Current Situation and Economic Feasibility of e-Waste Recycling in Morocco FINAL VERSION, 16.09.2011 Fabian Blaser & Mathias Schluep Swiss Federal Institute for Materials Science and Technology (Empa) St.Gallen, Switzerland Prepared for HP in the context of the cooperation Sustainable e-Waste Management between HP and GIZ Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Executive Summary On a global scale, the strong increase in consumption of electric and electronic equipment (EEE) leads to growing volumes of e-waste. This trend is boosted by the shortening lifetimes of IT equipment due to its fast technological development, too. To tackle this waste stream, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and Hewlett-Packard (HP) launched into a Public-Private Partnership that aims for a sustainable e-waste management in selected African countries, amongst others Morocco. Within the scope of this PPP, the Swiss Federal Laboratories for Materials Science and Technology (Empa) were engaged by HP to assess the current situation and the financial viability of e-waste recycling in Morocco. The present study bases on two previous studies from Rochat and Laissaoui (2008) and GIZ (2010), the latter being carried out within the framework of this PPP. It is estimated that in 2008 roughly 40’000 tons of obsolete IT equipment and consumer goods were generated in Morocco (EU-WEEE categories 3 & 4). Apparently, this volume is generated almost exclusively by domestic consumption as no evidence of imports of larger quantities of e-waste or second-hand appliances was found. Despite this considerable volume of obsolete appliances, no adequate e-waste management is in place so far. E.g. for households, no collection alternative is available. Contrary to experiences in other African countries, scavengers from the informal sector that collect waste in the streets don’t seem to focus on e-waste (door-to-door collection). For companies and authorities, few e-waste collection channels exist. Usually, the appliances are provided to recyclers primarily by tender offers or – less frequently – donations. The lack of required standards for the e-waste treatment leads to a discrimination of formal recyclers with sound operations in favour of informal stakeholders in tender offers. The interest in e-waste among stakeholders in Morocco is growing. Even though the treated volumes are small, several companies or NGOs are currently dismantling e-waste. Apart from metal refining options (e.g. Fe, Cu), no national sound solutions for downstream processing are available for most fractions generated during dismantling. However, for some special fractions national refining options are evolving, e.g. for CRT monitors. For other fractions, such as precious metals containing printed wiring boards, treatment options abroad still seems to be advantageous, as currently the global players can guarantee better environmentally compliance and maximized recovery of valuable materials and thus also better business performance. To date, no Moroccan legislation exists that tackles the e-waste management specifically. It is loosely regulated by law 28-00 that covers waste management in general. Morocco is signatory state of the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal. Within the scope of the study, an MS Excel-based model was developed to perform a sensitivity analysis of the business performance of a model dismantling facility. Results suggest that a business model which relies solely on the income generated by the intrinsic value of the treated material is feasible. However, in none of the calculated scenarios the break-even is expected to be reached below a treated volume of 500 tonnes per year. Hence an effective collection system is a precondition for a successful recycling business. A Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Cost/Benefit [in 1'000 MAD] 4.11.2010 Ø 2010 Ø 2008 Ø 2004-2008 Ø 2004 1'000 -1'000 -2'000 -3'000 -4'000 -5'000 - 500 1'000 1'500 WEEE treated [t/y] Dependency of business performance on the amount of WEEE treated at different commodity prices 2004 – 2010. The short and long term profitability of the business model depends on a multitude of parameters, which entail both opportunities and threats. Commodity prices have the strongest impact on the business performance and pose a relevant risk to the business (see figure above). Due to a different material composition of specific appliances, the appliance scope which is received by the business are financially relevant, too. While the treatment of IT equipment including CRT monitors generates a sufficient revenue with adequate volumes treated, the treatment of TVs is more likely to burden the business financially. Including reuse and refurbishment in the model calculation suggests that this supplementary activity can add financial benefits. However, to better assess opportunities and threats associated to reuse and refurbishment, the calculations should be put on a more reliable data basis. Although the model results suggest that, currently, e-waste recycling businesses in Morocco can be run by relying on the intrinsic value of the treated material only, changing conditions can pose relevant risks to the business. It is therefore concluded that sustainable recycling businesses can only grow in Morocco in combination with a comprehensive framework, which ensures: 1. that business sustainability is also guaranteed under unfavourable economic conditions, i.e. an additional flexible income stream enabled through a financing scheme needs to be established for situations where the intrinsic value of the treated material is not sufficient for a break-even; 2. that recycling businesses can grow in a level playing field; i.e. that legislation, as well as monitoring and control mechanisms favour high standard operations; 3. that market incentive are set such as high collection and recycling rates are encouraged. At the absence of a financing scheme, a level playing field and the right market incentive it is likely that recyclers will not be interested in investing into sound operations and that cherry picking activities with low environmental and social performance as well as low collection and material recovery rates will prevail the situation in Morocco. B Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Table of Content 1 Introduction ................................................................................................................. 2 1.1 2 Framework Conditions ............................................................................................... 4 2.1 2.2 2.3 2.4 3 6 Outline of Relevant Elements ........................................................................................... 28 Model Description ............................................................................................................. 40 Model Results ........................................................................................................... 45 4.1 4.2 4.3 5 Legal Background ............................................................................................................... 4 Required Standards by HP ................................................................................................. 7 Recycler and Refiner ........................................................................................................ 12 Costs................................................................................................................................. 24 Model Development .................................................................................................. 28 3.1 3.2 4 Objectives ........................................................................................................................... 2 Reference Scenario .......................................................................................................... 45 Parameter Sensitivities ..................................................................................................... 49 Including Reuse and Refurbishment ................................................................................. 58 Conclusions .............................................................................................................. 61 5.1 Current Situation ............................................................................................................... 61 5.2 Economic Feasibility ......................................................................................................... 61 References ................................................................................................................ 64 Glossary ........................................................................................................................... 66 List of Figures ................................................................................................................. 68 List of Tables ................................................................................................................... 69 List of Abbreviations....................................................................................................... 70 7 Appendix ...................................................................................................................... I 7.1 WEEE Classification hazardous/non-hazardous ................................................................. I 7.2 7.3 7.4 7.5 Relevant Regulations for WEEE management (Rochat & Laissaoui 2008)........................ II Collected economic data ................................................................................................... VI Material Composition for Model ......................................................................................... IX Assumptions for Appliance Composition ............................................................................ X I Current Situation and Economic Feasibility of e-Waste Recycling in Morocco 1 Introduction Similar to the global markets, the consumption rates of electrical and electronic equipment have accelerated in Africa in the last decade. As a consequence, the volumes of waste originating from those appliances, generally known as Waste Electrical and Electronic Equipment WEEE or ewaste, have risen significantly. To date, Africa is lacking appropriate infrastructure to treat e-waste in a controlled manner and most activities in this field are performed by the informal sector. This leads not only to a high loss of valuable resources comprised in e-waste, but to severe environmental and health issues due to the inadequate treatment procedures applied. In order to tackle the problem, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and Hewlett-Packard (HP) agreed upon a Public-Private Partnership (PPP) with the following objective: “The improvement of conditions and structures and the enhancement of know-how for a sustainable e-waste management in selected African countries”. In the framework of this cooperation, the Swiss Federal Laboratories for Material Science and Technology Empa were mandated by HP to assess the current situation in respect to e-waste in Morocco. The results presented in this report form part of this mandate. 1.1 Objectives The main objective of this study is to provide an overview of the current activities and stakeholders in the field of e-waste in Morocco. A solid basis for this study are the two previous studies from GIZ (2010) and Rochat and Laissoui (2008). In line with the purpose of the PPP – namely to aim for a sustainable e-waste management in the country – an additional major assignment is to assess the financial viability of a pilot e-waste management at local level. The study addresses the following aspects: The legal framework that affects the e-waste management and the standards requested by HP of the vendors (recyclers, refiners) involved in the treatment steps. An overview of the primary stakeholders currently involved in the e-waste treatment in Morocco. An outline of the processes and elements that make up a sound e-waste treatment: collection, pre-processing, end-processing administration and monitoring. & disposal/incineration, transportation, The role of the informal sector. The assessment of the financial feasibility of e-waste businesses in Morocco by means of a sensitivity analysis. The study encompasses appliances of the following WEEE categories1: IT and telecommunications equipment (cat. 3) and consumer equipment (cat. 4). The focus is set on 1 See classification according to the EU WEEE Directive 2002/96/EC: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2003:037:0024:0038:EN:PDF 2 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco desktop PCs, laptops, printers, mobile phones, TV sets, DVD and VHS players as well as audio appliances, not excluding further appliances of the mentioned categories. 3 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco 2 Framework Conditions 2.1 Legal Background The most important regulations affecting the management of e-waste are described below. Further reviews of Moroccan regulations concerning e-waste can be found in GIZ (2010) and Rochat and Laissaoui (2008). A compilation of the latter is added in appendix 7.2. 2.1.1 Environmental Regulations While several regulations affect the e-waste management only tangentially, the main basis for the actual e-waste regulation is law N° 28-00 on “waste management and its disposal”2. Nevertheless, a specific regulation on e-waste management in Morocco is still lacking. Law N° 28-00 on the management and disposal of waste (enacted on 22 November 2006) Currently, this law is the most specific regulation concerning e-waste management. It defines the classification of the different waste types and regulates the respective management for each type. According to the type of waste, either the national, regional or local authorities are responsible for the implementation of the waste management plans; for hazardous wastes the national authorities are competent and for industrial wastes the regional authorities3 are competent. Law N° 28-00 regulates the management of hazardous waste as follows (Articles 29-37): Hazardous waste can only be treated in installations designated by the authorities according to the national hazardous waste plan (Art. 29) The collection and the transport is subject to an authorization by the administration, which is valid for max. 5 years and can be renewed (Art. 30). For the transport, a label has to be provided on the packing and/or the containers of the hazardous waste, identifying the waste (Art. 31). Hazardous waste transports must be accompanied by a tracking sheet containing information about the shipper, carrier, consignee, the type and quantity of waste, the mode of transport and the procedures for its disposal (Art. 32). It is prohibited to store hazardous waste in other places than installations which are designated to this purpose by this law (Art. 33). Without a special authorization, the mixing of hazardous waste with other waste categories is banned (Art. 35). Each legal personality working with hazardous waste has to possess an insurance contract covering his professional responsibility (Art. 36). 2 Loi n° 28-00 relative à la gestion des déchets et à leur elimination (enacted on December 7, 2006) 3 There are 16 regions in Morocco 4 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco The producer of hazardous waste and the legal personality possessing an authorization according to Art. 30 and 35 has to keep a record about the quantities, the type and the origin of the hazardous waste they are working with (Art. 37). Law 28-00 prohibits the importation of hazardous waste, thus the importation of e-waste, too. Furthermore, on 9 July 2008, decree N° 2-07-253 (Catalogue marocain des déchets), which is based on law 28-00, was enacted. This Moroccan waste catalogue is principally adopted from the European Waste Catalogue and the Basel Convention (see chapter 2.1.4). The section concerning WEEE of the Moroccan catalogue is provided in appendix 6. Law N° 12-03 on environmental impact studies (enacted on 12 May 2003) Any new project or extension of an existing project for the recycling or disposal of WEEE is subject to an environmental impact study. 2.1.2 Transportation Restrictions Since several national and international regulations affect the transport of waste, a short summary concerning transportation is provided here. As most operations with e-waste, also its transportation regulation is dependent on the classification of e-waste as hazardous or non-hazardous, respectively. For further information about this classification, see above (chapter 2.1.1). 2.1.2.1 National The decree N° 2-04-4684 stipulates that any parcel (french: colis) weighing more than 1 ton has to be provided with information about its weight, the nature of its content, the minimal length of the parcel, the position of the loading and the name of its sender. The decree is specifying the article 302 in the Moroccan labour code. For non-hazardous wastes, no specific regulation on transportation exists. Only law 28-00 delineates by article 26 the mixing of those wastes with domestic wastes: « Les déchets agricoles et les déchets industriels non dangereux ne peuvent être assimilés aux déchets ménagers que sur la base d’un rapport d’analyse exigé, en cas de nécessité, par la commune et élaboré par un laboratoire agréé. Dans ce cas, ces déchets peuvent être transportés et déposés dans des endroits séparés au sein des décharges contrôlées des déchets ménagers et assimilés. » In terms of hazardous waste, law 28-00 imposes the conditions specified in chapter 2.1.1 on transportation. Especially the articles 30 - 32 and 35 - 37 are relevant with regard to transportation (see above). 4 http://www.droit-afrique.com/images/textes/Maroc/Maroc%20-%20Decrets%20appli%20code%20du%20travail.pdf 5 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Concerning the export of materials, there is another regulation. “On 28 April 2008, note 0604/1313 from the Facilitation Office introduced new provisions for the export of ferrous and non-ferrous metals, particularly metal debris, scrap metal and others. Since then, exporters of these materials must produce documents proving the origin of their cargoes in order to obtain customs release.” Rochat and Laissaoui (2008) 2.1.2.2 International On the international level, the main regulatory tool for hazardous waste is the Basel Convention, to which Morocco joined in 1996 (see chapter 2.1.4). The following neighbouring countries of Morocco also joined the Basel Convention: Algeria, Tunisia, Libya, Egypt, Mauritania and all European countries. This might be relevant regarding a potential transportation of e-waste fractions to or via neighbouring countries. In Morocco, the Basel Convention was adopted in the national legislation with the Law 28-00, which regulates the import and export of wastes in general in the Articles 42 – 47. Article 44 says: « Toute opération d’exportation des déchets est subordonnée à une autorisation délivrée sous réserve du consentement et de l’accord écrit de l’Etat intéressé et à condition que ces déchets figurent sur une nomenclature fixée par voie réglementaire. L’exportation des déchets dangereux est prohibée vers les Etats qui interdisent l’importation de ces déchets, vers les Etats qui n’ont pas interdit cette importation en l’absence de leur accord écrit et vers les Etats non parties à la Convention de Bâle sur le contrôle des mouvements transfrontières des déchets dangereux et de leur élimination. […] » 2.1.3 Health & Safety Regulations Based on law N° 65-99, the Moroccan labour code5 defines the labour conditions in its book II (Art. 135 – 395). Within this book, several regulations on H&S can be found. For a comparison of the Moroccan labour regulation with HP Standards on H&S, we refer to chapter 2.2.5. 2.1.4 International Agreements Morocco has joined several international agreements which affect the production and use of EEE, but also the recycling of WEEE. The Basel Convention on the Control of Transboundary Movements of Hazardous Waste and their Disposal6 imposes rules for the import and export of hazardous waste to the signatory countries. Consequently, their movement and disposal is conducted by established protocols. 