NORWAY

Sustainability report 2018 LES FORMES

Le système formel s’applique selon certaines Format vertical règles pour les formats verticaux. Highlights 2018 1/3 LE PLACEMENT DES FORMES NORWAY

La forme dans l’angle en haut à gauche (utiliséeEramet Norway: Analysis of our environmental NewERA – footprint In the process of uniquement en contour filaire) est toujours fixe first investment et ne doit jamais être déplacée. Sa proportiondrawing up a Benchmark Targets and roadmap for social concluded with other initiatives ne doit pas êtrecompanies modifiée. from 2023 subsidiaries responsibility NewERA made a breakthrough in 2018. 1/3 La forme du bas peut êtreTARGETS placée dans le dernier tiers Eramet Norway is investing a total of 5 million Eramet Norway will, in 2019 and 2020, also Euros in a pilot project on energy recovery work to implement goals related to our social in Sauda. du format ou dans le tiers du milieu. Son cadrageresponsibility in a broader perspective in line

Every new with the company’s guidelines. Page 34 dans la largeur du Stakeholdersformat restegood idea identiquefrom quel que expectations brainstorming Page 26 soit son placement dans la hauteur. Sa proportion ne doit pas être modifiée, sauf exception et Completescontrainte a shift to Environmental footprint 1/3 Eramet Group: de certains formats. environment-friendly Process electrode masses efficiency CSR at the heart of NewERA Increased research ERAMET’s strategic vision The first quarter of 2018, Eramet Kvinesdal effort on Biocarbon L’INTÉGRATION DES CONTENUS converted an entire smelter furnace unit Eramet aims to be a company recognized for its to PAH-free electrode masses. In May, the Eramet Norway has a new goal of reducing CO2 strategic model, management system and social world's largest PAH-free Søderberg electrode emissions by 43% by 2030. Putting into operation Texte et visuelscommitment. Thisdoivent objective is fully être integrated placés in the dans les zoneswas put into operation with great success at Resource biocarbon-based reduction agents is identified réservées5-year et strategic selon vision lesof the company.règles définies. Eramet Sauda. optimisation as a major contribution factor. Page 20 Page 40 Side 32 Zone d’expression du symbole en filaire

PAGE 4 > Production of manganese alloys > Roadmap for climate and Biocarbon PAGE 44 HR AND HES The greatest challenges are and consumption of raw materials environment Zone> NewERA d’expression – first investment In retrospect PAGE 54–69 resolved through team work > World-class technology > Eramet Norway is in the process concluded du texte seul > "Eramet invests both in us and > ERAMET operations in Norway of drawing up a roadmap for > Aiming at an energy shift PAGE 46–53 in the local community" social responsibility Renewable and reduced > Improves perfomance and > HES consumption sets records PRODUCT AND > HES policy PAGE 28 > Eramet Norway contributes to the > Put in use micro sensors PROCESS ETHICS AND SOCIAL > Energy balance status 2018 PAGE 6–19 RESPONSIBILITY Shows possibilities for a circular Zone low-carbon d’expression society > Energy efficiency > A world leader in the production PAGE 20-27 processing industry > Completes a shift to environment- > Barrier strategy reduces dust de l’image seule PAGE 66–70 of manganese alloys > CSR at the heart of ERAMET’s friendly electrode masses emissions by several tonnes > Emissions > Eramet Norway – a part of the strategic vision > Runs the world's largest per year > Finance group´s manganese division > Environmental performance: RESEARCH AND PAH-free electrode > Focus on noise at Porsgrunn > Markets and applications A key component of Eramet’s CSR DEVELOPMENT > Can reduce air emissions > New initiatives for cleaner air roadmap PAGE 32–41 Zone by d’expression 90 percent in Kvinesdal > Increased research effort on du symbole 2 SUSTAINABILITY REPORT 2018 3

CHARTE GRAPHIQUE – 02 L’UNIVERS GRAPHIQUE 12 Our goal is to reduce emissions per ton manganese by at least 43% before 2030, The greatest and by 80% before 2050. To succeed in this, we must, inter alia, make use of challenges are resolved another natural advantage, the forest. through

Eramet Norway is one of the world’s contributor to the low emission society cording to chemical laws, CO2 is creat- EnergiRike in Haugalandet. These net- of the future. ed. In order to be sustainable, we have works do not only work on climate- team work most sustainable and profitable to use biomass as a carbon source, in related problems, but also in other producers of manganese alloys. Steel can also be recycled many times such a way that the CO2 uptake and areas where we see it as natural to ex- The world is undergoing change, without diminished value. In our main emissions are balanced. This is pioneer- ercise social responsibility, for example, markets in Europe and North America, ing work, and we are dependent on a education, commercial development, and the challenges now seem about 80% of steel today is recycled. number of different collaboration part- environmental improvement, and up- greater and more comprehensive Our products are thus part of the ners, namely, forest owners and actors grading projects. circular economy based on the reuse who refine these resources, including than what we humans have of steel, but we are fully dependent on research stations and competency Common goals, knowledge experienced before. others working along with us when it actors within and outside Norway. In sharing and development of comes to finding areas of use and to this way we can become an actor in the more circular value chains will We are in a time that calls for cooperation. We increasing the degree of reuse. circular economy value chain. accelerate the development cannot resolve the climate challenges on our own. We need clear political leadership, compa- Another question we must ask We also are working on how we can of smarter production models, nies that assume real social responsibility, and a ourselves is: Do we manufac- manage our furnace gases, which are improved resource utilization, by Bjørn Kolbjørnsen, a mixture of CO and CO which end up high level of awareness among us as individuals ture our products in a resource 2 and sustainable solutions. CEO, Eramet Norway and as consumers. up as CO emissions. Here we have two efficient – sustainable – way? 2 possibilities: we can find technical solu- We are combining our internal sustain- tions where the furnace gases are used ability culture and everyday learning Important questions that every In our part of the production chain, we as a resource in other product chains, with active involvement in external industry needs to ask are: Does our have some built-in advantages. We live or we can ensure that we are capable networks. In this way, Eramet Norway product have a place in the future? Is in a country with forests and waterfalls. of capturing and storing CO2 to avoid will be a part of guiding the way for- Hydroelectric power enables us today our end-product a part of the solution it being released into the atmosphere. ward and will remain one of the world’s to be among those producers that have or a part of the problem? Here also, we are totally dependent on most efficient producers of manganese the smallest climate footprint per ton collaboration with other actors. We are alloys. Eramet Norway produces manganese alloy, a of manganese alloy produced. Howev- working on developing new circular metal only a few of us have a relationship with, er, this is not good enough. Our goal is value chains, and are working coopera- to reduce emissions per ton of manga- but one that makes steel harder and more dura- tively with, inter alia, Gassnova in their Bjørn Kolbjørnsen ble. A significant growth in global population and nese by at least 43% before 2030, and CCS (Carbon Capture Storage) project. prosperity in highly populated regions such as by 80% before 2050. To succeed in this, We are a part of strong networks in Asia and Africa, has increased the need to build we must, inter alia, make use of anoth- the regions where our smelteries are up infrastructure - buildings, transport networks, er natural advantage, the forest. Man- located, for example Eydeklyngen in and carbon-free energy production. Manganese ganese alloys are made when oxygen Sørlandet (Southern Norway), Industrial steel is a critical and durable building material in the ore is reduced in the presence of Green Tech in Grenland, and and this results in manganese being a central carbon in large smelter furnaces. Ac-

4 SUSTAINABILITY REPORT 2018 5 Eramet Norway is one of the world’s most sustainable manufacturers of manganese alloys.

Manganese is a metallic element Manganese is belonging to group 7 in the periodic necessary to make steel table of elements. ductile and durable.

Pure manganese is a steel-grey metal. It is hard, but at the For one tonne of steel, about 10 same time so brittle that it can be pulverized. kilograms of manganese alloy is On a worldwide basis, there are large deposits of manganese. In needed. Nearly 90 per cent of the the earth’s crust, there are some 900 ppm, making it the second world’s total manganese alloy most common metal after iron. It is primarily extracted from the production goes into the mineral pyrolusite (MnO2), also known as brownstone. More than production of carbon steel: steel 80 per cent of occurrences are found in South Africa and Ukraine. for the construction, energy and Other important deposits are in China, Australia, Brazil, Gabon, transport sectors, and the tool India and Mexico. Manganese is also found in the form of industry, and special steel nodules on the ocean floor. produced for the aeronautics and aerospace industries.

6 SUSTAINABILITY REPORT 2018 7 Markets and applications

Nearly 90 % of the world’s total manganese alloy production

is used to make carbon steel and specialty steels for the construction industry, the aeronautics and aerospace industry, the energy and transport sectors, and the machine tool industry.

The construction market alone accounts for more than half the steel used worldwide.

Eramet Norway supplies the world’s steel producers with a complete range of high-quality mangane- se alloys. In our processing plants in Norway, raw manganese is refined and processed into ferro- manganese and silicomanganese. These additive ingredients comprise 0,5–1 per cent of the composition of steel, graded by quality.

525 000 tonnes of manganese alloy sold by Eramet Norway in 2018

Building materials Aviation Energy sector Transport Batteries

The biggest outlet for manganese is These steels and superalloys are used High-grade steel is a critical factor Manganese steels are valued for their Manganese is used to make carbon steel, which is used to make the to produce an aircraft’s vital parts, in the global transition to renewable great wear and distortion resistance. alkaline batteries, for which it is the essential parts of all modern buildings. delivering the essential qualities of and more efficient energy sources They are used to make a range of rail main raw material. It is also a key Concrete reinforcing rods contain strength and safety. In the extreme over the coming decades. infrastructure parts as they can component in cathodes for manganese which makes them stron- heat and corrosion of engines, for withstand the weight of trains and lithium ion batteries. ger and stiffer. High speed steel saws example, safety is paramount. keep tracks straight. Vehicle are used extensively to cut structural Landing gears, comprising many manufacturers use them for the same parts on construction sites. On average high-performance steel, aluminium properties. In this area, some high- around the world, it takes 7 kilos of pure and titanium parts, are subject to tech applications use closely alloyed manganese or 10 kilos of manganese severe mechanical constraints. manganese steels. alloys to make 1 ton of steel.

