The mining industry is responsible for about 80 per cent of OTR waste tyres in Australia every year, discarding more than 200,000 tonnes of tyres annually, adding to a growing global resource of waste tyres potentially worth billions of dollars.
Once reprocessed, OTR tyres can be used to make numerous different products, such as new tyres, artificial turf, bunker fuel, paints and adhesives, and road binders in asphalt, which support wider circular economy initiatives.
However, OTR recycling can be costly and challenging, with only about 10 per cent of the 130,000 tonnes of OTR tyres and 115,000 tonnes of OTR rubber tracks and conveyors that reach their end-of-life every year being recycled.
Approximately 90 per cent of automotive tyres are recovered, which exceeds the national recovery target of 80 per cent for waste streams. However, the estimated 10 per cent recovery rate for OTR tyres falls significantly short.
Denmark has achieved 100 per cent OTR recovery through a tax scheme, moderate fee, and subsidies for granulation and pyrolysis. Meanwhile, the Canadian province of Ontario recovers 87 per cent of large OTR tyres through a legislated recovery rate.
France has achieved a 78 per cent OTR recovery rate, partly by requiring producers to collect and process tonnage from the previous year.
Last year, the ACCC reauthorised the Tyre Product Stewardship scheme, administered by Tyre Stewardship Australia (TSA), to enhance tyre recycling and promote the use of tyre-derived products. The reauthorisation allows the scheme to operate for an additional three years, contingent upon TSA reporting on specific metrics in its annual report.
ACCC Deputy Chair Mick Keogh said continuation of the scheme would lead to a reduction in the number of tyres being stockpiled, dumped in landfills or burned for fuel in an environmentally unsustainable method, and would likely result in environmental, public health and safety benefits.
Keogh said: “Reducing stockpiles of tyres also lowers the risk of illegal and unregulated fires, toxic gases and chemicals leaching into local environments, as well as removing breeding grounds for pests such as mosquitoes and other vermin.
“This is a growing problem as the number of tyres reaching end-of-life each year in Australia has increased rapidly, from 143,000 tonnes in 2018-19 to 225,000 in 2022-23.”
The ACCC recognised TSA’s concern that the scheme’s voluntary nature limited its effectiveness, as companies that imported or manufactured tyres or vehicles, or sold tyres, had chosen not to participate.
Moreover, so had most mining companies, especially where a remote location significantly increased the cost of transporting end-of-life tyres to recycling facilities.
Keogh said the ACCC encouraged TSA to consider ways to increase involvement from all sectors of the industry, particularly mining companies, to participate in the scheme.
Factors promoting OTR recovery include clear recovery outcomes, first-mover advantages, alignment with circular economy and regional development priorities, and the ability to secure larger quantities over a medium-term period. Additionally, existing stockpiles provide a reliable supply, enhancing certainty.
LOW RECYCLING RATES MEAN ONLY WAY IS UP
A report by Exactitude Consultancy has forecast remarkable growth in the global sustainable and recyclable tyre materials market from 2025 to 2034. This growth is driven by the industry’s shift towards sustainability, with vehicle manufacturers prioritising carbon neutrality and consumers increasingly demanding environmentally responsible products.
The market research firm valued the market at US$35.6 billion in 2024 and estimated a compound annual growth rate of 6.3 per cent over 10 years, reaching US$65.4 billion by 2034.
The main drivers of this growth include stricter environmental regulations, the decarbonisation of supply chains as OEMs adopt emissions targets and encourage tier-1 suppliers to reduce their carbon footprints, as well as a consumer shift towards green manufacturing and increasing awareness of the environmental impact of automotive components.
Growth is also being facilitated by the advancement of pyrolysis and chemical recycling techniques, enabling the high-purity recovery of valuable materials such as oil, steel, and carbon black.
The report identified three key restraints and challenges to the growth: material cost and process complexity, the lack of uniform global standards, and infrastructure gaps in recycling.
An emerging innovation entering commercial production is high-performance bio-based rubbers – including natural rubber alternatives such as guayule, dandelion rubber, and synthetic latexes – that offer better elasticity and reduce reliance on monoculture plantations.
Carbon black, an existing product made from recycled tyres, has seen growth in its use for tread compounds as it reduces carbon dioxide emissions by more than 60 per cent compared to virgin carbon black.
As a fine black powder used as a reinforcing filler in tyres and rubber products, carbon black is produced by the incomplete combustion of heavy petroleum products or other carbon-based materials.
TSA recently published a report on the use, recovery and recycling of OTR tyres, conveyors and tracks, providing a roadmap for Australia to realise the benefits of OTR tyre, conveyor and track resource recovery, particularly in regional, rural and remote areas.
TSA Chief Executive Officer Lina Goodman said the report made it clear that Australia’s persistently low resource recovery rate for OTR rubber products was insufficient.
She said: “Every business that creates, uses or disposes of an OTR rubber product must become a responsible steward of its lifecycle.
“There is no silver bullet solution, and waiting for one is no longer good enough – we must take progressive steps now towards a circular economy for OTR rubber products.”
The TSA report identified key barriers causing persistently low recovery rates, with notable barriers being the low perceived costs of onsite disposal, the high costs of logistics and recovery, uncertainty about end market size and capacity, and a low priority for tyre waste stewardship.
It also pointed out uncertainty about technologies and waste management approaches as a significant barrier.
