Eramet Norway Sustainability report 2020 Key figures Eramet Norway refined products 53% PART 1 505 000 tonnes In this part of the report, we present 2020 raffinerte our company and what is important produkter 53% to us:

Operating revenues 501Sales 000 volume Our employees, our products and our social responsibility. (billion NOK) tonn 5,55 About Eramet Norway Our products • Editorial by • Manganese and 1 909 Bjørn Kolbjørnsen (CEO) raw materials • About our plants and • The significance of steel Current Operating Income Electrical energy R&D department 4 22 (mill. NOK) consumption (GWh) 670 Our corporate social Our employees responsibility • Safety and HR • Robust industrial regions • Continuous improvement • A global company with 741 000 14 high national value creation28 Employees CO2-emissions 532 (tonnes) HESE NOK 1 billion

ERAMET NORWAY Capital Expenditures PORSGRUNN VAT-number: Design and print: WERA AS P.O.Box 82, N-3901 Porsgrunn 980 518 647 Photo: Dag Jensen, Benjamin Nordhagen, Max Emanuelson, ERAMET Research, (mill. NOK) NOK 3.2 Phone: 35 56 18 00 DSFOTO, Erik Børseth, Eirik Spilling, Bruno Détante, Saudefaldene. [email protected] Nordic Swan Ecolab billions SAUDA P.O.Box 243, N-4201 SAUDA eramet.no Phone: 52 78 50 00 eramet.com

KVINESDAL Øyesletta 61, N-4484 Øyestranda NORSK 198 AKKREDITERING Phone: 38 35 72 00 QUAL 002/EMS 001 Capex since 2000

2 ERAMET NORWAY SUSTAINABILITY REPORT 2020 3 ABOUT ERAMET NORWAY

About Eramet Norway

OUR STRATEGIC GOALS In our industry, we aim to be:

OUT VISION The most Leading in Among The world’s climate and World-leading manufacturer refined the most safest environmentally manganese cost efficient workplace friendly of manganese alloys through alloys producers involvement, innovation and producer job satisfaction

– We work in a learning environment –

With its three smelters Eramet Norway is part of the French efficient logistics. Eramet Norway in Porsgrunn, Sauda and mining and metallurgy group ERAMET, produces metals that the world Kvinesdal, as well as an R&D- which has operations in 20 countries requires for the future zero emission and around 13,000 employees society, and we do so in a resource- department in Trondheim, worldwide. The Group is a major efficient way. The company is today Eramet Norway is a world- international producer of special alloys, one of the world’s cleanest producers leading producer of refined manganese, nickel and mineral sands of manganese alloys as a result of manganese alloys for the with a turnover of EURO 3.5 billion several years of systematic knowledge global steel market. in 2020, where of Eramet Norway’s building, targeted investments and turnover was NOK 5.6 billion. Eramet continuous development of the Norway is part of the manganese organisation. The work continues, and Eramet Norway is proud to be a part business, which also consists of the the company’s roadmap for climate of the Norwegian industrial history Group’s smelters in Marietta (US), and environment includes ambitious with more than a hundred years of Dunkerque (France), and CMM (Gabon), goals and development projects operation at the plants in Porsgrunn as well as the mine in Gabon. related to biocarbon, CCS and circular and Sauda, as well as production in economy, which is described in Part 2 Kvinesdal since 1974. The company has Operating smelters in Norway, located of this report. more than 530 employees. In addition, a considerable distance from our Eramet Norway welcomes each year main markets in Europe and North a large number of apprentices to do America, is solved through extensive their training at our plants. networks, solid agreements and

4 ERAMET NORWAY SUSTAINABILITY REPORT 2020 5 EDITORIAL

A steady course thanks "

We are working on several larger projects to solid experience and with longer time horizons: In 2021, Eramet Norway’s • We will use biocarbon as a reducing three manganese smelting a pro-active strategy agent in our furnaces to decrease the use Bjørn Kolbjørnsen of fossil carbon sources. plants will become a key part CEO Eramet Norway • Through the NewERA project, we will of ERAMET’s new manganese increase our process efficiency and reduce the consumption of electrical alloy business unit. This gives energy and carbon. The first stage is a pilot plant for energy recovery at the us a good starting point for plant in Sauda, with a planned start of Eramet Norway was not exempt when stood together and took care of each Research and development for a achieving our goal of being a the test phase in May 2021. the world changed drastically within other and the plants, we ended the reduced climate footprint world leader in our industry a few weeks during the first part of year with a financial result far better Eramet Norway is proud to be among • In addition, we are working on specific 2020. The strict restrictions resulted in than we had predicted at the start of the producers in our industry that have projects to manage the furnace and leading the way in gas, which is the main source of our a sharp reduction in the demand for the pandemic. the smallest climate footprint per tonne sustainability efforts. a number of products, including steel of manganese alloys, but the climate CO2emissions. where our products are an ingredient. Last year tested our competitiveness. crisis put pressure on development – CCU - solutions where the furnace gas Refined ferromanganese alloys, our Eramet Norway reduced its capacity and timelines. We have more is a resource in other product chains main product, is an important part of production by about 5% at a time than 50 projects in our climate, energy, – CCS - capture and storage of CO2. In steel grades used in the production when our largest competitors environment and circular economy 2021, we will conduct a pre-feasibility of cars, and this market disappeared experienced reductions of between roadmaps. They form the basis for how study with a view to install a carbon almost overnight. 25 and 40%. we are to realise of our ambitious, but capture test facility at our plant in necessary, objectives. Sauda. The sales team, located at the Group’s Safety first, for everyone, always! head office in Paris, moved to exploit 2020 also affected how we worked Our climate roadmap contains projects Steady course towards a more the crisis and capture new market to maintain our highest priority: The that will make it possible for us to reach sustainable future shares in a volatile market. We chose a health and safety of everyone who the goal of reducing greenhouse gas We believe the green shift represents a pro-active strategy and produced for as works with us. Our goal is that everyone emissions per tonne by at least 43% by significant growth potential for Norwegian long as we could. This situation lasted leaves work in as good health as when 2030 and 80% by 2050. The progress process industry, and this also requires a until the end of May when we were they arrived, and in a good mood after was admittedly slower in 2020 than we pro-active strategy and good cooperation. forced to reduce production due to the working in a safe environment with anticipated due Covid-19 restrictions, Eramet Norway has been involved in decline in order availability. committed colleagues. As a result of but we reached our goal in a subproject «Prosess21», a strategic co-working project Covid-19, we introduced strict infection in the category ’changing raw materials for the Norwegian process industry. The As a part of our strategy, we made control rules that our staff have loyally and adapting our production processes Group has presented recommendations sure we were ready to rapidly increase followed to protect themselves, others to reduce CO2emissions’. The project is for reducing emissions and facilitating production again - we kept our and our plants. related to silicomanganese production sustainable growth. Norway’s world-leading organisation in place and had raw (SiMn) and is the result of systematic position in climate and environmental materials in stock and equipment In 2020, we reduced our injury rate process development work at the solutions gives us a head start, and available. This proved to be the right by half, from 8.1 to 4, however, we did plant in Porsgrunn. Greenhouse gas good collaboration between political approach, and by summer, we could experience incidents with high injury emissions from our SiMn furnace was authorities, industry and employees will be once again increase our production. potential. This gives us motivation to reduced by about 8%, and we will now a prerequisite for further success. Several of our competitors had strengthen our efforts in implementing apply this knowledge to our other three reduced their production or suffered our ’All for Zero’ programme, with SiMn furnaces in Kvinesdal. As the pandemic enters its second year, delivery problems which led to market extra focus on risk understanding, we are more prepared and have more shortages and a subsequent price hike. implementation of ’Essential experience, which will serve us well in our Thanks to our strategy, solid experience (safety) requirements’ and safety efforts to keep a steady course towards a and employees who were flexible, conversations. more sustainable future.

6 ERAMET NORWAY SUSTAINABILITY REPORT 2020 7 LOCATIONS

Built on renewable energy, Eramet Norway Eramet Norway and its Porsgrunn skilled workforce, are part Porsgrunn Population: of the highly competitive Finnsnes (Finnfjord) Norwegian process 36 400 industry. The smelter, established in 1913, is part of the leading industrial cluster on Herøya. This location provides great opportunities for cooperation and further development of processes and working methods, including in areas like circular economy.

Salten (Elkem) Eramet Norway Porsgrunn specialises in refined ferromangan alloys, and with its two furnaces and refining facility (Manganese Oxygen Refining - MOR), the smelter is our most flexible processing plant in terms of product qualities. 162 Mo i Rana (Elkem, Ferroglobe) Employees Environmental milestones since 2000:

Mosjøen (Alcoa) Ferroalloys 2000 Mercury cleaning facility (MRU) 16 Aluminum Apprentices 2002 Centre chimney filter Furnace 11 Other process industries 2007 MOR filter extended

2011 New centre chimney filter Furnace 11

2015 Optimisation of final cleaning facility (SRA)

2018-19 Measures to reduce noise: new doors, gates, isolated walls, sound silencers and fans/equipment

Sunndal (Hydro) 2020 Pilot “New process water cleaning concept” (SRA) Orkdal (Elkem) Kyrksæterøra (Wacker) 2020 Project for measurement and analysis of content of dust downfall

Svelgen (Elkem)

Årdal (Hydro) Høyanger (Hydro)

Kvam (Elkem)

Tyssedal (Eramet TTI) Husnes (Hydro)

Eramet Norway Sauda

Karmøy (Hydro)

Eramet Norway Kvinesdal Eramet Norway Porsgrunn

Lista (Alcoa) Lindesnes (Hydro) Kristiansand (Elkem)

8 ERAMET NORWAY SUSTAINABILITY REPORT 2020 9 LOCATIONS

Eramet Norway Eramet Norway Sauda Kvinesdal

Sauda Population: Kvinesdal Population: 4 600 6 000 The smelter, locally referred to as ‘the factory’, is located at the city centre and has Eramet Norway took over the smelter in Kvinesdal from Tinfos in 2008. The been a large part of the local community ever since its establishment. The plant plant started production in 1974 and has an efficient production flow with its remains an important partner in social and business development in the region. three silicomanganese furnaces and compact infrastructure. HCFeMn slag from the Sauda plant is used in the production, contributing to the company’s With its two furnaces and MOR facility, Eramet Norway Sauda is today the largest internal slag balance, and is an excellent example of circular economy. manganese smelter in Europe. The plant is a world leader in the production of refined ferromanganese, which accounts for about 80% of the plant’s turnover. A thermal power plant was built next to the smelter in 1981. The power plant The by-product HC FeMn slag from the production process is an important input 166 produces about 80 GWh of electrical energy per year, and the surplus heat is 200 factor in the production of silicomanganese in Kvinesdal. Employees used both internally and by external customers, including Stolt Sea Farms fish Employees farm for turbot which is located on the neighbouring plot. Environmental milestones since 2000: 29 22 Apprentices Environmental milestones since 2000: Apprentices 2000 Upgrade of water treatment plant (VRA) 2000 Cleaning facility for PAH 2002 Construction of heavy metals treatment plant (MRU) 2000 Mercury treatment plant (MRU) 2004 Construction of centre chimney filter 2015 New deposit established at Fossland 2010 CCT for dust emissions surveillance 2016 Extraction system above the casting beds 2012 New treatment plant at MOR 2018 New slag water system 2014/17 Watering system over sandbeds MOR and furnace house roof openings 2019 New centre chimney filter 2017 Continuous laser measurements of dust in furnace hourse 2020 Improvement of mercury treatment plant (MRU) 2020 New slag casting smoke extraction system

10 ERAMET NORWAY SUSTAINABILITY REPORT 2020 11 R&D DEPARTMENT

Our most important research Eramet Norway’s collaborations and research Trondheim partners R&D department in Population: 207 600 NTNU Trondheim NTNU, the Norwegian University of Science and Technology, is the country’s largest and leading educator of engineers and civil engineers. The disciplines range from nanotechnology and IT to petroleum engineering and ship design. NTNU cooperates with some of the country’s most important Eramet Norway’s R&D department develops technological solutions technology and industrial companies and has its own and innovations to produce more efficiently and to further reduce research environments. Eramet Norway cooperates mainly our climate and environmental footprint. 4 with the Department of Material Technology The department cooperates with Eramet IDEAS, the Group’s Employees SINTEF technology centre in France, and with leading universities, research institutes, clusters and other companies. The cooperation projects SINTEF is a broad, multidisciplinary world-leading research have an annual budget of about NOK 250 million. Many of these institute with international expertise in technology, science, projects are supported by the Research Council of Norway, Enova medicine and social sciences. SINTEF conducts commissioned and Innovation Norway. research as an R&D partner for business and local authorities and is among the four largest mission research institutes in Europe. Priority topics to further develop our leading position in the Eramet Norway cooperates mostly with SINTEF Industry, in addition manganese alloys business are: to projects with SINTEF Energy and SINTEF Digital. • Climate and energy • Circular economy • Increased MOR production (refined FeMn) • Optimalisation of silicomanganese production • Digital Transformation Swerim RISE PFI FFF

