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Green Rubber Pty Ltd Green Rubber Pty Ltd Green Rubber Pty Ltd Green Rubber Pty Ltd Project Managers and Consultants To the Mining & Waste Industries ACN 129 366 383 Africa Zanella, Director – Mob: 0424 202 949 Email: [email protected] Phillip Isaacs OAM, Director – Mob: 0408 283 902 Email: [email protected] Dr Simon Michaux, Consultant – Mob: 0419 716 165 Email: [email protected] Address: 1167 Barrenjoey Rd Palm Beach NSW 2108 The Green Rubber Opportunity “A sustainable solution for dealing with waste tyres at mine sites” Prepared by Green Rubber Pty Ltd for Australia’s Mining Companies 10 October 2014 COMMERCIAL-IN-CONFIDENCE

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Green Rubber Pty LtdGreen Rubber Pty LtdGreen Rubber Pty LtdGreen Rubber Pty Ltd Project Managers and Consultants To the Mining & Waste Industries

ACN 129 366 383

Africa Zanella, Director – Mob: 0424 202 949 Email: [email protected] Phillip Isaacs OAM, Director – Mob: 0408 283 902 Email: [email protected] Dr Simon Michaux, Consultant – Mob: 0419 716 165 Email: [email protected]

Address: 1167 Barrenjoey RdPalm Beach NSW 2108

The Green Rubber Opportunity

“A sustainable solution for dealing with waste tyres at mine sites”

Prepared by Green Rubber Pty Ltd for Australia’s Mining Companies

10 October 2014

COMMERCIAL-IN-CONFIDENCE

Green Rubber Pty LtdGreen Rubber Pty LtdGreen Rubber Pty LtdGreen Rubber Pty Ltd Project Managers and Consultants To the Mining & Waste Industries

ACN 129 366 383

Africa Zanella, Director – Mob: 0424 202 949 Email: [email protected] Phillip Isaacs OAM, Director – Mob: 0408 283 902 Email: [email protected] Dr Simon Michaux, Consultant – Mob: 0419 716 165 Email: [email protected]

Address: 1167 Barrenjoey RdPalm Beach NSW 2108

The Green Rubber Opportunity A sustainable solution for dealing with waste tyres at mine sites

Green Rubber The Green Rubber brand is so classified as a name given to recycled rubber that would be extracted exclusively from the Waste OTR tyres to be found buried or stockpiled in the mine sites across Australia. Green Rubber Pty Ltd has developed the “virtuous cycle” of Waste to Valuable Resource (see diagram on Page 4) using a holistic approach that takes into account collection, recycling and giving back to the mining sector products that would substitute for existing products made out of timber and other natural scarce and expensive materials. Over time the carbon reduction of the Green Rubber Project along with cheaper and longer life products makes this project a unique example for greener industries and better management of waste that can be utilized using the right technologies available to Green Rubber Pty Ltd globally. Green Rubber Pty Ltd is currently a registered Member of Tyre Stewardship Australia Pty Ltd and was earlier a party to the Federal Government’s Tyre Industry Working Group activities seeking a national solution to waste tyre problems and to regulate recycling and bans across Australia of burial of waste tyres.

An example of a “Crumb Rubber Hot Mix Asphalt” road after 11 years of service

Green Rubber Pty LtdGreen Rubber Pty LtdGreen Rubber Pty LtdGreen Rubber Pty Ltd Project Managers and Consultants To the Mining & Waste Industries

ACN 129 366 383

Africa Zanella, Director – Mob: 0424 202 949 Email: [email protected] Phillip Isaacs OAM, Director – Mob: 0408 283 902 Email: [email protected] Dr Simon Michaux, Consultant – Mob: 0419 716 165 Email: [email protected]

Address: 1167 Barrenjoey RdPalm Beach NSW 2108

Review of the current disposal of waste tyres in mining sites in Australia

• Waste tyres are currently buried and stockpiled across most sites of Australian

mining operations in Australia and abroad.

• This practice represents an environmental and reputation risk as well as an

operational and direct cost that brings no benefits whatsoever under the

licence to operate and sustainability reporting.

• Proposals for safe disposal are underway with the establishment of Tyre

Stewardship Australia (TSA) and agreements with tyre manufacturers to

recycle waste and collect levies from buyers, including mining tyres.

