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BRIEF REPORT Recycling of metal scrapsa positive concept leading to augmentation of reserve base Pradeep Kumar Jain Received: 14 February 2011 /Accepted: 4 August 2011 /Published online: 26 August 2011 # Springer-Verlag 2011 Abstract Recycling gives the industry a means to create treasure out of trash. Recycling of used metals in the form of scrap or secondary articles has assumed significance, especially in developing countries like India where reproc- essing to recover metal is needed to meet the raw material deficit as well as conservation of minerals. For India, where labour is cheap, the metal and scrap recycling industry holds the potential of being a big employment generator and contributes to growth of mineral-based industrial activity. An overview on importance of recycling of metal scraps, its process, advantages, legal aspects, international scenario, etc., to conserve the domestic mineral resources for the future has been attempted in this paper. Keywords Metal scrap . Recycling . Environment . Import . Waste metal . E-waste Introduction The purpose of this paper is to make an overview on importance of recycling of metal scraps, its process, advantages, legal aspects, international scenario, etc., to conserve the domestic mineral resources for the future. Used metal and scrap are commonly used as a raw material for ultimate metal production. Most prevalent use of metallic waste scrap recycling is in iron and steel, copper, aluminium, zinc, lead, brass, nickel, tin and magnesium, where metal extraction is chosen to be an economical option. Secondary metal, so produced through scrap route is used almost for all purposes. Recycling is a key component of modern waste reduction and third component of reduce, reuse and recyclewaste hierarchy. Recycling of metals and scraps is a positive concept leading to augmentation of reserve base. Recycling convert used metal or scrap into new metal, obviating the mining of ore, thereby preserving and conserving nonrenewable mineral resources. Recycling, apart from environmental and con- servation advantages, also has huge financial benefits. The cost of producing metal from the recycling of metal and scraps route is only a fraction of primary route which involves exploration, investment in land, machinery/plant running costs, maintaining profitability in market fluctua- tions leading to long gestations periods apart from damage and restoration to environmental at considerable costs. Recycling gives the industry a means to create treasure out of trash. Recycling of used metals in the form of scrap or secondary articles has assumed significance, especially in developing countries like India where reprocessing to recover metal is needed to meet the raw material deficit as well as conservation of minerals. For India, where labour is cheap, the metal and scrap recycling industry holds the potential of being a big employment generator and contributes to growth of mineral-based industrial activity. Domestic smelters always import scrap of different varieties to produce secondary metal for different applications. The current focus on high prices of metal in international market and the increasing demand indicate that all resources companies should focus on recycling of metal and scraps if they want to be cost effective. The biggest challenges that Indias metal recycling industry faces is that it is an unorganised sector where most of Indias metal recycling take place by way of ill equipped in terms of its collection, finance, technology and most importantly on environmental parameters. P. K. Jain (*) Indian Bureau of Mines, Nagpur, India e-mail: [email protected] Miner Econ (2012) 25:4551 DOI 10.1007/s13563-011-0007-4

Recycling of metal scraps—a positive concept leading to augmentation of reserve base

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Page 1: Recycling of metal scraps—a positive concept leading to augmentation of reserve base

BRIEF REPORT

Recycling of metal scraps—a positive concept leadingto augmentation of reserve base

Pradeep Kumar Jain

Received: 14 February 2011 /Accepted: 4 August 2011 /Published online: 26 August 2011# Springer-Verlag 2011

Abstract Recycling gives the industry a means to createtreasure out of trash. Recycling of used metals in the formof scrap or secondary articles has assumed significance,especially in developing countries like India where reproc-essing to recover metal is needed to meet the raw materialdeficit as well as conservation of minerals. For India, wherelabour is cheap, the metal and scrap recycling industryholds the potential of being a big employment generatorand contributes to growth of mineral-based industrialactivity. An overview on importance of recycling of metalscraps, its process, advantages, legal aspects, internationalscenario, etc., to conserve the domestic mineral resourcesfor the future has been attempted in this paper.

Keywords Metal scrap . Recycling . Environment . Import .

Waste metal . E-waste

Introduction

The purpose of this paper is to make an overview onimportance of recycling of metal scraps, its process,advantages, legal aspects, international scenario, etc., toconserve the domestic mineral resources for the future.