5 http://www.justice.gov.ma/fr/legislation/legislation.aspx?t y=2&id_l=124#l124 and http://www.droitafrique.com/images/textes/Maroc/Maroc%20-%20Code%20travail.pdf 6 6 www.basel.int Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Morocco accessed the Basel Convention in 1996 and implemented it in the law 28-00 (Art. 42 47). As a supplement to the Basel Convention, the Ban Amendment7 prohibits hazardous waste exports from Annex VII countries (Basel Convention countries that are member of the EU, OECD, Liechtenstein) to non-Annex VII countries (all other Parties of the Convention). Morocco ratified the Ban Amendment in 2004. It is important to note that this amendment has not yet entered into force (3/4 of the Parties who accepted it have to ratify it). Another international treaty affecting the handling of e-waste is the Stockholm Convention on Persistant Organic Pollutants (POPs)8, which was ratified by Morocco in 2004. It obligates the signatory countries to establish the needed measures to prohibit the production, utilization, import and export of POPs (e.g. PCB). 2.2 Required Standards by HP HP established its own guidelines which each vendor of HP has to comply with. Within the scope of e-waste recycling, mainly three documents specify those guidelines: Electronic Industry Code of Conduct9 (HP 2009), Supplier Social & Environmental Responsibility Agreement10 and HP Standard 007-2 Vendor Requirements for Hardware Recycling11 (HP 2008a). Furthermore, the HP Standard 007-3 delineates the requirements for hardware reuse12 (HP 2008b). The guidelines by HP are not only directed to the first level vendors, but also to the (sub-)vendors engaged in any of the following associated activities: handling, storage, transportation, and processing. They range from EHS to operational to social issues a (sub-)vendor should consider. Thereby, the first level vendors are accountable for the compliance of their sub-vendors with the HP guidelines. In general, HP requires that “vendors obtain and maintain all applicable permits, licenses, approvals, agreements, and other required government or regulatory documents.” (HP 2008a) It is important to note that those guidelines and standards do not only apply for vendors of the industrialized world, but to all vendors which treat HP products. However, due to less supportive framework conditions (lacking infrastructure, no specific legislation, etc.) in developing countries, a gradual implementation of those standards in e.g. Morocco is possible. HP currently is following such an approach in South Africa. 7 http://www.basel.int/pub/baselban.html 8 www.pops.int 9 http://www.hp.com/hpinfo/globalcitizenship/environment/pdf/supcode.pdf#_new 10 http://www.hp.com/hpinfo/globalcitizenship/environment/pdf/supagree.pdf 11 http://www.hp.com/hpinfo/globalcitizenship/environment/recycle/finalrecstds.pdf 12 http://www.hp.com/hpinfo/globalcitizenship/environment/recycle/finalreustds.pdf 7 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Hereafter, a compilation of the most relevant HP specifications is given. For further details, please consult the original guidelines mentioned. 2.2.1 Reuse, Resale, or Donation of Whole Units, Parts, or Components The vendor must provide assurance that all of the products sold are in working condition by testing them and documenting this process (HP 2008a). More details are provided in HP Standard 007-3 (HP 2008b, see above). 2.2.2 Landfill Avoidance and Corresponding Approved Dispositions “The following products and components must not be land-filled: whole monitors; central processing units (CPUs); televisions; printers; printed circuit boards containing lead; mercury lamps and switches; cathode ray tubes (CRTs); CRT glass; batteries; liquid crystal displays (LCDs); plasma screens; and any materials containing lead, mercury, cadmium, hexavalent chromium, or polychlorinated biphenyls (PCBs).” (HP 2008a) For the majority of those products and components, HP provides specification on their approved disposition: “Mercury lamps must be processed by vendors capable of and experienced in handling and recycling mercury. The mercury-containing components must be recovered and not be sent to landfills. Batteries must be processed by vendors capable of and experienced in recovering and recycling lead, acid, cadmium, nickel, copper, zinc, and other metals present in batteries. CRTs (cathode ray tubes) must be processed by a leaded-glass recycler or a lead smelter. LCDs (liquid crystal displays) must be processed by vendors capable of and experienced in recovering mercury in backlights. PC (printed circuit) boards must be processed by a smelter (or other thermal process) capable of and experienced in recovering precious metals (gold and so forth) and heavy metals (lead and so forth) for reuse or by a chemical recovery process. Circuit components may be extracted for reuse prior to smelting. Plastics should be recycled for use in new products, components and materials, as substitutes for other raw materials, or recycled in another beneficial manner. When recycling is not economically practical, plastics should be processed for energy recovery at a facility that is designed to control and monitor emissions from the process. See section 14.9 for related information. 8 Printing supplies collected as part of hardware recycling (for example, a print cartridge present in a printer at the time of its collection): Original HP printer cartridges must be processed using the HP Inkjet cartridge and LaserJet toner cartridge return and recycling programs in countries where HP programs are available. All other print supplies must be Current Situation and Economic Feasibility of e-Waste Recycling in Morocco recycled or disposed of in an environmentally responsible manner compliant with applicable laws and regulations. Metal (other than in PC boards): Acceptable processing includes liberation of metal items (manually or mechanically), volume reduction for transport (shredding, baling, and so forth), and refining by smelters or foundries (or similar) for the purpose of preparing the metal for reuse. To maximize recycling rates, sending whole products to a smelter is not authorized without approval from HP and demonstration that the smelter is capable of capturing all of the following for reuse: copper, precious metals (such as gold and silver); steel and aluminum; and, for CRT devices, lead. Incineration: If lead-bearing electronic components (such as circuit boards), batteries, polyvinyl chloride (PVC) plastics, mercury lamps, or any material classified as hazardous waste under applicable regulations are disposed of by incineration, the incinerator must meet 99.99% destruction removal efficiency (DRE) for all regulated hazardous contaminants and 99.9999% DRE for dioxins. Other Dispositions: Any other disposition for the above materials is not authorized unless approved in advance by HP.” (HP 2008a) 2.2.3 Information Security “All data-containing devices such as hard drives, and recording media such as CDs, DVDs, tapes, or other similar items must either be fully erased or destroyed by shredding, crushing, shearing, melting, incinerating, or perforating the memory resident material.” (HP 2008a) 2.2.4 Transportation With respect to international transportation, HP (2008a) stipulates: “HP products, components or materials exported across country borders must have prior approval from the HP vendor manager, any required permits or government consents for transboundary shipments must be secured before shipment, and hazardous or regulated materials shall not be exported from developed countries to developing countries.” 2.2.5 Health & Safety The HP Standards on H&S are generally based on recognized management systems such as OHSAS 1800113 and ILO Guidelines14 on Occupational Safety and Health. 13 http://www.ohsas-18001-occupational-health-and-safety.com 14 http://www.ilo.org/wcmsp5/groups/public/---ed_protect/---protrav/---safework/documents/publication/wcms_110496.pdf 9 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Below, a short comparison of HP Standards on H&S (in HP 2009) and the corresponding articles in the Moroccan labour code is given. Moroccan Regulation The workplace, the machines, engines and tools have to be maintained in a way to HP Standards guarantee the safety of the employees (Art. 282, see also Art. 289) “Occupational safety: worker exposure to potential safety hazards are to be controlled” by safety measures and personal protective equipment. […] --- (no regulation found) “Emergency preparedness: emergency situations are to be identified and assessed, and their impact minimized by implementing emergency plans and response procedures. […]” “Occupational injury and illness: procedures Each company employing more than 50 employees or companies realizing labour which exposes their employees to risks of professional illness have to dispose of an independent medical service (Art. 304 ff.). Additionally, each company with more than 50 employees has to create a H&S committee (Art. 336 ff.) See also Art. 290. The utilization of products and substances and systems are to be in place to prevent, manage, track and report occupational injury and illness. […]” recognized as likely to harm worker’s health or safety must not be allowed by the employer (Art. 287). Hazardous substances in use have to be labelled with a danger warning (Art. 288). --- (no regulation found) “Industrial hygiene: worker exposure to chemical, biological and physical agents is to be identified, evaluated, and controlled. […]” “Physically demanding work: worker exposure to the hazards of physically demanding tasks, including manual material handling and heavy or repetitive lifting, prolonged standing and highly repetitive or forceful assembly tasks is to be identified, evaluated and controlled.” 10 It is prohibited to purchase or rent machines presenting a danger to the workers, if there are not provided with a protection device (Art. 283, see also Art. 282 & 286). “Machine Safeguarding: production and other machinery is to be evaluated for safety hazards.” Physical barrier has to be provided and maintained where necessary. Current Situation and Economic Feasibility of e-Waste Recycling in Morocco The employer has to guarantee the provision with drinking water at the workplace and ensure salubrious housing and satisfying hygiene conditions for the workers (Art. 281). “Sanitation, food, housing: workers are to be provided with ready access to clean toilet facilities, potable water and sanitary food preparation, storage, and eating facilities. […]” 2.2.6 Other Specifications Among others, further requirements within the HP Standards for Hardware Recycling (HP 2008a) are: Emergency plans: the vendors have to “implement and maintain an emergency response plan to prepare for and respond to emergency situations, including fires, medical emergencies, and uncontrolled releases of hazardous or harmful materials.” Insurance: each vendor has to maintain a general liability, a comprehensive liability and a pollution liability insurance. Use of subvendors: “Vendors must verify and maintain documentation that any subvendors they employ to provide recycling or disposal services for designated materials originating from HP will and do comply with this standard, including the HP Supplier Code of Conduct.” Vendors must conduct “audits to document conformance to HP standards at all subvendor sites and operations, regardless of their locations, that are used for handling, storage, or processing designated materials managed on behalf of HP.” Audits: “HP reserves the right to conduct annual audits and assessments of all vendor sites and operations […]” Product and Materials Tracking and Accountability: “Upon request, vendors must provide an accounting to HP of all HP products, components, and materials they have processed […]“ Site security: “Security controls must be in place to protect HP products, components, and materials from the time entrusted to the vendor” This concerns also the employees, which have to be screened for criminal convictions (unless prohibited by law) before assigning any employee or contractor work or access to HP products or components. 11 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco 2.3 Recycler and Refiner An economically efficient and environmentally sound e-waste business not only relies upon the single processing steps but on the recycling chain as a whole. Each step in this chain is interlinked with the precedent and following step, e.g. the composition of the collected waste material determines the design of the processing channel. A proper coordination of the whole recycling chain and a transparent and close interaction and communication are thus crucial to achieve a good overall efficiency (Schluep et al. 2009). The necessary investments and technological requirements for the respective steps in the e-waste recycling chain differ significantly. “As a consequence an international division of labor has been established over time. Collection, dismantling and partly mechanical pre-processing takes place at a national or regional level, as does metals recovery from less complex materials/fractions such as ferrous, copper and aluminum. On the contrary treatment of complex materials such as circuit boards, batteries, cell phones in refining processes or specialized battery recycling plants takes place in a global context.” (Schluep et al. 2009) Information about some special fractions which have to be processed can be found in chapter 3.1.8. Objective of the treatment step Potential treatment alternatives High collection rate (Several collection schemes possible; not considered as a technological step) Depollution Manual dismantling/sorting Separation of material fractions Manual dismantling/sorting Shredding and separation by magnetic belts, eddy currents, magnetic inductions, vibrations, density, dielectric properties or melting temperature Recovery of material fractions Plastic recycler Smelters Integrated metal smelter Removal of hazardous substances Incineration with off-gas control Disposal in hazardous landfill Recovery of hazardous substances Table 1. Potential recycling procedures/technologies. In this chapter, an outline of the present e-waste recycler and refiner of the fractions generated during pre-processing on a national and international scale is given. The purpose is to dispose of an information basis allowing the design of recycling concepts adapted to the local circumstances and the identification of required extensions and/or improvements in the recycling chain. 12 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco 2.3.1 National e-Waste Recycler According to GIZ (2010), only few formal e-waste recycling activities take place. The formal recycling sector is still in its infancy and the main fraction of WEEE is collected and treated by the informal sector (Rochat & Laissaoui 2008). Nevertheless, some formal e-waste recycling activities exist in Morocco. In the two years between the publication of the studies mentioned above, the only new stakeholder in the formal e-waste recycling is Managem (see chapter 2.3.1.2). An outline of the national stakeholders which accept entire WEEE or one or several fractions is given in Table 2. Hazardous materials CRT-glass PWBs Copper Aluminum Ferrous metals Plastic Yes Yes Yes Yes Yes Yes* intended intended Yes Yes intended intended intended intended via Al Jisr via Al Jisr Yes** metal scrap*** no Yes Yes Yes Yes Yes Yes Yes No solution available currently Valdeme IVSEP Al Jisr Ecotechno Managem Mac//Z SONASID Univers acier Tube et Profil Maghreb Steel SFPZ Dismantling Entire WEEE State-of-the-art technology like optimal PWB or battery recycling are not yet available on national level. Is investigated * PWBs are exported ** Pilot stage, not up to international environmental standards *** WEEE is shredded together with metal scrap (without particular pre-treatment of WEEE) Table 2. Current Moroccan treatment options for e-waste fractions. 2.3.1.1 e-Waste Recycler Further information about the companies described hereafter can be found in GIZ (2010). Valdeme The company Valdeme (VALorisation DEs MEtaux) is mainly a metal scrap recycler and wholesaler. But in recent years, Valdeme got active in the e-waste recycling as well, principally performing a dismantling of the appliances. The resulting fractions are supplied to national and international recyclers and refiners. The main e-waste collection channels of the company are the supply via some major companies (IBM, Phillips, St Microelectronics) as well as tender offers by companies and authorities. Valdeme claims that it is difficult to get e-waste in tender offers as the 13 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco informal sector is allowed to compete as well. Due to their cherry-picking approach15, they readily outcompete formal recyclers. A field visit at the facility close to Berrechid (Greater Casablanca) revealed that e-waste makes only a small share of the whole material throughput, the appliances being dismantled only at one workplace. GIZ (2010) reports a volume of about 10 tons of treated ewaste per year at Valdeme, which corresponds approximately to the number of 500 PCs a year provided in Rochat and Laissaoui (2008). According to Mr. Baudet, its director, the company has made major efforts for environmental issues, e.g. the implementation of a waste water treatment or the environmental impact study that was conducted. Figure 2. Metal scrap depot, Valdeme. Figure 1. e-Waste dismantling workplace, Valdeme. Figure 3. Metal scrap at Valdeme. 15 Cherry-picking: remove the valuable parts from the appliances without treating the hazardous parts in appropriate manner. 14 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco IVSEP IVSEP (Société d'Industries Vertes et Services Propres) is a small company in Fes that intends to start an e-waste dismantling facility, supplying the resulting material fractions to the appropriate downstream processing. It is important to note that the company is not yet active operationally. A trip to the terrain of the company revealed that construction works did not start so far (the designated terrain is an open acre). Some pictures of the field visit can be found in Figure 9 Figure 12 (page 20). The company intends to collect e-waste from households via a close cooperation with the informal sector. The director of the company, Mr. Lhossini, has established contacts to the stakeholders of the informal sector (scavengers, etc.) in order to structure the collection of e-waste from households and small companies. The collection strategy comprises the installation of several take-back points in and around the city of Fes, where some selected and instructed scavengers can sell their collected appliances at a specified price. Al Jisr Even if the main activities of the association Al Jisr consist of the refurbishment of computers and their reuse in schools, it can be considered an e-waste recycler, too. With its collection and dismantling project Green Chip, Al Jisr does not only contribute to the solution of the e-waste issue, but intends to provide a formation to unprivileged adolescents. It is backed up financially by the Swiss NGO Drosos16 and the Moroccan company Managem, which ensures the acceptance of complete e-waste fractions (see chapter 2.3.1.2). Thus, Al Jisr is not competing with the further e-waste recyclers. But it has established a well organised facility in Casablanca where a deep manual dismantling of mainly IT equipment is carried out. Figure 4. Dismantling at Al Jisr. 16 Figure 5. Dismantling facility of Al Jisr. http://www.drosos.org/en/ 15 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Ecotechno Ecotechno is a company which focuses solely on the treatment of e-waste. Ecotechno evolved from the national school of mineral industry (ENIM17). At ENIM, the two processes were developed which established the basis for the involvement in the e-waste business. The first process is the recovery of gold from the PWBs by a wet chemical leaching with an upstream shredding process. Secondly, the plastic and silica residues from the PWB shredding and further shredded plastic are glued to a sealing material which replaces bitumen plaster. So far, none of the processes was applied on an industrial scale. Apart from those processes, Ecotechno intends to collect and dismantle the appliances and supply the material fractions to the appropriate downstream processing channels. Apparently, Ecotechno lacks financial funding and thus the company is currently not operative., Moreover, efficiency (gold recovery) and compliance with environmental standards (glued plastic residues) of the developed processes are not clear and need further clarification. According to Schluep et al. (2009) hydrometallurgical processes as described above are usually not as effective as a treatment in an integrated metal smelter. Concerning the residual plastic glue, it is not clear if its exposure to weather leads to an emission to enclosed hazardous substances. 