8 ERAMET NORWAY SUSTAINABILITY REPORT 2018 9 Eramet group and Eramet Norway

A world leader in the World-class Norwegian From smelter to modern metallurgical expertise processing plant production of refined Metallurgy is a broad field with a long tradition in The Norwegian processing plants maintain the manganese alloys the ferroalloy industry, in which Norway enjoys high traditions and expertise that the ferroalloy industry international standing. Metallurgy is metal has built up since industrialization accelerated in technology. Norway in the early 20th century. Today, Eramet The worlds cleanest The French industrial group ERAMET is the second The employees working in this specialized field Norway supplies manganese alloys to the largest producer of manganese ore and the world's manganese alloy production range from apprentices and process operators to international steel industry market. largest producer of refined manganese alloys. The doctoral level researchers. Modern metal technology Eramet Norway realized early on that environmen- company is in the business areas of manganese, has become increasingly more sustainable tally sustainable onshore industry is the way of nickel and special alloys. over recent years. the future for Norway. Since 2001, when ERAMET acquired the processing plants previously owned Eramet Norway is part of ERAMET with processing by Elkem, about half a billion Norwegian kroner plants at Sauda, Kvinesdal and Porsgrunn, and an has been spent on developing and adopting green R&D group in Trondheim. The company employs technology. Today, Eramet Norway can proudly 510 full-time equivalents, and its operations make boast that we operate the world’s cleanest the ERAMET Group the world’s second largest manganese alloy production facilities. producer of manganese ore and manganese alloys. ERAMET Norway has a workforce of about 500 employees. It is a part of the ERAMET group, which is the world’s second-largest producer of manganese ore. International competitiveness

One challenge in operating and developing business in Norway is that, in cooperation with Norwegian authorities, we need to adapt our framework conditions so as to create the basis for Contribution-based All production strengthening our international competitiveness. 13 000 3.8 billion Eramet Norway maintains good dialogue with employees in Eramet euro revenue organizational philosophy is exported governmental authorities and other relevant actors. throughout the world in 2018 The company has a very flat organizational Eramet Norway exports all its production of structure built on a strong contribution-based manganese alloys, primarily to Europe and North philosophy and the Nordic model of America. The processing plants transport 98 per cent 510 collaboration. of their production by ship and the remaining FTE in Eramet Norway percentage by road and rail.

10 ERAMET NORWAY SUSTAINABILITY REPORT 2018 11 Product and process

Raw materials from Production of manganese our own mine

Eramet uses significant quantities of alloys and consumption raw materials in its production every year. These raw materials come from both of raw materials foreign and domestic suppliers, and they are mainly: – Manganese ore, with Eramet having access to its own mine in Coke Gabon via its part-owned company, Carbon as Comilog a reducing – Metallurgical coke Ore agent – Quartz and limestone Maganese source Slagging Other factor inputs Gives slag better viscosity (fluidity) and enables correct chemical Other important factor inputs are elec- composition for obtaining optimal trode paste and metallic silicon sources. World-class manganese reduction During the smelting process, a number of internal products are produced and consumed. They are transferred as requ- technology ired to other parts of the same plant and THE MANGANESE PROCESS (FeMn) between the three processing facilities. Eramet Norway has a century of experience in Electrodes manufacturing manganese alloys. This knowled- MnO2 (manganese) CO Supplies the process with C (coke) CO2 ge base, developed over generations, is Eramet electrical energy – equivalent Surface Norway’s most important resource and asset. This to the consumption of Energy expertise has also made the company a leader in 20,000 households consumption 2MnO + CO = smelting and refining manganese alloys. Temperature in 2 0 Mn2O3 + CO2 Furnace charge: 200 C The combined electrical energy consu- Today, the refining process is an advanced, highly Able to withstand extremely 3Mn2O3 + CO = med in the smelting processes, including Temperature in 2Mn O + CO technological process that few other countries in the high temperatures – 0 3 4 2 charge: 400 C auxiliary power, was about 2.0 TWh in world are able to emulate. From the time an optimal more than 2,000 OC 2018. The required amount of natural gas mix of ore and coke is blended and sent to the furnace, Mn3O4 + CO = Temperature in 3MnO + CO and propane used as thermal energy charge: 800 0C 2 and until the crucial refining process has been comple- sources amounted to almost 599 tonnes. ted, precision and experience are essential. With the aid Eramet Norway is also one of the of an advanced control system, every stage of produ- 0 country’s largest consumers of industrial Coke 1 250 C ction is monitored in detail, and the laboratories take MnO + C = Mn + CO Slag gases, particularly liquid oxygen, in samples at regular intervals to test quality. Metal layer 1 400 0C production processes.

955 312 237 935 112 024 11 464 2.035 TWh 599 TONNES OF MANGANESE TONNES OF METALLURGICAL TONNES OF QUARTZ TONNES OF ELECTRODE OF ELECTRICAL ENERGY TONNES OF NATURAL ORE CONSUMED IN 2018 COKE CONSUMED IN 2018 CONSUMED IN 2018 PASTE CONSUMED FOR THE AND AUXILIARY POWER GAS AND PROPANE SØDERBERG-ELECTRODES CONSUMED IN 2018 CONSUMED IN 2018 CONSUMED IN 2018 10 ERAMET NORWAY

12 ERAMET NORWAY SUSTAINABILITY REPORT 2018 13 Eramet operations in Norway

Eramet Norway Porsgrunn

Porsgrunn Residents: Eramet Norway is founded on Porsgrunn is a city of 35,000 residents in Telemark county. 35 000 longstanding industrial traditions. As the successor to a plant first established in 1913, Eramet Norway Porsgrunn The three Norwegian processing is a modern, high-technology business with long and proud traditions. Average seniority among the workforce is 23 years, and it is not uncommon to encounter plants are located between the second- and third-generation employees manning the smelting furnaces.

fjords and mountains of Rogaland, The plant is considered an attractive workplace locally and currently employs 148 people. Equipped with two smelting furnaces and a refinery facility, the Vest-Agder and Telemark. plant produces 75,000 tonnes of silicomanganese and 105,000 tonnes of refined ferromanganese annually. The plant consumes 630 GWh of electricity annually, from which it recovers almost 200 GWh of thermal energy by supplying carbon 148 FTE monoxide gas to Yara’s ammonia factory at Herøya.

TRONDHEIM FoU-group

Tizir, Tyssedal

SAUDA

PORSGRUNN

KRAGERØ KVINESDAL Ownership interest in a quartz quarry operator, Georg Tveit AS.

14 ERAMET NORWAY SUSTAINABILITY REPORT 2018 15 Eramet operations in Norway

Eramet Norway Eramet Norway Sauda Kvinesdal

Sauda Residents: Kvinesdal Residents:

The local rivers were harnessed for hydroelectric power generation in the early 5,000 Established in 1974, Eramet Norway Kvinesdal is centrally located in the Lister 5,800 20th century, paving the way for industrialization in Sauda. Eramet Norway’s region. Kvinesdal is a community of 5,800 residents, 191 of whom work at Eramet processing plant in Sauda employs about 159 people and, with its two 40 MW Norway in 2017. The modern, highly versatile processing plant is a key player in the local furnaces, is the largest ferromanganese producer in northern Europe. community and an undisputed leader in energy recycling, flexibility, adherence to Production has more than doubled since the 1960s, and over 75 per cent of the emissions requirements and, not least, customer satisfaction. plant’s revenue is from refined products. Annual power consumption totals 740 GWh when the plant is operating at full capacity. Measured in tonnes produced, Sauda The plant consumes 730 GWh of electrical energy annually and is strongly committed is the largest plant in the Eramet Norway family. Sauda has the highest output of to energy recycling. As long ago as 1981, a thermal power plant was built, which now refined ferromanganese alloys, processing about 60 percent of the manganese ore supplies nearly 90 GWh annually. Wastewater is reused by the plant itself and by imported by Eramet Norway. Eramet Norway Sauda is a driving force in the region’s external customers, including a turbot farm producing 250 tonnes of fish annually. socioeconomic development and takes its corporate social responsibility seriously, 159 A district heating plant, built in 2007, supplies hot water to five external customers for benefiting both the company and our stakeholders. heating off-site workshops. 191 FTE FTE

16 ERAMET NORWAY SUSTAINABILITY REPORT 2018 17 Eramet Norway R&D-department

Researching for a greener production

Eramet Norway’s development group in Trondheim consists of three researchers with access to the facilities and expertise of NTNU and SINTEF.

Working as a team, they are all acknowledged experts in applied research who continuously pursue enhanced understanding and greater insight. The development group supports the processing plants at Kvinesdal, Sauda and Porsgrunn, and contributes to innovation and knowledge dissemination within Eramet Norway.

The R&D department at Eramet Norway works with several prominent research bodies, including ERAMET Research within the group and external organisations such as SINTEF and NTNU in Trondheim, Teknova, Tel-Tek, FFF, Elkem Technology and PFI.

NTNU Teknova SINTEF FFF

NTNU (Norges teknisk naturvitenskaplige universitet) is Teknova AS is a technology and science research in- SINTEF is a broad and multidisciplinary This organisation was founded by the Norwegian ferroalloy industry the country’s biggest and leading supplier of engineers, stitute. Its operations are aimed at contract research, research organisation with international in order to collaborate on research in ferroalloy processes and products. covering areas of technology that range from nanotechn- technological development and innovation. core expertise in technology, science, The aim of the FFF is to maintain the position of the Norwegian ferroal- ology and IT, to petroleum technology and ship design. The institute aims to develop knowledge and techno- medicine and social science. SINTEF con- loy industry at the forefront in ferroalloy production and of NTNU, which has its own research environments, works logy, and to create value for its users, for society ducts contract research as an R&D electrometallurgical technology. Its biggest member companies are together with some of the country’s most important and for its owners. partner for industry and administration Eramet Norway and Elkem, and together they contribute something technological and industrial companies. Teknova aims to create proximity and cooperation and is amongst the four biggest contract like 80 per cent of the organisation’s subscription funding, with each between the University of Agder, Agder Research and research organisations in Europe. accounting for almost equal parts. trade and industry in the Sørland region. Due to the At the same time, the Norwegian Ferroalloy Producers Research international nature of its research activities, Teknova Association (FFF) is the most important arena for joint research within will develop a broad, international field of activity and the industry. In particular, Eramet Norway is a member of the Eyde international collaboration relationships cluster, where R&D occupies a central position.

