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Reuse of Sludge From Blade Sharpening

    I'm dealing with a veneer manufacturer who generates a fair amount 
    of sludge in the process of sharpening blades.  The blades are 
    used in machinery which slices the logs into veneer.
    Although manual sharpening methods were employed, and are still 
    used in some cases, the facility also relies on a computerized 
    Does anyone have any P2-related experience with blade management, 
    computerized sharpening equipment, and/or the use or recovery of 
    components in the sludge that may have value?  One comment was 
    made (and I have no idea how true or untrue it is) that diamond 
    powder may be a recoverable component in the sludge.
    Any information would be appreciated.  Thanks,