E-waste recycling programme producing gold faces obstacles

E-waste at the stage of being recycled

The motherboards of computers that’ll be put through recycling process

Since 2020, it’s been decided to implement a plan to recycle e-waste domestically rather than exporting it; with the goal of recovering its valuable metals. According to the Environment Minister at that time, Mahinda Amaraweera, about 28 companies registered with the Central Environment Authority collected electronic waste from various areas and exported it for recycling. The idea of the then Environment Minister was to extract valuable metal parts for domestic use and incinerate the remaining waste, rather than exporting the electronic waste which is in abundance.

Electronic waste has been increasing at the highest rate globally. It is increasing at a rate of 2.6 percent per year, compared to other types of waste. Given this, the rise in e-waste in Sri Lanka is not unexpected. To tackle this issue, 14 private companies were registered with the Central Environment Authority to launch a recycling initiative. The target of the initiative was to minimise the environmental impact of e-waste.

Among these registered companies, the Ceylon Waste Management Company launched a project to produce 24-carat gold, marking a significant start to electronic waste recycling efforts. This new initiative, which began as a project of the Board of Investment, paved a new path for e-waste recycling as a long-term endeavour focused on effectively recycling e-waste and reducing environmental damage.

In recycling electronic waste, the company has several responsibilities to ensure the process is successful. One of its primary objectives is to separate and recycle the electronic waste. The precious metals contained in components such as circuits are finally extracted. After extraction, valuable metals such as gold, silver, platinum, copper, tin, and nickel are recovered.

Similar to the extraction process happening worldwide, this process is also successfully implemented in Sri Lanka. The technology, equipment, and methods used are consistent with those employed in other countries.

The Central Environment Authority issues a licence to facilitate the participation in this process. The licence is known as the Hazardous Waste Management License. Some companies that have obtained this license recycle electronic waste and export components such as circuits. This export generates income as well. In 2019 alone, approximately 1,000 tons of circuits and parts containing precious metals were exported to countries such as Korea, Belgium, and Japan, generating only $650,000 in revenue. This means that, on average, one ton of these components earned $650.

When one ton of electronic circuits is recycled in Sri Lanka, it is possible to obtain approximately 250 grams of 24-carat gold. One ton, including other metals, can yield about $24,000. However, exporting circuits coming as electronic waste has hindered the continuation of the electronic waste recycling programme in Sri Lanka. This is because there aren’t enough electronic circuits available to produce the necessary quantities of precious metals. 

No action taken by the authorities

However, it doesn’t appear that the Ministry of Industry or the Central Environment Authority plans to take any action on this issue. Sudesh Nandasiri, Chairman of the Ceylon Waste Management, has informed other industrialists and government institutions through letters that if exporters provide the relevant circuit parts to the local factory, $650 would be paid per ton. Despite this offer, positive responses haven’t been received so far. Providing these parts to the local company would also save on export taxes, storage costs, and transportation expenses for the companies involved.

Currently, only 5 percent of electronic waste in Sri Lanka is processed for the recovery of gold and other metals. The remaining 95 percent is either stored in government and private institutions, exported, or released into the environment. To increase the recovery of metals, including gold, from electronic circuits, there needs to be an expansion in collection capabilities and the establishment of more collection centres.

The Basel Convention prevents the transportation of waste from one country to another. It is a convention focused on the control of the movement and disposal of hazardous wastes. Specifically, it aims to reduce the movement of hazardous waste between countries by prohibiting the transfer of such waste from developed to less developed countries. The convention was opened for signature on March 2, 1989, and came into force on May 5, 1992. As of October 2018, 188 countries had signed the convention. Amendments to the convention were made in 1995 and further revised in 2019. The convention includes measures to ban the export of industrial waste, including for recycling purposes. Despite these regulations, Sri Lanka continues to export electronic waste in violation of the Basel Convention, which is widely recognised globally.

Although the Central Environment Authority should be taking action to halt this export, it seems that no effective measures have been implemented yet. If the export of e-waste was banned, companies that collect this waste could more easily supply circuit parts to the Ceylon Waste Management company. Several companies have already signed agreements with the Ceylon Waste Management company to provide electronic circuits for the recovery of gold and other metals. Sudesh Nandasiri said, “Some companies are interfering with this process rather than supplying the necessary circuits. The issue arises from the smuggling of scrap materials banned for export alongside electronic waste. Some individuals misuse licences intended for electronic waste exports to send prohibited materials, such as copper, brass, aluminum, cast iron, and steel, out of the country. There have also been instances where electronic waste was exported and subsequently intercepted by Sri Lankan customs, resulting in fines. For example, in 2016, a case involving the export of copper was reported. A government institution that acted on this matter instructed Sri Lankan Customs to retain the copper and release the electronic waste”.

Meanwhile, in 2019, a major partner of a controversial company was granted a licence to export electronic waste. This licence remains valid as of the time of writing this article. Additionally, another company grinds copper into a powder, conceals the copper within electronic waste, and exports it.