Used metal and scrap are commonly used as a rawmaterial for ultimate metal production. Most prevalent useof metallic waste scrap recycling is in iron and steel,copper, aluminium, zinc, lead, brass, nickel, tin andmagnesium, where metal extraction is chosen to be aneconomical option. Secondary metal, so produced through

scrap route is used almost for all purposes. Recycling is akey component of modern waste reduction and thirdcomponent of “reduce, reuse and recycle” waste hierarchy.Recycling of metals and scraps is a positive concept leadingto augmentation of reserve base. Recycling convert usedmetal or scrap into new metal, obviating the mining of ore,thereby preserving and conserving nonrenewable mineralresources. Recycling, apart from environmental and con-servation advantages, also has huge financial benefits. Thecost of producing metal from the recycling of metal andscraps route is only a fraction of primary route whichinvolves exploration, investment in land, machinery/plantrunning costs, maintaining profitability in market fluctua-tions leading to long gestations periods apart from damageand restoration to environmental at considerable costs.

Recycling gives the industry a means to create treasureout of trash. Recycling of used metals in the form of scrapor secondary articles has assumed significance, especiallyin developing countries like India where reprocessing torecover metal is needed to meet the raw material deficit aswell as conservation of minerals. For India, where labour ischeap, the metal and scrap recycling industry holds thepotential of being a big employment generator andcontributes to growth of mineral-based industrial activity.Domestic smelters always import scrap of different varietiesto produce secondary metal for different applications.

The current focus on high prices of metal in internationalmarket and the increasing demand indicate that allresources companies should focus on recycling of metaland scraps if they want to be cost effective. The biggestchallenges that India’s metal recycling industry faces is thatit is an unorganised sector where most of India’s metalrecycling take place by way of ill equipped in terms of itscollection, finance, technology and most importantly onenvironmental parameters.

P. K. Jain (*)Indian Bureau of Mines,Nagpur, Indiae-mail: [email protected]

Miner Econ (2012) 25:45–51DOI 10.1007/s13563-011-0007-4

Page 2: Recycling of metal scraps—a positive concept leading to augmentation of reserve base

Evolution

Metal recycling is an evolutionary industry. Copper andcopper alloys have been recycled for thousands of years.Primary lead refining stage is well known right frommediaeval times. Economic development in the westernworld began, along with other factors, with growingproduction and consumption of metals. Subsequently, itwas realised that in the process, it was generating metalwaste and could recycle it. Thus, a process parallel toscientific and safe production of metal has evolved byrecycling it. Later, it was realised that it was generatingmore scrap than it could possibly consume. Recycling donein a safe and scientific manner was beginning to generatesurplus metals. Gradually, scrap (including decommissionedships) started moving to the undeveloped and developingnations. Developing countries like India seized opportunityand started metal recycling business. Used metals such ascopper, brass, zinc, nickel and a mixture of all these assecondary metals and scraps have been imported from anumber of countries. Secondary lead refining from scraphas started during 1970s at the time of rapid industrializa-tion in America and Europe by way of rapid developmentof automobile and telecommunication industries where leadacid batteries were deployed.

Recycling process

Used metal and scrap recycling can broadly be divided in twoparts—physical and chemical. In physical recycling segment,metal scrap is re-rolled or re-melted into basic structure likeingots or sheets and is treated as new metal. This is true forsteel, aluminium, copper, copper alloy, tin, etc.

In the case of chemical recycling, lead metal is a classicexample, which is extracted through a chemical processfrom its compounds. The principal source of recyclablematerial is used (or discharged) automotive batteries, fromwhich lead is recycled chemically.

The Working Group on Non-ferrous Metals set up by theMinistry of Mines, Government of India made strongrepresentation on the need to encourage recycling in India asa long-term solution for conserving energy and resources. InIndia, though metal industry is many decades old, therecycling sector with modern state-of-the-art technology hasnot really taken off. Worldwide, the fully developed andorganised recycling operations contribute about 32% metalrequirement for the global downstream sector, i.e. 6 milliontonnes. In India, scrap collection activities are still nascent.The utensil industry and casting industries are the majorconsumers of scrap.

Organised scrap collecting, segregation and processingactivities can generate considerable quantity of scrap and

metal waste every year in the country which can further bechannelled for recycling to produce metals. These processesare energy efficient and environment friendly.

