Much of the Gold Value will be Under the Chip

Much of the gold value will be under the chip, if it's attached with gold/silicon solder. I believe the solder makeup is 96Au/4Si. About the only thing that will dissolve it is true hot aqua regia.The acid can only dissolve the solder starting at the edges of the chip. It can literally take take days for the hot acid to completely undermine a large chip.

The main reason for breaking up the CPU is to break up the chip. This provides much more chip edge area for the acid to penetrate. It will still go slow. When the gold is gone, you'll be able to slide the pieces around on the pad.

We used to speed this up on all-gold side braze packages by heating the part up to the melting point of the solder, on a heating block, and removing the chip with a vacuum probe. A sharp pointed knife, like an Z-Acto will work. We then put chip and package in the aqua regia.I think the solder melts around 700-800 F. There are several possible sources of gold on these parts. The percentages are educated guesses and only apply to all-gold parts - gold in every category below.

High value: 60%

- Gold(80%)/Tin(20%) eutectic braze used to attach the gold plated metal lid to the ring

- Gold(~96%)/Silicon(~4%) eutectic braze used to attach the chip to the pad

Medium value: 30%

- Gold plating on the legs

- Gold plating on the metal lid

Medium Low value: 10%

- Gold plating on the inside fingers

- Gold plating on the inside pad - the flat square area where the chip is is mounted

- Gold plating on the bottom of the chip

- Gold plating on the ring where the lid is attached

Very Low value: 2%

- Pure gold bonding wires going from the chip to the fingers - about a mile (1 mil dia.), or two (.7 mil dia.), of wire to the troy oz. This figures out to $.005 to $.01 per inch of wire.

Nitric Acid

Concentrate Nitric Acid

H2SO4 + 2 NaNO3 --> Na2SO4 + 2HNO3

The big difference in my recipie is the solubility of the sodium sulfate salt (as opposed to sodium hydrogen sulfate you produce) and the fact that my equation yields twice the nitric acid at a higher temperature ( no dry ice, just salted ice ).

I've run the numbers like you did and ended up with about 160 mL of 50% nitric (give or take a few percent) for a single mole of 96% sulfuric and using 100mL H2O to dissolve the nitre.

I won't bore everyone with the math, but here's my summary.

Reaction:

• Bring 100 mL of Distilled Water in a 500 mL pyrex beaker to 100 C
• Add the Nitre of your choice (202 gm K / 170 gm Na)
• Stir until Nitre is completely dissolved, let cool below boiling
• SLOWLY add 56 mL conc (96%+) Sulfuric Acid to Hot Nitre solution while stirring, DON'T allow the solution to boil!
• Allow solution to cool to room temp (DO NOT SKIP - VESSEL WILL SHATTER IF PUT ON ICE WHILE HOT!!!)
• When vessel reaches room temp (25 °C) put the vessel in the freezer or on a salt water ice bath
• Let stand until temperature of mixture reaches -5 °C
• Let stand at -5 °C until all percipitate settles
• Pour the COLD solution off into glass container with tightly sealed lid DO NOT POUR OFF ANY OF THE SALT IN THE BOTTOM!!!
• Makes ~160 mL ~50% HNO3
K= Potassium NA= Sodium

This acid in turn can be used to make true AR with the standard 4:1 recipie (HCl:HNO3).

Chemical Formula

Chemical Formula to Dissolve and Precipitate Metal

All, there seems to be a lot of confusion on the various acid mixtures used in the different reactions. Here's a quick Chemical formula to dissolve and precipitate Metal :

1.AR= Aqua Regia = 1 part 70% Nitric Acid, 3 parts Muriatic Acid (some guys use 4 parts muriatic). Used to dissolve high karat gold, gold powder, gold foils, dissolves Platinum when hot. Excess nitric must be neutralized with Urea to pH 1 +/- 0.4, then drop gold with SMB (Sodium Meta Bisulfite).

•Hoke states 4 fluid ounces HCl + 1 fluid ounce HNO3 dissolves 1 troy ounce gold. This is equivalent to 31 mL HCl + 8 mL HNO3 per gram of gold.

2.AR Recipie 2= Poor Man's AR = 8 oz Sodium Nitrate, 480 ml water, 960 ml Muriatic Acid plus heat. Used to dissolve high karat gold, gold powder, gold foils, dissolves Platinum when hot. Excess nitric must be neutralized with Urea to pH 1 +/- 0.4, then drop gold with SMB.

•The above mentioned recipie makes enough AR to dissolve 160 gm Pins or 32 oz of ceramic cpus.

3.HCl-Cl= Clorox Method = 4 Parts Muriatic, 1 Part Clorox (added in small increments). Used to dissolve gold foils and powder. Drop gold with SMB, NO urea needed.

4.AP= Acid Peroxide = 2 Parts Muriatic Acid, 1 Part 3% Hydrogen Peroxide. Dissolves base metals, slowly dissolves gold when heated. If gold is present drop with SMB, NO urea needed.

5.Dilute HNO3=Dilute Nitric Acid= 1 part water, 1 part 70% Nitirc Acid. Used to inquart, dissolve base metals, dissolves palladium, and dissolves silver. Silver nitrate will stain skin blue which turns black in sunlight. Skin remains black for nearly 1 week.

•Hoke states 4-6 pounds of concentrated nitric acid dissolves 1 pound of base metals. 5 pounds of 70% nitric, 1.41 sp.gr. is 1610 mL =~ 0.425 gallons.

6.H2SO4= Sulfuric Acid = 1 cup 96%+ Sulfuric, 1/8 tsp glycerin. Used as electrolyte in electrolytic cell along with a small amount of glycerin. Effective on medium to large gold plated items. With specially designed anodes and cathodes large batches of smaller plated items can be processed. Not used for Gold filled or karat jewelry.

•Use until acid is saturated with black powder typically 12-24 hours of operation. Sink any floating black powder, let settle overnight, pour off bulk of acid for reuse, and dilute remaining acid with 4 parts water.

7.HCl= Muriatic Acid = 31.45% Hydrochloric Acid. Used in the crockpot method and for general cleanup of gold foils and powders. Dissolves base metals. Also used in making stannous chloride gold testing solution.

8.SMB= Sodium Meta Bisulfite plus water=28.3 Grams Sodium Meta Bisulfite, 240 ml H2O. Used to precipitate/drop gold from gold bearing solutions.

•Add 65 grams to 100 ml water for saturated solution. Add to pregnant solution until stannous chloride test on solution is negative for gold.

9.AuCl3= Auric Chloride= Term used to describe gold dissolved into solution. Typically imparts a golden yellow color to solutions. Stains skin and other organics purple.

10.SnCl2= Stannous Chloride= Used to test solutions for precious metals. Made by dissolving metallic tin in hot muriatic acid. Loses strength when stored. Stannous Chloride, SnCl2.2H2O.—The crystals are best purchased. If kept dry and free from air they are fairly permanent. A solution is made by dissolving 20 grams in 10 c.c. of hydrochloric acid and diluting to 1 litre. The solution is not permanent. It is a strong reducing agent, and is chiefly used in solution for this purpose.