NORCE Swerim is a Swedish RISE PFI is an The Norwegian Ferroalloy leading metal research internationally Producers Research NORCE Norwegian institute that conducts recognised research Association (FFF) is the most Research Centre AS was research and development institute in processes important arena for the founded in July 2017 and around metals and and products based industry’s joint research. The is one of Norway’s largest processes from raw on lignocellulose. organisation was founded independent research materials to finished PFI’s priorities by the Norwegian ferroalloy institutes. NORCE delivers products. The institute’s are biorefining industry to collaborate research and innovation goal is to strengthen the and bioenergy, on research on ferroalloy in energy, health, climate, industry’s competitiveness fibre technology processes and products. environment, society and through increased and applications, technology to contribute product quality, higher nanocellulose and FFF goal is to support the to required innovation and resource efficiency carbohydrate polymers Norwegian ferroalloy industry restructuring together with and more sustainable and bio composites. to maintain its leading business and the public production processes. position. Eramet Norway and sector. Their solutions By being a strategic R&D RISE PFI AS is part Elkem are the two largest respond to key social partner, the company of the Swedish partners in FFF, and together, challenges and contribute wants to strengthen the research institute RISE, the companies contribute to value creation locally, competitiveness of its Research Institute of almost 80% of the funding. nationally and globally. customers and contribute Sweden AB. to the development of new processes, materials and product solutions. 12 ERAMET NORWAY Foto: Erik Børseth SUSTAINABILITY REPORT 2020 13 HEALTH AND SAFETY

Our slogan is «Safety first, Injury rates 14 13,3

for everyone, always». The TRI: Number of injuries with and 12 11 9,2 ambition to improve our safety without absence per million working 10 hours. The columns show the number 7,8 8,1 Safety first, outcomes was challenged in of injuries with absence for our own 8 7,1 employees and contractors. 5,8 early 2020 by the pandemic. 6 5 4 4 4 Although several planned 4 Contractors activities and measures were 2 2 for everyone, Employees 2 forced to take a different TRI rate 0 form due to the implications 2014 2015 2016 2017 2108 2019 2020 always of the pandemic, we can still conclude that 2020 showed a positive trend. However, our work is far from done, and we environment and building trust, and In the autumn of 2021, the goal is to assistance both in production and in will strengthen our efforts to in order to do this we need to create implement ‘colleague talks’ as a tool in maintenance work: an environment where everyone the safety and development work. achieve zero injuries. • 90% of the time is spent in different is comfortable to speak up: to be departments at the plants. able to talk about safety, including Safety coaches: «Boots on the • The focus is to increase competence, There are particularly two initiatives helping or correcting each other, in a ground» contribute to desired behaviour and which we introduced in 2020, which constructive way. Eramet Norway has, It is at the plants that the results of encourage reflection on risk and we believe will greatly contribute to in collaboration with Kulturkompaniet, our safety work, both the structural prevention in work situations. improve our safety results further. launched a programme called ’Bry deg’ and cultural, becomes visible. It is here (care), where employees and managers we see what is actually happening, • Follow up on measures and Creating a climate for through theory, practical exercises and what challenges we face day-to-day, processes we already have speaking up reflection practice to: and what people are really concerned underway or are in the process of establishing: Take5, SJA, 5S, Essential To achieve good safety performance • care about and look out for one about, and as a result, this is where Requirements, Safety Rounds, High over time, we are dependent on the another we can have the most impact. To interaction between structure and strengthen our safety culture, we Risk Potential incidents, Green Zone • intervene in dangerous situations culture. It is not enough to just have and have established a two-year project etc. improve routines and systems, we must • have the potentially difficult position as safety coach at each of our also take ownership and responsibility conversations with colleagues three plants. The safety coaches were through looking out for one another to ensure that this feels OK and recruited from own ranks and were and by complying with the rules which becomes a positive experience, and selected on the basis of: together improve the safety level. The safety coach we have established. • extensive work experience is a successful initiative from production or to improve the safety level at If we use the analogy of the house and The plant organisation in Porsgrunn, maintenance – it was our plants. The key success factor the home for structure and culture, the in addition to some staff from our also favourable to have is that we use competent persons structure is the house and consists of all joint functions, participated in the ’Bry experience from other with the right attitude and operational formal structures which are in place to deg’ sessions, which were held the companies experience who spend most of their time ensure safety. This includes procedures, autumn of 2020. The feedback was • their clear commitment out and about. I am very pleased by the routines, rules, physical barriers, that this was perceived as interesting, to safety and good work that has been done so far and look organisation and hierarchy, methods, relevant and partly also challenging. understanding of risk forward to see the long-term results in analyses, protective equipment etc. The sessions are part of a long-term safety attitude and culture.” • their ability to Culture is what makes the house a development plan, and further events Sem Gysland, plant director, communicate home, what makes it our own, that we will take place in 2021, both digital and Eramet Norway Kvinesdal take ownership of and care for it. This is in person (when circumstances allow). • that they enjoy working with created through leadership, dialogue, The main topics will be how to look people openness and respect. out for one another and how to create an environment where everyone feels The safety coaches help to improve We acknowledge that safety culture comfortable to speak up. the safety culture through practical is strengthened by creating a safe

14 ERAMET NORWAY SUSTAINABILITY REPORT 2020 15 HEALTH AND SAFETY

Sickness absence

Total sickness absence in A characteristic and a challenge of our Eramet Norway is an IA company Eramet Norway amounted sick leave is that accumulating absence (Inclusive Working Life). We are to 5.9% in 2020 compared to is largely due to long-term, often committed to preventing and chronic illness. The short absence (1-3 reducing sickness absence and 5.8% in 2019. Sickness absence days) is month by month in the interval avoiding exclusion from working life. is thus approximately on a 0.8-1.2%. Absence 4-16 days (rest of the An important contribution to further par with the smelter industry employer period) is also low (0.5 -0.7%) reducing sickness absence is to ensure in general (6.15% in 2020). In while the more prolonged absence earlier and closer dialogue between the comparison, sickness absence in constitutes the rest. manager and the person in question. the sectors which are included NAV (the Norwegian Labour and Absences lasting more than eight Welfare Administration) and the GP in the Federation Norwegian weeks amount to up to 2%. It can be together with the occupational health Industries was 4.91%. assumed that there is a connection service are used as counsellors and between this and the fact that the supporters where appropriate. average age of our employees is relatively high; about 50 years, as there We believe that a positive working is a correlation between severe, chronic environment characterised by disease and age. Another factor that involvement, innovation and job offers challenges is that our operations satisfaction is a prerequisite for success, depend on shift work. A significant and we strive to be a company that is proportion of our employees work inclusive and that has high level well- continuous shifts, and unfortunately, being and a safe working day. As an shift work can have a negative effect environmental measure both to reduce on health, and the burden of working the health burden and to increase shifts is often experienced as increasing well-being, continuous efforts are also with age. Since our proportion of shift being made to improve the physical working personnel is high, it is only environment, work processes and possible to relocate the person on private protective equipment. sick leave to a daytime position as an adaptation measure.

Sickness absence in %

2017 2018 2019 2020 5,8% 4,9% 5,8% 5,9%

16 ERAMET NORWAY SUSTAINABILITY REPORT 2020 17 HR

«Never waste Diversity is a focus area in the ERAMET Group’s a good crisis!» «roadmap for corporate social responsibility». A modern organisation mirrors our society and represents all people. Companies that are more diverse This quote by Winston Churchill is descriptive are better at innovation, people of Eramet Norway in 2020. Covid-19 hit us, like are more content, and the everyone else. This new reality has required companies are more profitable. change, and we have had to rethink, cooperate We have At Eramet Norway, our goal is differently and acquire new market shares. improved internal 30% women, but we are still communication, increased some way off at 13.5%. The Unlike many others, we did well in guidelines, but for many employee involvement, number of female apprentices 2020 despite the ongoing crisis. We people, working alone adopted new digital tools is about the same, but we have managed to avoid getting any virus without the daily interaction and greatly reduced the previously had a higher number, cases at our plants, and we kept our and meeting colleagues has number of business so this is an area we need to work operations going and sold everything been very lonely. In addition, the trips. on going forward. In the case of we produced. work connected to infection control female managers and specialists, and practical limitations to work our share is currently 27%, close When the Norwegian society closed situations have made work harder for to the ERAMET Group’s target of down on 12th of March, our crisis team our staff. 30%. were already assembled. We were particularly concerned about those of Many have put in additional hours market, operations We are also working to increase our employees who have underlaying and stretched themselves far to and infection control rules the proportion of women conditions and therefore at greater ensure that we delivered on our has been sent to all employees weekly The Group’s CSR roadmap through our recruitment work, risk. It was necessary to contact commitments. At times, we have via SMS. Training activities including includes specific goals. and by ensuring that women them directly and assess their work had a very high absence rate due brainstorming sessions and reflection are preferred if qualifications situation. We had an ongoing dialogue to quarantine, caring for children or exercises have been conducted In HR we are focusing the following: are equal compared to the male with our company health services, because the employee was in a risk digitally. applicants. and for about 30 people we either group. The absence rate peaked at • Ensure the health and safety of employees adapted their work situation where 17%, but we still managed to maintain Our IT department has provided good and subcontractors possible or sent people home until we a high production rate. support to the entire organisation, • Build skills and promote talent and career got a better overview. Luckily, so far, and we have received a technical and development everyone is doing well. We received introductory training knowledge boost that would normally in digital tools which have enabled take much longer. • Strengthen employee engagement An extensive scheme was introduced new ways of collaboration. Morning • Integrate and foster the wealth of diversity Our goal: which included strict restrictions on meetings have become digital so We have evolved as an organization • Be a company of reference in terms 30% the number of people who are allowed that more people can participate, and during this unusual year which have to meet and work together, the use digital improvement boards have been forced us to be more efficient and of respect for human rights in our women of home office working whenever established. We have also introduced flexible, improve involvement, increase field of activity possible, additional cleaning measures frequent meetings with trade unions our dialogue with our staff and provide and closures of our staff cafeterias. and our health services for information opportunities to do improvement work Employees faithfully followed the and dialogue. Information about the and training in new ways.

18 ERAMET NORWAY SUSTAINABILITY REPORT 2020 19 CONTINUOUS IMPROVEMENT OUR WAY OF WORKING

6. Sharing of lessons learned 1. Supportive Culture «Speak up about improvements» «Give feedback, ask questions and tell about mistakes»

• Evaluate and reflect upon activities • Encourage to provide feedback and present ideas • Describe the lessons learned • A culture of listening, dialogue and discussions • Share knowledge and experiences made across departments • Is allowed to make mistakes and to challenge existing practice and plants Engagement drives • Cooperate and help each other

5. Continuous improvement 2. Clear goals improvement «A little better every day» LEARNING «What do we need to deliver?» • Encourage new ideas and development ORGANIZATION • Understand your contribution to achieve through testing our goals • Develop ideas and provide feedback to create • See the connection between the a learning loop department’s and the company’s goals • Implement good ideas • Have knowledge about the company, and understand the totality of the business

Eramet Norway with its more than 100 years of production would not be here today if 4. Self-managed teams 3. Best Practice «Ensure smooth running of daily operations» «What is the best way to work?»

the smelters and their organisations had not continuously improved and developed. • Know the operation status at all times • Defined work standards and procedures • Assess the need for corrective measures and initiate the work • Follow work standards and challenge them in order to improve Today’s continuous improvement team are spread across the three plants and consist required immediately of six employees who work with the organisation to further develop our company.