The production of metals and consumption of scrap ofimportant metals like steel, aluminium, copper (products),lead (primary) and zinc (primary) in 2008–2009 in India isgiven in Table 1.

To produce 57 million tonnes of steel, about 51 milliontonnes of iron ore as primary source other than iron andsteel scraps was consumed in 2008–2009.

Iron and steel

Iron and steel scrap is one of the essential requirements formanufacture of steel in mini-steel industry as well as somemajor steel plants. Though India’s production of iron andsteel is sufficient to meet the domestic demand, it importsscraps to meet requirements of supply of essential grades.Iron scrap is available in the country in the form of pressedbundles, a mixture of used steel components (called as acommercial scrap), turnings and borings and heavy meltingscrap. These are generated by automobiles, railways andengineering workshops.

Recycling of steel is synonymous with the ship breakingindustry. Scrap generalised by ship breaking has been amajor source of recycled steel. Older ships build during the1970s and 1980s are going to the ship breaking yards inIndia, Pakistan and Bangladesh. In China, the ship breakingyards are almost closed down as most of its rolling millshave closed, and there is no market for ship scrap. Shipbreaking activities are carried out at various places on theIndian coast, the largest concentration is on the West Coastat Alang and Sosiya villages, Bhavnagar district, Gujarat.Alang is the largest shipyard in the world. By ship breakingabout 2.3 million tonnes of recyclable steel is generatedevery year which contributes to around 1% to 2% of thedomestic steel demand.

Ferro Scrap Nigam Limited (FSNL), under the Ministryof Steel, Government of India, undertakes the recovery and

Table 1 Production of metals and consumption of scrap in India,2008–2009

Metal Production Consumption of scrap

Steel 57 –

Aluminium 1.35 –

Copper (product) 0.85 0.07

Lead (primary) 0.12 0.005

Zinc (primary) 0.66 0.01

Quantity in million tonnes. Source: Indian Minerals Year Book, 2009,IBM, Nagpur

– not available

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processing of scrap slab slag and refuse generated duringiron and steel making at steel plants. The details of theoperating field units of FSNL are given in Table 2.

MSTC limited provides a virtual market place fordomestic sellers and buyers to do business in metal scrapboth ferrous and non-ferrous.

Aluminium

Aluminium recovery from scrap has become an importantcomponent of the aluminium industry. Scrap recycling inIndia constitutes about 25% of the over 1 million tonnealuminium production. Recycling of aluminium used metalis much lesser capital incentive than primary metalproduction as the process uses only about 5% units ofenergy against 13,000–15,000 units consumed for everytonne of metal produced through the bauxite–alumina routein a modern smelter. Besides, it keeps the emission levels ofgreen house gases to a low of 5% from the actual emissionexperienced during primary production. Further, for every 1million tonne of aluminium produced annually throughrecycling, about 6 million tonnes per annum of bauxiteresources can be conserved. Moreover, recycling processdoes not require pollution control equipment, such asscrubbers, which are mandatory to control emission insmelting operations.

Copper

Recycling of copper scrap has been a long process in Indiawith secondary smelters spread almost throughout theMaharashtra and Gujarat States. Sometimes, virgin copperis priced lower than the production cost per tonnes and evenmetal recovery from scrap becomes un-economical indeveloped countries. Therefore, secondary copper smeltersin India face huge scarcity for used copper metal and scrap.Tiny unit with an average monthly capacity between 100and 300 tonnes also recycle scrap for manufacturinghandicrafts for exports.

Lead

Recycling of metal is an important feature of the base metalbusiness, and the lead metal is the most recycled metal inchemical recycling segment. In metal refining industries,the secondary lead from scrap constitutes fourth largestmetal production next to steel, copper and aluminium.Recycled lead metal constitutes about 70% of total worldconsumption of lead by battery industry. Lead acid batteriesafter recycling yield hard lead in the range of 23% to 30%and lead oxide/sulphate in the range of 35% to 40% beside5% to 8% hard rubber, 18% to 30% electrolyte and restplastic parts. Lead-based products are economic to collectand recycle. However, workmen’s health and environmentalpollution aspects have to be given top priority to make thisindustry sustainable.

