Eramet Norway

SUSTAINABILITY REPORT 2013 CONTENTS

05 Putting growth first 06 Solutions the world needs 08 Eramet – part of your daily life 10 World’s greenest manganese alloy producer 12 Eramet is a world leader in the production of manganese alloys 13 Eramet Norway - a part of Eramet group’s manganese division 14 Eramets operations in Norway 18 Production of manganese alloys and consumption of raw materials 19 World-class, environmentally friendly technology 22 Our future recruiting ground 24 One of Bellona’s key allies 26 Certified energy management at Eramet Norway 27 Emissions trading for a better Environment 28 A cleaner, healthier Porsgrunn 29 Refining to add value 30 Furnace 12 upgrade 30 Waste as a recource 33 Inclusive corporate culture pays off 34 A processing industry treading carefully 39 Plant emission figures 42 HES figures 44 Key financial figures 46 HES policy Eramet Norway supplies refined manganese alloys to steel producers worldwide – backed by Norwegian industrial traditions and sustainable technology. SUCCESS FOUNDED

ON TRUST Comply with requirements

Exercise social responsibility

SOCIETY

Comply with requirements Comply with Meet targets requirements

SHAREHOLDERS NEIGHBOURS

Implement plans Respond

Return on capital Listen and engage

EMPLOYEES SUPPLIERS Safe workplaces

Comply with requirements Clear structures CUSTOMERS Employee participation Predictable behaviour Development opportunities

Ability to deliver Quality

Service INTRODUCTION

by Bjørn Kolbjørnsen, CEO, Eramet Norway Putting growth first

The stricter Eramet Norway intends to remain one of process has been continuously improved. the world’s most efficient manganese alloy The fact that many of the environmental Europe-wide producers. Our industry experienced a tough standards now being introduced in our industry environmental year in 2013, with many metal producers in Europe, based on best available technology standards now being ending the year in the red. However, Eramet (BAT), are borrowed directly from Eramet Norway reinforced its leadership position, Norway’s processing plants is testament to this. introduced in our being one of the few companies to increase industry are modelled earnings and report an operating profit despite The environmental standards in question on those of Nowegian the prevailing market conditions. cover the cleansing of heavy metals and other emissions to air and water. For Eramet Norway, processing plants. If we are to hold on to this position, we need the matter is simple: If we do not constantly We are ahead of the to be a sustainable business. Operating income make every effort to achieve cleaner and more pack – and constantly and profits are not the only things that matter. efficient production processes, our company With an export ratio of 100% and international will not be a sustainable business. Eramet improving – when it owners playing in a global market, earnings are Norway intends to grow, not to scale down comes to sustainable of course important. But if Eramet Norway is to its operations, which is why we are pursuing operations. remain a viable business based in Norway, we improvements in all areas. We are investing need to consider other perspectives besides heavily in cutting emissions while increasing that of shareholders. We must continue productivity at our Sauda purification plant. making progress in reducing the environmental We are organizing our waste streams footprint of every ton of manganese we to facilitate recycling and reuse. We are produce. Last but not least, Eramet Norway automating and streamlining our working must continue to be seen as a good neighbour processes. We are increasing the manganese and a good employer. yield, using energy more efficiently, and eliminating landline phones. One of our biggest environmental advantages is that our operations use clean energy We firmly believe that, for a business like generated by waterfalls across Norway, and Eramet Norway to be successful and that Norwegian energy prices are reasonable sustainable, we depend on the trust of all compared with other countries. However, this our stakeholders. Solutions based on mutual is not the only reason why we have one of understanding and trust typically prove to the smallest environmental footprints of any be sustainable over time. At Eramet Norway, manganese alloy producer worldwide. Over we are making sure that is the case. And we the hundred years that manganese alloys have are planning to maintain the momentum for been produced in Norway, the production another hundred years.

SUSTAINABILITY REPORT 2013 5 FERROALLOY INDUSTRY

Solutions

by Jakob Steinmo, the world needs board member, Norwegian Ferroalloy Producers Research The world needs steel, metals and construction Association (FFF) materials. Electronic devices all contain metals and other elements that require chemical and metallurgical processing on their way from the mine to the finished product.

However, mining, ore processing and the environment-friendly, energy-efficient metal subsequent metal production present environ- production. The ferroalloy industry and mental challenges. Emissions from the produ- Bellona challenge each other and benefit from ABOUT FFF ction process and high energy consumption each other’s networks and expertise as we The Norwegian are well-documented issues. strive to develop production methods Ferroalloy Producers Re- The densely populated parts of the world are that do not deplete natural resources or harm search Association (FFF) now seeing a much needed increase in their the environment. is a close partnership standard of living – and with it, access to between the companies things that we in the West take for granted. Specific areas where we have operating in the industry – Elkem, Eramet Norway, It goes without saying that this trend is putting collaborated include: Fesil, Finnfjord, Rio Doce even greater strain on our environment and • Devising effective concepts for waste Manganese Norway resources. The big challenge for China now is recycling and recirculation (since 2008) and Tinfos Jernverk – the SINTEF to maintain growth without being suffocated • Creating acceptance of industry’s role by pollution. Countries such as India are hard research institute, and in modern society the Norwegian University on China’s heels. How can we find a solution? • Finding sustainable solutions for dealing of Science and Techno- Does Norway have a role to play? When the with CO2 emissions from biomaterials logy (NTNU). products being made constitute the very basis Promoting public policies that facilitate • The association conducts of the higher standard of living, the answer is energy- and resource-efficient production not simply to increase taxes and duties and long-term R&D and education programs, hope that the problem solves itself. Pulling in the same direction aiming to be in the van- Since 2001, in partnership with Bellona, guard of developing new New alliances we have organized many working groups, technology and solutions to meet future interna- In 2001, a major effort got under way in workshops, conferences and seminars, Norway to find solutions that would enable tional environmental bringing together stakeholders from industry, standards. the country to meet its national environmental politics and government. Valuable knowledge targets. Facing a new levy on sulfur dioxide has been shared, highlighting the opportuni- Strain on the environ- emissions, the world’s most environmentally ties for and needs of the ferroalloy industry in ment and on natural resources is increasing as efficient ferroalloy producers found an ally in a way that would otherwise have been hard the Bellona Foundation. Together we drove the standard of living in to achieve. The Norwegian ferroalloy industry densely populated parts the transformation of the sulfur levy from a today is more internationalized than ever, with of the world approaches straight contribution to government coffers most processing plants in foreign ownership. that of the West. into a technology-focused special-purpose What they all have in common is that they fund. This alliance was the starting point for a value the working relationship with Bellona and more formal working relationship based on a the work of the industry’s research partnership, shared belief in a regulatory environment that the Norwegian Ferroalloy Producers Research promotes technological development and Association (FFF).

6 ERAMET NORWAY Eramet Norway’s production methods help to reduce our environmental impact.

SUSTAINABILITY REPORT 2013 7 PRODUCT

Eramet – part of your daily life

Iron and steel are essential construction materials in modern society. Just as the body’s bone structure needs calcium for strength, manganese is necessary to make steel ductile and durable. For one tonne of steel, about 10 kilograms of manganese is used.

NEARLY 90 PER CENT of the world’s total manganese alloy production is used to make stainless steel and specialty steels for the construction industry, the aeronautics and aerospace industry, the energy and transport sectors, and the machine tool industry. The construction market alone accounts for more than half the steel used worldwide.

8 ERAMET NORWAY EVERYWHERE YOU GO you will encounter products that contain manganese alloys. Eramet Norway supplies the world’s steel producers with a complete range of high-quality manganese alloys. In our processing plants in Norway, raw manganese is refined and processed into ferromanganese and silicomanganese. These additive ingredients comprise 1–10 per cent of the composition of steel, graded by quality.

SUSTAINABILITY REPORT 2013 9 ENVIRONMENT AND SUSTAINABILITY World’s greenest manganese alloy producer

Over the past few decades, Eramet Norway’s processing plants have been transformed from major polluters into the INNOVATION REQUIRED world’s greenest manganese alloy production facilities.