As employees of Eramet Norway, we succeed with improvement work, we Improvement work at Eramet Norway develop ideas connected to their responsible for maintaining the quality work in what we call an ‘everyday acknowledge that: can be divided into three categories: everyday work life. The training system, and our compliance with learning environment’, which • There is always an improvement 1. Small daily improvements sessions introduced root cause the standards is regularly checked describes the interaction between analysis, and arenas were established by conducting internal and external potential in our processes 2. A3 for departments and plants: the people who operate and support to present and progress improvement audits. • There must be an acceptance of major improvements with local our plants, the technology that allows ideas and projects. This work will failure in order to improve ownership us to produce manganese alloys in continue in 2021. Eramet Norway’s digital journey a resource-efficient way, and the • Everyone must constantly look 3. NeWays projects: major There is a great momentum in the organisation of methods and tasks. at ways to reduce the waste of improvement projects with Quality in everything we do! implementation of projects related resources significant financial gains With the goal of having the smallest to digital transformation in the Eramet Norway has a culture built on • Everyone is encouraged to come up climate and environmental footprint ERAMET Group. Projects in progress a participation-based management with ideas «I have a problem» or and the highest energy efficiency in in Norway are among others: Big data, philosophy. In short, it is about trust, • The organisation must be developed «I have an idea» our industry, Eramet Norway is ISO automation in parts of the production and we know that it is the employees continuously In 2020, Eramet Norway started a certified on standards 9001 (quality), process, the use of machine learning who see the improvement potential project to train employees to describe 14001 (environment) and 50001 and IO smart sensors. • Everyone must ’go and look’ for ways and experience the problems in the problems they encounter and (energy management). The team are to improve their own work environment. To

Big Data in Kvinesdal A couple of years ago, Eramet as well as electrical and chemical understanding. The model helps process as a whole. The model the current state is discussed, and Norway started to learn more about variables, which are necessary to Eramet Norway control the furnaces presents the main lines, also in a the team agree on the next steps how Big Data and machine learning ensure that our production is safe better in order to achieve a higher historic perspective, and by using this to adjust and further improve the Advanced technology could be used in our processes, and and stable. The purpose of the Big process efficiency and thereby ensure extensive information, it is easier to processes. Adopted measures are improves traditional smelting this was the start of the Big Data Data project is to better control the that the furnaces deliver the desired identify the best scenarios. Big Data added to the model to provide industry. Eramet Norway has project in Kvinesdal. Big Data is, entire melting process by taking volume of the right quality at the right makes it possible to efficiently handle continuous learning and ensure increased the use of digital simply explained, new technology advantage of the large amount of time. large amounts of data so that the continuous improvement of the technology and mathematical that allows you to analyse larger and data which is already available from mixture of raw materials and process model, as well as increased process modelling to achieve better more complex amounts of data faster all these measurements. Production is continuous at Eramet conditions can be optimised. understanding. and more accurately than before. Norway’s three smelters. Common production processes. This project has developed a large practice is that operators monitor The analysis results are used This project includes two out of three Our furnaces are equipped with a computational model that allows all processes via screens in control at daily cooperation meetings furnaces in Kvinesdal, and the aim variety of sensors and measurements you to see how the data co-varies rooms, while the data from the between operators, managers and for the future is to include all the to monitor temperature and pressure, and thereby increase process model views the entire melting metallurgists. At these meetings, furnaces.

20 ERAMET NORWAY SUSTAINABILITY REPORT 2020 21 ABOUT MANGANESE

Manganese WHAT IS MANGANESE? production

Belonging to group 7 of the periodic Manganese is table, manganese is a metallic element essential for making with the chemical symbol Mn. Pure steel strong and manganese is a hard steel grey metal, ductible. Coke but it is readily pulverised. Carbon as reducing Ore agent Manganese source

Slagging Where do we find manganese? Gives slag better viscosity (fluidity) and enables correct Almost all manganese alloys produced is used as a component in steel to increase chemical composition for its strength, toughness and heat treatment abilities. There are large manganese obtaining optimal manganese deposits in the earth’s crust, about 900 ppm, making manganese the most reduction common heavy metal after iron. Manganese is extracted mainly from the mineral pyrolusite (MnO2), commonly known as manganese ore. More than 80% of the deposits are in South Africa and Ukraine. Other significant deposits are in China, THE MANGANESE PROCESS (FeMn) Australia, Brazil, Gabon, India and Mexico. Manganese is also found as nodules on Electrodes CO C (coke) MnO2 (manganese) CO the seabed in deep oceans. Supplies the process with 2 ­electrical energy – equivalent Surface Eramet Norway uses mainly ore from the ERAMET Group’s mines in Gabon, as well to the consumption of as ore from suppliers in South Africa. 20,000 households 2MnO2 + CO = Temperature in Mn O + CO charge: 200 0C 2 3 2 Our three Norway smelters process the ore into ferro- and silicomanganese alloys, Furnace Able to withstand extremely 3Mn O + CO = which are largely sold in the European and North American market. Our products 2 3 O Temperature in 2Mn3O4 + CO2 are primarily transported to our customers by boat. high temperatures – more than 2,000 C charge: 400 0C

Mn3O4 + CO = Temperature in 3MnO + CO charge: 800 0C 2 25

0 Coke 1 250 C MnO + C = Mn + CO Mn Slag Manganese Metal layer 1 400 0C

22 ERAMET NORWAY SUSTAINABILITY REPORT 2020 23 RAW MATERIALS

Our most important Key Figures 2020

factors of production 216 615 tonnes reducing agents Raw materials Every year Eramet Norway uses significant quantities of raw materials 881 969 115 416 in the production of manganese alloys. tonnes of tonnes quartz manganese ore The raw materials are mainly provided by foreign suppliers, but we purchase for example quartz and metallic silicon materials in Norway. The main raw materials used in our production are: • Manganese ore, where about half comes from the Group’s mine in 1 909 Gabon TWh total consumption • Metallurgical coke of smelting and auxiliary power • Silicon sources, including quartz 13 543 938 tonnes electrode paste tonnes of natural Energy consumption for the Søderberg gas and propane The total consumption electrodes of renewable electrical energy used in the melting processes and auxiliary power was 1.9 TWh in 2020. As thermal energy sources, the need for natural gas and World-class technology and equipment that make use of furnace, to the management of the propane was 938 tonnes. Eramet Norway has 100 years of modern management systems and crucial refining process, precision and Eramet Norway is also one of experience in producing various technology. Our employees master the experience are essential. With the help Norway’s largest consumers manganese alloys. We are today a technology, ensure good utilisation of of advanced control systems, every of industrial gases, especially world-leading producer of refined the equipment and work purposefully small part of production is monitored, liquid oxygen, which is mainly manganese alloys due to our talented to implement improvements. This and the laboratories continuously take used as a factor input in our employees who have gained expertise means that our processing plants samples to ensure the quality of both refining processes. through several generations and who have high stability and good capacity raw materials and finished goods. are willing to rethink, develop and step utilisation. Internal products up to improve. The plants also consume internal The refining process itself is today an products generated as part of our Although many of our buildings are advanced, high-tech process: from the production process, including metallic old, our plants are modern due to the optimal mixture of manganese ore fines, ferromanganese slag and filter continuous development of processes and coke combined and filled in the dust.

24 ERAMET NORWAY SUSTAINABILITY REPORT 2020 25 STEEL

GLOBAL STEEL PRODUCTION CONSUMPTION OF MANGANESE SALES BY REGION

Other Africa 25% Latin- 30% 57% ROW 66% The significance of steel in ROW China China America Europe

Middle- the zero-emission society East 505 000 1.9 BILLION 4% 24 MILLION TONNES North- TONNES TONNES America 5% North- 5% America Europe North- America 8% The world requires a drastic reduction in emissions to Europe air and water to prevent major changes in the world’s climate and environmental diversity, but although the production of steel and manganese alloys is resource- Steel Manganese alloys Our market position intensive, the products are crucial to society’s zero- In 2020, the world’s total The total consumption of manganese In 2020, Eramet Norway exported production of carbon steel alloys in 2020 was about 24 million close to 75% of our products to emission vision. amounted to about 1.9 billion tonnes, of which a massive 66% in customers in Europe and North tonnes. China accounted for 57% China. Europe and North America America. We work systematically to Steel is the world’s most widely used total manganese alloy production is of this, while steel production accounted for 9%, while the rest of the increase our market shares in other construction material in everything from used in the manufacture of carbon in our main markets, Europe world represented about 25%. Eramet regions and last year we sold more structures, industrial equipment and steel, which is of highly valued due and North America, accounted Norway does not sell manganese than 25% of our products outside cars to consumables. Steel, and thus to its usability. Global consumption for 8% and 5% of the total alloys to China. our main markets. also manganese alloys that make the of steel has more than doubled since respectively. steel ductile and durable, is therefore an the turn of the millennium and is The consumption of alloys in the world Eramet Norway is part of the Group’s essential input factor in transforming expected to increase in the years up More than a third of the world’s outside China (ROW) distributed manganese business which also important sectors such as energy to 2050. According to the World Steel steel production is used for among the different manganese alloy includes Eramet Comilog’s mine Steel is 100% generation and transport. Association, the recycling rate is now structures and infrastructure, products shows that silicomanganese in Gabon, as well as three smelters more than 80%. while about 20% is used for the (SiMn) amounts to 59%, High Carbon in France, the US and Gabon. Our recyclable and Robust, long-lasting infrastructure production of cars. Ferromanganese (HCFeMn) 28%, market shares of the standard can potentially is also crucial to creating economic refined FeMn 9% and Electrolytic products SiMn and HCFeMn are be recycled development and prosperity to meet manganese (EMM) 5%. Eramet Norway’s relatively low, while we are a world- the many challenges that come with main product is refined FeMn. leading player with a high market indefinitely population growth, urbanisation, poverty share of our main product, refined without losing alleviation and measures to reduce the FeMn. its properties negative effects of natural disasters. STEEL APPLICATIONS WORLD EXCL. CHINA

Steel can potentially be recycled 5% Oil & Gas Construction indefinitely without losing its properties. 5% EMM The Ref FeMn 59% Transportation SiMn On average in one tonne of steel about recycling rate ten kilograms of manganese alloys are is more than Durable used, and the proportion of manganese goods increases in accordance with the quality 80% 1.9 BILLION CONSUMPTION of the steel. Almost 90% of the world’s TONNES BY PRODUCT 28% HCFeMn

Automotives Machinery

26 ERAMET NORWAY SUSTAINABILITY REPORT 2020 27 PROCUREMENT

Report breach Our purchases of regulations contribute locally

Who can report? Examples of unwanted behaviour: Three different ways to report: Eramet Norway’s smelters contribute Employees, • Corruption, influence peddling, significantly to local and regional value Talk to your manager, HR or contractors, customers, conflict of interest one of the green helmets creation. Although our raw materials suppliers, neighbours • Violations of Human Rights and and others who have are mainly from foreign suppliers, we Fundamental Freedoms or a connection to the purchased goods and services locally for • Theft, embezzlement ERAMET Group. Log the report online at: NOK 661 million in 2020. • Discrimination, unequal treatment, https://eramet.integrityline.org sexual harassment • Fraud or • Anti-competitive practices Call +47 35 69 78 04 • Violation of procedures: health, The service is available 24/7 environmental regulations and safety • Crimes As part of the ERAMET Group, Eramet Below is an overview of our purchasing Norway achieves economies of scale, guidelines: and the Group has 15 Lead Buyers who • Climate Change Policy are responsible for the procurement • Responsible Purchasing Charter of critical goods and large purchase categories. Lead Buyers work across • Eramet Group’s Ethic Charter organisation has the greatest Anti-corruption In addition to good information all the Group’s units, and the purpose • Group Energy Policy influence by setting standards and Eramet Norway strongly opposes and information campaigns, a is to ensure efficiency by gathering • Biodiversity Policy requirements that support measures corruption of any kind and has comprehensive training module on purchasing power and market based on scientific objectives for the implemented the Group’s anti- anti-corruption and ethical guidelines • Group Health Policy understanding. reduction of greenhouse gases (The corruption directive, which contains is available to all employees of the We will use Group Sustainable Development • Intergovernmental Panel on Climate clear guidelines for anti-corruption ERAMET Group. sustainable Requirements for sustainable Policy Change (IPCC)). and ethics. Corruption is a risk to suppliers. suppliers • The Environmental Charter the company legally, economically The ERAMET Group is a responsible We welcome that a steadily increasing and reputationally, and all forms of financial player, and there are strict To read more about each policy, number of suppliers are establishing corruption are strictly forbidden. requirements for our activities at please visit: www.eramet.com targets for reducing greenhouse gas all levels, both through internal emissions. Innovation is a prerequisite It is important for Eramet Norway guidelines and national legislation The way forward: Sustainable for success, and together with our to clearly demonstrate its ethical in the countries where we operate. procurement “Scope 3” suppliers we are developing new corporate culture at all levels. In These requirements are at the centre The supply chain is called the technological partnerships and 2020, the company introduced a of our work to exercise corporate social upstream chain in Scope 3 under reporting practices that highlight the whistleblowing system that allows responsibility, and we want to make the international standard “GHG choice of more climate-friendly input all stakeholders, both internal and use of sustainable suppliers. Protocol”. It is here the purchasing factors. external, to report unwanted conduct, corruption and ethics violations.

28 ERAMET NORWAY SUSTAINABILITY REPORT 2020 29 SUSTAINABILITY

Sustainability provides " new opportunities We anticipate that society’s increasing demand for products with a low climate and

There are increasing demands from governments, investors and environmental footprint will provide consumers to document products’ climate and environmental footprint. opportunities for us to further

As a leading supplier of manganese alloys to all our processes. Eramet Norway produces strengthen our competitive the global steel industry, we are prepared to useful products for the zero-emission society document how our products affect steel’s of the future in a resource-efficient way, position in the market. climate and environmental footprint. Steel, and we have a clear vision and measurable the most important construction material commitments to in order to care for people in the world, is used in cars and transport and the plant, while being a good economic systems, industrial and energy systems, tools partner. and appliances etc. In addition, steel can be recycled multiple times without deteriorating. We believe that sustainability provides a competitive advantage. As one of the Eramet Norway uses renewable energy, has world’s most climate-friendly producers of efficient production processes and uses manganese alloys, we will over the next couple advanced cleaning systems. This makes us one of years continue to increase our efforts to of the world’s most environmentally friendly make information about the climate and producers of manganese alloys. We also focus environmental footprint of our products and on research, development and competence processes more accessible to our customers, building in order to continuously improve as well as investors and governments.