Positive color test as follows:

•Purple/Black color is Gold in solution, the darker the spot the more Gold.

•Yellow/Brown color is Palladium in solution, the darker the spot the more Palladium.

•Light/Dark Rose color is Platinum in solution, the darker the spot the more Platinum.

11.(NH2)2CO= Urea= 8 oz Urea, 480 mL Water. Used to neutralize excess nitric acid in AR process before dropping gold with SMB. Add until solution doesn't fizz and pH reaches 1 +/- 0.4.

12.AgCl= Silver Chloride= White precipitate that forms when silver is exposed to chlorine in solution. Turns purple in light, darkens further in sunlight. Solid by product of using AR on lower karat jewelry. Hazardous to melt due to fumes. Production of silver chloride should be avoided if possible. Can be converted to silver metal with lye and karo syrup or HCl and Al foil.

•For 1 tr.oz. of silver metal, about 41.5 grams of silver chloride, it takes about 20 grams of sodium hydroxide, 13.3 mL of light Karo syrup, and 133 mL of water.

13.Inquartation= 3 parts base metal (Silver perferred) , 1 part Gold, Dissolved in hot dilute nitric acid. Powder/Honeycomb that remains is Gold and higher PGM's if present in source material. Left over liquid contains Silver, base metals, and Palladium if present in original alloy.

•Hoke states 4-6 pounds of concentrated nitric acid dissolves 1 pound of base metals. 5 pounds of 70% nitric, 1.41 sp.gr. is 1610 mL =~ 0.425 gallons.

11.C12H26O3 = BDG or DBC= Butyl DiGlyme or DiButyl Carbitol = Organic solvent that combines with Auric Chloride and is insoluble in water based solutions. Separates from water based solutions as an upper phase (layer). After washing with dilute HCl gold is dropped as flakes using Oxalic Acid. Can be used on AR solution without neutralizing excess nitric acid.

How to Estimate Karat of Gold..??

How to estimate karat of gold.This is a simple formula to estimate karat gold :

 9 karat gold is 9/24 = 0.375; 37.5% pure gold

 10 karat gold is 10/24= 0.417; 41.7% pure gold

 12 karat gold is 12/24= 0.500; 50% pure gold

 14 karat gold is 14/24= 0.583; 58.3% pure gold

 18 karat gold is 18/24= 0.750; 75% pure gold

 22 karat gold is 22/24= 0.917; 91.7% pure gold

 24 karat gold is 24/24= 1.00; 100% pure gold

Gold filled jewelry and decorative items.

1/10 12 karat = 0.10 time’s total weight of object times the karat percentage.

1/20 14 karat = 0.05 time’s total weight of object times the karat percentage

Example = 1/20 gold filled 12 karat ring that weighs 8 grams.

0.05 x 8 x 0.5 = 0.2 grams of (theoretical) pure gold in ring.

Filled Value x Weight x Karat = Weight pure 24kt gold

Gold rolled (heavy plated) jewelry and decorative items

1/100 to 1/40 total weigh times the karat rating of item.

Example = 1/100 gold rolled (plated) 14 Karat ring that weighs 3 grams.

0.01 x 3 x 0.583 = 0.0175 grams of (theoretical) pure gold in ring.

Rolled Value x Weight x Karat = Weight pure 24kt Gold.

Categories of Electrical and Electronic Equipment

Categories of the equipment covered are listed in Schedule 1 and include large and small household appliances; IT and telecommunications equipment; consumer, toys, leisure and sports equipment; lighting equipment; electrical and electronics tools, monitoring and control instruments, and automatic dispensers; and medical devices. Schedule 2 provides a detailed list of covered products, broken down by category. Products intended specifically for military purpose are exempt from the Directive.

Categories of Electrical and Electronic Equipment covered by these Regulations

Large household appliances

•Large cooling appliances
•Refrigerators
•Freezers
•Other large appliances used for refrigeration, conservation and storage of food
•Washing machines
•Clothes dryers
•Dish washing machines
•Cooking
•Electric stoves
•Electric hot plates
•Microwaves
•Other large appliances used for cooking and other processing of food
•Electric heating appliances
•Electric radiators
•Other large appliances for heating rooms, beds, seating furniture
•Electric fans
•Air conditioner appliances
•Other fanning, exhaust ventilation and conditioning equipment

Small household appliances

•Vacuum cleaners
•Carpet sweepers
•Other appliances for cleaning
•Appliances used for sewing, knitting, weaving and other processing for textiles.
•Irons and other appliances for ironing, mangling and other care of clothing.
•Toasters
•Fryers
•Grinders, coffee machines and equipment for opening or sealing containers or packages.
•Electric knives
•Appliances for hair-cutting, hair drying, tooth brushing, shaving, massage and other body care appliances
•Clocks, watches and equipment for the purpose of measuring, indicating or registering time.
•Scales

IT and telecommunications equipment

•Centralised data processing
•Mainframes
•Minicomputers
•Printer units
•Personal computing:
•Personal computers (CPU, mouse, screen and keyboard included)
•Laptop computers (CPU, mouse, screen and keyboard included)
•Notebook computers
•Notepad computers
•Printers
•Copying equipment
•Electrical and electronic typewriters
•Pocket and desk calculators
•Other products and equipment for the collection, storage, processing, presentation or
•Communication of information by electronic means
•User terminals and systems
•Facsimile
•Telex
•Telephones
•Pay telephones
•Cordless telephones
•Cellular telephones
•Answering systems
•Other products or equipment of transmitting sound, images or other information by
•telecommunications

Consumer equipment

•Radio sets
•Television sets
•Video cameras
•Video recorders
•Hi-fi recorders
•Audio amplifiers
•Musical instruments
•Other products or equipment for the purpose of recording or reproducing sound or images, including signals or other technologies for the distribution of sound and image than by telecommunications
Lighting equipment
•Luminaries for fluorescent lamps with the exception of luminaries in households
•Straight fluorescent lamps
•Compact fluorescent lamps
•High intensity discharge lamps, including pressure sodium lamps and metal halide lamps
•Low pressure sodium lamps
•Other lighting or equipment for the purpose of spreading or controlling light with the
•exception of filament bulbs
Electrical and electronic tools (with the exception of large scale stationary industrial tools)
•Drills
•Saws
•Sewing machines
•Equipment for turning, milling, sanding, grinding, sawing, cutting, shearing, drilling,
•making holes, punching, folding, bending or similar processing of wood, metal and other materials
•Tools for riveting, nailing or screwing or removing rivets, nails, screws or similar uses
•Tools for welding, soldering or similar use
•Equipment for spraying, spreading, dispersing or other treatment of liquid or gaseous substances by other means
•Tools for mowing or other gardening activities
Toys, leisure and sports equipment
•Electric trains or car racing sets
•Hand-held video game consoles
•Video games
•Computers for biking, diving, running and rowing
•Sports equipment with electric or electronic components
•Coin slot machines

Medical devices (with the exception of all implanted and infected products)

•Radiotherapy equipment
•Cardiology
•Dialysis
•Pulmonary ventilators
•Nuclear medicine
•Laboratory equipment for in-vitro diagnosis
•Analysers
•Freezers
•Fertilization tests
•Other appliances for detecting, preventing, monitoring, treating, alleviating illness, injury or disability
Monitoring and control instruments
•Smoke detector
•Heating regulators
•Thermostats
•Measuring, weighing or adjusting appliances for household or laboratory equipment
•Other monitoring and control instruments used in industrial installations (for example, in control panels)
Automatic dispensers
•Automatic dispensers for hot drinks
•Automatic dispensers for hot or cold bottles or cans
•Automatic dispensers for solid products
•Automatic dispensers for money
•All appliances which deliver automatically all kind of products

What is WEEE/Waste Electrical and Electronic Equipment..?

