Australia’s largest waste collector Cleanaway said it could be forced to send some recyclables to landfill or stop collecting kerbside bins in three Perth Metro Councils unless local governments involved do not agree to higher fees.

Australia sells the vast majority of recyclables to majority traders who then on-sell to markets such as Indonesia, Korea and China for remanufacturing with China being the biggest buyer until recently.

Now that China has stopped in an effort to reduce pollution, Cleanaway has said their production costs have risen by 50 per cent, forcing it to negotiate new charges.