Cleanaway agrees to acquire Tox Free Solutions

Cleanaway has agreed to acquire Tox Free Solutions (Toxfree) for about $671 million.

Cleanaway is offering $3.425 for each Toxfree share and the integration of the business is expected to deliver about $35 million in annual synergies over a two-year period. Toxfree shareholders will be able to receive a 5c a share interim dividend.

To fund the acquisition, Cleanaway will launch a fully underwritten $590 million 1 for 3.65 pro rate accelerated entitlement offer and draw down debt from a new multi-tranche facility.

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In a statement, Toxfree board of directors reportedly unanimously recommended that shareholders vote in favour of the scheme, and will vote the shares they own or control in favour of it, in the absence of a superior proposal.

Cleanaway Chief Executive Officer Vic Bansal said acquiring Toxfree will consolidate Cleanaway’s position as Australia’s leading waste management company, balancing and re-weighing its integrated waste model.

“The acquisition will accelerate the implementation of our Footprint 2025 strategy by adding prized infrastructure assets across the country, as well as contributing an exciting new business in the form of a leading, vertically-integrated provider of healthcare waste management products and services, including collection, transport and treatment of sharps, clinical and related waste,” he said.

The scheme consideration values Toxfree’s fully diluted equity at approximately $671 million. The transaction will be subject to standard regulatory conditions, including Australian Competition and Consumer Commission approval. A scheme booklet, independent expert’s report, reasons for the directors’ recommendation and details of the scheme will be prepared and provided for review to the Australian Securities and Investments Commission for review, expected in February 2018.

Toxfree expects to update the market on an indicative timetable in January 2018.


Cleanaway contract with The Hills Shire Council begins

Cleanaway has unveiled its new fleet of trucks as it prepares to begin a new 10-year contract with The Hills Shire Council, located in the north west of Sydney.

Outfitted with the latest technology and mechanical advancements, the trucks are expected to release fewer emissions into the environment and are marginally quieter as they navigate the Hills Shire network. They are also fitted with automatic reverse smart sensor brakes and up to seven cameras, with a bird’s eye camera for enhanced safety.

General Manager of the Hills Shire Council, Michael Edgar, said the new fleet were part of Cleanaway’s renewed 10-year contract with the Hills Shire.

“The council is bound to ensure that ratepayers receive the best quality, efficient and effective service and Cleanaway has proved time and again, they are reliable, economical and sustainable,” Mr Edgar said.

Apart from the new trucks, the contract also includes the rollout of new yellow-lidded bins, which have been distributed to most residents excepting those in new release areas.

The new waste contract starts on 1 October, 2017.

Cleanaway’s response to Four Corners

Vik Bansal, Clenaaway's CEO, talks about NWRIC

Last month’s Four Corners report on the waste industry raised a number of topical issues, including interstate waste transport (to avoid landfill levies), and the stockpiling of glass.

Waste Management Review recently covered the issue in detail speaking with MRA Consulting’s Mike Ritchie.

In August, Cleanaway released its statement in response to the program, with a focus on dispelling any associations with some of the issues raised in the investigation.

“We do not stockpile glass, nor do we transport waste from New South Wales to Queensland to avoid landfill levies, as others are reported to be doing. Cleanaway is committed to transparency and integrity in the way it operates,” the company said.

“We remain committed to our mission of making a sustainable future possible and to our Footprint 2025. Our entire value operating model is built around extracting the maximum value from waste, which means recovering more recyclables each year and exploring ways to continually reduce the volume of waste going to landfill.”

Below is the company’s response to some key questions arising from the program:

On the transfer of waste between NSW and QLD

Does Cleanaway transfer waste from NSW to QLD?

No. Cleanaway does not transfer waste from NSW to QLD.

We made a conscious decision at the time the landfill levy was abolished in Queensland to not transfer waste from New South Wales to Queensland.

Why doesn’t Cleanaway transfer waste from NSW to QLD?

This decision was made for two main reasons: first, because there are unacceptable risks associated with moving large volumes of waste across very long distances and, second, because we’re simply not prepared as a matter of principle to undermine the spirit of the legislation.

We remain committed to this and do not transfer waste from NSW to QLD.

On the stockpiling of glass and other recyclables

Does Cleanaway stockpile glass?

Cleanaway does not stockpile glass. In fact we have been exploring different options to more efficiently recycle and reuse glass across our network.