What is WEEE? WEEE stands for Waste Electrical and Electronic Equipment. The WEEE Directive which came into force fully in 1st July 2007 puts the responsibility for disposal of electrical equipment with the manufacturers of electrical and electronic equipment, and requires them to dispose of unwanted items in an environmentally friendly manner. The WEEE (Waste from Electrical and Electronic Equipment) Directive 2002/96/EC addresses end-of-life product waste. It requires the collection and treatment of electronic and electrical equipment (EEE) at the end of the product’s life. It encourages the recycling and reuse of EEE. WEEE designed to protect the environment.

Waste Electrical and Electronic Equipment (WEEE) Regulation 2006 became law from 1st July 2007 and it is an offence to dispose of electrical or electronic equipment into landfill.

The University has a legal obligation to ensure all WEEE is transported to an Environment Agency approved recycling centre, having an audit trail for every piece of equipment disposed of. There is a cost to ensuring that the WEEE is transported to the Centre.

How to Determine the Quality of a Diamond

How to determine the quality of a diamond :

1. Test the diamond with a good diamond tester.

2. Make sure the diamond is not a synthetic such as Cubic Zirconium or Moissanite. A state of the art diamond tester will perform these tests with good results.

3. Once you have determined that the stone is a real diamond, then measure the stone diameter or width and length, depending upon the cut. You will need a diamond measuring device or a good pair of calipers that measure in metric.

4. Once you have determined the type of diamond, style of the cut and then you need to analyze the clarity, cut, and color.

5. Remember that diamonds are evaluated by the four (4) C’s, Cut, Clarity, Color, and Carat. Each of these components has many different scales, such as color have approximately 26 different values and etc.

6. Like I said earlier, there are many many different components to evaluating a diamond. The most common categories are as follows:

The Basics of Buying Diamonds

Size in Brilliant Brilliant European European Mine Cut Points Flawless with Flaw Flawless with Flaw (Carat) Minor Minor

6.25 $1.00 .50 .50 .25 N/A

12.5 $2.00 1.00 .75 .50 .25

18.75 $2.25 1.25 1.25 .75 .50

25 $2.50 1.50 1.50 1.00 .75

50 $5.00 2.75 2.75 2.00 1.25

100 $8.00 4.50 4.50 4.00 2.50

This list denotes the points in carat and price per point. 100 points equals 1.0 carat and it will weight 200 milligrams or .200 grams. And if the diamond is of good quality, I would offer about $450.00 for it. Most diamonds you will run into will be small, from 1/8th to 1/2nd carat. Do not buy chips. They are worthless.

Note; a good way to tell a synthetic from a diamond is weight it. CZ and Moissanite weighs about 75% more than a diamond.

If you are serious about this business, I strongly suggest that you purchase the following books and study the ins and outs about evaluating diamonds and gemstones.

“Diamonds Buying Guide”, by Antoinette Matlins, P.G.

“Colored Gemstones Buying Guide”, by Antoinette Matlins, P.G.

Now, for a couple of personal pointers. You will seldom run into a flawless diamond in the open market. I always purchase at the Brilliant with minor flaw or less. Depends on the evaluation of the diamond. I do not bargain or hassle over the buy price. I make an offer on the above scale and if they accept fine and if not fine, go to the next one. You don’t want to get all the diamond business, just the ones you can make money on.

A buyer of diamonds that I have used and had good luck with so far. I sell most of my diamonds (the ones that my wife doesn’t get first) to private buyers at a hundred percent markup..

Buying and Selling Diamonds and Gemstones

I have received several requests for information on buying, and selling diamonds and gemstones. I thought I would post the following information so any one that is interested in this type of activity will at least have some of the basic information.

First of all let me advise you that I have been buying and selling diamonds for the past couple of years or so. I am still a neophyte. I learned the basics from my son, who has been in the business for several years and has been quite successful in this business.

Buying and reselling diamonds is a very serious business and requires a very comprehensive knowledge of diamonds and also the market for reselling same. There is a 900% markup in the price of diamonds from the jeweler to the buyer of used diamonds.

I do not fool with any type of gemstones at all. There are too many variables involved in determining the type of gemstone, quality and most important of all the value. The diamond and gemstone business reminds me of the age old adage “beauty is only in the eye of the beholder”.

I will attempt to post a few very important things one must be aware of in the diamond business. The first rule of business is “Supply and Demand”. There are a lot of diamonds on the open market and there is a market for them. The key is being able to determine a fair purchase value and be able to sell the diamond at a profit. Just like the used car business.

Administrative Guaranties to Detect Illegal Waste Exports

Customs controls may be implemented (in EU countries, for example) to detect illegal waste exports. Therefore, flows of equipment coming from those countries are theoretically more reliable. 

The EU uses the following elements to distinguish computer equipment from waste: the invoice and contract relating to the sale or transfer of ownership of the computer,which states that the equipment is for direct reuse and fully functional; the evidence of testing in the form of a copy of the records (certificate of testing – proof of functional capability) on every item within the consignment and a protocol containing all record information; a declaration made by the holder who arranges the transport of the shipments that none of the material within the consignment is waste; and a sufficient packaging to protect it from damage during transportation, loading and unloading operations.

Brand, Chip Speed and Age

The entrepreneur can get an idea of the value of his supplies by assessing their potential longevity. With the brand name, the processor speed and the age of the equipment, he can make a good estimation of its condition and its potential to be reused. Indeed, each brand uses different components with different life spans, and some of these components are more appropriate for prolonged use than others.

Therefore, it is not recommended to purchase unbranded computers, which have been assembled by computers retailers, because they are generally less reliable in the long term.

Another strong indicator of longevity is a computer chip’s clock speed:the greater the speed, the younger the chip, and, as a consequence, the greater the lifespan: the computer in which it is installed will last longer.This indicator, which often coincides with the age of the equipment, enables its potential for refurbishment and the probability to find spare parts to be estimated. In practice, before purchasing computers over five years old, the entrepreneur must think about their possible use (thin client,etc.), about the feasibility of their refurbishment and about the market on which they could be resold.