18 ERAMET NORWAY SUSTAINABILITY REPORT 2018 19 Eramet Group – circular economy

A new CSR roadmap for the period 2019-2023 Our strategic vision in 5 years The Eramet Group’s board of directors has adopted in March 2019 a CSR Roadmap to effectively manage its CSR performance. This Roadmap, which links the CSR priorities with the pillars of the Group's five-year strategic vision, covers the period 2019-2023. The Roadmap also provides a framework for the Group's contribution to the United Sustainable Business partner Commited & Home for Entrepreneur value creator of choice contributive best talents Nations Sustainable Development Goals. Each of the 13 objectives of the roadmap corporate citizen comes with a quantitative target to be achieved by 2023.

The CSR Roadmap focuses on the Group’s commitment in three areas:

Commited to A responsible Eramet Group: women and men economic player

1 Ensure the Health and Safety of our 6 Be a leader in metals for the CSR at the heart own employees and subcontractors energy transition 2 Enhance skills, promote talent 7 Actively contribute to the develop- of ERAMET’s and career development ment of the circular economy 3 Strenghten the commitment 8 Set the standard in human rights of our employees in our field of activity

strategic vision Integrate and promote the Be an ethical business partner 4 richness of diversity 9 of choice

Be a respected and contributive Be the go-to responsible business Due to the nature of its mining and industrial activities, and aware of its 5 10 partner for our host communities in mining and metallurgy strong interaction with the local areas in which it operates, Eramet is reso- lutely focused on all matters related to sustainable development and cor- porate social responsibility (CSR).

The Eramet Group has a long-standing commitment to a responsible appro- ach and continuous improvement. It aims to be a company recognized for its Commited to our planet strategic model, management system and social commitment. This objective is fully integrated in the 5-year strategic vision of the company. 11 Reduce our 12 Protect the water resources 13 Reduce our air emissions and accelerate the rehabi- energy and litation of our mining sites climate footprint promoting biodiversity

20 ERAMET NORWAY SUSTAINABILITY REPORT 2018 21 Corporate Social Responsibility (CSR)

Actively contribute 2 Mt of low-grade ores or mining Environmental performance: residues valorized over 2019-2023 7 to the development of 10 Kt of industrial waste valorized over the circular economy 2019-2023 instead of being disposed of A key component The performance indicator is relative to additional materials that Eramet will valorise during the period which means that pre-existing recycling flows will of Eramet’s CSR not be taken into account. R/D actions are needed to implement this objective. roadmap Reduce our air - 80% of stack dust emissions in 2023 vs 2018 The definition of Eramet’s environmental objec- 11 emissions Stack dust was chosen as a representative indicator tives included in the CSR roadmap has been done of Eramet’s impact on air quality. Analysis of our through a specific project, coordinated by the environmental Corporate Environment Division, linking the best footprint experts of the Group and its subsidiaries. Eramet Norway has been fully involved and contributive Protect the water Ratio of rehabilitated surface areas/cleared in this approach, helping the Group with its envi- surface areas ≥ 1 during the period 2019-2023 ronmental expertise and recognized excellence. 12 resources and accelerate (excluding long-term infrastructure) Benchmark Targets and initiatives the rehabilitation of our with other To define the most material issues for ERAMET The most efficient way Eramet can contribute to companies from and ambitious but achievable 5-year targets, subsidiaries mining sites promoting biodiversity protection and, at the same time, 2023 we used a multiple-step methodology: biodiversity protect the watersheds is through mining site reha- TARGETS - analysis of Eramet’s actual environmental bilitation and especially revegetation. As far as we footprint know, very few mining companies have made - analysis of our stakeholder’s expectations such a commitment so far. - benchmark with best-in class companies and other players in the Mines and Every new Metallurgy sector Stakeholders - best practices collection coming from good idea from Reduction t CO /t outgoing product: expectations brainstorming our subsidiaries. Reduce our energy 2 - 26% in 2023 vs 2018 13 and climate footprint As a mining and metallurgical company, our Of which 16.5% is due to the business mix effect most relevant and material environmental related to the Group's strategic choice to develop its challenges are: mining activity which is lower in emissions than the - Circular economy Group's processing activities. - Atmospheric emissions - Protection of water resources and biodiversity

- C02 emissions and climate change.

This is the reason why these major issues have The progress of these objectives will be closely monitored by been selected to be included in the CSR road- the Executive Committee of Eramet, as well as by the Board of map. The following targets have been set. Directors – which has a dedicated strategy and CSR committee.

Every subsidiary within Eramet is expected to define the way it will contribute to these objectives and possibly go beyond these commitments.

22 ERAMET NORWAY SUSTAINABILITY REPORT 2018 23 Eramet Norway – roadmap

Longterm goals – climate and environment Roadmap Eramet Norway vision Social expectations/ Competitive for climate and CSR position Eramet Norway strategic objectives environment Longterm goals (2030):

In 2018, Eramet Norway set the long- The roadmaps in Eramet Norway (ENO) are a link in the company’s adoption of the process industry’s CLIMATE ENERGY ENVIRONMENT CIRCULAR ECONOMY term goal of a new roadmap for the road map of 2016, “Increased value added with zero environment and for a circular economy. emissions in 2050”, including our ongoing work with We shall reduce CO2 emissions We shall increase energy efficiency by We shall avoid negative environmen- We shall improve resource efficiency This goal was in addition to corresponding risk management. by at least 43% within 2030 and 80% at least 27% within 2030, compared tal impacts to the societies we are by increasing value creation linked to within 2050, compared against the against the reference year 2005. located in. byproducts and waste materials and reference year 2005. reduce level of depositing by long-term goals and the roadmap for The objective of ENO’s roadmap is to strengthen 50% within 2030. climate and energy that was launched in the basis for achieving our goals and to further develop our competitive strength through strategic the prior year’s sustainability report. planning and effective execution of development processes and projects.

For each goal we have established roadmaps Technological Operating conditions and Technological and describing key projects and activities on the way and economic complexity support programmes economic potential towards goal achievement. The roadmaps are regularly updated based on new knowledge.

Four factors affect how we determine our long-term climate and energy goals:

1 The society’s 2 Our competitive 3 Constraints 4 Technological and expectations position economic aspects Constraints relating to climate, The society’s expectations of us, which Our competitive position in the market energy, and environment, including Technological and economic are established national and internati- given both internal strong and weak research politics and access to relevant potentials weighted against the onal ambitions, goals, and regulations, aspects and the situation's possibilities support- and financing arrangements complexity involved in develop- and the larger society’s perception of and challenges. for developing and implementing ment and execution of new our company’s role in a future low- new technology. technological solutions. carbon and low-emission society.

24 ERAMET NORWAY SUSTAINABILITY REPORT 2018 25 Eramet Norway – roadmap

Eramet Norway is in the process of drawing up a roadmap for social responsibility

In 2018, the Eramet company intensified Eramet Norway its efforts on formulating its road map roadmaps for social responsibility. Eramet Norway is taking an active part in this work, and will, in 2019 and 2020, also work to implement goals related to our so- cial responsibility in a broader perspective Steel is a critical input in line with the company’s guidelines. factor in the low-emissions In the year’s sustainability report, we also present the Eramet company’s work on society of the future. creating a road map for social responsibility Climate and energy Environmental Circular economy (CSR). The road map connects the compa- ny’s priorities relating to social responsibili- Sustainable development requires new energy ty with the pillars in the company’s overar- solutions and more robust structures. Steel can, in ching vision for the period 2019 – 2013. The addition, be recycled indefinitely without losing itws company places much emphasis on the adaptation of goals and areas of focus to properties, Eramet produces useful products in a local conditions. resource-efficient manner.

Eramet Norway’s strategic goals are founded on a clear perception Climate and that a leading position on climate and environment would increase our competitive edge, and this would strengthen the company’s profit environment picture on a long-term basis. This occurs, inter alia, through: – Better utilization of our most important raw materials; strenghten our ore, reduction agents, and energy – Increased stability and process efficiency in our production processes. – Increased revenue through circular economy solutions competitiveness for by-products and waste material. – Reduced environmental costs, for example, those associated with emission quota costs and levies. – Increased attractiveness which improves possibilities for future recruiting of competent and engaged employees, as well as for collaboration with external competency environments. – Access to financial support and funding arrangements for research and development and investment projects.

26 ERAMET NORWAY SUSTAINABILITY REPORT 2018 27 Circular economy

total of ordinary waste in Norway. In 2008, the pro- 5 IMPORTANT INITIATIVES portion was 10 % and at present, the waste amount Norsk Industri's feasibility study points to five important generated by the processing industry is estimated at initiatives in developing a circular processing industry: approx. 3 %. At the same time, the value added by the processing industry has remained stable at around NOK 45 billion per year. Harmonizing and simplifying 1 European waste regulations Long-term innovation The extent to which a material is a by-product or waste This positive development is the result of long-term must be determined through the interpretation of innovation and development projects aimed at iden- European criteria. It is critical that the EU definitions be tifying solutions that make use of resources found in included into the Norwegian regulatory framework and one's own, or in other parties', by-products or waste. that the regulations be applied in the same way.

Prioritized policies Maintaining good dialogue between The circular economy is a prioritized policy area with- in Europe. In Norway, the government is preparing its 2 the environmental authorities and the own strategy on a circular economy. The Norwegian processing industry

Parliament has requested the government to table a Industry side-streams regarded as by-products are national strategy for a circular economy. often in demand and are simpler to convert than if the side-streams were defined as waste. It is important that The feasibility study is based on Norsk Industri's the flexibility in the regulatory framework be utilized and that increased exploitation is arranged for side-streams roadmap for the processing industry from 2016 and in the processing industry. Shows possibilities represents the input from the processing industry concerning important measures for further strength- ening the efforts toward a circular economy. Increasing the demand for 3 environment-friendly and resource- for a circular efficient products For the processing industry, a circular

economy is not a matter of making a lot Selecting environment-friendly products is a strong of money out of nothing. They are few driver within a circular economy. Emphasizing environ- processing industry mental concerns in government procurement provides projects that would yield large revenues, opportunities for growth in the Norwegian industry that in any event, in the short term. can lead to minimizing the environmental footprints of their products.