What is Cleanaway doing to avoid having glass stockpiles like some of the other operators in the report?

At our new Materials Recycling Facility (MRF) in Perth, we have invested in new glass crushing and clean up technology which allows us to create a glass sand product on site, which is ready for immediate use in civil construction as a sand/aggregate replacement.

Our Commodities Trading Desk remains focused on exploring new markets for recycled commodities to ensure the ongoing economic sustainability of our recycling operations.

We remain committed to our mission of making a sustainable future possible, and to our Footprint 2025. Our entire value operating model is built around extracting the maximum value from waste which means recovering more recyclables each year and exploring ways to continually reduce the volume of waste going to landfill.

On the risk of fire at landfills

How does Cleanaway manage the risk of fires from the coal seams when landfilling old coal mining sites?

All Cleanaway landfills are highly engineered and work to stringent licencing and environmental regulations.

Strict regulations specifically cover the disposal of waste in old coal mining areas. During cell construction, any coal seams must be removed.  As a further precaution, a metre of clay is laid along the bottom and the sides of the cell to act as a thermal barrier between the cell and the waste.

Was the fire at New Chum caused by the coal seams?

There was a fire at our New Chum landfill in July 2017. The fire was on the surface level of the open face of the landfill which suggests that it was the result of waste material being hot at the time of disposal.

Fire is a risk during the process of disposing of waste in any site, although it is rare.

We take the safety of our people and the community seriously, so all Cleanaway sites have stringent processes to detect and manage and mitigate the risk of fire. The fire at New Chum was detected and extinguished quickly – highlighting the effectiveness of our processes.

Cleanaway opens high-tech recycling facility in WA

The City of Perth has welcomed what Cleanaway says is the most high-tech recycling facility in the southern hemisphere.

Cleanaway says its brand new Materials Recovery Facility (MRF) has the capacity to process the city’s entire household recyclable waste.

Up to 250,000 tonnes of recyclable material, enough to fill almost 470 Olympic-size swimming pools could be handled by the new MRF, each year, they said.

Cleanaway said its MRF is the most advanced commingled recovery system in the country, with optical sorting technology capable of separating recyclable materials including plastics, metals, paper and cardboard. The new plant plans to deliver some of the highest diversion rates in Australia – 97 percent, in comparison to average recovery rates of less than 85 percent.

Mr Reece Whitby, Parliamentary Secretary for the Environment, today joined Cleanaway CEO and Managing Director Vik Bansal to mark the official opening of the MRF in Perth’s north east.

“This multi-million-dollar facility is a major step forward in both infrastructure and technology and will take recycling in Western Australia to a whole new level of quality and purity. The Perth MRF is a significant investment for Cleanaway in line with our Footprint 2025 plan, and a demonstration of our firm commitment to creating a sustainable future for Australia,” Mr Bansal said.

Cleanaway General Manager for Western Australia, David Williamson, said the high-tech facility has an unmatched capability designed to address Perth’s recycling needs for the next decade and beyond.


  • 95% recovery of all recyclables up to 10% higher than current MRFs
  • Up to 15% more waste diverted from landfill
  • 50 tonnes throughput of recyclable materials every hour
  • 53,000 tonnes of recovered paper and cardboard every year
  • 7,500 tonnes of recovered mixed plastics every year
  • 1,000 tonnes of recovered aluminium and metals every year

“With the city’s population set to reach 3 million by 2020, Perth households and businesses will be producing more waste than ever before. Increasing the state’s capacity for resource recovery is a top priority for Cleanaway. Our new MRF will be the first facility capable of recycling household and business waste. We are opening the door to small and large scale commercial customers and making recycling easier in the workplace, giving businesses the ability to recycle in the same way as households,” Mr Williamson said.

Almost 20 years ago, Cleanaway introduced the first MRF to Western Australia. These older MRF’s have now been decommissioned and replaced by the new MRF in South Guildford.

“This significant investment by industry recognises the value of resources that are lost when recycling is not maximised,” Mr Whitby said.

“The McGowan Labor Government is committed to improving recycling performance in Western Australia.

“It’s great to see the private sector playing an active role by complementing the actions taken by the Western Australian Government and local governments to promote improved recycling, such as the Better Bins kerbside recycling program.”


Cleanaway to double renewable power generation for Melbourne

Transpacific CEO Vik Bansal

Cleanaway’s latest investment is slated to power more than 8,000 homes Melbourne each year.

