30.11.16

Gold price edges higher, investor focus turns to FOMC minutes

Gold was in positive territory on the morning of Tuesday November 22 in rangebound trading in London while investors await the minutes of the previous US Federal Open Market Committee (FOMC) tomorrow.

The spot gold price was recently quoted at $1,218.45/1,218.85 per oz, up $3 on Monday's close. Trade has ranged from $1,213.75 to $1,221.05 so far.

"Gold kept its head above water, with technical-based buying supporting the market. However, with the market increasing bets on a December rate hike in the US, this buying is unlikely to persist in the short term," ANZ said.

Investors will scrutinise the minutes from the previous FOMC meeting for hints on when and how quickly the Fed will raise interest rates. Market participants currently see a 95.4% chance of a rate increase in December, according to the CME FedWatch tool.

"With investors' dual focus on the buoyant equities markets and this Wednesday's FOMC minutes, gold and the rest of the precious metals have fallen out of favour. Consolidation... is likely to be the main driver leading into the FOMC minutes," Commerzbank said.

In currencies, the dollar index has eased since peaking at 101.49 last Friday, its highest since April 2003. It was recently at 100.70, down 0.12% on the previous close.

In the other precious metals, the spot silver price was up 20 cents at $16.860/16.880 per oz. Platinum climbed $12 to $944/954 per oz and palladium at $737/743 per oz was $15 higher.

The World Platinum Investment Council (WPIC) forecasts global platinum demand in 2016 to fall 3% year-on-year to 8,040,000 oz. It sees total platinum supply at a marginally lower 7,870,000 oz year-on-year, it said in its quarterly report today.

Total platinum supply in 2017 is seen dropping by 2% to 7,745,000 oz while mining supply will be flat year-on-year in 6,000,000 oz. Platinum recycling will decline to 1,745,000 oz, down 6% year-on-year, the WPIC predicted.

It forecasts total platinum demand in 2017 to fall 2% year-on-year to 7,845,000 oz, with projected growth in jewellery demand unable to offset expected declines in automotive, industrial and investment demand, the WPIC added.

Platinum market deficit set to shrink in 2017

Platinum market deficit set to shrink in 2017 - WPIC

* Platinum market expected to see 100koz shortfall next year * Diesel share of European car market tipped to fall * Bar, coin investment seen weakening in 2017 By Jan Harvey LONDON, Nov 22 The platinum market deficit will shrink to its narrowest since 2011 next year, the World Platinum Investment Council said on Tuesday, as a drop in investment and diesel's waning share of the European car market pressure demand. The WPIC also cut its expected platinum market shortfall for this year to 170,000 ounces from the 520,000 ounces predicted in September, citing a larger than expected drop in Chinese platinum jewellery demand, and higher recycling. That deficit will likely shrink to 100,000 ounces in 2017, it said, cutting above-ground stocks of the metal to 2.045 million ounces by the end of next year, the WPIC said. "It's all good and well to say that metal is available from above-ground stocks, but as soon as the vaulted holdings aren't for sale, any deficit makes for concern, especially from industrial users," the WPIC's director of research Trevor Raymond said. Autocatalyst demand is expected to decline 1 percent next year, the WPIC said, as diesel's overall share of the autocatalyst market shrinks. Demand for platinum for use in catalytic converters was flat this year, it said, in the face of concerns that last year's Volkswagen emissions scandal would dent demand for diesel cars, which use a higher loading of platinum in their autocatalysts. "At the moment, the 2016 percentage of diesels on European roads is 50 percent. Our forecast for next year includes a 48.5 percent diesel share, so that's a fairly aggressive fall," Raymond said. There has also been a move to other forms of emissions control technology, he said. Investment in platinum, which is expected to have risen 15 percent this year on the back of strong coin and bar demand, particularly in Japan, is forecast to fall by more than a quarter next year, the WPIC said. It expects bar and coin investment to lighten, and demand for platinum-backed exchange-traded funds, which tailed off recently after a strong start to the year, to be little changed. Overall platinum demand is tipped to fall 3 percent this year to 8.04 million ounces, the WPIC said. Jewellery demand is expected to slip by 10 percent, or 300,000 ounces, as buying in number one consumer China drops for a second year. On the supply side of the market, refined production by mining companies is predicted to have fallen 3 percent this year. The WPIC revised up its forecast for recycled platinum supply this year to 1.86 million ounces from 1.745 million in September, due chiefly to rising jewellery recycling in China. PLATINUM SUPPLY/DEMAND ('000 OZ)* 2015 2016 2017 (f) (f) Refined production 6,150 5,970 6,070 Change in producer inventory 45 40 -70 Total mine output 6,195 6,010 6,000 Recycling 1,710 1,860 1,745 TOTAL SUPPLY 7,905 7,870 7,745 Automotive demand 3,395 3,390 3,360 Jewellery 2,880 2,580 2,625 Industrial 1,685 1,720 1,610 Investment 305 350 250 TOTAL DEMAND 8,265 8,040 7,845 Balance -360 -170 -100 Above-ground stocks 2,315 2,145 2,045 * Source: World Platinum Investment Council, Platinum Quarterly Q3 2016

Platinum: A Fundamental Analysis

Summary

Platinum has been in a supply deficit for nine of the last 12 years, with 2016 expecting another deficit.Cost of production per ounce of platinum exceeds price per ounce.Above-ground stocks of platinum rapidly depleting.The platinum/gold ratio suggests platinum is cheap relative to gold and should correct in the near term.