Homogeneity of Inflows

Homogeneity of Inflows

One of the most important criteria to consider before choosing a source of supply is the homogeneity of the equipment provided by that source. Indeed, in the long term, it is more profitable to process homogeneous batches of equipment than to maintain and repair computers of different configurations and brands.

A supply of homogeneous equipment offers several advantages. First,large volumes of identical computers reduce the time needed by a refurbishment technician to reconfigure each machine, i.e. download drivers and BIOS updates. Then, the possibility to exchange parts between computers extends the global potential of the supply, since technicians can extract working parts from unusable machines, and build one working computer out of two or three unusable ones. 

Moreover, clients may prefer a uniform set of equipment which can be used as a thin client in a network architecture. However, batches of identical equipment are likely to be overvalued.

Enterprises and Administrations

Corporate clients: enterprises and administrations

When they replace their computers, some enterprises and administrations rely on small businesses to rid them of used equipment and take care of the recycling. The choice of this service provider is often made through competitive bidding. The entrepreneur will therefore have to prospect and make his company known if he wants to be chosen directly by these enterprises. The dispatching of equipment towards the recycling centre is often paid for by the recycling company, but in some cases transportation may be provided or paid for by the owner of the equipment.

Non Profit Organizations

Several international non-profit agencies (local authorities, international non-governmental organizations, etc.) from Europe and the United States focus on providing used computers and other ICT equipment to computer recycling centres. In some cases, the computers gathered are loaded and shipped overseas without being refurbished. These exports are illegal if they do not respect national and international regulations. The majority of computers donated to these agencies come from corporations who renewed their ICT infrastructure and got rid of old computers. The entrepreneur may try to form a partnership with these organizations to get access to new sources. However, he would have to pay particular attention to the quality of these supplies, which may turn out not to be profitable enough or hard to put back on the market if they are not chosen carefully.

Assessment of inflows

Before collecting equipment, the entrepreneur must estimate the operation’s profitability, the potential of equipment fit to be reclaimed and, above all, the cost of processing, which may vary greatly from one inflow to the other. Therefore, the entrepreneur must have several criteria and methods to distinguish between good and bad supplies and to know how much the refurbishment operation is going to cost.

Computer Equipment Retailers Within the Waste Recycling Industry

Local Retailers

It may be interesting for the entrepreneur to form partnerships with computer equipment retailers to collect used equipment. Indeed, these stores can suggest that their clients should return their former equipment which could then be dispatched to the recycling centre to be processed. The entrepreneur will have to operate a profit-sharing scheme with these partners. It is also possible to offer a discount or a credit note to the clients returning used equipment. The partner store will have to have enough space to temporarily store the equipment received.

Recycling Industry

Within the waste recycling industry, outsourcing is common practice. Major recycling companies outsource collecting and waste processing activities to small firms. Thus, a large volume processed by small recycling companies can come from larger recycling companies. Therefore the entrepreneur may try to get in touch with other recycling companies to find equipment fit for refurbishment.

Methods to Control the Quality of Supply

When seeking sources of used computer equipment, the enterprise must first look for the most accessible ones and must implement assessment methods to control the quality of supply. A manager must cultivate relationships with suppliers and also acquire a good knowledge of the market,to properly evaluate the value of supply.

Origins of inflows

When creating the enterprise, the entrepreneur should, as a priority, look for local sources of computer equipment and establish partnerships with local institutions (municipalities, local enterprises, etc.). Later, the enterprise may find sources on wider national or international markets.Collection requires prior arrangements with local authorities and the retail sector and needs to be incorporated into the overall waste management of the region.

Local supply

To get local supply, the entrepreneur may encourage the neighborhood inhabitants to leave their used equipment at the recycling centre. If the company has a sales area, it may offer to return used equipment from customers when they are buying newly refurbished equipment. Household waste is generally managed by local authorities. The entrepreneur should get in touch with them to see if he could get equipment through them, or if they can spread information about the recycling centre.

Income from E-Recycling

Refurbishment is the main source of revenue. The sale of unusable components to dismantlers or raw material recovery firms is only a secondary source of income. If the company cannot obtain enough used equipment for refurbishment, it will be financially at risk. In this case, the entrepreneur can establish partnerships with the local authorities, to compensate for losses: the authorities will pay the recycling company as much as they would for the burning or dumping of waste.

Before starting up, the entrepreneur should be able to secure 6 months of supply. This will ensure the durability of the future enterprise. Ensuring supply is more important than all the various contributions from the entrepreneur or his associates.

Labor Force,Handling Costs and Treatment costs

Labor force and handling costs

Adding up all the employees’ monthly salaries is enough to know the global amount of labor costs. The hardest task for the entrepreneur is to evaluate the number of employees he needs, according to the production volume of the company.

For instance, the entrepreneur has to estimate the number of computers a technician can dismantle in one hour. This ratio goes from 4 computers an hour to more than 20, if the technician is competent and is used to working on the same type of equipment.

Treatment costs

Usually, refurbishing and dismantling operations generate income when the equipment and subsets are resold. However, some components (such as faulty CRT screens) and polluting residue represent an added cost,since in most cases the enterprise will have to pay a service provider to take care of the collection of this material. The entrepreneur must find the most profitable and environmentally sound way to get rid of this material,in order to reduce the company’s expenses. Before the collecting stage,the entrepreneur should negotiate the logistical and financial management of the expenses devoted to the final treatment of waste with the client.

The entrepreneur is advised to consider the treatment of ultimate waste as soon as the business is set up. To this end, he must study beforehand the various techniques available and the offer proposed in his country. He may also examine the possibility to let his clients and suppliers take care of the

Collecting costs

Expenses devoted to the collection and transport of equipment account for a large part of the charges borne by the company. However, these expenses vary greatly from one enterprise to the other, as they depend mainly on the type of supplies, but also on the region, the collection type, the price of fuel,the distance of the collecting round, the volume of material collected, etc.

In some cases, there may not be any collecting costs, if clients or partners bring the equipment directly to the site. Therefore, assessing these costs before starting the company is a complex task. It is recommended these costs be monitored carefully once the activity is running: the company can save a substantial amount of money at this level, by optimizing collecting rounds or by renting trucks to reduce fixed expenses, for instance.

Operating budget and Running costs

Operating budget

The operating budget includes all recurring expenses, such as rent,salaries, insurance and supplies. In the case of a pilot project of creating a recycling site, conducted by the CFER , the budget was distributed as presented below.

The distribution of costs varies from site to site, but this chart gives a rough estimate. It is important for the entrepreneur to assess these costs before starting a business, in order to determine the break-even point of the company.

Running costs

Running costs comprise fixed expenses (administration costs) and variable expenses (operating costs). Generally, administration costs account for 13% to 15% of the global expenses. They include renting costs, standing charges, telecommunication costs, and a part of the salaries devoted to the management of the company. Operating expenses include maintenance costs, heating and electricity charges, the amortization of equipment, etc. To estimate these costs, the entrepreneur can try to find out what another business or organization of a similar size pays. It is best to over-estimate these costs at first.

