I like the concept of recycling. But I don't like it much for tailings. The thing with real life tailing is they are a real pile of crap you don't want to deal with. As is said in your video, if you aim for recycling you should think about it when you are creating the product, it makes it a lot easier. Tailings are supposed to be the opposite of that, it's a bunch of really bad crap the producer never intended to recycle.
Of course it might be possible to do something about it, but the thing is, it's a video game with video games mechanics. So if you make it salvageable, then they really won't be much of a problem. The player just have to build a couple of tables, let it run overnight, and no tailings anymore.
So I wouldn't like it mid game. And late game it wouldn't be really useful because everybody is using the blast furnace already. Unless you make the blast furnace produce some tailings too, then we're talking.
I would like to see other wastes introduced. some kind of plastic wastes for instance. Now that durability is a thing, you could introduce a bunch of items that get broken and can't be fixed. And then you have to deal with them or they just fill up tons of space in your chests forever. If you make them not stack I'm sure they could be fairly annoying. And then make the player decide if he want to burn them for cheap, maybe even produce energy with it, but pollute a lot. Or if he want to recycle them by a long process, that takes energy and a lot of space. That would be interesting.
Also on a side note. I don't now where that video comes from,. But what kind of people put a trademark on what they sell as an ecologic principle? I'm a bit puzzled.