Increasing the focus on industry- 4 oriented Research and Development Spiller inn muligheter: Gunnar Grini, bransjesjef gjenvinning og Marit Holtermann Foss, fagsjef energi- og miljø i Norsk Industri spiller inn muligheter og tiltak til nasjonal strategi for å utvikle sirkulær prosessindustri. (R&D)

Increased focus on industry-oriented R&D within a circular economy must be included in the government's new strategy. Important research areas are the de- velopment of environment-friendly products, increased Norsk Industri has prepared a The study highlights good examples of a circular economy resource efficiency of by-products, technology related that are already in practice within the Norwegian process- to material recovery, and effective solutions for recycling feasibility study that describes what ing industry, including at Eramet. rare metals. a circular economy will mean for the Several examples from Eramet Norway show that the company is contributing actively to establishing a sustaina- processing industry, as well as the Facilitating collaboration ble circular processing industry in practice". 5 measures and modes of within the industry

Make better use of resources operation that are important for Knowledge of what side-streams exist, how these can The essence in a circular economy is constantly to improve be utilized, and the technologies that are required for strengthening the efforts of the the resource use efficiency of materials, energy, and other this are all critical factors in bringing about a circular raw processing industry in a circular input factors. This is not new for the processing industry. RINGEN SLUTTES: material loop. Government authorities should support Forsidebilde: Adobe stock, Veikart for prosessindustrien, Borregaard Denne side: Christopher Burns – Unsplash MULIGHETSSTUDIE FOR SIRKULÆR collaboration between operations in the processing High resource efficiency results in lower costs and is one of ØKONOMI I PROSESSINDUSTRIEN economy. industry aimed at identifying and exploiting their own, the competitive advantages in Norwegian industrial opera- ØKT VERDISKAPING VED EFFEKTIV RESSURSUTNYTTELSE or third parties', industrial side-streams. In many cases, tions. In 1996, the processing industry generated 16 % of the collaboration within industry groups or industrial parks is an excellent starting point for this.

28 ERAMET NORWAY SUSTAINABILITY REPORT 2018 29 4.2 GJENVINNING AV AVFALL En avfallsprodusent kan velge mellom å levere sitt avfall til godkjent avfallsanlegg eller selv å ta ansvaret for at avfallet gjennomgår gjenvinning. Det siste alternativet fullføres i praksis ved at avfallet erstatter materialer som ellers ville blitt brukt. Det er ikke nødvendig at avfallet erstatter bruk av andre materialer i det samme anlegget som avfallet behandles i. Det er tilstrekkelig at det skjer en substitusjon i samfunnet generelt. Det er heller ikke nødvendig at behandlingen av avfall primært har til formål at avfall skal

Foto: Eramet erstatte andre materialer, så lenge substitusjon er behandlingens hovedresultat.

Gjenvinning kan deles opp i tre underkategorier: Circular economy • Forberedelse til ombruk, • Materialgjenvinning, • Annen gjenvinning. Med annen gjenvinning menesERAMET: bl.a. energi- utnyttelse og bruk av avfall til utfyllingsformål. Forberedelse av avfall til gjenvinningBRUK (f.eks. AV SLAGG (SIMN-SLAGG) I SEMENT, sortering av avfall i fraksjoner)USE regnes ikkeOF SLAG (SIMN SLAG) IN CEMENT, Eramet show potential som gjennomført gjenvinning.VEGGFASADER,WALL CLADDING, ASFALT ASPHALT, OG SOM AND GRUS/ AS FYLLMASSE FOR ENTREPRENØRER OG Dersom avfall har blitt behandletGRAVEL på en slik / FILL FOR CONTRACTORS AND in practice måte at det har opphørt å væreTILDEKKINGSMASSEFOR avfall, jf.COVERING EUs MATERIAL End-of-Waste-kriterier, er gjenvinningen fullført selv om avfallet ennå ikke har erstattet andre The Norsk Industri feasibility study for a ERAMET: materialer (se kapittel 4.4). Hva slags prosess circular processing industry highlights som er nødvendig, vil variere.There Noen is ganger an annual vil production of about • Covering material several examples from Eramet that show SALESALG AV OF STØV DUST en kontroll være nok, for eksempel300,000Årlig produseres besiktigelse tonnes omof slag lag 300 which 000 is tonna by-prod slagg,- Utslagsgivende (municipalities er ofte / counties) at i norsk industri kjenner og funksjonstest av en gjenstand.uctsom marketed er Andre et biprodukt ganger by Eramet. som Eramet Approx. selger. 200,000 Om mange hverandre og muligheter dukker opp excellent potential in practice. FROMFRA RAFFINERINGS- REFINING er det tilstrekkelig at avfallettonneslag rengjøres 200 are000 eller sold tonn re annually. -selges årlig. The Konsulentsel- consult- gjennomA determining uformell factor dialog is som that følges often opp in the gjen - pareres, slik at det kan brukesingskapet på company, nytt. Cowi I mange har [illegible], gjennomført has grundige carried outanalyser nomNorwegian formell dialog. industry, I senere many tid companies er dette fortsatt FACILITIESANLEGG baseline analyses of the slag in accordance know each other and opportunities arise tilfeller vil likevel ikke avfalletwithav opphøre slagget the guidelines åi henholdvære til of Miljødirektoratets the Environmental til- viktigthrough og styrkes informal gjennom dialogue «klynge-samarbeid» followed up by avfall før det har gjennomgåttDirectorate.dekkingsveileder. en fullstendig The Utlekkingstestercovering tests show viser laverelower ogmore at man formal treffes dialogue. på relevante In more konferanser. recent times, Men materialgjenvinningsprosess,coveringutlekking som for ennabilityeksempel hva than man thatfinner provided i naturlige by natberg-- detthis satses is still også important stadig mer and på is aktivtreinforced markeds- There are annual sales of about 20,000 resulterer i at metall-, papir-,uralarter glass- rock som eller typesi dag plast- benyttes which nowadays til tildekking. are Slagget used er ogthrough salgsarbeid "group for collaboration"å finne potensielle and kunder.the fact tonnes of dust generated as a by-product as covering material. The slag is therefore a that people interact at relevant conferenc- Årlig selges om lag 20 000 tonn støv, som er avfall omarbeides til råstoffer,derfor eller et at kjemisk biologisk stabilt og miljøvennlig produkt. in the refining facility. The dust has a high chemically stable and environment friendly es. However, emphasis is also placed more Mnet bi-produkt content that, fra raffineringsanlegget. among other things, Støvet may nedbrytbart avfall (matavfall,product. o.l.) omdannes til Detteand more er til nytte on active for både marketing Eramet, somand tjenercase- behar used høyt Mn-innholdin other smelters som blant and annet for the kan pro - gjødselvarer og biogass. Eramet har lykkes å finne kunder som benytter pengerwork in på order bi-produktet to find potentialog kundene, clients. som kan duction of metals and metal components. benyttes i andre smelteverk og til produksjon Erametslagg til følgende:has been successful in finding erstatte dyrere jomfruelige råvarer med rimeli- Because of a considerable pigment av metall og metall-komponenter. På grunn av Avfallsprodusent kan også oppfylleclients who sine forplikt-use the slag for the following This is of benefit both for Eramet, which content, the dust may be used in • Råstoff til klinker (sement/Norcem) gere bi-produkter. sterkt pigmentinnhold kan støvet benyttes i elser iht. loven ved at avfalletpurposes: kommer til nytte earns money from by-products, as well as paint-manufacture and the manganese • VeggfasaderA raw material for aggregate for the client who can replace more ex- contentmalingsindustri, makes ogit usable mangan-innholdet also in animal gjør at ved å erstatte materialer som • Asfaltellers(cement ville (entreprenører) blitt/ Norcem) pensive iron-containing raw materials with feed. støvet også kan benyttes i dyrefôr. brukt. Dette kan for eksempel• BærelagværeWall claddingaktuelt i veier der (entreprenører) more reasonably-priced by-products. • Grus/fyllmasseAsphalt (contractors) (entreprenører) • Road ballast (contractors) • TildekkingGravel fill (kommuner/fylkeskommuner)(contractors) ERAMET: 34 ERSTATTERREPLACES FOSSILT FOSSIL BRENSEL FUELS EYDEEYDE-KLYNGEN: GROUP: Foto: Adobe Stock WASTE TO TO VALUE VALUE Whenever ore is smelted, CO gas is a by-product of the process. This gas is collected, put Nårinto malmpipes, andsmeltes re-used. er CO-gass CO gas iset used biprodukt year-round fra prosessen. at the plant Denne in Kvinesdal gassen for samles, the produc - TheProsjektet project er basertis based på onet forprosjekt, a pre-project, Eyde Zero Waste,panies som kartla (Glencore, alle avfallsstrømmer Eramet, and i Alcoa)syv av was kanaliserestion of electricity og gjenbrukes. which is then Årlig delivered benyttes to theall CO-gass central grid. ved From verket the i Kvinesdalplant in Porsgrunn, til Eydeklyngens Zero kjernebedrifter. Waste, which Målet identified er å utvikle all thebanebrytende clearly teknologi demonstrated, for produksjon as well av Fe-Mn-Ni- as a further produksjongas is delivered av elektrisitetto the artificial som fertilizer leveres plant sentralnettet. at Yara on Fra Herøya verket via i aPorsgrunn pipeline between leveres wastemetaller streams og råvarer in tilseven manganproduksjon, of the group's basertcore på åpotential kombinere for og creating behandle productsoksid- og karbonfrom the- these two industrial facilities which are located close to each other. Yara thus replaces operations. The objective was to develop by-products or the waste, alone or in collab- det gass til Yaras kunstgjødselanlegg på Herøya via en rørledning mellom disse to holdige avfallsstrømmer. Prosjektet vil bidra til betydelig reduksjon i behovet for avfallsdeponering. more expensive virgin energy sources with reasonably priced by-products. groundbreaking technology for production oration. A reduction in the side-streams was industrianleggene, som ligger nært ved hverandre. Yara erstatter dyrere jomfruelige ofGjenbruk Fe-Mn-Ni av mangan metals og and jern raw reduserer materials behovet for for nyproduksjon,achieved and med it tilhørendewas demonstrated reduksjon i that utslipp og energiforbruk. energikilderRecovery and med use rimeligere of thermal bi-produkter. energy manganese production based on combin- alloy products can be created. Economi- ing and treating oxide and carbon-contain- cally, it is a challenge to build an industrial Hot water is delivered to the fish farming facility in Kvinesdal and to Sauda municipality. ingDet wasteer kartlagt streams. potensial The for project minimering is aimed av biprodukter at facility og avfall for fra the de latter deltagende as the bedriftene, costs for the de- In Sauda, hot water is delivered to Sauda Fjernvarme AS (Sauda Remote Heating, Ltd) contributing to significant reduction in the veloped process is higher than the market Gjenvinning og bruk av varmeenergi (Glencore, Eramet og Alcoa) og videre potensial for å lage produkter av biproduktene eller avfallet and this is used for heating of streets and municipal facilities. This source is of benefit to need for waste disposal. Recycling of man- price. Since the companies underline the Det leveres varmt vann til fiskeoppdrett i Kvinesdal og til Sauda kommune. I Sauda alene eller i samarbeid. Det er oppnådd reduksjon av sidestrømmene og det er bevist at det kan both Eramet, which earns money from the by-products and the local community which ganese and iron reduces the need for new significance of these solutions over the long production,lages legeringsprodukter. with an resulting Økonomisk reduction er det utfordrende in term, å bygge the project et industrielt will be anlegg continued for sist- within leveresreceives varmt increased vann access til Sauda to electric Fjernvarme energy AS, and og heat det energy. benyttes det til oppvarming av nevnte, da kostnader for det utviklede prosessen er høyere enn markedspris. Ettersom bedriftene gater og kommunale anlegg. Dette er til nytte for både Eramet, som tjener penger discharges and energy consumption. an EU Horizon 2020 application with an understreker betydningen av disse løsningene langsiktigexpanded vil prosjektet consortium. videreføres i et EU Horizon på bi-produktene, samfunnet som får økt tilgang til elektrisk energi og varmeenergi. The2020-søknad potential med for etminimizing utvidet konsortium. of byproducts 36 and waste from the participating com-

