ISSUES AND OPTIONS FOR THE MANAGEMENT OF WASTE TYRES IN THE AUSTRALIAN MINERALS INDUSTRY

Transcription

1 ISSUES AND OPTIONS FOR THE MANAGEMENT OF WASTE TYRES IN THE AUSTRALIAN MINERALS INDUSTRY

2 CONTENTS 1. INTRODUCTION Project brief 1 Scope 1 Outputs 1 2. CURRENT DRIVERS FOR THE MANAGEMENT OF WASTE TYRES Oversize tyres 2 Availability and cost of oversize tyres 4 The proposed national product stewardship scheme 4 Background 4. Structure and governance of the proposed scheme 5. The levy 5. Governance 5. Scheme membership 6. Levy collection 6. Payment of benefits 6. Free rider regulation 7. Remote and rural areas 8. Implications for the mining industry 8 3. TYRE CONSERVATION STRATEGIES Extending tyre life 9 Retreading and repair of oversize tyres 10 Repairing tyres ANALYSIS OF CURRENT DISPOSAL OPTIONS On-site burial 13 Safety bunds OPTIONS FOR RE-USE AND RECYCLING Use of end-of-life tyres 15 Civil engineering applications 15. Use of chipped tyre as an explosives stemming agent 16. Bioreactor landfill leachate management 17. Waste to energy as tyre derived fuel 17. Fuel for blasting 18. Waste tyre reprocessing 18 New technologies 19 Surface modification 19. Rubber devulcanisation 19. Pyrolysis 20 Barriers to the recycling of oversize tyres OUTLINE OF AN INDUSTRY-LED SCHEME FOR THE MANAGEMENT OF WASTE OVERSIZE TYRES Principles to guide the management of oversize tyres 23 Evaluation of options for oversize tyres 24 Conveyor belt 25 Recommended principles for MCA engagement 25 APPENDIX 1: SUPPLEMENTARY INFORMATION ON OPTIONS FOR USED TYRES Retreading 26 Civil engineering: ecoflex 27 Reprocessing to crumb 29 Manufactured products 30 Road surfacing 31 Conveyor belt 33

3 1 INTRODUCTION Project Brief Sustainable Strategic Solutions (S3) was engaged by the Minerals Council of Australia (MCA) to undertake a review of the issues surrounding waste tyres in the Australian minerals industry and to examine options for their management. The need for this study was identified partly as a response to the proposed national product stewardship scheme for used tyres, which seems unlikely to meet the needs of the minerals industry. Scope To examine the drivers for the management of used tyres including : Availability and cost of oversize tyres The proposed national Product Stewardship scheme for used tyres. To review current arrangements for the management of waste tyres in the industry including: The location of waste mining tyres Tyre conservation strategies Current disposal options; and current recycling of waste mining tyres. To review potential new technologies and management strategies and develop an outline for a possible minerals industry-led scheme for the management of waste oversize tyres. Outputs The output of this study will be a report covering the issues outlined in the scoping document. The report will form the basis for an industry led waste tyre scheme that provides a viable alternative to the imposition of a levy based scheme.

4 2 CURRENT DRIVERS FOR THE MANAGEMENT OF WASTE TYRES Oversize tyres Earthmover tyres (also called off-the-road (OTR) or oversize tyres) are used for vehicles in the minerals, construction, civil engineering and forestry industries. A typical example is a 240 tonne dump truck, which is used in the minerals industry. The truck needs 6 tyres, each costing $25,000, and the tyre stands 3.5 m high and weighs 3.2 tonne 1. Oversize tyres range in size 24 inch rims to over 57 inches and weigh from 100 kg to more than 4 tonnes. The most popular sizes are R49 (2700), used for 100 tonne dump trucks, R51 (3300) and R57 (4000) 2. Classification of oversize tyres is difficult because there is no industry standard so different distributors/producers have different tyre classifications, for example Bridgestone have 13 different oversize tyre classifications 3. Tyres are typically discussed as Equivalent Passenger Units (EPU) where 1 EPU is equivalent to one passenger tyre weighing 9.5 kg. This translates into the following EPUs for earth moving tyres 4 : Earth Mover Small (up to 1 m diameter) 20 EPU Earth Mover Medium (1 1.5 m) 50 EPU (475 kg) Earth Mover Large (1.5 2 m) 100 EPU (950 kg) The oversize tyre segment of the tyre industry is dominated by three tyre companies (95% of the market): Bridgestone, Michelin. and Goodyear: 80% of total market dominated by two players: Bridgestone/Michelin 10% of the market is Goodyear 10% are a number of small specialist brands No oversize tyres are manufactured in Australia; they are imported from Japan, Indonesia, Thailand and the USA. Oversize tyres used by the minerals industry account for approximately 25% of the total weight of tyres used in Australia per year 5. Due to the size of the product involved, quantity is not usually used as a measure of volume for this range of tyre. Historically, volumes are recorded on a tonnage basis. 1. Economics of Tyre Recycling, ARRB Transport Research Ltd, June Vince Schepsis Tyre Clean Australia, Personal communication. 3. Economics of Tyre Recycling, ARRB Transport Research Ltd, June Used Tyre Strategy for Western Australia, Draft for Consultation, Waste Management Board, Melanie Stutsel, Minerals Council of Australia, Personal communication.

5 Approximately 67,000 tyres or 63,000 tonnes of the sizes used in the minerals industry 6 are purchased on an annual basis. However it was estimated that 177,000 tyres or 168,000 tonnes of oversize tyres are in use in Australia, showing on average that one in 2.6 tyres is replaced annually, almost double the rate for passenger tyres. In late 2005 the MCA conducted a survey of its member companies to determine industry tyre usage (Figure 1). While the results show a much larger number of non-oversize tyres than oversize tyres is used, the weight of the oversize tyres is vastly greater. Table 1: Annual tyre use by 37 sites responding to MCA survey Tyre Number used per annum Average Non-oversize 13, Oversize 7, Total 20, Table 2: Annual oversize tyre use by 37 sites Rim size (inches) Number of tyres used per annum Average < Figure 1: Estimate of current tyre use, by type +60 inch 2% inch 24% <20 inch 37% inch 6% inch 5% inch 26% 6. Financial and Economic Analysis of the Proposed Used Tyre Product Stewardship Scheme, URS, December 2005.

6 Large earthmoving tyres also differ from passenger tyres in their construction and may be made up of natural rubber (compared with synthetic rubber used in passenger tyres) with a combination of steel beads of various sizes 7. On average 30% of the total weight in a used oversize tyre is steel 8, though the proportion can be as high as 50%. Most recycling technology has been directed towards developing the market for waste passenger tyres. Passenger tyres are much smaller and typically stockpiled in urban areas close to recyclers where they benefit from access to relatively cheap transport and handling costs. However, the higher proportion of natural rubber found in large earthmoving tyres is more valuable than the synthetic rubber used in passenger tyres, offering different, niche recycling opportunities. Availability and cost of oversize tyres There is currently a shortage of oversize tyres due to the increased production on sites driven by the resources boom, which has led to a shortage of equipment and tyres. As this follows a relatively long period of oversupply of tyres, the manufacturers have not expanded their capacity over the past few years, resulting in current shortages and price increases. Rubber has reached a 17 year price high 9. The MCA survey undertaken in November/December 2005 received responses for 37 sites. Of these, two stated they are unable to source enough tyres to meet operational needs and 23 said they could source tyres but it is very difficult. For twelve sites sourcing tyres is a priority but manageable and only three sites said that sourcing tyres is routine. Currently the majority of oversize tyres are disposed of by burial on mine sites, with other end-of-life options including off-site disposal and use in safety bunds and stabilisation structures. Recently due to the current worldwide shortage of oversize tyres contractors have begun digging up old tyres for re-use 10. There is significant demand for oversize tyres for retreading and repair, which is done by several private operators in Australia as well as overseas. One company, Tyre Clean Australia, exports tyres for retreading to Indonesia, Malaysia, China and Korea, but cannot meet the current local demand. With the resources boom forecast by some to last for at least another two to four years it is probable that the sourcing of tyres for vital equipment will become more and more difficult in the short to medium term. The proposed National Waste Tyres Product Stewardship Scheme It should be noted that the development of a National Waste Tyres Product Stewardship Scheme for tyres is the subject of ongoing development at the time of writing. The final outcomes of this process may differ from the material presented in this section. Background In December 2000 a workshop of industry and government stakeholders agreed to a national approach to waste tyres that should encourage re-use and recycling of tyres 11. In 2000/2001 Environment Australia (now the Department of Environment and Heritage) funded a consultancy project A National Approach to Waste Tyres to investigate and analyse the scope and nature of the waste tyre problem in Australia and to assess policy options to address the problem. 7. Used Tyre Strategy for Western Australia, Draft for Consultation, Waste Management Board, Financial and Economic Analysis of the Proposed Used Tyre Product Stewardship Scheme, URS, December Tim Prest, Flextread International, Personal communication. 10 Vince Schepsis, Tyre Clean Australia, Personal communication. 11 Economics of Tyre Recycling, ARRB Transport Research Ltd, June 2004.

7 Following stakeholder comments on the original consultancy report, the Department of the Environment and Heritage prepared a short paper A National Approach to Waste Tyres: Analysis of Policy Options to develop three product stewardship options for tyres: a take-back scheme (where tyre manufacturers and importers take back and manage used or exhausted tyres); a levy-benefit scheme (where a levy is imposed at the point of manufacture/import or at the point of sale); and 3. a tradeable certificate scheme. Following the paper s release, the Joint Working Group on Tyres (JWGT, comprising the Australian Tyre Manufacturers Association, Australia Tyre Importers Group, Cleanaway and Renewed Rubber) approached government with the desire to develop a voluntary industry levy-benefit scheme. This concept was put to the Environment Protection and Heritage Council (EPHC) in October 2003, and a comprehensive proposal was considered in April The Department of the Environment and Heritage has been facilitating the development of the proposal through a series of roundtable meetings. These meetings bring together representatives from JWGT, Australian Tyre Recycling Association (ATRA), Australian Tyre Dealers and Retreaders Association (ATDRA), Cement Industry Federation (CIF), the Minerals Council of Australia (MCA) and the Motor Trades Association of Australia (MTAA). Structure and governance of the proposed scheme The proposed scheme will be a temporary intervention, proposed for a period of ten years, with the target date for commencement set for 1 July A review of the scheme, including a review of the rates of the levy and benefit will commence at the end of the 2nd and 5th years. Any changes recommended will take effect the end of the 3rd and 6th years. At the end of the 8th year parties will initiate a review of the effectiveness and outcomes of the scheme. By unanimous agreement of the parties and with the consent of the EPHC, the scheme may be extended for an agreed period. 12 The scheme will reward the end use of a tyre rather than a collector of tyres to ensure tyres are substantially transformed for beneficial uses, so only final end-uses of tyres will attract financial support such as benefit payments. The levy The proposed levy must be set at a level that will make the scheme viable but not push up consumer prices unreasonably. It was initially estimated that a uniform levy-benefit of $2 per EPU would be sufficient to recover 90% of used tyres across all categories. Following further analysis of the tyre industry, it has now been determined that an ARF of $0.85 per EPU 13 will be sufficient to fund the scheme, with the ARF fund only required for the first eight years and accumulated funds being sufficient to cover the remaining two years. For a large earthmover tyre (1.5 2m) this will result in an additional $85 to the cost of the tyre. This level of Advanced Recycling Fee (ARF) would support tyre recyclers by allowing a payment of a benefit of 20% of the deemed market value of a tyre derived product and a 15% benefit paid on each tonne of recovered metal. Governance A Producer Responsibility Organisation (PRO) established by the tyre industry will be run as a not-for-profit company and will be responsible for the day-to-day management and operation of the scheme. The company constitution will stipulate the range of activities in which the company can be involved, and the requirement for any profits to be held in trust to be used solely for scheme approved purposes 14. The PRO will be bound by the Tyre Product Stewardship Agreement (made between the Tyre industry and the EPHC) and fully funded from the levy raised on the sale or import of new tyres Draft End-of-Life Tyres Issues Paper, Department of the Environment and Heritage, August Financial and Economic Analysis of the Proposed Used Tyre Product Stewardship Scheme, URS, December Draft End-of-Life Tyres Issues Paper, Department of the Environment and Heritage, August Rod Clare, Department of Environment and Conservation (NSW), Personal communication.