17 16 Ecole Nationale de l’Industrie Minérale; http://www.enim.ac.ma/ Current Situation and Economic Feasibility of e-Waste Recycling in Morocco 2.3.1.2 Refiner For certain metal fractions generated during pre-processing national refining options exist. Especially if metals like Fe, Al, Cu, etc. can be segregated in the dismantling, a national refining solution is feasible and preferable. Table 3 gives an outline of the main metal smelters, whereas other existing small and medium scale facilities are not mentioned in the table. As opposed to this, Morocco does not offer a suitable and established facility to treat complex fraction containing metals, e.g. PWBs, ICs, processors, connectors and small electronic devices (mobile phones, mp3-players etc.). Company Treated fractions SONASID18 Ferrous metals Univers acier Ferrous metals Mafoder19 Ferrous metals Tube et Profil Ferrous metals Maghreb Steel20 Ferrous metals Mac//Z (see below) Copper, brass (wholesaler for further metals) SFPZ21 Lead glass (lead smelter) Managem22 (Guemassa Some special and precious metals (Cu, Pb, Zn, Co, Au etc.), PWBs in pilot treatment (see below) hydrometallurgical complex) Table 3. National refiner, adapted from Rochat and Laissaoui (2008). Managem As described in GIZ (2010), Managem is a subsidiary of the multinational group ONA and its principal divisions are ore mining and metal refining. Four years ago, Managem became also active in the field of e-waste, where it focuses on the refining of several metals contained in the PWBs. Due to their relatively high concentration of precious metals and copper, the PWBs allow Managem to upgrade its mining ores. For this purpose, a pilot plant with an open electric arc furnace was installed at the plant in Guemassa, close to Marrakesh. The product of this furnace is a blister consisting of the PWB metals (see Figure 6). The plant’s capacity is about 100 t of PWB per month. This plant is not 18 www.sonasid.ma 19 www.mafoder.com 20 www.maghrebsteel.ma 21 Société des Fonderies de Plomb de Zellidja, www.sfpz.ma 22 www.managem-ona.com 17 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco equipped with an off-gas control system. But according to Managem this isn’t required due to the high processing temperatures (approx. 1’600 °C) which prevent the generation of dioxins. In order to supply the future final facility with a reported capacity of 10’000 t of PWB per year (corresponding to 200’000 t of WEEE per year), the company intends to gather e-waste at a national and international level. For this reason Managem is also involved as a primary sponsor of the Green Chip project in Casablanca, that was initiated by the association Al Jisr (see chapter 2.3.1.1). The project consists in the collection, dismantling and recovery of e-waste from companies and authorities. While Al Jisr manages the collection and the manual dismantling, all the resulting material fractions are purchased by Managem for a price of 1’800 MAD23 per ton. Managem assumes responsibility for the downstream processing solution of each fraction. At present, the definite downstream processing destinations of the different e-waste fractions are not known. According to Managem several Figure 6. Blister from the PWB pilot plant. fractions (e.g. batteries, capacitors, plastic, etc.) are kept in stock until an appropriate treatment or disposal option is available. Mac//Z Mac//Z is located in Skhirat between Casablanca and Rabat. Its main activities are the shredding and the separation of metal scrap and the fabrication of copper and brass billets and further products. Those activities include the stripping of Al and Cu cables. For other metals like iron, aluminum, etc., Mac//Z acts as an intermediary. Some of those metals are exported. Further information about the company can be found in GIZ (2010). The company is not involved in the recycling of e-waste, but during a field visit a non-negligible share of electric and electronic appliances was seen in the input to its automatic shredding processes. Additionally, several workers were stripping Al and Cu cables. No specific measures seem to be taken to prevent hazardous contamination which is likely to happen during the shredding of the e-waste enclosed in the metal scrap. 23 18 1‘800 MAD ≈ 160 €, exchange rate from 4.11.2010 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Figure 7. e-Waste in the metal scrap bulk (Mac//Z). Figure 8. Hoffmann shredder at Mac//Z. 2.3.1.3 Informal Recycler In the informal sector several levels of stakeholders have to be distinguished. At the bottom of the hierarchical pyramid we find the scavengers that work mostly on their own and collect different materials wherever they can find them (e.g. landfills, households, etc.). As both GIZ (2010) and Rochat & Laissaoui (2008) report, they do commonly not focus on the collection or dismantling of e-waste due to a weak market interest/demand. Thus, compared to developing countries like e.g. India, Ghana or Nigeria, few scavengers are active in the field of e-waste in Morocco. While their main activities are directed to other materials, wholesalers and semi-wholesalers do perform e-waste collection and dismantling to a certain extent. In particular their participation in tender offers by companies and authorities is reported (Rochat & Laissaoui 2008). As Valdeme claims, the informal stakeholders usually outcompete the formal participants in those tender offers. The reports about the “recycling” practices by the informal stakeholders would confirm this declaration; their practices mainly consist in the extraction of the valuable parts like metals, while parts which cannot be commercialized or parts containing hazardous substances are abandoned or relinquished to the municipal waste collection (cherry-picking). Some reports about open cable burning exist as well (Rochat & Laissaoui 2008). According to this study, such informal dismantling in Casablanca was gradually replaced by activities in Sidi Bennour, a small town located 160 km southwest of Casablanca. In November 2010 a visit to some stakeholders (scavengers and a small intermediary) of the informal sector in Fes was organized by Mr. Lhossini (IVSEP, see above). Even if the main volume of the met scavengers consisted of other materials than e-waste, many scavenged small appliances that were left behind could be seen (e.g. mobile phones, light bulbs, PWBs, CRT coils, chargers). Cable burning was detected as well. Some pictures of this field trip are provided below. 19 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Figure 9. e-Waste intermediary), Fes. take-back point Figure 11. Push cart of a scavenger, Fes. (small Figure 10. Cable burning, informal sector, Fes. Figure 12. Burning informal sector, Fes. of lighting equipment, The studies of GIZ (2010) and Rochat & Laissaoui (2008) provide more details about the informal sector. 20 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco 2.3.2 International Recycler and Refiner From an environmental and in most cases also economic perspective, the optimal downstream processing for fractions with complex or hazardous composition like PWBs, ICs, connectors, CRTs, mercury lamps, batteries etc. are specialized facilities worldwide. Hereafter, a few options for those fractions are presented. GRIAG Glasrecycling AG GRIAG24 was founded in 1997 and is specialized in the treatment of CRT glass. It is located close to Berlin, Germany. Since 2007 GRIAG is a subsidiary of Stena Metal Holding GmbH25, a worldwide scrap trading group. The company accepts whole cathode ray tubes (without casing), crashed cathode ray tubes as well as separated panel and funnel glass. The price for the treatment of the glass depends on the condition of the supplied glass. The treatment consists in the removal of other materials from the glass, the separation of the funnel and the panel glass and a purification of the respective glass. The conditioned glass is supplied to CRT manufacturer in Asia, according to provided information. MBA Polymers MBA Polymers26 was founded in 2004 and disposes of three plants located in Austria, China (Guangzhou) and the United States of America. The company is specialized in the recycling of plastics, performing the removal of foreign material, the separation of the plastics and the recovery of ABS, HIPS and PP polymers. In doing so, the facilities are mainly fed by plastics from cars and EEE. MBA Polymers is one of the few treatment options capable of separating plastics containing hazardous flame retardants from non-problematic plastic fractions. Recilec The company Recilec27, that is located in Sevilla (Spain), offers an integral e-waste management from collection to dismantling and supply to end-processors. But as the company also accepts material fractions originating from an upstream dismantling process, it could be an interesting downstream processing option for e-waste dismantlers in Morocco, also due to its proximity to Morocco. Among others, Recilec would accept the following e-waste fractions: Cold Cathode Fluorescent Lamps (CCFL). They contain mercury and derive from flat screens. 24 www.griag.de 25 www.stenametall.com 26 www.mbapolymers.com 27 www.recilec.com 21 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Cathode ray tubes (CRT); whereas the treatment costs seem to be significantly higher than those of GRIAG (see Table 7). 2.3.2.1 Integrated Metal Smelters The recovery rate of precious and base metals contained in fractions PWBs, batteries, connectors, etc. can be significantly enhanced in integrated smelters abroad compared to a national solution in copper smelters or other existing plants. There is not a multitude of integrated metal smelters worldwide. In the table below, some of the smelters are listed. In general, the smelters charge their services according to a complex payment system, which bases on the following scheme: + = % of material value Variable charges Fix charges Offered price whereas the variable charges include a percental deduction of the metals, a charge per kg of the recovered metals, and the fix charges include a treatment charge, weighing & sampling charge and possibly a shredding charge. Regarding PWBs, most integrated metal smelter accept all different types, however, low grade PWBs usually have to be upgraded first (removal of Al and Fe parts, cooling devices, transformer, etc.). As the aluminum cannot be recovered in the integrated metal smelters, it is recommended to remove Al-parts from the boards (e.g. heatsinks). In particular the lot size of the shipment is relevant for the acceptance of the shipment. The minimal lot sizes differ from smelter to smelter and depend primarily on the quality of the material (the grade of the boards). 22 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Company Country Description Umicore Belgium Umicore is a material technology corporation, whose activities focus on 4 business fields: advanced materials, precious metal products and catalysts, precious metals services and zinc specialities. preciousmetals.umicore.com batteryrecycling.umicore.com Accepts: PWBs; additionally, Umicore Battery Recycling treats lithium and NiMH batteries (no Ni-Cd batteries). Boliden Sweden www.boliden.se Boliden is a leading European metals company. The main metals are zinc and copper. The operations are conducted in two Business Areas: Mines and Smelters Accepts: PWBs Aurubis Germany www.aurubis.com (prior: Norddeutsche Affinerie) Aurubis is the largest copper producer in Europe and the world leader in copper recycling. Aurubis produces some 1.1 million tonnes of copper cathodes each year and from them a variety of copper products. Accepts: PWBs Xstrata Recycling http://www.xstrata.com www.norandarecycling.com (prior: Noranda) Canada / USA Xstrata’s businesses maintain an important position in seven major international commodity markets: copper, coking coal, thermal coal, ferrochrome, nickel, vanadium and zinc, with a growing platinum group metals business, additional exposures to gold, cobalt, lead and silver, recycling facilities. Accepts: PWBs Table 4. List of integrated precious metal smelter, not exhaustive (CNPML & Empa n.d.). 23 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco 2.4 Costs The purpose of the present chapter is to give a view of the current costs which affect the e-waste management, in particular the costs considered in the model. The presentation of all gathered data would be too extensive, hence only the most crucial numbers are reproduced. In appendix 7.3 more detailed numbers can be found. Most of the provided numbers in this report describe formal activities like transport companies, downstream processing, labour costs etc. A more thorough compilation of current prices in the informal sector in Morocco can be found in GIZ (2010). The gathered data in the referenced report concern sales and purchase prices of e-waste and its fractions between informal stakeholders, e.g. between scavengers, intermediaries and wholesalers. For the design of the collection concept with the informal sector, this information gives a good idea about the informal cost structures which formal e-waste businesses have to compete with. The exchange rate from Euros to Moroccan Dirhams (MAD) is 1 € ≈ 11,2 MAD (4.11.2010). 2.4.1 Labour Costs Because of the labour intensity of a manual dismantling facility, the wages paid to the workers account for an important share of the costs. The minimum wage in Morocco is 10,64 MAD per hour. If the non-wage labour costs are included, the monthly minimum wage adds up to approximately 2’500 MAD28. Based on experiences of Empa in other countries, the wage for a common worker in a model facility (dismantling, refurbishing, etc.) is assumed to be 3’000 MAD per month, about 20% higher than the minimum wage. Further wages which were used in the model are given below29: Secretary 3’500 MAD/month Driver 3’500 MAD/month Administration assistant 6’000 MAD/month Manager 15’000 MAD/month 2.4.2 Rental Costs Without knowing for certain where the dismantling facility is located, it is difficult to determine the rental costs as they can vary according to the location. Several purchase and rental prices can be found in the appendix. For the model, a price of 9,38 MAD per m2 and month has been calculated 28 Information provided via mail by Al Jisr 29 Those wages rely on indications from Valdeme 24 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco based on a rental price for a storage depot in an industrial zone Tit Mellil/Casablanca30. The reason for the selection of this price was its average value compared to the other data which were gathered. 2.4.3 Commodity Prices (incl. PWB and battery prices) Via the commercialization of the fractions directed to the downstream processing, in particular of PWBs and metals, the commodity prices significantly affect the revenue of e-waste businesses. These prices are set on an international level, so the business is strongly dependent on those global markets and thus is very sensitive to this factor. A strong fluctuation of the commodity prices could be observed during recent years, what demonstrates the sensitive reaction on this factor of a business like the one delineated in this study. Since the striking decline of the commodity prices in 2008, most of them have reached similar or even higher levels than before the global economic crisis. The commodity prices which were applied in the model are the average prices of 201031 (reference scenario, see chapter 3.2.1). In the table below the metal prices which are relevant for e-waste are presented. Table 5. Average commodity prices for 2010. Ø 2010 Au Ag Pd Cu Al Fe32 USD/oz USD/oz USD/oz USD/t USD/t USD/t 1'199.15 18.80 493.18 7'300.00 2'150.00 480.00 Obviously, the sale of the base metals (Cu, Al, Fe) does not bring in 100% of the prices presented in the table, but solely a certain percentage of them. Based on indications from Mac//Z and a Swiss recycler, the following percental price reductions were used in the model: Copper LME33-price minus 20% Aluminum LME-price minus 20% Scrap iron LME-price34 minus 50% A highly relevant fraction for the revenue are the PWBs. Among others, their commodity price is determined by the prices of Au, Ag, Pd and Cu. The price calculation used in this study is based on 30 Information provided via mail by ADS Maroc 31 Average commodity prices for the period from January 1st 2010 to November 8th 2010 32 Prices for steel billets 33 London Metal Exchange; www.lme.com 34 LME-price for steel billets 25 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco the business model used by Umicore Precious Metals35, Belgium. Hereafter, the PWB prices for the respective minimum lot sizes based on the average metal prices of 201036 are given: PWB high grade (Au content of 200 - 300 ppm) +/- 9’000 €/t (lot size of 5 tons) PWB medium grade (Au content of 100-200 ppm) +/- 5’500 €/t (lot size of 7 tons) PWB low grade (Au content of 50-100 ppm) +/- 2’500 €/t (lot size of 10 tons) Those prices for PWB include all charges by Umicore, but do not comprise the transportation costs. The prices for batteries which Umicore Battery Recycling offers depend on the current commodity prices for cobalt (in case of Li-ion batteries) and nickel (NiMH batteries)37. According to Umicore, the average share of those two types of laptop batteries is approximately 87,5% Li-Ion and 12,5% NiMH batteries. 2.4.4 Transportation Costs Many different kinds of transportation are involved in e-waste management, in particular if it is interlinked to the global markets. First, the appliances must be collected to a facility, then the respective fractions are distributed to national and international downstream processing. In this particular case, transportation by lorry, by train and by ship was considered. The table below gives an idea about the most important costs which were taken into account in the model. Table 6. Transportation costs (1 € ≈ 11,2 MAD; 4.11.2010). Type Details Costs Source Lorry, 8t Urban collection Casablanca with driver and 4 workers, incl. Taxes 2'700 MAD/day Al Jisr Lorry 1 Container from Skhirat to Casablanca 2'000 MAD Mac//Z Lorry Regional transport, Morocco 0.5 MAD/(t*km) Mac//Z Ship 6m-container; Casablanca to Belgium 180 - 200 € Mac//Z Ship 6m-container; Casablanca to Hamburg 250 € Mac//Z Ship 6m-container; Casablanca to China 680 € Mac//Z Ship 6m-container; Casablanca to Spain 120 € Mac//Z Train/Lorry 6m-container; Hamburg to Berlin 450 € Zippel 35 www.preciousmetals.umicore.com 36 Average commodity prices for the period from January 1st 2010 to November 8th 2010 37 The prices for batteries offered by Umicore Batteries (www.batteryrecycling.umicore.com) are confidential. 26 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Lorry 100 km in Spain ~500 € Mac//Z With regard to the transport types, for the transport by land significantly higher transport costs must be expected than for the transport by sea. Furthermore it was found in the model results that the share of the transport costs per ton of the total downstream processing costs per ton is generally rather small. 2.4.5 End-processing costs Depending on the generated volume of the respective fractions, the end-processing can result in a non-negligible expenditure. In the subsequent table, some of the relevant end-processing data are compiled. Table 7. End-processing costs for different fractions. Fraction Costs Source Complete cathode ray tube, undestroyed 60 €/t GRIAG CRT glass, crushed, uncleaned 75 €/t GRIAG CRT monitor, without casing 250 €/t Recilec CCFL (Hg-Lamps from flat screens) 880 €/t Recilec 0 €/t* MBA Plastic, with and without flame retardants Battery (Li-Ion & NiMH) See commodity prices (chapter 2.4.3) Printed wiring circuit See commodity prices (chapter 2.4.3) * may be cost or revenue, sample lot has to be shipped to MBA China in order to set the price 27 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco 3 Model Development 3.1 Outline of Relevant Elements This chapter provides an outline of the stages that should be covered by a sound e-waste management system. Furthermore, in this chapter it is defined which stages comprise which specific processes. For several processes, a short description/definition can also be found in the glossary at the end of this report. C onsum e C o lle ct Corporate consumer B2B-logistics Function R e c o ve r Mate rial & En ergy Sorter & manual pre-processor D is p o s e Landfill Refurbisher Informal sector Private consumer Mechanical Pre-processor Hazardous waste landfill Collection sites Repairer Refiner Incinerator (no energy recov.) Retailer CONSUMER COLLECTION FUNCTION RECOVERY MATERIAL & ENERGY RECOVERY New resources Figure 13. e-Waste process chain. 