Minimum Requirements for Scrap Metal Recycling Facilities

Posted on: 5 January 2022


Australia's scrap metal recycling industry plays an integral role in waste metal recovery and management. Rather than send waste metals to landfills, scrap metal recycling facilities buy or collect waste metals and turn them into usable materials for various applications. That said, the scrap metal recycling industry is indeed lucrative, and some players might be tempted to cut corners to make a profit. Unfortunately, it defeats the purpose if facilities do not meet industry standards. This article highlights the minimum requirements that scrap metal recycling facilities observe.

Only Cashless Payments

For a long time, scrap metal recycling facilities used cash as the most popular form of payment for waste metal. However, authorities realised that it promoted criminal activity where people would steal cars, dismantle them, and sell metal parts to recyclers for cash. Catching the culprits was a challenge because scrap metal recyclers did not have critical data. Fortunately, things changed in 2017 when the Australian government passed a law that required all scrap metal recyclers and dealers to abolish cash payments in favour of either cheque or EFTPOS/electronic transfer. The new changes have continued to promote genuine scrap metal recycling while cracking down on criminals.

No Burning of Waste

A common practice with small-scale and medium-scale scrap metal collectors is burning waste to retrieve metal. For instance, some collectors place cables or car tyres in a furnace and burn the rubber or plastic off to access the metal easily. However, the practice pollutes the environment and has far-reaching consequences if conducted for long. Therefore, regardless of size, scrap metal dealers must not burn any type of waste to retrieve metal. Instead, it is better to invest in stripping equipment. Such devices are environmentally friendly and preserve the quality of waste metals.

Second-Hand Dealer License

The primary permit that a scrap metal recycler or dealer needs is a scrap metal dealer license. The authorisation allows metal recyclers to purchase waste metal from anywhere, including previously used products. However, today, scrap metal recycling facilities require a second license to operate legally in most territories. A second-hand dealer license allows scrap metal recyclers to buy scrap metal from used equipment and commodities, such as old cars and worn appliances. Failure to obtain a second-hand dealer license can lead to hefty fines or the closure of a recycling facility.

To learn more about these or other requirements, consider contacting local scrap metal merchants.