8 A Board of Directors nominated and appointed by Industry Associations who are party to the Agreement will oversee the running of the PRO, appointing staff, receiving and making payments etc. The PRO will report under the Agreement on the overall administration of the scheme. The scheme can be changed by amending. the Agreement. The Stakeholders Forum under the Product Stewardship Agreement will be open to key stakeholders in the tyre industry; the tyre manufacturers and importers, recyclers, retreaders, tyre-derived-fuel users, mining and other specialty tyre users and governments at all levels. The Forum will resemble the currently established Tyre Roundtable. The Stakeholders Forum will need to: monitor and provide direction to both the PRO and governments on the performance of the scheme and any policy issues arising from operations of the scheme; agree to changes on the levy rate, benefit rates, approved end-uses and other funding; also agree on any amendments required to the Agreement following reviews of the scheme. Stakeholders would be invited to a general consultation meeting no less than annually to provide input on scheme performance and any policy issues arising. Scheme membership As currently envisaged, any tyre importer, manufacturer or reuser will be able to elect to join the industry scheme by advising the PRO in writing. The country of origin is not expected to be a barrier to membership. The PRO may require the payment of a reasonable fee to cover the administrative costs of new companies registering for the scheme. Any scheme member may leave the scheme after giving 28 days notice in writing. Tyre recyclers or waste to energy users will not formally become members of the PRO but will be bound by rules and conditions set by the Agreement and the PRO in order to receive benefits. It should be noted that the levy will be made against all tyre uses, irrespective of whether the company in question is a member of the PRO or not. Levy collection To support the National Waste Tyres Product Stewardship Scheme, the Federal government is proposing a levy on all tyre purchases, to be collected at their point of entry to the Australian market. The levy will be payable on an EPU basis. Imported tyres will be levied whether they are part of a consignment of tyres or on a new vehicle. A levy will not be payable on tyres retreaded in Australia, but imported retreaded tyres and used tyres imported for retreading will be levied as they will be entering the Australian market for the first time 16. Tyres being exported for re-treading will have the levy re-funded, but this will be re-applied should they re-enter the Australian market. Payment of benefits A benefit will be payable no more than once per tyre, for all PRO approved commercial end uses which substantially transform a whole tyre casing and permanently remove the tyre from the waste stream. Acceptable end-uses will be periodically reviewed to allow technical innovations to become eligible 17. The money from the levy will not be available to support research and development of new recycling/re-use options. 16 Draft End-of-Life Tyres Issues Paper, Department of the Environment and Heritage, August Draft End-of-Life Tyres Issues Paper, Department of the Environment and Heritage, August 2004.

9 Levy payments will be refunded to recyclers who export substantially transformed tyres leaving the Australian tyre market for an approved end use internationally. The onus of proof that the tyres are being appropriately reused in their destination country will rest with the exporter, i.e. initial inspections of overseas facilities by the PRO will be at the expense of the proponent. Full benefit payments for exports are not possible under the subsidies and countervailing measures agreement under the WTO. Where the destination market has a similar product stewardship scheme in operation (eg Canada) the PRO may enter into a MoU with the equivalent body in the importing country to facilitate payment of benefits on exported tyres. Where an end-user uses only a portion of a tyre above a certain threshold, payment will be made for the portion of the tyre. (or EPU) used. Prior to the receipt of the first benefit payment, a tyre reuser must agree to submit to an inspection of their facility to prove that the ultimate end use for the tyre is in accordance with approved end-uses. The reuser must also agree to provide proof of legitimate reuse or submit to a further inspection when required by the PRO. All users of tyres will need to demonstrate to the PRO that they are meeting State and Territory regulation requirements before a benefit payment can be made. This could be a demonstration of an appropriate regulatory licence. Benefit payments would be made on a differentiated scale that reflects the net resource value of the tyre-derived product and which will also generally reflect the cost of recycling or reuse of the tyre. Included in the calculation are costs such as the sorting, shredding and crumbing of tyres. The costs of collection would not be included. Approved end uses: i. ii. Remanufacture: payments will be made for the transformation of a tyre into a new product available for sale. Payment may be made either to a direct end user on proof of sale to the end user, or to an intermediate processor (e.g. a crumber or shredder) upon proof of sale and delivery to a remanufacturer for an approved end use. Waste to Energy: payments will be made where tyres are combusted as direct fuel in an industrial plant or to generate electricity. iii. Civil engineering applications: Payment will be made for some civil engineering applications where the tyre has been substantially transformed for incorporation into a permanent structure approved by a development application or an environmental impact assessment. iv. Payments for other purposes: Subject to sufficient funds being available after the distribution of all benefit entitlements and administrative costs, payments may be made for other pre-approved purposes consistent with scheme objectives, e.g. general market development, education and awareness, the benefits of which are available to all. Remote area tyres are another special category that is eligible for funding. No other payments would be permitted. Strict eligibility and conflict of interest guidelines would be developed for funding in this category. The process of selecting projects for funding would be open and transparent with reasons for decisions being publicly available. The PRO will report on discretionary payments and an allocation for this funding will be built into the levy rate. Free rider regulation Regulatory assistance has been requested by industry for the voluntary scheme to ensure fair competition. Manufacturers and importers who do not join the PRO would receive a price advantage in what they charge for new tyres. EPHC Ministers agreed to explore regulatory safety net options 18. The EPHC has developed an Industry Discussion Paper on Co-Regulatory Frameworks for Product Stewardship that provides a generic framework for product stewardship which could be applied to many different products. Schedules outlining the regulation 18 Draft End-of-Life Tyres Issues Paper, Department of the Environment and Heritage, August 2004.

10 and enforcement method will be attached to the NEPM for specific products, e.g. tyres. State governments may need to enact regulations for each schedule 19. Imports of tyres will be monitored by Customs and information supplied to the appropriate jurisdiction, which will check that the importer is a member of the scheme. Importers who are not members of the scheme will be subject to the free-rider regulation 20. Remote and rural areas The Roundtable has recognised that remote and rural areas have challenges of distance and low numbers of end-of-life tyres, and these require special consideration. Options to subsidise the transportation costs of tyres to central locations being considered include the possible use of a mobile shredding and collecting facility or projects identified by local governments such as road base or landfill applications. These options will require subsidies over the standard benefit payment and will be funded by a specific amount in the tyre levy. A phased roll-out of the collection or facilities to rural and remote areas may be built into the national scheme 21. Although payments will not generally be made to intermediate parties such as collectors and transporters to prevent stockpiling and maintain a strong focus on developing approved end-uses, special arrangements may be developed for collectors in remote areas. The URS model assumed a rebate would be paid for regional and rural collection and transport from the second year of the scheme, to bring costs down to a metropolitan equivalent 22. To date, this proposal has not been formally integrated into the scheme. Implications for the mining industry The scheme has been designed to recover passenger and light truck tyres, which are mostly easy to collect as they are replaced by tyre retailers, primarily in population centres. This is in contrast to the oversize tyres used by the mining industry which are usually replaced on site, often in very remote areas. All of the recycling and recovery options for which benefits would be paid under the scheme have been developed for passenger and light truck tyres with only a few of these options likely to become available for oversize tyres. With the exception of some civil engineering applications, there are currently no commercially proven pathways for the recycling of oversize tyres. The MCA has emphasised these significant differences in presentations to the National Waste Tyre Roundtable. Car and light truck tyres used by the industry will still be subject to the levy. The URS modelling 23 assumed a 92% recovery rate would be achieved for oversized tyres (against an average of 90% across all tyre categories) by Year 10 of the scheme, however it is unclear how they arrived at this assumption given the current constraints on recycling of oversize tyres. The report does note that the size, construction and invariably remote location make oversize tyres very expensive and difficult to handle and that alternative uses for scrap oversize tyres are currently limited. The report states that further analysis of the issues involving oversize tyres is required however oversize tyres and even those in remote locations are likely to be a significant and valuable resource if targeted to high value uses. 19 Julie Quinn, Department of the Environment and Heritage, Personal communication. 20 Michael Bissell, Department of the Environment and Heritage, Personal communication. 21 Draft End-of-Life Tyres Issues Paper, Department of the Environment and Heritage, August Financial and Economic Analysis of the Proposed Used Tyre Product Stewardship Scheme, URS, December Financial and Economic Analysis of the Proposed Used Tyre Product Stewardship Scheme, URS, December 2005.

11 3 TYRE CONSERVATION STRATEGIES Extending tyre life In recognition of the need to conserve tyres many sites have implemented programs to extend tyre life. As many heavy earthmoving tyres on sites fail due to rock cuts in treads caused by rocks on haul roads and at tips and digger faces, this can be prevented by cleaning up spills and repairing road defects promptly. Spills are also caused by poor elevation on haul road bends, carrying overflowing loads, tight turning at the digger and tips, rough access to the digger and tips and undulating ramps and roads. In response many sites are now maintaining their roads better and designing and building them to avoid spills. Ramps are graded more often to remove loose stones that can cause wear and tear on tyres. It is increasingly common to have a crew picking up spillages and there is more regular inspection of tyres 24. These practices are often complimented by tyre management and reporting programs. For example, each Roche site has a tyre life improvement plan that is reported against each month. These reports show up to 50% improvement at some sites 25. Improving road management and construction and increased repairs to tyres all have costs, but these costs can be more than offset by the savings in new tyres that can be achieved: in the order of several hundreds of thousands of dollars at some sites. Many sites are using different compound tyres to suit their site conditions when they are available. When tyres are too stiff or hard for the conditions, lugs can pull off the tyre when the truck pulls off ramps. Lower density tyres have fewer problems, though they are more easily cut so require more frequent repair. Some sites do need harder compounds. The coal mines in the south west have the harshest conditions in WA while iron ore mines can be the best, with very soft powder. Some coal mines require softer compounds because the tyres run hot on harder compounds, cooler on softer compounds and in some coal mines there is so little wear on the tread that tyres last over 12,000 hours, allowing softer compounds to be used 26. The improvements made in extending tyre life are variable from site to site, due to different conditions and different management approaches, but also as a result of the perceived urgency of conserving tyres. The main driver seems to be the tyre shortage and sites that have not directly experienced difficulty yet have commonly not instigated changes. Table 3 outlines common management practices used to extend tyre life. 24 Ron Smith, Tyre Service, Personal communication. 25 Robert Joyce, Roche Mining, Personal communication. 26 Robert Joyce, Roche Mining, Personal communication.