Eramet Norway is one of the world’s most climate friendly producers of manganese alloys due to:

Efficient Advanced Renewable production cleaning energy processes facilities

30 ERAMET NORWAY SUSTAINABILITY REPORT 2020 31 SOCIETY

Our social responsibility

Eramet Norway is a driving force for community development in the communities where we OWNERS operate. As part of the ERAMET Group, we focus on all aspects related to corporate social responsibility and sustainability. SOCIETY EMPLOYEES

We carry out regular checks to ensure that we have a good balance between what we provide our stakeholders and what we wish to receive in return.

• Our customers will get their NEIGHBOURS CUSTOMERS products at the right time and ERAMET Group’s COVID-19 solidarity project with the right quality – so that we can maintain and increase our At the outbreak of the pandemic at Community engagement has been market share. the beginning of 2020, preventive a part of the smelters’ history since measures were implemented to the beginning, and Eramet Norway • Our employees must experience SUPPLIERS protect the company’s employees wants to continue to be a value- a sense of security for themselves and their families at all the Group’s creating community player and a good and their families – so that we units. In addition, in April 2020, a neighbour. can make the best use of their solidarity project with an economic expertise and commitment. framework of EUR 1.5 million In 2020, the company’s support for local • Our owners must receive a return was established to support local teams and organisations in Porsgrunn, on investment – so that we are measures to prevent the spread of Sauda and Kvinesdal amounted to secured resources to further infection and reduce the negative NOK 1.8 million, of which NOK 135 000 develop our smelters in Norway. consequences of the pandemic. This was part of the Group’s solidarity plan. • We will be a demanding and • We will put minimal strain on the • We will create value based on good support came on top of the annually Mental Health and the Red Cross were predictable customer who offers local environment and continuously access to renewable power and amount to EUR 13 million which is among the organisations we supported interesting contracts – so that we improve our environmental our high competence – so that we used for other initiatives related to with contributions from the Group’s can achieve competitive terms performance – so that communities are ensured favourable conditions sponsorship and collaboration with solidarity project. In addition, we chose from development-oriented and neighbours value our presence for further development and organisations in the Group’s many to support municipal measures aimed at suppliers. and support our development plans. innovation and we are viewed as an locations. children and young people, public health attractive partner for the authorities, and school development. competence environments and national public funding institutions.

32 ERAMET NORWAY SUSTAINABILITY REPORT 2020 33 SOCIETY

Robust industrial regions

The Norwegian process industry Many industrial companies in Norway The most important competitive produces metals, materials and today have foreign owners, and the advantages for the Norwegian chemicals that are required in order majority of companies compete industry are: to succeed with the green shift. Many internationally. This means that it is • Good access to renewable power of these companies are now world crucial to preserve and further develop • Leading technological and industrial leading within their industries, both the national competitive advantages environments in terms of competitiveness and their that we have. • High level of competence at all levels climate and environmental footprint. A global player with high Sales Through Prosess21, the industry has In addition, Norway must continue to within the companies highlighted the potential for doubling actively participate in the European • Stable societal conditions and room Other Europe value creation towards 2030, while collaborations to ensure good to maneuver within the national national value creation at the same time meeting society’s competitive conditions and avoid public funding institution schemes ambitious targets for reducing special Norwegian schemes that will greenhouse gas emissions. weaken the overall position of the Norway have good conditions for 505 000 process industry. building on these advantages through Close to 75% of our manganese alloys of highly qualified suppliers in various TONNES Norwegian industrial companies the design of a comprehensive policy are sold to steel mills in our main disciplines is important both to achieve North- are often located in rural areas. It is that ensures further development of markets, Europe and the USA. Together safe and stable operation and to plan and America therefore important for the future of robust industrial regions and local with the Group’s sales department in carry out development projects at the these companies that these regions communities. France, we are working purposefully smelters. are considered attractive places to to increase our market share in other work and live. These communities regions, including the Middle East and Solid cost position provides must be well-functioning and they Latin America. high value creation Purchases NOK 661 million must offer good quality of life and Eramet Norway operates in a competitive local cost International have health and welfare services. “The Norwegian process Raw materials and energy account for industry with demanding customers more than 75% of our operating costs. who expect high quality and competitive industry has contributed to A robust industrial region is Manganese ore is sourced from Gabon prices. Continuous focus on development the growth and welfare of characterised by: and South Africa, and reducing agents and improvements has led to us achieving the Norwegian industry for are imported from several countries, a solid cost position. The main report NOK 4.8 • Good access to expertise BILLIONS more than 100 years. Eramet mainly in Eastern Europe. Renewable from Prosess21, stressed that the analysis • Varied job market, Norway stands firmly on power is our largest national cost agency Menon has looked at different accommodation and services the shoulders of its history, element, but silicon sources are also parts of the Norwegian business sector • A competitive and adaptable NOK 2 billion aiming towards a future purchased from Norwegian suppliers. in several analyses and made it clear that total in Norway business sector where we are in the forefront Overall, about 60% of our costs are the process industry is significantly more • An equitable and stable health and creating new history.” international, and close to 100% of our productive than the breadth of Norwegian welfare provision products are exported. business and industry.

Conditions for further growth: Local goods and services for

Increased access to Education and Climate and Innovation and business Transport and NOK 661 millions in 2020 renewable energy competence environment development infrastructure Although we are an international Value creation player that imports most of our raw 3 (mill. NOK per employee) The process industry The high level of The Norwegian The process industry Industry, especially in 2,6 must be given a high competence and the process industry have represents a potential for rural areas, is a driving materials and sells our products in 2,5 priority when assessing collaboration ensures made “green shifts” increased value creation force for local and Menon’s report is a global market, we buy goods and 2 how the nation’s good performance. before, we are still and new jobs. regional development. 1,5 based on 2019-figures, renewable energy should here. 1,5 while the figure We need to strengthen The national public High value creation must services for approximately NOK 2 1,1 be used. 1,0 for Eramet Norway the entire chain of We must combine funding institutions must be taken into account 1 billion domestically. More than NOK represents 2020. The green shift puts competence, with extensive R&D and be further strengthened to when prioritising 0,5 pressure on the energy a closer interaction industrial piloting – support circular economy transport and road 650 million of the national purchases balance, Norway must between upper the green shift takes solutions for higher energy projects to enable larger take place in the regions where our use its renewable energy secondary schools and place at the plants, utilisation and innovative work, living and service Norwegian Norwegian The process Eramet capacity colleges/universities as not on PowerPoint. solutions for the reuse of region. smelters are located. The proximity businesses business except industry Norway oil & gas a basis for lifelong and by-products and waste decentralised learning. materials.

34 ERAMET NORWAY SUSTAINABILITY REPORT 2020 35 PROSESS21

Minimal emissions from process industry 2050

2040

Sustainable growth for process indystry The way forward towards 2030

Input / resources Process industry Product Society a lower footprint and 2020

continued growth Lars Petter Maltby • Electrical power Energy intensive • Construction • Coal/Coke • Aluminum/zink/nickel • Transport Head of Secretariat, Prosess21 • Oil • Silicon/Ferro Silicon • Industrial • Gas • Manganese Alloys • Aerospace • Other metalurgical • Chemicals • Ore • Pulp & Paper • Electronics • Bio-mass • Fertilizer • Healthcare • Petro chemical • Other industry Others: • Raffineries th Collaboration required these challenges at a national level, • Chemicals On the 8 of February 2021, • Cement & minerals Process21 presented the The main report summarises the there are many similarities between overall messages for industry, main report with advice and Eramet Norway’s roadmap and the political authorities and national recommendations of Process21. • To continue the development of Biocarbon, carbon capture and by highly concentrated exhaust gases recommendations to the Prime public funding institutions. However, biocarbon qualities suitable for expertise that can enable capture and utilisation. Minister, Minister of Industry the recommendations are mainly Recommendations manganese production and to adopt Biocarbon has also been addressed and the Minister of Climate directed towards the industry itself New process technology, biocarbon, these industrially through a separate expert group for Finally, it is worth noting that Process21 and Environment. The report and emphasise the urgent need for carbon capture and utilisation and • To establish a larger R&D project for the bio-based process industry. The has also had its own expert group consists of ten expert group the industry to develop their own energy efficiency are all mentioned. the investigation and development group has particularly emphasised related to competence. Here, three climate strategies. Eramet Norway’s New process technology is featured the availability of Norwegian bio- reports and four external of new processes for manganese drivers are identified as skills needed in roadmap is used as a good example in a separate expert group report led based resources. Resource access is the process industry of the future; papers, as well as the steering production. in this context. It is the group’s view by Nina Dahl at Sintef. Manganese expected to be challenging as it is 1. Climate change and sustainability, group’s strategic discussions. that it will not be possible to realise alloys production is discussed in primarily forests that provide abundant 2. Digitalisation and technology the industries’ climate strategies its own chapter with a distinctive As development projects in the amounts. There are opportunities development, as well as The report is based on the without extensive cooperation with description of barriers for the industry process industry are capital intensive for increased extraction of forests industry’s strategic challenges the authorities through the facilitation and associated recommendations. The and it takes a long time for industrial nationally, but imports of biocarbon 3. Demographics and attractiveness. in a 10- and 30-year perspective of framework conditions. expert group recommends: verification, Prosess21 recommends must also be expected. The assessment is that industrial and provides strategic advice and • Developing, testing and that R&D activities should be Process 21 has focused on carbon companies must ensure a more robust recommendations on how the process Eramet Norway’s climate roadmap implementing manganese ore reinforced. It is important to facilitate capture and the extent to which the strategic competence management, industry can be further developed and Process21’s ambitions are largely reduction technology long, complex and cost-intensive various industries are ripe for such partnerships with complementary to become an even more important consistent as both addresses how development courses, both through solutions without having to change industries and technology suppliers, • To further develop current concepts contributor to Norway’s value creation the industry can ensure a better national and international cooperation the core processes in order to realise as well as a continued good utilisation for utilising furnace and process gas towards 2050. environmental footprint while projects. an end of pipe solution. In this of three-party cooperation between possibly in the context of carbon maintaining and increasing value context, the production of ferro- and the employers, employees and the capture creation. While Process21 describes silicomanganese is considered unique government.

from the process industry in 2050 Process21 has created 10 expert from industry, academia and national and at the same time facilitate groups. The expert groups public funding institutions, and each Process21 is a strategy work sustainable growth. have explored areas of strategic group published their own reports conducted on behalf of the importance, and together they representing independent knowledge Entrepreneurship Products and Biobased Circular Foreign Norwegian process industry and Process 21 has chosen to take into have made over a hundred bases. In total, more than 1,200 people Services Process Industry Economy Investments was established by the Ministry account the opportunities for value recommendations relevant to the from over 300 organisations have been of Industry and Fisheries on 25th creation and reduced greenhouse further development of the process engaged in this work. of April 2018. The main task is gas emissions until 2030 and industry in Norway. to provide strategic advice and 2050, with specific advice and For more information, visit: recommendations on how Norway recommendations for both time Each group of experts have www.prosess21.no Power Carbon Capture New Process Digitalization Competence can best achieve minimal emissions horizons. consisted of six to twenty people markets Technology with reduced carbon Footprint (incl. CCU)

36 ERAMET NORWAY SUSTAINABILITY REPORT 2020 37 SUSTAINABILITY

Clear focus on safety & environment Outstanding financial Numbers in MNOK 2020 2019 evol % investments and operational Revenues 5553 6339 -12% performance in Raw materials and energy -3608 -4629 -22% Total investments decreased significantly (-37% vs 2019) mainly a context of this Personnel costs -492 -471 4% due to no long maintenance stoppage and the strict monitoring unprecedented crisis of the cash spending in a context of market downturn. However, a Depreciations -201 -229 -12% strong focus was put on safety and environment investment. Other operating costs/income -583 -753 -23% Good resistance of production Finance Current Operating Income (COI) 670 257 160% and sales volumes COI margin 12% 4% Figures in MNOK 2016 2017 2018 2019 2020 2020 was marked by an unprecedented health crisis, which Financial costs -86 -151 -43% HESE investments 67 21 69 63 96 caused a deep drop in demand Corporate taxes -128 -22 472% Other investments 187 94 199 195 103 from steel market (-14% in Europe & Net Result 456 83 446% Our long-standing green Total investments 254 115 268 258 198 -17% in US). In this context Eramet commitment generates Norway’s production volumes were down by only 4% (501kt, 21kt below solid environmental 2019) and sales volumes were down revenues and provides Safety – Key investments: by only 5% (505kt, 25kt below 2019) . • Renewal of our buildings and equipment proof that a strong This reflects the high flexibility in our Revenues Production COI FCF* • Safety nets installation above slag casting areas sustainable strategy can production set-up, the agility of our 5 553 MNOK 501 000 tonn 670 MNOK 811 MNOK teams and the good cooperation -12% vs 2019 -4% vs 2019 x 2,6 vs 2019 +895 MNOK go hand in hand with Environment – Key investments: between production, supply chain vs 2019 improved performance • New concept for treatment of process water at Sauda and sales. We succeeded in gaining new market shares and expanded • New slag casting smoke extraction system at Sauda *Free Cash Flow and cost efficiency. our geographic footprint in target • Energy recovery unit at Sauda 535 markets, thus becoming a leading 540 531 2250 2125 530 2000 • Shorepower installation projects at all plants global player in manganese alloys 522 523 production. 520 1750 510 1500 Strong rise in R&D spending (+54% vs last year) 501 500 1250 In 2020, Eramet Norway spent 24 MNOK (2019: 16 MNOK) on R&D Significant increase of 965 490 1000 to remain at the forefront of manganese production. Through operating income 722 670 480 750 alliances with external competence societies and companies, we Operating income went up from 470 500 are involved in several cooperation projects with a total yearly 257MNOK to 670MNOK mainly 257 460 250 budget of approx. NOK 200 million. Climate and environment thanks to favorable input prices, 450 0 make out 60% of our total R&D spending. internal operational improvements, 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 higher indirect carbon cost Through alliances with external competence societies and compensation and significant gains Produtction volumes in 1000 tonnes COI in MNOK companies, we are involved in several cooperation projects with a in market shares. total yearly budget of NOK 200 millions. Climate and environment make out 60% of our total R&D spending. Strong cash generation At more than 800MNOK thanks to strict monitoring of working capital and exceptional responsiveness in the second half of the year. Sustainability 96 MNOK 22 MNOK 3 MNOK 0.2 MNOK provides competitive Sale of manganese Sale of recovered Sale of Silica Sale of hot water dust energy at Kvinesdal Green Stone at Kvinesdal power

