E Waste Morroco Blaser_2011 HP-Empa

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Current Situation and Economic

Feasibility of e-Waste Recyclingin 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


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Current Situation and Economic Feasibility of e-Waste Recycling in Morocco

A

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 fr 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 40000 tons of obsolete IT equipment and consumer goods weregenerated 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

dont 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.


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B

Dependency of business performance on the amount of

WEEE treated at different commodi ty 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.

-5'000

-4'000

-3'000

-2'000

-1'000

-

1'000

- 500 1'000 1'500Cost/Benefit[in1'0

00MAD]

WEEE treated [t/y]

4.11.2010 2010 2008 2004-2008 2004


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Table of Content

1 Introduct ion ................................................................................................................. 21.1 Objectives ........................................................................................................................... 2

2 Framework Condi tions ............................................................................................... 42.1 Legal Background ............................................................................................................... 42.2 Required Standards by HP ................................................................................................. 72.3 Recycler and Refiner ........................................................................................................ 122.4 Costs ................................................................................................................................. 24

3 Model Development .................................................................................................. 283.1 Outline of Relevant Elements ........................................................................................... 283.2 Model Description ............................................................................................................. 40

4 Model Resul ts ........................................................................................................... 454.1 Reference Scenario .......................................................................................................... 454.2 Parameter Sensitivities ..................................................................................................... 494.3 Including Reuse and Refurbishment ................................................................................. 58

5 Conclusions .............................................................................................................. 615.1 Current Situation ............................................................................................................... 615.2 Economic Feasibility ......................................................................................................... 61

6 References ................................................................................................................ 64Glossary ........................................................................................................................... 66List of Figures ................................................................................................................. 68List of Tables ................................................................................................................... 69List of Abbreviations ....................................................................................................... 707 Appendix ...................................................................................................................... I

7.1 WEEE Classification hazardous/non-hazardous ................................................................. I7.2 Relevant Regulations for WEEE management (Rochat & Laissaoui 2008)........................ II7.3 Collected economic data ................................................................................................... VI7.4 Material Composition for Model ......................................................................................... IX7.5 Assumptions for Appliance Composition ............................................................................ X


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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.


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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 dchets), 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 s tudies (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 Restric tions

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 2-04-4684stipulates 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 dchets agricoles et les dchets industriels non dangereux ne peuvent tre assimils aux

dchets mnagers que sur la base dun rapport danalyse exig, en cas de ncessit, par la

commune et labor par un laboratoire agr. Dans ce cas, ces dchets peuvent tre transports

et dposs dans des endroits spars au sein des dcharges contrles des dchets mnagers et

assimils.

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).

4http://www.droit-afrique.com/images/textes/Maroc/Maroc%20-%20Decrets%20appli%20code%20du%20travail.pdf


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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 Agreement10and

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-)vendorsengaged 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, agradual implementation of those standards in e.g. Morocco is possible. HP currently is following

such an approach in South Africa.

7http://www.basel.int/pub/baselban.html

8www.pops.int

9http://www.hp.com/hpinfo/globalcitizenship/environment/pdf/supcode.pdf#_new

10http://www.hp.com/hpinfo/globalcitizenship/environment/pdf/supagree.pdf

11http://www.hp.com/hpinfo/globalcitizenship/environment/recycle/finalrecstds.pdf

12http://www.hp.com/hpinfo/globalcitizenship/environment/recycle/finalreustds.pdf


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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 andrecycling 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) boardsmust 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.

Printing suppliescollected 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


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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 authorizedwithout 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 1800113and ILO Guidelines14on Occupational Safety and Health.

13http://www.ohsas-18001-occupational-health-and-safety.com

14http://www.ilo.org/wcmsp5/groups/public/---ed_protect/---protrav/---safework/documents/publication/wcms_110496.pdf


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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.

Audi ts : HP reserves the right to conduct annual audits and assessments of all vendorsites 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.


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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/sortingSeparation 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 landfillRecovery 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.


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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 e-

waste 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 1. e-Waste dismantling workplace,Valdeme.

Figure 2. Metal scrap depot, 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.


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IVSEP

IVSEP (Socit 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 Drosos16and 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 Ji sr. Figure 5. Dismantling facility of Al Jis r.

16http://www.drosos.org/en/


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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 areglued 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.

17Ecole Nationale de lIndustrie Minrale; http://www.enim.ac.ma/


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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 fract ions

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

hydrometallurgical complex)

Some special and precious metals (Cu, Pb, Zn, Co, Au etc.), PWBs in pilot

treatment (see below)

Table 3. National refiner, adapted f rom 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 plants capacity is about 100 t of PWB per month. This plant is not

18www.sonasid.ma

19www.mafoder.com

20www.maghrebsteel.ma

21Socit des Fonderies de Plomb de Zellidja, www.sfpz.ma

22www.managem-ona.com


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equipped with an off-gas control system. But according to Managem this isnt required due to the

high processing temperatures (approx. 1600 C) which prevent the generation of dioxins.