12 Table 3: Management practices used to extend tyre life Focus area Practice Comment Tyre maintenance Tyre pressure maintenance Pressure checks can be done in conjunction with oil checks Rotating tyres & ensuring wheels are properly aligned Frequent inspection and repair of tyres Use of different tyre compounds In conjunction with other maintenance Particularly for lower density tyres Softer compounds wear better in some conditions Spillage management Road design and layout To remove tight turns which can cause spills Speed limits & slowing at turns Load restrictions Clean-up of spills Reduces spillage Overloading leads to spills Prompt cleanup prevents tyre damage Retreading and repair of oversize tyres Until recently there was little demand for retreading as there was an oversupply of earthmover tyres, which forced down the price so that large mining companies were buying them at cost 27. The resources boom has lead to a shortage of equipment and tyres, and since the sole three manufactures of radial earthmover tyres: Goodyear, Michelin and Bridgestone have not expanded their capacity over the past few years the price of new tyres is increasing and therefore retreading is becoming more viable 28. There has been a marked change in the attitude of the industry towards retreading tyres over the last twelve months. Due to the shortage of new tyres, operators are now willing to pull tyres out of service earlier, while the casing is still in good condition for retreading. There is significant demand for OTR tyres for retreading and repair, which is done by several private operators in Australia as well as overseas 29 and there is interest in increasing this export of oversize tyres for processing overseas 30. Figure 2: Company or site policy on the use of It is possible to recap a tyre twice, and should even be possible to get retreaded oversize tyres three retreads 31. Retreading produces buffings, which are sold to recyclers Unsure as an input to their process. 14% A retread costs around 70% of the new tyre price so recapping is worthwhile financially, but even more importantly it can allow vehicles to stay in use in a time of tyre shortage. Yes 36% Companies in the minerals industry have a range of views about the use of retreads and some will not use them at all. The sites surveyed by the MCA were asked if they have a policy on the use of retreaded tyres. Fifteen of the 37 sites do have a policy on retreading with most of the policies addressing safety issues and restricting the use of retreads to certain situations. No 50% 27 Tim Prest, Flextread International, Personal communication 28 Further information on retreaders is at Appendix Vince Schepsis, Tyre Clean Australia, Personal communication. 30 Jonathan Youngs, Saypol, Personal communication. 31 Ron Smith, Tyre Service, Personal communication. 10

13 Of these sites at least five do use retreaded tyres at least for some vehicles, but in other cases the safety concerns have led to a ban on the use of retreads. The proportion of oversize tyres retreaded is not high however, with an average across these sites of only 4%. One site retreads 85% of its tyres but the next highest proportion was only 22.5%. Some of the difficulties encountered through the use of retreaded tyres stems from inadequate knowledge and procedures. It is critical that the TKPH (Tonnes Kilometres Per Hour) is estimated for each retreaded tyre as it can vary considerably from the value for the new tyre. Some suggest that a high level of failure of retreaded tyres is due to lack of understanding regarding this issue. The life span of the retreaded tyre also depends on its construction, for example the older technology bias ply tyres imported from China will have a much lower TKPH 32, so will need to carry less weight or the vehicle will need to travel more slowly, leading to. lower productivity. Retreaders stress that retreads are suitable in the right applications. For example there should be no problems in using retreaded tyres on loaders or dozers in any wheel position, however they should never be used as a steer tyre on haul pacs, but only on the inside position of a pair on the rear 33. After all, highway trucks have always used retreads 34. Recapped tyres are not suitable for all applications, for example long haul trucks will still need new tyres, however for slow moving vehicles, for example water carriers, retreads should be a suitable alternative to new tyres 35. Table 4: Practices to ensure safe use of retreaded tyres Practice Restrictions on types of vehicles Restrictions on tyre position Speed limits Tyre maintenance Comment Graders & light work loaders, not on large earthmovers Only on the back inside position, not as steer tyres on haul pacs. Estimate new TKPH for each retread & monitor use Monitor tyre pressure, operating temperature & inspect frequently for damage As many in the industry do not have much experience with retreaded tyres, having never had the need to use them in large numbers due to an oversupply of very cheap tyres, the MCA could add value through providing guidance documents on leading practice approaches to their safe use and management. This guidance could also cover the supply of casings to retreaders. Sites not interested in using retreaded tyres should still consider introducing a policy of selling their casings to retreaders as there is substantial money to be made from a casing in good condition if it is removed early enough, compared with the marginal benefit of running the tyre through to the steel and then having to dispose of it. Many sites still appear to operate by running tyres until they are through to the wire, by which time they can no longer be retreaded, but still have to be disposed of, usually by burial. Tyre management systems that ensure tyres are taken off for either sale to a retreader or retreading for reuse by the site have the potential to save significant amounts of money and to achieve considerable resource recovery. One example provided by Tyre Clean: Four tyres on a mine site inspected on 20 December 2005 were suitable for retreading and could have been taken off the vehicle that day. Instead they were left on the vehicle until 18 January and then removed, by which time three of the tyres had worn through to wire and had to be disposed of, one was still suitable for retreading. The material in these tyres is equivalent to 10 new car tyres. 32 Tim Prest, Flextread International, Personal communication 33 Kevin Boyle, OTR International, Personal communication. 34 Robert Joyce, Roche Mining, Personal communication. 35 Ron Smith, Tyre Service, Personal communication. 11

14 Repairing tyres The use of tyre repairs is also increasing. While it is very expensive to remove tyres for repair and transport them to a repairer and back the cost is outweighed by the need for tyres. For example the extension in tyre life from tyre repairs undertaken at one Roche site was equivalent to the tyres used on one truck for nine months 36. Roche Mining spent approximately $0.5 million on tyre repairs last year. There is a large number of repaired tyres coming in from overseas, particularly from Asia. Roche uses three main repairers in Australia: Tip Top Mackay, TyreTech WA and State-wide NSW. Some tyres are also sent to Bridgestone in Melbourne 37. Tyre repairs are never done on site; but are sent to a specialist repairer 38. For those sites responding to the survey, repairing tyres is a much more common practice than retreading. An average of 31% of oversize tyres on sites is repaired as compared with only 4% being retreaded. Nine sites repair over 70% of tyres while two sites claimed 100%. There does not seem to be significant concern about the safety of repaired tyres, perhaps because repairs are so common. The usual tyre maintenance procedures are used: Frequent inspection; Speed limits where required; and Maintenance of tyre inflation. There does not seem to be any use of X-ray or ultra-sound to inspect tyres within the minerals industry. It is understood that these technologies have been investigated, but found to not be commercially viable. There is an Australian standard (AS5547) for the repair and maintenance of wheels and rims which is currently being revised. The committee is now starting to explore the development of a standard for retreading and repair of oversize tyres, probably to be based on the existing standard for large on-highway tyres 39. In addition, there has been ongoing development of standards for re-treaded and recycled tyres within the European Union. In particular, in April 2006 the EU Council of Ministers agreed to a new standard for re-treaded tyres aimed at ensuring that there are consistent safety and quality control standards between new and re-treaded tyres. 36 Robert Joyce, Roche Mining, Personal communication. 37 Robert Joyce, Roche Mining, Personal communication. 38 Ron Smith, Tyre Service, Personal communication. 39 Adam Gosling, Personal communication. 12

15 4 ANALYSIS OF CURRENT DISPOSAL OPTIONS On-site burial On average, 45% of oversize tyres are currently buried on-site in pits according to the MCA survey, however another site that listed their disposal option as other backfills underground in accordance with their site Environmental Authority licence, so the proportion buried is probably higher than 45%. While some companies have developed Environmental Guidelines to manage the disposal of used tyres 40, for example requiring the surveying and recording of the site of burial of tyres, this is not required by regulation in all States. Some sites have policies prohibiting the disposal of tyres on site. At one stage there were 4,000 haul pack tyres stockpiled at the Newman mine 41. Table 5: State requirements regarding on-site disposal State/Territory NSW Northern Territory Western Australia Queensland Requirement No disposal of tyres on mine sites Tyres may be disposed of on site in an environmentally suitable manner, for example within waste rock piles* Environmental Protection Regulations 1987 state tyres may be disposed of by burial under a 500 mm layer of soil in batches separated by 100 mm of soil. Mine sites in WA have no license conditions relating to tyre disposal & there is no requirement to bury tyres separately from other inert waste EPA policy statement limits the size of stockpiles on sites & provides guidance as to acceptable disposal methods on site. Disposing of scrap tyres & other wastes on mine sites is a notifiable activity under schedule 2 of the Environment Protection Act 1994; locations of the disposal site(s) need to be recorded on the Environmental Management Register** * Financial and Economic Analysis of the Proposed Used Tyre Product Stewardship Scheme, URS, December ** Operational Policy Disposal and storage of scrap tyres at mine sites, EPA Queensland. Alternative Uses An average of 10% of tyres are used in safety bunds on site, with one site using 89% of its oversize tyres for this purpose. Another 3% of tyres are used for stabilisation, for example of mine walls and roadsides, with one site using 50% of its tyres for this purpose. Tyres can also be used in rehabilitation. 40 Mark Edebone, Iluka Resources, Personal communication. 41 Trevor Hale, BHP Billiton Iron Ore, Personal communication. 13

16 The MCA survey of tyre usage in the minerals industry also identified that: On average, 25% of the oversize tyres used by the sites responding to the MCA survey are disposed of off-site: Nine of the sites surveyed dispose of % of their tyres off-site; 25 sites do not dispose of any tyres off-site; and At least one site stockpiles oversize tyres for offsite disposal. One site uses 10% of its used tyres for temporary demarcation: OTR Tyre Repairs and Sales is the largest collector of truck and earthmoving tyres in WA. They dispose of a 7 tonne truckload of tyres daily to the JW Cross and Sons landfill in Australind 42. Rod Howe (Circle Track Productions) at the Northam Speedway (WA) is licensed as an inert landfill to receive tyres. Some of the tyres are used to build embankments for the Speedway but most are buried. The site receives of the very large haul pack tyres per month from mine sites. The companies pay $200 $400/tyre for disposal at the site 43. Table 6: Summary of current treatments of used oversize tyres by companies responding to the MCA survey Treatment Average Range Proportion repaired Proportion retreaded On-site pit disposal Used in bunds Used for stabilisation Disposed off-site Other Figure 3: Current and future disposal options for oversize tyres Other 15% Pit 46% Note: The chart (left) relates to current and expected future disposal assuming a continuation of existing practices. It should be noted that these results are estimated values only, and do not represent a comprehensive catalogue of current and planned tyre disposal. Offsite 26% Stabilisation 3% Bunds 10% 42 Vic Cross, JW Cross & Sons, Personal communication. 43 Mike Allen, Department of Environment, Personal communication. 14