30 ERAMET NORWAY SUSTAINABILITY REPORT 2018 31

Mn-dust recycled to the furnace

Ett av kjennetegnene i en sirkulær økonomi er leveres til deponi. Trolig er lite av dette avfallet Carbon from Crushing Raking, filter, Fine Carbon for Separation at ressursene i avfall i størst mulig grad utnyttes egnet for materialgjenvinning i dag. Men, SPL fraction reduction til produksjon av nye råvarer. Den sirkulære øko- avfallet kan være egnet for energiutnyttelse. Drying & Fe/Mn Pelletization sludge nomien bygger således videre på avfallshierarki- For eksempel utnyttes farlig avfall som brensel i et. Men, til tross for forventet teknologiutvikling, sementproduksjon, samtidig som farlige stoffer ALCOA HYDRO

bedre ressursutnyttelse av sidestrømmer og i det farlige avfallet destrueres i tilvirknings- Coarse High Temp. fraction Reduction ERAMET

bedre utsortering av avfall til materialgjenvinn- prosessen, bindes i sementklinken eller renses GLENCORE/ ing er det imidlertid viktig å erkjenne at både i røykgassen. forbrenningsanlegg og deponi vil være en del av

vår nødvendige avfallsinfrastruktur i fremtiden. Det er også eksempler på at prosessindustri Cryolite Scrubber Saleable Slags for for return sludge FeMnNi sale nyttiggjør seg overskuddsenergi fra nabo- to Alcoa Avfallsbrensel kan brukes til å erstatte fossile bedrifter. Dette bidrar til å optimere utnyttelse brensler i industrien. Avfallsbrensel brukes også av energiressurser og lavere energikostnader. til produksjon av fjernvarme. I slike tilfeller er Samarbeid mellom bedrifter i industriparker energiutnyttelsesgraden avhengig av etter- kan være et godt utgangspunkt for utnyttelse spørselen etter varmeenergien. Virkemidlene av overskuddsenergi fra industriproduksjon. Ett bør legge til rette for best mulig utnyttelse av eksempel på dette kan være samarbeidet mel- 25 energiressursene i restavfall. Prosessindustri lom industrien i Mo i Rana, som gjenvinner og med jevn og konstant etterspørsel etter energi utveksler mer enn 400 GWh energi i et normal- er spesielt godt egnet til dette. Videre er det år, dvs. en fjerdedel av el-energiinnsatsen. fremdeles avfallsstrømmer fra industrien som

15 Research and development

Increased research The innovation project "PyroGass" that is now effort on Biocarbon ongoing will, with the completion of a biocarbon test centre, receive an effective boost for

Experiences and new knowledge developing biocarbon. from the innovation project, "Eyse Biokarbon" is utilized in further research"

Eramet Norway has a new goal of reducing CO2 emissions by 43% by 2014-2018 2017-2021 2018-2022 2030. Putting into operation biocarbon-based reduction agents "Eyde Biocarbon" with the Forestry "PyroGass" The objective is to develop SINTEF competency project: is identified as a major contribution Owners' Association, AT Skog, was renewable biocarbon reducing agents The ambition is to build a factor. shut down in 2018. based on wood products. "biocarbon test centre".

Biocarbon material was produced at pilot plant scale PyroGass was initiated in 2017 by Norske Skog Saugbrugs, In 2018, the four-year competency-building project Eramet Norway has identified the replacement of under realistic process conditions and the project part- one of the world's largest and most modern production "Reduced CO2 Emissions in Metal Production" fossil carbon material with biocarbon as one of the ners acquired important new knowledge. Although entities for magazine paper. The objective was to develop under the management of SINTEF, was initiated. The most promising technologies for a major reduction the objective of establishing environment-friendly new technology for combined production of biogas fuels objective was to develop a platform for reducing the of CO2 emissions from the smelting process. production of biocarbon for the metallurgical industry and biocarbon through the use of surplus raw materi- effect on climate from production of Si, FeSi, based on Norwegian forestry was not fully realised, the al from paper production. The intention is to develop a manganese alloys, and TiO2 slag. Commercially available biocarbon materials pre- knowledge can still be used in other projects. combined pyrolysis and agglomeration process for the The ambition was to build a "Biocarbon test centre" sent a number of challenges that could limit their AT Skog is an organisation owned by family-based production of biocarbon which would replace fossil carbon that will provide the metallurgical industry and use in Eramet Norway’s closed furnaces. In order to forestry concerns in Agder and Telemark. material in the manganese industry. If the PyroGass pro- Eramet Norway with an effective tool for assessing be able to replace large quantities of today’s fossil Teknova (Norway) heads the project and industry part- ject is successful, Norske Skog Saugbrugs can become a carbon materials and developing bio carbon as redu- carbon materials with biocarbon, Eramet Norway ners have been Eramet Norway, Elkem, Saint Gobain, producer of sustainable biocarbon reducing agents for the cing agent in production processes. is actively participating in a number of research and Alcoa" Norwegian ferrous alloy industry. The work will contribute to reaching the goals outlined and development projects aimed at increasing in "The roadmap for the process industry" relating to knowledge, as well as developing biocarbon The project is being conducted in partnership with RISE increased value creation, a 30 percent CO2 reduction materials suitable for Mn production. PFI in Trondheim, the University of South-Eastern Norway by 2030, and zero CO2 emissions by 2050. In additi- in Porsgrunn (USN) and Cambi (technology supplier of on to the research institutions, SINTEF, NTNU, and The projects are a mixture of innovation and biogas plants), Eramet Norway and Ferroglobe Mangan CICERO, partners from the Norwegian Ferroalloy competency-building projects and several are Norway (end-user). Producers Research Association, FFF (ERAMET, supported by the Norwegian Research Council. Ferroglobe, Elkem, Wacker, and Finnfjord), and TiZir are also participating.

32 ERAMET NORWAY SUSTAINABILITY REPORT 2018 33 Research and development

"Eramet Norway will have the lightest NewERA – environmental footprint in our sector. first investment That is our strategic goal."

concluded The investment is a consequence of Eramet Norway's goal of having the NewERA made a breakthrough in 2018. lightest environmental footprint in Eramet Norway is investing a total of 5 million Euros in our sector and is thus a component a pilot project on energy recovery in Sauda. in our roadmap for climate, energy, Environmental environment, and the circular footprint economy. NewERA was developed Process in several phases. efficiency In 2018, we achieved a breakthrough in two important areas: NewERA

NewERA shall ensure:: Energy recovery – Drying / sifting of ore 5 million to a pilot project and agglomerating of – Increased efficiency in Eramet's in Sauda by-products and waste core processes Resource optimisation materials – Improved total resource exploitation In December, Eramet Norway was granted the – Higher environmental standards tender following its investment application In 2018, testing was carried out of "NewERA for the pilot project in Sauda. The total invest- briquettes" in Eramet's own technology ment was approx. 5 million Euros. Selection of Centre in Trappes outside of Paris. The test re- collaborating partners (sub-contractors) for the sults were promising and it was decided to con- Principal goals: project and requisitioning of the pilot facility duct a more comprehensive testing program in are planned for the first part of 2019. The facility the spring of 2019. The next phase in the project – Increase energy exploitation by at least 250 GWh will then be ready for testing in the summer will be large-scale testing in our smelter ovens of 2020. The pilot phase will be critical for the (reduce energy losses by 30 percent) in order to then conduct our pre-project aimed further planning of a full-scale energy recovery – Increase the stability in the oven processes and reduce the specific at drawing up an investment application. facility. energy consumption in the production of manganese alloys by at least 6 percent Enova supports this sub-project in the project – Reduce the specific carbon consumption and thus CO emissions Enova supports the project in Sauda as a 2 phase carried out from 2016 to 2019. component in its industrial pilot program per produced tonne by at least 2 percent launched in 2017. – Ensure sustainable handling of by-products and waste materials

34 ERAMET NORWAY SUSTAINABILITY REPORT 2018 35 Research and development

The key concept in PREMA is to increase Implementation of PREMA pretreatment tech- nologies in the processing unit will yield huge energy flexibility with the possibility of potentials. Energy and raw material flexibility will EU-Horizon 2020: PREMA using sustainable energy sources and increase, but at the same time, will contribute reductants. The objective is to achieve to a reduction in fossil fuel consumption of by 20%. The solution is energy-efficient and provides sustainable manganese production the potential for a 20% reduction in total energy Aiming at an energy shift through the reduction of total energy consumption and 10% lower operational costs. consumption and CO2 emissions. PREMA PREMA's ambition is to scale up the technology for use in manganese production both in Europe will extend over four years and will have and in South Africa. Renewable and reduced a budget of 12 million Euros.