Our customers, the end- users of their products Industrial production of goods and services to create a sustainable industry and economy. and the regulatory is essential to our modern way of life and Market forces alone will not bring about the re- authorities all expect a our prosperity, helping to create economic quired transformation. What is needed is a deli- high degree of innovation stability and employment opportunities. The berate corporate strategy. Eramet Norway aims from Eramet Norway. As a key player in the manufacturing sector therefore has a respon- to be an environmentally responsible company processing industry, the sibility to make its production processes more with a safe work environment that takes care company is expected to environment-friendly and resource-efficient. of its employees, its assets and its values. go the extra mile to help Eramet Norway takes this responsibility seriously. build a sustainable society Industrial innovation is critical for all of us. Transformation not over yet Eramet Norway’s R&D group is based in the The Eramet Group has a policy of sustainable high-tech environment surrounding NTNU development. The guiding principle is that (the Norwegian University of Science and all the group’s manufacturing activities must Technology) and SINTEF in Trondheim. The comply with current national and international group works closely with the processing plants Whereas our grand- standards, and that all plants must be operated to analyse and solve technical and producti- parents faced great and developed in line with best practice, using on-related issues. The support provided by the risks in the work- the best available technology. Eramet Norway R&D group is based on an essential understan- sets strict environmental standards for its own ding of what constitutes a realistic innovation place and had to operations and works closely with the proposal. The collaboration has borne fruit endure high levels Norwegian authorities to ensure that all in the form of smart energy efficiency and of hazardous envi- regulations are followed and that improvement recycling programs. The R&D group is playing targets are continually set. A lot has happened a key role in the company’s efforts to meet the ronmental pollution, in the span of just one generation. Whereas our Norwegian government’s ambitious target of their grandchildren grandparents faced great risks in the workplace zero emissions by 2020. can go about their and had to endure high levels of hazardous environmental pollution, their grandchildren Offshoring ruled out work in safety, in a can go about their work in safety, in an An easy way for manufacturing businesses n environment environment largely free of toxic emissions. like Eramet to improve their bottom line is by largely free of moving production to countries with cheaper Sustainability – key to the future labour and few if any restrictions on emissions. toxic emissions. Despite all the bleak forecasts about the de- Nothing could be further removed from Era- cline of the industrial society, industry remains met Norway’s corporate vision and objectives. the basis for economic progress in 2014. It is in Sustainability is all about thinking long-term everyone’s interests to secure the future of the and globally. The overall environmental impact manufacturing sector by modernizing it accor- is lowest if Eramet produces manganese alloys ding to sustainable development principles. close to the abundant sources of hydroelectric At Eramet Norway, we are aware that we power in Norway’s fjords and mountains. And cannot rely on general economic conditions we’re happy to stay here.

10 ERAMET NORWAY SUSTAINABILITY REPORT 2013 11 ERAMET GROUP ERAMET IS A WORLD LEADER IN THE PRODUCTION OF MANGANESE ALLOYS The French industrial group Eramet is the world’s second largest producer of manganese ore and manganese alloys, and the world’s leading producer of refined manganese alloys. The company’s business areas are manganese, nickel and special steel. The group has about 14 000 employees in 20 countries throughout the world and had a turnover

of NOK 24 billions in 2013. Eramet’s most important MANGANESE markets are the steel industry, aerospace industry, Manganese is a metallic element belonging energy, the transport sector and the tools industry. to Group 7 in the Periodic Table of Elements. Pure manganese is a steel-grey metal. It is hard, but at the same time so brittle that it can be pulverized.

On a worldwide basis, there are large deposits of manganese. In the earth’s crust, there are some 900 ppm, making it the second most common metal after iron. It is primarily extrac- 14 000 ted from the mineral pyrolusite (MnO2), also EMPLOYEES IN 20 COUNTRIES known as brownstone. More than 80 per cent THROUGHOUT THE WORLD of occurrences are found in South Africa and Ukraine. Other important deposits are in China, Australia, Brazil, Gabon, India and Mexico. Manganese is also found in the form of nodules on the ocean floor.

AREA OF UTILIZATION

Manganese is necessary to make steel ductile and durable. For one tonne of steel, about 10 kilograms of manganese alloy is needed.

Nearly 90 per cent of the world’s total manga- 5 000 nese alloy production goes into the production of stainless steel: steel for the construction, EMPLOYEES WORLDWIDE IN THE MANGANESE DIVSION energy and transport sectors, and the tool industry, and special steel produced for the 24 BN NOK aeronautics and aerospace industries. TURNOVER IN 2013

12 ERAMET NORWAY ERAMET NORWAY

ERAMET NORWAY – A PART OF ERAMET GROUP’S

WORLD-CLASS MANGANESE DIVISION NORWEGIAN METALLURGICAL EXPERTISE Eramet Norway is part of Eramet’s Manganese Division, with processing plants at Sauda, Kvinesdal and Porsgrunn, and an Metallurgy is a broad field with a long traditi- R&D group in Trondheim. The company employs 530 people, on in the ferroalloy industry, in which Norway and its operations make the Eramet Group the world’s second enjoys high international largest producer of manganese ore and manganese alloys. standing.

Metallurgy is metal technology. The employees working in this spe- From smelter to modern has been spent on developing and adopting green cialized field range from processing plant technology. Today, Eramet Norway can proudly apprentices and process operators to doctoral boast that we operate the world’s cleanest manga- The Norwegian processing plants maintain the level researchers. traditions and expertise that the ferroalloy industry nese alloy production facilities. Modern metal techno- has built up since industrialization accelerated in logy has become increa- Norway in the early 20th century. Today, Eramet 100 per cent export singly more sustainable over recent years. Norway supplies manganese alloys to the internati- Eramet Norway exports all its production of onal steel industry market. manganese alloys, primarily to Europe and North America. The processing plants transport 98 per The worlds cleanest cent of their production by ship and the remaining manganese alloy production percentage by road and rail. Eramet Norway realized early on that environmentally sustainable onshore industry is the way of Organizational philosophy the future for Norway. Since 1999, when Eramet The company has a very flat organizational structu- INTERNATIONAL COMPETITIVENESS acquired the processing plants previously owned re built on a strong contribution-based philosophy by Elkem, about half a billion Norwegian kroner and the Nordic model of collaboration. One challenge in operating and developing business in Norway is that, in cooperation with Norwegian authorities, we need to adapt our framework conditions so as to create the basis Eramet Norway’s refining for strengthening our international process is an advanced, highly competitiveness. technological process that few other countries in the world are able to emulate.

SUSTAINABILITY REPORT 2013 13 ERAMET OPERATIONS IN NORWAY

ERAMET NORWAY IS FOUNDED ON LONG-STANDING INDUSTRIAL TRADITIONS. THE THREE NORWEGIAN PROCESSING PLANTS ARE LOCATED BETWEEN THE FJORDS AND MOUNTAINS OF ROGALAND, AUST-AGDER AND TELEMARK.

TRONDHEIM

ERAMET NORWAY SAUDA

Sauda, in the northeast part of Rogaland county, is a community SAUDA of 5,000 inhabitants. The local rivers were harnessed for hydroelectric power generation in the early 20th century, paving the way for industrialization in Sauda. PORSGRUNN Eramet Norway’s processing plant in Sauda employs about 175 people and, with its two 40 MW furnaces, is the largest ferro- KRAGERØ manganese producer in northern Europe. Production has more than doubled since the 1960s, and nearly 60 per cent of the plant’s revenue is from refined products. KVINESDAL Annual power consumption totals 750 GWh when the plant is operating at full capacity. Measured in tonnes produced, Sauda is the largest plant in the Eramet Norway family. OWNERSHIP INTEREST IN A Sauda has the highest output of refined ferromanganese alloys, QUARTZ QUARRY OPERATOR, processing about 60 per cent of the manganese ore imported by GEORG TVEIT AS. Eramet Norway.