17 5 OPTIONS FOR RE-USE AND RECYCLING It should be noted that the end-use options presented in this section represent an analysis of the options available at the time of writing, with selected examples of specific end-uses. While every effort has been made to provide a comprehensive discussion of end use options for waste tyres, there may be additional technologies and products available that have not been covered in this report. Use of End-of-Life Tyres A report prepared for the Joint Working Group on Tyres 44 identified three broad target segments for used tyres: Civil engineering applications. This segment includes a broad range of end uses such as retaining walls, artificial reefs, embankments, fills and geotechnical uses such as drainage and pipes and as a stemming agent. Waste to energy as tyre derived fuel. This segment includes the cement industry where waste tyres are used as an alternative kiln fuel. There is considerable interest in a range of alternative fuels. Waste tyre reprocessing into recovered rubber. This segment includes a number of target applications that use recovered rubber as an input including: road pavements as rubber modified binders; other applications for recovered rubber including manufacture of new tyres, moulded products that typically are high volume and low technology, such as mats, domestic products (flooring, carpet underlay, etc), and manufactured products such as athletic surfaces, acoustic floors, and playground surfaces. use of crumbed rubber as a stemming agent for explosives The market analysis suggested growth in the use of waste tyres for civil construction, recovered rubber, tyre derived fuel and new technologies, that could open up new end-uses in the future. The various options were examined and assessed for their potential in managing waste oversize tyres for the minerals industry. 1. Civil engineering applications Used tyres are being utilised in a range of segments of the construction industry for applications such as retaining walls, wall building blocks, rapid formwork or void filler, pavements and access roads and erosion control. A company known as WAESCO Pty Ltd was established in Western Australia in 2003 with the aim of using baled used tyres encased in concrete for the construction of houses and retaining walls and as a floor base for piggeries 45 etc. The company imported a mobile baler and collected a large quantity of tyres before becoming insolvent. The tyres were mostly disposed of to landfill Economics of Tyre Recycling, ARRB Transport Research Ltd, June Economics of Tyre Recycling, ARRB Transport Research Ltd, June Peter Bertei, S.T.E.G., Personal communication. 15

18 Ecoflex Australia 47 provides a range of patented engineering systems for civil construction. These systems are based on the use of the structural strength of recycled car, truck and mines tyres. The Ecoflex recycling system causes waste tyres to be graded and quality controlled for the purpose of creating a structural unit an Ecoflex Unit. The structural integrity of the tyre is preserved, but one side wall is removed so that it can function as a container, that can be easily filled with crushed rock or gravel to form a structural unit. These units can be combined in various cellular arrangements and designed to perform basic engineering functions as a building block or a containment device. Ecoflex Units are used to create retaining walls, dam and pond embankments, sea walls, drainage channels, roads in poor ground and erosion control systems 48. Mine tyres have engineering value as a structural device because of their mass and strength. They are virtually indestructible. The potential demand for the structural value provided by mine tyres is far greater than could be met by the annual flow of mine tyres 49. A company called Biofloat makes evaporation pontoons, for use by cotton growers and Industrial Recyclers use tyres for the underground distribution/retention of on-farm water 50. The use of oversize tyres in civil engineering applications appears to be an established technology which could be a major avenue for management of these tyres. There are however barriers related to the collection and storage of the large numbers of tyres required for projects. For example one proposed mine site project currently in the planning stage will require approximately 100,000 truck tyres and 1,000 oversize tyres. All States have restrictions on the numbers of tyres that may be stockpiled above ground due to the associated risks from fire and vermin. Western Australia is currently examining these restrictions for passenger and truck tyres in order to assist recovery and recycling. 2. Waste to energy as tyre derived fuel Tyre derived fuel (TDF) refers to the use of tyres as a fuel substitute for fossil fuels within purpose built furnaces for cement kilns, power stations, smelters or paper mills. In Australia cement kilns are the only TDF facilities in operation. Used whole or shredded/ chipped tyres are fed directly into the kiln where the cement clinker is produced. Tyres are burnt at very high temperatures so there is very little residue, however this option has the potential to release pollutants such as dioxins, and may represent a negative environmental outcome compared to burial or other resource recovery options. The viability of TDF depends on tyre availability and energy price structures in each state, which are highly variable 51. There are currently two cement kilns using tyres for fuel: the Blue Circle Southern Cement plant at Waurn Ponds in Victoria and the Cement Australia plant at Gladstone in Queensland. The Waurn Ponds plant uses 9,500 tonnes of whole (presumably passenger) tyres per year, while the Gladstone plant uses approximately 240 tonnes per year, although it could take 2,000 tonnes per year 52. The Gladstone plant cannot take whole tyres; these must be chipped first, potentially increasing the cost of this option. As is the case for most current uses of tyres the kilns are paid to take tyres, in spite of them being a valuable input to the process and a substitute for other, expensive fuel sources. Flextread International sends casings that are not suitable for retreading to Blue Circle Cement at a cost of $300/tonne 53. TDF is not the best solution to the waste tyre problem from a waste management hierarchy perspective as waste to energy is lower in the waste hierarchy than reuse or recycling, but while other emerging markets develop, it is a viable alternative that may have resource utilisation benefits over alternative options including landfill and waste incineration. However, the use of this option and its environmental impact must also consider the toxicity and volume of emissions produced from such facilities More information is provided in Appendix 1 49 Tim Edwards, Ecoflex Australia, Personal communication. 50 Economics of Tyre Recycling, ARRB Transport Research Ltd, June Economics of Tyre Recycling, ARRB Transport Research Ltd, June Financial and Economic Analysis of the Proposed Used Tyre Product Stewardship Scheme, URS, December Tim Prest, Flextread International, Personal communication. 16

19 3. Waste tyre reprocessing Shredding is typically the first step in the recovery of materials from tyres. Tyre reprocessors receive a fee to accept waste tyres from independent collectors who collect tyres from retailers and reprocess them towards different end uses 54. There are several companies in Australia recycling rubber from tyres including 55 : Sims Tyrecycle Chip Tyre, Queensland, now incorporating Steve Shakespeare s former company Rubber Recyclers Australia Reclaim Industries, WA All of these companies are members of the Australian Tyre Recyclers Association, formed to participate in the development of the national Tyre Product Stewardship Scheme 56. Sims Tyrecycle is the largest producer of crumb rubber in Australia 57, producing about 10,000 tonnes annually. Processing of recovered rubber produces a range of granule sizes depending on the target application. For example, fine rubber crumb is used in a 5% crumb mix in the manufacture of new tyres. This additive improves the air entrapment problem which arises during manufacturing. Increased use in this end market is constrained by two key factors the constraint of the proportion of (vulcanised) crumb rubber and the tyre manufacturing capacity in Australia 58. Some countries including USA and Europe have been supplying Australia with granules at a price of around $250/tonne 59. The price depends on granule size. South Africa exports the most granulated rubber into Australia. Companies in WA import tonnes of fine 30 mesh granules for grout, asphalt and render manufacture per month from overseas and interstate 60. Information on products made from granulated recycled rubber is provided at Appendix 1. In Australia, the finished product (recovered rubber) sells for $500/tonne $700/tonne depending on granule size. Depending on the destination, the transport costs may be an additional $80/tonne. Currently the market value of steel from waste tyres is around $50 $70 per tonne 61, depending on the level of rubber contamination. There is currently no shredding or recycling of rubber from earthmoving tyres in Australia. The large percentage of steel in these tyres (up to 50%) and the large size makes shredding difficult 62. Several ventures, discussed in more detail in Appendix 1, are considering the establishment of plant to handle oversize tyres in Australia. The model suggested by Brambles: cutting tyres into smaller pieces on site for transport is an interesting alternative to the use of purpose-built shredders. Use of chipped tyre as an explosives stemming agent Brambles Industrial Services has been working with Orica and a major mining company in the Hunter Valley NSW over the last few years to develop the use of chipped rubber as a replacement for crushed aggregate as a stemming agent 63. The chipped rubber has been found to be better than crushed aggregate as it is less than one third the weight, creates less greenhouse gas compared with the emissions from quarrying and transporting aggregate and is much cheaper. The aggregate used to back-fill blast holes must be of high quality and typically costs $20/tonne. One project in the Hunter consumes 90,000 tonnes aggregate per year, this would be replaced by 30,000 tonnes /year of rubber chips mm in size. 54 Economics of Tyre Recycling, ARRB Transport Research Ltd, June Chris Battel, Reclaim Industries, Personal communication. 56 Peter Kreital, Australian Tyre Recyclers Association, Personal communication. 57 Financial and Economic Analysis of the Proposed Used Tyre Product Stewardship Scheme, URS, December Economics of Tyre Recycling, ARRB Transport Research Ltd, June Economics of Tyre Recycling, ARRB Transport Research Ltd, June Chris Battel, Reclaim Industries, Personal communication. 61 Financial and Economic Analysis of the Proposed Used Tyre Product Stewardship Scheme, URS, December Vince Schepsis, Tyre Clean Australia, Personal communication. 63 Rod Clare, Department of Environment and Conservation (NSW), Personal communication. 17

20 Approximately one tonne of stemming agent is consumed for every 35 tonnes of saleable coal and 273 million tonnes of saleable coal was produced in NSW and Queensland in 2002, which would have made the total stemming usage in excess of 700,000 tonnes 64. This market has the potential to take all of the used tyres available in Australia and may be a promising option. However the use of rubber chip in this application is a low-end use in terms of the waste hierarchy and under the national Scheme it would attract a lower benefit payment than the use of recycled rubber in manufactured products. There are much better end uses, which recognise the high quality rubber and the subsequent value of rubber crumb from oversize tyres. Brambles is planning to offer a package to the industry whereby they will de-bead oversize tyres on-site using a hydraulic system, cut them into quarters or eighths with a guillotine on site and then truck the pieces to a crumbing plant in Sydney. Eventually they plan to have a mobile tyre de-beader/cutter that can be moved from site to site. In return they will supply chip for stemming, made from car and light truck tyres. While there is no shredder in Australia able to handle oversize tyres, once they have been de-beaded and cut into manageable pieces they can be crumbed using plant used to crumb passenger and light truck tyres. Brambles hopes to begin commercial supply of rubber stemming agent within three to four months and will focus initially on the Hunter Valley 65. The model proposed by Brambles for cutting up oversize tyres on-site and transporting them to a crumbing plant sounds promising however it has not been trialled and is likely to be labour intensive. The model is likely to be more viable for the hubs of mining activity around Sydney (the Hunter Valley) and Brisbane than for more remote sites. Bioreactor landfill leachate management Chipped tyres can also be used for drainage in landfill engineering. Leachate collection layers are constructed at the base of. landfills using a 300 mm thick layer of river gravel, a diminishing resource. In North America shredded tyres are used in combination with gravel 66. Collex Waste Management have developed a process to use shredded waste tyres within their leachate and drainage systems within a bioreactor landfill 67. The Ti Tree bioreactor system consists of a number of cells constructed within a disused quarry site. One of the critical design parameters for an anaerobic bioreactor landfill is management of the moisture content. The leachate management system consists of a matrix of trenches that are filled with compressed shredded waste tyre material. Piping within the trenches enables the distribution of the bioactive leachate throughout the cells and makes the waste decomposition occur quicker. This application does not seem likely to use large volumes of used tyres of any type. Fuel for blasting Chipped tyres can also be used as fuel for blasting. Ammonium nitrate is used in a mixture with diesel as a blasting medium, placed in pre-drilled holes and backfilled with stemming agent. The usual ratio is 94% ammonium nitrate with 6% diesel. An alternative mixture has been developed and patented as ANRUB; replacing the diesel with granulated rubber from used tyres, which reduces the ammonium nitrate requirement to 93%. ANRUB was extensively field tested by Rio Tinto in the 1990s and has also been trialled by BHP and Anglo Coal, with trials currently planned for the USA. Given the rising price of diesel, replacing it with used rubber is very commercially attractive, and would be greatly enhanced by a reduction in the diesel fuel rebate for non-transport purposes. One site trialling the use of ANRUB demonstrated savings of 64 Financial and Economic Analysis of the Proposed Used Tyre Product Stewardship Scheme, URS, December Ken West, Brambles, Personal communication. 66 Financial and Economic Analysis of the Proposed Used Tyre Product Stewardship Scheme, URS, December