Start-up Budget

Start-up Budget

Investments

The start-up budget comprises all costs necessary to launch an activity.It includes spending related to capital and to the creation of the legal structure, but also all the expenses and investments essential for the opening of the premises, i.e. renovations, purchase of equipment and furniture, and guarantees paid to phone and electricity providers.

Contributions in cash and in kind

The entrepreneur and his partners have several possible ways to contribute to the capital: they may put money into the business thanks to personal loans, microloans, aids and grants. These are contributions in cash. The entrepreneur and his partners may also provide equipment: vehicles,materials, furniture, premises, etc. These are contributions in kind.

Cost Analysis

Before launching a business, the entrepreneur must establish a budget,identifying the various costs the company will have to take into account. There are two parts to the budget: a start-up budget, which gives the breakdown of the one-time costs necessary to set up a recycling centre,and the operating budget, which details the on-going costs of running the centre.

This analysis will also enable the entrepreneur to plan the activity and to establish the prices, in order to be profitable and able to sustain the centre over the long term.

Tools

To perform sorting and dismantling operations, several pieces of equipment are required, all of which need to be purchased before launching the enterprise. The most important are workbenches, shelves, small tools,containers (boxes, roller bins, etc.) and a set of scales (mechanical or electronic).

The minimum set of tools per workbench recommended consists of :

Telecommunications

The centre must be equipped with effective means of communication (phone, fax, Internet connection) to be able to communicate efficiently with customers, suppliers and subsidiaries. A low-bandwidth Internet connectivity may not be sufficient to run an active centre. It is recommended to have a high-speed Internet connection.In areas not covered by cable or ADSL, there is the possibility to establish a high-speed Internet connection via satellite, which guarantees a rapid, reliable and permanent Internet access.

This type of connection requires specific outdoor equipment (satellite dish, cable, etc.) as well as a computer (with DVB-s card). There are several types of subscription offers for satellite connection, providing different bandwidths.

The transmission/reception material required is generally specific to the provider. Advantages for each type of subscription must be carefully considered, in order to select the best offer with the best bandwidth.

Water

Within the context of environmental protection, it is imperative to avoid wasting water, especially when its supply is uncertain. It also is impera tive to recover and recycle the water used by the activity. Best practices include saving water by using it more than once and collecting rainwater in tanks thanks to gutters.

As it is not drinking water but “industrial” water, it needs to be sieved and clarified. In these operations, water is filtered with a membrane, or with sand or carbon filters.

Electricity

A reliable mains electrical supply is essential to the operation of a refurbishment workshop. Without a reliable source of power, it is impossible to use a test bed. Therefore, priority in operating expenses must be given to the security of the power supply. Workshops must be equipped with an Uninterruptible Power Supply (UPS), more commonly called inverters.This device provides a stable power supply to electronic or electric components. The minimum requirement for an inverter is 650mVa. In most extreme cases, the recycling site should resort to the installation of its own generator.

The power cables coming from the electric meter must be of sufficient size to support the total power of the workstations in test (power of the central processing unit + power of the monitor) which are connected simultaneously to the cable. There should be an upstream cutout or a circuit breaker for each power cable in the electric meter. To ensure the safety of individuals, it is preferable to have ground fault circuit interrupters. Each test bed should be equipped with a 10 to 15 amp fuse. A professional workshop must have electrical emergency stop buttons at every workstation.

Health and Safety

Different devices can be used to ensure security: security bars, a volumetric alarm, smoke detectors, video surveillance, fire extinguishers under a maintenance contract and pharmacy. Static water supply and fire extinguishers should be easy to get to, in order to intervene quickly in case of fire.

Premises must also be secured to reduce the risk of theft. Moreover,they must be well ventilated and clean, to allow employees to work in healthy conditions.

Open a Sales Area

The entrepreneur may choose to open a sales area. This space dedicated to welcoming customers (about 30 m²), should face the street and some equipment should be put in the window. It is usually equipped with a reception desk and shelves to arrange reconditioned equipment. It must always be tidy, clean and well lit.

These areas are socially important, because they enable computer science fans to meet and different generations to mix. They are also educational places that help to reduce the digital divide.

Courtyard to Carry out Loading and unloading

The recycling site should have a courtyard to carry out loading and unloading operations, park vehicles and store equipment temporarily (when the appropriate precautions are taken). The courtyard is also the area in which equipment is sorted, before being sent to the storage room.

Example for fitting out a Recycling area see Picture.The parking area should be able to accommodate a small delivery van or a pickup, a convenient access to the collection truck must be arranged and a sufficient area for the unloading operations must be cleared.

The courtyard must be properly maintained and should not draw the neighbourhood’s attention to any unattended equipment. This area should be swept daily to remove nails, glass splinters and other debris that can damage vehicle tires. Waterproofing surfaces is recommended for two reasons: it helps the collection of rainwater and prevents the infiltration of polluting substances in case of leakage. If the recycling site has several courtyards, each of them should be equipped with an independent water disposal system; so that pollution risks could be limited by the closing of gates.This courtyard should be secured with wire fencing.

The Workshop

Testing, dismantling and refurbishing operations are carried out in the workshop. This area must be organized in order to optimise the efficiency of these operations. The workshop must include several test beds and dismantling stations. As assembly-line work is not efficient for manual dismantling operations, each workstation should function independently.

In some cases, it would allow the most efficient operators not to be slowed down by less experienced employees. The workstation must also be arranged so that a trolley can move around in the workshop to bring equipment and pick up components and material resulting from the dismantling operation.

The Storage Area

The recycling centre must have a storage room for materials in transit, i.e.equipment waiting to be treated, sold or dispatched to another industry. To face the irregularity of supplies, the organization of the storage room should be easy to modify.The storage room also enables the enterprise to keep running even when equipment supplies are low. The storage area is generally the biggest, and should be at least three times as big as the dismantling and sorting area.This part will be equipped with shelves, racks and areas of weighing with a scale of 1 to 500 kg. If the storage space exceeds 250 m3, a fork-lift may be needed.

It is recommended that a classification system be defined (using numbered sections) to make the handling and locating of material easier. Depending on the reclaiming industries existing in the area, it is also possible to use a shredder or a compactor in order to reduce the quantity of plastics and to put them into bundles. In this case, an appropriate solution must be considered for the treatment of waste.

The Infrastructure

The recycling site must be divided into several areas, separating activities from one another. Ideally, the site should have (at least) a storage room,a courtyard, a workshop and an office to welcome clients and manage the activity. The dimensions required for those various areas may vary according to the production volume contemplated. For instance, if most supplies come from abroad, the site must provide space to sort and store the contents of containers. Also, the subsets potentially fit for reuse must be stored in closed premises, where they are protected against bad weather.

The plan below shows a site with a 300 m² storage room, a 200 m² courtyard and a 100 m² workshop. Ten to fifteen employees can work in such premises.