In our current global economic environment, there has been sufficient distraction from the opportunity that platinum presents. With all the focus on Brexit, the woes of the EU, China's real estate bubble, gold, and the Fed's rate decisions (or indecisions), it is easy to understand how one could overlook the potential that platinum provides. In fact, according to theWorld Platinum Investment Council (WPIC), Platinum ETF holdings have been reduced over the last three quarters; paradoxically, these ETF outflows have been contrasted by sizable coin and bar purchases begging the question: who is right - physical or paper investors?

I believe there is persuasive evidence provided by fundamental and technical analysis that supports my assertion that platinum is set to rise in price in the area of 40% in the next four years. Leveraged miners should see gains far in excess of platinum's potential price move.

Overview of Platinum

Platinum is fifteen times rarer than gold and is costlier to produce. As a result, it has historically traded at a premium to gold. In the last 40 years, platinum has only been priced at adiscount to gold four times, each time lasting less than two years.

Global platinum mining supply is 70% sourced from South Africa, 13% from Russia, 8% from Zimbabwe, and the rest from various other countries. Platinum recycling also accounts for 23% of total global supply. Major sources of demand include 40% automotive (catalytic converters in exhaust systems), 35% jewelry, 20% industrial, and 5% for investment.

Platinum is, as of Oct. 18, trading at US$938.80/ounce, a $322.50 discount to gold which is trading at US$1,261.30/ounce. In other words, platinum is trading at a 26% discount to gold when it has historically traded at a 50% premium.

Demand

Demand for platinum has been stagnant for the last six years. A retreat in investment was made up by an advance in industrial use. The major source of demand for platinum is in the automotive industry as an anti-pollutant in catalytic converters. China is the largest fuel combustion vehicle market and shows little sign of stopping its growth in this industry. The China Association of Automobile Manufacturers reports this year's August sales, and production, to be up, year over year, 23% and 28.9%, respectively. Global car production growth is expected to slow, but 2016 is still anticipated to produce 89 million cars, up from 88 million in 2015.

Jewelry demand is up 3% in Q2 of 2016 from the prior quarter, indicating momentum. India, after a brief strike, has seen an astounding 25% year-over-year increase in Q2 2016 in platinum jewelry sales. A drop in the number of Chinese wedding registrations resulted in a 4% year-over-year decrease in platinum jewelry demand from this Q2.

Industrial demand has been making slow advances in recent years, increasing by 1% each quarter since Q3 2014. Industrial demand, in order from greatest to least, is sourced from chemical, medical, electrical, glass, petroleum, and others.

Platinum investment has seen three quarters of ETF outflows but these have recently tapered and are dwarfed by the increase in physical investment demand. In 2015, bars and coins increased by 525koz, while ETF holdings decreased by 240koz. Japanese coin and bar investors led demand in the first two quarters of 2016, recording an increase of 140koz and 110koz in Q1 and Q2, respectively. Interestingly, in the U.S., 10,000 American Eagle platinum-proof coins were made available this past June and sold out in under an hour. There seems to be a disconnect between investors who prefer physical platinum and those who prefer ETF holdings; the former being bullish and the latter bearish.

Given these figures, I believe platinum demand will grow slowly and modestly over the next few years as more motor vehicles are produced, jewelry-consuming Chinese and Indian middle classes grow, and significant investor interest returns, particularly from the ETF segment.

Demand (koz)

2013

2014

2015

2016* estimate

Automotive

3,165

3,300

3,405

3,390

Jewelry

2,945

3,000

2,880

2,885

Industrial

1,480

1,535

1,650

1,625

Investment

935

150

305

350

Total Demand

8,525

7,985

8,240

8,250

Source: World Platinum Investment Council

Supply

Global platinum supply has been fairly even for the last four years, with a dip in 2014 due to a five-month strike in South Africa. The strike, due to union wage demands, resulted in 1,200koz of lost production, equating to US$2.25 billion. Modest wage increases were agreed upon and are to be implemented over three years; normal operations and production have since resumed.

Total global platinum supply for 2016 is expected to be 3% less than in 2015. This is partly attributable to safety stoppages due to an increase in work fatalities in South Africa's major platinum region, Western Limb. In addition, the spot price of platinum is well below the cost of producing an ounce, which discourages producers to produce, reducing the supply (more on this later).

Platinum recycling provides 25% of the total global supply and seems to correlate with the price of platinum. Interestingly, the last two and a half years have seen jewelry recycling subdued to only 500koz, down from its average of 794koz for the prior four years. This could indicate that holders of platinum jewelry are of the belief that a price rise is due and are in wait. Steel is also seeing a price recovery, which lends incentive to scrap vehicles increasing platinum recycling in the short-term; however, the World Platinum Investment Council estimates platinum recycling to increase by a modest 2% in 2016.

