John Hunt, MD of Mpact Recycling, part of the Mpact Group
This is the view of Mpact Recycling managing director John Hunt who says this means investing in recycling facilities such as paper and plastic mills that create a market for recyclable materials. According to Hunt 1.4 million tonnes of recyclable paper and paper packaging was diverted from landfill last year and while South Africa’s annual paper recovery rate of 68.4% positions the country well ahead of the global recovery rate of 58%, the momentum of the industry can only be maintained if the demand for recyclables continues to grow. “To sustain the market, there needs to be someone who’s going to buy the material – here in South Africa. Some argue that there is a global market for many of the recyclable materials. While this may be true, it is a volatile market,” Hunt explains.
He continues: “Consider the recent decision by China to stop buying mixed-grade material. When the largest buyer in the world stops buying, the impact on price, volume and movement is massive.”
Infrastructure investment is key
In addition, exporting material means operators need to be able to fill 25-tonne containers with recyclables. The collection, buying, storing and packing of the material requires a reasonable sized infrastructure as well as a system in place to buy from smaller dealers, who ultimately buy from the collectors. “For the entire chain of people involved in the recycling industry to survive, mills need to operate 24/7 and raw materials need to be purchased every day. This allows enterprising people to get up in the morning, collect material and get paid for it. And do the same thing the next day,” concludes Hunt.