3.1.1 Administration Administration comprises multiple activities in order to organize the employees and the existing resources efficiently so as to achieve the objectives of a sound e-waste recycling. Instead of describing all those activities separately, the most important are listed below: 28 Coordination and strategy of in-house operations (collection, dismantling, transportation) Human resource management Budgeting and accounting Organization of public relations (see 3.1.2) Organization of the monitoring Current Situation and Economic Feasibility of e-Waste Recycling in Morocco 3.1.2 Public Relations The awareness of the social and environmental implications and opportunities of e-waste among consumer has a strong impact on the success of e-waste collection, in particular in households. This awareness is generally quite low in Morocco and poses a major obstacle especially for the collection of appliances from households. One could argue that a strategy to overcome this challenge is to significantly raise the budget for public relations. As experiences in other countries demonstrate, an adequate public relations (PR) campaign aiming at a stimulation of the awareness among consumer can account for a significant percentage of the overall budget of e-waste businesses38. But contrariwise the present project doesn’t dispose of the dimension and potential to foster the awareness of a whole society. Hence, it is certainly necessary to promote the business and sensitize the consumer to the solution offered. But there’s no point in spending too much resources given the uncertainties of the actual effect on the return of WEEE. The most crucial points which a PR campaign for WEEE collection should focus on are: dissemination of appropriate information among consumers, coherence and simplicity of information, easy access to information for consumers and credibility and transparency of the e-waste businesses. The expenditures related to a PR campaign can vary a lot according to size, design, duration, etc. of it. Hence, its costs are included in the model under further costs (see chapter 3.2.1). The last point listed above indicates that instead of wasting too much funds for PR, the businesses should rather focus his efforts on a collection design which facilitates easy access, good service and transparent and plain information to consumers. In other words: the collection success of a business is strongly dependent on a good coordination of the PR strategy and the collection setup (chapter 3.1.4). 3.1.3 Financing schemes If the intrinsic value of the obsolete appliances is not covering the complete expenditures for the WEEE management, additional sources for revenues have to be accessed. This can happen by different financial schemes, which are briefly described below. Fee on disposal At the collection site, a fee is paid by the final user at the moment of return of his obsolete appliance. Advanced recycling At the moment of purchase, the consumer pays a fee on his new 38 Battery recycling Switzerland, 2008: 14% of total system costs (INOBAT 2009) 29 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco fee (ARF) appliance which funds the WEEE management of obsolete appliances. Deposit – refund Similar to the ARF-scheme, but the initial fee paid by the consumer is not only financing the WEEE management, but includes a deposit which is refunded at the return of the obsolete product (incentive for return). Fee on import For each appliance imported, the importer pays a specific amount (fee) into a recycling-pool, which is managed by the manufacturer (or an association, if several manufacturer cooperate). General Taxes The funds required for WEEE management are levied by general taxes. 3.1.4 Collection In the present report, collection covers collection and take-back from the final user, interim storage and transportation to the recycler and/or dismantler. For the storage of appliances in the collection channel the same standards apply as for the storage of appliances in the dismantling or recycling facilities (see chapter 2.2). The collection of the obsolete appliances is a crucial part of an e-waste business. On the one hand the whole treatment chain depends on the supply by this first stage. And on the other hand an efficient and successful collection is probably the stage which is the most challenging to design and plan. Its success depends strongly on the active participation of consumers, in other words of households, companies and administrations. The basis for an efficient collection scheme is its accessibility and efficiency for consumers and a coherent and adequate dissemination of information to the consumer (see chapter 3.1.2). Usually, the collection causes a relevant share of the costs in an e-waste business. 3.1.4.1 Precondition In order to be able to adapt the collection to local conditions, the relevant information gathered in the study of GIZ (2010) is summarized below. e-Waste stock and flow estimates (2008) Table 8 and Table 9 show the e-waste stock and flow in 2008 for Morocco estimated by GIZ (2010), including a comparison to the estimations for 2008 and 2012 from Rochat and Laissaoui (2008). The predominance of the households in matters of weight of the total equipment stock (89%) and flow (81%) in 2008 is apparent (for PCs, TVs, mobile phones and audio & video devices). This imposes the importance of giving a general priority to the households for a business which takes all the mentioned appliances into account. Going further into detail, it can be revealed that the share of each appliance differ significantly from the total. In respect of PCs, the nonhousehold consumers (public and private sector) will generate approximately 50% of obsolete PCs in 2008. But in the case of TVs, mobile phones and audio & video devices nearly all the appliances are found in households. For these latter appliances, the non-household sector can be neglected. 30 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco The obsolete PCs arisen in the public and private sector are especially attractive for e-waste collection, because the stock of PCs in a company is usually substituted as a whole. This reduces significantly the collection expenditures. Table 8. Estimated e-Waste stock in Morocco, 2008 & 2012 (in tons). Year, source Application PCs (ton) PCs (ton) TVs (ton) TVs (ton) Mobile phones (ton) Mobile phones (ton)2 Video & Audio (ton) Video & Audio (ton)3 Total (ton) Total (ton) Households 28'818 49.0% 152'732 99.2% 2'875 100.0% 91'009 99.0% 275'434 89.5% 2008, GIZ Non-Household 30'049 51.0% 1'255 0.8% 0 0.0% 919 1.0% 32'223 10.5% Total 58'867 100.0% 153'987 100.0% 2'875 100.0% 91'928 100.0% 307'657 100.0% 2008, Empa Total1 60'048 2012, Empa Total1 75'322 152'540 158'581 3'543 4'256 216'1314 238'1594 Source: Empa by (Rochat & Laissaoui 2008) Distribution based on Rochat and Laissaoui (2008) 3 Distribution according to TVs, ≈ Matériel Grand Public horc TV 4 Video & Audio volumes not included 1 2 Table 9. Estimated e-Waste flow in Morocco, 2008 & 2012 (in tons/year). Year, source Appliance PCs (ton) PCs (%) TVs (ton) TVs (%) Mobile phones (ton) Mobile phones (%)2 Video & Audio (ton) Video & Audio (%)3 Total (ton) Total (%) 2008, GIZ Households Non-Household 7'392 7'512 49.6% 50.4% 15'273 125 99.2% 0.8% 575 0 100.0% 0.0% 10'673 108 99.0% 1.0% 33'913 7'745 81.4% 18.6% Total 14'904 100.0% 15'398 100.0% 575 100.0% 10'781 100.0% 41'658 100.0% 2008, Empa 2012, Empa Total1 Total1 13'810 15'064 15'254 15'858 1'772 2‘128 30'8364 31'7734 1 source: Empa by Rochat and Laissaoui (2008) Distribution based on Rochat and Laissaoui (2008) 3 Distribution according to TVs, ≈ Matériel Grand Public horc TV 4 Video & Audio volumes not included 2 The numbers provided by the two studies indicate practically the same range of e-waste volumes for 2008. Only the estimated volumes of mobile phones differ by a factor of three. 3.1.4.2 Potential Collection Channels Depending on the accessibility and density of the appliances in the different sectors, various channels have to be established in order to collect them efficiently. In particular, households on the one hand and the private and public sector on the other hand must be distinguished. 31 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Due to the less challenging accessibility of the PCs in the public and private sector (companies and authorities) and the fact that IT is the business segment of HP, it is recommended that in a first phase a collection channel focuses on those PCs (B2B-channel39). In the beginning, this should ensure a basic input into the recycling facility and allow for a gradual build-up of the further channels to cover the obsolete appliances generated in the households. Potential collection channels for this purpose are: Direct collection of the appliances at the companies, respectively authorities by: o participating in their calls for tenders. As long as the companies/authorities do not impose some minimum conditions for treatment, a bidder of the formal sector runs a high risk of losing the calls for tenders given its higher treatments costs compared to a bidder of the informal sector (see also Valdeme, chapter 2.3.1.1). o negotiating directly with the companies/authorities in order to get the appliances circumventing a call for tenders. Depending on the appliance and the companies/authorities, a price can be fixed. As a return service, the recycler can offer an environmentally sound treatment of the appliances and possibly even a certificate for this service. An existing example for this kind of collection is the Green Chip project of Al Jisr40, see chapter 2.3.1.1. Indirect collection of the appliances via the approximate 20 retailers supplying the “major account segment”41. This alternative could become very effective to collect the appliances of major consumers. The basis for the success of this alternative is a contract between the retailers and the major consumers which assign an exclusive take-back right for the old appliances to the retailers. With its strong PC market share of 35% in Morocco (Rochat & Laissaoui 2008), HP can possibly bring the retailers to conclude such kind of contracts with their consumers. At the same time the presented numbers indicate that in the medium and long term a recycling facility treating not exclusively IT equipment cannot be run depending primarily on a simple B2B collection model. From the distribution of the appliances between households, the private and the public sector, it can be deduced that the main collection channels must be adjusted to get access to the appliances in the households, whose collection requires a much higher effort than in the other sectors. The following collection channels exist to collect those appliances (C2B): Return of the obsolete products to the selling points by consumers (supermarkets, specialized shops, etc.). Integration of and cooperation with the informal sector (scavengers) by using its experience and existing collection channels and providing formal labour opportunities. 39 In a so-called Business-to-Business (B2B) model the appliances are collected directly in the companies. 40 http://www.aljisr.ma/article.php3?id_article=187 41 Major account segment: “primarily made up of government agencies and public bodies (Ministries and Offices), as well as major private actors (banks, insurance companies, industrial companies, multinationals)” (Rochat & Laissaoui 2008) 32 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Municipal or private collection points for WEEE (possibly together with other waste streams). Periodic mobile collection with direct pick-up from the households (door-to-door collection). Reverse Logistics42 Reverse logistics refers to a collection system that capitalizes the existing distribution channels of new products in order to gather obsolete products along those channels, but in the opposite direction. The idea of such a collection design is reducing the transportation effort by reducing the number of pick-up points and therefore capitalizing the transportation which is performed anyway. The functioning of an exemplary design of reverse logistics is given in Figure 14. Prod./Imp. A PRODUCER/ IMPORTER WHOLESALER/ INTERMEDIARY A Prod./Imp. B A/B B RETAILER Capitalization of existing distribution channels Pick up by contracted transport companies, alternative A: From retailer Pick up by contracted transport companies, alternative B: From producer/importer Figure 14. Reverse logistics - capitalization of distribution channels. In this figure, the red lines represent the stages where existing distribution channels are capitalized in the opposite direction. In doing so, the pick-up points are reduced by accumulating the obsolete appliances along those channels towards the wholesaler, respectively manufacturer/importer. 42 http://en.wikipedia.org/wiki/Reverse_logistics 33 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco 3.1.5 Transportation The transportation of e-waste includes various stages beginning with collection of the appliances and ending with the transportation within and out of the recycling and refining chain (moving processed parts or material between different facilities, disposal, export, etc.). Usually, the transportation represents a relevant cost share43, whose actual amount strongly depends on factors like the geographic coverage of collection, the collection and logistics design and the legal guidelines (classification as hazardous waste). For legal requirements or requirements by HP with regard to transportation, see chapters 2.1.2 and 2.2.4. 3.1.5.1 National National transportation of e-waste respectively its components and materials will mainly be performed by truck, but as Morocco disposes of one of the most modern railway systems, transportation by train should be considered, too. See also chapter 3.1.4.2 (reverse logistics). 3.1.5.2 International (Export) Within the realms of possibility, an objective of the project is to capitalize national recycling and refining options. In case of the processing of base metals or other material in metal smelters or cement production, this is definitively possible and often economically and environmentally advantageous. The export of components or materials to state-of-the-art refining plants generally involves transportation by ship (see chapter 0) to Europe, North America or Asia, which entails more complicated transportation procedures like shipment completion and customs clearance, that raise the transportation costs. The main international ports Casablanca, Mohammédia and Jorf Lasfar are located around Casablanca (approx. 72% of the maritime trade44), but since 2006/07 an important port with a container terminal is in operation in Tangier. It has to be considered that Morocco is a signatory state of the Basel Convention (see chapter 2.1.4). For this reason, the transboundary movement of hazardous waste requires a notification. 3.1.6 Sorting, Handling and Storage This chapter refers to the general manipulation of the appliances in any treatment facility. For reasons of control, efficiency and security, it is essential to take account of : 43 44 an organized and logistically reasonable handling, Switzerland, EU WEEE categories 3 & 4: 21% of total expenditures (Swico 2009) Source: Portail national du Maroc, http://www.maroc.ma/PortailInst/An/MenuGauche/Invest+in+Morocco/Infrastructure/Road+infrastructure+ports+industrial +zones.htm, accessed on May 25th, 2010 34 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco a careful documentation of the appliance and material stocks and flows, the protection of the workers and a safe and proper handling and storage of the appliances and their respective components (prevent release of hazardous substances). Upon arrival at the dismantling facility, as a first step the appliances pass through a sorting step (not definitive, to be adapted): TVs Flat screens Desktop PCs CRT screens Desktops Notebooks Peripherals Printers Mobile phones Notebooks Printers Mobile phones Cables & Power supplies Packaging Figure 15. Exemplary sorting tree for the main appliances considered in the study. Afterwards, if no immediate transfer to the treatment is possible, the classified appliances are stored properly again. These stages are apt for a cooperation with scavengers (informal sector). 3.1.7 Manual Dismantling The main goal of the manual dismantling (which is part of the pre-processing) is to prepare the obsolete appliances for the downstream processing by way of breaking them down into their respective fractions. The suitable dismantling depth is highly dependent on the further treatment those fractions pass through. The objectives of the dismantling are the following: separation and sorting of different materials and components, preparing them for further treatment, removal of contaminated components (depollution), concentration of particularly valuable components by separating them (optimize material revenue), generation of employment and inclusion of the informal sector. 35 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Particularly in developing countries, the design of the manual dismantling is essential, given that labour costs are rather low compared to industrialized countries. The low wages allow for a relatively deep manual dismantling which results in a high recovery rate of the treated material maximizing revenue. As mentioned above, this stage is apt for a cooperation with scavengers (informal sector). 3.1.8 End-processing After the dismantling stage, the separated fractions don’t pass through any further major treatment in the dismantling facility. An exception is an eventual shredding step of certain fractions (plastics, metals, etc.) in order to comply with acceptance requirements of their purchaser and facilitate their transportation. The end-processing is realized in different industries which handle the materials and components separated during the dismantling process. Some of the fractions which have to be supplied to endprocessors are delineated below. Table 11 in chapter 3.2.1.1 gives an outline of the selected destinations for the materials and components in the model calculations. Printed Wiring Boards PWBs consist of a complex mix of metals and organic compounds. A typical composition of a PWB from a PC is 7% Fe, 5% Al, 20% Cu, 1.5% Pb, 1% Ni, 3% Sn and 25% organic compounds. Additionally, 250 ppm45 Au, 1000 ppm Ag and 100 ppm Pd and traces of As, Sb, Ba, Br and Bi can be found (Hageluken 2006). The PWB composition is on the one hand an opportunity due to the high value of the inclosed precious metals, but on the other hand it poses a risk due to the occurrence of hazardous substances. Given this material complexity, a major challenge of the PWB treatment is to achieve an efficient recovery of the various metals without releasing hazardous substances. On the global markets, the end-processing of PWBs is usually performed in state-of-the-art refineries which combine hydro- and pyrometallurgical operations (see Table 4). In those state-ofthe-art facilities a high recovery rate for a wide range of metals is possible. Nevertheless, methods like wet chemical leaching of metals are still carried out in many countries, predominantly in the informal sector. Those processes do not only have adverse environmental impacts and pose a threat to human health, but are also inefficient in terms of metal recovery. A study conducted in India concluded that the metal loss in those processes carried out in the informal sector is significant compared to the refining in an integrated metal smelter (Keller 2006). Batteries Many types of batteries are found in e-waste and their composition is diverse. Some types of them contain hazardous substances which must be disposed of appropriately. 