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Sustainability report 2019 Eramet 2019 Highlights 2019

The importance TABLE OF CONTENTS of steel in a zero 4 About Eramet Norway emission society 6 Preface: The goals are set, Steel and manganese alloys are critical the direction is clear, elements in order to achieve the zero we’re on our way! emission society and manage a massive emission reduction. 8 About our plants NOK6.5522 +3.9% Page 22 12 Our R&D department Turnover FTE Operating profit ratio 14 Safety (billions) 16 Training NewERA energy 18 Social responsibility recovery 20 About manganese The pilot facility has been ordered. HSEE refined 22 The importance of steel approx. products Page 44 30% 60% 24 Our production process approx. 530 000 26 Global markets NOK 2.9 tonnes billions Study of dust volume 28 Sustainability as a product and air quality in 30 UN sustainable sustainable Porsgrunn development goals CapEx spending Sales volume 32 Climate and environment Novel research project in collaboration – our direction (since 2000) with Yara and NORCE. 34 Theme: Climate

Page 52 40 Theme: Energy

48 Theme: Environment Expanding the use of 54 Theme: Circular economy Silica Green Stone 62 HSEE policy Moving forward with circular economy. 64 HSE data 66 Environmental data approx. 2 twh approx. 724 ktons Page 57 70 Finance Electric power CO2 emissions consumption

2 ERAMET NORWAY SUSTAINABILITY REPORT 2019 3 ABOUT ERAMET NORWAY About

VISION Eramet Norway

The world's leading producer of refined manganese alloys through empowerment, innovation and job satisfaction

GOALS In our sector, we aim to be:

The producer Leader in the The world's with the smallest Among the field of refined safest climate and most cost efficient manganese workplace environmental producers alloys footprint

- We work in a learning environment -

Eramet Norway is a world-leading Eramet Norway’s main office is loca- Eramet Norway is a part of the French producer of refined manganese ted in Porsgrunn, and the company corporation ERAMET, which operates alloys for the global steel market, has more than 520 employees across in 20 countries and employs 13,000 with its three smelters in Porsgrunn, the three locations. In order to ope- people worldwide. ERAMET is a major and , in addition to rate smelters in Norway, a significant international company within the areas its research and development distance away from our main markets of mining and metallurgical operations, department (R&D) in Trondheim. in and North America, Eramet and specialises in manganese, nickel, Norway has established comprehen- mineral and special alloys. Eramet The plants in Porsgrunn and Sauda sive networks, solid agreements and Norway, which is a part of the mining have been in operation for more efficient logistics. As we move forward, and metals division, had a total revenue than 100 years, while the smelter in we firmly believe that Eramet Norway of NOK 6.5 billion, and the group's total Kvinesdal was established in 1974, delivers products that the world needs revenue was NOK 36.2 billion in 2019. and we are proud to be a part of the in its journey towards the future as a time-honoured industrial tradition zero emission society and we do this in Norway. in a resource efficient manner.

4 ERAMET NORWAY SUSTAINABILITY REPORT 2019 5 PREFACE The goals are set, the direction is clear, " At Eramet Norway, we look towards the future with ambitions of further growth and increased value creation, which will benefit our customers, by Bjørn Kolbjørnsen we’re on our way! owners and employees, as well as respond to CEO, Eramet Norway the demands for a greener future." Eramet Norway is proud to be one of worldwide and as a result, it is cruci- the stage for lower climate- and en- reduce out climate and environmental the world's most efficient producers al that our industry, and society as a vironment related emissions. The first footprint even further. of manganese alloys in terms of both whole, are ensured access to renewable step towards the construction of a economic competitiveness and climate energy. However, clean energy alone is full-scale energy recovery facility at the Knowledge and cooperation and environmental standing, a position not enough. Eramet Norway's goal is to Sauda plant was taken in the autumn Common goals, knowledge sharing we have acquired through years of sys- reduce emissions per tonne produced of 2019 when we placed the order for and the development of new circular tematic knowledge building, targeted by at least 43 percent before 2030, and a pilot facility worth NOK 50 million. economy value chains will accelerate investments and continuous organisati- by at least 80 percent before 2050. The pilot facility will be installed in the creation of smarter production, onal development. This work will never the autumn of 2020. greater resource utilisation and more be completed, and we will continue to The forest sustainable solutions. We believe that set, and work towards, new ambitious In order to succeed with these massive In addition, we are looking into how the green paradigm shift represents improvement goals within the fields emission reductions, we will be taking we can increase the utilisation of our a significant growth potential for of technology and working methods. advantage of another natural resource: furnace gas, which is a mixture of CO our Norwegian land-based process

the forests. Eramet Norway is working and CO2, and which ends up as CO2 industry. The world-leading climate Focusing on health and safety hard to replace fossil fuel coke with emissions. Here we have two options: and environment position we have in Our highest priority is the health and biomass as the carbon source in our We can come up with technological Norway give us an advantage, and the safety of all who work for us. Our goal is smelter ovens. This is ground-breaking solutions where the furnace gas is used good collaboration we enjoy between that everybody will leave the workplace work and we are dependent on a num- as a resource in other product chains or national authorities, the industry sector in as good health as they arrived and be ber of collaboration partners to succe- ensure that we can capture and store and our employees will continue to

in good spirits after working in a positive ed: forestry owners and others who the CO2 to avoid that it is released be a requirement for success. working environment with friendly col- refine these resources, so that we can into the atmosphere. leagues. A positive working environment become a part of a circular economy At Eramet Norway, we look towards the is an absolute requirement, but it is not value chain, research institutions and In 2019, we decided, as part of the Ey- future with ambitions of further growth the only one. Our operations should not knowledge centres both in Norway and deklyngen (Eyde cluster) CCS initiative, and increased value creation, which lead to any unnecessary adverse effects abroad. In 2019, we developed a plan for funded by Gassnova, to prepare for the will benefit our customers, owners and on our surroundings or the climate. Of a pilot study using bio-carbon at one of construction of a test facility for carbon employees, as well as respond to the these requirements, it is the climate our furnaces in Porsgrunn. We will send capture at our plant in Sauda. This work demands for a greener future. challenge that has received too little an application to Enova for financial must be viewed in conjunction with attention during the last decades, support in order to complete this pro- the Northern Lights project, which goal We combine our culture of impro- but this is now changing. ject in 2020, something that we believe is to develop a complete European bu- vement and innovation knowledge will trigger a positive investment decisi- siness model for the capture, transport and every day learning with our active

Reducing our climate footprint on from our French owners. and storage of CO2. involvement in external networks. A Eramet Norway is today one of the sustainable industry plays a central role producers in our sector with the smallest Research and development The projects mentioned here, in additi- in the zero emission society of the futu- climate footprint per tonne of mangane- We are also working with both R&D on to approximately 50 other projects, re, and Eramet Norway will continue to se alloy produced because of the natural and investment projects to improve our make up our roadmap for climate, be in the forefront to lead the way and advantage we have through the access process efficiency with the aim to redu- energy, environment, and circular will also in the years to come, remain to hydroelectric power. It is expected ce our consumption of electric energy economy, and these projects are the among the world's most efficient that the energy demand will increase and of carbon as a reduction agent in basis for how we are going to achieve producers of manganese alloys. our process, and as a result, set our ambitious, yet necessary, goals to

6 ERAMET NORWAY SUSTAINABILITY REPORT 2019 7 ABOUT OUR PLANTS

Eramet Norway Porsgrunn

Porsgrunn Population: Eramet Norway is founded on 35 500

long-standing industrial traditions. Established in 1913, the plant, with its central location at Herøya, is part of one of Norway's leading industrial clusters. This provides excellent prospects for further The three Norwegian processing developments of processes and ways of working, for example, connected to circular economy. plants are located in , Eramet Norway Porsgrunn has a flexible production facility that can produce and Telemark. various types of manganese alloys. With its two furnaces and refining plant, Eramet Norway Porsgrunn has an annual production capacity of 70,000 tonnes 155 FTE of silicomanganese and 105,000 tonnes of refined ferromanganese. 16 TRONDHEIM Apprentices FoU-department

Tizir, Tyssedal

SAUDA

PORSGRUNN

KVINESDAL

8 ERAMET NORWAY SUSTAINABILITY REPORT 2019 9 ABOUT OUR PLANTS

Eramet Norway Eramet Norway Sauda Kvinesdal

Sauda Population: Kvinesdal Population:

4 600 Eramet Norway Kvinesdal, which began production in 1974, occupies a central 5 900 location in the . The plant's compact structure with its three silico- The plant in Sauda is built on proud traditions dating back to the beginning of manganese furnaces is well adjusted for an efficient production flow with an the 1900's when the development of hydroelectric power in the Sauda water- annual capacity of approximately 160,000 tonnes, where of a considerable course laid the foundation for the industry that still exists today. The plant acti- portion is low-carbon silicomanganese. vely contributes to the local community and is an important partner in business development in Sauda. A thermal power plant that produces approximately 90 GWh of electrical energy annually, was established on site as early as 1981, and excess heat from the pro- With its two 40 MW furnaces and refining facility, Eramet Norway Sauda is duction process is used both on site and sold to external customers. Stolt Sea today a global leader in the production of refined ferromanganese that 166 Farm, located right next to the smelter plant, buy heated water from the plant 197 FTE FTE amounts to approximately 80 percent of the plant's annual revenue. and produces approximately 250 tonnes of turbot annually. 27 22 Apprentices Apprentices

10 ERAMET NORWAY SUSTAINABILITY REPORT 2019 11 OUR R&D DEPARTMENT

Eramet Norway’s Trondheim Some of our

R&D department Population: research partners in Trondheim 182 000 The department’s four employees work on developing and improving processes and uncover new solutions to produce more efficiently and to further reduce NTNU our climate and environmental footprint. Many of the research projects are supported by Norges Forskningsråd (The Research Council of Norway) NTNU (Norwegian University of Science and and Enova. Technology) is the country’s largest and leading supplier of engineers, covering areas of technology The department collaborates with outstanding research organisations: that range from nanotechnology and IT, to petroleum Eramet IDEAS (the group’s technology centre) and externally with institutions technology and ship design. NTNU, which has its own like SINTEF and NTNU in Trondheim. In addition, Eramet Norway is actively 4 research environments, works together with some of FTE involved in projects together with Teknova AS, Elkem Technology, NORCE the country’s most important technological and and Ferrolegeringsindustriens Forskningsforening (FFF). industrial companies.