38 ERAMET NORWAY SUSTAINABILITY REPORT 2020 39 Eramet Norway Sustainability report 2020

OUR ROADMAPS Climate | Energy | Environment | Circular economy Sustainability provides competitive power PART 2

Eramet Norway aims to be the most climate and environmentally In this report, we present our friendly producer in our industry. four main goals

Under each of these main goals, we present our targets and We believe that having a leading position on climate and environment status as of 2020, as well as important processes and projects to increases our competitiveness and strengthens the company’s profitability in the long term, including through: achieve these ambitious goals. • Better utilisation of our most important raw materials – ore, We aspire reducing agents and energy to be a preferred • Increased stability and process efficiency in our production supplier, a value- processes creating corporate • Increased revenues through circular economy solutions for by-products and waste materials citizen, a good neighbour, a respected partner • Reduced environmental costs, e.g. related to quota costs Climate 10 Environment 26 and taxes and an attractive • Increased attractiveness that provides better opportunities for workplace. recruitment of competent and engaged employees, as well as cooperation with external competence environments • Access to support and financing schemes for R&D and investment projects. Circular

As an industrial company located in Norway, we are subject to strict national laws Energy 16 economy 34 and requirements. Our emission permits are closely followed up in close dialogue with government agencies, and we are constantly challenged to deliver even better results.

The UN’s 17 Sustainable Development Goals (SDGs) are the world’s joint work plan to eradicate poverty, combat inequality and stop climate change by 2030, and Eramet Norway’s work on sustainability focuses in particular on four of them: No. 8, Decent work and economic growth, no. 9 Industry, innovation and infrastructure, no. 12 Responsible consumption and production, and No. 13 Climate action.

In addition, as part of ERAMET, we are committed to the Group’s Corporate Social Responsibility (CSR) roadmap. These goals are also based on the UN SDGs and are divided into the following main areas: ERAMET NORWAY • Commitment to people PORSGRUNN VAT-number: Design and print: WERA AS • Be a responsible economic player in daily life P.O.Box 82, N-3901 Porsgrunn 980 518 647 Photo: Dag Jensen, Benjamin Nordhagen, Max Emanuelson, ERAMET Research, Phone: 35 56 18 00 DSFOTO, Erik Børseth, Eirik Spilling, Bruno Détante, Saudefaldene. • Commitment to the planet [email protected] Nordic Swan Ecolab SAUDA P.O.Box 243, N-4201 SAUDA eramet.no Phone: 52 78 50 00 eramet.com

KVINESDAL Øyesletta 61, N-4484 Øyestranda NORSK Phone: 38 35 72 00 AKKREDITERING QUAL 002/EMS 001

2 ERAMET NORWAY SUSTAINABILITY REPORT 2020 3 UN SUSTAINABLE DEVELOPMENT GOALS

UN Sustainable Sustainable Development Goal No. 9 «Industry, innovation and infrastructure» Development Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation. INDUSTY, Goals lead the way INNOVATION AND Eramet Norway contributes to this goal through the production INFRASTRUCTURE of manganese alloys which are essential components in high quality steel, and steel is required for infrastructure and new industrial operatios. 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 The SDGs reflect to meet the future challenges associated with sustainability. the three dimensions: Innovation and prioritising investment in science and • Climate and environment The UN technology are a prerequisite for sustainable industrialisation • Economy Sustainable and economic growth. • Social conditions Development Goals (SDGs) are the world’s common workplan to eradicate poverty, fight SDG No. 12 «Responsible consumption and production» RESPONSIBLE inequality and stop climate change Ensure sustainable consumption and production patterns. by 2030. Sustainable development CONSUMPTION entails addressing the needs of AND PRODUCTION Eramet Norway contributes to this goal through research people living today, without and development and continuous improvement to reduce reducing the ability for future resource consumption and emissions. Technological generations to meet solutions and work processes must become increasingly theirs. resource efficient through the recovery and recycling of energy streams and materials as well as handling of In Eramet Norway’s work on chemicals. Sustainable consumption and production sustainability, we primarily relate involve doing more with less: reduce resource use, avoid greenhouse gas emissions and limit adverse effects on the to the following of the objectives: environment while creating economic growth.

Sustainable Development Goal No. 8 «Decent work and economic growth» Sustainable Development Goal No. 13 «Climate Action» Promote sustained, inclusive and sustainable economic growth, full and DECENT WORK CLIMATE Take urgent action to combat climate change and its productive employment and decent work for all. AND ECONOMIC ACTION ­impacts.

Eramet Norway contributes to this goal by having a good ethical framework GROWTH Eramet Norway contributes to this goal through and high focus on safeguarding safety and health of all who work for us. development and implementation of new technology Our procurement processes ensure that suppliers are thoroughly assessed that facilitates the use of other raw materials, in addition with regard to safeguarding human and labour rights, the environment and to the reuse and capture of CO2. We also strive to other requirements we impose. Suppliers who enter into agreements with achieve increased energy utilisation through continuous us are obliged to provide information about any subcontractors so that we improvement of our process performance and operational have insight into the entire value chain. Norway have a well-functioning activities, as well as developing new solutions for energy three-party-collaboration between authorities, employee and employer recovery and utilisation. organisations and a comprehensive working environment legislation that together provide a good framework for ensuring inclusive and sustainable economic growth.

4 ERAMET NORWAY SUSTAINABILITY REPORT 2020 5 SOCIAL RESPONSIBILITY

The Roadmap

2018-2023: Commitment to people

Provides a framework in order for the 1. Ensure the health and safety of Group to organise, define and measure employees and subcontractors Focus on CSR its progress in CSR, and the Group’s 2. Build skills and promote talent and career development 13 goals are divided within three main 3. Strengthen employee categories: Commitment to people, be engagement a responsible economic player in daily 4. Integrate and foster the wealth life and commitment to the planet. of diversity The Roadmap has been shared with 5. Be a valued and contributing ERAMET started its journey of strategic, managerial and and validated by the Strategy & CSR partner of our host communities Committee and the Board of Directors, digital transformation in 2017 in order to ensure the Group’s who review it periodically. excellence. In this new ERAMET, Corporate Social Responsibility (CSR) is at the core of the Group’s strategic decisions based on the conviction that the mining and metal companies of the future must be exemplary corporate role models. Be a responsible economic player in The Group’s commitment translates into an ambitious CSR Roadmap built daily life around 13 goals on which significant process have been made since its 6. Be an energy transition leader in introduction in 2018. The goal is to develop the Group in a sustainable and the metals sector value-creating manner while helping to preserve a world that benefits the 7. Actively contribute to the many. development of the circular economy 8. Be a company of reference in terms of respect for human rights in our field of activity 9. Be an ethical partner of choice The strategic vision’s the five pillars: 10. Be a responsible company of reference in the mining and metallurgy sector

Commitment to the planet

11. Reduce our atmospheric emissions Sustainable Business partner Committed and Home for Entrepreneur value creator of choice contributive best talents 12. Protect water resources and corporate citizen accelerate the rehabilitation of our mining sites by fostering biodiversity 13. Reduce our energy and climate footprint

6 ERAMET NORWAY SUSTAINABILITY REPORT 2020 7 SOCIAL RESPONSIBILITY

ERAMET NORWAY Climate and environment – our direction Vision “Eramet committed to people" Strategic contribution The world´s leading goals producer of refined We shall be the most “Eramet committed to economic manganese alloys ERAMET enviromentally and responsibility" contribution through empowe- climate friendly CSR ment, innovation and producer in our “Eramet committed to job satisfaction the planet" contribution industry

Long-term goals

Climate Energy Environment Circular Economy 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 43% before 2030 and 80% least 27% before 2030 effects in the local associated with by-product and before 2050 against the against the reference communities in which waste materials, as well as reduce reference year 2005. year 2005. we operate. waste deposition of materials by 50% before 2030. 2020 key figures are: 40% reduction • 80% of industrial sites ISO 14001 certified target in absolute • 990 kt of low-grade incidental ores and tailings CO2 emissions by 2035 recovered with the circular economy plan (vs 2019 levels) • -25.4% decrease in products CO2 intensity (CO2 tonnes per tonne of outgoing product) close to the 2023 target of -26% (2018 ref) New • 67% reduction in serious accidents climate targets • 100% of high-stakes sites with operational grievance mechanisms • €21.4m spent on community investment and charity including €10m on Covid-19 solidarity Carbon neutrality • 20 new social impact indicators for operational (scopes 1 and 2) by excellence 2050

8 ERAMET NORWAY SUSTAINABILITY REPORT 2020 9 CLIMATE

ERAMET NORWAY Climate

Eramet Norway’s long-term goal:

In 2015, the UN Climate Change We will reduce our CO2 Conference in Paris, COP21, emissions by at least 43% adopted a goal of keeping by 2030 and 80% by 2050, the increase in global average compared with the reference temperatures well below 2°C year 2005. relative to pre-industrial levels, and strive to limit temperature rises to 1.5°C.

COP21 also decided that global anthropogenic greenhouse gas (GHG) emissions between 2050 and 2100 should not be higher than what can be absorbed in nature and through carbon capture, storage and application. These climate and environmental goals are the basis for the Status climate emissions establishment of Eramet Norway’s roadmap for Eramet Norway’s climate emissions have climate and the environment. been stable during the last years. Our roadmap describes prioritised projects and processes we need to succeed with to achieve our long-term goals: Climate emissions per tonne of saleable production (tonnes per tonne) – Replace fossil reductants by biocarbon and achieve a reduction of at least 25% within 2030.

1,60 1,50 1,47 1,48 1,44 – Optimize raw material mix and process conditions to achieve 10% 1,40 reduction within 2030. 1,20 – Develop a technical solution for carbon capture and storage 1,00 (CCS) with the potential for a 15% reduction of emission within 0,82 2030 and 70% within 2050. 0,80

0,60 – We are also actively working with measures to recover energy and to find solutions for carbon capture and 0,40 0,29 utilisation (CCU) 0,20 – In addition, we will explore disruptive 0 technologies for a further reduction 2005 2018 2019 2020 2030 2050 Reference Goal Goal of our climate emissions.