45 36 ppm – parts per million Current Situation and Economic Feasibility of e-Waste Recycling in Morocco In the appliance scope considered in this study, the main volume of obsolete batteries is found in laptops. Thereof, roughly 10 – 15% are NiMH batteries and 85 – 90% are Li-Ion batteries (UBR 2010). Furthermore, small buffer batteries with different shapes (e.g. button cells) can be found on PWBs (Gabriel 2000). Depending on the existing alternatives, it may be reasonable not to remove those small batteries from the PWBs and supply them to an integrated metal smelter which treats them according to the required standards (see chapter 2.3.2.1). Schluep et al. (2009) recommends to send the batteries of electrical and electronic equipment to dedicated plants for the recovery of cobalt, nickel and copper. In Europe, more than 40 specialized battery recycling companies exist (EBPA 2010). According to Valdeme, the batteries resulting from their e-waste dismantling are supplied to a company in France. No further information on the plant was provided. In the model, the laptop batteries are assumed to be treated at Umicore Battery Recycling in Hoboken, Belgium. Among other materials, Umicore is specialized in the recovery of some metals in NiMH and Li-Ion batteries. Plastics Various types of plastic exist, of which ABS, polystyrene (PS) and polypropylene (PP) are usually used in computer manufacturing. In addition, many other types are used depending on their characteristics, as well as plastic compounds. Generally, it is difficult to avoid a deterioration of quality in plastics recycling (downcycling). However, recent progress in process technology allows the recovery of some kinds of plastics (see chapter 0). A crucial step to reduce this deterioration is the appropriate separation of the various plastic types, which requires either state-of-the-art technology or an extensive know-how of the plastics. Concerning the plastics used in electronic equipment, a major problem are the halogenated flame retardants (FR) found in various plastics and the polyvinyl chloride (PVC) in wire insulation. If those kinds of plastic are burnt, toxic dioxins and furans is generated. Therefore, this fraction requires a special treatment. Cathode Ray Tubes (CRTs) CRT monitors from computers and TVs account for a large share of the e-waste volume in the EU categories 3 & 4. They represent an environmental hazard due to their fluorescent phosphor layers which contain several toxic metals (e.g. cadmium) and due to the high lead oxide concentration in the cone glass of the tube. Among the potential controlled disposal options, the following are mentioned in Schluep et al. (2009): “The secondary production of new CRT glass (screen to screen; (lead containing) cone to cone glass; to a lesser extent for mixed glass to cone glass), Smelter options (in particular mixed glass to Cu/Pb smelters), 37 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Other industry (e.g. pane glass to ceramic industry as feldspar replacement; funnel glass to cement industry as coarse gravel replacement; mixed glass to cement industry as fine gravel bricks or to salt mine as filler).” 3.1.9 Controlled Incineration and Disposal While the bulk of e-waste fractions can be recycled, certain fractions are not suitable for recycling and therefore have to be disposed of. The most common solution for those fractions is the controlled incineration or/and the disposal in hazardous waste landfills. Non-hazardous waste fractions that are not recycled, may be disposed of in a controlled municipal waste landfill. Apart from municipal waste landfills, no fully developed solution for the incineration or the disposal of hazardous waste exists in Morocco. This forces a responsible e-waste business either to stock or to export those e-waste fractions to adequate plants abroad. Nonetheless, progresses of emerging national initiatives should be kept track of, e.g. the CNEDS46 hazardous waste plant. 3.1.10 Monitoring Even though it is readily ignored, the monitoring of the recycling and the control of accounting represent the basis for the credibility of a recycling business. Its main functions are: Ensure of the compliance with (HP) requirements Ensure of the legal compliance Ensure fair/equal market conditions (level playing field) Control the mass flow within and between the businesses (collected volume, treated volume, etc.) Collect and manage relevant data Establish the basis for and give credibility to the certification of the facilities 3.1.11 Refurbishment Mainly three reasons exists to refurbish obsolete appliances. Firstly, it’s an business decision due to the revenue which possibly can be generated. Furthermore can be an environmental advantage to extend the lifetime of the devices and thereby reducing the volumes of generated e-waste. And last but not least the refurbishment provides also a social benefit by generating jobs and procuring low-budget or even free appliances to the costumers. According to StEP47, “refurbishment comprises any action necessary to restore a unit up to a defined condition in function and form that may be inferior to a new unit. The output product meets 46 Centre National d’Elimination de Déchets Spéciaux; http://www.minenv.gov.ma/10_projets/cneds.htm 47 StEP – Solving the E-Waste Problem; http://www.step-initiative.org/ 38 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco the original functionality specifications. To refurbish a product requires disassembling the unit only to the extent that is required to ensure the testing and reprocessing of all components not meeting these specifications. The unit’s composition and design is not changed significantly. The term recondition is understood synonymously for refurbish” (StEP 2009). Moreover, it should be considered that refurbishment implies a supplementary sorting of all collected devices and a supplementary testing of the devices selected for refurbishment. Thus, to operate refurbishment requires a not negligible additional labour force. 39 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco 3.2 Model Description Based on the gathered information during the present study and during the investigations of the report by GIZ (2010), a Microsoft Excel based model of an e-waste business was developed in order 1. to estimate the rough cash flow of a potential e-waste business, and 2. to deepen the knowledge of the sensitivities of the business in order to identify the key processes and parameters. The purpose of the model is to consider all relevant financial flows which occur during the operation of a local e-waste business. The model core consists of a dismantling operation, where the appliances are disassembled manually. It is designed to include several appliances of the EUWEEE directive categories 3 and 4: PCs (LCD & CRT monitor), laptops, printers, mobile phones, TV sets (LCD & CRT monitor), audio devices and video devices. Around this dismantling operation, the following components associated to e-waste business are taken into account: Transports Transports during collection, from dismantling to downstream processing Collection Collection infrastructure, remuneration of certain stakeholders Downstream processing (mainly recovery and disposal) Treatment in recovery and disposal facilities Administration Labour and rental costs, further costs PR and monitoring costs were assigned to the further administration costs (input parameter as % of total administration and dismantling costs) Refurbishment of desktop PCs and laptops, comprising a previous sorting and testing of the collected appliances (optional) Labour and rental costs, further costs as well as the sale of the refurbished appliances were taken into account. The cost calculation for the dismantling operation itself comprises the labour and rental costs plus further costs as a percentage of the former. 40 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Collection Dismantling/Administration • Model input • Parameter variation • Labour expenditures • Rental costs • Further costs etc. • Model results End-processing costs Refurbishment (optional) PWB price calculation Interface Transportation costs • Transport costs • Labour expenditures • Price paid to suppliers (incentive) WEEE composition • % of appliances apt for refurbishment • Labour expenditures • Sales price of refurbished appliances Material composition • Combines composition data with end-processing and transportation costs Figure 16. Simple schema of the MS Excel model. The flexibility of the model is its crucial feature. Many of the parameters in the model are adjustable, e.g. the volume and the composition of the collected e-waste, the downstream processors of the different e-Waste fractions, the commodity prices, etc. Nevertheless, for the final evaluations with the model most of the parameter had to be fixed. To approximate realistic conditions, the most important assumptions made for this purpose were shared and adjusted with stakeholders involved in a similar project in Cape Town, South Africa48 (Dittke 2009). 3.2.1 Assumptions for the Reference Scenario The given assumptions provide a rough overview of the most relevant model parameter settings that were used for the reference scenario in this study. This reference scenario was arranged in a way that a realistic business model is reflected, considering factors like appliances scope, requested standards, experiences made in South Africa, etc. For the subsequent parameter sensitivity analysis, these basic settings of the reference scenario were varied (chapter 4.2). Some further assumptions are given in appendix 7.4. 48 Material dismantling and recovery facility (MRF) in Cape Town, South Africa – assumptions shared: dismantling productivity, required area for storage and dismantling. 41 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Facility location Casablanca Appliance scope Desktop PC (LCD & CRT monitor) Laptop Printer TV set (LCD & CRT monitor) Ø Appliance composition See Table 10, mainly based on (GIZ 2010) Further costs 40% of total considered costs for dismantling & administration, this includes PR and monitoring costs Collection scheme 50% collected via B2B scheme (companies, administrations) 50% collected via informal sector (households) Price paid to suppliers Informal sector: 0.5 MAD/kg for CRTs, 2.5 MAD/kg for other WEEE49 B2B: 0.25 MAD/kg for CRTs, 1.25 MAD/kg for other WEEE Commodity prices Average prices for 201050 (Au, Ag, Pd, Cu, Fe, Al considered) Recovery 75% of potential value is recovered by dismantling Minimal wage 3’000 MAD/month Dismantling productivity 2.5 tons of WEEE per month per workforce (based on experiences from Cape Town) appliance appliance 34.5% 4.1% 12.5% 3.8% 0.0% 42.0% 5.0% 0.0% 0.0% Video LCD TV 1.4% Audio CRT TV 6.2% phone Printer 0.9% Mobile Laptop monitor LCD monitor CRT (CPU) Desktop Table 10. Appliance composition Morocco (based on GIZ (2010) and assumptions, see appendix 7.5). General appliance composition: 16.4% 18.7% 1.4% Appliance composition for the reference scenario: 19.9% 22.7% 1.7% 1.1% 7.6% 49 1 € ≈ 11,2 MAD; 4.11.2010 50 Average commodity prices for the period from January 1st 2010 to November 8th 2010 42 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco 3.2.1.1 Downstream processing Through the dismantling of the appliances various material fractions are generated. For each of those fractions, several downstream processors are conceivable. Table 11 gives an overview of the different downstream processing alternatives which were arranged. Hereafter, the purpose of each alternative is described: Alternative 1 “The downstream processing is carried out in Morocco, irrespective of the costs or the environmental performance.” Alternative 2 “The downstream processing generates as much revenue as possible and causes as little costs as possible, irrespective of the treatment location or the environmental performance.” Alternative 3 “Main purpose is to carry out the downstream processing in an environmental sound manner as far as possible. Additionally, the downstream processing is economically optimized, considering national processors as well as international processors.” Table 11. Downstream processing scenarios for each fraction (alternative 3 was chosen as reference sceanario). Fractions Copper Aluminum Iron PWB high grade PWB medium grade PWB low grade CRT glass Plastics Plastics with FR Cables Waste Hg-Lamps, LCD Batteries Alternative 1 Mac//Z Mac//Z Mac//Z Valdeme Valdeme Valdeme Landfill Aquaflor Aquaflor Mac//Z Landfill Landfill Landfill Alternative 2 Mac//Z Mac//Z Mac//Z Umicore, Belgium Umicore, Belgium Umicore, Belgium Landfill Export to China Export to China Mac//Z Landfill Landfill Umicore, Belgium Alternative 3 Mac//Z Mac//Z Mac//Z Umicore, Belgium Umicore, Belgium Umicore, Belgium Griag, Germany MBA, China MBA, China Mac//Z Disposal, Spain Relec, Spain Umicore, Belgium The selection of the different downstream processors is highly relevant for the environmental and financial performance of the e-waste business. HP requires strict environmental and EHS standards (see chapter 2.2), so in a potential pilot business only downstream processors that comply with those standards can be considered. Thus, of the 3 alternatives presented in Table 11 alternative 3 was selected as standard downstream processing for the reference scenario and all the further parameter sensitivity analysis. 3.2.2 Refurbishment Module Apart from the main division of the business – the recycling of e-waste –, an additional potential division is the refurbishment of suitable devices which are collected in order to sell them. The explicit motivation for this supplementary activity is to establish an additional revenue source. 43 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco However, if the refurbishment of collected appliances does not contribute to a better financial performance of the business, there is little reason to include this business activity. In the model, the whole refurbishment comprises several stages. Firstly, all the collected appliances are sorted according to their suitability for being refurbished. Then, those devices are tested for their functionality and finally the refurbishment itself is carried out. The purpose of this module is to get an idea of the uncertainties related to the question: What would be the economic effect of an inclusion of the refurbishment under different circumstances? 3.2.2.1 Basic Assumptions Due to a considerable lack of hard data concerning the refurbishment of e-waste, several rough assumptions had to be made. Some of those assumptions rely on experiences made in South Africa51, but nevertheless the results of the refurbishment modeling should be interpreted carefully. Appliances scope Only PCs (CRT & LCD monitors) and laptops Considered processes Sorting, testing and refurbishment Further costs 70% of total considered costs Suitable share From B2B-collection: 20% of collected appliances suitable for refurbishment From household collections: 5% of collected appliances suitable for refurbishment Based on generated e-waste (GIZ 2010) Laptop share Rate refurbishment recycling Worker’s productivity Product prices – 50% of the material assigned to refurbishment ends up as e-waste again Sorting: 200 units/month per worker Testing: 100 units/month per worker Refurbishment: 100 units/month per worker Refurbished PC: 1’200 MAD52 Refurbished laptop: 2’500 MAD Revenue factor 100% Work space / worker 50 m2 51 Cape Town Material Recovery Facility (MRF) 52 1 € ≈ 11,2 MAD; 4.11.2010 44 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco 4 Model Results This chapter is divided into three sub-chapters. In chapter 4.1 the model results for the reference scenario are reproduced, in chapter 4.2 the results for the parameter sensitivity analysis based on the reference scenario and in chapter 4.3 the results for the additional refurbishment module. Generally, it should be recalled that the model results have to be interpreted with caution, always bearing in mind the relative scarcity of reliable data. Undeniably, a more reliable model would require further data, among others data resulting from first operational e-waste experiences in Morocco. Nonetheless the nucleus of the model is based on data which outline realistic circumstances, such as the average material composition, the labour costs, the treatment prices, etc. Additionally, the necessary assumptions were discussed internally at Empa which disposes of a long-standing experience in the field of e-waste in developing countries. Starting from this basis, the model allows to understand the basic mechanisms and to analyse the sensitivities of the business. 4.1 Reference Scenario Figure 13 shows the resulting cost/benefit of the e-waste business in Moroccan Dirham at given volumes of treated appliances (PCs, printers, TV sets). The black line (“Reference Scenario”) reflects the resulting cost/benefit values which were calculated at 50 t/y-intervals of the treated volume, while the dashed red line is a polynomial trendline of the former. It is estimated that the break-even of the e-waste business for the reference scenario is at approximately 2'600 t of e-waste treated per year. Focusing only on the downstream processing, each kilogram of e-waste results in a revenue of approximately 4.5 MAD. Hence, under the given conditions the e-waste business is only financially sustainable if the total costs per kilogram of treated e-waste do not exceed this value. Due to the uncertainties of the model, those numbers should be interpreted prudently. 45 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Cost/Benefit [in 1'000 MAD] 200 0 -200 -400 -600 Reference Scenario Trendline -800 -1'000 0 500 1000 1500 2000 2500 3000 WEEE treated [t/y] Figure 17. Cost/Benefit for the reference scenario (1’000 MAD ≈ 88 €; 4.11.2010). There are two main aspects in the graph which draw the attention. (1) The unsteady fluctuation of the black graph is mainly a consequence of the employment of further personnel for dismantling and administration at increasing volumes. While the revenue, which is generated by the sale of ewaste fractions, rises linearly, the hiring of each new employee cuts back the cash flow at defined intervals. The irregularity of the fluctuation is an effect of different modelling steps for the cost/benefit calculation (step is set for 50 t/y) and the hiring of further personnel (step is set at 30 t/y per new employee). (2) The other peculiar aspect is the gradient of the graphs, which indicates mainly two stages of development. This is better visualized by the dashed red trendline. The first stage ranges from 0 to 750 t/y and exhibits a steeper gradient than the gradient of the second stage (> 750 t/y), which remains constant to the top. This subdivision of the gradient can be explained by the influence of the fix costs, which is significantly higher at low treated volumes. In this first stage, the share of the fix costs in the total costs decreases with increasing volumes, while this share does not change essentially anymore in the second stage. However, in reality the share of the fix costs in the total costs might increase again at bigger volumes, due to a substantial rise of the (fix & variable) collection costs towards a high collection quota. This is not considered in the model. 4.1.1 Revenue Share The revenue of the e-waste business is generated by the commercialization of the different fractions that result from dismantling (see Table 12). Depending on the material composition of each appliance (see appendix 7.4), the appliance composition of the e-waste stream and the selected downstream processing alternative, differing revenue shares result. 46 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Table 12. Revenue share per fraction for each appliance (with downstream processing alternative 3). PWB PWB PWB Cu Al Fe high grade medium grade low grade Cables 0.2% 8.5% 17.0% 0.0% 66.6% 4.5% 3.1% PC/Server* 55.3% 4.6% 3.0% 0.0% 0.0% 37.0% 0.0% CRT monitor* 3.0% 4.2% 6.3% 84.2% 0.0% 0.0% 2.2% LCD monitor* 12.0% 8.7% 9.2% 0.0% 68.6% 0.0% 1.5% Laptop* 18.7% 0.5% 7.4% 0.0% 70.3% 0.0% 3.0% Printer* 0.0% 0.8% 0.4% 98.8% 0.0% 0.0% 0.0% Mobile Phones 39.7% 0.0% 6.1% 0.0% 0.0% 54.2% 0.0% CRT TV* 2.8% 3.8% 5.7% 86.7% 0.0% 0.0% 1.1% LCD TV* 27.9% 2.2% 12.8% 0.0% 0.0% 57.1% 0.0% Audio 20.7% 3.0% 15.8% 0.0% 0.0% 60.5% 0.0% Video * appliance considered in reference scenario For the appliance composition in the reference scenario and under consideration of the average appliance composition given in Morocco (GIZ 2010), in particular copper, medium and low grade PWBs are significant for the overall revenue of the business (all appliances in the reference scenario). They amount to approximately 75% of the total income as Figure 18 shows. Cables Plastics 1.3% 0.0% PWB low grade 23.1% Battery 0.2% Rest 0.2% Copper 25.0% Aluminium 4.0% PWB medium grade 26.2% Iron 8.4% PWB high grade 11.6% Other metals 0.0% Figure 18. Revenue share per fraction for reference scenario (PCs, printers, TV sets). In relation to the commercialization of PWBs – and considering that their revenue share amounts to more than 50% – it is important to take the minimal lot sizes into account which are required by Umicore53. If the volumes of PWBs do not exceed those minimal lot sizes, Umicore does not 53 Other integrated metal smelters seem to demand higher minimal lot sizes. 