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How to write vendor contracts so that they include proper end-of-life management criteria Robin Ingenthron Good Point Recycling Middlebury, Vermont www.retroworks.com. Northeast Recycling Council. Making an educated procurement. Session Goals:.
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end-of-life management criteria
Good Point Recycling
Northeast Recycling Council
China’s copper demand
has compounded at 20%
per year for the past 4 years.
USA secondary (used) market for PCs is 1:3.
Asia is 3:1.
One Copper mine in Papua New Guinea dumped 80,000 Tons Per Day of Cyanide tailings into the OK Tedi River from 1990-2000 – due to reopen in 2004.
USGS – At 1990 rate of consumption, all known copper reserves will be exhausted this century: Ocean mining for copper to begin in our lifetimes.
USA Model? 95% from federal lands, $5/acre, 14/15 largest Superfund sites, bankrupts Superfund. GMA 1872 - Became World Bank standard in 1980s.
Hard rock mining produces 45% of all toxics produced by all USA industries.
E-Scrap is 300% richer in copper and other metals than mined ore. Recycling produces a fraction of the pollution from mining.Cost of Consumption
Gold miningreleases more mercurythan mercury mining and disposal combined!!!
Mining nightmares in Borneo, Chile, Congo, Philippines, Turkey, etc.
- e.g. 17” monitor tested working, $30
2) Can it be repaired? 15% material = 30% of income
- e.g. white box PCs, repairable monitors, $5 each
Can it be recycled? 75% of material = 20% of income
- gold, copper, aluminum, steel, plastic, pennies per pound
Disposed (incl. contaminants)? 5% material = LOSS
- Wood debris, cable casings
All Income combined = 1/3 of collection and operating costBasic Process: Triage for value
Gold, copper, aluminum other metals smelters
Contact with over 200 international repair shops via exporters.com.sg, alibaba.com, globalrecycle.net, recycle.net, etc. http://www.exporters.com.sg/members/myshowroom/
Sales of parts and refurbishment on ebay.com
Scrap copper, alum, plastic sold directly to end users
The internet has completely changed the secondary parts and scrap market during the past 8 years, lowering the barrier to entry into technical and export markets.
for used is overseas
If copper and lead returned
to 1900 prices, and monitors were
repaired at 75% rate
Countries with high reuse and no mining subsidies have the advantage in scrap sales. Countries with high reuse and “free” software have the advantage in reuse.
No mining subsidies, and 10%
technical and handling labor cost
Countries with high reuse, no mining subsidies, and low wages are the winners
REALITY: If USA exports everything, we send 1/3 reusables, 1/3 recyclables, and 1/3 Toxics Along for the Ride.
REALITY: if USA exports nothing, we destroy reuseables (and they can’t afford new); they mine to replace the recycled metals, and mining produces even more toxic harm than recycling.
SOLUTION: Setting a Higher Standard. USA processing, limited exports (tested equipment, copper scrap), simple tests (like CRT Glass Test); market development to promote best practices; (funded) state processing contracts with restrictions and incentives; etc.
- you can deal with anyone directly
2) Picked over Junk, Obsolete and burnt
- you should insist on domestic processing
3) “I dunno”…Mix of good, bad and ugly
- you should deal with USA company with capacity to separate, process and market, and get documentationUnderstanding your own supply
1) Pristine takeouts, off-lease equipment (Reuse material)
Highly Sorted Working and repairable monitors, P2s+, cords, peripherals, cartridges
dollars per item (not pennies per pound)
high overseas demand, with incentives to hide it from tariff collectors and anti-gray-market enforcers
2) The Dregs:
“We’re switching to flat screens”
One fellow insisted his 1990 public school
Stuff “works as good as when it was new”.
Another commercial client insisted that working monitors, replaced by flat screens, must be recycled/destroyed here in the USA.
1. CRT Glass Test - Legitimate USA recyclers must be able to show where the LEAD (non-repairable glass) goes.
Nasty recycling (and nastier mining) practices. We do all Printed Circuit Boards domestically.
Q: Will this lead to more mining?
A: Gold mining is maxed out already
See March, April 2004 National Geographic for environmental impacts of gold in Asia
BAN: chinese circuit board / gold recycler
Reuters: chinese miner
3. Truth in Exporting Test - Legitimate bill of lading shows make/model/voltage/COO/condition.
Curiously: terrific export prices offered by this vendor, but every
sample photo sent includes a carton of cigarettes…Hmmm.
Dual books – purchase orders could include high-end equipment
(e.g. submarine tracking devices) hidden in the scrap.
handle last year?
much automated processing
equipment is in place?
Logistics - Does smaller vendor have records and signed agreement
with larger vendor
Violation of a state/federal contract puts vendors in fear of the Attorney General (so long as the AG can understand your contract)Enforcement – defrauding a state contract is more than a fine
Apples to Apples: establish guidelines to compare incoming product and markets. (Commercial P2 hard drives are different from Public School Mac LC2s).
Perspective: 12 pages is too long for a one-day event.
Economy of scale: Volume lowers cost, low costs encourage participation. The perfect may be the enemy of the good.
Bigger Contract, Higher Expectations: Buy off of existing contracts (state, EPA, Dell, etc.) which have successfully imposed high standards and follow-through/evaluation. (“Recycler agrees to use markets identified in state bid XXX unless Host is notified in advance”)Procurement Goals
For first events or sales, establish ex-post-facto follow-up guidelines. “Recycler agrees to provide copy of bill of lading or shipping manifest for any trailerload or export container with items recovered from Host”. Document follow up visits (or make them yourselves).
Glass Test Etc. “Recycler will fax a copy of each shipment of processed CRT glass, PCBs, etc.”
Play multiple vendors off each other might be more credible threat than to reissue RFP (only if logistics allow).
Tax primary smelting - take back the federal subsidies to mining states at the point of consumption
Shortcuts / ROTs
California gold rush contract – 68 cents/lb. Nice if you can get it, but would crush voluntary recycling if left unfunded.
PA County RFP - 28 pages for 1-day event
EPA ID Number provided… Superfund sites have EPA ID numbers.
Membership in organizations indicates spare cash, not much else.False Comfort
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