I believe global supply will continue to decrease at a modest pace because the price of platinum per ounce is below the average cost of production per ounce: producers prefer to produce at a profit and slow down production and deleverage when their wares are in cyclical lows. Moreover, South Africa, supplying 70% of global mining supply, continues to harbor political, union, and economic risks posing a threat to future supply.

Supply (Koz)

2013

2014

2015

2016* estimate

Total Mining Supply (Total refined production net of producer inventories)

5,855

5,230

6,195

5,985

Recycling

1,980

2,035

1,710

1,745

Total Supply

7,835

7,265

7,905

7,730

Source: World Platinum Investment Council

The Deficit and Depletion of Above-Ground Stocks

As mentioned, platinum has been in a physical deficit for nine of the past twelve years, with 2016 expected to post another deficit. The last four years have seen deficits on average of 521koz, 6.8% of average total demand for the same period. Demand-supply imbalances affect pricing, which in turn corrects the imbalance: simple economics.

In platinum's case, large physical above-ground stocks have been delaying this self-correcting imbalance. Using 2016's expected deficit from the World Platinum Investment Council, the deficits have averaged 6.75% of total demand in 2013-16. This is a significant amount of demand not being met for numerous years. As a consequence, above-ground stocks are being depleted each year by the amount of that year's deficit. The depletion rate is starting to accelerate as deficits remain steady but stocks diminish, with full depletion in early 2020, by my calculations.

Once demand can no longer be met by these above-ground stocks, the price of platinum will be forced upward by the market. Due to the foresight of market participants, I believe this price increase will occur well before the above-ground stocks fully deplete as the market wakes up to the imbalance. This view is supported by the belief that platinum supply and demand is set to remain stagnant over the next year, maintaining the deficit. Have a look at the table below for an eye-opener.

Year

2013

2014

2015

2016

2017

2018

2019

2020

Total Demand

8525

7985

8240

8250*

8300*

8350*

8400*

8450*

Deficit

690

720

335

520*

566**

566**

566**

566**

Above-Ground Stocks

3450

2730

2395

1825*

1259*

693*

127

0

Depletion Rate

21%

12%

22%

30%*

45%

82%

100%

* Estimates using data from 2013-16

**The deficit of 566koz was derived from the average of 2013 through 2016

(All platinum figures in Koz.) Source: WPIC and personal calculations on estimates from 2017-20.

Costs of Production in Excess of Price

Another factor that will put upward pressure on the price of platinum is the current price of platinum being lower than its average cost to produce. Producers operate for a profit, as corporations are legally required to do. Therefore, if platinum is currently trading at US$938.80 and the cost to produce an ounce is around $1,209, producers are losing $270.20 each ounce they sell, a 22% loss.

This is unsustainable for any business and is forcing producers to deleverage and eventually reduce output. In fact, a brief glance at some top platinum producers' balance sheets shows severe deleveraging, retained earnings capitalization, and borrowing. Anglo American Platinum LTD, the largest producer, has seen its 2015 total assets fall below 2014's. Lonmin PLC has seen its 2014 total assets shrink from (in millions) 4,365 to 2,429 in 2015.

In any case, it is unsustainable and inadvisable to sell for less than what it costs to produce. Cheap debt, retained earnings capitalizing, and deleveraging can only keep the boat afloat for so long. Investors can expect a reduction in output, and thus, supply, leading to higher platinum prices, given a stable demand.

The Platinum/Gold Ratio

Historically, platinum has traded at a premium to gold due to it being rarer, having a larger industrial demand, and having a higher cost of production. There is a reason why it has been termed "rich man's gold."

Currently, the platinum/gold ratio is hovering around 0.76. Platinum hasn't traded at this deep of a discount since 1982. The lowest the ratio has been in recent history was 0.73 in 1985. Moreover, platinum has only traded at a discount to gold four times in the past thirty-five years, each time lasting less than two years.

Past performance can't tell us future performance, but trends do exist and can complement fundamental analysis. Platinum and gold's relationship does tell us that either gold is overpriced, platinum underpriced, or a new norm has begun. Gold could be overpriced, but it does serve as a hedge against equities and fiat currencies. Uncertainty isn't about to leave the markets, so I believe gold has found a strong resistance around $1,200/oz, but this is speculation. A new norm of platinum being priced below gold seems unlikely due to its rarity compared to gold, cost of production exceeding gold's, and historical trends. Therefore, it is likely that platinum is underpriced and a reversal of the discount-to-premium is likely in the near term.

The platinum/gold ratio hit its peak in January, 2001, at 2.34 and another sub-peak in May, 2008, at 2.31. I wouldn't expect to quite see these numbers, but even halfway of 1.17 would take platinum to $1,474/oz (gold at $1,260/oz x 1.17). This is a 53% increase from today's prices. According to PMTREND, the platinum/gold ratio has averaged 1.4 for the past 25 years. If gold remained at $1,260/oz, then platinum -- should it revert to its 25-year mean -- would be priced at $1,764/oz, an 83% increase from today's prices.

Words of Caution

I should make myself clear that I believe platinum has great potential in the short to medium term. In the long run, platinum does have some headwinds that should be considered.