SINTEF

SINTEF is a broad and multidisciplinary research organisation with international core expertise in technology, science, medicine and social science. SINTEF conducts contract research as an R&D partner for industry and administration and is amongst the four biggest contract research organisations in Europe.

Teknova FFF

Teknova AS is a technology and science research institute. This organisation was founded by the Norwegian Its operations are aimed at contract research, technolo- ferroalloy industry in order to collaborate on research gical development and innovation. The institute aims to in ferroalloy processes and products. The aim of the FFF develop knowledge and technology, and to create value is to maintain the position of the Norwegian ferroalloy for its users, society and its owners. industry at the forefront in ferroalloy production and of electrometallurgical technology. Its largest member Teknova aims to create proximity and cooperation companies are Eramet Norway and Elkem, and together between the University of Agder, Agder Research and they contribute something like 80 percent of the trade and industry in the Sørland region. Due to the organisation’s subscription funding. international nature of its research activities, Teknova will develop a broad, international field of activity and At the same time, the Norwegian Ferroalloy Producers international collaboration relationships. Research Association (FFF) is the most important arena for joint research within the industry. In particular, Eramet Norway is a member of the Eyde cluster, where R&D occupies a central position.

Photo: Erik Børseth, Synlig design og foto AS / NTNU

12 ERAMET NORWAY SUSTAINABILITY REPORT 2019 13 SAFETY

Injury statistics

14 13,3

12 11 9,2 10 TRI: The number of injuries 7,8 8,1 8 7,1 TRI values with and without absence 5,8 per million hours worked. 6 5

4 4 4 The columns indicate the 2 2 number of injuries with 2 absence for both our own 0 employees and contractors. Safety first, 2014 2015 2016 2017 2108 2019 for everyone, Contractors Employees

An excellent safety record is a example equipment, process techn- Green Zone requires that we always! requirement for our operations. ology and design of physical barriers. take the time to: Eramet Norway has not had any The third factor relates to how safety is serious accidents in 2019 and practised is organisation and things like • Map and understand the within ERAMET the number of organisational hierarchy, internal and situation: Look around. What accidents has been reduced by external networks, leadership, work- could happen if anything goes 35 percent in 2019 compared to place environment, values, standards, wrong? 2018, however, the group’s vision regulations and procedures. is zero injuries. • Evaluate the situation: "Lærende hverdag" (Learning orga- How to avoid unwanted situations? We work continuously and systemati- nisation) is our approach to create Do what the situation demands: cally to improve our safety record and interactions between people, techn- Take 5, A Safe Job Analysis (SJA) this work involves more than physical ology and organisation, and through or report measures that need measures such as barriers and prote- this process achieve the desired to be taken. ctive equipment. The most important outcomes. factor is that each and every one of • Make the correct choice based us relate to our surroundings in a safe In 2019, we introduced the Green Zone on these assessments in order to manner, and that this becomes a part concept in order to strengthening the avoid injury to yourselves, other of our workplace culture. One funda- human and organisational factors. persons and to machinery or mental element in our safety approach equipment. is to analyse events in terms of their Green Zone thinking means that we, at risk potential with the aim to obtain all times, maintain a safety zone around Green Zone also includes taking information on how to improve our ourselves and thereby avoid: care of people: our colleagues, fellow safety barriers. employees, friends and family. This • injuring ourselves is about creating a basis of trust so Our basic approach to safety is that • injuring others that we can talk to each other if we results are achieved through the • damaging installations feel something is not quite right interaction between People, Techno- or equipment and create a culture where we are logy and Organisation (PTO approach). not afraid to speak up, where we The human factor revolves around We will increase safety by assessing have a good working environment knowledge, communication, attitude the potential risks in all situations. and a safe workplace. and sensitivity, while technology is for

14 ERAMET NORWAY SUSTAINABILITY REPORT 2019 15 TRAINING

An integrated learning experience: On-the-Job OUR WAY OF WORKING Training "Neither the development of the programme nor the implementation of the pilot project 6. Sharing of learning 1. A safe learning would have been successful without the close "Speak about improvements" environment collaboration between the labour unions and • We think over what we have "Acknowledge and learn from our mistakes" learned in every day operations. People feel confident to make suggestions. our many competent operators." • • We describe what we have learned. • There is a culture of listening and discussing We share knowledge with colleagues with colleagues and managers. Marianne Synnes Kaasa, • and share learning with each other There is room for making mistakes and HR director, Eramet Norway • across areas and plants. brainstorm for new ideas.

THE NEXT PART OF THE TRAINING PROGRAM Eramet Norway and the local labour speed up our improvement efforts. 5. Continuous 2. Clear objectives unions were awarded a development Increasing competency is a critical improvement "Why are we here" grant in 2019 from the ‘main organi- factor in order to achieve further The next part of the training pro- "La little bit better every day" • Employees understand how sations’ joint action’ (Hovedorganisa- improvements, increase quality and gram that is now being developed We stimulate everyone to their own efforts contribute sjonenes fellestiltak, LO / NHO). The improve environmental efforts and to will contain: • present new ideas and to to the company’s goals. NOK 2 million grant was provided to work smarter. The OJT programme is develop through testing "LÆRENDE • They see the connection further develop our On-the-Job Trai- the educational aspect of Lærende Environmental knowledge: and failing. between their own depart- ning (OJT) programme, which was hverdag. Global and local environmental HVERDAG" We learn to process ideas ment and the overarching established as a pilot in 2017. objectives, emission permits, how • and provide feedback. objectives. One critical factor for the success of the individual can contribute. The correct ideas are • All employees have a good The training programme aims to in- the OJT pilot was the close collabora- • put into effect at the understanding of the opera- crease the levels of proficiency within tion between the labour unions and Improvement and innovation correct time. tions and understand knowledge: "The Eramet Way vocational skills and improvement our many competent operators. At the the big picture. and innovation competence among centre of the OJT method is the opera- – our way of working", skills to trans- our operators and maintenance staff. tors themselves who, with the help of a form an idea into something concre- This staff amounts to 70 percent of our facilitator, to a large degree create the te, the Lean Method and techniques. employees and they play an important content of the training program, which role in our continuous improvement ensures that the content is relevant for Specialised knowledge about 4. Self-directed teams 3. Best practices efforts. their jobs, the language is jargon free operations: More advanced know- "Ensure good everyday operations" "What is good work?" and the training can be an integrated ledge regarding environmental • We have at all times a clear oversight • There are established standards For a number of years, Eramet Norway part of an ordinary working day. installations and other important of the goals in the various departments for good work. has gradually implemented the Lean facilities, and increase the under- through regular meetings with the • We follow standards and challenge Method. These measures are collecti- Launched in 2017, the OJT pilot standing of unwanted incidents involved parties. these in a systematic fashion. vely called Lærende hverdag (Learning focused on creating a custom-made and risk reducing behaviour. • One assesses status and in the event of Organisation). In association with this, programme of fundamental vocational deviation decides on corrective measures. the company recognised that it was knowledge for the operators in OJT base knowledge for cold necessary to increase improvement production and operations. processes and maintenance (mecha- and innovation competence among nical/electrical/automation). both staff and managers in order to This part of the project is scheduled to run until 2023. 16 ERAMET NORWAY SUSTAINABILITY REPORT 2019 17 SOCIAL RESPONSIBILITY

Our social responsibility

Eramet Norway aspires to be a driving force for development in the local communities where we operate. As a part of the ERAMET group, we have a clear focus on sustainability and corporate social responsibility.

Corporate social responsibility

Eramet Norway practices corporate social responsibility Eramet Norway by ensuring that: as a committed • Our clients receive their products on time and of the corporate citizen Robust industrial regions expected quality SHAREHOLDERS SOCIETY Our operations influence, or are influ- Eramet Norway believes it is important to facilitate enced by, many different aspects and community development and ensure robust industrial • Our employees have a sense interests. There is an expectation in communities. To be located in, and operate from, rural of security and predictability today’s information society that we take communities come with some challenges that must for themselves and their an active role as employer, supplier, be balanced in order for companies to be profitable. In families partner and committed and contributive addition, the local communities and regions must be citizen in order to maintain our position robust. • Our shareholders receive EMPLOYEES NEIGHBOURS as a world-leading Norwegian industrial an expected yield on their company. This robustness is characterised by: invested capital

It is essential to have a good reputation An equitable and stable • Our environmental impact in order to be viewed as an attractive welfare service • is kept to the absolute workplace, partner, and supplier. It is also • A competitive, profitable and a prerequisite to be a company wanted adaptable commercial sector minimum in the future. • Good access to skilled labour CUSTOMERS SUPPLIERS • A diversified labour market, • Our suppliers have a Eramet Norway is dependent on a good accommodation and services demanding customer framework to be able to promote and expand our industrial operations in Nor- A requirement for further development of our competi- • We take the initiative to make way, and this requires excellent commu- tive status is that the communities around us function changes in response to our nication with the relevant stakeholders, well and meet the conditions of robust industry region. surroundings authorities and community partners.

18 ERAMET NORWAY SUSTAINABILITY REPORT 2019 19 ABOUT MANGANESE

Where to find manganese?

There are large deposits of manganese on a global basis and the earth's crust contains approximately 900 ppm, which makes it the most common heavy metal after iron. Manganese is recovered primarily from the mineral pyrolusite

(MnO2), commonly known as ore.

More than 80 percent of manganese deposits are located in South Africa and Ukraine. Other important deposits are located in China, Australia, Brazil, Gabon, India and Mexico. In addition, manganese occurs on the seabed as nodules in deep oceans.

Eramet Norway uses primarily ore from the ERAMET partly-owned mines in Gabon, as well as ore from suppliers in South Africa. The plants in Norway reco- ver the manganese and process it into ferromanganese and silicomanganese alloys. Eramet Norway exports all its production of manganese alloys, primarily to markets in Europe and North America, and the vast majority of our products WHAT IS is transported by boat. MANGANESE?