The Location

The choice of location of the recycling site must be one of the entrepreneur’s main concerns. The site should preferably be set up near trading hubs and main highways, in order to facilitate exchanges with suppliers and clients. It should also be relatively close to urban and commercial zones, so that all people, even the poorest, can have access to the resale shop.

Moreover, the entrepreneur is advised to consider the place in order to find a local treatment of ultimate waste as soon as the business is set up. He must study beforehand the various methods available and the offer proposed in the local area. A good way to find such a location is to ask real-estate agents or local authorities for information.

Team Management

Team Management

Welcoming new employees

Each new employee must be able to benefit from a structured orientation programme. This programme consists of a presentation of the team and a basic description of the employee’s future missions. The entrepreneur may also welcome the employee to discuss targets and schedules. Once the new employee is working, he may be given a manual to help him understand and perform his tasks. Such a manual may consist of a description of the assigned tasks, some tips to perform them and a description of the tools to be used.

Training

To improve the competence of new employees, the enterprise may set up a training programme. The first aim of this programme is to enable,and encourage, the sharing of experience, through demonstrations and exercises involving both newcomers and more experienced employees.This programme must also define a progression plan for the new employee to follow. It will help him to estimate his level and his evolution. For example, this plan can at first appoint the employee to simple cleaning tasks, then to testing operations, and finally to computer refurbishment operations.

Dealing with occupational hygiene and safety

Employees must be informed of the occupational hygiene and safety issues relating to transportation, handling of materials and equipment, personal protective equipment (PPE), and exposure to pollutants. The enterprise is responsible for both occupational hygiene and safety. It is also responsible for emergency preparedness.

Motivating the team

To motivate the team and improve productivity, the entrepreneur may resort to the attribution of realistic work objectives and to the posting of results. The enterprise can post the quantities of equipment treated and to be treated weekly, monthly or quarterly.

Technical Staff

Technical Staff

The number of technicians working on site varies greatly. It mainly depends on the quantity of equipment to be processed, on the employees’ productivity and on the workshop’s organization. Although there are several specific parts to play in a workshop, many employees are versatile and their training enable them to change posts to meet specific needs.

Drivers and packers

Drivers and packers operate logistics and collect equipment. They have to sort and load pallets, while ensuring that the equipment is not damaged.

When collecting, they may also be responsible for listing the various equipment and their main characteristics (serial number, condition, etc.). This job does not require any specific qualification. Nevertheless, drivers and packers must be in good physical condition, and be trained to face occupational hazards. They have to be provided with protective equipment preventing cuts, dust inhalation, or spinal injuries.Once back on site, packers will have to unload vehicles and to direct equipment to the right place, according to the storage used by the company. Packers may also be responsible for providing work stations,collecting sorted components and preparing them to be dispatched to the appropriate industry.

Electrical and mechanical technician

The electrical and mechanical technician is in charge of maintaining devices, vehicles and the electrical installation on the recycling site. When recruiting, the entrepreneur must make sure that the technician is competent and experienced enough to perform these tasks: the smooth running of the activity often depends on him. As any other employee, the electrician must be provided with protective equipment to prevent possible injuries.

Workshop manager

The workshop manager manages and organizes the workshop: he plans work, establishes targets for every technician, but also motivates and stimulates the employees. The workshop manager must not only have leadership skills, but also sound technical knowledge, to be able to intervene in the event of any technical problem. Finally he has to see to the respect of safety regulations and to the individual safety of every technician.

Dismantling technician

The dismantling technician plays the leading role in the processing activity: he is in charge of the dismantling of equipment into spare parts or homogeneous material. This technician must be diligent, skillful and able to identify components to be recycled from those fit for reuse. Dismantling technicians are usually independent from one another, i.e. they dismantle equipment entirely. In most cases, they are mainly trained on site.

They must be particularly protected, as dismantling is one of the most dangerous activities. They have to wear protective equipment againstburns, but also gas or dust inhalation. The entrepreneur must ensure that these employees know and respect the various techniques of handling hazardous products.

Refurbishment technician

The refurbishment technician is in charge of updating the equipment fit for refurbishment. He must be diligent and methodical, but above all he must have perfect knowledge of technical and application-oriented functioning of the equipment. He is responsible for the whole computer refurbishment process. First, he has to technically update the computer, testing, cleaning and replacing its components, before installing a new exploitable computer system. The computer can then be put on sale.

Business and Administrative Staff

Business and Administrative Staff

Entrepreneur

As the executive director, the entrepreneur is the main manager of the enterprise. He guarantees the smooth running of the company and is responsible for its development and global strategy. He will have to prepare the business plan, define the positioning on the market, create partnerships and represent the enterprise. Therefore, he must be specially versatile and master all management techniques extremely well, as well as the technical aspects of his job. The entrepreneur will greatly benefit from being assisted by a business manager and a supply manager to ensure the expansion of his activity.

Business manager

The business manager is in charge of organizing sales and exploring the market in search of new clients. At first, the business manager may be responsible for all the commercial aspects. But later, as the company gets more and more clients, the entrepreneur may consider employing more business managers, each of them in charge of a particular area or a certain client type.

Supply manager

As the name suggests, the supply manager’s job is to manage supplies and stocks. He is in charge of prospecting to identify new sources of equipment. He is also responsible for taking delivery of the equipment and for ensuring its proper storage.The supply manager plays a strategic role, since he has to assess the value of equipment purchased, and to determine the quality and the type of equipment to buy, in order to make sure that the activity can run continuously. He can also be in charge of planning collection rounds in the most efficient and time saving possible manner.

Other administrative jobs

To enhance the performance of the activity, the entrepreneur may consider creating other jobs. For instance, a secretary can be put in charge of a number of administrative tasks, such as document writing, mail management or the classification of records. Such a job requires method and organizational skills.

To improve communication, the entrepreneur may call on a marketing and public relations officer who organizes marketing campaigns and works to improve the corporate image. And finally, as the activity grows, an accountant will become required to manage the company finances.

Computer Recycling Business

The success of a computer recycling business depends on good human resources management, as well as on the professional skills of its employees. However, in some countries, it may be difficult to find people qualified to meet the specific requirements of a recycling activity.

Therefore, the entrepreneur will have to see to it that the employees are carefully recruited, properly supervised and, above all, well trained in order to acquire new knowledge and technical skills. At first, the entrepreneur will also have to ensure that the staff has complementary skills and a good sense of responsibility.

Common Models of Recycling Structure

Common Models of Recycling Structure

Model 1: creation of a new activity

The creation of a new recycling business is often initiated by an entrepreneur seeking to undertake a different activity. The entrepreneur is generally advised against starting such a business alone. It would be better if he associated himself with other, close entrepreneurs or small business owners who have complementary skills.

At the beginning, the enterpreneur will use the local market both for supplies and sales, and will quickly create three to seven jobs to support development.As the new business leader, the entrepreneur will have to be versatile and be ready to take up various tasks, technical as well as administrative.Therefore, he should have skills and experience in trade, logistics and, ifpossible, the treatment of used computer equipment.Several legal structures could be used for such a business: association,natural person or sole proprietorship.