The company will add four modules to its current gas regeneration capability, enabling it to repurpose landfill gas and produce more than 8.5 megawatts of electricity per hour. This will effectively double the power generation capacity at Melbourne Regional Landfill (MRL) from today’s equivalent of 4,000 homes.

Clete Elms, Cleanaway General Manager for Victoria/Tasmania said the company’s decision to boost the waste to energy capability at MRL underlined its philosophy of treating waste as a sustainable resource wherever possible.

“It’s a significant capital investment we’re undertaking on behalf of the community because we believe in the principle of recovering, recycling and reusing waste throughout our operations and, where possible, through those of our customers”, he said.

“MRL is a highly sophisticated facility with best-practice systems and technology that ensures we’re able to manage and treat different types of waste safely and effectively. In this case, capturing and converting landfill gas into renewable energy brings tremendous environmental benefits for the community, while delivering more electricity to the grid”, said Mr Elms.

Cleanaway operates a national network of collection, processing, treatment and landfill assets from almost 200 locations across Australia.

Mr Elms said the company’s upgraded power generation capacity at MRL would be operational from mid-2017.

Kingston ratepayers to pay millions for landfill clean up

Ratepayers within Melbourne’s Kingston City Council will reportedly be out millions of dollars to clean up former landfill sites over the coming years.

News Corp reported the council is urging the Victorian Government to assist with the money collected from landfill levies.

The council has already set aside $5 million for remedial work over the next four years.

Council city assets and environment general manager Daniel Freer told News Corp the council spends around $250,000 a year to monitor the former landfill sites which it is responsible for.

“Council would welcome assistance from the Victorian Government to fast-track rehabilitation and to acquire private land in order to transform former landfill sites into public parkland,” Mr Freer said.

Landfill levies help to fund Sustainability Victoria and the Environment Protection Authority (EPA), as well as metropolitan and regional waste management groups. The remainder is paid into the Sustainability Fund, established in 2010 for the State to reinvest in waste management and green house reduction projects.

Responsibility for the clean-up of landfills rests with the land owners which in Kingston is a combination of council and private owners.

Council has allocated $2 million of the current budget to the Eder St South landfill site with plans to transform it into a public park.

The two remaining operating privately owned landfills in the area are set to close by the end of the year and the cost of their rehabilitation will rest with landowners Cleanaway.

Cleanaway’s post collections regional manager Mark Globan told News Corp they anticipated Fraser Rd and Victory Rd tips would stop receiving rubbish in mid to late 2017.

He said rehabilitation of the Fraser Rd site was scheduled to begin in 2020.

A planning amendment for the Victory Rd site was recently approved by Kingston Council, to allow Cleanaway to transform the site into a community park.

Six privately owned former landfills and four council managed ones have been issued a clean up notice by the EPA that requires owners to submit a rehabilitation plan.

Cleanaway awarded contract with Chevron Australia

Cleanaway has been contracted to provide waste management services to energy company Chevron Australia.

It comes after Toxfree announced that it would cease services to Chevron on its Gorgon LNG project on Barrow Island after seven years.

From 1 July, Cleanaway will provide waste management services including the collection, processing, treatment and disposal of all solid waste, recycling and liquid waste across a number of Chevron-operated sites.

The Western Australian sites include Barrow Island, Thevenard Island, Wheatstone LNG Plant, North West Supply Bases and Warehouses and Perth Supply Bases and Warehouses.

The majority of waste will be processed at Cleanaway’s Karratha site, with recyclables being sent to the company’s Materials Recycling Facility (MRF) in Perth, which will start operations in May 2017.

Cleanaway General Manager Solids David Williamson said the company recently established an agreement with the Thalanyji people, the Traditional Owners of the lands near Onslow (WA) to provide business and employment opportunities to the local community.

“We are very proud to be awarded this contract and look forward to working with Chevron Australia to deliver a safe and efficient waste management service,” Mr Williamson said.

“We are also excited to be working with the Thalanyji people to provide genuine opportunities for employment within the local community – making a sustainable future possible for all Australians.”

Cleanaway’s service begins in City of Karratha

Western Australia’s City of Karratha has begun its regular kerbside recycling service with Cleanaway.

Commencing in February, the City of Karratha and Cleanaway agreed to implement a fortnightly recycling service in response to community feedback showing it was a high priority for residents.