Located in group 7 of the periodic table, manganese is a metallic element with a steel-grey colour when pure. We are one of the world's Manganese is hard, but is readily pulverised, and it is essential for making steel ductile and durable. cleanest manganese alloy producers.

20 ERAMET NORWAY SUSTAINABILITY REPORT 2019 21 THE IMPORTANCE OF STEEL

The importance of steel in a zero emission society

The world requires a drastic reduction of emissions to air and water in order to prevent major changes manganese to the world's climate and significant loss of bio- manganese ore steel alloys diversity. However, even though the production of steel and manganese alloys is resource-intensive, these products are crucial for society's zero emission vision. Steel is 100 percent recyclable Main usages for steel and can potentially be recycled indefinitely without losing its properties.

Steel, and the manganese alloys reduce the negative effects of natural North America, approximately 80 per- used to make steel ductile and catastrophes. cent of steel is currently being recycled. durable, is currently one of the The consumption of steel has increased world's most used construction Approximately 10 kg of manganese sevenfold since 1950, and it is expected materials in everything from alloy is used to produce one tonne of that by 2050, the use of steel will incre- energy and industrial installations steel. Almost 90 percent of the world's ase by 50 percent compared to today's to buildings, transport systems, total manganese alloy production is levels*. cars and household appliances. used in carbon steel, which is highly va- lued due to its durability and resistance Steel and manganese are crucial Steel is therefore an essential factor to torsion. components in order to achieve the connected to economic develop- goals of the green paradigm shift and ment and prosperity in order to meet Steel is 100 percent recyclable and can satisfy the zero emissions vision. the many challenges associated with potentially be recycled indefinitely population increase, urbanisation, without losing its properties, and in our * Worldsteel Association: Sustainable Steel combating poverty and initiatives to major markets, Europe and – At the core of a green economy, 2012

22 ERAMET NORWAY SUSTAINABILITY REPORT 2019 23 OUR PRODUCTION PROCESS

Production of manganese Our most important alloys and consumption raw materials Eramet Norway uses significant quantiti- of raw materials es of raw materials in its production every year. These raw materials come from both foreign and domestic suppliers, and they are mainly: Coke Carbon as • Manganese ore, with Eramet having Ore reducing access to its own mine in Gabon via Manganese agent its part-owned company, Comilog source • Metallurgical coke • Quartz and limestone Slagging Gives slag better viscosity (fluidity) and enables correct Other inputs chemical composition for World-class obtaining optimal manganese Other important factor inputs are reduction electrode paste and metallic silicon sources. During the smelting process, technology a number of internal products are manufactured, transferred internally THE MANGANESE PROCESS (FeMn) Electrodes or between the plants in order to be Eramet Norway has a century of experience in manu-

MnO2 (manganese) CO as resource efficient as possible. facturing manganese alloys. This knowledge base, Supplies the process with ele- C (coke) CO2 ctrical energy – equivalent to Surface developed over generations, is Eramet Norway’s most the consumption of 20,000 important asset. It is this expertise that has made households Energy consumption the company a leader in smelting and refining

2MnO2 + CO = manganese alloys. Temperature in Mn O + CO Furnace charge: 200 0C 2 3 2 The combined electrical energy cons- Able to withstand extremely umed in the smelting processes, includ- Today, the refining process is an advanced, highly 3Mn2O3 + CO = O high temperatures – more than 2,000 C Temperature in 2Mn3O4 + CO2 ing auxiliary power, was 1,970 TWh in 2019. technological process that few other countries in the charge: 400 0C The required amount of natural gas and world are able to emulate. From the time an optimal

Mn3O4 + CO = propane used as thermal energy sources mix of ore and coke is blended and sent to the furnace, Temperature in 3MnO + CO charge: 800 0C 2 amounted to almost 720 tonnes. Eramet and until the crucial refining process has been comple- Norway is also one of the country’s largest ted, precision and experience are essential. With the aid consumers of industrial gases, particularly of an advanced control system, every stage of produ- 0 Coke 1 250 C MnO + C = Mn + CO liquid oxygen, in production processes. ction is monitored in detail, and the laboratories take Slag samples at regular intervals to test quality. Metal layer 1 400 0C

957 772 233 459 92 263 13 531 1,970 TWh 720 TONNES OF MANGANESE ORE TONNES OF METALLURGICAL TONNES OF QUARTZ TONNES OF ELECTRODE OF ELECTRICAL ENERGY TONNES OF NATURAL GAS PASTE CONSUMED FOR THE AND AUXILIARY POWER AND PROPANE SØDERBERG-ELECTRODES

10 ERAMET NORWAY

24 ERAMET NORWAY SUSTAINABILITY REPORT 2019 25 GLOBAL MARKETS

Our company in a global market

The process industry in Norway has more than 100 years of history and remains strong even though it is competing in the global market. Our success is based on decades of continuous focus on skill development, improvement and change, and harvesting the benefits of economies of scale and increased efficiencies in our processes, from the purchasing of raw materials, through production, to the sale of finished products.

Globalised purchasing Our purchasing

Like our finished goods, the raw ma- systems within the ERAMET group guidelines: The ERAMET Anti-corruption terials and products that we purcha- handle purchases of about NOK 12 group has a firm se are exposed to global competition, billion annually. The ERAMET group has a firm stand All forms of corruption are strictly for- and we remain active participants in • Climate Change Policy stand against against corruption, and all countries bidden. Corruption is a risk against the markets on all the continents in order Sustainability • Responsible Purchasing Charter corruption in which the group operates have group, both judicially, financially and to locate the best and most cost-effe- requirements • Eramet Group's Ethic Charter established anti-corruption against the corporation in general, as ctive products. • Group Energy Policy legislations. well as for its reputation. There are strict requirements to be • Biodiversity Policy The ERAMET group aspires to be a what ERAMET defines as a business • Group Health Policy The ERAMET Executive Committee The group work continuously to clearly leader in all stages of its operations partner of choice, and the purchasing • Group Sustainable signed an anti-corruption directive in demonstrate its ethical corporate cul- and has created a ‘Lead Buyers’ system department is no exempt. In addition Development Policy the autumn of 2018, and developed ture in all operations, and the Interna- for critical goods and major purchase to the regulations and legislations of • The Environmental Charter clear guidelines on anti-corruption tional Anti-corruption Day was marked categories. The system operates across the various countries where we ope- and ethics. A comprehensive training on the 9th of December across the all units in the group, and the objective rate, we must also observe a set of in- module on anti-corruption and ethical corporation. The information cam- is to assemble buying power, know- ternal guidelines, which are the core of For more information, please guidelines is available for all ERAMET’s paign, which was presented by email ledge and understanding of the mar- our work to secure a sustainable profile. visit the group's website: employees. and on information screens across our ket, in addition, to ensure transparency In addition to challenging ourselves to www.eramet.com locations, consisted of animations, and involvement in our purchasing become better, we also challenge all posters and a video message from processes. Today 15 ‘Lead Buyer’ our suppliers. Ms Christel Bories, CEO, ERAMET.

26 ERAMET NORWAY SUSTAINABILITY REPORT 2019 27 SUSTAINABILITY AS A PRODUCT

Sustainability as a product – marketing of our climate footprint

Due to the increasing pressures from authorities, investors and consumers to reduce climate footprint, we believe there is only a matter of time before the markets will ask their suppliers to document their contributions.

Eramet Norway

renewable efficient advanced energy production cleaning One of the world’s processes systems greenest of manganese producers Eramet Norway is one of the world’s competence development to improve we aim to implement this within greenest producers of manganese our processes and operational proce- the next few years. alloys due to access to renewable dures. As a company, we have a strong energy, efficient production proces- commitment to our planet and to We believe that the environmental ses and advanced cleaning systems. people, while acting as a responsible challenges we face as a society and economic partner, and we produce the state of our planet will soon require Eramet Norway is one of the world’s useful products for the future carbon increased transparency through the greenest producers of manganese neutral society in a resource entire value chain. As a green produ- alloys due to access to renewable efficient way. cer of manganese alloys, we want to energy, efficient production processes ensure that this information is easily and advanced cleaning systems. In While we have yet to develop a consis- accessible for our markets. addition, we have a continuous focus tent method and clear strategy for pro- on research and development and viding this information to our markets,

28 ERAMET NORWAY SUSTAINABILITY REPORT 2019 29 UN SUSTAINABLE DEVELOPMENT GOALS

Sustainable Development Goal no. 9: "Industry, innovation and infrastructure" Build resilient infrastructure, promote Sustainable inclusive and sustainable industrialisation and foster innovation. Development Goals Eramet Norway contributes to this goal through the production of manganese alloys which are essential components in high-quality steel, and steel is required for infrastructure and new industrial operations. lead the way Eramet Norway also contributes to economic growth based on sustainable industrialisation through research and development in order to continuously create cleaner and more environmentally friendly production technology. Infrastructure must be upgraded steadily in order to meet the future challenges associated with sustainability. UN Sustainable Innovation and prioritising science and technology are Development Goals requirements for sustainable industrialisation and reflect three dimensions: economic growth. • Climate and environment Economy • The Sustainable Development Social conditions • Goals adopted by all United Nations Sustainable Development Goal no. 12: "Responsible member states provide a shared consumption and production" Ensure sustainable blueprint for people and the planet consumption and production patterns. to eliminate poverty, fight inequality and stop climate change before 2030. Eramet Norway contributes to this goal through research Sustainable development entails and development and continuous improvement to reduce addressing the needs of people living resource consumption and emissions. Technological today without reducing the ability for solutions and work processes must always improve to future generations to meet theirs. become more resource efficient through recovery and Eramet Norway's recycling of energy streams and materials, as well as handling of chemicals. Responsible consumption and work connected to production involves doing more with less: reduce resource sustainability primarily use, avoid climatic emissions and limit adverse effects on focus on the following goals: the environment while creating economic growth.