Eramet Norway Sauda is a cornerstone of the local economy and takes its corporate social responsibility seriously, benefiting both the company and our stakeholders. The plant will soon celebrate its centenary, and its vision is reflected in the motto “All set for another hundred years in Sauda!”

14 ERAMET NORWAY TRONDHEIM R&D GROUP

Eramet Norway’s development group in Trondheim consists of three researchers with access to the facilities and expertise of NTNU and SINTEF. Working as a team, they are all acknowledged experts in applied research who continuously pursue enhanced understanding and greater insight. The development group supports the processing plants at Kvinesdal, Sauda and Porsgrunn, and contributes to innovation and knowledge dissemination within Eramet Norway.

ERAMET NORWAY PORSGRUNN

Porsgrunn is a city of 35,000 residents in Telemark county. As the successor to a plant first established in 1913, Eramet Norway Porsgrunn is a modern, high-technology business with long and proud traditions. Average seniority among the workforce is 23 years, and it is not uncommon to encounter second- and third-generation employees manning the smelting furnaces. The plant is considered an attractive workplace locally and currently employs about 150 people. Equipped with two smelting furnaces and a refinery facility, the plant produces 65,000 tonnes of silicomanganese and 115,000 tonnes of refined ferromanganese annually. The plant consumes 570 GWh of electricity annually, from which it recovers almost 200 GWh of thermal energy by supplying carbon monoxide gas to Yara’s ammonia factory at Herøya.

ERAMET NORWAY KVINESDAL

Established in 1974, Eramet Norway Kvinesdal is centrally located in the Lister region. Kvinesdal is a community of 5,800 residents, 200 of whom work at Eramet Norway. The modern, highly versatile processing plant is a key player in the local community and an undisputed leader in energy recycling, flexibility, adherence to emissions requirements and, not least, customer satisfaction.

The plant consumes 750 GWh of electrical energy annually and is strongly committed to energy recycling. As long ago as 1981, a thermal power plant was built, which now supplies nearly 90 GWh annually to the grid. Wastewater is reused by the plant itself and by external customers, including a turbot farm producing 250 tonnes of fish annually. A district heating plant, built in 2007, supplies hot water to five external customers for heating off-site workshops.

SUSTAINABILITY REPORT 2013 15 16 ERAMET NORWAY When it comes to advanced technology, few metal producers can match Eramet Norway.

SUSTAINABILITY REPORT 2013 17 PRODUCTION PROCESS

PRODUCTION OF MANGANESE ALLOYS AND CONSUMPTION OF RAW MATERIALS

COKE Carbon as a reducing agent ORE Manganese source

SLAGGING Gives slag better viscosity (fluidity) and enables correct chemical composition for obtaining optimal manganese reduction

THE MANGANESE PROCESS (FEMN) ELECTRODES MnO2 (manganese) C (coke) CO CO Supplies the process with 2 electrical energy – equivalent Overflate to the consumption of 20 000 households

2MnO + CO = Temperature in 2 0 Mn2O3 + CO2 FURNACE charge: 200 C

Able to withstand 3Mn2O3 + CO = Temperature in 2Mn3O4 + CO2 extremely high charge: 400 0C temperatures – more than 2 000oC Mn3O4 + CO = Temperature in 3MnO + CO charge: 800 0C 2

Koksseng 1 250 0C MnO + C = Mn + CO Slagg

Metal layer 1 400 0C 857 000 227 000 101 000 TONNES OF MAGANESE ORE TONNES OF METALLURGICAL COKE TONNES OF QUARTZ

18 ERAMET NORWAY PRODUCTION PROCESS

WORLD-CLASS, RAW MATERIALS FROM OUR OWN MINE ENVIRONMENTALLY Eramet Norway handles significant amounts of raw materials in its production processes. These raw materials come from suppliers in FRIENDLY Norway and abroad and primarily comprise:

• manganese ore TECHNOLOGY • metallurgical coke • quartz and limestone Eramet Norway has a century of experience in manufacturing manganese alloys. This knowledge base, developed over generations, is Eramet Norway’s most important resource and asset. This expertise has also made the company a leader in smelting and refining manganese alloys. FACTOR INPUTS Today, the refining process is an advanced, highly technological process Other important factor inputs are electrode that few other countries in the world are able to emulate. From the time paste and metallic silicon sources. During an optimal mix of ore and coke is blended and sent to the furnace, and the smelting process, a number of internal until the crucial refining process has been completed, precision and expe- products are produced and consumed. rience are essential. With the aid of an advanced control system, every They are transferred as required to other stage of production is monitored in detail, and the laboratories take sam- parts of the same plant and between the three processing facilities. ples at regular intervals to test quality.

ENERGY CONSUMPTION

The combined electrical energy consumed in the smelting processes, including auxiliary power, was about 1.98 TWh in 2013. The required amount of natural gas and propane used as thermal energy sources amounted to almost 1 300 tonnes.

Eramet Norway is also one of the country’s largest consumers of industrial gases, particularly liquid oxygen, in production processes.

13 000 1.98 TWH 1300 TONNES OF ADDED ELECTRODE TOTAL CONSUMPTION OF ELECTRIC TONNES NATURAL GAS AND PROPANE MATERIAL ENERGY / AUXILIARY POWER

SUSTAINABILITY REPORT 2013 19 TRANSPORT

20 ERAMET NORWAY Eramet Norway’s entire output of manganese alloys goes for export, chiefly to Europe and North America. 98% is transported by sea and 2% by road.

SUSTAINABILITY REPORT 2013 21 APPRENTICESHIPS

Our future recruiting ground

For Eramet Norway, creating much-needed apprenticeship opportunities is an important social responsibility. A concept dating back to the Middle Ages, apprenticeships ERAMET NORWAY have traditionally been a valuable source of new recruits. GIVES YOUNG PEOPLE A HEAD START These are two of the motivations behind our IN THEIR CAREER apprenticeship program.

Eramet Norway takes on 30–50 new ap- advance their career in technology. A te- prentices annually and is a stable employer, chnical apprenticeship, where you combi- well established and well connected in the ne theoretical learning with on-the-job local community. Our apprenticeship pro- training alongside colleagues in a pleasant gram can therefore be seen as an expressi- work environment, is a great way to start on of our corporate social responsibility. your working life. Periodically the company also needs people with expertise in mana- “Life as an apprentice is great. An attractive workplace gement and organizational development My co-workers have been Eramet Norway’s processing plants are ex- to work in centralized functions such as really welcoming, and the work environment is very inclusive.” citing places to work. Coupled with access finance, HR, IT, procurement and logistics. to ample sources of renewable energy, Benjamin Welfler, the company’s experience in producing A great place to be apprentice at Porsgrunn ferroalloys means that Eramet Norway Eramet Norway’s apprenticeship program is well placed to meet future challenges. is well organized in both professional and The company’s greatest asset, however, social terms. At the outset, the apprentice is its highly trained and highly motivated signs an apprenticeship contract with the workforce. company. Experienced skilled tradesmen provide hands-on training, while subject The current Norwegian government is experts oversee the management of the advocating improved vocational training program and ensure apprentices are deri- and the creation of more apprenticeships. ving maximum benefit from it. Society needs a technical and vocational education system that allows for greater In addition, Eramet Norway has a long “When I’ve passed my journey- man’s exam, I’m going to do flexibility in the future, so that the labour tradition of providing practical and financial all I can to keep working as a force is better equipped to handle restru- support to employees wishing to pursue mechanic. I really like the job cturing and new tasks. This is entirely in educational opportunities. There are also and would love to stay on here line with Eramet Norway’s approach. opportunities for international exchanges, at Eramet.” and everyone at Eramet Norway will find Sondre Heimdal, We need employees who are skilled in our themselves working alongside foreign col- apprentice at Porsgrunn company’s core specialties and keen to leagues in the local organization.

