Why Scrap Metal Recycling Companies Are Getting Partnership Offers from Mining Operators

There are reports that there is a new trend in mining – that miners are diversifying into the metal recycling sector. In our sister blog, we wrote about that latest industry news and noted that miners are increasingly diversifying into the recycling sector due to rising demand for critical minerals, longer lead times for new mining projects, changing policies, and sustainability requirements. (Read The Trend of Mining Companies Partnering with Scrap Metal Recycling Companies for more details.)

The Experts Agree

The World Steel Association writes in its fact sheet that the “steel industry actively manages the use of energy. Energy conservation in steelmaking is crucial to ensure the competitiveness of the industry and to minimise environmental impacts, such as greenhouse gas emissions. Steel saves energy over its many life cycles through its 100% recyclability, durability and lightweight potential. … The production of primary steel is more energy intensive than the production of secondary steel using scrap due to the chemical energy required to reduce iron ore to iron using carbon-based reducing agents.”

Other industry associations agree:

1. International Aluminum has reported that recycling saves ~95% of energy costs compared to mining bauxite.
2. The US Environmental Protection Agency (EPA) produced a fact sheet which outlined the impact of recycling and wrote that one ton of recycled steel saves the energy equivalent of 3.6 barrels of oil and 1.49 tons of iron ore over the production of new steel. And Aluminum can be recycled using less than 5 percent of the energy used to make the original product.
3. The US Energy Information Administration (eia) notes on its website:
   • “Primary production, in which steel is made from iron ore and aluminum from bauxite ore, is energy intensive. However, secondary production, which involves the use of recycling scrap to make steel and aluminum, is much more energy efficient. The Environmental Protection Agency estimates that secondary steel production uses about 74% less energy than the production of steel from iron ore, while the U.S. Department of Energy reports that secondary aluminum production requires 90% less energy than primary production.”
4. The World Resources Institute reports that “Copper produced from recycled materials can save up to 85% of the energy needed for mining and extraction. While the exact quantity of energy and greenhouse gas savings depends on how it’s recycled and the quality of secondary input materials, recycling copper can significantly reduce air pollution and greenhouse gas emissions across the entire supply chain.”

Recycling Technologies

Scrap metal recycling companies use advanced technologies, such as handheld X-ray fluorescence (XRF) analyzers, to identify metal compositions accurately. These technologies, already used in mining exploration, can be adapted for scrapyards to improve operational efficiency, accuracy, and profitability. Analyzers utilizing XRF technology help enable rapid, non-destructive testing, crucial for sorting and valuing scrap metals, meeting regulatory standards, and enhancing company reputations.

Many varieties of metal, including high temperature alloys, are entering scrap yards, often from unknown sources or with mislabeled or misidentified documentation about the origin and composition. Since manufacturers are increasingly using recycled materials in their fabrication processes, the material integrity of the finished product could be compromised. Accurate sorting and metal identification is paramount to the safety of the consumer, as well as the ability to satisfy the customer, which could affect both profitability and reputation.  In order to help protect their brand and operations, mining companies should evaluate the technologies that recycling companies are using to help ensure they are accurately identifying the scrap.

Miners and Scrappers Can Be a Win-Win

As we noted, recycling metals conserves energy and reduces environmental impact. For example, recycling steel and aluminum saves significant energy compared to primary production. However, recycling rates for critical minerals remain low due to economic, technological, and regulatory challenges. The IEA recommends advancing recycling technologies, creating economic incentives, implementing robust policies, and fostering international collaboration to improve recycling rates.

A circular economy approach, where materials are reused and recycled extensively, can reduce dependency on primary raw materials and support a sustainable clean energy transition. Coordinated global efforts and supportive policies are essential to maximizing the potential of recycling critical minerals. Whether investing in new mines or scrap metal recycling, XRF technology can help optimize operations and help ensure economic viability.

Resources

1. eBook A practical guide to improving metal and alloy sorting for scrap metal recyclers
2. eBook: XRF in the Field: XRF Technology for the Non-Scientist

1. Mining Technology article: https://www.mining-technology.com/features/miners-diversifying-into-metals-recycling/
2. United States Geological Survey (USGS): https://www.usgs.gov/programs/mineral-resources-program/science/what-are-critical-minerals-0
3. Critical Minerals List: https://www.usgs.gov/news/national-news-release/us-geological-survey-releases-2022-list-critical-minerals
4. International Energy Agency (IEA) report: https://www.iea.org/reports/recycling-of-critical-minerals/executive-summary
5. Mining XRF technology: https://www.thermofisher.com/us/en/home/industrial/cement-coal-minerals/mining-minerals/technologies.com?icid=CAD_blog_metals_2025March
6. World Steel Association: https://worldsteel.org/wp-content/uploads/Fact-sheet-energy-in-the-steel-industry-2021-1.pdf
7. World Resources Institute: https://www.wri.org/insights/pivotal-role-recycled-copper-energy-transition#:~:text=Copper%20produced%20from%20recycled%20materials%20can%20save,gas%20emissions%20across%20the%20entire%20supply%20chain
8. International Aluminum: https://international-aluminium.org/landing/aluminium-recycling-saves-95-of-the-energy-needed-for-primary-aluminium-production/
9. US EPA: https://archive.epa.gov/epawaste/conserve/smm/wastewise/web/html/factoid.html
10. Scrap metal XRF technology: https://www.thermofisher.com/us/en/home/industrial/spectroscopy-elemental-isotope-analysis/portable-analysis-material-id/portable-metal-manufacturing-inspection-recycling-solutions/portable-scrap-metal-recycling-analysis.html?icid=CAD_blog_metals_2025March