21 $220,000 per month 68. The industry could potentially save $70M per annum. However, it should also be noted that the natural rubber used predominantly in oversize mine tyres is not suitable for the ANRUB process. While the use of this technology may be taken up on sites due to the business drivers and a broader commitment to materials stewardship, this will not provide a pathway for recycling oversize mine tyres. In 2002 approximately one million tonnes of ammonium nitrate and 64,000 tonnes of diesel were used by the Australian mining industry for blasting 69. The use of ANRUB in Australian mining could absorb 50% (or 10 million) of the passenger and light truck tyres currently disposed of to landfill. New technologies There are a number of new technologies or applications that offer promise in relation to waste tyres. They include: CSIRO surface modification technology; and Devulcanisation processes (including Pyrolysis) Surface modification CSIRO has developed an enabling technology that enables recovered rubber to successfully combine with other materials such as plastics 70. For example, a composite mix can utilise 50% recovered rubber to replace plastic, offering an economic alternative to polyvinyl chloride (PVC) plastics. Recovered rubber is chemically inert and cannot be linked into other materials, so it is typically only used in lower value applications. The CSIRO process provides a chemical modification of the surface without changing the bulk properties of the rubber. The process can be tailored depending on the end product market. Such surface treated rubber may be used in a broad range of high-value applications such as shoe soles, automotive components, tyres, non-pneumatic tyres, wheels, building products (roofing materials, insulating materials, window gaskets) coatings/sealants, containers for hazardous waste, industrial products (enclosures, conveyor belts, etc.) At present, the process has not been commercialised and CSIRO is not pursuing its patents. Rubber devulcanisation Vulcanisation is a thermal process that produces a cured cross-linked chain that bonds rubber permanently using sulfur. Recovered rubber is chemically inert and cannot be used to form a product. Devulcanisation means reverting rubber from its thermoset, elastic state back into a plastic, mouldable state 71. A range of processes have been described including chemical, microwave, ultrasound and microbial devulcanisation approaches. Basically the process breaks the di-sulfide bonds in the molecular structure and enables waste rubber to be used as a rubber substitute. There are many advantages particularly enabling the use of a much higher percentage of devulcanised rubber in product manufacture than is possible using vulcanised rubber. As an example, the reuse of recovered rubber in new tyre manufacture could increase from the current limit of 5% to 10 15% (using devulcanised rubber). Pyrolysis Pyrolysis involves heating a shredded tyre in the absence of oxygen to decompose the tyre into constituent products including carbon black, oil, gas, steel and inorganic ash. Potential uses of the constituent products: Carbon black is used in a wide variety of applications including the rubber industry. Tyres contain approximately 20% carbon black and around 10,000 tonnes are used in tyre manufacturing each year. This material could be sourced from reprocessing around 25% (or 5 million tyres) of the waste tyre stream. 68 Des Kennedy, ANRUB Products and Services, Personal communication. 69 Financial and Economic Analysis of the Proposed Used Tyre Product Stewardship Scheme, URS, December A National Approach to Waste Tyres, report for Environment Australia by Atech Group,

22 Oil derived from pyrolysis is similar to diesel and can be used as a fuel. Steel derived from pyrolysis contains a range of residuals but would be consumed in a much larger recycled steel market 72. Molectra is a small operation in Queensland recently featured on the ABC New Inventors program 73. The process uses several steps: Mechanical removal of the two steel beadwires intact from the rim of the tyre; Chemical treatment of the tyre segments to soften and clean the rubber; Mechanical separation of the reinforcing steel wires and fibre cords from the rubber; Granulation of the softened rubber; and Heating of the rubber on low heat to produce 100% pure rubber or on high heat (1300 deg C) to produce carbon and oil using an industrial microwave. The low heat process produces 7.6 kg of pure crumb rubber from a 10 kg tyre or 3.9 litres of oil and 3.8 kg of carbon black per tyre using the high heat process 74. The recovered rubber can be used to manufacture a range of rubber products. The recovered carbon may be activated carbon, used for purifying industrial water, or carbon black, which has wide range of industrial applications including the generation of electricity. Unlike traditional shredding techniques, the steel is not cut and comes out clean. The inventor estimates the process recovers around $5.40 value from each tyre 75. Molectra has built a pilot plant on the Gold Coast and is planning to build a commercial facility in Sydney that is expected to process 2 million tyres per year (3 tonnes per hour), for a pay-back period of around 4 6 years 76. It is alleged that the process can handle tyres of any size, including those from earthmovers. Barriers to the recycling of oversize tyres All of the end-uses discussed are potential markets for oversized tyres providing practical methods of transporting and processing them can be developed. The URS study noted that most (60%) used oversized tyres are located in rural areas, defined as low population centres significant distances away from large population centres. This naturally reflects the locations of sites where such tyres, mostly mine tyres, are used. Mining is fairly dispersed in Australia but there are discernible hubs of activity in the Pilbara, WA, the Bowen Basin, Queensland, and in the Hunter Valley, NSW. Oversize tyres are currently transported out to sites and in the case of tyres to be retreaded they are often freighted across Australia or overseas. The cost of transport for recycling is probably currently prohibitive, though this could change with the right end use (and be temporarily feasible due to subsidies through the national scheme). Mobile shredders for oversize tyres are not likely to be practical since they are extremely heavy and require high levels of maintenance. It may be possible to identify hubs where tyres could be stockpiled or shredded before moving to a processing plant. The idea suggested by Brambles of cutting oversize tyres into manageable pieces on site and then transporting these pieces to a rubber reprocessor is one example of a technology that would benefit from regional storage hubs. 72 A National Approach to Waste Tyres, report for Environment Australia by Atech Group, A Heap of Great Returns, Ecos, Jan Mar, Tyre recycler ready for commercial rollout, Inside Waste Dec 05/Jan

23 There is also the potential for importers to voluntarily take back used oversize tyres for recycling, using back-loading of transport used to bring new tyres to sites 77 ; however this would require a shift from the current product-oriented business model to a service/ leasing model. At least one other business is considering a similar transport model to bring oversize tyres back to a major centre for recycling to crumb, so it is possible that many of the logistics issues can be overcome, at least for tyres originating in the Hunter Valley and the Bowen Basin. As stated earlier there is currently no shredder in Australia capable of handling oversized tyres, though this situation may change in the future. There is a potential issue with the very high thresholds that need to be met to make some business models viable. For example one recycling proposal would require 80,000 tonnes of rubber from oversize tyres per year to make the finishing plant producing high end granulate viable. Approximately 67,000 tyres or 63,000 tonnes of the sizes used in the minerals industry 78 are purchased on an annual basis so this proposal would require all of the replaced tyres as well as a supplement from stockpiles. The only use for oversize tyres currently available is in civil engineering applications for the construction of walls, paving etc. At least one company is actively investigating the use of oversize tyres in construction projects for mines, however the dispersed nature of the mining industry and the restrictions on stockpiling of mine tyres are significant barriers to this end-use. Table 7: Summary of options for re-use and recycling of oversize tyres Recycling/Re-use Option Currently available? Barriers Civil engineering YES, system well established for oversize & other tyres Large projects require ready supply, current guidelines prohibit stockpiling Explosive stemming agent NO Developed for passenger/truck tyres, not for oversize tyres Chip as drainage in landfill NO Not developed for oversize tyres, a very small market Tyre-derived fuel, eg cement kilns YES Low end use; kilns are not located near mines Fuel for blasting, eg ANRUB NO Developed for passenger/truck tyres, not for oversize tyres Reprocessing to crumb NO but high interest Brambles model (cutting on site prior to transport) is untested, may be labour intensive; some proposals require very large numbers of tyres for viability; transport from more remote sites an issue for all proposals Pyrolysis to basic components YES Technology still being commercialised; low end use; transport issues 77 Cormac Farrell, Minerals Council of Australia, Personal communication. 78 Financial and Economic Analysis of the Proposed Used Tyre Product Stewardship Scheme, URS, December

24 6 OUTLINE OF AN INDUSTRY-LED SCHEME FOR THE MANAGEMENT OF WASTE OVERSIZE TYRES In addition to the proposed national Product Stewardship scheme for used tyres the mining industry has its own internal drivers for the development of a stewardship scheme. In response to the Mining, Minerals and Sustainable Development (MMSD) Project 79, the International Chamber of Mining and Metals (ICMM) has developed a series of ten high-level Sustainable Development Principles underpinned by 46 elements. The Minerals Council of Australia (MCA) has developed Enduring Value 80, which is an operational framework for implementation of the ICMM Principles and replaces the former Australian Minerals Industry Code for Environmental Management. Principle 8 of Enduring Value covers product and material stewardship. Members will be required to report their business inputs and outputs including wastes and to show how they have reviewed their processes and innovated to reduce waste through cleaner production processes, recycling and the reuse of material. Principle 2 requires the integration of sustainability considerations into procurement decisions. These Principles can be used to guide the decision making processes for purchasing tyres and managing them at the end of their life-cycle in conjunction with other partners. Principle 6 requires the safe and documented storage and disposal of residual wastes and process residues. Principle 5 addresses health and safety issues and should guide the use of retreaded and repaired tyres. The storage of used tyres or their disposal on-site is likely to be an ongoing liability for companies as well as representing the wastage of resources. The industry has made successful representations to the Roundtable on Tyres that the proposed national scheme, will not be an effective means of encouraging reuse and recycling for oversize tyres, given the current lack of commercially available technology for processing oversize tyres. The Roundtable has agreed that the industry should have the opportunity to develop an alternative industry-led scheme as part of the national scheme and that oversize tyres used by the industry will be exempt from the levy for two years. This scheme will be open to any minerals company and not restricted to members of the Minerals Council of Australia. Members of the industry-led component of the national scheme will be required to meet the performance requirements of the national scheme or pay the levy. There will be no incentives or other financial assistance given to recyclers or reusers of mining tyres which must therefore be commercially viable in their own right, however it is possible that mining companies may consider assistance with start up capital if appropriate. 79 MMSD project website at