Model 2: creation of a partnership or an association

When an entrepreneur belongs to an international or national network of associations, businesses or governmental agencies, he will have the oppor tunity to provide solutions that bridge the digital divide. With the support of this network, he can create a business that specialises in putting used equipment back on the market, at a lower cost so that it can be used by low income people, libraries, schools and other local associations.

To create such a business, the entrepreneur will have to be very versatile.In the early stages of the project, he will be in charge of presenting it to his partners, and will have to provide them with a relevant economic model and market research. If he works on an international level, for example if he receives foreign containers of used equipment, he will also have to know how to assess the value of this equipment and to determine to what extent it could be put back on the market. He will also have to master logistics and management.

Model 3: development of activities

Some businesses already involved in computer science and computer technologies can choose to distinguish themselves, using their existing activity to take up computer recycling. Such a business has several advantages: the entrepreneur already knows the market and the recycling issues, and the profits generated by other activities can ensure rapid development. Moreover, the project manager can take advantage of an already existing customer base.

In such a business, the project manager will be responsible for assessing the profitability of this new activity and for bringing about synergies within. In this case, logistics skills are also a valuable asset.

With this model, the project manager will not have to set up a new legal structure, as the new activity can take place within the existing structure.

Afterwards, the new activity can have its own structure, such as a partnership or an association, in order to motivate employees as much as possible.

Common Legal Structures

Different countries have several different types of legal structures for new businesses and it is the responsibility of the entrepreneur to choose the structure that is most suitable for the relevant organisation.

Natural person

Asset ownership, in this case, is not shared, and therefore, personal property is not protected. The natural person is responsible for all risks relating any commitments made. Therefore if, for example, a client goes bankrupt, the sole trader will suffer as a result. In most countries, a simple registration to the adequate authorities is sufficient to create this structure.

Sole proprietorship

By creating a sole proprietorship or opting for a general corporation,the founder will have control. There are many advantages to sole proprietorship: it is flexible, reactive and it satisfies the customer’s needs and requests; it will emphasize the quality of service. It should be noted that companies can benefit from government assistance, in the form of loan guarantees, tax exemption or reduction of certain fees or taxes.

Association

A non-profit association differs from a for-profit association partly because its earnings and profits are indivisible and belong to all its members.Associations may also receive grants. In an association, the board of directors is responsible for the structure and major decisions are often made collectively.

Cooperative

A cooperative is a collective enterprise in which each member is both an employer and an employee. This presupposes that the members are willing to undertake activities in groups and to accept the collective distribution of profits. The main aim is to develop the company’s own procedure rather than to make personal profits. This does not, however, prevent the company from ensuring its viability, and from ensuring its viability by way of expanding and generating profits as any other company.

Partnerships

This type of company can be seen as a legal entity having one or more partners. This structure is recommended if two or more cofounders bring contributions, either in cash or in industries (for example a business or a vehicle). This type of structure can boost banking relationships, as well as access to certain markets. However, there are several disadvantages to this kind of legal structure. First, the general partner has huge responsibilities. Second, the enterprise can be difficult to manage, because all decisions must be made in meetings. Lastly, partnerships often have to resort to consultants on accounting and administrative issues.

Business in Computer Recycling

Local business interested in computer recycling and reuse can play an important role in local and national authorities’ efforts to manage used and end-of-use PCs and related equipment in an environmentally sound manner. These businesses may protect against possible leaching of harmful materials and prevent unsafe practices common to the informal market. Businesses that repair, refurbish and upgrade PCs and related equipment for reuse provide the market with good products at affordable prices, thus bridging the digital divide. Finally, businesses can take advantage of valuable raw materials contained in PCs by extracting them in an environmentally sound manner, or if not possible, by selling certain materials to facilities that can do so properly. Governments can regulate formal businesses better under this process and ensure that movements of waste are properly monitored and controlled.

As local communities continue to access technology, more recyclable material will become available locally. Opportunities exist, and will grow over time, for local businesses to take advantage of the value contained in used and end-of-use PCs and related equipment. This guide provides a suggested blueprint for creating such a business, and for doing so in a sustainable and environmentally sound manner in conformity with national and international laws and regulations.

The second-Hand Market

The second-Hand Market

In developing countries, refurbished computers from the second-hand market provide opportunities for people who cannot afford to buy new equipment. Growing demand for refurbished equipment in these countries is matched by the need for spare parts for maintenance and computer repair. Recycling businesses can provide repaired and refurbished computers to this rapidly growing market at affordable prices.

The growth in the price of raw material

A local recycling business may also profit from the sale of components and recovered materials to facilities equipped to provide environmentally sound recycling. The rise of raw material prices has made recycling used computer components an economically viable enterprise for environmentally sound facilities,creating a market for properly disassembled components and scrap parts. This can be a profitable alternative for entrepreneurs, while preventing harmful practices such as dumping, open burning and incineration.

Economic Opportunities with the Recovery

The potential economic opportunities associated with the recovery of materials are also responsible for the advent of informal markets in developing countries not equipped to process used and end-of-use computers efficiently and safely for workers’ health and the environment. 

From an economic perspective, informal material recovery processors lose significant amounts of metals that could be more effectively recovered through the use of existing state-of-the-art technologies. More importantly, these informal markets employ recycling and materials recovery techniques that expose workers and the environment to potentially harmful pollutants.

Formal Versus Informal Recycling Practices

Formal Versus Informal Recycling Practices

Certain recycling processes, including shredding, grinding, burning and melting of components, may release harmful fumes or dust that, when emitted or leached into the soil, can have harmful health and environmental impacts. In many developing countries, an informal network of waste processors employs techniques such as open burning, without adequate safety protocols necessary to protect workers’ health. Moreover, recycling is often done at or near waste dumps which are not equipped to prevent harmful leaching into soil and groundwater. By definition, the “informal” network of waste processors is not regulated, and so it has proven to be difficult for many countries to monitor harmful practices and implement controls to protect workers’ health and the environment.

Modern recycling facilities are equipped with technologies that can handle these processes with minimal risks to the environment and worker health,while also ensuring the added environmental benefit of optimal recovery of materials. These treatment methods, however, are expensive and lend themselves to economies of scale. Financial constraints for electronics recycling, both in terms of the quantity of available recyclable material and profit margins, will prevent the construction and operation of a state of-the-art facility in all countries. It is therefore often necessary to move certain materials to countries having the capacity to provide environmentally sound management. A challenge facing many countries is how to develop an appropriate framework to ensure that the materials that cannot be managed by the informal sector in an environmentally sound manner are sent to countries with the capacity to do so in a way that is attractive and profitable to all stakeholders.

