HEAVY METAL. Recovery, Recycle, and Reuse (R 3 ) DOE Metals for DoD Applications E2S2 Conference June 14-17, 2010

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Julius Gilmore
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1 HEAVY METAL Recovery, Recycle, and Reuse (R 3 ) DOE Metals for DoD Applications E2S2 Conference June 14-17, 2010

2 DoD Needs DoD annually spends hundreds of million of dollars on specialty metals for armor and weapons systems Specialty metals include: Steel containing specified amounts of other metals (i.e., manganese, silicon, copper, aluminum, chromium, cobalt, columbium, molybdenum, nickel, titanium, tungsten, or vanadium.) (See DFARS for specific amounts) Metal alloys consisting of nickel, iron-nickel, and cobalt base alloys containing a total of other alloying metals (except iron) in excess of 10 percent Titanium and titanium alloys; and Zirconium and zirconium base alloys.

3 Specialty Metal Supply Issues In 1995, the Defense National stockpile held 90 different commodities at 85 different locations. Today, it only holds 20 commodities in 10 locations. China controls more than 90% of global production of rareearth elements, which the U.S. military uses in lasers and high-powered magnets. Worries about potential shortages of strategic materials escalated in 2007 and 2008, as commodity prices jumped and demand from emerging economies soared. The military has faced difficult challenges obtaining materials in the past. A special type of steel was needed early in the Iraq war to reinforce Humvees to protect soldiers from powerful explosives used by insurgents. The Defense Department didn't have the steel in its stockpile, and couldn't find a domestic firm to produce all it needed.

4 US Reliance on Imports is Expanding at an Accelerated Rate From USGS Mineral Commodity Summaries

5 Metal Prices Recently Skyrocketed From: An Update on Strategic & Critical Materials at the Department of Defense, Lowden, Rick, Sr. Materials Analyst OUSD(AT&L)/OD(IP), DMC 2009, December 3, 2009

6 DOE Needs Estimated 2 million tons of specialty metals in storage at various DOE facilities. DOE mandated to recover, recycle and reuse as much as possible Potential for classified items and surface contamination requires materials must be declassified and rad cleared prior to disposition Current mechanisms for dispositioning not efficient Many classified as rare earth minerals are contained in DOE metals

7 The Solution - R 3 Program A collaborative interagency program that incorporates the recycle/reuse of DOE scrap metal and equipment and provides strategic metals to DoD for our nations defense.

8 R 3 Program Purpose Assist DOE in eliminating their backlog of waste and classified materials to reduce disposal, safeguards and security operational cost Provide DoD with strategic metals and other materials to support the development and deployment of advanced combat and support systems at reduced cost Reduce dependence on foreign supplies of strategic and rare earth metals REDUCE RISK Create a self-sustaining program Create jobs

9 R 3 Program Advantages Eliminates Unknowns Inventory available materials Identify end users and their specific needs Identify logistical path of least resistance Establishes a Process Must meet requirements of DOE and DoD Must be efficient Must be accountable Must be self-sustaining

10 R 3 Program Provides Documented supply inventory (DOE) Documented needs inventory (DoD) Release of inventory (DOE) Inbound transportation (contractor) Receipt, declassification, and rad clearance (contractor) Original/altered shape or melt for ingots Outbound transportation (contractor) Receipt of processed materials (DoD)

11 Objective R 3 Program Benefits Benefit Reduces Cost Acquisition cost reduction to DoD Storage, security and disposition cost reduction to DOE Conserves energy Protects Environment Creates jobs Reduced energy use for mining, ore processing, and transportation reduced DOE energy use through application of new technology Reduced mining impacts, reduced environmental footprint Processing and recycling requires manpower new job creation potential for disabled veterans in electronics recycling and reuse

12 R 3 Program Accomplishments Initial environmental studies for permitting melters completed Inventory process established and under way Initial transfers to DoD completed 60 tons stainless steel reused 10/2009. $1M in Acquisition Savings 104 stainless steel drums reused 12/2009. More than $77K in Acquisition Savings Near term recycle projects identified 2 tons Titanium Sponge, 20 tons Tantalum, 100 tons Zirconium, 20 tons Tellurium, 10 tons Copper, > 1,000 tons of scrap metal

13 HEAVY METAL Contacts

Restriction on Acquisition of Certain Articles Containing Specialty Metals.

252.225-7009 Restriction on Acquisition of Certain Articles Containing Specialty Metals. As prescribed in 225.7003-5(a)(2), use the following clause: RESTRICTION ON ACQUISITION OF CERTAIN ARTICLES CONTAINING