22 ERAMET NORWAY “I would truly advise others to try it – and that includes girls.”

Emma Svendsen, apprentice at Sauda

BÆREKRAFTRAPPORT 2013 23 ENVIRONMENT AND SUSTAINABILITY

by Frederic Hauge, One of Bellona’s founder and president, Bellona Foundation key allies

Environmental challenges call for long-term thinking. Twenty years ago, who would have BELLONA FOUNDATION predicted that, in 2014, Bellona would view Eramet Norway and the processing industry as The Bellona Foundation is an independent not- key allies in the drive for a cleaner, more for-profit organization that aims to meet and energy-efficient and sustainable world? fight the world’s climate challenges by identify- ing and implementing sustainable environ- A glance in the rear-view mirror conjures up When the government again proposed a tax mental solutions. The images of thick, unfiltered smoke pouring on emissions, this time on nitrogen oxides foundation is working from factory chimneys, illegally buried barrels (NOx), we rallied the troops once more. to achieve greater eco- of toxic waste, and chimney-climbing protes- Together, we successfully argued that the logical understanding ters. Images of workers scared for their own finance ministry was not in a position to and better protection of nature, the environment safety in the workplace, but equally scared to reduce emissions, and so a well-functioning and health. Bellona report the problems. Images like these remain NOx fund was set up. Although Bellona still is engaged in a wide etched on many people’s memories, colou- goes after environmental offenders, we are spectrum of current ring their view of the processing industry as a now setting our sights further and further national and internatio- polluting monster best kept at a safe distance. into the future. Eramet Norway is among the nal environmental issues around the world. industries that need years to plan and carry Now, as we stand alongside Eramet out capital projects that will last until 2050 Norway campaigning for incentives for car- and beyond. We know that failing to proacti- bon capture and storage, we do so because vely take environmental considerations into Eramet Norway the processing industry, and Eramet Norway account will undermine future profitability. in particular, has shown that a comprehen- So it is our job to seek out industry partners and the Bellona sive, systematic program of green initiatives and challenge them to work with us to create Foundation have over time can create one of the cleanest, examples of best practice that show the way a formal work- most energy-efficient ferroalloy industries in forward in the fight for a sustainable society. the world. We can say that the environmental This society needs the products of the fer- ing relationship, fight was worth it. Over 10 years ago, roalloy industry, and it needs those products the objective we campaigned together against plans to to be produced using minimal energy and of which is to make businesses pay a tax on sulfur emissi- without harmful emissions. ons straight into government coffers, with no draw on each strings attached. Instead, we believed the The prerequisites are extensive capital other’s exper- money should be paid into a dedicated fund expenditure and a favourable regulatory tise to improve and used specifically to clean up sulfur pol- environment created by authorities bold lution. Our combined effort paid off. Industrial enough to rise to the environmental challen- the company’s sulfur emissions have been cut dramatically. ges. The fact is, we cannot create a renewable environmental world without ferroalloys. performance.

24 ERAMET NORWAY Eramet is helping to create a renewable world CERTIFIED ENERGY MANAGEMENT AT ERAMET NORWAY

By the end of 2014, all of Eramet Norway’s processing plants will have obtained ISO 50001 certification. By adopting this international standard, the company is making a commitment to continuously improve energy efficiency and reduce emissions.

Eramet Norway’s total electricity con- only 59 GWh (net) of electricity compa- sumption in 2013 was 1.98 TWh. The red with 85 GWh in 2012. At Sauda shutdown of Furnace 12 at Sauda for and Kvinesdal, we avoid the need to TWH maintenance and relining meant that purchase significant quantities of ener- 1.98 consumption was lower than when the gy for refractory activities and heating ELECTRICITY plant is operating at full capacity. by reusing furnace gas and waste heat. CONSUMPTION 2013 Combined with other energy reuse, this Consumption and recovery accounted for almost 300 GWh. Consumption of other sources of thermal energy (natural gas, propane, Constantly improving oil-based fuels, etc.) has stabilized at performance record low levels. Coke and anthracite, In 2013 about 45 per cent of our used mainly as reducing agents in the energy consumption – in the form of TOTAL ENERGY smelting furnaces, also appear on the heat – went directly into producing CONSUMPTION 2013 company’s energy balance sheet. If we products for sale. Of the total 4.16 TWh convert all of this into units of energy, of energy consumed in 2013, 14 per the company’s total energy consump- cent was recovered during processing. tion for the year was 4.16 TWh. The vo- The energy recovery rates for individual lume of recovered energy supplied to plants were 21 per cent for Kvinesdal, external customers or consumed inter- 17 per cent for Porsgrunn, and 3 per nally by partially self-sufficient parts of cent for Sauda. At Sauda, there is con- ISO CERTIFICATIONS our business was 564 GWh. The biggest siderable potential for utilizing furnace The Sauda and Porsgrunn plants will contributor to the recovered energy gas to a greater extent than at present. complete the ISO 50001 energy ma- total was the 208 GWh of furnace gas At Porsgrunn, the volume and value nagement certification process in the supplied by the Porsgrunn plant to of the furnace gas supplied to Yara spring of 2014. The Kvinesdal plant has Yara’s ammonia factory at Herøya. reached an all-time high in 2013, but held this certification since December The thermal power plant at Kvinesdal, steps yet to be taken from the action 2010 (originally ISO 16001, converted to ISO 50001 in December 2013). which underwent an extended main- plan are likely to bring further impro- tenance shutdown in 2013, generated vements.

26 ERAMET NORWAY The rationale behind the allocation of free allowances is to mitigate the risk that businesses such as Eramet Norway might move to countries where carbon pricing does not apply. EMISSIONS TRADING FOR A BETTER ENVIRONMENT

Norwegian businesses that are part of the European Union’s Emissions Trading System (EU ETS) for greenhouse gases have been required since 1 January 2013 to have their annual reporting of EU ETS capped emissions independently verified. Eramet Norway is well EU ETS, the EU Emissi- ons Trading System, is ahead of the game. the European Union’s marketplace for trading Eramet Norway became part of the EU ETS in period until the end of 2020. in CO2 quotas among 2013 (see box). Following an exhaustive appli- The job of determining emissions volumes has EU and EEA mem- cation process in 2012, we were allocated free become considerably more resource-intensi- ber states. One unit of quota is known as allowances for direct emissions. The rationale ve as of 2013. The standard guidelines set out an EUA (EU Emission behind the allocation of free allowances is to a detailed methodology, and the results of the Allowance) and allows mitigate the risk that businesses such as Eramet calculations have to be verified by an approved, the holder to emit one Norway might move to countries where carbon independent third party. Eramet Norway’s total tonne of CO2. When pricing does not apply. In addition, our plants emissions in 2013 were 750,000 tonnes. When the cap-and-trade system was introduced were granted extra allowances based on the we take our free allowances and the furnace gas in 2005, manufacturing extent and type of energy recovery measures in supplied to Yara into account, the net volume for and energy businesses effect. which we were required to purchase allowances were allocated free was 126 000 tonnes. allowances equivalent to a large proportion of Direct and indirect CO2 emissions their emissions. If they In 2013 we applied for compensation for the With regard to indirect carbon emissions costs are able to reduce emis- costs of indirect carbon emissions already paid included in energy prices, we received approval, sions, they can sell their for through electricity prices – both under sup- effective 1 July 2013, for a compensation ar- surplus quota to other ply contracts and in the spot market. rangement covering 62 per cent of our annual enterprises. This arrangement was in effect only for the electricity consumption. In future years, this Rosvold, Knut A. (18 April 2014). second half of 2013. The rationale is the same as percentage will increase and will be effective for EU ETS. Article in Store norske leksikon (translated). Downlo- for the free allowances for direct emissions, and the full calendar year. aded 16 May 2014 from http:// snl.no/EU_ETS both arrangements are in place for an eight-year

BÆREKRAFTRAPPORT 2013 27 ENVIRONMENT AND SUSTAINABILITY

CLEANER AND HEALTHIER

As a business, Eramet Norway is required to constantly improve its environmental performance, in order to safeguard its assets – the processing plants – and the future of the group as a whole.