Sustainable Development Goal no. 8: "Decent work and economic growth" Promote sustained, inclusive and sustainable economic Sustainable Development Goal no. 13: “Climate action" growth, full and productive employment and decent work for all. Take urgent action to combat climate change and its impacts. Eramet Norway contributes to this goal by having a good ethical framework and a strong focus on health and safety for all who work for Eramet Norway contributes to this goal through us. Our procurement processes ensure that suppliers are carefully development and implementation of new technology evaluated to protect human and employee rights, the environment and that facilitates the use of other raw materials, in addition other requirements that we have determined. By signing a contract with to the reuse and capture of CO2. We are also working to us, suppliers commit to provide information on their own subcontractors achieve increased energy utilisation through continuous so that we can have insight into the entire value chain. Norway has a improvement of our process performances and operational well-functioning three-party-collaboration between government activities, as well as developing new solutions for energy authorities and employee- and employer organisations, as well as a recovery and utilisation. comprehensive workers rights legislative framework, which together ensure inclusive and sustainable economic growth.

30 ERAMET NORWAY SUSTAINABILITY REPORT 2019 31 CLIMATE AND ENVIRONMENT

Climate and environment Vision Strategic The world´s leading goals – our direction producer of refined We shall be the most manganese alloys enviromentally and climate friendly Our plants have been in operation through empowement, producer in our for more than 100 years, and we are an innovation and job Eramet Norway's vision is to industry integrated and active contributor to satisfaction our local communities. As an industrial be among the world's company located in Norway, we operate in accordance to strict national laws and most effective producers requirements, and our emission permits Long-term goals (2030): are closely monitored and reviewed in collaboration with the Norwegian of manganese alloys. authorities. During recent years, climate and environment have received more In this report, we present our goals, in addition to international attention through for important processes and projects within our roadmap, example the United Nations 17 categorised according to the following goal areas: Sustainable Development Goals and Climate, energy, environment and circular economy. Climate Energy Environment Circular Economy at top-level climate meetings. We shall reduce our We shall increase our We shall avoid negative We shall increase our resource

CO2 emissions by at least energy recovery by at environmental efficiency through value creation As part of the ERAMET group, we are 43% before 2030 and 80% least 27% before 2030 effects in the local associated with by-product and also committed to the group’s roadmap before 2050 against the against the reference communities in which waste materials, as well as reduce for corporate social responsibility (CSR), reference year 2005. year 2005. we operate. waste deposition of materials by which is based on the Sustainable 50% before 2030. Development Goals. The roadmap focuses on the following areas:

Energy recovery Energy recovery Energy recovery Energy recovery

C0-gas sales C0-gas sales C0-gas sales C0-gas sales

Bio-reductants Bio-reductants Bio-reductants Bio-reductants

Pre-reduction Pre-reduction Pre-reduction Pre-reduction

Roadmaps describing key development projects for each of the goal areas are updated annually.

Eramet Norway's strategic goals • Increased stability and process • Increased attractiveness which are based on the view that having efficiency in our production processes provides enhanced possibilities for a leading position in climate and future recruiting of competent and environmental matters increases our • Increased revenue through circular motivated employees, as well as competitiveness and strengthens the economy solutions for by-products collaboration with external networks Commitment Commitment Commitment company's profitability in the long and waste materials to people to economic to the planet term through: • Access to financial support and responsibility • Reduced environmental related arrangements for R&D and • Better utilisation of our most costs, for instance associated with investment projects important raw materials: ore, quota costs and fees reduction agents and energy

32 ERAMET NORWAY SUSTAINABILITY REPORT 2019 33 CLIMATE

Climate

A global agreement was reached at the 2015 United Nations Climate Change Conference in Paris, COP21, to limit the global warming to well below 2 oC compared to pre-industrial levels, with the aim to limit the temperature increase to 1.5 oC. Eramet Norway’s long-term climate goal The agreement also calls for zero net anthropogenic We shall reduce CO greenhouse gas emissions to be achieved during 2 the second half of the 21st century. These international emissions by at least goals were the basis for establishing Eramet Norway’s 43 percent within 2030 roadmaps and long-term climate and environment goals. and 80 percent within 2050, compared to the reference year 2005.

CO2-emission per sellable ton of production

2,0 1,44 1,49 1,47 1,50 1,47 1,8 1,6

1,4 0,82 1,2 1,0 0,8 0,6 0,29 Status climate emissions 0,4 Eramet Norway’s climate 0,2 emissions have been stable during the last years. Our climate

2005 2016 2017 2018 2019 2030 2050 roadmap describes our priority projects to succeed in achieving our long-term goals. Reference year

Historical development

Goal 2030 and 2050

34 ERAMET NORWAY SUSTAINABILITY REPORT 2019 35 CLIMATE

R&D Focus Areas Projects

In 2017, we assessed potential measures to reduce CO emissions by criteria such Industrial trials have demonstrated a potential for reducing IPN Pyrogass: The Norwegian 2 • as effectiveness and implementability. This initial study formed the basis for our climate emissions by optimising the composition and mix of Research Council’s innovation project further R&D efforts, and the «Multi Criteria Decision Analysis» model (MCDA) has raw materials. for development of bio-carbon adapted been applied to define our priorities. R&D studied potential impacts of possible to Mn-production solutions in the short-, mid- and long-term range: Eramet Norway is developing new bio-carbon qualities in • KPN BioCarbUp: The Norwegian collaboration with research institutions, academia and Research Council’s competence project Five-year perspective: suppliers. The new raw materials must be adapted to our for development of bio-carbon in Reduce carbon consumption through promoting the uses of resource and production processes. In parallel, we aim to develop a pilot metallurgical industry energy saving chemical reactions, under the term «pre-reduction», in existing facility to test available bio-carbon qualities, prepare further KPN Reduced CO : The Norwegian • 2 furnaces. implementation and increase the share of bio-carbon used Research Council’s competence at our plants. project to reduce CO2 emissions in Ten-year perspective: metallurgical industry • Introduce a significant share of non-fossil or bio-carbon Regarding pre-reduction, we are considering new technology • EU Horizon 2020 PREMA: Develop Capture CO through Carbon Capture and Storage (CCS) or Carbon Capture • 2 concepts in parallel with implementing our existing knowledge process to increase resource and and Utilisation (CCU) through the NewERA project in a three to five year perspective. energy efficiency

Concerning CO2 capture. Climit Eyde CO Tek: Explore CCS Long-term: • 2 technologies for the process industry Develop ground-breaking technologies which may require a total business Eramet Norway has two main strategies: Danish cooperation project, Waste transformation • to Bio-carbon: Development of 1. As a part of the Eyde Cluster CCS initiative, we aim to identify bio-carbon adapted to Mn-production Our R&D approach will vary across the different areas, from engineering concrete the best suited capture technology and determine the ENO NewERA Program: solutions for implementation to “blue-sky” investigations of less mature • conditions for a major scale development through a carbon Development and implementation technologies. Main initiatives and plans in our climate reduction roadmap are capture pilot in Sauda of new climate and energy technology showed below. for Eramet Norway 2. Together with relevant industrial partners, we are exploring potential new value chains with options for utilising furnace gas 2020 2021 2022 2023 2024 2025 2030 2040 2050 We are also assessing ground-breaking technologies together with Eramet IDEAS and in cooperation with Rawmaterials external competence institutions.

Biocarbon

NewERA/Pre-reduction

CCU

CCS

Disruptive technologies

R&D/Pilot Project development Implementation

36 ERAMET NORWAY SUSTAINABILITY REPORT 2019 37 CLIMATE

The Eyde Cluster Bio-carbon CCS initiative

Eramet Norway decided to prepare a An implication of the low carbon pilot facility to test the replacement of economy is a higher demand for fossil reducing agents with bio-carbon products with a small total carbon at Furnace 10 in Porsgrunn. Hence, footprint, in other words considering during 2019 we conducted a pre- the footprint from both production feasibility study to examine how to and use. Norwegian process industries handle bio-carbon materials through are, and will continue to be, capable the production process. of supplying this demand with new, increasingly clean and innovative As a mature manganese smelter is not products and processes. designed to handle structurally weak raw materials as bio-carbon, we need Carbon capture and storage (CCS) is to upgrade our material fundamental in order to achieve the transportation systems to avoid goals set in the process industry’s negative environmental impacts. In roadmap; the goal is to reduce more

2020, we aim to develop a complete than half of the industry’s CO2 emissi- project and the plan for the test phase, on. In order to be able to deliver this, it followed by an application to obtain is crucial that the industry itself has a financial support from Enova. deep understanding of the potentials Based on results from the first postponed to the third project phase, which is now ongoing with and pitfalls of capturing CO2 sources. project phase, it was decided to Our goal is to be ready to carry out Because each site is unique with indivi- continue to the next phase with the the ollowing goals:

tests with commercially available dual combinations of CO2 concentrati- following goals: Describe the specifics of a scaled Qualify CO catch technologies bio-carbon in 2020/2021. A major ons, temperatures, other emissions and • • 2 for the two pilot test sites at Eramet introduction of bio-carbon represents process heat availability, the project CO2 capture pilot project designed for a significant change to the process “Eyde CCS Initiative” was established in verifying technologies which fit Norway Sauda and Returkraft and needs to be thoroughly planned. 2018. industrial plants • Describe plan for integrating Increase the number of project CO catch pilots at the two plants Industrial testing is vital to gain the • 2 knowledge required to further our The overall project goal is to install two partners and write an application for • Prepare a CLIMIT-application to R&D efforts towards the 2030 goals. carbon capture pilots within 2022 and a three-year project for pilot testing of Gassnova for installation of the CO2 catch pilot plants to select technology for a permanent suited CO2 capture pilots

CO2 catch solution, based on solid research, within 2024. After the required information was col- As a part of the project, the Eyde lected, the steering committee agreed CCS Initiative also collaborate with The partners are the Eyde Cluster, to establish two pilots, one at Eramet “The Northern Light project”, a

SINTEF Industry, SINTEF Energy Norway Sauda and one at Returkraft. European CO2-network aiming to Research and the industrial companies develop a complete solution for the

Elkem, Eramet, Returkraft, Alcoa and In order to develop a complete transportation and storage of CO2 Saint-Gobain. The project is organised application for a pilot installation, we in underground reservoirs in the in four phases and is supported by had to include a sub-project to make .