• The formation of TSA and the participation in it by the Minerals Council of

Australia is a real opportunity for individual mining companies to show

leadership and to reap the benefits of research funding as well as reduction in

operational costs and increase in the sustainability reporting of the waste.

• Green Rubber Pty Ltd (GRPL) has been working closely on the recycling of

end of life OTR tyres for over seven years to see a cost effective and

sustainable solution for the disposal and recycling of the OTR tyres used in

mining operations.

• There are cost effective solutions for the waste tyres to be collected, recycled

and turned into new green products of benefit to the mining companies.

• The “virtuous cycle” of waste to resource, shown overleaf, is a reality and

could be implemented for the mining sites across the operations of each

mining company, depending on the number of tyres in existence being

discarded and buried or stockpiled on each site.

• GRPL is proposing that a scoped logistics and feasibility study for a global

solution to waste tyre problems at mine sites be undertaken which will see a

cultural change in the current burial practices and a sustainable solution to this

waste.

Green Rubber Pty LtdGreen Rubber Pty LtdGreen Rubber Pty LtdGreen Rubber Pty Ltd Project Managers and Consultants To the Mining & Waste Industries

ACN 129 366 383

Africa Zanella, Director – Mob: 0424 202 949 Email: [email protected] Phillip Isaacs OAM, Director – Mob: 0408 283 902 Email: [email protected] Dr Simon Michaux, Consultant – Mob: 0419 716 165 Email: [email protected]

Address: 1167 Barrenjoey RdPalm Beach NSW 2108

THE GREEN RUBBER PROJECT – A VIRTUOUS CYCLE OF WASTE TO VALUABLE RESOURCE AND A SUSTAINBLE SOLUTION

OPERATING ENTITY

OTR WASTE TYRE LOGISTICS GROUP

ASSOCIATED

MINING COMPANY

WASTE TYRE RECOVERY & PRE-CUTTING AT MINE

SITES

TRANSPORT FROM MINES TO

RECYCLING PLANTS

RECYCLING PLANTS

WA, QLD, NSW

MANUFACTURING PLANTS HIGH NET RESOURCE VALUE DOWNSTREAM PRODUCTS FOR THE

MINING INDUSTRY

Reporting on Outcomes under Global Reporting

Initiative G4 Guidelines

POSSIBLE MINING COMPANIES BACKLOADS

INITIATORS & CONSULTANTS GREEN RUBBER

PTY LTD

RECYCLED PLASTICS AND

FILLERS SUPPLY

CRUMB RUBBER AND/OR POWDER

WASTE TYRE SUPPLY

Green Rubber Pty LtdGreen Rubber Pty LtdGreen Rubber Pty LtdGreen Rubber Pty Ltd Project Managers and Consultants To the Mining & Waste Industries

ACN 129 366 383

Africa Zanella, Director – Mob: 0424 202 949 Email: [email protected] Phillip Isaacs OAM, Director – Mob: 0408 283 902 Email: [email protected] Dr Simon Michaux, Consultant – Mob: 0419 716 165 Email: [email protected]

Address: 1167 Barrenjoey RdPalm Beach NSW 2108

Some aspects to be considered to move forward with a solution 1. Eliminating a current mining industry cost associated with

environmental compliance transformed into an opportunity.

OTR tyres at the end of their useful life: • Represent around 65,000 tonnes of waste annually across Australia.

• Handled like most waste at the end of its useful life, a cost of disposal is

involved and the current tyres given their size and difficulty in handling as

well as transport distances are presently costing mining companies

considerable annual expense in collection, burial and “environmental

protection compliance”.

• Furthermore, waste tyres in all states in Australia have come under a

great deal of attention and discussion over several years by all

environmental authorities.

• By their very nature, tyres are difficult to dispose of. They float and they

are highly flammable. See photograph of a waste tyre fire overleaf.