At Eramet Norway’s Porsgrunn plant, the plant systems documentation, we have our focus in 2013 was on improving the mapped the sand trap basins to ascertain effectiveness of our wastewater treat- which of them is the last in line before the ment system. Although the plant was water is released into the river. already operating well within the limits of its licence, we make constant efforts to Reduced emissions to air SUBSTANTIAL CUT improve our environmental performance. Eramet Norway’s most effective energy ef- IN CO2 EMISSIONS We therefore invested in two new polymer ficiency measure at Porsgrunn is the sale of Eramet Norway’s most effective dispensing stations, one for each furnace furnace gas to the neighbouring Yara plant. energy efficiency measure at unit, which ensure that the correct amount In 2013 we supplied a record volume of Porsgrunn is the sale of furnace of polymer precipitant is present to purify gas to Yara, thanks to an action plan drawn gas to the neighbouring Yara the wastewater. This fully automated, up by the two companies. Our focus on plant. In 2013 we supplied a computer-controlled system constituted a this plan and our great working relationship record volume of gas to Yara, contributing to a substantial cut major capital cost in 2013. with Yara have paid off, and the energy in in our CO2 emissions. the furnace gas that would otherwise have Reduced emissions to water gone to waste is now recovered, contri- In addition, the Porsgrunn plant is pur- buting to a significant reduction in Eramet suing a comprehensive project to improve Norway’s and Yara’s CO2 emissions. water treatment in general. So far, this has Maximizing the amount of gas supplied to resulted in an upgraded control system Yara remains a priority in 2014, with the NO WORKPLACE for the final stage of water treatment and ultimate goal of recovering the energy in INJURIES an automated control loop to remove all the furnace gas we produce. loose zinc. This ensures that the chemical As recently as 2011, we invested in a new In 2013, for the second year run- composition is correct at all times, which casting method at the Porsgrunn plant ning, Eramet Norway’s employees at Porsgrunn did not suffer any enhances the effectiveness of the precipi- – another energy efficiency measure. workplace injuries resulting in tation process. This has improved crush yields, reducing absence. We can thank our work- We also systematically monitor run-off the amount of material that has to be place safety drive for that. What is from the Herøya plant. Samples are taken resmelted. As a result, energy losses were more, the plant also managed to bi-monthly from the sand trap basins, in reduced by 2 GWh in 2013 compared with reduce levels of sick leave for the second consecutive year in 2013. line with the plant’s monitoring program. 2011. As part of the quality assurance process for

28 ERAMET NORWAY OGC – filter that collects and purifies dust from MOR

REFINING TO ADD VALUE

In the mid-1970s, Elkem Since that time, the MOR process at suitable for sale can now be made into developed manganese Sauda has been further developed and pellets and used in the furnaces in place oxygen refining (MOR) as improved. Eramet Norway is now a wor- of manganese ore. a method of producing ld-leading manufacturer in this field. refined ferromanganese In 2012 the MOR plant’s original filtration In the MOR process, liquid HCFeMn is system was replaced with a new, state- alloys (FeMn) with lower blasted with pressurized oxygen through of-the-art system for more effective dust carbon content than the a lance from above and fed into a con- capture. The new system was designed conventional high-carbon verter that reduces the carbon content to accommodate future increases in alloys (HCFeMn) produced of the alloy as required by the customer. production capacity. In 2013, Eramet in the furnaces at the The refining operation produces large Norway set a new production record for Sauda plant. volumes of manganese oxide dust, which refined manganese alloys. is trapped by a filtration system. Thanks to focused development of the Originally, this fine dust was sent to land- MOR process, production equipment fill, but more recently we have developed and work processes, MOR dust is no markets for it, such as drilling mud for longer a problem substance, but rather the oil industry, dyes for roof tiles and a high-value by-product that enhances bricks, animal feed supplements, and the profitability and sustainability of the electronic components. Impure dust not refinery operations in Sauda.

SUSTAINABILITY REPORT 2013 29 FURNACE 12 WATER LEAK DETECTION SYSTEM UPGRADE A water leak detection system has been installed, As part of our drive to improve operational reliability and which measures water flow into and out of the increase production of HCFeMn, Furnace 12 at Sauda was furnace plant and uses high-tech measuring equ- upgraded in late 2013 and early 2014 at a cost of NOK 70 ipment to detect leakage million. at an early stage.

There were two main components to the project:

New carbon lining A new carbon lining was installed, which serves as insulation between the molten metal inside the furnace and other production equipment. The lining installation project 98 PER CENT WASTE involved tearing out the old furnace shell (a steel casing that holds the carbon lining in SEPARATION RATE place), constructing a new furnace shell including the carbon lining, and maintaining The target was to recycle and upgrading production equipment in the vicinity of the furnace. over 80 per cent of the waste generated by Installation of water leak detection system the project, based on A water leak detection system was installed, which uses high-tech measuring equipment estimated volumes of to detect leakage at an early stage. Water leakage in a smelting furnace poses a con- all waste types. Was- te management was a siderable safety risk that may lead to extensive property damage and, in a worst-case frequent topic at the daily scenario, injuries and loss of life. project meetings, where In the course of the Furnace 12 upgrade project, we ripped out much of the old furnace any divergence from the in order to build a new one. As a result, we generated large volumes of waste: carbon plan was identified, and lining, scrap metal, copper, and other materials excavated from the furnace. The waste immediate action taken to rectify waste manage- management plan for the project defined in detail the waste types, the expected volu- ment errors. mes, and the locations of waste disposal stations.

WASTE AS A RESOURCE WASTE MANAGEMENT Eramet Norway has an ongoing commitment Best practice pays off: to treat waste as a resource. • We are meeting the regulatory requirement to re cycle at least 60 per cent of waste generated. In the normal course of operations at the processing plants, we reuse materials • We are reducing our environmental impact (pol lution, effects on neighbours, etc.). in the production process where possible and dispose of waste to specialized • We are being financially responsible – recycling recycling contractors. can generate income streams, while disposing of mixed waste is costly. Waste management at Sauda • We are helping to maintain high health and safety Various operations at the Sauda plant result in an accumulation of scrap metal standards on the construction site – a tidy site and clean concrete waste. We are firmly committed to handling waste respon- means lower risk. sibly. Detailed waste management plans are put in place for major projects, with individual project managers in charge of waste management in their respective areas of responsibility.

30 ERAMET NORWAY FURNACE 12 PROJECT

Completion of the Furnace 12 upgrade has improved the technical condition of the furnace. Installation of a new carbon lining and a water leak detection system has signifi- cantly reduced the risk associated with furnace operation. ENVIRONMENT AND SUSTAINABILITY R&D – PAVING THE WAY TO A CLEANER FUTURE

Improved processes and environmental protection, especially on pilot projects, are the result of extensive research and development work over a long period.