10 ERAMET NORWAY SUSTAINABILITY REPORT 2020 11 CLIMATE

R&D projects

• IPN Pyrogass: The Research Council of Norway’s innovation project for the development of biocarbon adapted to Mn production • KPN BioCarbUp: Research Council of Norway’s competence project for the Significant progress in our climate roadmap projects development of biocarbon in metall­ urgical industry KPN Reduced CO : The Research Raw materials: Tests over several months have now established that by Pre-reduction: This project is more long term, targeting • 2 Council’s competence project to reduce adjusting the charge composition, it is possible to reduce both carbon and through R&D work at our research and innovation center CO2 emissions in the metallurgical energy consumptions with about 5 to 10% compared to a typical reference Eramet Ideas, to develop next generation furnace and industry operation of before 2018. This very effective change has been confirmed by tests materials pre-treatment. Two rotary kiln pilot tests in EU Horizon 2020 PREMA: Development and implementations in our sister company Comilog Dunkirk and will be rolled the framework of the Horizon 2020 EU project provided • of the process for improving resource and out to all SiMn furnaces through best practice.. information about residence time and quality of the treated energy efficiency through an external materials. pretreatment unit Biocarbon: The strategy for industrial implementation has evolved, towards Eramet IDEAS, Pre-reduction in tailor-making a biocarbon and producing it in industrial quantities, rather than Carbon Capture and Storage (CCS): The capture technology • furnace: Reduction of carbon and energy adapting the plants to receiving even the poorest quality charcoal, as was was selected, and a letter of intent was signed with a consumption by process improvement originally planned. Co-operations with different partners both from academia, technology partner to perform a pre-study in 2021, aiming for Eramet IDEAS: Groundbreaking research institutes and industrial companies are bearing fruits. A first batch of a pilot carbon capture test in Sauda in 2022-23. • process with zero CO2 emissions several tons of a new biocarbon was tested at one plant, though further quality Climit Eyde CO Tek: Examination of improvements are still needed to perform relevant tests at a larger scale in 2021. Carbon Capture and Usage (CCU): Dialogue is on-going • 2 CCS technologies for the process industry with several companies interested in valorizing the off-gas Danish collaborative project Waste The NewERA project: Gas engine components for energy recovery were from the Porsgrunn plant. • to Biocarbon: Development of biocarbon shipped to the Sauda plant in 2020 for installation and test in 2021. The pre-study adapted to Mn production for the sub-project “Ore drying and Cold agglomeration” was completed, in Disruptive technology: Progress was made and a strategy Eramet Norways NewERA Program: parallel with starting the industrial tests of the briquettes. to protect Eramet’s intellectual property will be rolled out in • Development and implementation of new 2021. climate and energy technology for Eramet Norway’s smelters

2020 2021 2022 2023 2024 2025 2030 2040 2050

Slag formers

Biocarbon

NewERA/Pre-reduction

CCU

CCS

Disruptive tecnologies

R&D/Pilot Project development Implementation

12 ERAMET NORWAY SUSTAINABILITY REPORT 2020 13 CLIMATE

The ERAMET Group Eramet’s decarbonation trajectory depends also on 2050: the capacity of the Group to develop multi-annual structuring and transversal projects with the following Carbon neutrality for Scopes 1 and 2 main axises: sets clear This ambition requires a necessary massive use of CCS • Development of CCS in cooperation with other actors: this is the action with the strongest impact on CO2, and the development of bio reductants. Most of the but there is a challenge connected to the costs of such actions having a significative impact will take place in a objectives a solution. The ambition is therefore to develop a pilot middle to long-term timeframe, the coming years being and identify less costly technologies. dedicated to confirming the potential gains through pilots.The identified actions will only be implemented if • Use of bio reductants for the reduction of the ore: the market reflects the investment costs in the carbon the challenge for this solution is to have bio reductant and commodity prices. In this context, it would mean a sources that are grown in a sustainable way and significant increase of the carbon price and thereby of compatible with our processes (mechanical strength, the alloys. pollutants, productivity). • Buying renewable electricity, coupled with the electrification of the mining operations. Status 2035: • Development of disruptive technologies, for instance using hydrogen as a reductant gas. The middle-term objective of reducing the specific A long-term objective in line with the emissions of the group by -26% in 2023 was almost Paris agreement – reduction of the This roadmap on Scope 1 and 2 is reached in 2020. This is the result of the significant absolute CO2 emissions by 40% combined with a qualitative increase of the mining activity (volume effect). objective of emissions from The reduction of energy consumption as well as the Given the progress in the mining activity, Scope 3: Eramet commits decarbonation of the electricity are also contributing to with relatively lower emissions compared to promote the the result. to metallurgy, the Eramet Group expects reduction of CO2 to meet its targets of specific emission emissions at its Finally, Eramet has intensified its research and reduction of CO2 before 2023. Building clients’. innovation efforts, to find alternative sources less upon this momentum, the Group has carbonated. Among the most advanced subjects, decided in 2020 to accelerate further the we find the development of bio reductants for which process through committing on a Science industrial tests are planned in 2021 at Eramet Norway. Based Target objective. This approach, initiated towards SBTI (Science Based Target Other key initiatives include: Initiative), is current under the status of • NewERA project: The first installation, an energy approval “committed”. recovery pilot plant at the Sauda plant, will be commissioned during first half of 2021, while a detailed At constant perimeter reference year 2019, feasibility study for the remaining sub-projects is Eramet targets emission reductions of CO2 planned to be launched in June 2021. by 40% for Scope 1 and 2 in 2035, compared • CCS: Eramet has formalised in 2020 an industrial to 2019. This target requires to use all partnership targeting the installation of a pilot in available levers, including those still in an Sauda, to capture the CO2 from the flue gas of the R&D phase or the first pilots, e.g. Carbon NewERA energy recovery pilot. A pre-feasibility study Capture and Storage (CCS), bio reductants will be conducted in 2021, aiming for an installation and electrically driven mining trucks. and test period in 2022-23.

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ERAMET NORWAY Energy

As a major consumer of electrical energy, more efficient utilisation of energy will benefit both society and us. Eramet Norway’s long-term goal: For the global community, energy transition is perhaps the biggest We will increase climate challenge, and for us energy our energy utilisation efficiency is about further developing by at least 27% in our competitiveness. 2030, compared to the reference year 2005. We will strengthen our continuous work on energy management and at the same time prepare projects and measures that will give us a big boost in terms of value creation and energy position.

Energy utilisation (Net KWh per saleable tonne of production)

3 500 2 809 2 614 2 852 2 877 Status Energy 3 000 Utilisation 2 500 2 050 Eramet Norway’s energy 2 000 utilisation varies somewhat from 1 500 year to year. The main historical 1 000 explanations are variations of our sales 500 of energy rich CO gas in Porsgrunn and the maintenance pattern at 2005 2018 2019 2020 2030 our energy recovery facility in Reference Goal Kvinesdal.

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On our way towards a higher energy efficiency

NewERA Energy Recovery: In 2020, the modules for our energy recovery Sales of furnace gas: Large parts of the pilot plant in Sauda were delivered. The pilot plant with a capex framework of furnace gas from the plant in Porsgrunn were approximately EURO 5 million will be installed in the first part of 2021, with a historically sold as an energy source to Yara’s subsequent testing period as the basis for design of a full-scale facility. The project ammonia factory at Herøya. The agreement is supported by Enova. was terminated in 2019, and we are now working with several different companies Shore power facilities: Installation at all three of our smelters in 2021. The project with a view to finding new applications for our is supported by Enova. energy-rich furnace gas.

NewERA Pre-reduction: Thermal energy from the energy recovery plant will ISO 50001: In addition, our energy be used for ore drying. This will increase process efficiency and reduce specific management teams work continuously to energy and carbon consumption in the furnace process. We completed the identify and realise potentials for reducing preliminary study (PFS) in 2020 and will proceed with the detailed study (DFS) in energy consumption and increasing utilisation 2021 as the basis for an investment application. of available energy.

2020 2021 2022 2023 2024 2025 2050

NewERA Energy recovery

NewERA Pre-reduction PROJECTS SFI Metal Production: The Research Council of CO gas sales • Norway’s Centre for research-based innovation. Shore electricity • EU Horizon 2020 PreMa: Development of process ISO 50001 Energy management for improved resource and energy efficiency. • FME HighEFF: The Research Council of Norway Centre for Environment-friendly Energy Research (FME) R&D/Pilot Project development Implementation • NewERA Energy Recovery Unit (ERU): Eramet Norway’s project for energy recovery.

18 ERAMET NORWAY SUSTAINABILITY REPORT 2020 19 ENERGY

The NewERA Main objectives: •1 Increase energy utilization by at Project least 250 GWh – equivalent to the consumption of more than 10 000 households Climate and environmental 2• Increase the stability of the furnace processes and reduce the specific footprint energy consumption in the Circular ferromanganese alloy production economy The NewERA project is about the by at least 8% – reduced costs and development and implementation of climate higher production NewERA and environmentally friendly technology with a significant potential for better energy 3• Reduce the specific carbon utilisation. The project is an important part of consumption and thus CO2 Eramet Norway’s roadmap for climate and the emissions per tonne sold by at least environment. 3% – that is about 10 000 tonnes per year – corresponding to the Process Through the project we will ensure: emissions from about 5000 cars efficiency • Increased process efficiency: Lower specific 4• Ensure sustainable handling of consumption of electrical energy and reductants, as by-products and waste materials – well as increased process stability and production reduced disposal and lower costs • Better circular economy: Higher utilisation and increased value creation related to energy, by-products and waste materials • Smaller climate and environmental footprint: Lower Progress in 2020 – further plans emissions and reduced need for deposits

Subproject Subprojects Subproject Ore drying/ Energy Recovery screening and Agglomeration

Energy recovery: Ore quality: By-products and waste The furnace gas from the The thermal energy materials: Sauda smelter is currently from the energy reco- Drying the ore will The pilot plant modules were The pre-feasibility study (PFS) was not well utilised. The plan very process will be generate fines that are delivered at the Sauda plant in completed in 2020, leading to a decision is to run this gas through used to reduce the level planned to be briquetted December 2020. The installation of entering the final step of the pre- gas engines to generate of ore moisture. The ore together with fines from will take place in the first half of electrical energy for sale, will also be screened, metal crushing, filter project, a detailed feasibility study (DFS). as well as thermal energy taking down the level of dust from the cleaning 2021, followed by industrial tests The DFS will be started in the first part of for internal and external fines before use in the facilities and sludge cur- to prepare a decision concerning 2021, in parallel with the industrial tests of applications. furnaces. rently being deposited. next step in our efforts to secure dry ore and briquettes. a future expansion of the energy recovery capacity.

20 ERAMET NORWAY SUSTAINABILITY REPORT 2020 21 ENERGY

Eramet Norway Sauda cooperates with the company Sauda Energi to expand the use of waste energy from the smelter. Our energy recovery project will significantly increase the potential for further value creation. Sauda Energi will therefore in the years ahead actively seek opportunities for industrial utilisation of waste energy in the form of production processes that require access to large amounts of thermal energy.

Eramet Norway and Sauda Energi are among the partners in the project «Green Growth», supported by Innovation Norway, where the goal is to develop new industrial activities as a basis for increased value creation and new jobs in Sauda.

NewERA Energy Recovery Pilot plant Energy management

The pilot project with an investment Our smelters are large energy consumers. We need about 2 TWh annually, estimate of approximately NOK equivalent to the electricity consumption of about 100,000 households, which 50 million was approved towards makes electrical energy our second largest cost element after manganese ore. the end of 2018. Based on offers received, contact was signed with All three Eramet Norway plants are certified in the ISO 50001 energy management the multinational company Clarke standard. Our Kvinesdal plant became one of the first companies in Norway certified Energy in the autumn of 2019. in 2010, while Eramet Norway Porsgrunn and Eramet Norway Sauda followed suit in 2014/15. The certification confirms that the work on energy efficiency is systematic. A 1.5 MW gas engine will be installed at the Sauda smelter in the first part Interdisciplinary energy management teams have been of 2021, with a subsequent testing established at each plant. Monthly meetings are held period. The pilot phase will be to follow-up of significant energy aspects and decisive for the further planning of a improvement measures, while key figures (KPIs) full-scale energy recovery facility. related to energy consumption and utilisation are reported and reviewed in the plant’s Enova supports the project in regular management meetings. The energy Sauda as part of its industrial pilot management teams contribute to ensuring program. a focus on efficient energy utilisation, which provides benefits for both ourselves and the society around us.

22 ERAMET NORWAY SUSTAINABILITY REPORT 2020 23 ENERGY

Energy consumption can be Energy use and energy recovery Compressor heat recovery and usage divided into three main groups (see With salesable production of just over of hot water for heating are useful illustration), where «electrons» and 500,000 tonnes of manganese alloys measures but do little in the overall «hydrocarbons» each represent 45% in 2020, we estimate that 1.87 TWh of context. and 42% of the total of 4.2 TWh for energy is «baked in» as energy in these 2020, which is about the same total as products, equivalent to around 44 Internal use of furnace gas for for 2019. The remaining share supplied per cent of the total energy supplied. refractory activities and building to the processes are related to the The challenge is what we are able heating, as well as external deliveries energy content of the consumption to recover from energy in fuels and of hot water in Sauda are all good of metallic material (silicon and heat flows. For 2020, we achieved contributors to energy recovery. A pilot Energy balance 2020 manganese) to furnaces and refining approximately 0.47 TWh, which is plant for electric energy production of plants. around 11 per cent of the added furnace gas will come into operation in energy. Sauda in 2021. Eramet Norway’s three manganese Energy consumption smelters have been ISO 50001 The consumption of electrical energy The energy recovery plant in Kvinesdal As a residual item, we ended up (melting power and auxiliary power) of produced net close to 85 GWh. In with almost 1.9 TWh in energy loss certified for several years. The 1.9 TWh was divided by 0.52 TWh, 0.63 addition, the hot water deliveries to in 2020. Localisation factors have an company has a formal focus on TWh and 0.75 TWh for the smelters the fish farm and other enterprises in impact on the possible application systematic energy management in in Porsgrunn, Sauda and Kvinesdal. the local area make good contributions and attractiveness of recycled energy. Coke and anthracite primarily act as which make that plant the best of the Public funding schemes through order to strengthen the basis for our a reducing material in the furnaces three Eramet Norway units on energy Enova support some of our project energy intensive smelter business. so that oxydic manganese in the ore recovery. initiatives. becomes metallic manganese in our final products, but the energy content Deliveries of furnace gas to Yara’s is included with 1.8 TWh in the balance ammonia plant in Porsgrunn were sheet. terminated for commercial reasons in 2019, significantly worsening the energy balance.