Gassnova. the final selection of CO2-catch technology and suppliers. A more Results from the first project phase complete overview of capex and opex,

are presented in the report “CO2 and physical meetings with technology capture potential in the Eyde Cluster”, demonstrations were therefore available through NCE Eyde required. Hence, the final selection of (https://www.eydecluster.com/no/). technology for the two plants was

38 ERAMET NORWAY SUSTAINABILITY REPORT 2019 39 ENERGY

Energy

As a major consumer of renewable electrical energy, more efficient use will benefit both us and the society as a whole. While energy transformation may be the

biggest climate challenge for Eramet Norway’s long-term the world today, for us efficient energy utilisation goal: energy utilisation is about We shall increase improving our competitive energy efficiency by power. We will strengthen our at least 27 percent focus on energy management within 2030, and at the same time prepare compared to the projects that will significantly reference year 2005 increase value creation and improve our energy position.

Net el.consumption per sellable ton of production (KWh per ton) 2 809 2 931 2 706 2 614 2 852

3 500 2 050 3 000 2 500 Status Energy utilisation 2 000 The diagram indicates that the 1 500 energy utilisation varies from 1 000 year to year. The main explanations 500 are variations in the sales of CO gas to Yara in Porsgrunn and 2005 2016 2017 2018 2019 2030 the maintenance pattern at the thermal power plant in Kvinesdal. Increased energy utilization is also Reference year vital for global reduction of climate emissions. Historical development

Goal 2030

40 ERAMET NORWAY SUSTAINABILITY REPORT 2019 41 ENERGY

R&D Focus Areas The NewERA-

Through previous mapping of energy flows, we have identified two areas with project Sub-projects: Main goals: significant energy efficiency potentials: • Energy recovery: The furnace • Increase energy utilisation by at The NewERA project focuses on the gas from the smelter in Sauda is least 250 GWh, which equals the usage development and implementation of 1. Energy consumption in the furnace process today mainly flared. The plan is to of 10 000 households climate and environmentally friendly run the gas through gas engines to • Improve furnace process stability technology with a significant energy 2. Chemical energy in the off-gas generate electrical energy for external and reduce specific energy saving potential. The project is a vital sales, and thermal energy for internal consumption in the FeMn process part of Eramet Norway’s roadmap for We are studying energy saving chemical reactions in the furnace, in particular or external use. by at least 6 percent climate and environment. pre-reduction. In addition, we aim to increase the usage of furnace gas, e.g. • Ore quality: The thermal energy • Reduce the specific carbon through energy recovery into electricity, use of heat for pre-treatment of raw from the energy recovery process is consumption, thus CO2 emissions per Through this project, materials and other internal purposes. Together with external partners, we are planned for reducing moisture in the ton produced, by at least 2 percent, we will achieve: also exploring options linked to production of new products (CCU). ore. Next, the dried ore will be shifted to about 7000 tons per year, which equals • Increased process efficiency: Lower reduce the level of ore fines introduced the carbon emissions from 3500 cars specific consumption of electrical Eramet Norway is involved in several cooperation projects on pre-reduction. at the furnace. • Facilitate sustainable handling of energy and reducing agents, also We aim to implement knowledge gained through the last decade through the • By-products and waste materials: by-products and waste materials supporting increased level of NewERA project, see pages 43 and 44. Drying the ore will generate fines that production will be briquetted together with fines • Expansion of circular economy from the metal crusher, filter dust 2019 2020 2021 2022 2023 2024 2030 2040 2050 solutions: Higher utilisation of energy from the cleaning systems and and raw materials, increased value sludge, which today is being creation stored in deposits. NewERA Energy recovery • Lower climate and environmental NewERA/Pre-reduction footprint: Less emissions and reduced Climate and need for deposits CO-gas sales environmental footprint Shore electricity Circular ISO 50001 Energy management economy NewERA

R&D/Pilot Project development Implementation

Collaborating with Sauda Fjernvarme Process Eramet Norway Sauda is cooperating with Sauda Fjernvarme, efficiency a local company, to expand the utilisation of waste energy from the Sauda plant. Our full-scale energy recovery project will significantly increase the potential local value Projects: creation and Sauda Fjernvarme will actively search for • SFI Metal Production: the Research Council of Norway for research possibilities to increase remote heating and use of thermal based innovation energy for new ventures. • EU Horizon 2020 PreMa: Development of process for improved resource and energy efficiency Eramet Norway and Sauda Fjernvarme are partners in • FME HighEFF: The Research Council of Norway for a Centre for the project Grønn vekst (Green growth), partly funded by Environment-friendly Energy Research (FME) Innovation Norway. The project’s objective is to develop • NewERA Energy Recovery Unit (ERU). Part of the NewERA project new industrial activity, increase value creation and create new jobs in Sauda.

42 ERAMET NORWAY SUSTAINABILITY REPORT 2019 43 ENERGY

NewERA Energy Recovery- The pilot gas engine is ordered

The gas engine pilot project with a Capex estimate of NOK 50 million was approved in 2018. Based on offers received during the first part of 2019, we signed a contract with the international company Clarke Energy. The plan is to start installation of a 1.5 MW gas engine in Sauda during the autumn of 2020 and the testing period will start in early 2021. The further planning of a full-scale expansion is pending results.

Enova has supported the gas engine pilot in Sauda through its industrial pilot program. Shore electricity

In June 2019, Enova awarded us a calculated an annual reduction of

significant grant for the installation more than 900 tonnes of CO2. At full of shore electricity facilities at Eramet capacity utilisation, this will give an Norway’s plants in Porsgrunn, Sauda annual reduction of around 2000

and Kvinesdal, and ERAMET’s plant in tonnes of CO2, which equals one Tyssedal, TTI. The purpose of the thousand cars. Other positive project is to supply renewable energy environmental effects are: to ship docked at our quays, thus • reduction of local pollution: stimulating the replacement of fossil Particles, NOx and SO2 fuels like diesel and heavy oils. • reduction of noise linked to All our plants transport the majority quay operations of its raw materials and finished goods by sea, with more than a thousand The plan is to complete these ships arriving at the Norwegian sites installations at the Norwegian every year. With a 50 procent utilisation Eramet sites within 2020 and 2021. of the estimated potential, Enova has

44 ERAMET NORWAY SUSTAINABILITY REPORT 2019 45 ENERGY

Eramet Norway Kvinesdal power plant.

Energy Balance 2019

Eramet Norway’s three manganese product alloys. However, the energy to commercial reasons terminated in alloys smelters are all ISO 50001 content in our reducing agents are May, causing a significant negative certified and fully focused on included with a total of 1.92 TWh in our impact. On the other hand, hot water systematic energy management to energy balance sheet. deliveries to Stolt Sea Farm in Kvines- strengthen the sustainablity aspect dal, the compressor heat recovery in of our energy intensive operations. Energy in products and energy Porsgrunn and the gradually increa- recovered for other purposes sing use of furnace gas for heating Our energy consumption can be With a sellable production of 523 000 of refractories, buildings and heating divided into three main groups (see tons of Mn-alloys in 2019, our provided externally in Sauda are below), in which «electrones» and calculations indicate that 1.93 TWh is all good contributions to our «hydro-carbones» each represents 47 «baked into» our refined and standard overall energy recovery record. and 46 percent respectively, which products of FeMn and SiMn, equaled a total of 4.2 TWh in 2019. The corresponding to around 46 percent Our challenge remaining share is linked to the energy of the total energy introduced into our As a residual, we have almost 1.8 TWh content of metallics (Si and Mn) used in production processes. as «energy loss» in 2019, as in 2018. Our our furnace and refining processes. energy management teams, one per Our challenge is to recover a higher plant, are working systematically to Energy consumption percentage and use surplus energies increase our energy recovery. Based The consumption of electrical energy, in heat flows, e.g. in water and air. In on regular mapping and prioritation smelting and auxiliary power, a total 2019, the recovered energy amounted of energy aspects, we create annual of 1.97 TWh in 2019, consists of 0.56 to ca 0.51 TWh, 12 percent of the energy improvement plans with TWh, 0.70 TWh and 0.70 TWh for the provided. The corresponding figure for improvements ranked by potential smelters in Porsgrunn, Sauda and 2018 was 0.65 TWh and 15 percent. benefit and investment requirements. Kvinesdal. Coke and anthracite are Naturally, our locations also have an primarily used as reducing agent in The net energy recovery of the Eramet impact of the demand for and usage our furnaces in order to transform the Norway Kvinesdal power plant was 69 of our of recovered energy. oxydic manganese in the ore to GWh. Deliveries of furnace gas to Yara’s metallic manganese as in our end- ammonia plant in Porsgrunn was due

Energy Balance Eramet Norway 2019

Energy in products: Electric energy: 1 928 GWh 47 % 46 % 1 970 GWh Company activities and Carbon materials: processes Recovered energy: 1 924 GWh 46 % 4 218 GWh 12 % 509 GWh 100% Metallic sources: 42 % Energy loss: 324 GWh 7 % 1 781 GWh

46 ERAMET NORWAY SUSTAINABILITY REPORT 2019 47 ENVIRONMENT

Our smelters are located in vibrant communities, close to neighbours and Environment Eramet Norway’s beautiful landscapes, which put extra long-term environmental goal: Status environmental pressure on our environmental behavior, emissions: We shall avoid negative especially linked to emissions of dust Data on emissions per plant environmental impacts and noise levels. Major strides have been are presented in pages 67-69. to the societies where we made since the 1950s benefitting both are located – no breach employees, local communities and the of permits environment.

During the last few years, all our emission permits have been renewed with lower emission rates as expected due to increased climate and environmental challenges worldwide. Eramet Norway takes its corporate social responsibility seriously, and we continue our efforts to further reduce our environmental footprint for the benefit of both ourselves and our surroundings.

