How ALS2 recovers gold from SIM cards and smart card modules

Every SIM card contains a small integrated-circuit module, while many payment, access and identification cards use a similar construction. The visible gold-coloured contacts are usually a thin plating over nickel and copper, with the silicon chip and fine bonding wires enclosed in resin. Individually, these components contain very little precious metal. Collected in large, consistent volumes, however, they become a useful secondary resource.

ALS2, developed by Ikoi S.p.A., is designed for precious-metals recovery from electronic waste without relying on conventional acid-intensive refining. Its acidless separation approach supports compact recovery plants that can process prepared WEEE fractions close to where they are generated. This changes the value calculation for difficult, low-volume streams such as discarded SIM card chips and smart card modules.

The treatment begins before the separation stage. Cards and telecommunications waste must be collected, identified and prepared so that gold-bearing modules are not diluted by plastic, paper, magnetic strips or unrelated metals. The objective is to produce a concentrated, traceable feedstock that allows the plant to work efficiently and recover gold with less chemical burden.

For Australian recyclers, the opportunity is relevant as mobile-phone turnover, contactless payments and access-control systems continue to produce mixed electronic waste. A specialist route can help turn a small component hidden inside everyday products into a measurable source of recovered gold, while supporting local resource-recovery targets.

Where the gold is found

The gold in a SIM or smart card module is generally present in very thin contact plating. Gold is used because it resists corrosion and maintains reliable electrical contact, particularly in components repeatedly inserted into readers or exposed to humidity and skin oils. Under the gold layer there may be nickel, copper or another base-metal structure, while the chip itself is attached to a small substrate and protected by an epoxy compound.

The actual metal distribution depends on the module design. A payment card may have a larger contact field than a modern SIM, and older components can contain different plating thicknesses or bonding arrangements. Some gold may also be associated with internal wire bonds or fine electronic connections. This variation is why a recycler benefits from feedstock characterisation instead of treating every card as identical.

The value lies in aggregation. A single expired SIM is not a practical refining lot, but millions of cards, telecom components and related electronic parts can form a stable stream. Recovering these materials also reduces the need to extract new gold and keeps copper, nickel, plastics and other fractions available for appropriate downstream recycling.

Preparing cards for an ALS2 feedstock

Preparation normally involves collection, sorting and mechanical size reduction under controlled conditions. Whole cards can contain PVC or other polymers, adhesives, printed inks and magnetic materials, so they are separated from the metal-bearing module wherever practical. The aim is not simply to shred everything; excessive mixing can spread precious-metal particles through a large, low-grade residue.

A suitable line may use manual inspection, automated sorting, cutting, granulation, screening and density or magnetic separation. The exact configuration depends on whether the input consists of loose SIM modules, complete bank cards, telecom scrap or a blended WEEE fraction. Dust control and secure handling are essential because fine particles may contain metals and resin residues.

In Australia, collection may involve mobile-phone retailers, corporate IT asset managers, banks, transport operators and council transfer stations in cities such as Sydney, Melbourne and Brisbane. The National Television and Computer Recycling Scheme does not cover every category of small electronic item, including many SIM and smart card streams, so a recycler may need a dedicated take-back arrangement rather than relying on a standard kerbside service.

How acidless separation changes the route

Traditional precious-metals refining can involve strong acids, high reagent consumption and complex effluent treatment. ALS2 is intended to provide a cleaner alternative by separating valuable metals from prepared electronic feedstocks without the conventional acid-based route. The plant concept is particularly relevant where a recycler needs a compact installation with controlled operating conditions and a reduced chemical footprint.

At a high level, the prepared fraction is introduced to a treatment sequence that promotes the separation of precious-metal-bearing material from the surrounding substrate. The process is engineered around the physical and chemical properties of the feed, allowing gold-rich output to be recovered while base metals and non-metallic residues follow separate routes. The precise operating parameters depend on the composition and particle size of the material.

This does not mean that preparation or process control can be ignored. Moisture, resin content, copper loading and contamination all influence performance. Sampling and laboratory analysis help determine the expected precious-metal concentration, the right throughput and the most suitable recovery settings for a particular batch.