Zinc

Recycling in zinc is necessary to reduce cost, as the residueafter production involves 5–7% of zinc. Zinc ash iscommonly recycled imported waste. Secondary zinc isused primarily for the metal’s application in toys and otherarticle’s of additional aesthetic value.

Process quality control and analytical methods develop-ment are of prime importance in any non-ferrous metallur-gical process industry.

E-waste

E-waste includes wastes from discarded old computers,TVs, mobile phones, refrigerators, washing machines andother electronic gadgets at home or in offices. Theseelectronic wastes contain valuable and precious metal likecopper, aluminium, iron, gold, silver, platinum, palladium,selenium and hazardous metals like arsenic, cadmiumchromium, lead, tin, mercury, zinc, etc. The untreated e-waste releases heavy and other metals, chemicals difficultto break down and plastics which take a very long time to

Table 2 FSNLs operating unitsSerial number Location Steel plant Commencement

1 Rourkela, Orissa SAIL-RSP 1962

2 Burnpur, West Bengal SAIL-IISCO 1964

3 Bhilai, Chhattisgarh SAIL-BSP 1983

4 Bokaro, Jharkhand SAIL-BSL 1984

5 Vishakhapatnam, Andhra Pradesh RINL-VSP 1990

6 Durgapur, West Bengal SAIL-DSP 1991

7 Dolvi, Maharashtra ISPAT 2000

8 Duburi, Orissa NINL 2002

9 Ranchi, Jharkhand HEC 2010

Recycling of metal scraps for augmentation of reserve base 47

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break down. Consequently the soil, water and air have to bearthe load of such pollutants. The recovery of metals from e-waste is not only an imperative way to utilise them asresources but is also a challenging task to provide an eco-friendly and energy saving technology. In India collection andrecycling of e-waste is not properly developed yet due to theunorganised sector and technology.

The government is considering banning the import ofused computers and other electronic waste. These areprimarily imported from developed nations such as UnitedState, Australia, Canada and part of Europe.

Advantages

One of the properties of metals is the ability to be recycled.Virtually all metal can be recycled without loss of quality.Recycling thus acts as an important counter balance thatcomes with huge ecological advantages, sustainable devel-opment as also socio-economic ones. The ecologicaladvantage is direct, that is conserving mineral resourcesand avoiding environmental damages by way of mining.Recycling, apart from ecological advantages, also has hugefinancial benefits. The economic advantages are similar thatof conserving financial resources that would have gone intothe mining of ore, processing and production of new metal.The cost of producing metal from the recycling route isonly a fraction of primary route. The social advantages arethe creation of a large number of jobs in skilled andunskilled category.

Scrap recycling is a profitable business, which providesmargins up to 20% depending upon the metal and grade ofscrap processing and over the prices of virgin metals.However the profit margin gets squeezed once price ofvirgin metal decline, as consumer prefer virgin metal tosecondary one.

Small-scale industries engaged in manufacturing andexport of metal handicraft depend on these metals scraps asthey cannot afford the expensive primary metals. Brassused for making household appliances would becomecostlier in case primary copper and zinc were to be useddue to the price difference of 25–30% of their primary andscrap varieties.

Legal aspects

As per Foreign Trade Policy, 2009–2014 HBP (Vol. I), theimport of any form of metallic waste, scrap will be subjectto the condition which has been given in Appendix.

Delhi High Court imposed a ban on the import of all toxic/hazardous waste in India since 1996. India requires shreddedscrap metal to be inspected before it is shipped to the ports. It

has become mandatory for both ferrous and non-ferrousshredded scrap to carry the government’s pre-shipmentinspection certificate. Shredded scrap was earlier exemptedfrom inspection, as it was assumed that metal put through ashredder was free of explosive or hazardous materials.

The inspection on scrap has been prompted by series ofaccidents, the first of which is happened at Bhushan Steel andStrips Ltd. in October 2004 in Delhi when 12 workers diedafter a scrap charge containing live ammunition exploded in afurnace. About a year later, four workers were killed at twoscrap yards while handling material brought in from overseas.Despite stringent regulation of scrap import, two workers diedand seven injured at steel maker DVS Steel & Alloy,Gaziabad, Uttar Pradesh in 2005. They had been feedingscrap containing explosives into the furnace. Another workerat Jawala Steel Mills, Burdwan district, West Bengal waskilled and two others wounded in an explosion caused byscrap containing live ammunition.