25 Individual companies and/or sites will need to achieve benchmarks being set through the Product Stewardship NEPM to maintain parity with the goal of the non-oversize tyre part of the Product Stewardship scheme. The targets for the percentages of total used tyres recycled that will be specified in the NEPM are: 20% in the first year of the scheme 60% by year five; 70% by year seven; and 90% by year nine. Practical and flexible options are required that: impose minimal costs on industry; provide flexibility in application to meet the different circumstances of different mining operations; recognise existing uses of waste tyres for civil applications (eg safety bunds); and provide equal access to operations in close proximity to communities as well as remote locations. There should also be a few options developed to protect the industry against future unpredictable changes in markets. For example there may be increased competition from imported rubber crumb or other tyre derived products 81. Reliance on any one technology may also make the industry vulnerable to rising costs. Principles to guide the management of oversize tyres Benefits payable under the National Waste Tyres Product Stewardship Scheme will most likely vary with the perceived benefits of the reuse/recycling technology according to the waste hierarchy. The waste hierarchy (shown below) has been widely adopted and is referred to in the objectives of the waste management legislation of each Australian State and Territory. However it must be recognised, as noted in the draft Productivity Commission report on waste management 82, that it is a simplified way of considering the options available and that recycling rather than disposal will not always lead to the best outcome socially, environmentally and economically. Companies/sites should make decisions based on: The best outcome achievable in terms of social, environmental and economic benefits, recognising that one solution will not suit all sites; and The likely developments in the market and technology within the near future recognising tyres are a potentially valuable resource. In practice this means that a remote site might undertake a rough life cycle analysis of the transport of tyres to a recycling plant and decide it is currently too expensive in terms of greenhouse gas generation for transport (assuming no backloading opportunity exists) and perhaps too expensive economically compared with on-site storage. Being aware that the national scheme subsidy for transport and the growth in demand from recyclers might alter this A waste management hierarchy Avoidance Re-use Recycling Recovery of energy Treatment Containment Disposal 81 Financial and Economic Analysis of the Proposed Used Tyre Product Stewardship Scheme, URS, December Productivity Commission 2006, Waste Management, Draft Report, Canberra. 23

26 situation in the next few years this site might choose to stockpile tyres, perhaps in a monofill with GPS mapping so that they can be recovered in the future. Evaluation of options for oversize tyres All three of the more desirable options in the waste management hierarchy: reduce; reuse and recycle can be applied to tyres. Some sites have begun programs to extend tyre life through better management of roads, loads and tyres, and with the current worldwide shortage of rubber and tyres there is significant unmet demand for oversize tyres for retreading and repair. Similar issues apply to the recycling of conveyor belt from mine sites: there is unmet demand for used conveyor belt for reconditioning and recycling 83. The only avenues currently available for oversize tyres are in civil engineering applications and as fuel in cement kilns however there is interest in recycling materials from oversize tyres. An evaluation of the environmental, economic and social impacts of the available options and those options likely to become available shows that they may have benefits compared with simply disposing of tyres to landfill. As the NEPM requires significant levels of re-use/recycling within a relatively short time sites currently facing transport difficulties could consider on-site storage (most likely in monofill) until viable options are available. Some States, notably Queensland and Victoria, require tyres to be managed on mine sites. The additional costs to the industry of developing criteria for the on-site management of tyres would be likely to be offset by the financial benefits to be obtained by companies from increased reuse and retreading and the environment benefits realised through these practices and better managed on site disposal. Currently there is no available means of recycling oversize tyres, but the inclusion of a requirement for survey and GIS mapping of disposal sites will facilitate future recovery if this becomes feasible as well as providing better environmental management now. In the longer term, given the amount and quality of rubber and steel available in oversize tyres, strong demand may emerge for these tyres for recycling. There may be a case to be made that these tyres are in storage pending recycling. Similarly there could be formal recognition of the resource utilisation benefits of reusing tyres in bunds and stabilisation on sites. Table 8: Likely economic, social and environmental costs and benefits of alternative options for the management of mine tyres Option Economic costs/benefits Social Costs/benefits Environmental cost/benefits Extending tyre life Large benefit to sites - Benefit through better stewardship of resource Retreading & Repair Large benefit to sites Improved certainty regarding safety required Benefit through better stewardship of resource On-site storage to allow future recovery Potential benefit in future Potential benefit in future Improved environmental outcome when tyres are recovered for recycling. Immediate benefit through waste separation. Use in construction,. e.g. bunds, Ecoflex Significant benefits to sites Significant benefit in terms of employment Significant benefits in reuse of resource, replacement of virgin materials, greenhouse gas savings Recycling for rubber crumb for manufactured products, roads etc Large economic benefits Significant social benefits from end use products If transport can be achieved via back loading, significant benefits in terms of high end use of resource Tyre derived fuel. (kilns etc) Some savings for kiln operators Replacement of other fuel sources but possible community health impact. Not the highest end use for valuable resource. Increased emissions of known toxins (eg dioxins) not released by most other disposal or re-use options. 83 See Appendix 1. 24

27 In terms of potential partnerships between individual companies and end-use service providers, the model proposed by Brambles also has promise, with no need for a shredder to handle oversize tyres as the tyres would be transported in cut pieces as backloads in return for rubber chip for stemming. There is potential for the use of the Ecoflex technology with oversize tyres to construct roads in areas subject to flooding on some mine sites, particularly in northern Australia, which may provide a case study and model for others in the industry. The MCA can assist in the development of these options through: Ensuring that minerals companies are aware of the available options for re-use of waste tyres; Promoting and encouraging the recycling and re-use of oversized tyres in the context of materials stewardship; and Identifying regulatory barriers to recycling and re-use (such as limits on tyre stockpiles) and working with governments to address these.. The use of recycled passenger tyres in ANRUB is unlikely to assist in the reuse or recycling of oversized tyres but is likely to benefit the industry, society and the environment, particularly from a reduced reliance on diesel fuel on mine sites. As a result, it may be desirable for the MCA to encourage the up-take of this technology within the minerals industry, as a part of a broader commitment to materials stewardship. Conveyor belt Similarly, there is demand for used conveyor belt and financial rewards for companies to reuse and recycle their belt. A requirement for a management system to ensure the correct management and disposal of conveyor belt on mine sites would prevent the wastage of this resource. There is potential for MCA members to facilitate the development of plans for the management of conveyor belts including consideration of reconditioning and consignment for reuse/recycling and requirements for the recording of disposal sites. The additional costs involved for industry in developing management plans will be more than offset by the potential savings in the purchase of new conveyor belts as demonstrated by the experience of BHP Billiton Iron Ore 84. Recommended principles for MCA engagement The following principles should guide the MCA when developing an industry-led approach to the management of waste oversize tyres. Any scheme for the management of oversize tyres in the Australian minerals industry should seek to ensure that: opportunities for re-use and recycling are maximised, taking into account the full costs and benefits (economic, social and environmental) of the available options; adequate guidance is provided to companies to ensure that tyres are used efficiently, with particular emphasis on disseminating leading practice approaches to tyre conservation techniques; adequate guidance is provided to companies on the safety and health aspects of tyres, with particular emphasis on disseminating leading practice approaches to the safe handling and use of re-treaded tyres; regulatory impediments to the recycling and re-use of tyres (such as restrictions on stockpiling) are identified and resolved wherever possible; wherever practicable, arrangements are developed in partnership with other actors in the tyre value chain; and the choice of management technique is market-based, and not constrained or directed by any subsidies or artificial impediments. The solutions adopted are cost-effective, practicable and utilise the best available technologies. 84 See Appendix 1 25

28 APPENDIX 1 SUPPLEMENTARY INFORMATION ON OPTIONS FOR USED TYRES Special Note Much of this information has been provided by the companies involved and is provided for the information of the MCA and its member companies who should make their own assessment of the services. While all reasonable attempts have been made to include a comprehensive discussion of the available re-use and recycling options for oversize tyres, the information presented here and elsewhere in this report may not represent all of the available options. Retreading Flextread International has the largest retreading facility for oversize tyres in Australia, located in Mosman, New South Wales. This facility has recently been upgraded so that it can retread 57 tyres, which formerly had to be sent overseas as there was no capacity in Australia 85. Roche is currently retreading several hundred tyres a year 86 through Flextread. Some sites are however simply too rough on the casings to allow retreading. Other retreaders include: Tyre Lug, Victoria (able to retread up to 45 ); Specialised Tyres, South Australia; and Bigtyre/ Relug & Tread, Toowoomba, Queensland (able to retread to 49 ). Flextread International goes onto sites to inspect tyres and choose those that are suitable for retreading. As they work closely with their clients they have a good knowledge of the history of the tyre and are able to have tyres taken off before they reach 20% of tread remaining, so that the retread is comparable to that of a new tyre. Flextread International regularly transports oversize tyres for retreading from the Pilbara to Mosman in NSW. The cost of transporting a truckload of tyres from Brisbane to Mosman is $1200 (for 12 Triple 7 tyres) 87. OTR International has developed a new method of retreading in partnership with several other companies, including an Asian partner 88. Tyres will be exported to Asia for rereading and then returned. The new method will improve the life and the safety of retreads as it uses a cold process which provides an improved hold of the retread on the tyre casing and will perform better in the hot conditions frequently encountered in Australian mining, for example pit temperatures of 55 o C. 85 Tim Prest, Flextread International, Personal communication. 86 Robert Joyce, Roche Mining, Personal communication. 87 Tim Prest, Flextread International, Personal communication. 88 Kevin Boyle, OTR International, Personal communication. 26

29 At least one Australian minerals company has been working with OTR International and is willing to trial the new retreads when they are returned to Australia. In anticipation of recapping becoming available in WA in the near future sites have begun putting tyres aside. It is expected that the new factory, to open within two years, will employ 90 people in Perth. The business (OTR and Tyre Service partnership) will train sites to manage casings so there is a better chance of successfully recapping 89. Australian companies which source tyres for retreading within Australia and export them for retreading to Asia cannot meet the current local demand for retreaded oversize tyres. Tyre Clean has developed a Tyre Audit Recycling System (TARS), which splits tyres into four categories ranging from suitable for reuse through to unsalvageable, with a category for warranty claim. This is basically an on-site system to promote better management of tyres. The information can then be sent to Tyre Clean for entering into a Global Tyre Information (GTI) website which allows clients to search for tyres. On the sites serviced by Tyre Clean Australia recovery of used tyres for retreading is reaching 40%. Tyre Clean Australia is also keen to promote better management of tyres through better maintenance of roads and tyres and slower travelling speeds. The mining industry generally considers that the costs of transport of such tyres is prohibitive but given the value of individual tyres (for example over $24,000 each) transport costs are a relatively minor component. Tyre Clean uses back loading where possible but also freights tyres from sites to retreaders. Since January 2005 average monthly loads have been around 150 tonnes. Civil engineering: Ecoflex Ecoflex applications are certified engineering systems that meet the relevant Australian Standards and have been used in the construction of over 450 projects. All projects using Ecoflex products and engineering systems are required to be engineer designed and Development Application approved. The Ecoflex technology has been used by five major sectors: Civil Construction: retaining walls, sealed and unsealed roads and hard stands, drainage and erosion control Commercial Construction: site preparation, concrete slabs and pavements Mining: underground roads and retaining walls Waste Management Centre development Agriculture & Aquaculture: dams, ponds, creek crossings, access roads, wave barriers Commercial products produced by Ecoflex and their use E-Wall E-Pave E-Pod E-Rosion Retaining walls & drop structures Dams & ponds Waterways erosion control Unsealed roads & hardstands Sealed roads & pavements Sporting fields Concrete slabs for residential construction Embankment stabilisation Trickle filtration systems 89 Ron Smith, Tyre Service, Personal communication. 27