Green Rubber Pty LtdGreen Rubber Pty LtdGreen Rubber Pty LtdGreen Rubber Pty Ltd Project Managers and Consultants To the Mining & Waste Industries

ACN 129 366 383

Africa Zanella, Director – Mob: 0424 202 949 Email: [email protected] Phillip Isaacs OAM, Director – Mob: 0408 283 902 Email: [email protected] Dr Simon Michaux, Consultant – Mob: 0419 716 165 Email: [email protected]

Address: 1167 Barrenjoey RdPalm Beach NSW 2108

A Waste Tyre Fire

• In the Northern hemisphere approx 18% are burnt as a "replacement

fuel" in the manufacture of cement. This is fast becoming the most

popular way of disposing of them but is difficult to justify on cost.

• Tyre burning emits ultra-fine particles that have a toxicity all of their own.

The toxicity is even stronger if this contains metals such as nickel and tin,

which you get when you throw the whole tyre into the furnace. If the

metal content of the particles goes up, then there is going to be an

increasing impact on human health.

• Tyres outside mining sites are banned from burial in State owned

landfills.

• Recycling methods such as pyrolysis and turning waste tyres into tyre

derived fuel have proved to be too costly and have failed to provide

workable solutions.

Green Rubber Pty LtdGreen Rubber Pty LtdGreen Rubber Pty LtdGreen Rubber Pty Ltd Project Managers and Consultants To the Mining & Waste Industries

ACN 129 366 383

Africa Zanella, Director – Mob: 0424 202 949 Email: [email protected] Phillip Isaacs OAM, Director – Mob: 0408 283 902 Email: [email protected] Dr Simon Michaux, Consultant – Mob: 0419 716 165 Email: [email protected]

Address: 1167 Barrenjoey RdPalm Beach NSW 2108

A change in tyre waste legislation and compliance is inevitable globally Unsustainable practices for the disposal of tyres are forcing review and restructure of regulations for compliance at all levels where the waste is produced.

Green Rubber Pty LtdGreen Rubber Pty LtdGreen Rubber Pty LtdGreen Rubber Pty Ltd Project Managers and Consultants To the Mining & Waste Industries

ACN 129 366 383

Africa Zanella, Director – Mob: 0424 202 949 Email: [email protected] Phillip Isaacs OAM, Director – Mob: 0408 283 902 Email: [email protected] Dr Simon Michaux, Consultant – Mob: 0419 716 165 Email: [email protected]

Address: 1167 Barrenjoey RdPalm Beach NSW 2108

2. Virtuous cycle of waste to valuable resource - A waste OTR tyre is too

valuable as a resource to be kept out of sight, burnt or buried.

• By their very nature wastes are end of life products, to be discarded as having

no further economic value. However this is not the case with tyres as they

contain useful, valuable and recyclable materials such as rubber and steel.

• GRPL has produced an Australia-wide Green Rubber Project, providing

proven solutions to the logistics, environmental and financial feasibility of fully

integrated facilities for recovery, downsizing, transport and recycling of mining

industry “off the road” (OTR) tyres.

• This proposal is for mining companies to take the lead by adapting the existing

research into a solution for their sites and provide an opportunity to turn an

end-of-life product into a valuable and beneficial resource.

Examples of Global State of the Art Mobile Equipment These units are mobile and can be easily moved around a mine site

OTR Tyre Debeader for up to 55/80/R63 tyres Bagel Cutter for halving 55/80/R63 tyres

Rotary Shears Super Chopper

Green Rubber Pty LtdGreen Rubber Pty LtdGreen Rubber Pty LtdGreen Rubber Pty Ltd Project Managers and Consultants To the Mining & Waste Industries

ACN 129 366 383

Africa Zanella, Director – Mob: 0424 202 949 Email: [email protected] Phillip Isaacs OAM, Director – Mob: 0408 283 902 Email: [email protected] Dr Simon Michaux, Consultant – Mob: 0419 716 165 Email: [email protected]

Address: 1167 Barrenjoey RdPalm Beach NSW 2108

Using recycled rubber to manufacture new products

A feasibility study is required to review earlier work by GRPL to determine the viability of collecting the end of life tyres available on mine sites and converting them into recycled new products with some returning to the mining industry.

