This is the result of a strategic review of the business, which concluded that battery recycling is outside the scope of the company’s future business strategy. In addition, the level of receipts has averaged just 40 tonnes per year and fell by 45% in 2011. With no legislative imperative for recycling of handheld batteries, this volume is too low to support a viable recycling business.

Commercial viability requires a ‘gate fee’ to cover costs and produce a reasonable return on investment. The low collection volumes (<1% of the estimated market of discarded batteries) and increasingly competitive gate fees do not support future investment.

The company has stated that the recycling of batteries is an important and growing issue that needs to be addressed. However, significant strategic, legislative and commercial barriers must be overcome at an industry level to provide a suitable environment for the investment required.

Background to the pilot recycling program
Alkaline and carbon zinc batteries are the most commonly used handheld batteries in Australia, representing approximately 80% of the batteries consumed, with about 6,000 tonnes per annum disposed to landfill. These batteries contain recyclable steel, zinc and manganese.

AusZinc recognised that these materials had the potential to be recovered and recycled. Council and EPA approvals were obtained to collect, sort, store and process trial volumes of up to 400t of batteries under strictly monitored license conditions.

AusZinc has been receiving used batteries since May 2008; and collection of all chemistries has totalled 148 tonnes – averaging 40t/year. AusZinc has applied its existing technology to the recycling of alkaline batteries with recovery of metals and other components from the used cells. Approximately 31% of the batteries collected have been processed and recycled to date, with additional processing campaigns planned for 2012 to eliminate remaining stocks.

AusZinc has made a considerable commitment to battery recycling over the past four years, through market and business development; obtaining legislative approvals; sorting, storage and processing; air and product sampling and analysis as well as the marketing of recycled components. The company will continue to process its remaining stocks of batteries and to test emissions from the process as required under its EPA license.

Employees involved in the process will be redeployed to other duties and no job losses are expected as a result of this change.

Background to AusZinc
AusZinc produces zinc alloys, zinc metal and zinc chemicals including toning alloys for hot dip and continuous galvanizing, die-casting alloys and various grades of zinc oxide for fertilizer and other applications.

In 2010 their parent company Delta was fully acquired by Valmont Industries, a US-based market-leading manufacturer of steel products for infrastructure and agriculture.

Enquiries: Alex Spillett (02) 4275 8801

The $1.32 million grant awarded to Hydromet will contribute towards the installation of a small scale lead smelting furnace at its Unanderra site. The smelter will produce lead bullion from lead oxide paste, which is generated from Hydromet’s existing used lead acid battery operation and from other waste streams such as CRT glass from electronic waste.

The company will finalise the economic and technical evaluation of the project including likely feed streams and products in the next few months. Subject to the outcomes of these, the contruction of the new plant could commence in early 2013. The total cost of the project is expected to be around $4.6 million.

The Australian Government established NBN Co Limited to design, build and operate a new high-speed NBN. As customers are transferred onto NBN Co’s new fibre network Telstra’s legacy copper network within the fibre footprint will be decommissioned.

The existing copper network is independently powered from the exchange and is capable of providing analogue phone services to households and businesses in the event of a power outage. Unlike the copper network, fibre does not carry electricity and will not support analog phones in a power outage.

The Government is consulting with stakeholders on appropriate ways of providing battery backup services for those who need them. 

Backup is provided through a high quality sealed lead acid battery that has an operational life of 3-5 years. The government has estimated that the provision of a backup facility to all 11 million fixed line voice subscribers in Australia would result in the disposal of 2-4 million batteries annually.

In its submission to the government ABRI has argued that the design of the battery backup service must include the establishment of a mandatory take-back and recycling program to reduce the environmental impact of the batteries at end of life.  The disposal of used lead acid batteries in landfill is clearly unacceptable because of the environmental risks involved. Disposal in landfill also means that valuable non-renewable resources, particularly lead, are not being rcovered for reuse.

The company believes the combined resources of Hydromet and PGM will provide a platform for the group to diversify its current operations and participate in the rapidly growing electronic waste (e-waste) sector, which has been given a boost by recently passed regulations on recycling TVs and computers.

The acquisition of PGM will position Hydromet as a leading provider of e-waste recycling services in Australia with the potential to expand into other hazardous waste recycling segments. It will offer synergistic opportunities for Hydromet and PGM to achieve improved downstream e-waste processing recovery in areas such as the treatment of lead bearing CRT glass and circuit boards containing precious metals, which will result in Hydromet becoming a niche market leader.

About Hydromet

Hydromet is an Australian owned industrial residue treatment and recycling company. The company is listed on the Australian Stock Exchange.

