When Anwar Albatat returned to his workplace after a two-week holiday, he was met with an unexpected and unwelcome sight. A towering pile of old tyres obstructed his view of the tiny homes he constructs and sells. This discovery confirmed his suspicions that his industrial yard had been used as a base for an illegal tyre dumping scam.
Over the past six months, two businesses in Darwin have been burdened with tonnes of tyres and a hefty clean-up bill, victims of a scheme that has affected individuals and companies across Australia. “Everything seemed to be 100 percent genuine about [the workers sharing our yard],” Mr. Albatat noted. “They hired people … they had their own truck. But slowly, slowly we start to realise they were not coming here anymore.”
Mr. Albatat’s landlord had rented out a portion of the yard to a new tyre recycling company, Seoul Traders, which purportedly needed space to store and recycle tyres. However, the reality was far different. The Northern Territory Environment Protection Authority (EPA) had granted Seoul Traders a licence to recycle tyres commercially, a legal requirement in the region. Yet, the company soon vanished, leaving behind a mountain of tyres and unpaid rent.
Unveiling the Scam
The scam targets businesses with stacks of worn tyres, offering discounted recycling services. Operators collect payment but then abandon the tyres at rented lots or backyards, disappearing with the cash. Property owner Peter Kruhse described the ordeal: “It was a nightmare. I slogged in the sun for a month packing the tyres into stacks. No one should have to go through this heartache.”
In May, interstate authorities alerted the NT EPA to the scam, prompting an investigation. The EPA inspected Seoul Traders and found multiple breaches of licence conditions, leading to the suspension of their licence in June. “Seoul Traders was granted an environment protection licence in March,” an EPA spokesperson explained. “At the time of granting the licence, the NT EPA had no intelligence about an alleged scam being run.”
Financial and Environmental Impact
Recycling tyres in the Northern Territory is a costly process, despite a growing overseas market for shredded rubber and steel. It costs more than $1,000 for a commercial business to dispose of a tonne of tyres at the NT’s main waste facility. NTEX, a legitimate recycling company in Darwin, offers a cheaper alternative at $610 per tonne. However, the high costs have led to a surge in illegal tyre dumping across Australia.
Paul Wilson, NTEX’s facility manager, recounted their experience with the scammers. “We checked the company’s credentials and found no reason to question this particular client,” he said. After the tyres were dropped off, NTEX never heard from the company again, and the bill was left unpaid. Mr. Wilson noted, “There is money to be made, and I could certainly understand the appetite of scammers to be in that particular scam.”
Historical Context and Future Steps
This is not the first time such a scam has surfaced in Australia. In 2020, thousands of old tyres were illegally dumped in Western Australia, prompting authorities to issue warnings. The ongoing issue highlights the need for more stringent checks and monitoring of recycling companies to prevent future occurrences.
Mr. Kruhse estimated that Seoul Traders left around 50 tonnes of tyres on his property, potentially costing over $30,000 to dispose of. Meanwhile, Mr. Albatat and other affected business owners are left to deal with the aftermath, seeking ways to manage the costly clean-up and prevent similar incidents in the future.
The NT EPA’s investigation into Seoul Traders is ongoing, with the aim of uncovering the full extent of the scam and holding those responsible accountable. As authorities work to tighten regulations and prevent further abuses, the affected businesses continue to grapple with the financial and operational impacts of this fraudulent scheme.