Electric vehicles (EVs) don't need platinum and are gaining market share. Some believe EVs to rise to 35% of global car sales by 2040; however, in the next decade, the conventional car will still be a cheaper alternative to EVs and still dominate global sales.

Interestingly, Anglo American Platinum, Lonmin PLC, and Impala Platinum are investing in fuel cell tech, which, by combining oxygen and hydrogen over a platinum catalyst, generates electricity. Critics of this technology raise the issue of hydrogen refilling stations costing more than EV charging stations.

Platinum has a substitute for automotive applications: palladium. Palladium is currently trading at US$653.50/ounce. Therefore, it is a cheaper substitute but it has a higher sensitivity to poisons that renders it less effective than platinum in this regard. Moreover, palladium, also largely sourced from South Africa, has seen recent supply deficits that could see upward price action. Also, diesel vehicle catalysts can't use palladium and so provide a protective moat on platinum's automotive demand. Western Europe still has sales of diesel vehicles making 58% of the market.

In any case, I believe the use of platinum in the automotive industry won't subside in the medium term.

Conclusion

An analysis of platinum presents a strong case for a price increase in the near-term. The rapid depletion of above-ground reserves that are expected to run out in early 2020 will put upward pressure on platinum's price at a much earlier date. The average cost of production per ounce exceeding the price of platinum per ounce has been causing producers to deleverage and will force them to reduce supply; given a stable demand, this will put upward pressure on the price. Lastly. the platinum/gold ratio is near all-time lows at 0.76 and has never lasted below 1 for more than two years in the last forty years.

Investing in a platinum producer will magnify returns in a rising-price environment. I will be writing an article on prospective platinum producers in the coming weeks. If you found my article informative, I encourage you to follow me.

Commonwealth Computer Recycling Welcomes Jennifer Pratt to Team

Commonwealth Computer Recycling Welcomes Jennifer Pratt to Team

Pratt brings a wealth of experience in e-waste recycling, data destruction to growing company

Greensburg, PA - (ReleaseWire) - 11/28/2016 - Commonwealth Computer Recycling (CyberCrunch), a company offering a broad range of data destruction, e-waste disposal solutions, has added Jennifer Pratt to its sales team.

Pratt, who previously owned and operated her own document destruction business in the Washington, D.C. area, has years of experience in the recycling industry. In fact, she sold her company to a Fortune 500 firm just four years after its launch, reaching $2 million in annual sales.

At CyberCrunch, Pratt will be responsible for e-waste recycling and data destruction sales in the Metro Philadelphia and Baltimore/Washington, D.C. areas.

"We are very excited that Jennifer will be joining our growing company, as she brings a wide range of experience and expertise in this very niche industry," said Serdar Bankaci, President of CyberCrunch. "Jennifer knows what it takes to be successful in the electronics recycling and data destruction business, as she has demonstrated practical experience as a business owner. She will play a pivotal role with the company as we continue to grow and serve more customers throughout the Mid-Atlantic region."

Pratt has more than 20 years of experience in business development and sales management. This includes successfully networking, negotiating, marketing and building relationships with customers. In her career, she has sold to some of the largest businesses, organizations and government agencies in the world, including the White House, Federal Trade Commission (FTC) and Food and Drug Administration (FDA).

About CyberCrunch
CyberCrunch is an innovator when it comes to data destruction and e-waste disposal, finding previously untapped value in e-waste that allows it to provide customers with the best service possible. The company serves Fortune 1000 companies across the country, with solutions that include data destruction, IT asset disposal and e-waste compliance.

The company, which is R2 certified and a member of the National Association for Information Destruction (NAID), handles clients' hardware and sensitive data per the highest industry standards.

New waste recycling plant in Redditch earmarked for approval







PLANS to install a Material Reclamation Facility (MRF) processing up to 100,000 tonnes of waste annually at Weights Lane Farm in Redditch have been recommended for approval by Worcestershire County Council.

The proposal, by the owners of Redditch Skip Hire and Waste Transfer Station, would see six agricultural buildings, which are in the Green Belt, converted into a site covering some 7,809 square metres.

Currently the Waste Transfer Station handles approximately 25,000 tonnes of waste a year, and officers say the new proposals would fall within Government waste management guidelines.

The facility, just under two kilometres from the town centre, would accept construction and demolition waste, metals, wood chipping and timber, waste electrical and electronic equipment, tyres, plastics and plasterboard.

The unsorted / untreated waste would arrive by skip lorry, which would be weighed on a proposed weighbridge.

All sorting, washing, crushing and chipping would take place within the buildings while waste that could not be recycled would be taken to landfill and treated waste would be moved from the site via skip lorries for further processing and recycling at other waste management facilities or for use in manufacturing.

Any recycled materials would be sold on a pre-ordered basis and on-site sales would be prohibited.

In addition the proposal would lead to the creation of about 30 addition jobs.

The Campaign to Protect Rural England (CPRE) has objected citing development within the Green Belt.

Furthermore, the land lies within Bromsgrove district, and once that authority’s new Local Plan is adopted it would make it almost certain that housing would be constructed up to Weights Lane within the next 10 to 15 years and these would be affected by the HGVs travelling along Weights Lane and by the air and probable noise pollution caused by this proposal.