R&D Focus Areas

As a part of our R&D work, our goal is to reduce fugitive emissions and emissions of Polycyclic Aromatic Hydro-carbons (PAH). Our most innovative development projects are developed in cooperation with research institutions, while continuous improvement efforts are Projects: implemented by internal resources at the plants. • SFI Metal Production Centre for Research-based Based on systematic mapping of fugitive emission sources, the R&D Innovation (SFI) department develops flow models and carries out testing of numeric IPN PAHssion The Norwegian solutions. This method gives us data on efficient solutions with as little • Research Council’s innovation as possible “trial and error”. project for PAH measurement IPN DUDes PAH free electrodes are examined in our laboratory and then tested in • The Norwegian Research an industrial setting to identify the needed adjustments. Council’s innovation project for fugitive emission measurement We are also focusing on the development of monitoring methods and RFF ENSENSE measurements models with respect to both fugitive emissions and • Regional research fund project PAH, mainly in cooperation with external research and competence for air quality control institutions.

48 ERAMET NORWAY SUSTAINABILITY REPORT 2019 49 ENVIRONMENT

Installation of new environmental filter in Kvinesdal

New environmental filter in Kvinesdal

In 2019, the three SiMn furnaces at and fugitive dust emissions, with an environmental performance. The the Kvinesdal plant were encapsulated expected reduction of 7 tonness per project was successfully completed and an extra environmental filter was year. The new environmental filter without any injuries. In order to identify installed to reduce the dust emissions is in accordance with existing BAT- further improvement potentials with to the surroundings. As a part of the requirements («Best Available respect to dust emission outside the project, measures were also taken to Technology»), and the results will furnace operations, a thorough study reduce plant energy consumption by be monitored and followed up in was conducted. In 2019, this study using the air which has a temperature cooperation with the Norwegian triggered a continuous environmental of about 50°C to pre-heat the Environment Agency and our improvement effort. A task force with electrode mass. plant´s neighbours. personnel from different departments cooperates closely to assess, decide The purpose of the project was to The project total capital expenditure and implement and this work will ensure optimal cleaning of the air was NOK 35 million. Several suppliers continue in 2020. One of the focus emitted from the three furnaces. This were involved in the project areas will be to improve the monitoring project lead to an increase in the total execution phase, and the furnaces of leakages and emissions by the use of capacity for cleaning of furnace gas were fully operational, hence, good CCTVs. There is also an aim to test and and dust from tapping and casting communication between plant improve online measurements of both activities to 450 000 m3 per hour. This operations and the project teams was channeled and fugitive emissions from has a positive effect on both channeled required, focusing on safety as well as the furnace buildings.

50 ERAMET NORWAY SUSTAINABILITY REPORT 2019 51 ENVIRONMENT

Dust spreading is influenced by particle characteristics, meteorology and topography.

Configuration of instruments and measurement methodology

Study of dust levels and air quality in Porsgrunn

Eramet Norway Porsgrunn decided Knarrdalstrand. Measurements from PM2.5 and PM10. There are also air In parallel with the air quality study, in 2019 to perform a thorough novel this station show results for particulate quality criteria are recommended for Eramet Norway Porsgrunn performed study to examine the content and matter (PM2.5 and PM10), which are other elements. a thorough mapping in order to amount of dust in surrounding air and below the criteria for air quality, except identify potential improvements with downfall. The study was conducted for the spring period, where the Previous measurements made by respect to reducing plant dust in cooperation with Yara and the increases are assumed to be due to NORCE in 2017 and 2018 confirmed emissions. These two initiatives will independent research institution road dust. that there were no breeches of the be coordinated to develop an updated NORCE. The plan for the study was limit values of PM2.5 and PM10 in environmental action plan together created on the request of the The study was approved by Mdir in these years. The preliminary results with Eramet Norway’s R&D Norwegian Environment Agency early 2019. The measurements were of the 2019 measurements indicates department. (Miljødirektoratet, Mdir), based on taken with three instruments, which no breeches as well. Eramet Norway measurements and data collected by have never before been used in considers this as a good, although Eramet Norway and NORCE in 2017 combination, at two different locations preliminary result. The final report is and 2018. in the period from July to November expected to be issued in the second 2019. quarter of 2020. In Norway, local air quality is monitored by permanent measurement stations Current air quality regulations are When the study is completed, NORCE in selected municipalities. In based on EU’s air quality directive. No will present the results to neighbours, Porsgrunn, several such stations are limits for downfall are included in the the Porsgrunn municipality and Mdir. controlled by local municipal regulations, however limits are authorities, where of one is located in established for particulate matter,

52 ERAMET NORWAY SUSTAINABILITY REPORT 2019 53 CIRCULAR ECONOMY

Eramet Norway Sauda. Circular Economy

For us, circular economy is about utilising all resources in the best possible way throughout the entire value chain as we handle millions of tons of materials in our production processes annually. Through knowledge development, continuous improvements and targeted investment projects, we aim to optimise our own processes Eramet Norway’s long-term goal: to utilise purchased raw materials and energy to a larger degree and We shall improve resource reduce emissions and depositing. efficiency by increasing value creation linked to by-products and waste materials and In order to achieve higher resource efficiency, we envision new value chains based on by-products and reduce level of depositing by waste materials. This will also include expanding the 50 percent within 2030. potential for increased value creation in the interface between us and other industrial stakeholders, funding institutions and knowledge communities.

Volume of sludge to deposits 41 145 39 817 35 813 28 816 31 892

45 000 573 20 40 000 30 000 25 000 20 000 15 000 Status Circular Economy 10 000 Deposited sludge volumes show 5 000 a reduction during the last years. The main reasons are maintenance stops in Kvinesdal in 2018 and 2019, 2005 2016 2017 2018 2019 2030 and improved process and cleaning conditions in Kvinesdal and Porsgrunn Reference year

Historical development

Goal 2030

54 ERAMET NORWAY SUSTAINABILITY REPORT 2019 55 CIRCULAR ECONOMY

R&D Focus Areas

Eramet Norway’s R&D department aims to develop alternatives to depositing, focusing sludges, which today amounts to the biggest volume by far. In parallel, we are exploring new applications for by-products, balancing value creation and sustainable operations. To assess the impact of our solutions, we need to connect with relevant academic communities and conduct life-cycle analysis (LCA).

2019 2020 2021 2022 2023 2024 2030 2040 2050

Recirculation "Eirich Mixer"

NewERA Agglomeration

Silica Green Stone

R&D/Pilot Project development Implementation Silica Green Stone product development

Samarbeidsprosjekter We consider two main directions with regards to reuse of sludges, The slag from SiMn production is one high temperature makes it a clean main reasons why one million species (delfinansiert av det offentlige): dust and fines: of Eramet Norway’s main by-products. and applicable by-product with high are endangered. Huge land areas are In 2019, we obtained the trademark resistance and durability. Thus, Silica earmarked for quarries, untouched EU EIT Raw Materials Go-4-0: “Silica Green Stone” (SiGS). We hired • 1. We plan to produce pellets using sludge and dust in a high-intensity Green Stone is a stable and strong nature disappears and the change is EU financed project, in cooperation the consulting company Bergfald mixer in our Kvinesdal smelter. First step is to build a test station in 2020 product consisting of natural minerals irreparable. with Eramet IDEAS Miljørådgivere to compile a number in order to obtain knowledge and technical data required for a future as calcium and silicon. The product is EU EIT Raw Materials GUCCIs: of previous tests and analyses and • up-scaled facility. We will apply for financial support from national gleaming, green and hard, comparable By using Eramet Norway’s Silica Green complete a report to compare Silica EU financed project, new software to natural volcanic rocks. Silica Green Stone instead of producing substitute funding agencies. Green Stone product characteristics for life cycle analysis (LCA) Stone does not contain organic pollu- products based on virgin resources, EU EIT Raw Materials GREENY: with other virgin or reused materials. • 2. We work to develop a briquetting process, using fines from manganese tants and the content of heavy metals natural areas will be saved and EU financed project, characterisation is below the values occurring naturally emissions of greenhouse gases, dust, sources and other products in the mix. Test briquettes have already been Eramet Norway produce ca 300 000 and improvement of crushing successfully used in Eramet IDEAS‘s pilot furnace in November 2019. Next tonnes of Silica Green Stone annually, in the nature. The level of chloride and noise and other pollutants will NewERA Cold Agglomeration Unit • phase of this development is to perform industrial trials in one of our which for many years have been used sulphate is low, with absence of harm- be reduced. (CAU): ): Part of the NewERA-project, furnaces in Kvinesdal. as an input e.g. for clinker production, ful magnetic pyrite, fibrous minerals se page 61. road construction and land or sea and free phase quartz. The work done so far confirms that SFI Metal Production: • An area of critical importance to our circular economy vision is to develop fillings. We believe research and land storage and use of Silica Green The Norwegian Research Council’s new applications for Silica Green Stone. See page 57-59. development will expand existing The aim of Norwegian legislation is Stone does not entail danger to human Center for Research based Innovation application areas and contribute to to prevent pollution from industry, to beings or pollution to the environment. • IPN CoSiManVal: new ones. secure biodiversity and to develop new In addition, the use of Silica Green R&D project, Silica Green Stone applications for materials previously Stone as capping under a layer of shell- Silica Green Stone goes through a considered as waste. UN’s Environment sand in water does not cause process in the SiMn furnace with Programme concludes that the environmental risk. temperatures close to 1600 oC. The way humans use the land is one of the

56 ERAMET NORWAY SUSTAINABILITY REPORT 2019 57 CIRCULAR ECONOMY

Silica Green Stone used for road construction, E39 East - Mandal City.