Replacing old timber railway sleepers with a recycled rubber product

Moulded and/or extruded products

Waterproof sheets

Posts for Underground Mine Supports being Tested

Misc Extruded Products

Green Rubber Pty LtdGreen Rubber Pty LtdGreen Rubber Pty LtdGreen Rubber Pty Ltd Project Managers and Consultants To the Mining & Waste Industries

ACN 129 366 383

Africa Zanella, Director – Mob: 0424 202 949 Email: [email protected] Phillip Isaacs OAM, Director – Mob: 0408 283 902 Email: [email protected] Dr Simon Michaux, Consultant – Mob: 0419 716 165 Email: [email protected]

Address: 1167 Barrenjoey RdPalm Beach NSW 2108

3. The Green Rubber Opportunity to deal with OTR tyre waste sustainably ie:

economic benefits, environmentally safe and best practices for a socially

desirable disposal and leadership engagement with a Green industry

The Green Rubber Project will bring financial benefits to the mining companies not just in substitution of the raw material but also in the safety and longer life-cycle performance of the Green Rubber products and the virtuous cycle of reducing and working towards a zero waste in this area for the mining companies and the producers of OTR tyres across the world. • Establishing a new practice of well organized collection and downsizing of the

tyres on mine sites and in stages also collecting tyres from existing stockpiles

will deliver direct cost and organizational benefits. The new practice will

comply with mine site occupational health and safety requirements and

individual mine site access requirements, all prior to commencement and

thereafter.

• The carbon footprint of the Green Rubber Project is less than 1% of the initial

embodied energy of the new tyres, which is a compelling case for the need to

ensure that the mining companies work closely with the tyre producers, the

recycling industry and Green Rubber Pty Ltd to arrive at an environmentally

and socially acceptable solution for the disposal of the waste and its

conversion into Green Rubber.

• The opportunity for mining companies to participate in the usage of

downstream products on mine sites can be utilized in Reporting under the

Global Reporting Initiative G4 Guidelines with clear environmental and

community benefits declared to improve the image of the mining companies.

• Tyre Stewardship Australia has implemented a new Levy to be charged on all

tyres around Australia to pay for research and ongoing costs of

implementation.

• The formation of Tyre Stewardship Australia and the participation in it by the

Minerals Council of Australia is a real opportunity for individual mining

companies to show leadership and to reap the benefits of research funding as

well as reduction in operational costs and increase in sustainability of

operations.

• The Green Rubber Project provides training and employment opportunities in

the “green industries” adding value to the corporate and social responsibility

agenda for the mining companies and the mining industry in general.

Green Rubber Pty LtdGreen Rubber Pty LtdGreen Rubber Pty LtdGreen Rubber Pty Ltd Project Managers and Consultants To the Mining & Waste Industries

ACN 129 366 383

Africa Zanella, Director – Mob: 0424 202 949 Email: [email protected] Phillip Isaacs OAM, Director – Mob: 0408 283 902 Email: [email protected] Dr Simon Michaux, Consultant – Mob: 0419 716 165 Email: [email protected]

Address: 1167 Barrenjoey RdPalm Beach NSW 2108

Proposed Steps going forward: Step 1 Determination of the current and projected situation regarding waste OTR

tyres including annual throughput, tyre types, site locations, stockpile data and accessibility, OH&S and environmental conditions that apply at the mine sites and indicative costs of collection, burial and maintenance applying at these mine sites.

Step 2 Review and adapt the completed Green Rubber Project Stage 1 Report to

determine applicability of data and strategies to current situation determined in Step 1. Note that the Stage 1 Report covers extensive research and study of an industry-wide approach to end of life tyre strategies, including equipment for downsizing and recycling as well as new technologies for the development of new recycled green products under negotiations with our partners, the University of NSW School of Mining Engineering and the Bureau of Mines Pittsburgh Research Centre.

Step 3 Determination of the most appropriate scale of a first Project and its mine

site location(s). This would involve consideration of the extent of new equipment and facilities and the suitability of existing recycling and downstream products manufacturing facilities to speed up the Project.

Step 4 Preparation of a detailed design and feasibility study for the agreed site(s)

of the Project and agreement on costs and also starting dates.

The GRPL Management Team Africa Zanella M.Comm GAICD - Director GRPL and waste and sustainability expert Phillip Isaacs OAM BE FIEAust FRSA AOM(USA) - Director GRPL and engineering and environmental expert Dr Simon Michaux B.AppSc. PhD, Principal consultant, scientist and mining engineering expert Best wishes Africa Zanella