47 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco accept the PWB lots and no revenue can be generated (until the required volume is reached). Below, the volumes of treated e-waste to reach the minimum lot size of PWBs are indicated, according to the reference scenario. Table 13. Required minimal lot size and necessary throughput to reach it (Umicore). PWB type Minimal lot size, Umicore Necessary throughput [treated e-waste/year] Low grade 10 t 200 t/y Medium grade 7t 280 t/y High grade 5t 720 t/y 4.1.2 Expenses Share The three pie charts below indicate the relative share of the different processes in the total costs at different e-waste throughputs. At a low throughput of 100 t/y, the administration of the business amounts to one third of the total costs, while the shares of the processes which cause rather variable costs than fix costs still remain small (downstream processing, dismantling). The big share of the collection costs is caused by a collection scheme for the informal sector with high fix costs. At higher throughputs the percentage of the labour intensive dismantling grows constantly and adds up to more than 40% at a treated e-waste volume of 2000 t/y. In contrast to this, the administration share decreases to 10%. The fact that the cost shares do not change significantly between a throughput of 500 and 2000 t/y confirms the segmented gradient in Figure 17 at ~750 t/y. 100 t/y 500 t/y 18.9% 2000 t/y 0.0% 0.0% 0.0% 10.2% 16.2% 32.3% 36.1% 15.4% 13.1% 43.3% 5.4% 34.6% Dismantling Facility Administration Collection Refurbishment 32.0% EndProcessing Downstream processing Figure 19. Expenses share at different volumes of treated e-waste per year. 48 42.3% Current Situation and Economic Feasibility of e-Waste Recycling in Morocco 4.2 Parameter Sensitivities To evaluate the relevance of the different parameters and processes, a simple sensitivity analysis was carried out. With different defined parameter sets (e.g. different commodity prices), the treated e-waste volume per year was varied (x-axis) in order to examine if the business performance increases or decreases with rising volume (cost/benefit on y-axis). The different parameter sets and the respective results are described in the following chapters. 4.2.1 Parameter “Commodity Prices” A significant share of the revenues are linked with the sales of metals or PWBs (see chapter 4.1.1). Hence, the overall business performance is expected to be highly dependent on international commodity prices. 4.11.2010 Ø 2010 Ø 2008 Ø 2004-2008 Ø 2004 1'000 Cost/Benefit [in 1'000 MAD] 500 -500 -1'000 -1'500 -2'000 -2'500 -3'000 -3'500 -4'000 -4'500 -5'000 -5'500 - 200 400 600 800 1'000 1'200 1'400 1'600 WEEE treated [t/y] Figure 20. Sensitivity for commodity prices (1’000 MAD ≈ 88 €; 4.11.2010). Figure 20 confirms this dependency. The business performance changes significantly as a result of varying commodity prices. It should be noted that the parameter “commodity prices” only affects the revenues of the business, not the costs of the business. In Table 14 the revenues obtained by commercialization of downstream processing fractions for different commodity price scenarios in relation to the scenario Ø 2010 are represented. It shows that the average commodity prices have been rising constantly from 2004 to 2010. In consequence of this increase, the revenues of the business would have risen by 400% in this period (Ø 2004 to Ø 2010). As can be seen in Figure 20, the increasing commodity prices in the past years make for the potential yield of the business according to the reference scenario settings. 49 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Table 14. Revenue generated by commercialization of downstream processing fractions at different commodity prices in relation to the average commodity prices 2010. Commodity price 4.11.2010 Ø 2010 Ø 2008 Ø 2004-2008 Ø 2004 117% 100% 77% 54% 27% Revenue in relation to Ø 2010 4.2.2 Parameter “Appliance Composition” Each material fraction generated during the dismantling causes a certain cost or revenue. Due to the varying material composition of each appliance (see appendix 7.4), the overall appliance composition of the collected e-waste has a direct impact on the business performance. 1.4% IT & TV* 19.9% 22.7% 1.7% 1.1% 7.6% IT 37.5% 42.8% 3.3% 2.2% 14.3% Mobile TVs Audio & Video 34.5% 4.1% 42% 5% 89.4% 10.6% Video 6.2% Audio 0.9% LCD-TV Mobile 1.4% CRT-TV Printer 18.7% LCD 16.4% CRT All CPU Laptop monitor monitor Table 15. Appliance composition for the different scenarios (by weight). 12.5% 3.8% 76.9% 23.1% 100% * reference scenario appliance composition To examine the impact of a differing appliance composition on the business performance, six scenarios were compiled (see Table 15). Apart from the mobile phone scenario, the appliance composition of each scenario comprises more than one device type. This respective share of the devices is based on GIZ (2010) and supplementary assumptions (see chapter 3.2.1 and appendix 7.4). In Figure 21 the business performance for different appliance composition scenarios is shown. It is apparent that the only scenarios which do not result in rising yields with increasing throughput (volume/year) are the TVs scenario and the Audio & Video scenario. A good business performance is expected for the IT scenario with a break-even at ~550 t/y. But even the scenarios All appliances and IT & TVs reach the break-even, although at higher e-waste throughputs (All: ~1’600 t/y; IT & TVs: ~2’600 t/y). The remarkably positive result of the Mobile phones scenario with an apparent break-even at 42 t/y is not realistic because of the difficulty of collecting high volumes. The collection scheme which is implemented in the model is not designed to take into account small appliances like mobile 50 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco phones. Moreover, the share of the mobile phones in the scenario All appliances is probably overestimated. If the mobile phones are excluded from this scenario, the break-even is reached only at 8000 t/y instead of 1’600 t/y. All appliances IT & TVs IT Mobiles TVs Audio & Video 1'000 Cost/Benefit [in 1'000 MAD] 750 500 250 0 -250 -500 -750 -1'000 -1'250 -1'500 -1'750 0 200 400 600 800 1000 1200 1400 1600 WEEE treated [t/y] Figure 21. Sensitivity for the overall appliance composition (1’000 MAD ≈ 88 €; 4.11.2010). 4.2.3 Parameter “Dismantling Depth – Recovery Rate” The recovery rate R in the model describes the share of the valuable materials (e.g. copper, PWBs, etc.) which can be recovered during the dismantling in the facility in order to supply them to the appropriate downstream processors. This implies that the value of those fractions is indeed recovered and that the fractions are not supplied to an incineration or a landfill. To achieve a high recovery rate is an important condition to financially optimize the business given that it represents the only revenue from the recycling activity. The recovery rate R depends on the depth D of the manual dismantling. The deeper the dismantling, the higher the rate of recovery. In the model, D is reproduced by the dismantling volume that can be treated per month and worker. So, a deep dismantling is expressed by a low D. Due to the matrix in which the different materials are enclosed, a recovery rate of 100% is not even attainable with an extreme effort (deep manual dismantling) for most of the materials in case of ewaste. According to experiences made by Empa in other countries, at least a recovery rate of about 75% should be feasible with a labour-intensive deep manual dismantling, which would correspond to about 2.5 t/month per worker in the reference scenario (Newson et al. 2011). Even though a deep manual dismantling contributes to a higher revenue, it has to be considered that the labour costs increase with the depth of the dismantling. With the intent to better 51 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco understand the influence of those factors (revenue vs. labour costs) on the overall budget, different scenarios were delineated and evaluated in the model. There is only scarce data on the effect of the dismantling depth on the recovery rate. Based on the experience of Empa, the two scenarios which probably come closest to the reality are scenario R 75% / D 2.5 (the reference scenario) and R 50% / D 4. Assuming those two scenarios as realistic, (Newson et al. 2011) shows that a better rate of recovery caused by deep manual dismantling (R 75% / D 2.5) outweighs the higher labour costs. The scenario with a less intensive dismantling (R 50% / D 4) results in a poorer business performance. R 75% / D 2.5 R 50% / D 4 Cost/Benefit [in 1'000 MAD] -100 -300 -500 -700 -900 -1'100 -1'300 -1'500 - 200 400 600 800 1'000 1'200 1'400 1'600 WEEE treated [t/y] Figure 22. Sensitivity for recovery rate and manual dismantling depth; D in t/(month * worker). 1’000 MAD ≈ 88 €; 4.11.2010. A more thorough analysis of the optimal dismantling depth for computers from an economic and environmental perspective can be found in Gmuender (2007). 4.2.4 Parameter “LCD – CRT share” It is generally known that the treatment of the cathode ray tubes (CRTs) generates high costs due to its significant content of lead glass. But in consequence of the technology trend towards LCD monitors for TVs and PCs in recent years, the share of CRTs in e-waste is expected to decrease in the years to come. In Figure 23 the impact of a variation of the LCD – CRT share of both TV and PC monitors on the business performance is presented. In the interpretation of the graph, a special side effect has to be taken into consideration; in the model, we define a certain weight (volume) of e-waste which is treated and thus also a specific weight of obsolete PCs and TVs. Given the lower average weight of LCD monitors, a variation of the CRT – LCD share implies a change of the total number of PCs and TVs that is treated. For example, a shift to a higher LCD share in the model causes a rise in the total number of PCs and TVs (at a constant treated volume). 52 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco The results demonstrate that the trend towards LCD monitors will have a significant positive effect on the costs of an e-waste business. This is due to the lower treatment costs of LCD screens as well as to a potentially higher revenue resulting from an increasing number of treated CPUs, which is caused by the effect delineated above. LCD 0% - CRT 100% LCD 20% - CRT 80% LCD 50% - CRT 50% Cost/Benefit [in 1'000 MAD] 900 700 500 300 100 -100 -300 -500 -700 -900 - 200 400 600 800 1'000 1'200 1'400 1'600 WEEE treated [t/y] Figure 23. Sensitivity for LCD – CRT share (TVs & PC monitors). 1’000 MAD ≈ 88 €; 4.11.2010. 4.2.5 Parameter Labour Costs In an e-waste business based on manual dismantling, the labour costs can account for a relevant share in the total costs. However, the wage for a basic workforce is not fluctuating a lot within a country. A comparison of realistic wages for dismantling labour force in different countries was carried out in order to analyse the influence of labour costs on the business performance. A list with minimum and realistic wages in the different countries is shown in Table 16. In Morocco, the minimum wage is 10,64 MAD/hour, resulting in a monthly minimum wage of about 2’500 MAD54 (~226 €). However, according to information provided by Al Jisr an appropriate monthly wage amounts to around 3’000 MAD. This latter wage was used in the reference scenario. It should be kept in mind that apart from the wage no further parameter is adapted to the respective country for this comparison. 54 This value includes non-wage labour costs 53 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Figure 24. Sensitivity for wages (1’000 MAD ≈ 88 €; 4.11.2010). In contrast with most of the analysed Asian and African countries, Morocco’s (minimum & realistic) wages are significantly higher. An exemption is South Africa, where the wages paid in the Cape Town project exceed the wages assumed for the reference scenario of Morocco (Newson et al. 2011). This is reflected in Figure 24, which shows that other Asian and African countries break even below 500 tons of treated e-waste per year (given the model settings of the reference scenario). Hence, due to the relatively high labour costs in Morocco the manual dismantling depth should be carefully determined (see chapter 4.2.3). A comparison to French minimum wages (blue graph) shows plainly that a deep manual dismantling of e-waste under European circumstances is economically not feasible. This fact points out the opportunity for job creation in developing countries due to high commodity prices and low labour costs. 54 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Table 16. Monthly wages in different countries. Morocco Kenya Ghana Nigeria SA China India France 42.5 120 81 57 1’344 Minimum wages; source: US RM (n.d.); ILO (2010) €/month 226 68 18.4 Realistic wages for recycling activities €/month 2711 782 793 674 2905 816 577 1’3448 MAD/month 3’000 859 876 751 3’200 894 629 14'842 1 oral information by Al Jisr (minimum wage: 2’500 MAD/month; wage paid: 3’000 MAD/month) formal recycling company, Kenya 3 wages earned in the informal sector (Prakash et al. 2010) 4 wages earned in the informal sector (Manhart et al. 2011) 5 formal recycling company, Cape Town project (Newson et al. 2011) 6 minimum wage is used 7 information provided by David Rochat, Empa; minimum wage corresponds to realistic wage 8 minimum wage is used 2 4.2.6 Parameter “Collection Scheme” Due to a lack of information, only two collection schemes could be taken into account in the model. On one hand a B2B-collection scheme where the appliances are picked up directly at the source (e.g. enterprise, authorities) and on the other hand a collection scheme that involves the informal sector taking the appliances from the source (e.g. households, small companies) to several collection points. Cost/Benefit [in 1'000 MAD] 50% - 50% B2B Informal Sector B2B - same price 500 400 300 200 100 0 -100 -200 -300 -400 -500 -600 -700 -800 -900 - 200 400 600 800 1'000 1'200 1'400 1'600 WEEE treated [t/y] Figure 25. Sensitivity for collection schemes (1’000 MAD ≈ 88 €; 4.11.2010). 55 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Three basic collection scenarios were calculated: (1) The e-Waste is collected in equal shares via the B2B-scheme and the informal sector (50%-50%). This is the scheme applied in the reference scenario. Two further scenarios refer to the situation that all e-waste is collected via (2) the B2Bscheme or (3) the Informal Sector. The graphic points out that the business performance is better if only a B2B collection scheme is run. But an important assumption with regard to the collection costs has to be considered: the price which is paid to purchase the appliances in a B2B-scheme is assumed to be half of the price which is offered to the stakeholders of the informal sector (see chapter 3.2.1). If the same price of the informal sector was paid in a B2B scheme as well, the results would not differ significantly anymore. This is shown by the scenario B2B – same price. The difference between the scenarios Informal Sector and B2B – same price is based upon the higher fix costs considered for the collection scheme of the informal sector. Hence, if a price has to be paid to get hold of the appliances, this price is decisive for the collection costs. Moreover, it is apparent that the logistic costs of the B2B-scheme are less expensive than the logistic costs for the informal sector scheme. 4.2.7 Parameter Incentive System – “Price paid to suppliers” This parameter refers to the price which is paid to purchase the obsolete appliances from either the user itself or a collector of e-waste, e.g. the scavengers of the informal sector. For simplicity’s sake the price is indicated as MAD/kg WEEE in the model, irrespective of the type of appliance purchased. An exception is the price for CRT monitors, which is five times lower than for the rest of the appliances. For the collection of obsolete appliances, this price is a crucial parameter which can potentially amplify the volume which is collected by incentivizing the stakeholders. It is difficult to determine a plausible price which is attractive enough that the users/scavengers bring back their equipment and nonetheless does not represent a high financial burden for the business. Therefore it is essential to know how sensitive the cash flow reacts to a price variation. Table 17. Scenario description for the comparison of incentive schemes. Scenario Description Standard Prices used in the reference scenario (WEEE: 2,5 MAD/kg, CRTs: 0,5 MAD/kg); 50% B2B-collection, 50% collection via the informal sector Standard x 2 Ditto, but the price is duplicated (WEEE 5 MAD/kg, CRTs 1 MAD/kg) Informal Sector (IS) Prices used in the reference scenario (WEEE: 2,5 MAD/kg, CRTs: 0,5 MAD/kg); 100% collection via the informal sector IS x 2 Ditto, but the price is duplicated (WEEE 5 MAD/kg, CRTs 1 MAD/kg) 56 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco IS x 3 Ditto, but the price is tripled (WEEE 7,5 MAD/kg, CRTs 1,5 MAD/kg) B2B55 Prices used in the reference scenario (WEEE: 2,5 MAD/kg, CRTs: 0,5 MAD/kg); 100% B2B-collection B2B x 2 Ditto, but the price is duplicated (WEEE 5 MAD/kg, CRTs 1 MAD/kg) Standard Standard x 2 Informal Sector IS x 3 B2B B2B x 2 IS x 2 Cost/Benefit [in 1'000 MAD] 500 0 -500 -1'000 -1'500 -2'000 -2'500 -3'000 -3'500 -4'000 -4'500 - 200 400 600 800 1'000 1'200 1'400 1'600 WEEE treated [t/y] Figure 26. Sensitivity to purchase price of e-waste during collection (“x 2” respectively “x 3” indicates a multiplication of the purchase price for the respective collection scheme). 1’000 MAD ≈ 88 €; 4.11.2010. As shown in chapter 4.2.6, a B2B collection scheme generates less fix costs than the collection via the informal sector under the assumed conditions. The graphs in Figure 26 show that the overall budget of the business is sensitive to the purchase price paid to the e-waste suppliers. The effect of a multiplication of this price seems to be higher for the informal sector than for the B2B-scheme, but in fact this is due to the lower price (50% of the price in the IS-scheme) which is set as the standard price. As a consequence, this price should be determined, respectively negotiated, very carefully in order to determine a price which provides sufficient incentive to the suppliers but does not strain the budget too much. 55 B2B – business to business, the e-waste is picked up directly at the companies/authorities (major consumers) by the e-waste management system 57 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco 4.3 Including Reuse and Refurbishment As mentioned in the description of the refurbishment module, the interpretation of the results should be done with prudence by reason of the unreliable data it is based on (chapter 3.2.2). This module helps to evaluate to a certain extent what would be the economic effect of an inclusion of the refurbishment under different circumstances. All the parameters for the e-waste module are set according to the reference scenario for the subsequent calculations. As soon as first experiences are made in a refurbishment project in Morocco, data based on those experiences should be gathered in order to improve the underlying assumptions of the model. Possibly the refurbishment project Green Chip in Casablanca of the association Al Jisr could provide first data of this kind. 4.3.1 Reference Refurbishment Scenario Firstly, it makes sense to recall the most important assumptions for the refurbishment module (further assumptions see chapter 3.2.2.1): Only PCs and laptops are refurbished 12,5% of the PCs and laptops are apt for refurbishment56 Price of sale: 1’200 MAD/PC and 2’500 MAD/laptop57 Under the supposed conditions the business performance is significantly better if the refurbishment of the computers is included (Figure 27). The break-even is expected to be reached at 600 tons of collected e-waste per year instead of 2’600 t/y (reference scenario for recycling without refurbishment). 56 20% of computers from B2B-collection, 5% of computers from informal sector are apt for recycling (by weight). Thereof, 50% are assumed to end up as e-waste again during refurbishment. 57 58 1’000 MAD ≈ 88 €; 4.11.2010 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Recycling Refurbishment Total Cost/Benefit [in 1'000 MAD] 1'500 1'250 1'000 750 500 250 -250 -500 -750 -1'000 - 200 400 600 800 1'000 1'200 1'400 1'600 WEEE treated [t/y] Figure 27. Inclusion of the reference refurbishment scenario (1’000 MAD ≈ 88 €; 4.11.2010). 4.3.2 “Pessimistic” Refurbishment Scenario It is difficult to determine a worst case scenario given the lack of data for refurbishment. Anyway, with the objective of analysing a pessimistic scenario, the following parameter modifications were made: 6.25% of the PCs and laptops are apt for refurbishment58 Price of sale: 800 MAD/PC and 1’500 MAD/laptop In Figure 28 the effect of those parameter modifications is shown. For this particular case, the refurbishment never reaches the break-even and remains a burden for the business’ budget. But it is noted that this burden is rather small even under pessimistic circumstances. 58 10% of computers from B2B-collection, 2.5% of computers from informal sector are apt for recycling (by weight). Thereof, 50% are assumed to end up as e-waste again during refurbishment. 59 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Recycling Refurbishment Total Cost/Benefit [in 1'000 MAD] -100 -350 -600 -850 -1'100 - 200 400 600 800 1'000 1'200 1'400 WEEE treated [t/y] Figure 28. Inclusion of a pessimistic refurbishment scenario (1’000 MAD ≈ 88 €; 4.11.2010). 