5-6 Marketing Secondary Resources Reclaimed From Waste Project Scope and Relationship to China's Agenda 21 This project seeks to promote the development of the waste reclamation industry in an efficient and environmentally sustainable manner. It was developed in accordance with programme area 19D of China's Agenda 21 - Management of Waste Recycling - and will contribute to the environmentally sound management of solid wastes, the conservation and sustainable use of natural resources, the sustainable development of industry, and sustainable energy production (Chapters 11, 12, 14, and 19). 1. Background China produces each year over 4 million tons of waste steel, 1 million tons of waste metals, 10 million tons of waste glass, 2 million tons of waste plastics and 0.9 million tons of waste rubber. Its several hundred thousand tons of municipal solid waste also contain valuable nonferrous, rare and precious metals. Reclamation of these secondary resources could result in substantial benefits for China's economy, environment and natural resources. China has made considerable progress during the last 40 years in developing a waste reclamation industry. It has conducted key research projects at the Resource Reclamation Institute, developed a number of waste reclamation technologies, and established the China National Resources Reclamation Corporation (CRRC) to market secondary resources both in China and abroad. CRRC and a number of small private companies in China have been actively involved in recent years in the collection, reclamation, and marketing of these valuable resources. Yet because China has not yet established any overall policies, standards or regulations governing waste reclamation, private companies have turned to inexpensive but highly polluting reclamation technologies in order to increase profits, and compete more effectively. In addition, the absence of any centralized information system or trading market has limited China's ability to meet the needs of its development sector in an efficient manner and compete in the world market. China is now seeking international cooperation and assistance in order to develop more comprehensive recovery technologies, adopt policies, and regulations to promote waste recycling while ensuring compliance with high environmental standards, and form an orderly, and efficient market system for secondary resources by establishing a centralized information system, and trading market. 2. Objectives Long-term Objectives Promote the development of the waste reclamation industry in accordance with high environmental standards, develop technology to recovery secondary resources from waste in a more comprehensive manner, improve China's ability to meet the resource needs of its development sector in a more efficient manner, and compete effectively in world markets. Gradually establish trading markets for different types of secondary resources. Immediate Objectives Establish a comprehensive regulatory and management system to promote the development of the waste reclamation industry in accordance with high environmental standards. Establish a national secondary resources information center, data base, and information network connecting industrial centers throughout China to coordinate information on supply and demand, pricing and technological developments. Establish a centralized waste metals trading market to coordinate trading in the spot and futures market. Develop comprehensive utilization technologies to increasing the recovery of waste steel from 50 percent to 70 percent; the recovery of nonferrous metals from 25 percent to 30 percent, and the volume of waste rubber from 30 percent to 50 percent of total resources. 3. Activities The project will be under the supervision of the State Science and Technological Commission and the State Economic and Trade Commission. The Ministry of Internal Trade (MIT) is responsible for organizing and implementation. The project duration will be two years. 3.1 Establish a comprehensive regulatory and management system to promote the development of the waste reclamation industry in accordance with high environmental standards. Research the policies, laws, and management of secondary resources in other countries, including environmental requirements for emissions, and discharges from reclamation plants. Research the economic policies of other countries that encourage the technological and economic development of the waste reclamation industry, including tax policies. Research standards in other countries for the classification and quality of waste metals, waste rubber, waste nonferrous metals, and waste plastics. Based upon this research, develop and establish a comprehensive regulatory, and management system for secondary resources suitable for China. Draw up standards for the efficient operation of trading markets in secondary resources. This activity will be implemented by the Reclamation Management Office of the Ministry of Internal Trade. 3.2 Establish a national secondary resources information center, data base, and information network connecting industrial centers throughout China to coordinate information on supply and demand, pricing, and technological developments. Establish a national secondary resources information center in Wuhan. Set up a data base and information management software system. Establish an information network in large and middle cities throughout China, connected with relevant information networks in other countries. Develop and disseminate information on secondary resources supply and demand, statistical data and dynamic analysis of secondary resources, and information on technological developments. This activity will be implemented by the China National Resources Reclamation Corporation. 3.3 Establish a centralized waste metals trading market in Wuhan to coordinate trading in the spot and futures market. Establish a market, trade building, and delivery settlement storehouse. Install hardware facilities for an information management system. Develop software for an electronic trading system for spot and futures markets. Establish a market information announcing system and communication network system. This activity will be implemented by the China National Resources Reclamation Corporation. 3.4 Develop technologies to increase the recovery rate and comprehensive utilization of non- ferrous metal scraps. Complete research to develop technology for non-polluting lead reclamation in order to reclaim 10,000 tons of waste lead per year. Develop research on processing techniques for other non-ferrous metal scraps and establish a comprehensive utilization production line. These activity will be implemented by the Gucheng Nonferrous Metals Smelter in Hubei Province. 3.5 Develop technologies to increase the recovery rate and comprehensive utilization of rare and precious metals. Recovery platinum, palladium, rhodium, and others from waste catalyst containing precious metals. Produce wolfram and cobalt chemical products from wastes containing wolfram and cobalt. Recover precious metals from wastes containing gold or silver. These activity will be implemented by the Xuzhou Reclamation Research Institute of the Ministry of Internal Trade. 3.6 Establish projects in Chengdu for the recovery and comprehensive utilization of waste rubber. Produce 40 mesh rubber powder from waste rubber. Develop techniques for the property modification of rubber powder. Establish a production line for activated rubber powder and application production. These activity will be implemented by the China National Resources Reclamation Corporation and Chengdu University of Science and technology. 4. Inputs 4.1 International Cooperation Training of 30 senior management personnel for establishment of waste metals trading market. Training of 30 senior technical personnel in advanced waste reclamation technologies. Technology transfer: Importing prototype processing equipment and technology for treating waste iron and steel, smelting equipment for waste lead, and crushing equipment, and technology for recovering waste rubber. 4.2 Budget Total funding for this project is US $25.8 million, including US $18.5 million in domestic funds, US $6 million in soft loans, and US $1.3 million in international grant assistance. Budget (in million US dollars) Items Chinese Inputs External Input Grant Soft-loan Total Training 0.30 0.30 Materials 0.50 0.50 Technology 1.50 0.80 1.90 4.20 Experiments 2.50 3.10 5.60 Research 1.00 0.20 1.00 2.20 Construction 13.00 13.00 Total 18.50 1.30 6.00 25.80 5. Benefits This project will promote the reclamation and comprehensive utilization of valuable secondary resources in a manner that will benefit China's economy and environment, conserve natural resources, and save energy. The establishment of a centralized information network, data base, and trading market will increase the efficiency of the waste reclamation industry, enable China to meet the needs of its development sector, and improve its competitive position in world markets and ability to absorb foreign capital. 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