In 2008 Hydromet tripled their recycling capacity from 12,000 tonnes to 36,000 tonnes per annum of used lead acid batteries at its Unanderra battery recycling facility. Hydromet has capacity to recycle almost one-third of the estimated 120,000 tonnes of lead acid batteries that reach the end of their life in Australia each year.  For more information visit their website.

About PGM

PGM Refiners is an Australian owned company, specialising in electronic waste recycling and developing innovative resource recovery technologies. Their recently upgraded processing facility in Dandenong, Victoria breaks down e-waste, including lead bearing CRT glass, into its major components. The resultant products, value added where appropriate, are used by downstream processors and by manufacturers as feed material for creating new consumer products.

PGM has a number of collection and recycling arrangements across a wide network of local governments and corporate clients. The company’s revenue is predominately derived from service fees. For more information visit their website.

Completion of the sale is subject to the approval of the Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board (FIRB). Subject to these approvals, completion of the sale is expected to occur in early 2012.

Following the sale, Nyrstar and SimsMM will retain ARA’s secondary lead producing facility in Melbourne, which will continue to be operated as a 50/50 joint venture.

About Australian Refined Alloys

ARA is a secondary lead producing 50/50 joint venture between Nyrstar and SimsMM. ARA has two facilities, one of which is located in Alexandria (Sydney) and the other in Laverton North (Melbourne). Total lead production in 2010 was approximatley 37,900 tonnes (Sydney 20,700 tonnes and Melbourne 17,200 tonnes).

About Renewed Metal Technologies

Renewed Metal Technologies (RMT) is a privately held company that specialises in the recovery of non-renewable resources. RMT owns and operates a secondary lead producing facility in Wagga Wagga, NSW.

About Nyrstar

Nyrstar is an integrated mining and metals business, with market leading positions in zinc and lead, and growing positions in other base and precious metals. Nyrstar has mining, smelting and other operations located in Europe, Australia, China, Canada, the United States and Latin America and employs over 6,600 people. Nyrstar is incorporated in Belgium and has its corporate office in Switzerland.

About Sims Metal Management

SimsMM is the world’s largest listed metal recycler with approximately 260 facilities and 6,500 employees globally. Sims’ core businesses are metal recycling and recycling solutions. SimsMM generated approximately 85% of its revenue from operations in  North America, the United Kingdom, Continental Europe, New Zealand and Asia in fiscal year 2011.  The company’s executive head office is located in New York.

• sealed lead acid batteries, which are used in a number of applications such as emergency lighting, security alarms, portable tools and consumer electronics 
• automotive batteries used for starting, lighting and ignition.

According to research undertaken in 2010 by the Australian Battery Recycling Initiative (ABRI), Australian households purchase more than 7.6 million or 86,000 tonnes of lead acid batteries each year, and dispose of more than 6.2 million of 92,000 tonnes of them. 

Planet Ark asked people how they disposed of their used lead acid batteries. The answers varied according to the battery type, for example 25% of home alarm batteries are placed in the household garbage bin, compared to 2% of car batteries.

When asked about their preferred system for recycling lead acid batteries, 43% suggested a council-provided community recycling bin that you take the battery to; 28% preferred drop off locations in shops or businesses, and 21% would like collection from home a few times a year.

The full report on the research can be downloaded here.

The service will be rolled out accross Australia commencing 2012, and will be free of charge to the public at designated collection points.

Infoactiv Group has extensive Australian and international experience in operating e-waste collection and recycling schemes for IT equipment, consumer electronics and mobile phones. They currently manage the mobile phone collection program for MobileMuster.

ANZRP will be seeking early approval fromthe Australian Government to become an Arrangement Administrator under the Product Stewardship Act and subordinate regulations. The Product Stewardship (Televisions and Computers) Regulations 2011 came into force on 8 November.

More information is available here.

More information is available from the conference organisers.

The next European forum will be held in Barcelona from 20-22 March 2012.

The EV Battery Forum also has an active discussion group on LinkedIn. To apply to join the group click on LinkedIn.

Topics to be covered at the forum will include the Product Stewardship Act, new regulations for TVs and computers, and the recovery of e-waste, batteries, mobile phones, tyres, fluorescent lights and organics.   

The forum will be held as part of the Australiasian Waste & Recycling Expo at the Sydney Convention & Exhibition Centre, Darling Harbour.

Members with stands at the expo will include Century Yuasa Batteries in conjunction with Planet Ark, and Orbitas.

More information is available from the Waste & Recycling Expo website.

- manage their business risks

- avoid legal prosecution

- protect the health and safety of workers an the general public

- avoid environmental damage from spills or accidents

- protect their corporate reputation.

These requirements are summarised in a brochure published by ABRI, entitled Responsible recycling of used lead acid batteries. The brochure covers legal requirements for transport and storage, insurance, safe handling and packaging.

The brochure can be downloaded here.