Research and development Initiative indicates that about all blast Silica Green Stone for soil of new applications furnace slag is used in such a way, but improvement In 2019, the cooperation with Norcem that this equals about 1/3 of the total Newer research has indicated that to increase the use of Silica Green production from the metal industry silicon is vital for the growth of plants, Stone both in clinker production and as which it is assumed can be used in a to increase crops and reduce plant input for various cement blends were similar fashion. Initial tests indicates diseases. Silicon makes the stem stiffer strengthened. The world uses a lot of that Silica Green Stone has a and the leaves harder, thus protecting cements and it is expected to increase potential to be used as a cement plants against fungal disease and in correlation to population growth. substitute. However, the use of this insects. A tougher climate also requires Since limestone is a limited resource, in construction concrete will require more robust plants. Norcem is using a share of Silica Green a so-called technical approval or a Stone in its production process. modification of current standards. Silica has no known harmful effects on Work is currently under way to nature and animals, and may therefore Silica Green Stone is considered an address this. reduce the need for polluting interesting raw material in pesticides. Silica also reduces the concrete and agriculture as well based Eramet Norway established a research absorption of the pollutant cadmium on feedback from the University of cooperation with UiA, and together (Cd) in grass, thus making the food Agder (UiA), available literature and with SINTEF and other industry healthier. other available data. As a result, Eramet companies, started a two-year IPN Norway has decided to increase its project (Innovasjonsprosjekt for However, plants can only absorb silica R&D efforts to investigate these new næringslivet). The IPN project is partly dissolved in water, so called «bio potential applications. funded by The Norwegian Research available silica». Silica Green Stone Council and aims to study how the contains silica as «amorphous silica», Use of Silica Green Stone in characteristics of the Silica Green Stone which is highly soluble in water. The cement and concrete can impact concrete qualities. The combination of silica and water In 2019, UiA completed a mapping of project will include studies of current solubility makes Silica Green Stone a potential use of other slag products cement and concrete standards, which suitable product for agriculture. Access for use in production of cement and possibilities and limitations may occur, to silica is particularly important for concrete. Blast furnace slag from and the potential for obtaining future rice, sugar cane and grain production. global iron production is to a large changes in standards. The project also Bioavailable silica is today a limited

degree used to reduce CO2 emissions includes assessing the addition of Silica resource in soil several places around and that this type of slag is included Green Stone into concrete not used for the world, and due to its many qualities in current standards for cement and load-carrying products, which is not it is vital to get this material back into concrete in ordinary building covered by current standards. In the ecological cycle. standards. In a new study addition, life cycle costs and climate commissioned by the UN footprint by using Silica Green Stone Eramet Norway is investigating new Environmental Programme as an input factor will be studied. applications linked to soil improvement Sustainable Building and Climate for Silica Green Stone.

58 ERAMET NORWAY SUSTAINABILITY REPORT 2019 59 CIRCULAR ECONOMY

Pilot furnace in operation during the campaign in Trappes in November and December 2019

NewERA – Briquetts in the furnace melting process

In November and December 2019, the used in our furnaces. To prepare the critical conditions connected to group’s technology centre Eramet pilot campaign, 10 tonnes of “NewERA storage, handling and transportation of IDEAS performed a test project in its briquettes” were produced, consisting the briquettes. The pre-feasibility pilot furnace in Trappes, France, in of ore fines, filter dust, metallic fines project was financially supported by order to investigate effects linked to and sludge. Enova from 2016 to 2019. NewERA briquetts tested recirculation of briquettes made by in the pilot campaign by-products and waste materials in The test project results confirmed Our recommended the way forward is our smelting furnaces. previous findings and supported our to conduct an industrial scale triale at hypothesis that a partly replacement our furnaces in Norway to confirm the The objective of the test project was to of Comilog ore by «NewERA briquettes» results achieved in the test project. In determine the best way to recirculate in our furnaces will have no negative addition, industrial testing will provide briquettes made by Comilog ore fines process effects. data and knowledge needed to plan and other by-products containing the construction of a full-scale manganese, as a replacement for a The project also contributed positively briquetting plant and to adapt internal share of virgin ore, which is currently to creating a greater understanding for raw material handling systems.

60 ERAMET NORWAY SUSTAINABILITY REPORT 2019 61 HSEE POLICY

HSEE policy for a sustainable Eramet Norway

Goals making decisions on investments, Norway's management system. Eramet Norway will conduct its operating methods and changes. Adverse events and improvement business to minimise the impact on proposals must be addressed and form health, safety, the environment and Responsibility the basis for measures and continuous the climate throughout the value Managers at all levels have the overall improvement. Incorporation of creation chain. The production of responsibility, this also includes health, undesirable incidents forms the basis metals, materials and other products safety, environment and energy. They for implementing both corrective and shall take place through resource- are responsible for planning, preventive measures, and should efficient processes that safeguard organising, training and implementing therefore receive special attention. this consideration. the activities in their respective areas of responsibility and ensuring that health, Prevention Eramet Norway aims to be an en- vironmentally and energy-conscious safety, environment and energy are an Risk assessments should be the basis company, with a secure working integral part of this, as well as ensuring for procedures and practices, and environment that protects its that practices comply with laws, should be a fundamental part of an- employees, facilities and values while regulations and recommendations ticipation of changes and investment at the same time reducing our within their area. Managers should in planning. Potential hazards must be environmental footprint. Systematic their plans set specific improvement identified and assessed. Adverse events and continuous improvement of goals and seek collaboration with all such as near-accidents, accidents, health, safety, environmental and employees to achieve them. health damage, environmental dama- energy performance shall be ge, energy loss etc should be recorded fundamental goals for all the All employees are responsible for and investigated to find root cause and company's activities. creating a secure internal work environ- prevent recurrence. ment, protecting the external environ- Priorities ment and safeguarding the compa- Follow up Health, safety, environmental and ny's resources and equipment. Each In order to ensure compliance with energy efficiency activities should be employee is responsible for protecting laws and regulations and complian- an integral part of operations. Our most himself and his colleagues, adhering to ce with Eramet's own environmental important consideration is to protect established instructions for completing goals, policies and guidelines, a system our employees and others affected by our business from work accidents and tasks, and reporting as soon as for continuous registration, reporting health injuries. All relevant laws and possible in the event of adverse events and auditing shall be in place. Eramet regulations, as well as other or situations. Norway shall annually publish a sustai- requirements the company adheres to, nability report. must be followed. Environmental, Improvement energy and safety aspects must always Health, safety, environment and energy be considered and weighted when are an integrated part of Eramet

62 ERAMET NORWAY SUSTAINABILITY REPORT 2019 63 HSE DATA

Sauda Injury figures H1 and absence due to illness

CATEGORY 2019 2018 Absence due to illness in percentage and H-value H-value % absence due to illness Absence due to illness 6,7 % 3,6 % 15 Injuries with absence 1 1 10 Injury figures H1 (H-figures) 2,7 2,0 5 Undes. incidents - environmental 37 94

0 år Complaints from neighbours 17 11 11 12 13 14 15 16 17 18 19 Violation of discharge permit 1 0

Porsgrunn Injury figures H1 and absence due to illness CATEGORY 2019 2018 Absence due to illness in percentage and H-value Absence due to illness 5,1 % 6,0 % 15 H-value % absence due to illness Injuries with absence 1 2 10 Injury figures H1 (H-figures) 2,5 6,9 5 Undes. incidents - environmental 8 37 0 år Complaints from neighbours 36 47 11 12 13 14 15 16 17 18 19 Violation of discharge permit 2 1

Kvinesdal Injury figures H1 and absence due to illness CATEGORY 2019 2018 Absence due to illness in percentage and H-value Absence due to illness 5,2 % 4,6 % 20 H-value % absence due to illness Injuries with absence 0 1 15 Injury figures H1 (H-figures) 0 2,6 10

5 Undes. incidents - environmental 4 28

0 år Complaints from neighbours 2 2 11 12 13 14 15 16 17 18 19 Violation of discharge permit 4 1

* External workers

64 ERAMET NORWAY SUSTAINABILITY REPORT 2019 65 ENVIRONMENTAL DATA Eramet Norway Sauda

DUST, SO2, CO2 emissions to the air 2013-2019 Hg/Pb/Total (As, Cd, Cu, Cr) emissions to the air 2013-2019

50 – – 350 000 50 – 45 – – 300 000 45 – 40 – 40 – – 250 000 35 – 35 – 30 – – 200 000 30 – 25 – 25 – – 150 000 20 – 20 – tonnes/year 2 15 – – 100 000 15 – 10 – 10 – – 50 000 5 – tonnes/year 5 – 2 Kg pr. år Dust and SO 0 – 0 – – 0 CO 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 Dust emissions SO2 emissions CO2 emissions Hg emissions Pb emissions Total (As, Cd, Cu, Cr)

Emission limits: Dust = 35 tonnes/year SO2 = 50 tonnes/year Emission limits: Hg = 36 kg/year Pb = 100 kg/year Total (As, Cd, Cu, Cr) = 50 kg/year

ZINC/MANGANESE COPPER/TOTAL (As, Cd, Cr, Pb) emissions to Saudafjorden 2013-2019* emissions to Saudafjorden 2013-2019*

350 – 180 – – 40

300 – 160 – – 35 140 – 250 – – 30 120 – – 25 200 – 100 – – 20 150 – 80 – – 15 60 – 100 – 40 – – 10 50 – 20 – – 5 Total (As, Cd, Cr, Pb) – kg/year Kg pr. år 0 – Kobber – kg pr. år 0 – – 0 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019

Dissolved zinc emissions Manganese emissions Copper emissions Total emissions (As, Cd, Cr, Pb)

Emission limits: Dissolved zinc = 400 kg/year Manganese = 400 kg/year Emission limits: Copper = 150 kg/year Total (As, Cd, Cr, Pb) = 20 kg/year

PARTICLES emissions to Saudafjorden 2013-2019* PAH emissions to Saudafjorden 2013-2019*

4 000 – 40 – 3 500 – 35 – 3 000 – 30 – 2 500 – 25 – 2 000 – 20 – 1 500 – 15 – 1 000 – 10 – 500 – 5 –

Kg/year 0 – Kg pr. år 0 – Since 2000, Eramet Norway 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019

has invested more than Particle emissions Emission limits PAH emissions Emission limits

NOK 800 million in safety and * Emissions from purifying plants. Waste enviromnmental projects CATEGORY 2019 2018 CATEGORY 2019 2018 Slag 0 tonnes 0 tonnes Paper and cardboard 7 tonnes 7 tonnes Sludge and dust (landfill) 9 333 tonnes 3 633 tonnes Wood waste 491 tonnes 175 tonnes Residual waste 90 tonnes 153 tonnes Plastic 5 tonnes 5 tonnes Metal waste 324 tonnes 159 tonnes Asphalt 0 tonnes 0 tonnes Hazardous waste 68 tonnes 58 tonnes