Raw materials, and ore in particular, can be partially upgraded prior to charging in a furnace. In a joint R&D program involving the processing plants, the ROMA project sponsored by the Norwegian Ferroalloy Producers quality-assured in our research projects. Secon- Research Association (FFF), and Eramet Resear- dly, it has led to more targeted, more effective ch, we have mapped out the relevant options. development of solutions for smoke and dust Process gas from the Sauda plant can be used collection. Multiple simulations using compu- for this purpose, and we are working on imple- tational fluid dynamics have provided us with a menting the new process at plant level. After basis for developing solutions for metal casting RESEARCH AND multiple tests and data collection, the project plants, extractor systems for crushing plants, and DEVELOPMENT has now entered the pre-engineering phase in venturi systems for furnace gas purification. partnership with the Eramet Group’s engine- We are dedicated to finding alternatives to cur- R&D activities are con- ering unit (Eramet Ingenierie) and potential rent handling methods for two by-products: slag ducted across organizational boundaries by suppliers. from SiMn production and sludge from exhaust the Trondheim-based Another principal area of raw materials rese- gas purification. In the former case, we have development group arch is how carbon materials can be best used made contact with several potential users of working in partnership as reducing agents. In 2013 the focus was on the slag, especially in the concrete, cement and with the plants. systematic characterization of coke, expanding asphalt industries. We have conducted a series Some of the R&D the scope for using alternative carbon materi- of tests to characterize the slag. In the case of projects are conducted als, and the launch of a project aimed at using sludge, we have identified a solution requiring under joint programs more biocarbon. minimal investment to recycle some of the slud- with the Eramet ge in existing furnaces. We have also demon- Group’s research cen- FUME strated an effective agglomeration method for tre (Eramet Research), research and educatio- On the environmental side, we are working this material. nal institutions (especi- on three main areas: monitoring various ally NTNU and SINTEF), emissions, recycling by-products, and energy SCORE and the Norwegian recovery. Emissions monitoring has been a In the longer term, we are working on elimina- Ferroalloy Producers constant focus in recent years. A joint research ting sludge production completely through an Research Association (FFF). program involving FFF (in particular the FUME innovative gas process under development in project for basic research in modelling and the FFF-sponsored SCORE project. In the energy measurement technology) and our develop- recovery field, our focus has been on capturing ment group in Trondheim (with expertise in thermal energy from slag and metal produ- applied modelling at the pilot project stage and ced during the casting process. We have been field testing in the plants) has been a parti- working with Teknova and the Eyde Network to cular success. Firstly, this has led to significant conduct experiments, calculations and mea- improvements in emissions monitoring thanks surements, and we have been in touch with to the installation of equipment that has been potential suppliers.

32 ERAMET NORWAY Eramet Norway believes that the following are R&D – PAVING THE WAY key features of a thriving TO A CLEANER FUTURE industrial region: Inclusive

corporate culture equally distributed and stable pays off welfare benefits

a competitive, profitable and dynamic local economy

Eramet Norway bolsters its competitive position Benefits of Eramet Norway’s commitment to by promoting strong local corporate social responsibility: communities around our ample access to skills processing plants. • The owner-stakeholders receive a return on and expertise invested capital in line with expectations. • The employees enjoy security for themselves and their families. • Suppliers have a demanding customer. • Customers receive quality products on time. • The environment suffers minimal harm. • Eramet Norway is proactive in adapting its a variety of operations to the surrounding environment. employment • Eramet Norway produces useful products opportunities, housing options that the world needs in an environmentally and amenities efficient manner.

Collaborating for knowledge Supporting the local community

Through our membership of forums such as Grenland Eramet Norway supports clubs, organizations, Industrial Cluster, the Eyde network and EnergiRike, we cultural activities and individual events at each of its are committed to sharing knowledge among regulatory production locations. It is important that the local authorities, politicians, centres of expertise and our own community around our company continues to pro- industry on major issues of mutual concern. vide opportunities for cultural and leisure activities.

SUSTAINABILITY REPORT 2013 33 ENVIRONMENT AND SUSTAINABILITY

A processing industry treading carefully

The goal of all Increased wastewater use currently investing in measures at the Eramet Norway’s pro- At Kvinesdal, we use furnace gas to Kvinesdal plant designed to reduce generate electricity in our own power emissions while improving the work jects and improvement station, while hot water is used by fish environment. Similar measures are programs is to reduce farmers and other local businesses. already in place at Sauda and Pors- the company’s environ- At Porsgrunn, we supply gas to Yara grunn. At the same time, a smoking from our furnaces. At Sauda, internal ban has been introduced throughout mental footprint. reuse of furnace gas is increasing year the Kvinesdal plant with the aim of on year, while we are taking specific encouraging employees to adopt a Eramet Norway operates state-of-the- steps to improve the plant’s perfor- healthy lifestyle. art processing plants that are noted mance in terms of energy efficiency for their flexibility and their focus on and emissions. Stricter landfill regulations environmental protection and energy We are currently working hard to conservation. Our goal in all our pro- We incorporate waste heat recovery improve Eramet Norway’s landfill jects and improvement programs is to systems in all real-estate constructi- disposal facilities for furnace sludge. A reduce the company’s environmental on and renovation projects, thereby new landfill site is under construction footprint. ensuring that internal consumption of at Kvinesdal, while Sauda is working wastewater will gradually increase. on an application for a new landfill. The Kvinesdal plant produces only 20 Old landfills will be closed in line with per cent of the emissions to air and Emissions reduction new, stricter regulations, and newly water permitted under the terms of Although the processing plants constructed landfills will incorporate its licence. The figures for the Sauda operate well within the limits of their a new method for water treatment, and Porsgrunn plants are similarly licences, we would like to see a further which is still under development. All impressive, at 20.4 and 18 per cent reduction in emissions. One area we the projects and improvements under of permitted emissions respectively. are focusing on is reducing various way at our plants are a manifestation Finding ways to conserve energy and emissions on the shop floor and to of Eramet Norway’s desire to reduce reuse waste heat from our furnaces is the atmosphere. To this end, we are the environmental footprint of our an integral part of our business. industry.

CREATIVE RECYCLING From the outset, Eramet Norway’s processing plants have been conscious of their social responsibility. But employee housing and welfare benefits are not the only ways in which the company gives back to the community. Our drive for energy efficiency has led to some creative solutions. At Sau- da, for instance, waste heat from the plant is used to heat the recreation centre and to keep the golf course and the pedestrian zone snow-free all year round. At Kvinesdal, waste heat is supplied to external users, including a fish farm and several warehouses and workshops.

34 ERAMET NORWAY Our goal: to reduce the environmental footprint of our industry 36 ERAMET NORWAY Sustainable onshore industry is the way forward for Norway. Since 2001 we have invested almost half a billion kroner in developing and installing new, tenvironment-friendly technology.

SUSTAINABILITY REPORT 2013 37 In 1989 we emitted more zinc in 1 day than we emitted in 5 weeks in 2011.

In 1994 we emitted more manganese in 1 day than we emitted in 10 weeks in 2011.

In 1989 we emitted more PAH in 1 day than we emitted in 1 year and 9 months in 2010–11. ERAMET NORWAY SAUDA

Hg/Pb/Total (As, Cd, Cu, Cr) DUST, SO2, CO2 emissions to the air 2007-2013 emissions to the air 2007-2013

50 – – 350 000 50 – 45 – – 300 000 45 – 40 – 40 – 35 – – 250 000 35 – 30 – – 200 000 30 – 25 – 25 – – 150 000 20 – 20 – 15 – – 100 000 15 – 10 – 10 – – 50 000 5 – 5 – Dust and SO2 tonnes/year Kg/year 0 – – 0 CO2 tonnes/year 0 – 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013

Dust emissons SO2 emissions CO2 emissions Hg emissions Pb emissions Total (As, Cd, Cu, Cr) Emission limits: Emission limits: Dust = 35 tonnes/year SO2 = 50 tonnes/year Hg = 36 kg/year Pb = 100 kg/year sum (As, Cd, Cu, Cr) = 50 kg/year

ZINC/MANGANESE COPPER/TOTAL (AS, CD, CR, PB) emissions to Saudafjorden 2007-2013* emissions to Saudafjorden 2007-2013*

350 – 180 – – 40 224 300 – 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/year 0 – Copper kg/year 0 – – 0 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013

Diss. 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 2007-2013* PAH emissions to Saudafjorden 2007-2013*

4 000 – 50 – 3 500 – 45 – 40 – 3 000 – 35 – 2 500 – 30 – 2 000 – 25 – 1 500 – 20 – 15 – 1 000 – 10 – 500 – 5 –

Kg/year 0 – Kg/year 0 – 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013

Particles emissons Emission limits PAH emissions Emission limits

*Emissions from purifying plants. WASTE

KATEGORI 2012 2013 KATEGORI 2012 2013 Slag 0 tonnes 0 tonnes Paper and cardboard 15 tonnes 5.2 tonnes Sludge and dust (landfill) 4 745 tonnes 4 614 tonnes Wood waste 154 tonnes 133.2 tonnes Residual waste 123 tonnes 229.2 tonnes Plastic 3 tonnes 6 tonnes Metal waste 366 tonnes 332.5 tonnes Asphalt 22 tonnes 84.8 tonnes Special waste 266 tonnes 35.1 tonnes ERAMET NORWAY PORSGRUNN