Energy Balance Eramet Norway 2020

Energy in products: Electric energy: 1 873 GWh 45% 44% 1 909 GWh Company activities and Carbon materials: processes Recovered energy: 1 789 GWh 42% 4 234 GWh 11% 466 GWh 100% Metallic sources: 45% Energy loss: 537 GWh 13% 1 895 GWh

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ERAMET NORWAY Environment

Our smelters are located in vibrant communities, close to neighbours and beautiful natural areas, which put additional

demands on our environmental Eramet Norway’s behaviour. long-term goal:

In recent years, the plants We will avoid negative emission permits have been environmental impacts in renewed, and emission limits the communities where we have been significantly reduced. operate, and we will not have violations of We are conscious of our role and emission permits. will continue to work to reduce our environmental footprint and improve our overall resource utilisation for the benefit of our plants and our surroundings.

At all times a number of activities are underway at are reported to the Norwegian Environment Agency each smelter to achieve continuous improvement and are publicly available on the NMA’s website. of production methods and optimisation of the operation of treatment plants. In addition, we carry Eramet Norway is certified in accordance with the out studies and R&D projects to acquire knowledge to international environmental standard ISO 14001, use new and more efficient treatment methods. and has internal improvement goals that are more ambitious than the emission permits. Our current emission permits were updated in 2020 for all three smelters and contain up to 100 limit values per plant for control of emissions to air, sea and ground. The permits are followed up thoroughly through frequent sampling and extensive control by accredited and independent third parties. All results

26 ERAMET NORWAY SUSTAINABILITY REPORT 2020 27 ENVIRONMENT

Assessment of results 2020 and priority areas 2021 R&D PROJECTS Implementation of the Eramet Norway’s overall objective for the external environment is that we Collaborative projects (part- should not have exceedances of current permits, and that we will continuously funded by the public sector): slag casting smoke improve our treatment processes to reduce emissions. • SFI Metal Production: extraction system in Sauda Research Council of Norway’s All three smelters operate in accordance with emission permits that have Centre for Research-based changed several times in 2019 and 2020. This means that all smelters received Innovation new requirements through both 2019 and 2020 and lower limits in several Eramet Norway’s plant in Sauda was IPN PAHssion: Research areas. In 2020, Eramet Norway had a total of seven areas with exceedances, • in 2020 the world’s largest producer Geometry and CFD simulation of the final design of the slag exhaust sys- Council of Norway’s Innovation and we are not satisfied with this since our target is zero. of refined ferromanganese alloys. tem-the pits in ENS Project for Measuring Polycyclic Aromatic Hydrocarbons (PAH) All exceedances are therefore thoroughly investigated to understand Eramet Norway produces causes and implement improvements to ensure lasting improvement. All • IPN DUSTDetect: Research ferromanganese (FeMn) and incidents and results have been notified and reported to the Norwegian Council of Norway’s Innovation silicomanganese alloys (SiMn) at Environment Agency, and external and independent experts have carried Project for measuring diffuse its three smelters located in the out an assessment of the environmental impact of the recipient. It has emissions southern part of Norway. been concluded that none of the situations have had a lasting or significant • IPN NextGenSøderberg: Among Eramet Norway’s plants, negative environmental impact. Research Council of Norway’s the plant in Sauda has the highest Innovation Project for PAH free production of high carbon (HC) Eramet Norway is continuously working on improvements to meet the goal electrode mass in Mn industry and medium carbon (MC) FeMn that there should be no exceedances on permits and that we continuously alloys. HCFeMn is produced through The exhaust system has shown a very good performance after it was put improve facilities and operations and achieve lower emissions. Several R&D the melting of manganese ore in into operation. A visual comparison between smoke emitted before and projects are therefore underway by us or in collaboration with others. It two furnaces (Sub-merged Arch after the installation of the system is shown in the images below. is demanding to move from theory and lab tests to full-scale Furnaces, SAF). As a result of the implementation, and we spend a significant number of melting process inside the furnaces, hours and a considerable proportion of the budget on molten HCFeMn metal and slag are R&D activities every year. generated, as well as exhaust gases. Slag is a valuable by-product of the One of the research projects concluded in melting process and contains a high 2020 was a collaboration with Norce on proportion of manganese oxides and measurement and analysis of dust and residues of the ore. The metal and dust fall-out in the surroundings around slag are drained from the furnaces the plant in Porsgrunn. The work has several times a day at defined been presented to the Norwegian intervals. The drained slag is cast out Casting slag before installing the exhaust system (left) and effective Environment Agency, the Norwegian and cooled in slag pits and crushed extraction of smoke discharge after installation of the system (centre) and Institute of Public Health and to the desired size. FeMn slag is from the pouring point (right) neighbours with good response and is then used as a raw material in the discussed in a separate article in this production of SiMn alloys at Eramet report. Norway’s smelter in Kvinesdal.

Eramet Norway has great ambitions Mixing of molten slag and air during design for an exhaust system for assessed by the project team as the for 2021 and 2022 to implement casting causes the formation of the impact slag casting. In order basis for further optimisation and improved technology particularly diffuse discharges that are released to to determine the prerequisites for completion using modelling tools and related to a new treatment concept for air. Sustainable and environmentally the generation and dispersion of evaluation of the final design after process water. In 2020, we were able to friendly operations is a high priority diffuse emissions, as well as ensure implementation. take the step of starting industrial pilots at Eramet Norway, and therefore efficient design of the exhaust both for improved treatment of process in 2018 a measure was initiated to system, a systematic approach The slag pit exhaust system has an water from the plant and for sieve water from reduce diffuse emissions from the based on a combination of industrial extraction capacity of more than landfill, and in 2021 projects will be under way slag casting in Sauda through a observations, on-site measurements, 150,000 Nm3/ hour and captures the for the implementation of several new facilities. collaboration between the plant in discussion with involved operators generated exhaust gases using two In addition, priority areas in 2021-2022 are related to Sauda and Eramet Norway’s R&D and specialists, as well as theoretical caps located above the pouring point reduced emissions of dust, measurement and analysis department in Trondheim. The analyses were required. An initial and pit as shown in the figure over. methods, sludge and PAH (polyaromatic hydrocarbons). project goal was to create an optimal design draft was prepared and

28 ERAMET NORWAY SUSTAINABILITY REPORT 2020 29 ENVIRONMENT

Examination of dust and dust measurements in Porsgrunn

Eramet Norway has for many years Norwegian Environment Agency and directives) into Norwegian law via In order to assess whether there could carried out research and development the Norwegian Institute of Public the Pollution Control Regulations. be harmful properties and potential to acquire increased knowledge, Health participated at the meeting The regulations set requirements for health risks in particulate matter and to continuously reduce negative and answered questions from how it should be measured and the or fallout dust, the content was impacts on the environment neighbours. quality of the measurements. All the assessed against both limit around the smelters. In 2019-20, in measurements Norce has carried out values and air quality criteria. collaboration with NORCE and senior In Norway, local air quality is for Eramet Norway is based on this No excesses of particulate researcher Hege Indresand, new monitored with permanent measuring legislation. matter were measured. This research was carried out on dust from stations in several municipalities. In has also been measured in the smelter in Porsgrunn. In this work, Porsgrunn there are five measuring For the measurements in Porsgrunn several previous years, and instruments and measuring methods stations, and all measurement in 2019/2020, three instruments no overruns of these limits were used that have never before results are publicly available from the were used to measure the amount have been measured. The been used together. Norwegian Environment Agency’s of dust and the contents of the dust measurements also showed website on air quality. and three meteorological measuring values under all guidelines, The most important results from stations in order to have accurate except for the element the surveys are that no limit values Air quality is characterized by the knowledge of wind speed, wind manganese at one of the for dust are exceeded, and there is content of particulate matter in direction, temperature etc. necessary measurement sites. No contents nothing to indicate that dust from addition to nitrogen dioxide, ground- for complete analysis of the data. The (elements) were found for fallout Eramet Norway Porsgrunn has level ozone and sulphur dioxide. instruments measured dry fallout dust dust that could be harmful. It negative health effects. Particulate matter is small, airborne per hour, particulate matter such as was also noted that the fallout particles, and limit values have been mass concentration of PM1, PM2.5, dust consisted of large particles The Norwegian Environment Agency set for the sizes PM 2.5 and PM 10 that PM4, PM10, and TSP (Total Suspended (over 50 micrometers), which cannot and the Norwegian Institute of Public are so small particles that they can Dust) per hour, as well as the metals be inhaled. No Norwegian limit values Health received the report from the be inhaled and thus be harmful to in particulate matter such as mass have been established for fallout dust, and work in the spring of 2020, and then health. In addition, there are a number concentration per hour in PM2.5, PM10, the results were therefore compared with assessed the results. In the autumn of recommended values for other and TSP. The instruments were placed guidelines from countries in Europe where this is of 2020, the results were presented elements so-called air quality criteria. in two different locations and the found. The levels measured in Porsgrunn were well by senior researcher Hege Indresand measurements were carried out over below these. at a meeting with neighbours in Norway have implemented EU air several months. Porsgrunn. Representatives from the quality regulations (EU air quality

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New concept for purification of process water – Reduced discharges of metals to sea

In recent years, Eramet Norway has break these complexes. After good made great efforts to improve and results from laboratory testing, it was develop the facilities for purification decided to design and build a pilot of process water to reduce emissions plant for industrial testing, and in early of metals to sea. Several years ago, 2020 an industrial full-scale pilot was we started searching for better put into operation at the smelter in technology and facilities both in the Porsgrunn. Norwegian research community, at Norwegian suppliers and with major The concept for the pilot is that metal European and global experts in water complexes that cannot be felled chemistry and water purification. In out with chemicals that provide connection with an upgrade of one of metal hydroxides previously used the treatment plants scheduled to be are affected by iron sulphate so carried out in 2018, it was considered that metals are then felled out with that the best available technology sulphide. The result for 2020 compared was based on reverse osmosis. This to 2019, for example, shows an 80% became a very expensive facility, but reduction in copper emissions for the unfortunately this technology did not smelter in Porsgrunn. provide us with results that we were satisfied with. After a long period of research and development work, Eramet Norway After extensive investigations and has achieved a major breakthrough in lab tests in 2018 and 2019, it was how to improve treatment plants for noted that it was most likely difficult process water and reduce emissions of to achieve a higher purification metals to sea. It has now been decided rate for metals because these form to build such facilities also at the other strong complexes with all elements plants as well, and engineering has of the process water. After further been initiated to incorporate this at all development work, it was identified our smelters. how it could probably be done to

32 ERAMET NORWAY SUSTAINABILITY REPORT 2020 33 CIRCULAR ECONOMY

ERAMET NORWAY Circular economy

Circular economy is about resource utilisation. Eramet Norway handles several million tonnes of materials annually through our production

processes. Through knowledge development, Eramet Norway’s improvement work and targeted long-term goal: investment projects, we work to achieve the best possible utilisation of purchased We will increase our input factors, generated by-products and resource efficiency by waste materials. increasing value creation related to by-products and The essence of the circular economy is increased resource efficiency waste materials and by and breaking the traditional link between increased value creation, extraction of virgin raw materials and waste volumes. We work to reducing deposited volumes increase internal reuse and create new value chains based on side by 50% by 2030. streams, by-products and waste materials so that we contribute to increased value creation in society in general. We work with established and new industry partners, the national public policy institutions and educational and research institutions to achieve economic and environmental sustainability in both the short and long term.