Network Rail has also objected due to fears of flooding the development might cause.

The plan is to be considered at the county’s Planning and Regulatory Committee at County Hall on Tuesday, December 6, 2016, at 10am.

29.11.16

Gold miners to hike investment in 2017 

Gold miners to hike investment in 2017 

Spending will increase in 2017 as companies begin to catch up after deferring spending, largely looking inward at existing operations and projects, says Moody's. (Image: gualtiero boffi | Shutterstock.com)

Encouraged by better gold prices, global producers are set to increase capital spending next year with the rate at which they develop new mines and how those projects are funded being the top priorities, Moody's Investors Service says.

In its latest report, Moody’s notes that in addition to stronger prices, gold miners have benefitted this year from lower operating costs after focusing on cost cutting during a three-year slump in gold prices. As the precious metal is priced in US dollars, a stronger dollar has benefited miners based outside of the US.The average spot gold price through end of October 2016 was $1,273 per ounce, 10% higher than the average price of $1,160 in 2015. As gold miners' profitability is strongly tied to the gold price, this has resulted in the industry generating significantly stronger cash flows and earnings, boosting their credit quality, Moody’s says.

While the industry is generating significantly stronger cash flow, a trend that Moody's expects to continue next year, higher gold prices alone will not result in ratings upgrades.


Source: Moody's Investors Service

"How companies use their funds will be a very important factor in the ratings assessment," said Jamie Koutsoukis a Vice President and Senior Analyst at Moody's. "Although near-term spending on large projects could result in negative cash flow, future production growth would likely have a positive effect on the rating."

Spending will likely focus on extending existing operations and phased development, rather than large-scale greenfield projects.

26.11.16

Recycling technology claims another prize: INL wins Idaho Innovation Award

IDAHO FALLS, Idaho - Electronic waste is closer than ever to having a sustainable, safe and environmentally friendly method of recycling due to award-winning technology developed at Idaho National Laboratory.

The Idaho Innovation Awards honored inventors Tedd Lister and Luis Diaz Aldana recently at a reception in Boise. It was the third major award received this year by Electrochemical Recycling Electronic Constituents of Value (E-RECOV), which uses an electrochemical cell to efficiently reclaim valuable metals and rare-earth elements from discarded electronic equipment. The technique leads to more thorough recycling of materials while significantly minimizing chemical use and waste generation, and can be accomplished domestically and economically.

The annual Idaho Innovation Awards recognize innovations, innovative professionals and companies throughout the state. Stoel Rives LLP, a full-service U.S. business law firm, has organized and hosted the program since 2006.

The technology was developed with funding from DOE's Critical Materials Institute. Other awards won by E-RECOV include Federal Laboratory Consortium Far West Regional and TechConnect National Innovation Award. This patent-pending technology is also the focus of a collaborative Small Business Voucher project with Ohio-based eMaterials Recovery, LLC. The E-RECOV process is currently available for licensing. Interested parties can contact Ryan Bills for further information. You can learn more about E-RECOV in this video from the Idaho Innovation Awards or in this INL fact sheet.

INL is one of the U.S. Department of Energy's national laboratories. The laboratory performs work in each of DOE's strategic goal areas: energy, national security, science and environment. INL is the nation's leading center for nuclear energy research and development. Day-to-day management and operation of the laboratory is the responsibility of Battelle Energy Alliance.

India Recycles Toxic Electronic Waste Dumped By Richer Countries

SEEMAPURI — In this neighborhood on the outskirts of Delhi, electronic scrap keeps growing. Piles and piles of electronic waste or "e-waste" litter the narrow alleys here from old computer circuit boards and cables to discarded keyboards and phone handsets.

Mohammad Salman, 25, deals with such e-waste. “We collect it from all over the country, from waste pickers and other scrap dealers and then look for items that can be fixed,” he says.

Salman says he sells the precious metals that can be found in e-waste. "We give it to bigger dealers and what they do with it is their business,” says Salman.

Not far from Salman’s shop, some laborers unload a truck full of computer monitors and break them into pieces with hammers. This area is a place where e-waste is illegally recycled.

Further down the same lane, 35-year-old Ansar burns a large circuit board with a blowtorch. He then pulls out some of its components with a pair of pliers. The acrid smell of smoke is suffocating. But Ansar looks unperturbed.

"Everyone has to do something for a living and this is our work. We take out those parts that can still be used and sell them to people who repair computers. Then we take out metals like copper and brass and finally we dip these boards into acid to get the gold that is there," says Ansar.

India generates the fifth-largest amount of e-waste in the world.

Rapid economic growth has led to a surge in the demand and production of electronic devices such as computers, mobile phones and televisions. But once these electronics fall apart after a few years, they end up in places like Seemapuri.

Often, the e-waste is handled unsafely.

Most of the waste is toxic as it contains chemicals like lead, mercury, and cadmium, which are all harmful to health and environment.

"When you deal with this in a manner which is rudimentary using a hammer, blow torch or acid you are releasing a large amount of toxins into the environment," said Satish Sinha, the associate director of Toxics Link, a New Delhi-based environmental group.