Hg/Pb/Total (As, Cd, Cu, Cr) DUST, SO2, CO2 emissions to air the 2007-2013 emissions to air the 2007-2013

70 – – 200 000 40 – – 100 – 180 000 – 90 60 – 35 – – 160 000 – 80 30 – 50 – – 140 000 – 70 25 – 40 – – 120 000 – 60 – 100 000 20 – – 50 30 – – 80 000 15 – – 40 20 – – 60 000 – 30 10 – – 40 000 – 20 10 – – 20 000 5 – – 10 Total As, Cd, Cu, Cr – kg/year

Dust and SO2 tonnes/year 0 – – 0 CO2 tonnes/year Hg, Pb – kg/year 0 – – 0 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013

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 = 15 kg/yearr Pb = 150 kg/year Total (As, Cd, Cu, Cr) = 50 kg/year

ZINC/MANGANESE COPPER/TOTAL (AS, CD, CR, PB) emissions to Frierfjorden 2007-2013* emissions to Frierfjorden 2007-2013*

24 – 90 – – 10 22 – 80 – 20 – – 8 18 – 70 – 16 – 60 – 14 – – 6 50 – 12 – 40 – 10 – – 4 8 – 30 – 6 – 20 – 4 – – 2 2 – 10 –

Kg/year 0 – Copper kg/year 0 – – 0 Total (As, Cd, Cr, Pb) – kg/year 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013

Diss. zinc emissions Manganese emissions Copper emissions Total emissions (As, Cd, Cr, Pb) Emission limits: Dissolved zink = 50 kg/year Manganese = 50 kg/year Emission limits: Copperr = 100 kg/year Total (As, Cd, Cr, Pb) = 10 kg/year

PARTICLES emissions to Frierfjorden 2007-2013* PAH emissions to Frierfjorden 2007-2013*

500 – 5,0 – 10 10 10 10 10 10 10 450 – 4,5 – 400 – 4,0 – 350 – 3,5 – 300 – 3,0 – 250 – 2,5 – 200 – 2,0 – 150 – 1,5 – 100 – 1,0 – 50 – 0,5 –

Kg/year 0 – Kg/year 0 – 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013

Particles emissons Emission limits PAH emissions Emission limits

*Emissions from purifying plants. WASTE

CATEGORIES 2012 2013 CATEGORIES 2012 2013 Slag 89 203 tonnes 86 377 tonnes Hazardous waste 50 tonnes 43.3 tonnes Sludge and dust (landfill) 3 398 tonnes 5 100 tonnes Paper and cardboard 5.0 tonnes 3.8 tonnes Residual waste 130 tonnes 121.5 tonnes Wood waste 132 tonnes 154.6 tonnes Metal waste 73 tonnes 67.5 tonnes Plastic 20 tonnes 13.8 tonnes

40 ERAMET NORWAY KVINESDAL

Hg/Pb/Total (As, Cd, Cu, Cr) Hg/Pb/Total emissions to air the 2007-2013 (As, Cd, Cu, Cr) emissions to the air 2007-2013 DUST, SO2, CO2 emissions to the air 2007-2013

15 – – 300 000 120 – – 15 14 – 110 – 61,6 – 14 13 – – 250 000 100 – – 13 12 – – 12 11 – 90 – – 11 10 – – 200 000 80 – – 10 9 – 70 – – 9 8 – – 150 000 60 – – 8 7 – – 7 6 – 50 – – 6 5 – – 100 000 40 – – 5 4 – 30 – – 4 3 – – 50 000 20 – – 3 2 – – 2 1 – 10 – – 1

0 – Hg and Total (As, Cd, Cu, Cr) – kg/year Dust and SO2 tonnes/year 0 – – 0 Tonnes CO2/year Pb kg/year – 0 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013

Dust emissions SO2 emissions CO2 emissions Pb emissions Hg emissions Total (As, Cd, Cu, Cr) Emission limits: No emission limits Emission limits: Hg = 15 kg/year Pb = 150 kg/year Sum (As, Cd, Cu, Cr) = No emission limits

ZINC/MANGANESE COPPER/TOTAL (AS, CD, CR, PB) emissions to Fedafjorden 2007-2013* emissions to Fedafjorden 2007-2013*

120 – 24 – – 50

110 – 22 – 31,6 – 40 100 – 20 – 90 – 18 – – 35 80 – 16 – – 30 70 – 14 – – 25 60 – 12 – 50 – 10 – – 20 40 – 8 – – 15 30 – 6 – – 10 20 – 4 – 10 – 2 – – 5

Kg/year 0 – Copper kg/year 0 – – 0 Total (As, Cd, Cr, Pb) – kg/year 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013

Diss. zinc emissions Manganese emissions Copper emissions Total emissions (As, Cd, Cr, Pb) Emission limits: Dissolved zinc = 240 kg/year Manganese = 420 kg/year Emission limits: No emission limits

PARTICLES emissions to Fedafjorden 2007-2013* PAH emissions to Fedafjorden 2007-2013*

1 000 – 3,0 – 24 24 24 24 24 24 24 900 – 2100 2100 2100 2100 2100 2100 2100 800 – 2,5 – 700 – 2,0 – 600 – 500 – 1,5 – 400 – 300 – 1,0 – 200 – 0,5 – 100 –

Kg/year 0 – Kg pr. år 0 – 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013

Particles emissons Emission limits PAH emissions Emission limits

*Emissions from purifying plants. WASTE

CATEGORIES 2012 2013 CATEGORIES 2012 2013 Slag 87 430 tonnes 184 547 tonnes Hazardous waste 19.9 tonnes 13.2 tonnes Sludge and dust (landfill) 13 322 tonnes 11 131 tonnes Paper and cardboard 7.2 tonnes 7.2 tonnes Residual waste 127.7 tonnes 99.3 tonnes Wood waste 4.2 tonnes 36.9 tonnes Metal waste 82 tonnes 107.2 tonnes Plastic 4 tonnes 4.7 tonnes HES

SAUDA

INJURY FIGURES H1 AND ABSENCE DUE TO ILLNESS HES figures

Absence due to illness in percentage and H-value KATEGORI 2012 2013

H-value % absence due to illness Absence due to illness 5.8 % 5.1 % 15 Injuries w/ absence 4 1 10 Injury figures H1 (H-figures) 11.1 2.7 5 Undesirable incidents - environmental 152 91

0 year Complaints from neighbours 45 30 06 07 08 09 10 11 12 13 Violation of discharge permit 0 0

PORSGRUNN

INJURY FIGURES H1 AND ABSENCE DUE TO ILLNESS HES figures

Absence due to illness in percentage and H-value KATEGORI 2012 2013

H-value % absence due to illness Absence due to illness 5.3 % 5.6 % 15 Injuries w/ absence 0 0 10 Injury figures H1 (H-figures) 0 0 5 Undesirable incidents - environmental 59 40

0 year Complaints from neighbours 11 9 06 07 08 09 10 11 12 13 Violation of discharge permit 0 0

KVINESDAL

INJURY FIGURES H1 AND ABSENCE DUE TO ILLNESS HES figures

Absence due to illness in percentage and H-value KATEGORI 2012 2013 Absence due to illness 6.2 % 5.4 % 20 H-value % absence due to illness

15 Injuries w/ absence 0 1

10 Injury figures H1 (H-figures) 0 2,7

5 Undesirable incidents - environmental 12 0 0 year Complaints from neighbours 2 0 06 07 08 09 10 11 12 13 Violation of discharge permit 0 0