In order to supply the future final facility with a

reported capacity of 10000 t of PWB per year

(corresponding to 200000 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 1800 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

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.

231800 MAD 160 , exchange rate from 4.11.2010

Figure 6. Blister from the PWB pilot plant.


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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 dismantlingin 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.


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Figure 9. e-Waste take-back point (smallintermediary), Fes.

Figure 10. Cable burning, informal sector, Fes.

Figure 11. Push cart o f a scavenger, Fes. Figure 12. Burning of lighting equipment,informal sector, Fes.

The studies of GIZ (2010) and Rochat & Laissaoui (2008) provide more details about the informal

sector.


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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

GRIAG24was 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 theglass, 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 andEEE.

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 toMorocco. Among others, Recilec would accept the following e-waste fractions:

Cold Cathode Fluorescent Lamps (CCFL). They contain mercury and derive from flat

screens.

24www.griag.de

25www.stenametall.com

26www.mbapolymers.com

27www.recilec.com


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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 chargesinclude 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 toremove 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).


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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 2500 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 3000 MAD per month, about 20% higher than the minimum

wage.

Further wages which were used in the model are given below29:

Secretary 3500 MAD/month

Driver 3500 MAD/month

Administration assistant 6000 MAD/month

Manager 15000 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 m2and month has been calculated

28Information provided via mail by Al Jisr

29Those wages rely on indications from Valdeme


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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.

Au Ag Pd Cu Al Fe32

USD/oz USD/oz USD/oz USD/t USD/t USD/t

2010 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-price34minus 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

30Information provided via mail by ADS Maroc

31Average commodity prices for the period from January 1st2010 to November 8th2010

32Prices for steel billets

33London Metal Exchange; www.lme.com

34LME-price for steel billets


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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 2010 36are given:

PWB high grade (Au content of 200 - 300 ppm) +/- 9000 /t (lot size of 5 tons)

PWB medium grade (Au content of 100-200 ppm) +/- 5500 /t (lot size of 7 tons)

PWB low grade (Au content of 50-100 ppm) +/- 2500 /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 batterieswhich 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

35www.preciousmetals.umicore.com


37The prices for batteries offered by Umicore Batteries (www.batteryrecycling.umicore.com) are confidential.


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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 generallyrather 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 d ifferent 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

Plastic, with and without flame retardants 0 /t* MBA

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


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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 whichspecific processes. For several processes, a short description/definition can also be found in the

glossary at the end of this report.

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:

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

FUNCTION RECOVERY

MATERIAL & ENERGY

RECOVERYCONSUMER

C o n s u m e R e c o v e r

D i s p o s eFunction Material &Energy

C o l l e c t

Sorter & manual

pre-processor

Mechanical

Pre-processor

Corporate

consumer

Private

consumer

B2B-logistics

Informal

sector

Collection

sites

Retailer

Refiner

Landfill

Hazardous

waste landfill

Repairer

Refurbisher

Incinerator (no

energy recov.)

New resources

COLLECTION


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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

doesnt 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 theres 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 theWEEE 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

38Battery recycling Switzerland, 2008: 14% of total system costs (INOBAT 2009)


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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 2008, GIZ 2008, Empa 2012, Empa

Appl ication Households Non-Household Total Total1 Total

1

PCs (ton) 28'818 30'049 58'867 60'048 75'322PCs (ton) 49.0% 51.0% 100.0%TVs (ton) 152'732 1'255 153'987 152'540 158'581TVs (ton) 99.2% 0.8% 100.0%Mobile phones (ton) 2'875 0 2'875 3'543 4'256Mobile phones (ton)2 100.0% 0.0% 100.0%Video & Audio (ton) 91'009 919 91'928Video & Audio (ton)3 99.0% 1.0% 100.0% Total (ton) 275'434 32'223 307'657 216'131

4 238'159

4

Total (ton) 89.5% 10.5% 100.0%1Source: Empa by (Rochat & Laissaoui 2008)2Distribution based on Rochat and Laissaoui (2008)3Distribution according to TVs, Matriel Grand Public horc TV4Video & Audio volumes not included

Table 9. Estimated e-Waste flow in Morocco, 2008 & 2012 (in tons/year).