According to a 2014 United Nations report, India generates more than 2 million metric tons of e-waste every year. That includes a huge amount of waste from abroad.

Until a few years ago, India, along with several African countries, was known as a global e-waste dumping ground. The government has since imposed a ban on the import of toxic material.

Despite the ban, e-waste still sneaks in, said Sinha.

"In developed economies, the cost of treating waste is extremely high. Also the environmental controls are very strict and robust. So you need to invest in technology, you need to be sure of what you are omitting and that’s why the cost of treating waste goes up in these countries,” Sinha explained.

When it comes to developing economies, the costs are almost negligible. So it becomes much easier for developed countries to send their waste to developing nations.

Earlier this year, the Indian government introduced new rules regarding the disposal of electronic waste, which pins more responsibility on manufacturers.

"Companies are now required to put in place a system through which they take back their products for recycling once they are discarded and this is the first time that we have set targets for them which they have to comply with," said environment minister Prakash Javadekar.

"They have to make these arrangements before they launch their product in the market," he said.

Still, environmentalists like Sinha are skeptical about the new rules.

"In the previous law also this provision was there. But the manufacturers are actually very reluctant to play their role," said Sinha.

Digital India must give e-waste management serious thought

A new study from IIM Bangalore and research firm Counterpoint Research suggest that India might consume $80 billion worth of mobile phone components over the next five years. India has the second largest smartphone market in the world, in terms of users. In just about five years, the country will have over 50 crore smartphone users. Further, the number of locally made mobile phones went up from 14 per cent in 2014 to 67 per cent in 2016. This could hit 95 per cent by 2020.
All that's good news. But the bad news is this surge in the production of smartphones, which die and get replaced faster than, say, personal computers or other perishable electronic goods, poses huge challenges to the country's e-waste recycling agencies. Estimates of electronic waste being produced in India every year range between eight to 17 lakh tonnes. This is increasing 5-8 per cent every year. India is also a dump yard of e-waste from developed markets.
A report says India has barely 150-200 facilities to recycle e-waste, which can address only 40-50 of the e-waste generated every year. The E-waste (Management and Handling) Rules 2011 and the new E-waste (Management) Rules 2016 feature creative regulations to tackle e-waste, but the surging pile of unattended e-waste shows the reality is very grim and companies are putting the gaps in rules to hoodwink the system.
There are three ways to tackle this problem. The first is to hold producers responsible for recycling their goods.
Second, consumers should be encouraged via monetary benefits to recycle their gadgets. The Government can help build links between gadget makers, retailers (especially online sellers with efficient last mile connectivity), consumers and repair centres to ensure proper collection and management of gadgets. The third and the most important measure is to embed e-waste management into the DNA of the Digital India mission. If India wants to build a digital infrastructure linking its billion-plus populace, it must make sure the process does not choke its environment.

Recovering riches from electronic waste

Recovering riches from electronic waste

Setting up microfactories to recycle e-waste

20 Nov 2016

Several studies revealed old cellphones, tablets, computers and other electronic waste could be converted into "gold mines".Veena Sahajwalla, Director of the Centre for Sustainable Materials Research & Technology at the University of New South Wales, explained how we could make use of e-waste.Her solution involves microfactory: a recycling and reclamation system, small and efficient enough to be set up across the globe.

Veena Sahajwalla's statement

Fact

"If everyone has to do it (converting e-waste into valuable materials), we can't think about large smelters - we need to see this as decentralized and distributed manufacturing, where the resource and inputs are things that we all hold in our hands."

Amounts of valuable materials found in each phone are small

E-waste

Microfactories enable local recycling of electronic waste and could be apt into manufacturing systems using reclaimed resources.E-waste consists of metals like iron, silver, gold, copper, platinum, palladium, rare earth elements, glass, and plastic.Amounts found in each phone are small - 0.034 gm of gold - but they quickly add up considering that over 42 million tonnes of e-waste was generated in 2014.

Pre-programmed automated drones would pick circuit boards from e-waste

Microfactories

Reportedly, most of the e-waste is shipped around the world for processing in places like Guiyi in Southeastern China - one of the most polluted places in the world.According to Sahajwalla's vision of the microfactories, pre-programmed automated drones would pick out circuit boards or other such items from e-waste.The boards are then put into a small furnace to extract valuable materials.

 the new scientific paradigm

Fact

Veena Sahajwalla said, "Microrecycling is the new scientific paradigm. Conventional recycling works for the macro-scale but we need to look at the micro-scale, for example where you have mixtures of copper and nickel and zinc together."

Microfactories create jobs and local resources

Valuable resources

Sahajwalla said microfactories create jobs and local resources; they create entirely new small-scale industries by using the resource outputs.They also give existing small businesses the chance to carve new niches.She said small-to-medium enterprises, hungry for innovative solutions, have given good feedback.Embedded resources from e-waste are expected to be worth $52 billion; extracting them from the earth is harder compared to e-waste.

Microfactories make extracting rare earth elements from e-waste easy

Easy Approach

Microfactories make extracting rare earth elements from e-waste easy compared to previous approaches.In e-waste materials like hard-drives, rare earth elements are combined with iron, which aren't easily recyclable.Sahajwalla wants to make the energy inputs into the microfactories as sustainable as possible.Avoiding the energy-intensive transportation of waste in the world, she sees the microfactories as the embodiment of decentralized and distributed marketing.