Sustainable production and efficient cost management are two sides of the same coin. But it is important to recognise that in circular economy, most low-hanging fruits are already harvested, and new projects require considerable technical, economic and social efforts. Transparency and collaboration are required to map available by-products and side streams, knowledge to identify new areas of application and research and industrial testing to develop new technology. Few projects in the circular economy generate substantial revenues in the short term. Therefore, in order to succeed in this area, it is necessary that business leaders show courage and are willing to collaborate and share information. And that Status circular economy the authorities contribute through changes in regulations, framework The sludge volume deposited since conditions and financial incentives. the reference year has been reduced by more than 20% at the same time as the Volume of deposited sludge (1000 tonnes) production has increased by almost 15%. The last couple of years, the plants in Kvinesdal 45 41 and Porsgrunn have made the greatest 40 32 33 29 30 contribution, while the volume in Sauda 25 21 has increased. Prioritised projects that will 20 contribute to further reductions are: 15 – Making briquettes of sludge 10 (currently in the pre-study phase) 5 – NewERA (industrial pilots ongoing)

2005 2018 2019 2020 2030 Reference Goal

34 ERAMET NORWAY SUSTAINABILITY REPORT 2020 35 CIRCULAR ECONOMY

Pilot testing to develop industrial Further development of solutions are ongoing Silica Green Stone

Eramet Norway’s R&D department is developing alternatives to One of Eramet’s by-products is of natural minerals such as depositing, especially aimed at sludge, which is by far the largest silicomanganese slag, which from calcium and silicon contribute landfill volume. In parallel, we are working to find new applications for 2019 has had the product name “Silica to the fact that the product by-products, both in terms of increased value creation and sustainability. Green Stone” (SiGS). Eramet Norway has properties that can be To assess the impact of our proposals, we plan to connect with relevant produces approximately 300,000 useful in cement and concrete professional environments and conduct life cycle analysis (LCA). tonnes of SiGS annually, and until production, as well as soil now it has mainly been used in road improvement. construction and as a filling material 2020 2021 2022 2023 2024 2030 in construction projects. In recent years, the Norwegian cement producer Norcem has The ambition to contribute to good used SiGS as a raw material in Sludge pelletizing circular economy solutions is one the production of clinker. In 2020, of Eramet Norway’s four priority the collaboration between Eramet NewERA Briquetting areas for improving our climate and Norway and Norcem was expanded Silica Green Stone (SiGS) environmental performance. The to also include use in various blending extraction of virgin raw materials cements. This work will continue in includes the requires large areas and is an 2021. The work is partly based on addition of SiGS important reason why species are at experience from companies that in concrete used for non-load-bearing R&D/Pilot Project development Implementation risk of extinction and biodiversity is have replaced a share of the clinker products that are not covered by threatened. In addition, all production with blast furnace slag from raw iron applicable standards, as well as the requires energy that contributes to production. In addition to R&D at calculation of life cycle costs and greenhouse gas emissions. Through both Norcem and Eramet Norway, climate footprint for concrete when COLLABORATIVE PROJECTS We consider two main directions when it comes to reusing increased internal reuse and the the University of Agder (UiA) has adding SiGS. (part-funded by the public sector): sludge, dust and fines: development of new applications participated in this work. Studies and • EU EIT Raw Materials TripleLink: 1. For sludge and dust, we plan to produce pellets in a high-intensity for waste and by-products, we will tests have shown promising results, The third area where Eramet Norway EU-funded project, development of mixer at our smelter in Kvinesdal. In the first instance, we want to contribute to increased value creation and it is likely that SiGS can reduce the has continued development work new software for life cycle analysis build a test station to gather expertise and technical data as a basis for without increased consumption of use of limestone and other materials for new use of SiGS is in the field (LCA) establishing a future large-scale facility. The project is partly funded virgin raw materials. Reuse of SiGS such as ash from coal-fired power of soil improvement. SiGS contains through national public policy institutions. leads to reductions of confiscated plants, in addition to reduction of silicon, which can affect growth and • EU EIT Raw Materials GREENY: natural areas, energy consumption, greenhouse gas emissions. reduce plant diseases and thus cause 2. For the treatment of fine matter from manganese sources and EU-funded project, characterizati- greenhouse gas emissions, noise, dust increased crops. Bio available silica is other products, we work as part of the NewERA project to develop a on and improvement of crushing and other contaminants compared to Together with several other partners, a limited resource in the soil in several production process for briquettes. After successful testing in Eramet of products extraction and production from virgin Eramet Norway started an IPN project places in the world, and it is therefore IDEAS’s pilot furnace in 2019, we started industrial trials at our smelter NewERA Cold Agglomeration raw materials. («Innovation Project in the business interesting to get the substance back • in Kvinesdal in 2020. The test phase will be completed in the first half Unit (CAU): Eramet Norway’s sector») in 2020, which will investigate into the ecological cycle. In addition, of 2021. The results of the tests will provide important input to the project for agglomeration of side SiGS is through the production process how SiGS’s properties can affect manganese and lime in SiGS can also detailed engineering study (DFS) to be carried out as a basis for the streams exposed to temperatures up to 1600 concrete. The research collaboration contribute positively to plant growth. preparation of investment applications with the aim to realise this degrees and become a stable, strong involves UiA, Sintef and other industrial In 2020, Eramet Norway conducted SFI Metal Production: project. • and clean material comparable to companies and receives funding from several field trials, and new field trials esearch Council of Norway’s Centre natural rocks. A number of tests and the Norwegian Research Council. are planned in 2021 based on analyses for Research-based Innovation Another key area in our work on circular economy is to develop new analyses carried out by independent The project is due to be completed in of new research. • IPN ValSiGs: ­applications for Silica Green Stone (SiGS). third parties document that SiGS does 2022 and includes studies of current Utvikling for Silica Green Stone not contain organic pollutants, and cement and concrete standards, that the content of heavy metals is the possibilities and limitations of below the values naturally found in these and how to achieve necessary nature. At the same time, the content changes to standards. The project also

36 ERAMET NORWAY SUSTAINABILITY REPORT 2020 37 ENVIRONMENTAL DATA Eramet Norway Porsgrunn

Emissions to air

Reported CO2 emissions have increased in recent years. This is mainly due to the fact that deliveries of carbon-containing furnace gas to external customers were unfortunately terminated in the summer of 2019. Work is now under way with other stakeholders who can use this. In addition, our climate and environmental roadmap describes other projects that will help us achieve our goals of reducing emissions. Mercury emissions have been stable and below the permit for many years and are monitored through measurements controlled by external experts.

Emissions of CO2 Emissions of Sulphur dioxide Emissions of Mercury

250 60 8 7,2 206 49,1 6,7 7 6,6 6,1 Environmental data 180 186 50 200 37,4 39,0 38,8 6 5,1 145 40 150 130 30,8 5 30 4 100 3 20 per year Kilo Tonnes per year Tonnes 2 50 10 1 1000 tonnes per year 1000 tonnes 0 0 0 Porsgrunn 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

CO2 SO2 Limit Hg Limit Sauda

Emissions to sea Kvinesdal Copper and zinc emissions were historically low in 2020. In early 2020, a pilot plant was built in Porsgrunn to test and develop a new treatment concept, and new treatment technology will be industrialized and implemented at all works. Emissions of suspended substances have shown a positive development in recent years. This is an area that will be further improved by reducing emissions of dust and fine particles from production and continuous improvement of routines for cleaning outdoor areas.

Emissions of Copper Emissions of Zinc Emissions of Particles

160 100 600 150 500

400 25 15 282 20 15,3 16,3 300 255 14,8 15,0 221 15 10 7,1

Kilo per year Kilo per year Kilo 6,6 per year Kilo 5,6 200 164 10 5,3 151 5 4,1 5 3,2 100 0 0 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

Cu Limit Zn Limit Particles Limit All our emission figures are available at www.norskeutslipp.no By-products and waste materials Key actions 2018-2020:

CATEGORI 2019 2020 YEAR ACTIONS Silica Greenstone 91 943 tonnes 100 892 tonnes 2019 Surface water collection system (outdoor areas) Sludge and dust (deponi) 4 665 tonnes 4 328 tonnes 2019 Smart irrigation of outdoor areas Residual waste 174 tonnes 189 tonnes Measures to reduce noise: new doors, gates, isolated walls, 2020 Metal waste 160 tonnes 161 tonnes sound silencers and fans/equipment Hazardous waste 14 tonnes 29 tonnes 2020 Improved extraction at centre chimney furnace 10 Paper and cardboard 5 tonnes 4 tonnes 2020 Real-time monitoring of channeled dust emissions Wood waste 143 tonnes 129 tonnes 2020 Surface water collection system (outdoor areas) Mixed rubber waste 26 tonnes 0 tonnes

38 ERAMET NORWAY SUSTAINABILITY REPORT 2020 39 Eramet Norway Sauda Eramet Norway Kvinesdal

Emissions to air Emissions to air

CO2 emissions have been stable in recent years and are closely linked to production volumes. Our CO2 emissions come from carbon-containing CO2 emissions have been relatively stable in recent years. Our CO2 emissions come from carbon-containing furnace gas, and our climate and furnace gas, and our climate and environmental roadmap describes projects that will help us achieve our targets for reduced emissions. At the plant environmental roadmap describes projects that will help us achieve our targets for reduced emissions. At the plant in Kvinesdal, a separate power in Sauda there is already partial recovery of furnace gas. Construction of a pilot test facility for increased energy recovery has also been initiated. This plant has been built that recycles the energy in the furnace gas, so that today it is recycled and large amounts of electricity and heat are produced. is an important and socially beneficial measure that will start in 2021. Mercury emissions have been stable low and below permit for many years and are continuously monitored through their own measurements, as The discharge permit for mercury was reduced by about 80% at the last renewal, and we achieved our best result ever in 2020. well as control by external experts. In 2020, we experienced some challenges with the treatment plant, and a number of activities were carried out to improve the treatment process. Since then, the facility has worked very well, and a new real-time meter for enhanced monitoring has also been installed. Emissions of CO2 Emissions of Sulphur dioxide Emissions of Mercury Emissions of CO2 Emissions of Sulphur dioxide Emissions of Mercury

400 342 60 40 250 227 228 235 8 16 320 330 330 208 208 350 300 50 45,3 35 7 14 200 300 30 6 12 40 33,4 250 30,4 25 27,9 150 5 4,4 4,1 4,2 4,2 4,4 10 7,2 200 30 24,3 20 4 8 5,1 150 15 4,75 4,72 4,9 Kilo per year Kilo 100 3 6

20 per year Kilo 100 per year Tonnes 10 6,5 6,3 per year Tonnes 2 4 10 3,9 50 1000 tonnes per year 1000 tonnes 50 5 1,4 2,7 1000 tonnes per year 1000 tonnes 1 2 0 0 0 0 0 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

CO2 SO2 Limit Hg Limit CO2 SO2 Hg Limit

Emissions to sea Emissions to sea

Copper and zinc emissions were above the limit values in 2020. Internal investigations have been carried out, and external experts have carried Copper and zinc emissions were above the limit values in 2020. Internal investigations have been carried out, and external experts have carried out environmental impact analysis of the resipient. None of the incidents are considered to have a significant negative impact on the resipient. out environmental impact analysis of the resipient. None of the incidents are considered to have a significant negative impact on the resipient. After an extensive development process, we have now planned the implementation of new cleaning technology at all works. After a comprehensive development process, we have now planned the implementation of a new treatment concept for all works. Emissions of suspended substances have shown a positive development in recent years. This is an area that will be further improved by reducing Emissions of suspended substances have shown a positive development in recent years. This is an area that will be further improved by reducing emissions of dust and fine particles from production and continuous improvement of routines for cleaning outdoor areas. emissions of dust and fine particles from production and continuous improvement of routines for cleaning outdoor areas.

Emissions of Copper Emissions of Zinc Emissions of Particles Emissions of Copper Emissions of Zinc Emissions of Particles

160 240 2100 160 143,9 400 4000 141,6 205,0 140 1750 140 200 1443 700 120 1500 120 84,8 600 100 1250 1066 1023 100 82,3 100 473 150 950 60,2 500 80 55,2 80 382 374 80 51,8 1000 681 400 336 60 51,8 60 40,9 100 750 per year Kilo per year Kilo 60 per year Kilo 256 Kilo per year Kilo per year Kilo per year Kilo 300 40 500 40 40 20,4 39,0 34,8 200 9,4 50 24,4 20 8,53 5,90 20 19,0 250 20 1,37 1,02 100 0 0 0 0 0 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

Cu Limit Zn Limit Particles Limit Cu Limit Zn Limit Particles Limit

By-products and waste materials Key actions 2018-2020: By-products and waste materials Key actions 2018-2020:

CATEGORI 2019 2020 YEAR ACTIONS CATEGORI 2019 2020 YEAR ACTIONS Silica Greenstone 0 tonnes 0 tonn 2018 Smart irrigation Silica Greenstone 204 796 tonnes 219 335 tonnes 2019 Project for reduction of fugitive emissions from outdoor activities Sludge and dust (deponi) 9 333 tonnes 10 072 tonnes 2019 Projects for improving extraction capacity Sludge and dust (deponi) 17 894 tonnes 17 673 tonnes 2019 Surface water collection system (outdoor areas) Residual waste 90 tonnes 130 tonnes 2019 Water purification and reduction of discharges to sea Residual waste 101 tonnes 83 tonnes 2020 Real-time monitoring MRU Metal waste 324 tonnes 331 tonnes 2020 Surface water purification Metal waste 32 tonnes 0 tonnes 2020 Furnace cover upgrade to reduce fugitive emissions Hazardous waste 68 tonnes 58 tonnes 2020 Separation of water for public water cleaning plant Hazardous waste 110 tonnes 93 tonnes 2020 Real-time monitoring of channeled dust emissions Paper and cardboard 7 tonnes 7 tonnes Paper and cardboard 6 tonnes 7,5 tonnes 2020 Evaluation of ground conditions Wood waste 491 tonnes 203 tonnes Wood waste 96 tonnes 75 tonnes Plastic 5 tonnes 5 tonnes Plastic 16 tonnes 15 tonnes Asphalt 0 tonnes 0 tonnes

40 ERAMET NORWAY SUSTAINABILITY REPORT 2020 41 HESE policy for a sustainable Eramet Norway "

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

42 ERAMET NORWAY SUSTAINABILITY REPORT 2020 43