Operations
Guide
Everything you need to run a metal recycling yard from day one. Intake procedures, metal grading, compliance, fleet management, and daily SOPs — fully pre-built.
Section 01
Yard Setup & Layout
A well-organized yard is the foundation of efficient operations. Proper layout reduces handling time, improves safety, and maximizes throughput. Plan your space before opening.
Intake Zone
Scale, AI scan station, customer service counter. All incoming loads processed here first.
Sorting Area
Covered workspace for separating mixed loads by metal type and grade.
Non-Ferrous Storage
Secure bins for copper, brass, aluminum, stainless. Lockable preferred.
Ferrous Storage
Open area for steel and iron. Organize by grade: #1 steel, cast iron, mixed.
Catalytic Converter Vault
Locked, secure storage for high-value catalytic converters. Camera coverage required.
Processing Area
Wire stripper, baler, shear. Separate from customer-facing areas for safety.
- Minimum 5,000 sq ft yard space recommended for a starter operation
- Industrial zoning (M1 or M2 equivalent) required — verify with your local authority before signing lease
- Perimeter fencing minimum 6 ft with lockable gate — required by most scrap dealer licenses
- CCTV coverage of all intake, storage, and exit points — 30-day recording retention
- Adequate lighting for evening operations and security
- Spill containment for battery acid and fluids from automotive scrap
Section 02
Customer Intake Procedure
Every transaction must follow a consistent intake procedure. This protects the business legally, prevents fraud, and ensures accurate pricing. Use the Diamond Metals app for every intake.
Verify Customer ID
Government-issued photo ID required for every seller. Record name, ID number, and vehicle plate. Required by local scrap dealer regulations in most jurisdictions worldwide.
AI Scan the Load
Open Diamond Metals app. Point camera at the material. AI identifies metal type, grade, and generates a live-priced quote in under 3 seconds.
Weigh the Load
Place material on certified floor scale. Record gross weight. Subtract tare weight of container if applicable.
Confirm Quote & Accept
Review AI-generated quote with customer. Confirm grade and weight. Accept in app to lock in the price.
Process Payout
Diamond Metals triggers payout automatically upon acceptance. Cash, e-transfer, or cheque depending on your setup.
Issue Receipt
Print or email transaction receipt. Keep copy on file for 2 years minimum (regulatory requirement).
Section 03
Metal Grading Reference
Accurate grading is critical — buying the wrong grade at the wrong price destroys margins. Use the Diamond Metals AI scan as your primary grading tool, and reference this guide for manual verification.
Copper Grades
Bare Bright
Clean, uncoated, unalloyed copper wire. No solder, paint, or insulation. Highest value.
#1 Copper
Clean copper pipe, bus bar, clippings. No paint, solder, or fittings. Minimal oxidation.
#2 Copper
Copper with solder, paint, or light oxidation. Includes plumbing with fittings.
Insulated Wire
Copper wire with plastic insulation. Value depends on copper recovery percentage.
Aluminum Grades
Clean Aluminum Rims
Automotive alloy wheels, no steel inserts or weights.
Aluminum Extrusion
Clean 6061/6063 extrusion — window frames, structural profiles.
Mixed/Dirty Aluminum
Mixed alloys, painted, or contaminated. Lower recovery rate.
Aluminum Cans
Clean used beverage cans (UBC). High volume, moderate value.
Brass Grades
Yellow Brass
Clean brass fittings, valves, plumbing fixtures. No iron or steel.
Red Brass
Higher copper content — faucets, fire hydrant parts, pump housings.
Brass Radiators
Automotive brass/copper radiators. Value depends on copper content.
Section 04
Fleet & Pickup Operations
Mobile pickup service is a major competitive advantage. Commercial clients will pay a premium for scheduled pickups — and it builds recurring revenue. Use Diamond Metals fleet tracking for all vehicles.
