Yes it can. Most paper can be composted to use in mulch, including bills, envelopes, expandable files and newspapers and magazines, unless they contain heavy toxic metals e.g. foil wrapping paper. This process can dramatically reduce the environmental impact and some estimates report that each tonne of saves 17 trees; 1,400 litres of oil and 26,500 litres of water. paper can be your garden’s greatest friend – like newsprint provides an excellent source of carbon and, since is almost completely carbon, it can greatly help balance a compost that has been supplied with too much nitrogenous matter. Moisture absorption and water retention is also increased when using for composting.