Eramet Norway is participating in its consumption first EU Horizon 2020 research project, PREMA, along with a consortium of 12 partners representing all the manganese alloy producers in Europe.

FERROGLOBE

SINTEF

NTNU OUTOTEC

ERAMET HZDR – HELMHOLTZ ZENTRUM DRESDEN ROSSENDORF

DLR – GERMAN AEROSPACE IETU CENTER

ERAMET FZ

OUTOTEC Choice of sustainable Establish a energy sources pretreatment step

The project will develop and demonstra- This can be achieved through dividing te innovative technologies which can production into two separate units as utilize various energy sources, CO-rich well as by establishing a pretreatment industrial overflow gases, biocarbon, step prior to the smelter process. and solar energy in the production of Mn alloys and Mn steel.

36 ERAMET NORWAY SUSTAINABILITY REPORT 2018 37 Research and development

Task Force EuroAlliages: Eramet Norway contributes to the low-carbon society

In 2018, Eramet Norway actively contributed in the Euro Alliages' feasibility study “The contribution of the energy Intensive Industries to the EU strategy for long-term emission reduction of greenhouse gases”.

The EuroAlliages feasibility study describes This contributes, and has contributed, over possibilities and solutions that can contrib- years to improving energy efficiency and ute to the transition to a low-carbon society significantly reducing emissions. through the reduction of emissions from European ferroalloy and silicon industries, Demonstrates important milestones while the industry, at the same time, ensures towards a low carbon society its competitive edge, innovation ability, and The study that EuroAlliages has set up is an its central position. analysis and overview of the most important milestones in enabling the transition to a The study was submitted to the EU in low-carbon society as a part of “Vision 2050”. September as well as to 11 other EU energy- intensive sectors. Eramet Norway actively contributes, inter alia, by sharing its own studies on reducing REDUCTION Plays an active role CO2 emissions from manganese production Eramet SA and Eramet Norway are members of EuroAlliages together with 95% of Europe’s ferroalloy and silicon producers. The industry actors play an active role in the realization of Eramet Norway contributes actively in a low-carbon economy in Europe. enabling the transition to a low-carbon society as part of the European "Vision 2050" EuroAlliages' members demonstrate engagement in the realization to a transition to a low-carbon society by investing in, developing, and making use of new environment-friendly technology.

38 ERAMET NORWAY SUSTAINABILITY REPORT 2018 39 Research and development

Shows the way to PAH-free smelter furnaces: Eramet Norway Sauda 2018: Completes a shift to Runs the world's largest environment-friendly PAH-free electrode

electrode masses On the basis of the excellent R&D efforts are continuing «Controlled Tapping» Even if some of the Eramet Norway In the competency-building project, results from Kvinesdal in electrodes have now demonstrated "Controlled Tapping", a systematic Eramet Norway has achieved two A major shift 2017, an electrode at Eramet satisfactory operation using PAH-free stripping of the furnace was carried milestones in its work on the intro- The introduction of PAH-free elec- Sauda was converted in May electrodes, the need still exists to in- out in order to study conditions inside duction of new environment-friendly trode masses on large, heavily-load- During the first crease the competency around the use the smelter furnace. In this connection, electrode masses in manganese ed Søderberg electrodes represents 2018 to the new, PAH-free, of the new electrode masses. Funda- electrodes were inspected and tests quarter of 2018, smelter furnaces in 2018. a major shift for manganese produc- environment-friendly mental properties are altered due to were taken to compare properties During the first quarter of 2018, tion and for the ferrous alloy indus- Eramet Kvinesdal the new binder agents and there is a between the various electrode quali- electrode mass. Eramet Kvinesdal converted an en- tries. converted an entire need for operational adjustments to be ties. The results will be used in further tire smelter furnace unit to PAH-free made in order to run the new qualities R&D work, and with the help of math- electrode masses and in May, the Despite massive R&D efforts since smelter furnace With a diameter of 1.9 metres, the elec- in an optimal fashion. ematical modelling, optimal operation world's largest PAH-free Søderberg its invention by Carl Wilhelm Sø- unit to PAH-free trodes at Sauda are among the largest of the new PAH-free qualities will be electrode was put into operation derberg in 1917, the industry has in the world. Throughout the year, A unique possibility to study the prop- simulated. with great success at Eramet Sauda. been unable to find satisfactory electrode masses and Sauda demonstrated a reliable and erties of PAH-free electrodes present- This all started at Kvinesdal in 2017 alternatives to tar-based electrode in May, the world's efficient operation, and was the first to ed itself when Smelter furnace 2 at when the world's first successful in- masses. PAH-containing coal tar largest PAH-free show that the new PAH-free electrode Kvinesdal was shut down for renovation dustrial testing of PAH-free electrode pitch has been the dominant bind- mass could be used in the largest Sø- in 2018. masses on large Søderberg elec- ing agent in Søderberg electrodes Søderberg electrode derberg electrodes. trodes was carried out. right up to the present. was put into opera- We are the first in the world to suc- tion with great Kvinesdal runs the world's first ceed in running large electrodes Collaboration smelter furnace equipped with using new environment-friendly The success of Eramet Norway is a success at Eramet environment friendly electrode electrode masses". result of close collaboration between Sauda. the processing plants at Kvinesdal masses containing no PAHs. Combined successes and Sauda, the International Elec- eliminate emissions trode Competency Group (ICG8) After carrying out the first successful The introduction of new environ- within the ERAMET enterprise, industrial testing of PAH-free electrode ment friendly electrode masses has contractors, as well as internal and masses at Kvinesdal in 2017, new mile- overall been a success for Eramet external R&D resources. stones were reached in 2018. Kvinesdal Norway, but especially so for the en- trodes. This, together with a steadily carried out a full conversion to PAH- vironment and health-related issues. Heightened interests increasing interest from European free electrode masses in the entire Smelter furnaces with PAH-free elec- Up to now, there has only been industry, is causing other contractors smelter furnace 1. The furnace was the trode masses play a large role in the one contractor providing PAH-free to aim for test-deliveries of new envi- first in the world that was run on large elimination of emissions from harm- electrode masses. However, interest ronment-friendly electrode masses to Søderberg electrodes using the new ful tarry substances, PAH (polycyclic is growing. Eramet in 2019. environment friendly electrode mass aromatic hydrocarbons), which have Eramet's breakthrough shows that with no PAH. a negative effect on the environment PAH-free binding agents can also be and on the working environment. used in large, heavily-loaded elec-

40 ERAMET NORWAY SUSTAINABILITY REPORT 2018 41 Research and development

Eramet Norway's R&D department and Eramet Sauda have together developed and optimized a venting system that About the project will reduce atmospheric emissions by about 80-90 percent New venting system developed: compared with today's levels. The venting system is being Project objectives built at the Sauda plant in 2019. The goal of the project was to design a venting R&D collaboration for environmental system with a fume hood over the slag casting Can reduce air emissions improvements process at Sauda. A hood was already in use but it needed optimization in order to achieve more The Research Department in Eramet Norway is collaborat- effective emission handling. ing with all the other plants to solve industrial problems. by 90 percent Eramet Norway's goal is to come up with solutions in advance of demands from government authorities and from the community at large to develop and implement Simulation methods sustainable production processes that would minimize its being used Eramet Norway's R&D department and Eramet Sauda, in environmental footprint. Reducing diffuse emissions from a scientific and practical teamwork, have collaborated to the production processes is an area in which much effort In this project, we used CFD modelling, a recog- has been invested and this has resulted in major improve- nized simulation method for problems where gas solve the problem of atmospheric emissions from the slag ments for the environment. in flows play an important role. Simulations of pit at Sauda. The result is a new venting system that is existing conditions in the pit was carried out Scientific interdisciplinary teamwork in order to obtain a good knowledge of air and being built at the processing plant in 2020. leads to increased success emission flows during slag casting. A number of Systematic and scientific teamwork, combined with the physical and chemical phenomena are involved experience and knowledge of plant personnel, theoretical in this process and these were taken into account studies, modelling projects, industrial measurements, and in the assessment in order to create an optimal implementation of proven ideas, constitutes a teamwork design for a new fume hood. effort that increases the chance for success in R&D projects. The collaboration between Sauda and the R&D depart- New optimized solution ment in Eramet Norway was initiated in 2017 in response to the need to reduce diffuse emissions from slag pits at Based on meetings and discussions with plant Sauda. personnel at Sauda, suggestions for practical issues and restrictions related to the slag cast- ing process were taken into consideration in the design of proposals for new fume hood solu- Extracted slag is a valuable by-product of the smelting process tions. Advantages and disadvantages of various which contains a considerable quantity of manganese oxides. solutions were outlined through the use of CFD The slag is cast out and cooled in slag pits and afterwards modelling tools (ANSYS Fluent). Results show that broken up to the desired size distribution at the plant. It is the optimal solution is able to reduce about 80-90 then used as raw material in the production of another type of percent of the daily diffuse emissions from the manganese alloy called silico-manganese. slag pits at Sauda.

To be built at Sauda

Based on the results, new optimized solutions were selected and shall be installed at the plant in 2019. The optimal solution has two ventilation fume hoods. One fume hood is located in the furnace housing in order to extract emissions from the ladle while the other is located outside the fur- nace housing over the slag pit in order to capture as much of the emission from the pit as possible during casting.