Recovering gold from mixed electronic streams

SIM modules rarely arrive alone. A commercial recycler may process them alongside printed circuit board fragments, connectors, relay contacts and other plated components. Blending can improve plant utilisation, but it also requires careful grading. A high-value fraction should not be diluted so much that the gold becomes difficult to recover economically.

ALS2’s broader application in WEEE is important here because a facility can potentially treat more than one carefully prepared feedstock. For example, experience with industrial relay recovery illustrates how gold-bearing electrical components can form part of a wider resource-recovery strategy. Feedstock recipes, pre-sorting and batch records help maintain consistent results when material types change.

The recovered gold-bearing fraction may then move to further concentration or finishing stages, depending on the installation and commercial arrangement. A responsible operator should document where each output goes, including base-metal concentrates, plastics, resin-rich residues and any hazardous fraction. Recovery is most credible when the entire material balance is managed rather than focusing only on the headline metal.

Safety and environmental performance

Removing acid-based refining steps can simplify chemical management, but it does not remove the need for industrial safety. Operators still need suitable ventilation, guarding, dust extraction, electrical controls, personal protective equipment and procedures for spills or unexpected feed materials. Electronic waste may include brominated flame retardants, leaded solder, batteries or other substances that require separate control.

Australian workplaces must plan around state and territory work health and safety obligations, environmental approvals and waste-transport requirements. A facility in New South Wales, Victoria or Queensland may face different regulator processes, local planning conditions and acceptance rules. The Recycling and Waste Reduction Act 2020 provides a national framework for resource recovery, while state agencies set many practical requirements for handling and moving waste.

Export controls also matter. Australia implements obligations connected with the Basel Convention, and cross-border shipments of hazardous or problematic electronic waste may require permits or prior consent. Processing suitable material domestically can reduce unnecessary transport, improve chain-of-custody records and give businesses clearer evidence of responsible recycling.

Building a local business case

The economics depend on more than the gold price. Collection cost, module concentration, labour, preprocessing, electricity, transport, residue disposal and plant utilisation all affect the result. A recycler should test representative samples rather than estimate value from the gold-coloured appearance of a card. Thin plating can look impressive while containing only a small amount of recoverable metal.

Feedstock security is especially important in Australia, where long distances separate major population centres and regional recovery facilities. A plant serving Perth, Adelaide or regional New South Wales may need agreements with multiple suppliers to maintain throughput. Backhauling material from established logistics routes, such as courier or electronics distribution networks, can help lower transport impacts.

Brand owners and financial institutions may also value secure destruction and documented recovery. Expired access cards, payment modules and telecommunications components can contain sensitive information even when their gold content is modest. A controlled process that records receipt, destruction, separation and final output can support privacy obligations and corporate sustainability reporting.

What recovered gold means for circularity

Gold recovery from cards is one small part of a larger circular-economy system. The main environmental benefit comes from combining precious-metal recovery with correct separation of polymers, copper, nickel, silicon-bearing material and hazardous residues. Sending the entire card to landfill loses those resources and creates avoidable disposal concerns.

The ALS2 project, supported by the European Union’s Horizon 2020 research and innovation programme, reflects a broader effort to make secondary raw-material recovery more practical and less dependent on aggressive chemistry. Its relevance to Australia lies in adapting the technology to local collection networks, waste classifications and commercial feedstocks rather than treating it as a one-size-fits-all solution.

For consumers, the practical action is to return unwanted SIM cards, phones and smart cards through approved collection channels instead of placing them in general waste. For organisations, it is to separate retired cards and modules, protect sensitive data, and work with recyclers that can explain their downstream recovery route. For processors, it is to combine accurate sampling with a treatment system designed for safe, traceable metal recovery.

Australian recyclers, electronics manufacturers and organisations managing large card inventories can assess ALS2 as part of a responsible precious-metals strategy. Contact Ikoi S.p.A. through the ALS2Project to discuss feedstock testing, compact plant applications and a recovery pathway suited to local WEEE streams.