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The plastic, newspaper, cardboard and cans that Omaha residents separate into green bins could end up in a landfill if Omaha doesn’t pay its recycling partner more.

First Star Recycling said it might stop accepting Omaha’s recycling if the city won’t negotiate new contract terms before the deal ends in 2020.

The company is prepared to pay a $60,000 penalty and end the contract early if talks with Public Works prove fruitless, The World-Herald has learned.

The reason: First Star says it’s losing money after a near-collapse of the national and international markets for recycled materials.

How bad is it? Cardboard, for example, used to bring First Star $100 a ton. Now it sells for as little as $15 a ton. Even aluminum cans, which had sold for $1 a pound, now sell for about 50 cents.

First Star wants to charge Omaha a tipping fee of up to $100 per ton of waste it drops off to recycle. Currently, it doesn’t charge the city.