As per Form I of the Hazardous Waste (Management,Handling and Transboundary) Rules, 2008 under Ministry ofEnvironment and Forest (MOEF), the State Pollution ControlBoard will register the traders (scrap importers). The Form I isfor obtaining authorization for collection/reception/treatment/storage/disposal of hazardous waste. The purpose of the rulesis to ensure that metal scrap which is otherwise allowed to beimported without MOEF’s permission and DGFT licence isnot mixed with other illegal waste. As perMOEF clarification,the customs authorities shall be instructed to clear theconsignments imported by traders subject to the fulfilmentof other essential conditions namely Pre-Shipment InspectionCertificate and random inspection by customs authorities toensure that the consignment contain only permitted metalscrap as per declaration.

Import

As the domestic scrap recovery is not significant because ofunorganised and fragmented collection system, the countryhas to depend solely on import even to meet therequirement of small-scale industries. Metal Scrap TradingCorporation Ltd. (MSTC Ltd.) is known internationally asone of the biggest importers of steel melting scrap in thecountry for use by secondary steel industry. It undertakesimport of scrap on behalf of large industrial houses incompetition of the other private parties. India is a netimporter of waste and scrap of different metals mainly fromUK, USA, United Arab Emirates, Saudi Arabia, Australia,Netherland, South Africa, etc. Secondary metal so producedthrough scrap route is used almost for all purposes.Commodity wise import of metals waste and scrap(quantity and value) during 2007–2008 to 2009–2010 (upto September 2009) is given in Table 3.

48 P. K. Jain

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The total import of metals waste and scrap in India in year2008–2009 was 4.8 million tonnes of US $3.225 billion ascompared to 3.9 million tonnes of US $2.796 billion during2007–2008. It shows a growing trend of import of metalswaste and scrap. In term of quantity on an average out oftotal import of waste and scrap from last 3 years, 90% sharerepresented by iron and steel, 5% aluminium, 2% copper andrest 3% includes zinc, lead, nickel, tin and magnesium.

International scenario

More than half the world’s lead consumption comes fromrecycled sources, with the figure rising to more than 60% inthe Western World. Considerably, more lead is now recycledthan mined. In the major economies, recycling of lead is amature business, and in the biggest economy, the UnitedStates, 98% of batteries are recycled. But as a part ofenvironmental regulation, lead smelters in the USA arecompelled to spend more than $10 million per year onpollution control alone.

The purpose of scrap recycling differs from country tocountry especially in the Asian countries and the West.While Europe and North America, recycling is an econom-ical option as well as to safeguard the environment, indeveloping world it is done because it’s economical and itsupplement the insufficient supply of domestic production.

Canada’s metals recycling sector is both mature andextensive, comprising in excess of 2,800 firms geograph-ically diffused across every province and territory. Virtuallyevery major Canadian community is serviced, in somemanner, by a Canadian metals recycler. The individual firmscomprising the Canadian metals recycling industry varywidely in size, scope and level of sophistication. Theinfrastructure of this industry has been likened to thatof a pyramid in which a large number of small andmedium-sized enterprises form the base of the pyramid,and a smaller number of larger, more sophisticated firmsoccupy the apex. Regardless of a firm’s position in thepyramidal structure, all perform vital, inter-related activ-ities and are reliant upon each other for the smooth,efficient functioning of the collection, recycling and recoveryactivities.

In Australia, scrap metal collection has long been aviable trade where aluminium and steel are usually themetals recycled. The European Union, Japan and Koreahave legislation for the recycling of metals. In the USA,similar legislation is also in place for recycling, althoughthere are different target for recycling rates.

In China, the government has built up several scrapmarket yards for looking after scrap imports and supply todomestic processors. Channelising of proper scrap tradingand adequate timely supply of scrap has lured manysuppliers to sell scrap hassle free to China.

