1. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 Technical Process of WEEE Recycling: Products and Processes Presented to China’s National Appliance Productivity Center (CNAPC) Conference on WEEE Robin Ingenthron President, American Retroworks Inc. VP, ElectroniCycle Inc. September 24-26, 2002

2. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 State Recycling Contracts: 3 Basic Goals Meet Chinese/World demand for copper Use Best available environmental management Least possible cost

3. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 Example: the CRT Monitor US demand: 50 million monitors per year Chinese demand: 50M monitors per year India demand: 50M monitors per year % Made in Asia rising every year These 3 countries will need 450,000,000 lbs. of copper for monitors alone

4. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 3 Sources of Copper World Copper Production: 2001 1. Mining (concentrates)13,570,000 tons 2. Primary Smelter Recycling 1,234,000 (includes mix of brass, etc.) 3. Secondary Smelter Recycling 802,000

5. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 Lifecycle of Copper Mining Primary Smelting Secondary Smelting Wire FabricationProduct Assembly Distribution / RetailFirst Consumer2nd Consumer RepairRecycleDisposal

6. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 First Effect: Reduce Mining Waste 500 Tons Mining, Concentrating 2% concentrates, 98% waste Primary Smelting 350 tons residuals, 145 tons leachate tailings 1.8-2.7 tons SO gas 1.8 tons slag 1 ton refined copper cyanide Arsenic

7. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 Pollution Subsidies for Raw Materials Number of 15 largest EPA Superfund Sites which are hard rock mines: 14 Percent of all toxic emissions from all US Industries attributed to hard-rock mining: 47% Estimated Cost of Superfund cleanups to taxpayers $10B

8. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 Recycling Markets Primary Smelting Secondary Smelting First Consumer 2nd Consumer Repair Recycle

9. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 Recycling Plant Shipping

10. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 1) Collection and Receiving 6 Million residents Collections/deliveries from City services, Retailers, Charities, Trash Haulers Receiving: Must categorize, price, weigh each load and enter it into administration database. $/lb monitors $/lb TVs $/lb CPUs $/lb mixed

11. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 Glass Smelters Plastic Recyclers Gold, copper, aluminum other metals Smelters Destiny of materials at ElectroniCycle

12. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 2) Technical Triage 3) Demanufacturing /Processing Department 4) Technical Department $8-10 / hour 70% labor force 50 categories of scrap remove screws grading baling $10-22 / hour 30% labor force 41 categories of parts, reuse, etc. inspect for in-house repair inspect for 3rd party repair 15-30%70-85%

13. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 Why is USA recycling expensive? Demanufacturing labor is high (75 monitors per FTE/day) Plant and overhead is new Baling, shredding, air compressing, power generating equipment, degaussing equipment, rolling stock, shredder Revenues: Tip Fees 85% Repair / Resale 10% Recycling 5%

14. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 Labor cost to product value $ spent and earned per 1000 monitors Does not include tipping fees charged to government. Unscrupulous competitors avoid demanufacturing and repair labor, send WEEE overseas “as is”

15. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 3. Demanufacturing / Processing Processed Material Grades of gold Grades of copper Grades of ferrous Grades of Plastic Grades of Alumium Grades of Glass

16. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 Possible End-Markets for Processed Material Disadvantages

17. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 Sample Beijing EPA Permit for graded copper scrap. These permits are intended to allow 3 million tons per year of processed (clean) scrap, but some may have been abused by waste exporters

18. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 4. Technical Department 4) Technical Department Domestic Refurbishment - TVs 1992+, 75 cm+ - Monitors 1996+, 55cm+ - Parts resale, cords, etc. - Networking Equipment Export Reuse - Working small monitors - Repairable large monitors - Pentium computers - Repairable PAL TVs, VCRs 25% material = 60% revenue

19. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 4. Examples of Technical Dept.

20. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 Realistic Reuse Goals % of weight Re-usable Red portion is still good for reuse, Blue portion should be processed to remove toxic waste

21. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 Largest Sellers of Refurbished Computer Equipment (USA) Gateway Dell IBM Hewlett Packard/Compaq “Certified” Refurbished units is fastest growing profit center Used Quality Products compete with New Off-name products Hire your best counterfeiters!

22. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 Summary of Alternatives

23. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 Chinese secondary non-ferrous smelters

24. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 Chinese secondary non-ferrous smelters, cont.

25. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 Recycling or Disposal Jobs / Ton 1 ton = about 50 picture tubes Most employment from repair and reuse; Next most employment is from correct processing

26. ElectroniCycle, Inc. PO Box 1010 Middlebury, VT 05753 P: 802-382-8500 More Perspectives Www.ban.org www.unctad.org www.mineralpolicy.org www.mpi.org.au www.retroworks.com www.electronicycle.com