Cleanaway Pilbara Regional Manager Dave Mulder said people could be assured their materials would be properly recycled.

“The key thing for us is that people need to be confident that we are leaders in the recycling world and (their waste) is going to be recycled,” he said.

“The feedback we’ve had from the community has been very positive. Now it’s important that we deliver on what we say we’re going to do, and also that we work together with the community for a successful outcome.”

Kerbside recycling will operate on a fortnightly cycle around all Karratha suburbs, Dampier, Roebourne, Cheeditha, Wickham and Point Samson.

All will have the same rubbish collection days as before except for Roebourne and Cheeditha, which will be collected on Fridays, and Point Samson, which will change to Wednesdays.

Cleanaway said the new dual-service approach is a result of competitive tender process with the City of Karratha.

Cleanaway was awarded the contract beginning 6 February 2017, under a 3 + 2 rolling arrangement.

The collected rubbish will be processed in Karratha and the glass recycled at Karratha Earthmoving and Sand Supplies, before the remainder is transported to Cleanaway’s new $20 million Material Recycling Facility in Perth.

Karratha Enviro Group committee member Laurinda Timmins welcomed the move towards more sustainable waste management in the City.

Pictured: City of Karratha mayor Peter Long and Cleanaway Pilbara Regional Manager Dave Mulder.


Cleanaway establishes new market

Waste management company Cleanaway has been awarded a 10-year collection contract to New South Wales’ mid north coastal region of Kempsey Shire.

The Macleay Argus reported the Council’s contract, which comes into effect on July 1st, will see the company establish a local base in the Macleay valley, including a new truck depot and customer service call centre.

According to council, the new business will benefit a number of other local businesses, including Scotts Hydraulics, C&G Electrics, Randalls Business Equipment and Beaurepaires.

Cleanaway’s fleet of garbage trucks will be serviced by local business, Mavin Truck Centre in South Kempsey.

Dean Mavin, dealer principle at Mavin Truck Centre, said the service agreement with Cleanaway to provide maintenance, servicing and urgent repairs would allow the business to look at taking on new employees and training up staff.

“This contract has provided the business confidence to look at possible expansion, an opportunity to upskill our existing team, and a chance to take on new apprentices,” Mr Mavin said.

“We’re thrilled to play an important role in servicing the garbage trucks to minimise downtime and disruption, and keep our local waste management services running smoothly.”

Council’s general manager, David Rawlings, said Cleanaway was also looking to establish a call centre in Kempsey before the start of the new waste contract.

He said the calls centre would be staffed by Macleay locals who will take the pressure off of council’s call centre.

Michael Biagi, NSW regional manager of Cleanaway, said the company is committed to working with the local communities in which it operates.

National waste and recycling body to advocate for industry

Several of Australia's largest waste firms have joined for NWRIC

A new body working to create a cohesive national vision for Australia’s waste management industry, the National Waste and Recycling Industry Council (NWRIC) has officially formed, following the first meeting of its executive in Sydney on February 13.

NWRIC has received support from Australia’s largest waste management companies – and has begun operations.

The Council will be empowered to begin its work thanks to the support of its national members – Alex Fraser Group, Cleanaway, J. J. Richards and Sons, Solo Resource Recovery, Suez, Toxfree, Remondis, ResourceCo and Veolia.

“The waste and recycling industry needs a national voice to advocate for a fair, sustainable and prosperous industry for all stakeholders,” said Phil Richards, Chairman of the NWRIC’s host association Board.

“Australia’s waste management industry is an essential service, and through the NWRIC, we will be asking the Commonwealth along with State Governments to support our initiatives to take the industry forward.”

The NWRIC will serve waste management enterprises by creating industry led policy. The Council will be led by newly appointed CEO Max Spedding, and supported by Secretariat manager Alex Serpo.

The NWRIC will work in close partnership with jurisdictional affiliates. This partnership will allow the Council to represent and canvas concerns from many of Australia’s 450 small and medium sized waste management enterprises. Together, state affiliates and the national office will coordinate to create, and advocate for, cohesive national policy.

From today, the Council will commence working to create, share and build support for policy positions which will move the industry forward. Initial areas of focus include better planning, a fair market, the national harmonisation of the regulations governing the industry and effective policing of standards.

The Council welcomes media enquiries, dialogue with waste management companies seeking involvement in the NWRIC and feedback from stakeholders.