What the waste export ban means for South Australia
Prepared by Rawtec for South Australia. Written by Kristian Le Gallou and Kat Heinrich, approved by Mark Rawson. Based on January and February 2020 consultation and the 2018-19 Recycling Activity Survey.
Summary published
The federal government committed to phasing out exports of non-value-added recovered material on a fixed schedule: unprocessed glass from January 2021, mixed plastics July 2021, whole used tyres December 2021, unprocessed single-resin plastics July 2022, and mixed paper and cardboard July 2024.
Rawtec worked out which of those actually threatened South Australia. The answer is one of the four.
Fibre is the problem. Glass, plastics and tyres are close to fine, and plastics may even be an opportunity.
Of mixed paper and cardboard exposed to the ban
Of recovered fibre currently remanufactured in SA
Of mixed plastics exported, out of 31,100 recovered
Of glass exported overseas
Stream by stream
Fibre is the vulnerability
South Australia generates 291,400 tonnes of paper and cardboard a year and recovers 229,700 of it, or 79%. Half goes interstate and 49% goes overseas. Local remanufacturing takes 1,300 tonnes, which is 0.2%. Between 60,000 and 70,000 tonnes of mixed paper and cardboard is directly exposed. At the time, cardboard was worth about $100 a tonne and mixed paper was worth nothing or cost money to move.
Solving fibre locally means a very large plant
A new paper mill needs a minimum of 500,000 tonnes a year to work, which is more than twice what the state recovers. A polishing plant handling 50,000 to 100,000 tonnes would cost $10 to $20 million. A pulp plant needs 150,000 tonnes minimum and would run into tens of millions.
Plastics are barely affected, and could be an advantage
South Australia generates 78,700 tonnes of plastic and recovers 31,100, of which just 2,100 tonnes is exported as mixed plastic. 88% of mixed plastics are already processed in the state. The report’s read is that South Australia could position itself as a national plastics recycling hub, and puts the feedstock needed at around 120,000 tonnes a year. The obstacle is transport, at $30 to $100 a tonne interstate.
Glass is not exposed at all
83,300 tonnes generated, 74,000 recovered, and zero exported overseas. 15,000 tonnes goes interstate while 58,200 tonnes is imported from interstate, because two local bottle manufacturers want the cullet. Colour-sorted glass was worth $100 a tonne, mixed glass minus $30.
Tyres are manageable
19,600 tonnes generated, 18,600 recovered. 14,700 tonnes becomes tyre-derived fuel at about $3 a tonne, 3,800 tonnes goes interstate for crumb rubber at around $600 a tonne, and only 500 tonnes of casings go overseas. The report estimates 5 to 10% a year is illegally dumped or stockpiled, roughly 1,000 tonnes.
There is already more sorting capacity than material
Materials recovery facilities were running 121,100 tonnes a year against 180,000 tonnes of capacity, and another 85,000 tonnes was planned. The report calls that an oversupply of capacity, which is an unusual thing to find in this sector.
What it recommended
Exclude clean, sorted baled fibre from the ban, since it is value-added. Then explore secondary processing such as polishing plants, and expand product stewardship for packaging.
Federal and state financial support for processing capacity, help with interstate transport costs, attract remanufacturers, mandate recycled content standards, and ban products that cannot practically be recycled.
Increase source separation, install colour sorting, expand beneficiation capacity, and make interstate transport cheaper. The demand already exists.
Develop the crumb rubber market, and build tyre-derived fuel capacity for energy-intensive users.
The market prices and consultation reflect January and February 2020 only. The addendum notes COVID-19 brought falling commodity prices, volatile markets and a freeze on investment, and expected uncertainty and delay rather than a fundamental change in direction. It also suggested the ban timelines could be extended.
Related reports
The infrastructure and measurement context.
The full addendum covers each stream’s market analysis and the infrastructure assessment behind it.
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