Can New Jersey get makers of TVs, computers, and other electronic gear to pay their fair share of recycling costs?

Can New Jersey get makers of TVs, computers, and other electronic gear to pay their fair share of recycling costs?

With electronic waste piling up around the state, lawmakers gave final approval yesterday to a bill that would overhaul a recycling program designed to safely dispose of old TVs, computers, and other equipment.

By a 60-12 vote, the legislation (S-981) advanced to the governor's desk, where it faces an uncertain future. A similar bill was pocket vetoed by Gov. Chris Christie earlier this year at the end of the lame-duck legislative session.

By many accounts, the state's e-waste recycling program is broken. Under a law passed in 2010, manufacturers of electronic equipment were supposed to cover the cost of recycling the waste, a system that has fallen apart in recent years.

When the market for e-waste declined, manufacturers began cutting back on what they were paying recycling vendors, or, in some cases, stopped participating in the program by saying they had met their obligations under the current law.

That left counties and towns, which collect the material, with nowhere to recycle the waste, while absorbing the cost of the program, according to recycling officials.

"The bill will keep e-waste recycling alive and save taxpayers from assuming the cost that rightfully belongs to computer and television manufacturers,'' said Frank Brill, a lobbyist representing the Association of New Jersey Recyclers, an industry trade group.

The legislation would allow the state Department of Environmental Protection to establish a statewide standard to collect, transport, and recycle e-waste. Each manufacturer of the electronic equipment would be responsible for the recycling of its market share in weight of covered material.

"Boosting recycling, especially of the new and dangerous materials in 'e-waste' is the key to minimizing damage to our environment,'' said Assemblyman John McKeon (D-Essex), a sponsor of the bill. "Recycled materials consume less energy than using virgin material to make new products, which means less greenhouse gases are emitted because less energy is consumed.''

Assemblyman Reed Gusciora (D-Mercer) called the bill a "win-win" for the state. "It's a commonsense move that will be good for both the economy and the environment,'' he said.

The state has required the recycling of e-waste, one of the fastest-growing parts of the waste stream, since 2008. The idea is to keep potentially toxic materials out of landfills and incinerators where the pollutants could foul the water or air.

Old color TVs and computers used cathode-ray tubes in their video display units, which contain lead, a highly toxic compound. With the advent of flat-screen technology, there is not as much demand to recycle the tubes, depressing the market and lowering the price.

"We support getting waste out of landfills, and this is a step in the right direction,'' said Jeff Tittel, director of the New Jersey Sierra Club. "These product are sitting in stacks in recycling centers and county garages.''

Power To Save: Recycling Computers

LEWISBURG - There is a place in central Pennsylvania that recycles your old computers, and gives them to people who need them.

Brian McAndrew of Watsontown dropped off his old laptop at MePush, a place that services computers in Lewisburg.

"It could be helpful to somebody else," McAndrew said.

MePush not only services computers; the company on Buffalo Road takes pride in fixing people's unwanted computers and giving them to people who need them.

At last year's computer giveaway, close to 100 computers were fixed up and given away.

"Usually around Christmas time," said Ty Hoban. "What we do is all year round we usually accept used computers from people."

After the computers are dropped off, they're wiped clean and reconditioned at MePush.

Employees say they are looking for newer operating systems.

"Any kind of either laptop or tower computer with Windows 7 or newer, just because Windows XP we really can't give away something that's not supported anymore," Hoban said.

As for monitors, MePush prefers flat screens. They also accept printers. McAndrew says it felt good to recycle his old laptop.

"The computer I turned in was dying so I thought they could harvest the parts and do something good out of it."

So if you're out shopping for a new computer this holiday season, remember, there is a place in central Pennsylvania to recycle your old computer.

24.11.16

Mining for data in a South African platinum mine



Platinum bars are seen in Munich March 6, 2014. REUTERS/Michael DalderThis contributor post originally appeared on GE Reports:

As operations manager at a South African platinum mine, Percy French has faced huge challenges over the past few years because of volatility in commodity prices. The price of platinum has dropped in half, and at the same time the value of the South African currency, the rand, has fallen precipitously. To keep his mine profitable, French had to look for new ways to make it more efficient. He found sensors and software. “We cannot afford any loss of revenues from inefficiencies because our cost to refine one ounce of platinum remains the same even though we get paid half of what we used to,” French says.

French’s company, Lonmin Plc, about an hour’s drive from Pretoria, is the world’s third-largest platinum producer. The process of refining platinum works like this. Once the ore has been crushed and turned into dust, furnaces heat the concentrated powder to over 1,500 Celsius and blow air through it to remove iron and sulfur impurities. This helps to shrink its mass before the refining process. A mix of chemicals and heat are repeatedly applied to the ore until eventually you get pure platinum, which is used in everything from automotive catalytic converters to jewelry and computer hard disks. It can take up to six months and 7 to 12 tons of ore, put through several complex physical and chemical processes, to create one troy ounce (31.1 grams) of platinum, now valued at about $930.