60 1'600 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco 5 Conclusions 5.1 Current Situation In 2008, roughly 40’000 tons of obsolete IT equipment and consumer goods were generated in Morocco (WEEE categories 3 & 459, see chapter 3.1.4.1). The stock of these appliances in Morocco is estimated to amount to more than 300’000 tons. Considering the fast growth of EEE consumption, the volumes of e-waste are likely to increase. Those numbers emphasize the urgency of a sound e-waste management in Morocco. Despite the absence of an integral solution, several activities in the field of e-waste do exist (chapter 2.3) and various companies are showing increasing interest in the treatment of e-waste. However, current efforts are still in pilot stage with small e-waste throughput and do not meet international environmental standards yet. Apparently, collection of e-waste and hence gaining access to higher volumes is a big challenge. This applies for both the collection via B2B channels (companies/authorities) and the collection from households. In the case of the B2B collection for instance, stakeholders from the informal sector are usually allowed to participate in e-waste tender offers by companies and authorities, where they readily outcompete the formal bidders (chapter 2.3.1.3). The only stakeholder succeeding in B2B collection to a certain degree is Al Jisr via its project Green Chip (chapter 2.3.1.1). With regard to the collection of appliances from households, almost no activity has been detected during the studies. A concept for the collection of e-waste from household was developed by IVSEP in Fes, but is not operational yet (chapter 2.3.1.1). Bearing in mind these challenges, it is thus recommended to put a special emphasize on collection strategies in future initiatives for ewaste management in Morocco. A factor which could contribute to a more efficient collection and e-waste management in general is a more specific legislation. To date no regulation regarding e-waste exists. The most relevant law for e-waste management is law 28-00 which delineates the management and disposal of waste in general. A decree based on this law could specify the management of e-waste. At the same time the absence of specific regulation on e-waste can be an opportunity. It seems like the less stringent regulation allows for more dynamics in e-waste businesses. Moreover, it allows to introduce the initial experiences and concepts made by the local “forerunners”, as well as international experiences into a future legislation on e-waste. On the other hand the current legislation does not back the (formal) stakeholders which are active in the e-waste management in their attempt to develop environmentally sound processes. 5.2 Economic Feasibility The cost modelling of an e-waste recycling reference scenario lead to several conclusions regarding the economic feasibility of dismantling operations in Morocco. Results suggest that 59 Appliances considered: PCs, laptops, TVs, mobile phones, audio & video appliances. 61 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco under the current local and global economic conditions a business model which relies solely on the income generated by the intrinsic value of the treated material is feasible . Success and sustainability of such a business model depends on a multitude of parameters, which entail both opportunities and threats. Some crucial parameters have been analysed. The main conclusions of this sensitivity analysis are summarized below. In none of the calculated scenarios the break-even is expected to be reached below a treated volume of 500 tonnes per year. Hence an effective collection system is a precondition for a successful recycling business. Thereby incentive systems will play a crucial role, e.g. by providing an attractive service in a B2B collection scheme and a reasonable incentive for the individual collectors. In addition ensuring cash flow with e.g. seed-funding or providing grants in the initial phase of building up a business might be required to bridge the gap until collection has reached critical volumes. Commodity prices have the strongest impact on the business performance. While current prices allow for a working business case, the budget can readily become unbalanced if the commodity prices fall below the average prices of 2010. Although the global economic trend points towards rather stable or increasing commodity prices for a longer period, this dependency has to be interpreted as a relevant risk for the business’ profitability. Due to a different material composition of specific appliances, business performance also depends on the appliance composition of e-waste received. Given their high content in copper and precious metals the treatment of IT equipment can generate a sufficient revenue, which even allows to cross-finance the treatment of the high share of CRT screens. It is therefore a promising approach to focus on a B2B collection of IT equipment in the initial phase of establishing the business. Nevertheless, a large share of obsolete appliances from households are TV sets, which inevitably will end up in the collection. As a consequence, an inclusion of the key manufacturer and importers of TVs should be considered as soon as it comes to collection from households. Due to their high treatment costs and its large share of the total treated volume (65% in the reference scenario), the CRT monitors deserve special attention. In spite of the decreasing sales numbers of CRT monitors, they will still make up a large proportion of the obsolete monitors in the medium term. Thus, further downstream processing alternatives which help to reduce the costs along with the compliance of environmental standards should be analysed, such as the ongoing investigations with the national lead smelter SFPZ. Including reuse and refurbishment in the model calculations suggests that this supplementary activity can add financial benefits. Even at a very low share of appliances which can be used for refurbishment, this activity is not posing a high threat to the overall business. To better assess opportunities and threats of including reuse and refurbishment, two of its key criteria should be put on a more reliable data basis. (1) The actual share of the collected devices (components) which are apt for refurbishment and (2) the potential sales price of those devices. Unless this data is readily available it is advised against including this activity from the very beginning of the business operation. 62 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Although the model results suggest that, currently, e-waste recycling businesses in Morocco can be run by relying on the intrinsic value of the treated material only, changing conditions can pose relevant risks to the business. It is therefore concluded that sustainable recycling businesses can only grow in Morocco in combination with a comprehensive framework, which ensures: 1. that business sustainability is also guaranteed under unfavourable economic conditions, i.e. an additional flexible income stream enabled through a financing scheme needs to be established for situations where the intrinsic value of the treated material is not sufficient for a break-even; 2. that recycling businesses can grow in a level playing field; i.e. that legislation, as well as monitoring and control mechanisms favour high standard operations; 3. that market incentive are set such as high collection and recycling rates are encouraged. 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Zurich & St.Gallen/ Switzerland: Swiss Federal Institute of Technology (ETH), Materials Science and Technology Research Institute (Empa). 64 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Laffely, J., 2007. Assessing cost implications of applying best e-waste recovery practices in a manual disassembly material recovery facility in Cape Town, South Africa, using process-based cost modelling. master thesis. Lausanne / St.Gallen Switzerland: EPFL / Empa. Manhart, A. et al., 2011. Informal e-waste management in Lagos, Nigeria - socio-economic impacts and feasibility of international recycling co-operations., Freiburg & Lagos: Report of component 3 of the UNEP SBC E-waste Africa Project. Newson, G. et al., 2011. Revised Version of the Final Report on the Establishment of a Cape Town Based Processing Facility for Electrical and Electronic Equipment, Cape Town, South Africa: e-Alliance, Empa. Oguchi, M., 2010. Estimation of metal content based on oral information from M. Oguchi. Available at: [Accessed December 10, 2010]. Prakash, S. et al., 2010. Socio-economic assessment and feasibility study on sustainable e-waste management in Ghana, Freiburg & Accra: Öko-Institut e.V. & Green Advocacy Ghana. Rochat, D. & Laissaoui, S.E., 2008. Technical report on the assessment of e-waste management in Morocco, Casablanca, Morocco: Moroccan Cleaner Production Center, Empa. Schluep, M. et al., 2009. Recycling - from e-waste to resources, Sustainable innovation and technology transfer industrial sector studies, Paris, France: UNEP, Empa, Umicore, UNU. StEP, 2009. One Global Understanding of Re-Use - Common Definitions, Bonn, Germany: StEP - Solving the e-Waste Problem / UNU - United Nations University. Swico, 2009. Tätigkeitsbericht 2008, Zürich, Switzerland: Swico Recycling. UBR, 2010. Phone Call to Umicore Battery Recycling (UBR), 8 December 2010. US RM, 2008 Country Reports on Human Rights Practices. Available at: http://www.state.gov/g/drl/rls/hrrpt/2008/index.htm [Accessed December 10, 2010]. Wikipedia, 2011. Informal sector. Available at: http://en.wikipedia.org/wiki/Informal_sector [Accessed February 7, 2011]. 65 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Glossary Appliance Composition Appliance composition refers to the share each appliance has in the e-waste stream. It does not refer to the specific material composition of the appliances, see Material Composition. Collection Collection comprises all the processes and infrastructure necessary to carry together the appliances, excluding the actions undertaken to spread information and raise the awareness among the society (see Public Relations). CPU In this study, CPU (Central Processing Unit) refers to the computer tower. It does not include the monitor, except for special cases when the monitor and the CPU are enclosed in the same casing. Dismantling Dismantling comprises any action undertaken to disassemble appliances in order to recycle/refine its components and materials. If not specified otherwise, in this study the term generally refers to manual dismantling. Disposal Disposal comprises the landfilling of waste fractions in (sanitary) landfills and the incineration of waste in adequate plants. Downstream processes The downstream processes refer to the stages subsequent to the dismantling and comprise all recipients of any fraction, including the wholesalers and the stakeholders of the end-processing and the disposal. End-processing The end-processing is part of the downstream processes and comprises the processes that aim for a material recovery, e.g. metals refining. Informal Sector “The informal sector […] is the part of an economy that is not taxed, monitored by any form of government or included in any gross national product (GNP), unlike the formal economy.” (Wikipedia 2011) Examples are scavengers or non-registered companies. Material Composition The material composition indicates the share of each material/fraction in a device. Pre-processing The aim of the pre-processing is to liberate the materials, to separate the contaminants and direct them to adequate subsequent downstream processes. It comprises the handling and sorting of the obsolete appliances as well as their manual dismantling and mechanical processing. (StEP 2009) Public Relations Public relations (PR) comprises marketing and awareness raising. It thus refers to any action or measure which aims to the dissemination of information about the business and to the awareness raising of waste problems and opportunities. Recovery rate The recovery rate in the model reflects the share of the material which can be recovered during the dismantling in the facility in order to supply it to the appropriate downstream processing. A recovery rate of 1 means that 100% of the potentially recoverable valuable material is recovered. 66 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Refurbishment Refurbishment comprises any action necessary to restore a unit up to a defined condition in function and form that may be inferior to a new unit. The output product meets the original functionality specifications. To refurbish a product requires disassembling the unit only to the extent that is required to ensure the testing and reprocessing of all components not meeting these specifications. The unit’s composition and design is not changed significantly. The term recondition is understood synonymously for refurbish (StEP 2009). Repair Repair comprises any action necessary to correct any faults in a unit preventing its specified operation. The output product is in functioning condition. To repair a unit requires only process steps necessary to restore the specified operation. The unit’s composition and design is not changed significantly (StEP 2009). Re-use Re-use of electrical and electronic equipment or its components is to continue the use of it (for the same purpose for which it was conceived) beyond the point at which its specifications fail to meet the requirements of the current owner and the owner has ceased use of the product (StEP 2009). Scavenger a person who picks out recyclables from mixed waste wherever it may be temporarily accessible or disposed of (GDRC 2011). For the French disambiguation of scavenger, see (GIZ 2010). Scavengers usually belong to the informal sector. 67 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco List of Figures Figure 1. e-Waste dismantling workplace, Valdeme. ...................................................................................... 14 Figure 2. Metal scrap depot, Valdeme. ............................................................................................................ 14 Figure 3. Metal scrap at Valdeme. ................................................................................................................... 14 Figure 4. Dismantling at Al Jisr. ....................................................................................................................... 15 Figure 5. Dismantling facility of Al Jisr. ............................................................................................................ 15 Figure 6. Blister from the PWB pilot plant........................................................................................................ 18 Figure 7. e-Waste in the metal scrap bulk (Mac//Z)......................................................................................... 19 Figure 8. Hoffmann shredder at Mac//Z........................................................................................................... 19 Figure 9. e-Waste take-back point (small intermediary), Fes. ......................................................................... 20 Figure 10. Cable burning, informal sector, Fes. .............................................................................................. 20 Figure 11. Push cart of a scavenger, Fes........................................................................................................ 20 Figure 12. Burning of lighting equipment, informal sector, Fes. ...................................................................... 20 Figure 13. e-Waste process chain. .................................................................................................................. 28 Figure 14. Reverse logistics - capitalization of distribution channels. ............................................................. 33 Figure 15. Exemplary sorting tree for the main appliances considered in the study. ...................................... 35 Figure 16. Simple schema of the MS Excel model. ......................................................................................... 41 Figure 17. Cost/Benefit for the reference scenario (1’000 MAD ≈ 88 €; 4.11.2010). ...................................... 46 Figure 18. Revenue share per fraction for reference scenario (PCs, printers, TV sets). ................................ 47 Figure 19. Expenses share at different volumes of treated e-waste per year. ................................................ 48 Figure 20. Sensitivity for commodity prices (1’000 MAD ≈ 88 €; 4.11.2010). ................................................. 49 Figure 21. Sensitivity for the overall appliance composition (1’000 MAD ≈ 88 €; 4.11.2010)......................... 51 Figure 22. Sensitivity for recovery rate and manual dismantling depth; D in t/(month * worker). 1’000 MAD ≈ 88 €; 4.11.2010. ............................................................................................................................... 52 Figure 23. Sensitivity for LCD – CRT share (TVs & PC monitors). 1’000 MAD ≈ 88 €; 4.11.2010................. 53 Figure 24. Sensitivity for wages (1’000 MAD ≈ 88 €; 4.11.2010). ................................................................... 54 Figure 25. Sensitivity for collection schemes (1’000 MAD ≈ 88 €; 4.11.2010)................................................ 55 Figure 26. Sensitivity to purchase price of e-waste during collection (“x 2” respectively “x 3” indicates a multiplication of the purchase price for the respective collection scheme). 1’000 MAD ≈ 88 €; 4.11.2010. ........................................................................................................................................ 57 Figure 27. Inclusion of the reference refurbishment scenario (1’000 MAD ≈ 88 €; 4.11.2010). ..................... 59 Figure 28. Inclusion of a pessimistic refurbishment scenario (1’000 MAD ≈ 88 €; 4.11.2010). ...................... 