42 ERAMET NORWAY SUSTAINABILITY REPORT 2018 43 oppdateres

An article from An article from Eramet Norway's Eramet Norway's 2015ENVIRONMENT sustainability 2016 sustainability AND SUSTAINABILITY report reportENVIRONMENT AND SUSTAINABILITY

SPECT SPECT ENERGY- A road map for the Øyvind Slåke MARKING Technical Director of the Energy and Environmental GUARANTEES OF Department ORIGIN ARE A GREEN processing industry The Federation of MARKING SCHEME Norwegian Industry FOR ELECTRICITY Ole Børge Ytredal, The climate meeting at Paris COP21 set a number of ENERGY Director of the Federation of Norwegian industries ambitious climate targets. The target of the average Guarantees of origin are a labelling temperature on earth not increasing by more than scheme for electricity that shows the SHOULD

IN RETRO IN RETRO electricity customer that a certain two degrees in the period to 2050 is still in place, but quantity of energy has been gener- it was also decided to limit this increase to 1.5 degrees. ated from a specified energy source. The scheme was introduced with the PAY FOR ITSELF EU's first renewables directive COP21 also decided that from 2050 to The Norwegian processing industry is Norwegian processing industry, together (Directive 2001/77/EC) in 2001 in One of the most important advantages for industrial 2100, greenhouse gas emissions from extremely energy-efficient and based on with a number of research environments order to give consumers a choice production in Norway is emissions-free and green between renewable and non-renewa- human activity should not exceed levels clean, renewable hydroelectric power, and educational institutions, now repre- ble energy. At the same time, energy hydroelectric power. that can be absorbed naturally and by making it the world-leader in terms of sents a significant expertise resource – producers who sell guarantees of means of CCS. This will provide the climate and the environment. It repre- and one that will prove entirely decisive origin receive an additional income Green hydroelectric power, combined with framework for the low-emission society sents an important part of Norwegian in developments to come. Industry in Norway runs on from their renewable energy Norway's position as one of the world's emissions-free energy of the future. wealth-creation and accounts for signif- We have to strengthen our production. most technologically-advanced countries, The Federation of Norwegian Industry is In order to ensure that Norwegian icant expert values. The companies that position in the low-emission provides an extremely good basis for con- actively working to change the guarantees society is prepared for this low-emission go to make up the processing industry society It is the energy suppliers who buy tinuing industrial production in Norway. of origin system in order to eliminate any society, the Norwegian government has are located throughout the country, In the low-emission society of the fu- the guarantees of origin from energy The government also stresses this in its doubt that Norwegian industrial production commissioned an expert committee with most being important keystone ture, there will be an increased demand producers. The energy suppliers can Industrial Report, which was presented on uses emissions-free energy. Following con- to prepare a strategy for green com- industries in their respective local com- for products with a small carbon foot- then give a guarantee to the customer 31 March. sideration of the Energy Report last sum- petitiveness. The committee has been munities. The Federation of Norwegian print. This is also the case for products that the energy the customer is mer, the Storting has instructed the govern- tasked with presenting proposals for an Industry believes that the processing which contribute to reduced energy paying for is renewable, and that an amount of renewable energy is being Going on the offensive on environ- ment to look more closely at the system. overall strategy to ensure that industry industry should account for a larger pro- consumption, products used in energy generated that is equivalent to the mentally-friendly initiative will still be able to compete globally portion of Norwegian wealth-creation in production and storage installations, amount used by the customer. Industry is now high on the political agenda The system has its origins in Brussels. The once environmental policy is reinforced the low-emission society than it does at and products based on renewable raw because we have emissions-free hydro- draft for a new renewables directive envi- by stricter measures. present. For this to happen, there has to materials. Source: The Norwegian Water electric power and because industrial sages a continuation of the system, but at A new road map for an innova- be a demand for the industry’s products The Norwegian processing industry is Resources and Energy Directorate companies in Norway, in their road-map for the same time there is also scope for adap- tive and value-creating Norwe- in the global market, as well as compet- currently extremely well placed, with (NVE) increased value-creation and reduced emis- tations that ensure that the green nature of gian processing industry itive conditions and access to renewable everything required to further strength- sions up to the year 2050, have adopted Norwegian hydroelectric power and indus- Just before the close of the year, the energy at competitive prices, and the en its position in the low-emission an extremely aggressive attitude to conti- trial production is not undermined. committee asked the Federation of industry has to reduce its greenhouse society – as long as we have an inno- Neither the climate nued environmentally-friendly initiatives in Norwegian Industry to draw up a road gas emissions in line with the EU-ETS vative and wealth-creating Norwegian nor Norwegian value Norway. Neither the climate nor Norwegian map for the processing industry for the and international agreements. processing industry before 2050. The creation are served by a value-creation is served by a system of period leading up to the low-emission Norwegian research – a deci- aim of the road map is to show us how The underlying principle for further industri- guarantees of origin that contributes to the system that contributes society of 2050. The Federation, which sive area of expertise in a global to achieve this. It should describe tech- al initiatives is energy security for compe- green-washing of energy production based titive conditions. It is important that there is the industrial organisation for the context nological opportunities and barriers, and to green-washing coal on burning coal. The system has to be should be no doubt that energy bought in changed, and the Federation of Norwegian processing industry, enthusiastically The processing industry is an exper- which tools and general conditions are power generation Norway really is green! Physics says so, but Industry aims to play a constructive part in accepted the challenge, and work on tise-driven sector that has responded required if we are to succeed. a financial instrument known as guarantees ensuring that this happens. drawing up the road map is underway, to continuous and increasing global of origin has been created which is contri- with submission to the expert commit- competition with continuous efficien- buting the confusion on this point. tee planned for May 2016. cy-improvements. The result is that the 16

14 ERAMET NORWAY

44 ERAMET NORWAY SUSTAINABILITY REPORT 2018 45 Eramet Norway Sauda

Improves perfomance and sets records

Eramet Norway Sauda Environment-related facilities had no However, a few short periods with violations of the discharge permits. unstable production processes lead to improves discharge results Despite some unstable periods in the a slight increase in marine discharges in important areas in 2018. processing unit, Sauda again set new of suspended material and some metal reduction records in its furnaces and elements to the sea compared to 2017. refining units in 2018. Still, the plant kept the marine dis- charge level far below the permit limits. Stable processes yield good Despite these unstable periods, the environmental performances processing unit at Sauda again showed The results in Sauda again reinforces a year with production records for the the connection between stable produc- furnaces and the refinery unit. Measurement equipment set up at the local marina. tion processes and excellent environ- mental performances. Put in use micro sensors

Eramet Norway Sauda is the out at several locations around the processing plant. A variety of measu- first smelter operation in rement instruments were used. Norway to deploy a network The processing plant at Sauda is located in such a of micro sensors around its FIDAS, an instrument which conti- Our neighbours way that many of the municipality's residents have a nuously measures the dust concen- good overview of the plant's activities and emission processing plant. tration in the air and at the same time, records meteorological data, is are the driving situation at all times. The sensors make continuous me- in use for collecting information and force to Every year, the plant's neighbours are invited to asurements of the amount of fine identifies whatever effects on air open house events along with the plant operators, dust (PM10) in the air. These are quality result from activities around reasonably-priced sensors that are the processing plant. specialists, and managers from the processing plant. environmental conceivable as becoming standard The measurements show that the These arenas are used as inspiration for achieving for measuring air quality throughout dust concentration in the air is affe- Measurement equipment set up industrial operations in the future. The cted by the weather and winds but improvements improved environmental performance and at the at a neighbour. processing plant at Sauda is an early it also appears that there is an effect same time, they enable the company to share adapter in applying new technology from our daily activities. information on environmentimproving processes aimed at helping the industry achieve These measurements assist us in that are relevant for good neighbourliness. more knowledge regarding what identifying our major contributors of effect our activities are having on the diffuse emissions and enable us to Achieving and maintaining good neighbourhood surrounding environment. initiate the measures that would give relationships at Sauda is an important driving force the best results in reducing diffuse in reaching zero dust emissions. Measurement campaigns dust emissions. During 2018, two long-term measure- ment campaigns have been carried

46 ERAMET NORWAY SUSTAINABILITY REPORT 2018 47 Eramet Norway Sauda

Energy efficiency

The operation achieved a This represents an improvement of In 2012, we used 25 tonnes of propane ca. 10 MNOK, and demonstrates the per month. In 2018, the total consump- total reduction in specific value of achieving and maintaining tion for the year was 24.8 tonnes. The energy consumption per stable processing controls in primary improvement was result of goal-ori- tonne produced of 4.7%, processing over time. Furthermore, a ented work overtime. The conversion reduction in consumption of auxiliary of the pilot lights at the mercury puri- corresponding to 30 GWh power was achieved corresponding fication unit and the conversion of the in 2018. to 8% measured with respect to the skjenketørkene (2 units) from propane reference year of 2012. to CO gas are important contributors.

In 2018, we reached our objective of reducing propane consumption by 90% measured with respect to the reference year of 2012.

In the cold operations area, an automatically- controlled "Smart Collaborates in forward- sprinkling unit", looking research environ- Barrier strategy reduces consisting of four sprinkling outlets, was ments aimed at obtaining dust emissions by several put in operation. new knowledge on tonnes per year These extract water atmospheric dust emissions. from the fjord (salt water) A number of barrier strategies for reducing dust emission from and sprinkles the outside the heart processes were put in place and expanded in 2016. One area on the finished In 2018, Eramet Norway Sauda collaborated closely with of these involved connecting laser meters for dust and particle product side that is not Dr. Hege Indresand at NORCE in developing increased emissions emanating from the production building (diffused dust paved with asphalt. knowledge on actual diffuse dust emissions and on the emissions) to automatic on and off control of "water-fog covers" This initiative results in general air quality in the immediate vicinity of the process over the largest openings in the production building. non-asphalted surfaces unit. NORCE is a new and forward-looking research institute remaining wet at all times with a broad professional scope and a strong knowledge Mn measurements of this water has shown that the Sauda and ensures minimum environment. NORCE provides research and innovation plant with these "last-ditch" barriers had reduced the diffuse dust production during within the energy, health, climate, environment, society, and atmospheric emissions by several tonnes during the year. transport activities. technology fields. Its results respond to central societal challenges and contributes towards adding value on a local, national, and global scale.

48 ERAMET NORWAY SUSTAINABILITY REPORT 2018 49 Eramet Norway Porsgrunn

Focus on noise at Porsgrunn

Eramet Norway Porsgrunn is taking the noise problem very seriously and will work systematically to reduce noise from our processing plant at Herøya.