Table 3 Import of metals waste and scrap during 2007–2008 to 2009–2010

Serialnumber

Items Description ITC(HS)Code

2007–2008 2008–2009 2009–2010(up to September 09)

Quantity Value Quantity Value Quantity Value

1 Waste and scrap of cast iron 720410 73 26 72 34 36 12

2 Waste and scrap of stainless steel 720421 339 879 248 517 139 212

3 Waste and scrap of alloy steel 720429 80 28 88 38 77 27

4 Waste and scrap of tinned iron or steel 720430 108 33 68 32 21 7

5 Turning, sharing, chips, millings waste,saw dust, fillings, trimmings andstampings whether or not in bundles

720441 13 8 23 10 23 8

6 Other waste and scrap 720449 2,931 852 3,942 1,707 2,762 906

7 Remelting scrap ingots 720450 4 1 3 1 0.10 0.4

8 Copper and brass waste and scrap 740400 100 443 96 380 36 155

9 Nickel waste and scrap 750300 2 16 0.32 2 0.62 3

10 Aluminium waste and scrap 760200 226 411 250 432 156 219

11 Lead waste and scrap 780200 16 28 26 50 29 51

12 Zinc waste and scrap 790200 33 72 15 21 13 17

13 Tin waste and scrap 800200 0.12 0.1 0.04 0.3 0.01 -

14 Waste and scrap of magnesium 810420 0.13 0.1 0.22 0.4 0.15 0.3

Total 3,926 2,796 4,830 3,225 3,295 1,616

Quantity in thousand tonnes and value in US million dollars. Figures were rounded off. US $1=Rs. 45 as of June 17, 2011—negligible source:http://commerce.nic.in

Recycling of metal scraps for augmentation of reserve base 49

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Indonesia will require pre-shipment inspection of metalsand paper scrap imports. All containers destined for Indonesianeed to be pre-inspected by Indonesian government agency,Surveyor Indonesia or its two overseas agents. Indonesiaimports about 4 million tonnes of scrap metals per annum.

Suggestion to encourage recycling of metal scraps

Recycling of metals scraps has benefits, viz, save metalprocessing cost, energy and mineral resources, it thus needspecial attention from government as well as industry. Thecapacity building of finished product (metals) by plant mayquantify inputs from metal scraps separately. Incentivesshould be given by government in form of reducing taxesand duties to increase recycling of metal scraps withmodern environment friendly technology. Grant of specialstatus for metal recycling units will increase collection ratesof metal scraps interalia finished product in form of metal.

Conclusion

Recycling can be defined as reuse in any sense of the word,which is environmentally friendly for one key reason, themore scrap metal reintroduced into circulation, the less oreto extract metal has to be mined. This will promotesustainable development by way of conservation of oreand metals. Recycling scrap metal is both cost effective forthe buyer/producer and also augments mineral reserve base.Metal recycling will regain its sheen worldwide since metalproduction is being cut due to global economic slowdown.

Import of metal waste and scrap under authority of law isappropriate and sensible from mineral economics point ofview when it is available in international market to conservethe domestic resources for the future. However, hazardoustoxic waste should not be allowed to be imported.

Recycling is much lesser capital intensive than primarymetal production as the process requires less of energy thanprimary route. Besides this, economically viable secondaryplant capacity will be less than the primary metal process-ing plant. Moreover apart from modern recycling is eco-friendly, steps to establish the essential parameters based onchemical analysis and material characterization of the inputmaterial for recycling and cleaner technology have to betaken. Keeping all its advantages in mind, a good start canbe by awarding the status of small-scale industry forrecycling unit which will pave way to command socialand corporate responsibilities.

Acknowledgements The author is thankful to the Controller Generaland Shri R.N. Meshram, Chief Mineral Economist, Indian Bureau ofMines for granting permission to publish this paper. Thanks are due to

Shri M.M. Soman, Deputy Mineral Economist (Intelligence), IndianBureau ofMines for having critically gone through the manuscript and forhis valuable suggestions.

Appendix

Import policy for metallic waste and scrap

As per Foreign Trade Policy, 2009–2014 HBP (Vol. I), theimport of any form of metallic waste, scrap will be subjectto the condition that it will not contain hazardous, toxicwaste, radioactive contaminated waste/scrap containingradioactive material, any type of arms, ammunition, mines,shell, live or used cartridge or any other explosive materialin any form either use or otherwise.