Year, source 2008, GIZ 2008, Empa 2012, Empa

Appl iance Households Non-Household Total Total1 Total

1

PCs (ton) 7'392 7'512 14'904 13'810 15'064PCs (%) 49.6% 50.4% 100.0%

TVs (ton) 15'273 125 15'398 15'254 15'858TVs (%) 99.2% 0.8% 100.0%Mobile phones (ton) 575 0 575 1'772 2128Mobile phones (%)2 100.0% 0.0% 100.0%Video & Audio (ton) 10'673 108 10'781Video & Audio (%)3 99.0% 1.0% 100.0% Total (ton) 33'913 7'745 41'658 30'836

4 31'773

4

Total (%) 81.4% 18.6% 100.0%source: Empa by Rochat and Laissaoui (2008)

2Distribution based on Rochat and Laissaoui (2008)3Distribution according to TVs, Matriel Grand Public horc TV4Video & Audio volumes not included

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 Collect ion 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.


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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 segment41. 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 withtheir 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.

39In a so-called Business-to-Business (B2B) model the appliances are collected directly in the companies.

40http://www.aljisr.ma/article.php3?id_article=187

41Major 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)


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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.

Figure 14. Reverse logistics - capitalization of d istribution 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.

42http://en.wikipedia.org/wiki/Reverse_logistics

A / BA B

PRODUCER/

IMPORTER

WHOLESALER/

INTERMEDIARY

RETAILER

Prod./Imp. A Prod./Imp. B

Pick up by contracted

transport companies,

alternative A:

From retailer

Pick up by cont racted

transport companies,

alternative B:

From producer/importer

Capitalization of

existing distributionchannels


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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 share

43

, whose actual amount strongly depends onfactors 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 involvestransportation 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, Mohammdia 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 :

an organized and logistically reasonable handling,

43Switzerland, EU WEEE categories 3 & 4: 21% of total expenditures (Swico 2009)

44

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


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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):

Figure 15. Exemplary sor ting tree for the main appliances cons idered 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 theirrespective 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.

Desktop PCs Notebooks Printers Mobile phonesTVs

Flat screens CRT screens Peripherals Printers Mobile phonesDesktops Notebooks

Cables &

Power supplies

Packaging


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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 dont 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 end-processors 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 ppm45Au, 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 thehigh 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-of-

the-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 environmentalimpacts 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.

45ppm parts per million


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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 variousplastic 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),


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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 CNEDS46hazardous 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, its an business decision dueto 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

46Centre National dElimination de Dchets Spciaux; http://www.minenv.gov.ma/10_projets/cneds.htm

47StEP Solving the E-Waste Problem; http://www.step-initiative.org/


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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 units composition and design is not changed significantly. The term

reconditionis 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, tooperate refurbishment requires a not negligible additional labour force.


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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 EU-

WEEE 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 dismantlingoperation, 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

AdministrationLabour 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.


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Facility location Casablanca

Appl iance scope Desktop PC (LCD & CRT monitor)

Laptop

Printer

TV set (LCD & CRT monitor)

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 3000 MAD/month

Dismantling productivity 2.5 tons of WEEE per month per workforce (based on experiencesfrom Cape Town)

Table 10. Appliance composition Morocco (based on GIZ (2010) and assumpt ions, see appendix 7.5).

Desktop

(CPU)

CRT

monitor

LCD

monitor

Laptop

Printer

Mobile

phone

CRTTV

LCD

TV

Audio

appliance

Video

appliance

General appliance composition:16.4% 18.7% 1.4% 0.9% 6.2% 1.4% 34.5% 4.1% 12.5% 3.8%

Appliance composition for the referencescenario:

19.9% 22.7% 1.7% 1.1% 7.6% 0.0% 42.0% 5.0% 0.0% 0.0%

491 11,2 MAD; 4.11.2010



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3.2.1.1 Downst ream 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 referencesceanario).

Fractions Alternative 1 Alternative 2 Alternative 3

Copper Mac//Z Mac//Z Mac//ZAluminum Mac//Z Mac//Z Mac//ZIron Mac//Z Mac//Z Mac//ZPWB high grade Valdeme Umicore, Belgium Umicore, BelgiumPWB medium grade Valdeme Umicore, Belgium Umicore, BelgiumPWB low grade Valdeme Umicore, Belgium Umicore, Belgium

CRT glass Landfill Landfill Griag, GermanyPlastics Aquaflor Export to China MBA, ChinaPlastics with FR Aquaflor Export to China MBA, ChinaCables Mac//Z Mac//Z Mac//ZWaste Landfill Landfill Disposal, SpainHg-Lamps, LCD Landfill Landfill Relec, SpainBatteries Landfill Umicore, Belgium 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.


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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.

Appl iances scope Only PCs (CRT & LCD monitors) and laptops

Considered processes Sorting, testing and refurbishment

Further costs 70% of total considered costs

Suitab

Documents

E Waste Morroco Blaser_2011 HP-Empa