According to Nandasiri, despite the Basel Convention being in effect since 2019, its regulations are not being enforced. He suspects that this may be due to connections between individuals involved in exporting metals such as copper, brass, and aluminum, along with electronic waste, and those responsible for creating the laws.

According to the Central Environment Authority, approximately 25,000 tons of electronic waste are collected annually in Sri Lanka. However, a United Nations report indicates that the amount of electronic waste used and discarded in each country. Data from reports between 2021 and 2023 show that Sri Lanka produces around 375,000 tons of electronic waste per year. Despite these developments, government sources however maintain that only 25,000 tons of waste were accumulated. Nandasiri added that this discrepancy might be due to an attempt to portray that facilities are lacking when collecting electronic waste in the country.

Ceylon Waste Management Company requires 3 tons of circuits separated from electronic waste per day. To achieve this, 300 tons of electronic waste are needed. For the entire year, 100,000 tons are necessary to successfully complete this work. To produce gold and other metals, at least 30 percent of the collected electronic waste must be processed. However, currently, only five percent is being collected.

Attempts made to undermine an industry 

For years, government institutions have spent a significant amount of money to implement an electronic waste removal programme. However, even five percent of the population hasn’t turned to electronic waste recycling. In this context, Nandasiri pointed out that, instead of using United Nations data, minimal data is presented to undermine an industry that could bring dollars to the country by falsely indicating a lack of electronic waste.

The All Ceylon Metal Foundry Industrialist Association (ACMFIA) has informed the Ministry of Industry and the Central Environment Authority to halt the export of copper, silver, tin, and cast iron which is being conducted under the guise of an electronic waste export licence. They claim that there isn’t enough copper, brass, cast iron, and aluminum for their industries in Sri Lanka. ACMFIA President K. L. D. Chaminda Sanjeeva, said that these metals are exported as used goods and equipment. “While it is claimed that the country is earning income in dollars from these metal exports, only 50 percent of the revenue is being received through official channels. The remaining amount comes through informal methods like Undial and Hawala,” he said. Sanjeeva added that if the total amount of exports were declared at once, a significant tax would have to be paid, hence the current approach.

Due to the shortage of raw materials such as copper, brass, iron, white iron, cast iron, and high carbon steel, industries relying on these materials are on the brink of collapse. Although the export of these metals is prohibited, they are still being sent out of the country under the guise of electronic waste export. Additionally, they are exported as used equipment and no tax is imposed; resulting in no monetary benefit to the country. Sri Lanka has approximately 300 copper and aluminum-related industries, employing around 4 million people, according to data from the Ministry of Industry. In the past, the Ministry of Industry arranged to present media reports on this.

However, according to Sri Lanka Customs’ data, between 2023 to May 2024, India received 221,951 metric tons of copper, while the UAE received 12,960 metric tons of aluminum and 28,582 metric tons of copper. Germany received 43,810 metric tons of copper, while Malaysia received 10,400 metric tons of copper. Additionally, 1,581,279 metric tons of aluminum were exported to Korea, 354,000 metric tons of aluminum to Saudi Arabia, 242,000 metric tons of aluminum to Tanzania, 73,000 metric tons of aluminum to Japan, 242,000 metric tons of aluminum to Thailand and 501,000 metric tons of aluminum to Greece.  All these exports took place despite the ban on the export of metal, iron, and scrap. Relevant authorities need to investigate and halt these exports, but unfortunately, no such action has been taken yet.
 

One of the directors of the Ministry of Industries and Commerce commenting on this issue said that a 2020 cabinet paper prohibited the export of scrap materials. “Sri Lanka Customs, the Immigration Department, and the Ministry of Industry do not permit these exports. However, scrap materials and electronic waste are still being illegally exported. Industrialists have raised complaints regarding this. When we contacted the relevant companies, it became clear that these exports are being conducted under various HS codes. While exporting them as raw materials is not allowed, these materials are sent abroad as used goods, which are essential for Sri Lankan industries. This practice is contributing to the collapse of local industries. When they attempt to export these materials, we request a report regarding them. If the materials cannot be exported, we do not grant permission. However, these materials are still being secretly exported,” the source fromMinistry of Industries and Commerce said. The director added that no legal permission is given for these exports.

This newspaper then spoke with Central Environment Authority Director General P.B. Hemantha Jayasinghe to clarify these matters. He said, “According to Basel convention, there is no prohibition on exporting waste. Scrap materials and e-waste were exported to be recycled because we did not have the necessary facilities at that time. In addition to the Basel Committee and the Central Environment Authority there are many other institutions. Decisions are made in coordination with the Ministry of Industry, Sri Lanka Customs, the Department of Immigration and Emigration, the Ministry of Environment, and other related institutions. It is this collective body that authorises waste exports. If anyone can manage all these wastes within the country, there is an opportunity to do so. If the Katunayake factory does not have the electronic waste it needs, it can purchase waste from all over Sri Lanka. We are not opposed to that. If there are people who produce products from waste, we will provide them with maximum support.”