Import of following types of metallic waste and scrapwill be free subject to conditions detailed below:

Serialnumber

ITC (HS)-Indian TradeClassification(Harmonised System) code

Item description

1 72041000 Waste scrap of cast iron

2 72042190 Other

3 72042920 Of high-speed steel

4 72042990 Other

5 72043000 Waste and scrap of tinnediron or steel

6 72044100 Turnings, shavings, chips,milling waste, saw dust,fillings, trimmings andstampings, whether ornot in bundles

7 72044900 Other

8 72045000 Remelting scrap ingots

9 74040010 Copper scrap

10 74040022 Brass scrap

11 75030010 Nickel scrap

12 76020010 Aluminium scrap

13 79020010 Zinc scrap

14 80020010 Tin scrap

15 81042010 Magnesium scrap

16 78020010 Lead scrap

Import of following types of metallic waste and scrapwill be restricted either shredded or unshredded compressedand loose forms.

Serial number ITC (HS)code

Item description

1 81019700 Tungsten scrap

2 81029700 Molybdenum waste and scrap

3 81033000 Tantalum waste and scrap

4 81053000 Cobalt waste and scrap

5 81073000 Cadmium waste and scrap

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6 81083000 Titanium waste and scrap

7 81093000 Zirconium waste and scrap

8 81102000 Antimony waste and scrap

9 81122200 Chromium, beryllium, germanium,vanadium, gallium, hafnium, indium,niobium, rhenium and thallium wasteand scrap

Shredded form

Import of metallic waste and scrap listed above in shreddedform shall be permitted through all ports of India subject tofollowing conditions:

(a) Importer shall furnish the following documents to thecustoms at the time of clearance of goods:

1. Pre-shipment inspection certificate as per the formatfrom any of the inspection and certification agenciesto the effect that the consignment does not containradioactive contaminated material in any form, and

2. Copy of the contract between the importer and theexporter stipulating that the consignment does notcontain any radioactive contaminated material inany form.

Import from Hodaideh, Yemen and Bandar Abbas, Iranwill be in shredded form only.

Unshredded compressed and loose form

Import of metallic waste, scrap listed above in unshreddedcompressed and loose form shall be subject to followingconditions:

(a) Importer shall furnish the following documents to thecustoms at the time of clearance of goods:

1. Pre-shipment inspection certificate as per the formatfrom any inspection and certification agencies to theeffect that:

i. The consignment does not contain any type of arms,ammunition, mines, shells, cartridges, radioactive

contaminated or any other explosive material in anyform either used or otherwise.

ii. The imported item(s) is actually a metallic waste/scrap/seconds/defective as per the internationallyaccepted parameters for such a classification.

2. Copy of the contract between the importer and theexporter stipulating that the consignment does notcontain any type of arms, ammunition, mines,shells, cartridges, radioactive contaminated, or anyother explosive material in any form either used orotherwise.

(b) Import of scrap would take place only throughfollowing designated ports and no exceptions would beallowed even in case of EOUs, SEZs: (1) Chennai, (2)Cochin, (3) Ennore, (4) JNPT, (5) Kandla, (6) Mormu-gao, (7) Mumbai, (8) New Mangalore, (9) Paradip, (10)Tuticorin, (11) Vishakhapatnam, (12) Inland ContainerDepot (ICD) Loni, Ghaziabad, (13) Pipava, (14)Mundra, (15) Kolkata, (16) ICD Ludhiana, (17) ICDDadri (Greater Noida), (18) ICD Nagpur, (19) ICDJodhpur, (20) ICD Jaipur, (21) ICD Udaipur, (22) CFSMulund, (23) ICD Kanpur, (24) ICD Ahmedabad, (25)ICD Pitampur and (26) ICD Malanpur.

Apart from above, import of other kind of metallic wasteand scrap will be allowed in terms of conditions of ITC(HS).

As per the Foreign Trade Policy, 2009–2014, import ofwaste and scrap of iron and steel, copper and brass, zinc, tinand magnesium attracts 18.62% total import duty includingthe basic custom duty, countervailing duty, twice theeducation cess and special countervailing duty. Total importduty for import of waste and scrap of aluminium and nickelis 12.82% and 15.14%, respectively.

The view expressed in this paper is the author’s own and notnecessarily those of the Indian Bureau of Mines, for whom he isworking.

Recycling of metal scraps for augmentation of reserve base 51