LonminLonmin’s operations were suffering from bottlenecks, French says. Downtime in the drying area of the smelter sometimes caused the whole production line to come to a standstill, resulting in the platinum being ruined. “If we lose one hour of availability, that costs us roughly 1.72 million rand per stoppage,” French says.

Operators also struggled to calculate just how much crushed ore to mix with chemicals and water to produce the right amount of concentrate powder so it could be dried at a steady pace in the furnace.

French found the tools he needed to keep the plant running smarter in GE’s Digital Mine solution, which uses data gathered from sensors on equipment to make operations run more smoothly. Digital Mine helped make those calculations and kept powder flowing to the furnace at a steady rate, meaning the entire plant used less power ramping up and cooling down the furnaces.

The improvements made as a result of Digital Mine led to less wasted production time, French says, and helped Lonmin produce 1.5 percent more platinum from the mine. “GE products have brought stability to our operations, boosting the recovery of ore and significantly contributing to our bottom line,” French says. “A minor improvement in recovery causes a major improvement in profits, which can lead to significant cost savings for the plant.”

For example, French says that at a price of 10,800 rand ($804) per basket of platinum, the improvements made with Digital Mine boosted profits by 800 rand ($60) — a gain of more than 7 percent. French says Digital Mine has also helped cut sulfur dioxide emissions from the mine by optimizing the gas cleaning plant.

French has been using Digital Mine since 2007 and says it has become “very difficult to exist without it.” He says that over the past decade the software has been added to more and more operations, helping him to “highlight more and more potential areas for improvement.” As a result, he plans to upgrade his technology to leverage Predix, GE’s new cloud-based platform for the Industrial Internet, and Asset Performance Management software to add predictive-monitoring capabilities so that he knows in advance when equipment is going to require maintenance.

When applied to some of the smelter’s critical equipment, including fans and blowers, Lonmin can avoid costly, unplanned downtime, French says.

GE Digital Mine Global Strategic Marketing Leader Kevin Shikoluk says the mining industry could particularly benefit from following Lonmin’s example by adding digital capabilities, particularly real-time, data-driven insights. He says the world’s top 40 mining firms alone had 2014 operating expenses of $531 billion and that if they captured a 1 percent efficiency improvement they would yield $5.1 billion annually.

Palladium’s current rally resembles the uninterrupted June-August vertical price move

Short Term:
Medium Term:
Long Term:
Resistances:
R1724 Oct ’15 high
R2735.97 61.8% Fibo 2014 high to 2016 low
R3749.50 Current high
R4780 June 2015 high
Support:
S1635.50 May high
S2707 50 DMA
S3633.50 20 DMA
S4533 April low
S5523.50 May low
S6480 February low
S7452 January low
Stochastics:
Legend:

UTL = Uptrend line

Fibo = Fibonacci retracement level

RSI = Relative strength index

D/MMA = Daily/monthly moving average

(H)SL = Horizontal support line

H&S = Head-and-shoulder formation

Technical Comment

Analysis

  • Palladium’s current rally resembles the uninterrupted June-August vertical price move (see daily chart).
  • Without any sign of a reversal, buyers are very much in control.
  • Also, judging by the daily candlesticks, dips are being bought – the metal should remain well supported in the short term.
  • The daily RSI has entered overbought territory but this does not mean that prices are ready to tread lower yet although there is a risk of a short-term pullback.
  • As long as palladium can keep its positive momentum, the stochastics are likely to stay bullish.

Macro drivers

On the speculative front, palladium’s net long fund position (NLFP) climbed for the second consecutive week to 9,130 contracts via fresh buying of 1,015 contracts and short-covering of 1,830 contracts. The gross short position is at its lowest this year at only 4,807 contracts as of November 15 – it looks a little overstretched on the downside. Without any clear indication that money managers are rebuilding their net short positions, palladium may be able to keep its bullish momentum going for now.

Higher palladium prices have encouraged further disinvestment among ETF investors. The recent strength in the dollar may have also played a key part in boosting palladium prices in other currencies. Weakness in the Canadian dollar sent palladium prices to 997.40 per oz – a fresh 2016 high. Palladium also registered an all-time-high at 10,520.50 in rand terms. According to our records, the largest drawdowns were unsurprisingly from NewPall ETF and AfricanPD, which tracks palladium in the rand.

According to Johnson Matthey, the palladium market faces a record deficit of 651,000 oz this year. Autocatalyst demand is likely to dominate and set a new record at 7.84 million oz while production of palladium will be flat. Given such a positive fundamental backdrop, palladium prices should remain well supported – growing demand will set the tone for higher prices, we feel.

Conclusion

Robust price action has set palladium apart from the other metals that are prone to a strong dollar. For now, it only seems to is going in one direction.

Based on the bullish technical set-up and positive fundamental conditions, we continue to believe that palladium prices are undergoing a 5-wave rally that is likely to end with a fresh 2016 high.

Meanwhile, we are cautiously bullish about this three-week rally and will wait for a reversal candle to reassess our stance.

- See more at: https://www.bulliondesk.com/palladium-analysis-and-research/palladium-today-brand-new-price-high-bulls-still-control-110710/#sthash.RFxHEPLw.dpuf