- Schedule commercial pickups weekly or bi-weekly — consistency builds trust and volume
- Use Diamond Metals fleet GPS to monitor all vehicles in real time
- Drivers carry the Diamond Metals app — AI scan loads on-site before loading
- Weigh loads at client site with portable scale, or at depot on return
- Minimum pickup volume: 500 lbs to justify fuel and labor cost
- Offer preferred pricing (+5–10%) for commercial accounts with volume commitments
- Maintain vehicle service logs — commercial vehicles require regular inspection in BC
- Carry commercial auto insurance with cargo coverage on all fleet vehicles
Section 05
Regulatory Compliance
Metal recycling is a regulated industry in BC. Non-compliance can result in fines, license suspension, or criminal charges. Follow these requirements from day one.
Metal Dealer Registration
Register as a licensed metal dealer with your local or national authority. Maintain transaction records for all purchases. Report suspicious transactions to law enforcement.
Local Scrap Dealer License
Required in most jurisdictions globally. Apply before opening. Renewal typically annual. Requires proof of zoning compliance.
Transaction Record Keeping
Record seller ID, description of material, weight, price, and date for every transaction. Retain records for minimum 2 years.
Prohibited Items
Do NOT purchase: manhole covers, street signs, utility wire, railway materials, or items with serial numbers without proof of ownership.
Environmental Compliance
Proper disposal of batteries, fluids, and hazardous materials. Spill containment required. Contact your regional environmental authority for local requirements.
Tax Registration
Register for applicable sales tax, VAT, or GST with your national revenue authority once revenue thresholds are met. Collect and remit on all sales.
Section 06
Technology & Tools
Diamond Metals App
Core platformAI metal scanning, live global pricing, instant payouts, fleet GPS tracking, catalytic converter catalog. Free to start, Diamond tier for full features.
Accounting Software
FinanceQuickBooks or Wave for invoicing, expense tracking, payroll, and tax preparation. Integrate with Diamond Metals transaction export.
Google Business Profile
MarketingFree listing for local search. Post buying prices weekly. Respond to reviews. Critical for "scrap metal near me" visibility.
CCTV System
SecurityIP camera system with cloud backup. Cover all intake, storage, and exit points. 30-day recording retention minimum.
Certified Floor Scale
OperationsLegally certified scale required for commercial transactions in BC. Annual calibration required. Keep certification on file.
Communication Tools
TeamWhatsApp or Slack for driver-to-depot communication. Share live pricing updates and pickup schedules with field staff.
Section 07
Staff Training Checklist
Every new employee must complete this checklist before working unsupervised on the yard floor.
Safety
- Personal protective equipment (gloves, steel-toe boots, safety glasses)
- Forklift and heavy equipment safety
- Hazardous material handling (batteries, fluids)
- Emergency procedures and first aid kit location
Intake & Grading
- How to use Diamond Metals AI scan
- Manual metal identification by sight and magnet test
- Scale operation and tare weight procedures
- ID verification and transaction record entry
Compliance
- Local metal dealer licensing and registration requirements
- Prohibited items list — what NOT to buy
- How to handle suspicious transactions
- Record keeping and receipt procedures
Customer Service
- Greeting and intake flow for walk-in customers
- How to explain pricing and AI scan results
- Handling disputes and complaints
- Upselling Diamond membership benefits
Section 08
Smelter & Broker Relationships
Your downstream buyer relationships determine your sell-side margins. Negotiate quarterly contracts and build multiple relationships to ensure competitive pricing and reliable offtake.
- Identify 2–3 smelters or metal brokers in BC/Alberta before opening — get quotes from each
- Negotiate quarterly pricing contracts for your primary metals (copper, aluminum, steel)
- Understand the difference between LME-based pricing and fixed-rate contracts
- Build relationships with catalytic converter processors separately — PGM pricing is specialized
- Minimum shipment volumes typically required — plan inventory accumulation accordingly
- Get paid within 5–10 business days of delivery — negotiate payment terms upfront
- Keep records of all smelter transactions for tax and compliance purposes
- Review and renegotiate contracts annually as your volume grows
Ready to Run Your Yard?
Download this operations guide and the full business plan to get started.