck and trailer.


% of

Time

% of

Time


VEHICLE

by



requirements.



by


and procedures and highway rules and

regulations.


VEHICLE

by


material handlers.


by



3. DELIVERS PRODUCT OR MATERIAL

TO DESTINATION

by


material handlers.


by

completing driver log; obtaining shipper

and receiver authorizations; filing

documents.


EQUIPMENT

by







techniques.


by


needed.



Appendix B - The Petemic Waste Recycling Process (Block Diagram for

Provisional Patent Application)

Co

nve

yo

r #11

Co

nve

yo

r #10

Co

nve

yo

r #9

Co

nve

yo

r #8

Co

nve

yo

r #7

Co

nve

yo

r #6

Co

nve

yo

r #5

Co

nve

yo

r #4

Co

nve

yo

r #3

Co

nve

yo

r #2

Sec

on

da

ry

Vib

ratin

g

Scre

en

Pu

lve

riso

r #2

Prim

ary

V

ibra

tin

g

Scre

en

Pu

lve

riso

r #1

Ferr

ou

s M

eta

l So

rte

rG

arb

ag

e

Ho

pp

er

We

igh

brid

ge

#1

Tum

ble

Dry

er

Mix

er

Bin

de

r St

atio

nW

eig

hb

rid

ge

#2

Sto

rag

e B

ays

Cru

she

rR

ec

ove

ry

Ba

yC

utt

ers

#1

an

d #

2Ext

rud

er

CO

MPA

CTI

NG

& H

EA

TIN

G S

TAG

E

WA

STE

SELE

CTI

ON

WA

STE

RED

UC

ING

MEA

NS

MIX

ER

& B

IND

ER

STA

GE

BUIL

DER

S RU

BBLE

HO

USEH

OLD

GA

RBA

GE

CLA

YIN

DUS

TRIA

L W

AST

E (N

on-T

oxic

)

Co

nve

yo

r #1

Pla

stic

sBI

NS

(Pro

duct

for S

ale)

Bu

ildin

g

Ru

bb

le (

Ova

l)

Cru

she

r

Pre

-He

ate

r (6

00d

eg

.C)

Re

vo

lvin

g

Tum

ble

rK

iln/s

(1,2

00d

eg

.C)

BIN

S(P

rod

uc

t fo

r Sa

le)

Sm

all

Ferr

ou

s M

eta

l Se

pa

rato

r



Appendix C - The Petemic Waste Recycling Process (Block Diagram for

Petty Patent)

Sm

all

Ferr

ou

s M

eta

l Se

pa

rato

r

Co

nve

yo

r #10

Co

nve

yo

r #9

Co

nve

yo

r #8

Co

nve

yo

r #7

Co

nve

yo

r #6

Co

nve

yo

r #5

Co

nve

yo

r #4

Co

nve

yo

r #3

Co

nve

yo

r #2

Se

co

nd

ary

V

ibra

tin

g

Sc

ree

n

Pu

lve

riso

r #2

Prim

ary

V

ibra

tin

g

Sc

ree

n

Pu

lve

riso

r #1

Ferr

ou

s M

eta

l So

rte

rG

arb

ag

e

Ho

pp

er

We

igh

brid

ge

#1

Mix

er

Bin

de

r Sta

tio

nW

eig

hb

rid

ge

#2

Sto

rag

e B

ays

Re

co

ve

ry

Ba

yP

an

Pa

lletise

r

CO

MPA

CTI

NG

& H

EA

TIN

G S

TAG

E

WA

STE

SELE

CTI

ON

WA

STE

RED

UC

ING

MEA

NS

MIX

ER

& B

IND

ER

STA

GE

BUIL

DER

S RU

BBLE

HO

USEH

OLD

GA

RBA

GE

CLA

YIN

DUS

TRIA

L W

AST

E (N

on-T

oxic

)

Co

nve

yo

r #1

Pla

stic

s

BIN

S(P

rod

uct f

or S

ale

)RO

AD

BA

SE (

Cru

shed

Bui

ldin

g R

ubb

le)

Bu

ildin

g

Ru

bb

le (

Ova

l)

Cru

she

r

Kiln

/s(1

,200d

eg

.C)

BIN

S(P

rod

uct f

or S

ale

)M

ETA

L

Tum

ble

Dry

er

BIN

S(P

rod

uc

t fo

r Sa

le)

META

L



Appendix D - Panoramic View of the Narangba Industrial Estate



Appendix E - Newspaper Clipping #1: Waste Management



Appendix F - Newspaper Clipping #2: Waste Composition



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.



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


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.



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


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



28. Working Group Environmental Auditor Certification (1995), Progress Update - April

1995. Artarmon NSW

PETEMIC TECHNOLOGY PTY LTD - FINAL REPORT PRE-FEASIBILITY STUDY FOR THE ESTABLISHMENT OF A RECYCLING PLANT Section ATTACHMENTS


ATTACHMENTS

Attachment 1 - Organisation Chart (Three Shifts Basis)



Attachment 2 - Project Implementation & Action Plan



Attachment 3 - Strategic Management & Action Plan



Attachment 4 - Plant Construction & Capital Development Program



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



Attachment 6 - Cash Flow Budgets

Cash Flow Budget - Year 1



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)



Attachment 10 - Locality Map - Narangba Industrial Estate



Attachment 11 - “Petemic Technology - A Technology Review”

(Engineer’s Report - Chemquip Pty Ltd, June 1995).



Attachment 12 - “Mass & Energy (Heat & Material) Balances”

(Engineer’s Report - Chemquip Pty Ltd, 20 July,

1995).



Attachment 13 - “Here’s the Plan” (Brisbane City Council’s Waste

Reduction Program).



Attachment 14 - Provisional Specification for Patent Application -

"A Waste Recycling Process and Apparatus"

(Intellpro)



Attachment 15 - Scale Drawings of Primary Apparatus



Attachment 16 - “Licensing” (Report prepared by Attorneys-at-Law:

Collier, Shannon, Rill & Scott, September, 1995).

PreFeasibility Study Establish Solid Waste Recycling …eprints.qut.edu.au/7219/1/7219.pdf ·...

Documents

Transcript of PreFeasibility Study Establish Solid Waste Recycling …eprints.qut.edu.au/7219/1/7219.pdf ·...