42 ERAMET NORWAY Eramet Norway’s greatest asset is its highly trained and highly motivated workforce.

SUSTAINABILITY REPORT 2013 43 ENVIRONMENTAL INCOME 2013 41 57 Environmental income is based on sale of CO2 gas to Yara’s ammonia factory at Herøya in Porsgrunn for just MNOK MNOK under MNOK 41, and sale of manganese dust for MNOK 57. SALES OF CO-GAS TO YARA SALES OF MANGANESE DUST

CONTRIBUTION TO PARTNERS 2013 Simplified presentation of contribution to partners:

BN NOK % Comments Suppliers 2 378 72 % Purchase values excluding value added tax Employees 309 9 % Amount paid to employees deducted income-taxes transferred to authorities Authorities 144 4 % Employer’s contributions + employees’ taxes + property tax + environmental tax + corporate taxes + consumer tax on energy + customs Banks 225 7 % Financial items net (including foreign exchange items) Company, group and owners 267 8 % Reflects profit/dividend, corporate costs, depreciation, etc. SUM 3 324 100% 3324 MNOK Banks Company, group and owners Authorities 7 % CONTRIBUTION TO PARTNERS 2013 9 % 4 % Suppliers Employees CONTRIBUTION 72 % TO PARTNERS 9 % 2013

INVESTMENTS 2002-2013 Yearly investments for Porsgrunn and Sauda during the period 2002–2013, and Kvinesdal for the period 2010–2013.

2 PLANTS (PORSGRUNN AND SAUDA) 3 PLANTS

Year: 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 TOT* Environment and Safety investm. 29 20 27 11 24 27 25 11 18 43 113 37 505 Other investments 46 37 75 132 61 86 192 40 166 81 144 103 1226 TOTAL INVESTMENTS 75 57 102 143 86 113 217 51 184 123 257 140 1731

*) The total figure includes the year 2000.

MNOK Rehabilitation Sauda furnace 12 Rehabilitation Sauda furnace 11 Rehabilitation Kvinesdal furnace 1 250 Mercury cleaning at Rehabilitation Porsgrunn furnace 10 200 Sauda/Porsgrunn Rehabilitation Porsgrunn furnace 11 (approx. 100 BN NOK) Sauda MOR-filter 150

Sauda Furnace 12 relining 100

0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Other investments Environmental and security investments

44 ERAMET NORWAY 57 PROFIT & LOSS STATEMENT FOR 2012 AND 2013 MNOK History of the Sauda, Porsgrunn and Kvinesdal plants. Figures are in MNOK. Last year 2013 Previous year 2012 Change % GROSS INCOME 4 336 4 854 -518 -11% Cost of used materials and inventory change -2 547 64 % -2 659 66 % 112 4 % Wages-, salaries and social cost -412 10 % -398 10 % -14 -3 % Depreciation of assets -273 7 % -259 6 % -14 -5 % Electric energy and other operating cost -718 -3 950 18 % -708 -4 025 18 % -10 -1 % OPERATIONAL RESULT 167 311 -144 -46 % Interest-/financial cost -225 -208 -17 -8 % Corporate taxes 21 -29 50 173 % NET RESULT -37 74 - 111 -151 % 18 % Electrical power and other operational expenditures. 64 % 7 % DISTRIBUTION Costs for stock and OF OPERATIONAL Plant depreciation changes in stock write-offs 10 % COSTS 2013 Salaries/wages and social benefits costs TURNOVER AND OPERATING RESULT 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Accumul. 2002-2013 History of the Operational result 1 538.0 746.0 442.0 1 431.0 3 956.0 -1 074 1 390.0 419.0 311.0 167.0 9 643.0 Sauda, Porsgrunn and Kvinesdal plants. Turnover 4 343.0 3 573.0 3 296.0 4 446.0 7 536.0 3 306.0 5 260.0 4 850.0 4 336.0 4 117.0 49 961.0 Figures are in Operating margin 35.4 % 20.9 % 13.4 % 32.2 % 52.5 % -32.5 % 26.4 % 8.6 % 7.2 % 4.0 % 19.3 % MNOK.

7950.0 7 536.0 7450.0 6950.0 6450.0 5950.0 5 260.0 167 5450.0 4950.0 4 343.0 4 446.0 4 850.0 4450.0 4 336.0 4 117.0 MNOK 3 956.0 3950.0 3 573.0 OPERATING RESULTS 2013 3450.0 2950.0 3 296.0 3 306.0 2450.0 1950.0 1 538.0 4117 1 431.0 1 390.0 1450.0 950.0 746.0 442.0 419.0 311.0 MNOK 450.0 167.0 TURNOVER 2013 0.0 -450 -950 -1450 -1 074.0 -1950 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

FIGURES ARE IN MNOK Operating results Turnover

SUSTAINABILITY REPORT 2013 45 OBJECTIVE se goals. All co-workers have the responsi- ERAMET bility to create a safe internal work environ- NORWAY ment, to protect the external environment Eramet Norway shall conduct its business and to protect the company’s resources and HES activity in such a manner that the potential equipment. Each employee has a personal harms to health, environment and safety responsibility to protect himself/herself POLICY will be as low as possible throughout the and to follow established instructions and entire value chain. guidelines for safely completing work tasks. The manufacture of metals, materials and other products will be completed via IMPROVEMENT resource-effective processes that take into account health, the environment and safety. Eramet Norway shall be an environmentally Health, environment and safety are inte- conscious company, with a safe working grated in Eramet Norway’s management environment that protects its employees, system. Potential undesired incidents as its facilities and assets. Planned, continual well as suggestions for improvement shall improvement in HES achievements and pre- be carefully considered and form the basis vention of environmental harms will be the for continual improvement. Reporting of basic goal for all activity in the company. undesired incidents will provide the basis for implementing and carrying out correcti- ve and preventive measures, and thus shall PRIORITIZATION be the object of close attention.

Helse-, miljø- og sikkerhetsaktiviteter skal PREVENTION være en integrert del av driften. Vårt viktig- ste hensyn er å verne våre egne ansatte og andre som berøres av vår virksomhet, mot Risk assessment shall be the basis for HES arbeidsulykker og helseskader. procedures and practices and shall be a Alle gjeldende lover og reguleringer på basic preparatory measure prior to any området samt andre krav selskapet slutter proposed change, as well as in planning seg til, skal overholdes. and investment. Potential hazards shall be Miljø- og sikkerhetsaspekter skal alltid identified and assessed. Undesired incidents vurderes og tillegges vekt når beslutnin- such as near mishaps, accidents, injuries to ger om investeringer, driftsmetoder og health and harms to the environment shall endringer skal fattes. be registered and investigated to determine the root cause and to prevent recurrence.

RESPONSIBILITY FOLLOW-UP

Managers at all levels have total responsibility for HES within their respective areas In order to ensure compliance with laws of responsibility. They are responsible and public regulations as well as respect for for planning, organizing, training and for Eramet’s own environmental goals, policies conducting health, environment and safety and guidelines, a system must be in place procedures, and for ensuring that practices for continual registration, reporting and comply with laws, public regulations and review. other decisions within their areas of responsibility. In their plans, managers shall set Eramet Norway shall publish an annual specific goals for improvement and seek the HES report. cooperation of the employees to attain the- Eramet Norway shall be an environmentally conscious company, with a safe working environment that protects its employees, its facilities and assets. SAUDA PORSGRUNN KVINESDAL PO. Box 23 - NO-4201 Sauda, PO. Box 82, NO-3901 Porsgrunn, Øyesletta 61, NO-4484 Øyestranda tel: +47 52 78 50 00/fax: + 47 52 78 50 02 tel: +47 35 56 18 00/fax: +47 35 55 36 10 tel: +47 38 35 72 00/fax: +47 38 35 11 28

Organization number:: 980 518 647 I E-mail: [email protected] I www.eramet.no The Manganese Source ®

NORSK AKKREDITERING QUAL 002/EMS 001 Tenk Kommunikasjon // Tenk tenkkom.no // Benjamin og Foto: Nordhagen // DSFOTO Trykket på miljøpapir. 100% resirkulert ISO 9001/ISO 14001/ISO 50001 SERTIFISERT BEDRIFT