30 Ecoflex Australia has shown that their systems are able to deliver a cost advantage compared with conventional construction methods. Ecoflex engineering systems are claimed to offer cost savings typically in excess of 20% versus conventional construction solutions. This competitive advantage is driven by the use of low cost recycled raw materials but also reflects the labour savings and construction time savings of the engineering systems. The system offers significant environmental benefits, enabling recycled waste tyres and recycled aggregate to be used for high value purposes rather than disposed of via landfill. Use of Ecoflex products delivers greenhouse gas savings by replacing energy intensive virgin materials with low energy, recycled materials. The technology can make a major contribution to construction project waste reduction, can be reused and eliminates waste. Ecoflex products are certified by Good Environmental Choice Australia. Ecoflex technology involves a lower level of technology investment compared to other levels of investment for tyre reprocessing, which could assist the development of solutions to waste tyres in regional areas, and encourage local civil construction activity. These projects include the construction of an E-Rosion control system at Newstan Mine for Centenniel Coal. The mine precinct involves extensive water flows reflecting natural drainage and both fresh water and leachate pond areas. The natural water course zones are steep requiring a scour protection solution and the incorporation of scour protection with culvert and head wall structures. Mine management wanted to ensure containment of fresh water flows from leachate pond water and the converse and to minimise erosion in the natural water course areas. The Parsons Brinkerhoff design called for over 3000 square meters of scour protection using Ecoflex E-Rosion Control products. Key considerations included: Cost Maintenance Speed of construction Durability Aesthetics The E-Rosion Control system use Ecoflex units as containment devices for free draining rock. These units are laid in cellular formation than encapsulated in a wire mesh. The mass and structural strength of the system delivers high performance erosion control. Ecoflex has undertaken many projects on mine sites including 90. Powercoal-Wyee Colliery: Roadway Sub Base Replacement. Two roadway sections repaired: Section 1, 25 metres long x 5 metres wide using double layer installation (150 T-Units); Section 2, 15 metres long x 5 metres wide using single layer installation (100 T-Units). Following installation, with roadway sections traversed 300 times by loaded tramcars, each of 35 tonnes, there was minimal deviation (20 mm) in the repaired roadway section. Project completed cost $7, plus infill material supplied by colliery, a saving of $22,000 compared with concrete rectification. Colrok/Thyssen Joint Venture, Southland Colliery: Conveyor Drivehead Slab Installation: Constructed a "slab" 40 metres long x 5 metres wide to support 45 tonne conveyor system drivehead installation, using 370 T-Units infilled with in-mine material. Installation was completed within 1 shift (8 hours) by 3 men at a cost of $7, compared with a previous concrete installation costing $48, and three days for concrete curing

31 BHP Coal Illawarra, Elouera Colliery: Roadway Sub Base Replacement: Replacement of roadway sub base using 580 T Units installed in 3 roadway sections and 2 intersections. Project completed cost $18,600 compared with previous concrete installations which cost $40,200 in time and materials and three days per roadway section for concrete curing. Wambo Coal Corporation, Homestead Colliery: Dam Wall: Construction of underground dam wall 900 mm in height x 5.5 metres in width. Construction successfully completed by two men in one shift at a cost of $6, The colliery saved $23, compared to concrete block wall with concrete infill. Another Ecoflex project was documented as a case study by the Cooperative Research Centre (CRC) for Construction Innovation 91. The NSW Department of Environment and Conservation also prepared a case study highlighting the success of this project. Energy Australia commissioned the Tomago all-weather access road as part of a larger project to upgrade the energy supply from Tomago to the Tomaree Peninsula in NSW. The project required a 16 km stretch of pavement that: needed no excavation, compaction or levelling of the ground in order to avoid exposure of acid sulphate soils, disturbance of heritage sites, flora and fauna, and impact on private land; created a load bearing capacity of 60 tonnes for crane traffic during construction of an electricity transmission line; was permanent and required little maintenance; had a low profile to preserve visual amenity; and was water permeable vertically and horizontally to minimise impact on the ecosystem. The open tender selection process resulted in the contract being awarded to a team using the Ecoflex E-Pave engineering system where Ecoflex Units (recycled tyres) provide a reinforced pavement design. The project saved 15% in cost as compared to the conventional macadam design (layers of broken stone compacted into a hard surface) and used 6% of NSW annual waste tyre stream (2% of the national stream) or 75,000 truck tyres, worth $400,000 in landfill costs. There were also considerable environmental benefits because the recycled tyre approach required 60% less fill material than a conventional pavement, saving on fuel consumption to mine and transport fill, a saving of 2,110 tonnes of greenhouse gases. Reprocessing to crumb John Rossi (AustralAsian Rubber) is planning to import European equipment to establish a plant to handle oversize tyres in Brisbane 92. One option may be to install shredders in the Hunter Valley and at Julia Creek. The maximum size tyres these shredders can handle is 2.4 metres in diameter, however if the tyres are peeled the shredders can handle tyres to 3.5 metres in diameter. Two machines would be needed at each of two sites to process 40,000 metric tonnes per year in order to obtain the 80,000 metric tonnes needed to make the finishing plant viable. The cost for these four machines will be about 4 million plus some infrastructure costs. The plan will be to provide fine rubber powder in the µm range, which has a market value of $500 $1,000/tonne 93. The powder can then be used either as an end use product in glues and other fillers or as a raw material in a variety of applications from synthetic grass floors to car bumper bars. The company is planning to sell the powder in Australia as well as for export 94. The finishing plant will cost approximately 90 million plus infrastructure, will employ almost 300 people and is predicted to have revenue close to 300 million at current market prices John Rossi, AustralAsian Rubber, Pty Ltd., Personal communication. 93 Financial and Economic Analysis of the Proposed Used Tyre Product Stewardship Scheme, URS, December

32 The company is seeking minerals industry partners to assist with financing this project. A UK investor is currently investigating the feasibility of establishing a recycling plant to produce rubber crumb in Shepparton, which is a major transport hub. The plant would be capable of handling any size tyres but would initially focus on passenger and truck tyres. The plant would require 2.2 million EPU per year and would draw tyres from all over Victoria and from the A.C.T. 95 A major tyre repairer and retreader based in WA is considering importing machinery to shred used oversize tyres to produce crumb for different applications. Used tyres would be brought to the plant by trucks used to take new tyres to sites. Several research projects investigating possible new applications for the use of rubber crumb are underway in Perth. The business has been negotiating with the major minerals companies and plans to make announcements in the next three to four months. Manufactured products Waste tyres are used to manufacture a wide range of surfacing and roadside products 96 including footpaths, playground surfacing, safety mats (for swings, slides, etc), livestock mats used to prevent injury and stop slipping (used in dairies, processing plants, etc), pavers, wheelchair ramps, anti-fatigue matting for high traffic areas in factories, speed humps, speed cushions, rubber curbing, crash barriers, guideposts, bollard bases, regulatory signage, etc. Guideposts are made from whole tyres the sidewalls are removed and the tyre is flattened out, however the remainder of the products are made from recovered rubber. Tyre casing and tread produce different quality of recovered rubber which is used in different products. Industrial Uses Recovered rubber can be used as filler in industrial products. For example recovered rubber is used in the manufacture of carpet underlay. The rubber is used as cheap filler that provides bulk and weight. Recovered rubber can also be used to produce industrial adhesives. Surfacing is a major business stream for recovered rubber. Surfacing includes playgrounds, footpaths and flooring for stables. An estimated 35 surfacing companies operate Australia-wide (6 in Victoria, 15 in NSW, 7 in Queensland, 1 in Tasmania, 2 in South Australia and 4 in Western Australia). Moulded products is another important business stream manufacturing mats, pavers, speed humps and cushions, crash barriers, etc. These manufactured products are made from more than 90% recovered rubber, with added binder and colour pigment if required. Reclaim Industries is a WA based publicly listed company recovering rubber, steel and other by-products from truck and bus tyres. Reclaim Industries is currently processing approximately 48,000 truck tyres per annum 97. The rubber crumb produced in Perth is sent to their manufacturing facilities in Adelaide, Melbourne, Sydney, Brisbane and Mackay as well as being used in Perth. Reclaim Industries also supplies raw product to other manufacturers of rubber products. Each year the WA plant sends approximately 2,500 tonnes of product interstate. They use back loading rates for both road and rail. This rubber is primarily used for playground and sports pavements and for traffic calming products such as flexible guide posts, speed bumps and car stoppers 98,99. This market is worth $ million per year, and is growing at a rate of 30% per year 100. Each playground uses tonnes of rubber for an average size of 200 m 2. Rubber mulch is another flooring product, being produced in Australia by Rubberilliant, a company that buffs solid rubber tyres (mainly forklift tyres) into coarse mulch for use in landscaping and sporting/equestrian surfaces 101. Rubberilliant processes 500 tonnes of tyres per annum with the entire product being exported to the US. 95 Rod Brown, Australian Project Developments, Personal communication. 96 Economics of Tyre Recycling, ARRB Transport Research Ltd, June Chris Battel, Reclaim Industries, Personal communication. 98 Technical Report: Management of Used Tyres in Western Australia, TJ Waters Environmental Tim Francis, Reclaim Industries, Personal communication. 101 Financial and Economic Analysis of the Proposed Used Tyre Product Stewardship Scheme, URS, December

33 There is also a very big market for finer grades of crumb for adhesives, grout and render manufacture. Car tyres are more easily ground to the smaller granule sizes. Reclaim Industries sells tonnes of 30 mesh grade for grout per month 102. The use of rubber crumb in adhesives is uniquely Australian but interest in heir use is now spreading to the US and Europe due to the advantages this product offers including double the surface coverage, however there are also problems with poor bonding into the adhesive matrix. A potentially large market for very fine crumbed rubber is as a replacement for PVC in elastomers used particularly in the car injection modelling industry. 103 Demand from overseas markets for crumbed rubber is also high as there is a global shortage of rubber and the crumb manufactured overseas is not always of the required quality specification. One of Reclaim s competitors, Sims Tyrecycle has large orders for overseas 104. Road surfacing Recovered rubber crumb can be used in two road surfacing applications: As a spray seal; and As an input to asphalt as a binder or an aggregate substitute. The most common use is as a pavement surface treatment consisting of a sprayed film of bituminous binder covered with aggregates. The use of recovered rubber is now a standard practice that delivers reliable performance in terms of addressing the characteristics of pavement fatigue including the loss of stone and the onset of cracking. In general the use of Crumb Rubber Modified binder (CRM) is targeted at pavements under distress (i.e. cracked and near end of life). The CRM maintenance technique can give added surface life 105. Crumb Rubber Modified Binder is formed by dispersing scrap rubber particles in bitumen. The particles are partially digested and partially swollen by the adsorption of bitumen oils. CRM is a competitor to Styrene Butadiene Styrene (SBS) which is used in Polymer Modified Binder. SBS is not particularly stable and can degrade if there are large haulage distances and time delays involved. CRM binder does not suffer from this disadvantage. Polymers are also much more expensive than crumbed rubber 106. A CRM specification requires a maximum metal content (since this can be detrimental to the spraying operation), and a specific particle size. CRM can be premanufactured for transport to the paving location or prepared at the site and generally contains at least 20% recovered rubber by mass 107. Around 1.6 tonne of recovered rubber are required for each lane-km constructed using a spray seal, so the usage of 300 tonnes of crumb rubber per annum (Table 9, below) is equivalent to around 90 km (or 45 lane-km) of spray sealed road. Table 9: Usage of recovered rubber in pavements 108 VicRoads tonnes pa VicRoads use 30 mesh RTA tonnes pa RTA use 16 mesh (larger than 30 mesh) Around 300 car tyres are required to produce a tonne of crumbed rubber. A typical (light) truck tyre has a weight of around 45 kg and a higher rubber content of around 70%. A used truck tyre therefore is able to source around 24 kg of rubber (equivalent to 102 Chris Battel, Reclaim Industries, Personal communication. 103 Financial and Economic Analysis of the Proposed Used Tyre Product Stewardship Scheme, URS, December Chris Battel, Reclaim Industries, Personal communication. 105 Economics of Tyre Recycling, ARRB Transport Research Ltd, June Meda Sicoe, Pioneer Road Services, Personal communication. 107 Economics of Tyre Recycling, ARRB Transport Research Ltd, June Economics of Tyre Recycling, ARRB Transport Research Ltd, June