Imports

In developing countries, informal sector businesses often import containers of ICT equipments of variable quality. Some equipment may not be suitable for repair, refurbishment and reuse. These containers often come from donations or large secondhand sales, and importers have limited means of controlling the quality of this equipment. Imports of equipment not suitable for reuse can increase the challenge of ensuring environmentally sound management and may present added risks to human health and the environment.

Equipment Dismantling and Refurbishment

Generally speaking, equipment dismantling and refurbishment activities,pose little or no threat to human health or the environment when they are carried out properly, taking into account all human health and environmental requirements. PCs and other ICT equipment do contain minimal amounts of potentially harmful substances (e.g. lead, cadmium, beryllium),but they are in solid, non-dispersible forms, and thus pose no concern for human exposure or environmental release in ordinary use or handling of whole equipment. Activities relating to handling, including manual disassembly and most repair, refurbishment or upgrade activity can thus often be safely undertaken by workers in developing countries, provided they are carefully monitored and safeguards are in place.

However, currently in most developing countries such activities are carried out by the informal sector without regard to safety and environmental concerns. Therefore,there is an urgent need to improve existing conditions before imports of WEEE to these countries are initiated.

The European directive WEEE

The European directive 2002/196/EC related to the WEEE (Waste Electronic and Electrical Equipment) published in January 2003 signaled a first step in the political management of used computer equipment. This directive defines the concept of Extended Producer Responsibility (EPR) concerning the collection of WEEE, the systematic treatment of hazardous parts, the recovery of all the WEEE collected, with priority given to reuse and recycling, and also to eco-design. 

In countries with EPR laws like the EU, some US states and Japan, electronics manufacturers are financially responsible for dealing with the waste from their products, meeting collection and recycling targets and other obligations. However, EPR only applies to domestically generated wastes.

Some developing countries are also starting to establish their own policies in order to ensure the quality of inbound shipments of used e-equipment. For instance, in August 2007, China adopted a bill on the “Circular Economy” based on a system of fines and bonuses. An entrepreneur in the business of repairing used computer equipment should be sure that the laws of his country, and of any country from which the used computer equipment has been imported, have been followed

Future Implementation

Under its Strategic Plan adopted in 2002, Parties to the Basel Convention have identified used and end-of-use electronic equipment as a “priority waste stream”. This higher profile has promoted a number of WEEE focused initiatives under the Convention, such as the Mobile Phone Partnership Initiative (MPPI), a private-public partnership addressing the environmentally sound management of used and end-of-use mobile phones. At the G8 level, Japan’s proposed “3Rs Initiative”, which explores options for recycling of used equipment and materials, particularly in Asia, is gaining in importance in this connection.

At the Eighth Conference of the Parties (COP), held in late November 2006 in Nairobi, the Parties adopted the Ministerial Declaration on e-waste (known as the “Nairobi Declaration on the Environmentally Sound Management of Electrical and Electronic Waste”) and a formal COP Decision on e-waste,establishing the priority e-waste management issues for governments and other stakeholders, calling for the development of a work plan on e-waste for the next biennium. Future partnerships may include a Partnership for Action on Computing Equipment (PACE), which could address the development of recycling guidelines and pilot projects for shipments to pre certified recycling facilities.

In addition, the Parties are considering a series of options raised under the aegis of the MPPI to address issues and ambiguities associated with the classification and management of mobile phones for the purpose of facilitating increased collection and the environmentally sound management of mobile phones.

Basel Convention Definition

Basel Convention Definition of Waste

End-of-use electronic equipment that meets the Basel Convention’s definitions for “waste” and “hazardous waste” would be subject to import and export controls and shipment prohibitions under the Convention.The Basel Convention defines wastes broadly as substances or objects which are disposed of or are intended to be disposed of or are required to be disposed of by the provisions of national law». The Convention then defines disposal by reference to lists of disposal operations, such as landfill or incineration, including recycling operations. Repair of computer equipment, however, is not a listed operation, and so computer equipment that is truly intended to be repaired is not defined as waste.

Basel Convention Hazardous Wastes

Equipment classified as waste that is derived from waste streams or contains a constituent listed in Annex I of the Convention (e.g. lead, cadmium, mercury, beryllium) is presumed to be hazardous, unless it can be demonstrated that the waste does not possess any hazardous characteristics provided under Annex III. The Basel Convention does not provide any guidance on the development of testing protocols, leaving their design and implementation to national governments. However, for specific waste streams technical guidelines have been adopted for implementation by Parties.

The Convention provides further classification guidance on the classification of electronic equipment. Under Annex VIII the following wastes are categorized as hazardous wastes when they contain Annex III characteristics:

(i) A1180, waste electrical and electronic assemblies and scrap (“e-scrap”) are presumed to be hazardous if they contain one or more of the following components: batteries listed under Annex VIII; mercury switches; CRT glass; other activated glass and PCB capacitors; and any additional component that contains an Annex I constituent;

(ii) A1150 - precious metal ash from incineration of printed circuit boards not included in Annex IX;

(iii) A1170 - waste batteries not specified on Annex IX that contain Annex I constituents to an extent to render them hazardous; (A1190: waste metal cables coated or insulated with plastics containing or contaminated with coal tar, PCB, lead, cadmium, other organohalogen compounds or other Annex I constituents;

(iiii) A2010 - glass waste from cathode-ray tubes and other activated glass. Wastes defined as hazardous in domestic legislation (Article 1(1) (b) of exporting, importing or transit countries) are also covered by the Convention. Companies handling electronic waste should be mindful of national legislation implementing the Basel Convention to ensure compliance with applicable country requirements.

Transboundary Movements

The Convention imposes prior notification and consent controls on cross border shipments of covered hazardous wastes between Parties. When the Basel Ban Amendment, adopted in 1995, comes into force, trade in hazardous wastes between Parties is not allowed. Transboundary movements of hazardous wastes between Parties and non-Parties in the absence of an agreement are also prohibited.

For example, OECD members have completed an Article 11 Agreement that governs hazardous waste classifications and notice and consent procedures for shipments of waste for recycling among OECD states.Governments are obligated to ensure that waste shipments only proceed where the wastes can be managed in an “environmentally sound manner” in the countries of import.Waste trafficking is penalized and sanctions vary according to each party’s legislation.

The Basel Convention

The Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal is a global agreement that establishes the international legal regime governing the transboundary movement of hazardous wastes destined for disposal or recycling. The Convention was adopted in 1989 and came into force in 1992. Currently 169 countries and the European Community have become Parties to the Convention. Parties meet their obligations through domestic regulations that implement the Convention.

The Convention aims to protect human health and the environment against the adverse effects resulting from the generation, management, transboundary movements, and disposal of hazardous and other wastes. In the spirit, intent and purpose of the Basel Convention, each country needs to establish and operate an effective control on the import of hazardous and other wastes; this includes end-of-life equipment. Unless such control is in place and enforced, the massive transfer of uncontrolled e-wastes to developing countries in particular, will continue to generate an evergrowing health and environmental burden for these countries. Of the 170 Parties to the Convention, Afghanistan, Haiti and the United States have signed the Convention but have not yet ratified it.