66 ERAMET NORWAY SUSTAINABILITY REPORT 2019 67 ENVIRONMENTAL DATA Eramet Norway Porsgrunn Eramet Norway Kvinesdal

DUST, SO2, CO2 emissions to the air 2013-2019 Hg/Pb/Total (As, Cd, Cu, Cr) emissions to the air 2013-2019 DUST, SO2, CO2 emissions to the air 2013-2019 Hg/Pb/Total (As, Cd, Cu, Cr) emissions to the air 2013-2019 16,4 70 – – 200 000 40 – – 100 15 – – 300 000 120 – – 15 14 – 110 – – 14 – 180 000 35 – – 90 13 – 60 – – 250 000 100 – – 13 – 160 000 – 80 12 – – 12 30 – 90 – 50 – 11 – – 11 – 140 000 – 70 10 – – 200 000 80 – – 10 25 – 40 – – 120 000 – 60 9 – 70 – – 9 8 – 20 – – 150 000 60 – – 8 – 100 000 – 50 7 – – 7 30 – 50 – – 80 000 15 – – 40 6 – – 6 5 – – 100 000 40 – tonnes/year – 5 tonnes/year 2 2 20 – – 60 000 – 30 10 – 4 – 30 – – 4 3 – – 40 000 – 20 – 50 000 20 – – 3 10 – 2 – – 2 – 20 000 5 – – 10 tonnes/year

tonnes/year 10 – 2 2 1 – – 1 Hg – kg/year Total As, Cd, Cu, Cr – kg/year

Pb and total (As, Cd, Cu, Cr) kg/year 0 – Dust and SO 0 – – 0 – 0 CO Hg, Pb – kg/year Dust and SO 0 – – 0 0 – CO – 0 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019

CO emissions Dust emissions SO emissions CO emissions Pb emissions Hg emissions Total (As, Cd, Cu, Cr) Dust emissions SO2 emissions 2 Hg emissions Pb emissions Total (As, Cd, Cu, Cr) 2 2

Emission limits: Dust = 127 tonnes/year SO2 = 50 tonnes/year Emission limits: Emission limits: Dust = 15 tonnes/year Emission limits: Hg = 8 kg/year Pb = 30 kg/year Total (As, Cd, Cu, Cr) = 45 kg/year Hg = 8 kg/year Pb = 45 kg/year Total (As, Cd, Cu, Cr) = 90 kg/year

ZINK/MANGANESE COPPER/TOTAL (As, Cd, Cr, Pb) ZINK/MANGANESE COPPER/TOTAL (As, Cd, Cr, Pb) emissions to Frierfjorden 2013-2019* emissions to Frierfjorden 2013-2019* emissions to 2013-2019* emissions to Fedafjorden 2013-2019*

24 – 90 – – 10 15 – – 120 60 – – 50

22 – 14 – 270,1 – 110 80 – 13 – 50 – – 40 20 – – 100 70 – – 8 12 – 40 – – 35 18 – 11 – – 90 35 – 16 – 60 – 10 – – 80 – 30 14 – – 6 9 – – 70 30 – 50 – 8 – – 25 12 – – 60 25 – 40 – 7 – – 20 10 – – 4 6 – – 50 20 – 8 – 30 – 5 – – 40 15 – – 15 6 – *) 4 – – 30 *) *) 20 – 3 – 10 – – 10 4 – – 2 – 20 10 – 2 – 5 – – 5 2 – 1 – – 10 Copper - kg/year Manganese - kg/year Kg/year Copper - kg/year Total (As, Cd, Cr, Pb) – kg/year 0 – 0 – – 0 Zinc - kg/year 0 – – 0 0 – – 0 Total (As, Cd, Cr, Pb) – kkg/year 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019

Dissolved zinc emissions Manganese emissions Copper emissions Total emissions (As, Cd, Cr, Pb) Dissolved zinc emissions Manganese emissions Copper emissions Total emissions (As, Cd, Cr, Pb) Emission limits: Dissolved zinc = 50 kg/year Manganese = 30 kg/year Emission limits: Copper = 100 kg/year Total (As, Cd, Cr, Pb) = 7 kg/year Emission limits: DIssolved zinc = 15 kg/year Mangan = 50 kg/year Emission limits: Copper = 65 kg/year, Total = 26 kg/year *) Zinc total emissions is reported from 2017.

PARTICLES emissions to Frierfjorden 2013-2019* PAH emissions to Frierfjorden 2013-2019* PARTICLES emissions to Fedafjorden 2013-2019* PAH emissions to Fedafjorden 2013-2019*

500 – 5,0 – 10 10 10 10 10 10 1 000 – 3,0 – 24 24 24 24 24

450 – 2100 2100 2100 4,5 – 900 – 2100 2100 2 573 400 – 4,0 – 800 – 2,5 – 350 – 3,5 – 700 – 2,0 – 300 – 3,0 – 600 – 250 – 2,5 – 3 500 – 1,5 – 200 – 2,0 – 400 – 150 – 1,5 – 300 – 1,0 – 100 – 1,0 – 200 – 0,5 – 50 – 0,5 – 100 – Kg/year Kg/year 0 – 0 – Kg/year 0 – kg/year 0 – 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019

Particles emissions Emission limits PAH emissions Emission limits Particles emissions Emission limits PAH emissions Emission limits

*Emissions from purifying plants. *Emissions from purifying plants.

Waste Waste

CATEGORY 2019 2018 CATEGORY 2019 2018 CATEGORY 2019 2018 CATEGORY 2019 2018 Silica Green Stone 91 943 tonnes 98 811 tonnes Hazardous waste 14 tonnes 9 tonnes Silica Green Stone 204 796 kg 216 651 kg Hazardous waste 255 480 kg 223 775 kg Sludge and dust (landfill) 4 665 tonnes 5 858 tonnes Paper and cardboard 5 tonnes 3 tonnes Sludge and dust (landfill) 17 894 tonnes 19 325 tonnes Paper and cardboard 6 020 tonnes 5 930 tonnes Residual waste 174 tonnes 168 tonnes Wood waste 143 tonnes 156 tonnes Residual waste 101 296 tonnes 95 tonnes Wood waste 95 820 kg 75 520 kg Metal waste 160 tonnes 171 tonnes Mixed rubber waste 26 tonnes 17 tonnes Metal waste 32 tonnes 1 tonnes Plastic 16 240 kg 13 311 kg

68 ERAMET NORWAY SUSTAINABILITY REPORT 2019 69 FINANCE 15% Other operating cost

4% Environmental Depreciation of assets revenue 2019 8% Distribution of Profit and loss Wages- operating costs Environmental revenue from sale of CO gas to Yara´s ammonia salaries and 2019 factory at Herøya in Porsgrunn, sale of manganese dust statement for social cost and sale of electrical energy at Kvinesdal. 74% 2018 and 2019 Raw materials, energy and inventory change

Last year 2019 Previous year 2018 Change %

Sale of CO gass to Sale of Sale of recovered TURNOVER 6 539 6 803 -264 -4 % Yara in Porsgrunn manganese dust energy at Kvinesdal Raw materials, energy and inventory change -4 629 74 % -4 243 73 % -386 -9 %

Wages-, salaries and social cost -471 8 % -459 8 % -12 -3 % 14,9 112,3 43,2 Depreciation of assets -229 4 % -243 4 % 14 6 % MNOK MNOK MNOK Other operating costs -952 -6 281 15 % -892 -5 837 15 % -60 -7 % CURRENT OPERATING INCOME (COI) 257 965 -708 -73 %

Interest-/financial cost -151 -102 -50 -49 % Investments Corporate taxes -22 -196 173 89 % Yearly investments in MNOK for Porsgrunn and Sauda during NET RESULT 83 668 -585 -88 % 2008-2019 the period 2008-2019, and Kvinesdal for the period 2010-2019. Figures of the Sauda, Porsgrunn and Kvinesdal plants in MNOK. 2 PLANTS (PORSGRUNN, SAUDA) 3 PLANTS (PORSGRUNN, SAUDA, KVINESDAL) Turnover Year: 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Sum* and COI History of the Sauda, Porsgrunn and Kvinesdal plants. Figures are in MNOK. Environment and 25 11 18 43 113 37 55 45 67 21 69 63 825 28 % Safety investments 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Other investments 192 40 166 81 144 103 86 92 187 94 199 195 2 079 72 % COI 1 390 419 311 166 273 560 722 2 125 965 257

Total investments 217 51 184 123 257 140 141 137 254 115 267 259 2 904 100 % Turnover 5 260 4 850 4 336 4 117 4 224 4 861 4 460 7 156 6 803 6 539 COI margin 26,4 % 8,6 % 7,2 % 4,0 % 6,5 % 11,5 % 11,5 % 29,7 % 14,2 % 3,9 % * The total figure includes from year 2000. Relining and 7950 7 156 Furnace 12 Sauda rehabilitation 7450 6 803 upgrade 6 539 Sauda Furnace furnace 3 6950 Kvinesdal Rehabilitation 12 relining Increased transformer 6450 MNOK Sauda furnace 11 capacity, Porsgrunn Turnover 2019 (MNOK) 5950 5 260 300 Rehabilitation furnaces 5450 4 850 4 861 Porsgrunn furnace 10 Sauda Rehabilitation Kvinesdal landfill 4950 MOR-filter 4 336 4 117 4 225 4 460 250 Rehabilitation Porsgrunn furnace 11 4450 Sauda furnace 12 6 539 3950 200 3450 150 2950 2450 2 125 100 COI 2019 (MNOK) 1950 1 390 1450 965 722 50 950 561 419 311 273 257 450 167 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 257 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Environment and Safety investments Other investments Figures in MNOK Operating results Turnover

70 ERAMET NORWAY SUSTAINABILITY REPORT 2019 71 Eramet Norway Sustainability report 2019

SAUDA Postboks 243, 4201 Sauda. Phone: +47 52 78 50 00

PORSGRUNN Postboks 82, 3901 Porsgrunn. Phone: +47 35 56 18 00

KVINESDAL Øyesletta 61, 4484 Øyestranda. Phone: +47 38 35 72 00

Org. number: 980 518 647 I [email protected] I eramet.no I eramet.com

NORSK Tenkkom.no AKKREDITERING Photo: Dag Jensen, Benjamin Nordhagen, Max Emanuelson, ERAMET Research, DSFOTO, Erik Børseth, Eirik Spilling. QUAL 002/EMS 001