60 68 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco List of Tables Table 1. Potential recycling procedures/technologies. .....................................................................................12 Table 2. Current Moroccan treatment options for e-waste fractions. ...............................................................13 Table 3. National refiner, adapted from Rochat and Laissaoui (2008).............................................................17 Table 4. List of integrated precious metal smelter, not exhaustive (CNPML & Empa n.d.). ............................23 Table 5. Average commodity prices for 2010. ..................................................................................................25 Table 6. Transportation costs (1 € ≈ 11,2 MAD; 4.11.2010). ...........................................................................26 Table 7. End-processing costs for different fractions. ......................................................................................27 Table 8. Estimated e-Waste stock in Morocco, 2008 & 2012 (in tons). ...........................................................31 Table 9. Estimated e-Waste flow in Morocco, 2008 & 2012 (in tons/year). .....................................................31 Table 10. Appliance composition Morocco (based on GIZ (2010) and assumptions, see appendix 7.5). .......42 Table 11. Downstream processing scenarios for each fraction (alternative 3 was chosen as reference sceanario). ........................................................................................................................................43 Table 12. Revenue share per fraction for each appliance (with downstream processing alternative 3)..........47 Table 13. Required minimal lot size and necessary throughput to reach it (Umicore). ....................................48 Table 14. Revenue generated by commercialization of downstream processing fractions at different commodity prices in relation to the average commodity prices 2010. ..............................................50 Table 15. Appliance composition for the different scenarios (by weight). ........................................................50 Table 16. Monthly wages in different countries. ...............................................................................................55 Table 17. Scenario description for the comparison of incentive schemes. ......................................................56 Table 18. Extract of the "Catalogue Marocain des Déchets" in the decree N° 2-07-253. ...................................I Table 19. Collected economic data. ................................................................................................................. VI 69 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco List of Abbreviations ABS Acrylonitrile butadiene styrene B2B Business to Business CMD Catalogue Marocain des Déchets CRT Cathode Ray Tube CCFL Cold cathode fluorescent lamps CPU Central Processing Unit EEE Electric and Electronic Equipment EHS Environment, Health and Safety EMPA Swiss Federal Institute for Material Science and Technology ENIM Ecole Nationale de l’’Industrie Minérale FR Flame Retardants FTE Full Time Equivalents (= Full Time Employee) GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH H&S Health and Safety HIPS High Impact Polystyrene HP Hewlett-Packard IC Integrated Circuit (Microprocessor) ICT Information and Communication Technologies IS Informal Sector IVSEP Industrie Vertes et Services Propres Li-Ion Lithium-ion battery LME London Metal Exchange MAD Moroccan Dirham (ISO-Code) MRF Material Recovery Facility MS Microsoft NiMH Nickel-Metal Hydride battery POP Persistant Organic Pollutant PCB Polychlorinated Biphenyl PP Polypropylene PPP Public-Private Partnership PS Polystyrene PVC Polyvinyl Chloride PWB Printed Wiring Board SFPZ Société des Fonderies de Plomb de Zellidja USD US Dollars 70 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Valdeme Valorisation des Métaux WEEE Waste Electrical and Electronic Equipment 71 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco 7 7.1 Appendix WEEE Classification hazardous/non-hazardous 16 02 16 02 09 16 02 10 16 02 11 16 02 12 16 02 13 16 02 14 16 02 15 16 02 16 Déchets provenant d’équipements électriques ou électroniques transformateurs et accumulateurs contenant des PCB 16 02 10 équipements mis au rebut contenant des PCB ou contaminés par de telles substances autres que ceux visés à la rubrique 16 02 09 16 02 11 équipements mis au rebut contenant des chlorofluorocarbones, des HCFC ou des HFC équipements mis au rebut contenant de l’amiante libre équipements mis au rebut contenant des composants dangereux (1) autres que ceux visés aux rubriques 16 02 09 à 16 02 12 16 02 14 équipements mis au rebut autres que ceux visés aux rubriques 16 02 09 à 16 02 13 composants dangereux retirés des équipements mis au rebut composants retirés des équipements mis au rebut autres que ceux visés à la rubrique 16 02 15 DD DD DD DD DD DD (1) Par composants dangereux provenant d’équipements électriques et électroniques, on entend notamment des piles et accumulateurs visés à la section 16 06 et considérés comme dangereux, des aiguilles de mercure, du verre provenant de tubes cathodiques et autres verres activés, etc… 16 06 16 06 01 16 06 02 16 06 03 16 06 04 16 06 05 16 06 06 Piles et accumulateurs accumulateurs au plomb accumulateurs Ni-Cd piles contenant du mercure piles alcalines (sauf rubrique 16 06 03) autres piles et accumulateurs électrolyte de piles et accumulateurs collectés séparément DD DD DD DD Table 18. Extract of the "Catalogue Marocain des Déchets" in the decree N° 2-07-253. I Current Situation and Economic Feasibility of e-Waste Recycling in Morocco 7.2 Relevant Regulations for WEEE management (Rochat & Laissaoui 2008) Law, regulation, declaration or charter General content Influence on WEEE management Status / date Enacted laws, decrees and orders Law No. 11-03 on the protection and enhancement of the environment Law No. 12-03 on environmental impact studies - Adoption of preventive measures designed to protect the environment Any new project or extension of an - Makes approval of a project submitted for an EIS subject to existing project for the recycling or an environmental acceptability decision disposal of WEEE is subject to an EIS - Grants the public the right to access the content of EISs, with the exception of information deemed confidential - Prevents, reduces and limits emissions of pollutants into the atmosphere - Establishes the general principle of banning the emission, Law No. 13-03 on air pollution control dumping, release or discharging into the atmosphere of pollutants, in excess of the regulatory limits - Establishes reduction and control measures (by decree) II Treatment/recycling units are responsible, even in the absence of proof, for any direct or indirect bodily injury or damage to property linked to the pursuit of their activities - Sets out the guiding principles for environmental protection and management - Lays down the overall legislative framework for environmental conservation Enacted by Dahir No. 1.03.59 of 10 Rabii I 1424 (12 May 2003), published in Official Gazette No. 5118 of June 2003 Enacted by Dahir No. 1.03.60 of 10 Rabii I 1424 (12 May 2003), published in Official Gazette No. 5118 of June 2003 Enacted by Dahir - Ban on burning WEEE in the open air No. 1.03.61 of 10 Rabii I 1424 (12 - WEEE treatment projects must May 2003), incorporate technical solutions to published in ensure compliance with the standards Official Gazette (filters, etc.) No. 5118 of June 2003 Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Law No. 28-00 on the management and disposal of waste Law No. 10-95 on water Decree No. 2-04-553 of 13 Hija 1425 on direct or indirect discharge, runoff, effluent or deposits in surface water or groundwater Dahir No. 1-95-213 promulgating framework law No. 18-95 forming the investment charter - Defines the different types of waste, specifying waste WEEE is classed as hazardous waste: management procedures and the level at which waste is - System of licences at every stage of treated (local, regional or national) WEEE management – collection, - Clearly regulates the management of hazardous waste transportation, storage and disposal - Establishes rules for the organisation of existing dumps and calls for their replacement by sanitary landfills, classing them - Bans the mixing of hazardous waste in three different categories depending on the type of waste with other categories of waste - WEEE must be accompanied by a they are authorised to receive - Provides for the establishment of three sorts of master plan, tracking sheet containing information at three different territorial levels, for three different categories about the shipper, carrier, consignee, the type and quantity of waste, the of waste mode of transport and the procedures - Establishes a system for monitoring and detecting offences, for its disposal together with penalties Enacted by Dahir No. 1.06.153 of 30 Chaoual 1427 (22 November 2006), published in Official Gazette No. 5480 of 7 December 2006 - Quantitative and qualitative protection and conservation of water - Establishment of the user pays principle and the polluter pays principle - Direct or indirect discharge, run-off, effluent or deposits in surface water or groundwater are subject to prior authorisation, granted by the basin agency - Introduce limit values for general or specific discharges - Effluent charges - WEEE recycling or treatment undertakings that release effluent into surface water must apply for a discharge licence from the basin agency - Obligation to pay the pollution charge (depending on whether organic matter, suspended matter or liquid matter is involved), without exceeding the waste limit values. - Includes measures designed to rationalise the consumption of energy and water, and protect the environment - Companies with important investment programmes, in terms of the funds to be invested, the number of stable jobs to be created, the region of implementation, the technology to be transferred or the contribution to protecting the environment may conclude specific agreements with the State that give them additional benefits to those stipulated in this charter Industrial WEEE recycling/reuse projects could receive additional benefits, such as partial exemption from the following expenses: Enacted on 8 - Expenses related to purchasing the November 1995 land required to make the investment; - External infrastructure expenses; - Vocational training expenses. Decree No. 1-02-297 promulgating law The municipal council oversees health, safety and No. 78-00 implementing the municipal environmental protection (Article 40) charter Official Gazette No. 4324 24 Rabii II 1416 (20 September 1995) Published in Official Gazette No. 5292 of 17 February 2005 Once WEEE is disposed of (public bins Official Gazette of and landfills), it becomes the property 21 November of the local council 2002 III Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Pending draft legislation - WEEE recycling or treatment undertakings that generate effluent must apply for a discharge licence from the competent authority - This licence gives rise to the payment of effluent charges (1st date of transmission to the SGG: 1 August 2006) Bill No. 31-06 on the protection and enhancement of the coast Authorisation must be obtained from the administrative authorities before any effluent can be released into the sea, within the public domain Draft decree setting the limit values for air-pollutant emissions from stationary sources and procedures for monitoring such emissions - Sets the LVs for emissions of particulate matter, vapours and gases, and defines procedures for monitoring such emissions - Sets the general LVs and refers to joint orders for the setting - The operator must comply with the of specific LVs emission LVs, taking all necessary - Specifies emission monitoring and self-checking procedures measures to ensure said compliance and establishes deadlines for the operators of existing facilities to comply with the new legislation before it comes into force (1st date of transmission to the SGG: 11 April 2005) Bill No. 2-07-253 on the classification of waste and defining the list of hazardous waste - Adoption of the international nomenclature, including the list of hazardous wastes, for the purpose of internal management of hazardous waste - Defines hazardous waste - Discarded electronic equipment (such as printed circuit boards) and other discarded electronic equipment is not considered hazardous waste by the Moroccan Waste Catalogue and can be disposed of in household waste landfills and similar Ratified by the Council of Ministers in July 2008 If, during the treatment of WEEE, any harmful or toxic substances are released, the waste in question may become hazardous. A separate order will define such cases. Legislation currently being drafted Bill on the right of the public to access environmental information and decision-making in environmental matters. Draft joint order of the minister responsible for land management, water and the environment and the minister responsible for health in relation to vigilance thresholds, information thresholds, alert thresholds and emergency measures. IV Current Situation and Economic Feasibility of e-Waste Recycling in Morocco Draft decree regarding the National Hazardous Waste Master Plan. Draft decree on sanitary landfills. Draft decree relating to the incineration and co-incineration of waste. Draft decree on transboundary movements of hazardous waste. Voluntary initiatives International declaration on cleaner production Social Responsibility Charter of the CGEM (voluntary) StEP Initiative Encourages the continuous application of a preventive strategy integrated into all processes, products and services, with a view to achieving progress in the economy, social life, health, safety and environment Adopting this strategy would enable WEEE recycling/reuse firms to Adopted in continually improve their environmental January 2003 performance - Protection of the natural environment, with a particular focus on improving environmental performance, communication and cooperation with local and public authorities, etc. - Reduce consumption of water, energy and raw materials and reduce emissions of pollutants and greenhouse gases - Assess and minimise the environmental impacts of investment projects - Define emergency plans for the prevention and containment of accidental damage to the environment, health and safety - Firms operating in the field of WEEE that want to adhere to this charter must comply with its content, particularly the environmental aspects - Firms may request the CGEM seal of approval, based on a managerial assessment carried out by an independent, third-party expert accredited by the Confederation A UN initiative to improve the recycling of electronic waste Adopted by the National Business Council (December 2006) Officially launched on 7 March 2007 V Current Situation and Economic Feasibility of e-Waste Recycling in Morocco 7.3 Collected economic data Table 19. Collected economic data. N° Description (material, service, etc.) 1 Copper 2 4 Aluminum Iron (billet) 5 6 7 8 14 15 16 17 Shipping 6m-container from Casablanca to Barcelona Shipping 6m-container from Casablanca to Belgium Shipping 6m-container from Casablanca to Hamburg Shipping 6m-container from Casablanca to Chennai/India Shipping 6m-container from Casablanca to Ningbo/China (Shanghai) Transport Mac//Z - Casa Port + Mise à FOB Transport Lorry Container from Mac//Z (Skhirat) to Casablanca Transport Lorry from Mac//Z (Skhirat) to Casablanca Transport Lorry 90 km from port to final destination in Spain Small cables, % of copper in cables (e.g. WEEE) Transport Casablanca - Berrechid, formal Transport Casablanca - Berrechid, informal Scrap Iron, average price 2010 18 Minimal Wage 19 20 21 Wage technician Wage acquisition manager Wage staff manager (personnel manager) 9 10 11 12 13 VI Costs Units LME minus 8-9% LME minus 10% Price - 50% (LME) 120 180-200 250 350 Source Mac//Z Comments According to Sorec (CH): minus 10-20%, thus calculating defensively with minus 20% - Mac//Z Mac//Z €/Container €/Container €/Container $/Container Mac//Z Mac//Z Mac//Z Mac//Z Independent of the weight 900 $/Container Mac//Z Lamdouar: One have to add 3000 MAD for transport + "mise en FOB" (Free on Board) ~ 3000 MAD/Container 2000 MAD/Container Mac//Z Mac//Z 1500 MAD/Lorry 500 €/Container 50-60 1200 0.15 - 0.2 2 % MAD/tour MAD/kg MAD/kg Prix de la billette - 50% (LME acier) 1500 MAD for the lorry, plus 500 MAD for the transition Mac//Z Mac//Z Mac//Z Valdeme Valdeme Valdeme 2200 MAD/month Valdeme 4800 MAD/month 13000 MAD/month 12000 MAD/month Valdeme Valdeme Valdeme 4 t DEEE; => ~0.3 MAD/kg Baudet: "Le prix moyen du fer sur l’année se situe autour de 2 dhs / kg et le fer issue des DEEE se paye à environ 50% de cette valeur de par sa qualité très moyenne" 2200 brut, 2000 net (Baudte: souvent les salaires d'un ouvrier sans formation ne sont pas déclaré, alors on ne paye que 1500 MAD; Valdeme paye 2500 dh + mutuelle) Baudet: necessary if you have 30 or more employees; can be cumulated with other responsibilites Current Situation and Economic Feasibility of e-Waste Recycling in Morocco N° 22 23 Description (material, service, etc.) Wage warehouse manager (warehouse keeper) Wage secretary 24 25 26 28 Wage driver Income taxes Taxes for the company (depending on product) CRT monitor, purchase price by IVSEP to scavengers 29 30 31 32 (W)EEE, purchase price by IVSEP to scavengers (W)EEE, purchase price by IVESP to Semi-Wholesaler (W)EEE, purchase price by IVSEP to Wholesaler Lot of land, acquisition price in industrial zone in Fes (Ain Cheguague) Lot of land, acquisition price in industrial zone in Rabat with state subsidy (Ain Aouda ) Lot of land, acquisition price in industrial zone in Casablanca without state subsidy Storage depot, 800m2, rental price in industrial zone in Casablanca (Tit Mellil) Lot of land, rental price in industrial zone in Casablanca (Bouskoura) 33 34 35 36 37 38 39 Lot of land, acquisition price in Darbouazza zone (Greater Casablanca) Lot of land, acquisition price in Bouskoura zone (Greater Casablanca) Storage depot, rent in Bouskoura zone (Greater Casablanca) 40 Déchets ménagers, mise à la décharge 41 42 43 Hard disc, purchase price IVSEP => scavenger Cables, no treatment Cables, burnt Costs Units 5000-6000 MAD/month 2500-3500 MAD/month 3500 MAD/month 40% ~20% 0.5-1.5 MAD/kg 2-2.5 3-3.5 4-4.5 700-750 MAD/kg MAD/kg MAD/kg MAD/m2 Source Valdeme Valdeme M. Chaoui M. Chaoui IVSEP/Chaoui IVSEP/Chaoui IVSEP/Chaoui IVSEP/Chaoui ENIM/Chaoui 250 MAD/m2 ENIM/Chaoui 900 MAD/m2 ENIM/Chaoui 7500 MAD/month 5 MAD/m2*month Baudet: with accountancy and good french 3500, otherwise 2500 MAD "Impôts sur le revenu" "Impôts société" Depending on CRT quality (copper already removed, etc.) PCs, printer, copying machines, etc. ENIM/Chaoui ENIM/Chaoui 900-1000 MAD/m2 GIZ/Mountassir 1000-1200 MAD/m2 GIZ/Mountassir 20 MAD/m2*month GIZ/Mountassir 50 MAD/t Chaoui 50-60 MAD/unit 3 MAD/kg 30 MAD/kg Comments Info par mail 27.10. Chaoui: "L’établissement d’une convention cadre entre l’entité concerné (industriel), la commune et la société délégataire est nécessaire pour pouvoir procéder à cette mise en décharge des déchets" IVSEP IVSEP / IS IVSEP / IS VII Current Situation and Economic Feasibility of e-Waste Recycling in Morocco N° 44 45 Description (material, service, etc.) Cables, no treatment, price agreed upon IS - IVSEP Plastic export to China (all types - with and without FR), to MBA Guangzhou 46 47 CRT-End-Processing GRIAG, Total GRIAG, tube with metal scrap inside GRIAG, cullets without metal scrap, without washing GRIAG, cullets without metal scrap, with washing Transport Hamburg - GRIAG (Zippel) Shipping Morocco - Hamburg Transport to Port Casablanca Urban transport, 8 tons, Casa-Casa, 1 driver + 4 workers 48 49 50 51 52 53 Costs Units ~25 MAD/kg 0 MAD/t Source Comments IVSEP / IS MBA (Chris The price strongly depends on the quality and Sluik) type of plastic; as far as composition unknown, set costs to 0. (=> send a sample container to MBA China to fix the price) 60 €/t Griag For < 100 t/month 75 €/t Griag For < 100 t/month less than 75 €/t Griag For < 100 t/month Zippel Website: http://212.223.160.147/home/home.aspx 450 €/Container 250 €/Container 2000 MAD/Container 2300 MAD/day + 20% tax Mac//Z Mac//Z Al Jisr 2800 MAD/day + 20% tax Al Jisr 54 Urban transport, 16 tons, Casa-Casa, 1 driver + 4 workers 55 56 Minimal Wage Morocco (SMIG), per hour Minimal Wage Morocco (SMIG), per month 10.64 MAD/hour ~2200 MAD/month Al Jisr Al Jisr 57 ~2500 MAD/month Al Jisr 58 59 60 61 62 63 Minimal Wage Morocco (SMIG), per month (all costs included) Minimal Lot Size, PWB low-grade, Umicore Minimal Lot Size, PWB medium-grade, Umicore Minimal Lot Size, PWB high-grade, Umicore Transport Port Antwerpen => Umicore NiMH- and Li-Ion Batterys, Umicore Hg-Lamps, Recilec, Sevilla, Spain 64 CRT monitor, Recilec, Sevilla, Spain VIII 8 7 5 0 see price grid 800-850 t t t $ €/t 250 €/t Umicore Umicore Umicore Umicore Umicore Recilec Recilec Refers to distance Skhirat (Mac//Z) - Casa Port Price without tax (VAT ~20%); El Boudrari (Al Jisr): "comme nous collectons des déchets nous n'assurons pas la marchandise mais si la marchandise est assurée ça devient plus cher." Price without tax (VAT ~20%); El Boudrari (Al Jisr): "comme nous collectons des déchets nous n'assurons pas la marchandise mais si la marchandise est assurée ça devient plus cher." Assumption: 5 days of work/week (legally max. 44 hours/week) 1 full 20' container 7t, ultimate minimum lot size 5 t Very high grade (mobile phones): 2t Steven Art: "on behalf of Umicore" Remove as many parts as possible (sockets, etc.) in order to reduce costs They accept whole monitors, too Current Situation and Economic Feasibility of e-Waste Recycling in Morocco 7.4 Material Composition for Model Fraction Copper Aluminum Iron Brass PWB high grade PWB medium grade PWB low grade Glass (e.g. LCD) CRT glass Plastics Cables Residue (= waste) Toner LCD module Battery Transformers Motor Capacitor Metal-plastic mix Waste Total Indicated weight [kg] Source: CRT LCD PC/Server monitor monitor 0.03% 7.00% 0.65% 4.92% 2.00% 3.10% 75.06% 10.00% 35.25% 0.02% 8.50% 8.57% 1.31% 8.00% Laptop 1.50% 3.70% 29.80% Printer 3.50% 0.30% 36.20% Mobile Phones 2.00% 8.00% CRT TV 3.00% 12.00% 35.00% 6.50% LCD TV 0.75% 3.50% 39.75% Audio 3.00% 0.80% 36.00% Video 3.00% 1.50% 60.00% 11.00% 10.00% 7.00% 10.50% 15.00% 43.00% 17.00% 6.70% 3.50% 4.00% 6.70% 3.50% 100.00% 100.00% 100.00% 11.00% 5.80% 2.75% 1.54% 60.00% 13.00% 0.00% 18.50% 2.50% 31.50% 14.50% 1.00% 43.00% 46.00% 3.00% 1.00% 44.00% 52.00% 23.00% 0.00% 3.00% 18.50% 1.50% 25.00% 1.00% 28.50% 0.02% 19.50% 19.50% 21.00% 3.00% 0.50% 0.51% 0.51% 3.00% 100.00% 100.00% 100.00% 9.9 [Own data] 14.1 (Laffely 2007) 4.3 [Own data] 4.00% 100.00% 100.00% 3.5 [Own data] 6.5 (Laffely 2007) 100.00% 0.1 [Own data] 100.00% 31.6 Zhu, J Bejing 15 5 4.2 Oguchi, Oguchi, 2010/ [Own 2010/ [Own [Own data] data] data] [Own data]: Data from Empa/Swico-Recycling IX Current Situation and Economic Feasibility of e-Waste Recycling in Morocco 7.5 Assumptions for Appliance Composition Generally, the appliance composition which is applied in the model is based on data from GIZ (2010). Further assumptions are: LCD-share (TVs & PCs) 20% of total monitors, by units (reference scenario) Laptop share 20% of total PCs, by units (reference scenario) Printer share 50% of total PCs & laptops, by units (reference scenario) Volume audio devices 5’000 t/year (2008) Estimation based on GIZ (2010) and Swico (2008) Volume video devices 1’500 t/year (2008) Estimation based on GIZ (2010) and Swico (2008) X