34 around 6 kg per EPU). Therefore, around 180 EPU will be required to produce 1 tonne of crumb rubber. In practice crumbed rubber is usually made from a mixture of truck and passenger tyres giving an average estimate of 240 EPU per tonne of crumbed rubber. Using the estimate of 240 EPUs per tonne of crumb rubber, the VicRoads usage of 300 tonnes is equivalent to 72,000 EPU. Using a similar factor, the RTA usage is equivalent to around 120,000 EPU per annum. Assuming the total usage in other states is around 50,000 EPUs per annum, the total market size is estimated at 240,000 EPU per annum. Figures for 2004 used by URS 109 show an increase in the use of crumbed rubber for road applications in both NSW and Victoria. South Australia, Queensland, Tasmania and the territories are not using crumbed rubber and Main Roads WA uses only about 15 tonnes per annum of crumbed rubber (approx one-tenth of that used previously), replacing it with polymers 110. Other issues cited by Main Roads include: Problems with consistency of supply; Noxious fumes during the blending with bitumen at C; and The need to clean trucks immediately after spraying to prevent blockages 111. Main Roads contracts are now performance based rather than technical specification contracts and they have been in place for 5 to 7 years of their 10 year terms. Interestingly the editorial for the Proceedings of a Conference held in the USA in 2000 nominated the move to performance based specifications for binders and mixes for roads as making it easier for highway agencies to adopt asphalt rubber 112. The use of crumb rubber asphalt is relatively uncommon in Australia. In NSW the RTA and Resource NSW have prepared a business plan to commercialise scrap rubber asphalt 113. Scrap rubber asphalt is a technically proven technology that is particularly suitable for use in overlaying fatigue/cracked pavements. Rubberised asphalt is widely used overseas as a traffic noise mitigation measure 114. The Business Plan includes the development of an industry standard Code of Practice including best practice guidelines for the manufacture, handling and use of scrap rubber asphalt. Following on from this, modifications to the RTA asphalt specifications will be undertaken to allow for the use of scrap rubber asphalt. There are additional costs relating to the use of scrap rubber in asphalt mixes. These have been estimated at around $25 per tonne of asphalt mix. This is equivalent to around $25 per 50 kg scrap rubber (calculated at a 5% mix), or around $5 per EPU. A key outcome of the Plan is the diversion of scrap rubber tyres from landfill. The Plan proposes a set of RTA targets for the annual use of scrap rubber in asphalt and sprayed seals. The potential market is about 10,000 tonnes crumbed rubber/year which would equate to 2.4 million EPU 115. Pioneer Road Services has recently undertaken trials with the City of Canning (WA) using 3% crumbed rubber in asphalt 116. The trial will use approximately 150 tonnes of rubber on half of a street, the other half to be the control. A new machine designed to absorb fumes during the on-site production process will be used to protect workers. The aim of the trial is to demonstrate the superior performance of crumbed rubber in preventing cracking and rutting and its safe use to encourage promotion by the Department of Environment and use by other Councils in Perth. 109 Financial and Economic Analysis of the Proposed Used Tyre Product Stewardship Scheme, URS, December Technical Report: Management of Used Tyres in Western Australia, TJ Waters Environmental 2003, (R. Kealy, Main Roads WA, Pers. Comm.) 111 Garnet Gregory, Main Roads WA, Personal communication. 112 Proceedings of the Asphalt Rubber 2000 Conference, November, Used Tyre Recycling Industry Triple Bottom Line Analysis, Sustainable Strategic Solutions Report to Department of Environment WA July Report on the Status of Rubberized Asphalt: Traffic Noise Reduction in Sacramento County, Theron Roschen, pp , Proceedings of the Asphalt Rubber 2000 Conference, November, Rod Clare, Department of Environment and Conservation (NSW), Personal communication. 116 Meda Sicoe, Pioneer Road Services, Personal communication. 32

35 Table 10: Current and potential size of end-markets for tyre-derived products 117 End use Tyre derived product input Current used tyre inputs Potential used tyre inputs Civil Engineering Retaining walls, foundations, paving & erosion control. Whole tyres 1,400 tonnes 174,000 used EPU 40,000 tonnes 5 million used EPU Stemming Granulate (1 mm 29 mm) O tonnes (trials only) 55,000 tonnes 9.4 million used EPU Landfill engineering Tyre chip (30 mm 299 mm), Granulate (1 mm 29 mm) O tonnes (trials only) unknown Energy Tyre derived fuel Whole tyres, 9,740 tonnes 70,000 tonnes Cut tyres (300 mm+) 1.2 million used EPU 8.8 million used EPU Tyre chip (30 mm 299 mm) Blasting material Buffing (1 mm 29 mm) O tonnes (trials only) 74,000 tonnes 12.6 million used EPU Rubber & Material Recovery Road surfacing Crumb (powder). (0 micron 0.9 mm) 915 tonnes 160,125 used EPU 90,000 tonnes 15.8 million used EPU Flooring & mats Granulate (1 mm 29 mm), 10,850 tonnes 15,850 tonnes Crumb (powder). (0 micron 0.9 mm) 2.12 million used EPU 3.21 million used EPU Moulded products Buffing (1 mm 29 mm), Crumb (powder) (0 micron 0.9 mm) 10,000 tonnes 2.2 million used EPU 13,000 tonnes 4.3 million used EPU Adhesives Crumb (powder). (0 micron 0.9 mm) 6,000 tonnes 1.1 million used EPU 10,000 tonnes 1.8 million used EPU Steel unknown unknown Conveyor belt Conveyor belt will not be covered under the proposed National Scheme and was not included in the brief for this study; however it is a significant source of used rubber and steel from the minerals industry, mainly in WA. BHP Billiton and Rio Tinto together would use 80% of the conveyor belt in WA, in roughly equal quantities. BHP Billiton Iron Ore uses 10,000 linear metres per year 118. It is very difficult to quantify the weight used due to varying specifications. For example, BHP Billiton Iron Ore uses 12 different specifications ranging from 10 kg/linear metre to 120 kg/linear metre. They vary in width from 600 mm to 2400 mm and are of two 117 Adapted from Financial and Economic Analysis of the Proposed Used Tyre Product Stewardship Scheme, URS, December Trevor Hale, BHP Billiton Iron Ore, Personal communication. 33

36 main types: fabric or steel carcase belt. The belt is purchased from Australian distributors or factories, supplied by six manufacturers, all overseas except for Apex Fenner and Goodyear, both in Victoria. BHP Billiton Iron Ore has a waste disposal contract for conveyor belts with Nilos Australia, based in Jandakot 119. Nilos Australia, established five years ago to take advantage of the very large quantities of belt used in the Australian minerals industry, is an offshoot of the German company. Nilos collects the used conveyor belt on site and transports it to Perth in loads of tonnes at a time. Nilos keeps a register of the incoming belt as part of the contract. Nilos sort the belt into three categories: Scrap badly damaged belt, shredded or worn out: disposed to landfill Recyclable belt that can be reused by on selling for mud flaps, lining truck trays, covering concrete on stable floors, lining water troughs etc Reconditioning belt is reconditioned and reused only once, though in Germany belt is reconditioned up to five times. The worn section (usually in the middle) is cut out and new rubber laid in the tracks, and then revulcanised. The cost is approximately 80% of the cost of a new belt. Some rubber buffings from the reconditioning process and some scrap are crumbed for sale in asphalt/bitumen; some is used for playground surfacing. Not only is there an environmental cost in inappropriate disposal of conveyor belts in terms of wasted resources, disposing of damaged belts and normal worn belts equate to millions of wasted dollars in capital expenditure each year. The steelcord carcass of every steelcord belt accounts for 50 60% of the belt value, depending on the tensile strength rating and rubber cover thickness of each individual belt. Therefore on average $200 $250 of each worn belt metre is dumped or discarded sometimes as early as 6 months after installation or 25% of its useful life. In many cases operational problems or accidents are the cause 120. Conveyor belt condition monitoring and dedicated maintenance create long belt life and are the basis for reconditioning. BHP Billiton is saving $300,000 year in belt costs, as well as reducing environmental impacts and cutting waste disposal costs. The previous cost of disposing of the belt was estimated by BHP at $120/tonne ($60,000/year for the Nelson Point site). BHP Billiton pays the cost of transport of belt that will be reconditioned, Nilos pays to transport belt that has already been reconditioned once and is at the end of its belt life. This belt is sold to the US for use on cattle lots. Nilos estimates in excess of 15,000m of used steelcord belts are either stockpiled or land-filled annually in Western Australia alone. If each belt were re-conditioned once, this would be reduced by at least half. There are currently approximately 50 60,000 m of used steelcord belt stocked in lay down areas at mine sites and port shiploading facilities 121. Nilos has been attempting for some time to demonstrate the environmental and financial benefits of conveyor belt reconditioning and recycling to minerals companies in WA with limited success 122. There is also some localised recycling of conveyor belt. For example J&P Metals Bunbury buys used conveyor belt from Iluka Resources Capel mine. The conveyor belt is cleaned and cut at the site then sold for use on dirt access tracks by farmers 123. Most conveyor belt is still disposed of by burial on site. Other significant sources of used rubber and steel from the minerals industry include bore mills and sag mills. 119 Trevor Hale, BHP Billiton Iron Ore, Personal communication Henning Volzke, Nilos Australia, Personal communication. 123 Kim Sherry, Iluka Resources, Personal communication. 34

37 Prepared for the Minerals Council of Australia by. Dr Margaret Matthews of Sustainable Strategic Solutions No person should rely on the contents of this publication without first obtaining advice from a qualified professional person. The Minerals Council of Australia, and the authors, editors and any consultants accept no liability (including liability in negligence) and take no responsibility for any loss or damage which a user of this publication or any third party may suffer or incur as a result of reliance on this publication, and in particular for: (a) (b) (c) any errors or omissions in this publication; any inaccuracy in the information and data on which this publication is based or which is contained in this publication; any interpretations or opinions stated in, or which may be inferred from this publication. Minerals Council of Australia Walter Turnbull Building 44 Sydney Avenue FORREST Canberra ACT 2603 T: (+61) F: (+61) ACN ABN ISBN