Regular dialogue with our neighbours implementation should be prioritized. and the environmental filter on furna- Initiatives carried out on current problems such as noise In 2018, all the prioritized initiatives ce 11. These are noise sources that, in in 2018 have yielded excellent is an important source in our conti- were carried out. In March 2019, new the survey of 2017, were the most do- results. The estimated noise nuous improvement efforts. In 2017, a measurements were carried out in minant. And in addition to these initi- level is now 2-3 dB lower than comprehensive program was carried order to confirm the effect of the atives, noise shields were also installed out involving noise measurements improvements, as well as for planning on furnace 11 on each side of the grate, in the survey in 2017. and modelling of initiatives that could whatever new initiatives to be carried since this was perceived as an annoy- possibly be effective; following this, a out in 2019. ing sound source by the neighbours. plan was drawn up for execution of After installation, there have been no the initiatives in 2018. Initiatives carried out in 2018 have yiel- neighbour complaints related to this ded excellent results. The estimated project execution. In the Sustainability Report for 2017, noise level is now 2-3 dB lower than in results were presented from the the survey in 2017. The initiatives have Eramet Porsgrunn feels that the up- noise measurements and noise maps had the greatest effect in reducing grading project has been very success- were drawn up by Brekke & Strand. In noise from fans, from repair ports ful, but more work should be done on addition, a briefing was done on the for scaling of ladles, and new sound new initiatives in 2019 to reduce the important noise-reduction measu- suppressors in the ventilation systems noise levels further. res that were identified and whose on the finished goods crusher filters

• Shore power for boats application for funding is being processed at ENOVA. When the application has been approved, • Sound suppressors installed in chimneys implementation is planned during the subsequent year. of the finished product crusher The most important • Sound suppressors at various fans • Noise-shielding furnace 11 around furnace 11 technical initiatives New planned initiatives Noise-shielding gas supply unit furnace 11 - • Environmental filters at furnace 11 further sound-insulation of fans carried out in 2018 (fans and checks of the existing sound suppressors) • Reduce noise from MOR-fan • Process ladle cleaning MOR fans occasionally emit intense low-frequency noise. This is sound that is not included in the calculations within the new report. The fan occasionally emits intense low-frequency noise (20-25 Hz). Investigations are in progress to locate the cause of the sound and to find improvement options.

50 ERAMET NORWAY SUSTAINABILITY REPORT 2018 51 Eramet Norway Kvinesdal

New initiatives for cleaner air in Kvinesdal

In 2018, a comprehensive upgrading effort was initiated at the Kvinesdal plant whose goal was to improve ambient air quality.

Three upgrading teams composed of lished: One was for furnace activities ing areas created dust emissions to Measuring the effects of managers and plant operators, with a after pouring, one for handling of raw the environment. In parallel with this, the initiatives focus on a material handling, mapped materials and cast slag, and one was possible initiatives for minimizing such Work is also being carried out on improving out how raw materials and liquid and for breaking up and storing of slag. emissions were outlined and the measurement of dust dispersed to the cast materials were to be handled at The teams were composed of both discussed. surrounding environment. It is important the plant. The project has resulted in a management and operational staff. to assess the effect of the measures taken. number of suggestions for measures Over the fall and winter, the groups New initiatives are carried out Dust measurements are planned and car- that are now being carried out and made ongoing assessments of how on an ongoing basis ried out in close co-operation with external prioritized. the activities in the respective process- Initiatives that involve improvements professional communities with recognized to work routines, better communica- competency in the field. During 2019, an Focus on material handling tion, enhanced awareness, and more assessment will be made of whether the Upgrading work was initiated in the specific re-training are carried out on installation of measurement equipment in fall of 2018 with the goal of finding an ongoing basis within the opera- the surrounding areas of the plant is called possible initiatives for reducing the tional organization. Other initiatives for in order to follow up on the execution and spread of diffuse dust emissions from The project has so far that can be carried out within the effectiveness of the improvement initiatives the plant at Kvinesdal. The work was resulted in a number operational budgets are assessed and decided upon. concentrated around how the han- prioritized for execution on an ongo- dling of materials is carried out, both of suggestions for ing basis. The initiatives that require The work by the upgrading teams for raw materials, liquid metal and measures that are major investment are assessed and is planned to continue until the summer slag, and for cast slag. prioritized for execution within the of 2019. Three upgrading teams were estab- now being carried out company. and prioritized.

52 ERAMET NORWAY SUSTAINABILITY REPORT 2018 53 HR – Eramet Norway

"Eramet invests both in us and in the local community"

"One cannot prepare oneself for study competency and professional a job in industry only by sitting credentials as process operators. in a classroom", state Paulina Experience is the key (17) and Ole Sivert (18). These The students who undergo YSK training two Sauda residents are stu- at Sauda all receive a salary correspond- dents in Rogaland's only YSK ing to that paid to apprentices for those (Professional and Study Com- days they take part in the operations. petency) class and are enjoying During the first three years, they work two days per week at the plant. During every single working week. the last year, they work three days per week. This provides the students with In cooperation with Eramet Norway important insight into Eramet's daily Sauda, among others, Sauda work routines and procedures. In other Videregående Skole (Sauda Upper words, they are very well equipped to Secondary School) is offering the YSK build a career at Eramet Norway, wheth- (Professional and Study Competency) er they go directly into a job or select a program. In this program, the students further study program. study profession-mandated subjects

and Special Study Competency training – "To me this seems more difficult than for four intensive years. normal studies. The weeks are varied

and interesting as we are at school three YSK is considered as the pilot project days and on the job, two. In addition, in Rogaland. The two Sauda students, we earn a salary while carrying out our Paulina Draugelyte (17) and Ole Sivert studies. We enjoy every single work Birkeland (18) are enrolled in the first week", relates Ole Sivert. year of the study program. After four

years of study, both will have special Ole Sivert (18) are enrolled in the first year of the study program.

54 ERAMET NORWAY SUSTAINABILITY REPORT 2018 55 The two students are convinced that investment. Both Paulina and Ole – "In this way, they are working HR Head at Eramwet they see major advantages in sharing Sivert clearly have definite plans. Ole actively to engage people who have Norway Sauda, Erik of school attendance and practical Sivert will go further in Engineering suitable practical experience, and Aareskjold feels that work at Sauda. studies up to the Bachelor level, while who in addition, are well-educated. engineers with Paulina will enrol in a college educa- Furthermore, that is extremely at- – "One cannot prepare oneself for tion program, of course, as soon as tractive for us students", says Paulina, certification will a job in industry only by sitting in a military service is completed. who also has plans to move home to always have a funda- classroom. One must acquire expe- Sauda after finishing her studies. mental understnding rience and learn about the various – "Eramet is helping us by setting and practical insight Attractive for Eramet processes, procedures, and routines study goals for us and they do a good that make them through active participation. Theory job following up with us. We are be- Erik Aareskjold, HR Head at Eramet highly attractive for is important, but practical experience coming familiar with all that goes on Norway Sauda, feels that these stu- is totally necessary. One grows as a here and it is only natural to consider dents are making a very intelligent Eramet" person", states Paulina. a job here when our studies are fin- choice in considering their futures in ished. In any event, I have a clear plan the job market. It is natural to come back in that regard", relates Ole Sivert. – "The fact that Eramet commits itself – "For some of these students, this is actively to being a place of learning The two students describe Eramet's only the beginning. Some will, for ex- for such a study program is both commitment as an investment both ample, go on to Engineering Studies Eramet Norway has at NTNU. Others will perhaps go in a smart and future-oriented", state the in themselves and in the local com- 55-60 apprentices at two students. They believe that over munity. completely other direction. Some will all times. time, Eramet will recover a lot for its use their professional credentials as

process operators and begin their careers with us. One has a very good point of departure regardless of what one wishes to do, and this study program achieves that very well", he says.

The fact that Eramet Norway Sauda has commit- ted itself as an apprenticeship and cooperative placement operation for Sauda Upper Secondary School can be can be seen as a smart bet consid- ering the challenging recruitment situation expe- rienced by the smelter industry, not least because special study competency with advanced studies in mathematics, physics, and chemistry opens a direct avenue to further studies in engineering.

– It is no secret that it is crucial to re- cruit an academically trained workforce. Our participation in YSK is a long-term investment for which we will see the results in a few years.

– "We hope to see recently graduated process operators who wish to join our staff, but also, stu- dents who have taken the step further and have received an engineering degree. Engineers with professional credentials will, all things considered, always have a fundamental understanding and Paulina Draugelyte (17) will opt practical insight which make them very attractive for University college education for us", relates Aareskjold. following her military service.

56 ERAMET NORWAY SUSTAINABILITY REPORT 2018 57 Ethics and social responsibility

Eramet Norway exercises social responsibility by:

– Owners receiving an expected return on their invested capital – Employees feeling a sense of security for themselves and for their families – Our suppliers having a demanding customer – Our customers getting their products on time and with the agreed quality – Keeping our environmental impact to a minimum Eramet Norway – Taking the initiative to make changes in response to circumstances exercises social – Producing useful products needed by the world in a way that is environmentally effective responsibility Eramet Norway is also interested in helping to in different ways build robust industrial regions. Initiatives that strengthen social structures in communities where and areas we are located also strengthen our competitive position.

A robust industrial region is characterised by: – Equitable and stable welfare provision The Norwegian processing industry is – A competitive, profitable and adaptable commercial sector very energy-efficient and is based on clean, – Good access to skills renewable hydro-electric power. – Access to a varied jobs market, accommodation and services This makes it a world leader insofar as climate and environment are concerned.

The email address [email protected] can be used by all ERAMET Reporting in employees, and by ERAMET’s customers and partners, if they believe there has been any violation of a principle or value set out the event of in the code of ethics. breach of Any knowledge or suspicion of the following should be reported: – Corruption, fraud or conflict of interest – Anti-competitive actions ethical – Discrimination and harassment in the workplace – Behaviour contrary to the group’s guidelines and standards on health, guidelines hygiene, workplace safety or environmental protection – Serious violation or risk of violation of the human rights of the group’s employees or other persons affected by the group’s operations

58 ERAMET NORWAY SUSTAINABILITY REPORT 2018 59 HES – Eramet Norway

SAUDA

Injury figures H1 and absence due to illness HES figures

Absence due to illness in percentage and H-value CATEGORY 2017 2018 H-value % absence due to illness Absence due to illness 5.3 % 3.6 % 15 Injuries with absence 3 1 10 Injury figures H1 (H-figures) 6.9 2,0 5 Undes. incidents - environmental 139 94

0 year Complaints from neighbours 47 12 10 11 12 13 14 15 16 17 18 Violation of discharge permit 0 0

PORSGRUNN

Injury figures H1 and absence due to illness HES figures

Absence due to illness in percentage and H-value CATEGORY 2017 2018 H-value % absence due to illness Absence due to illness 5.5 % 6.0 % 15 Injuries with absence 1 2 10 Injury figures H1 (H-figures) 3,3 6,9 5 Undes. incidents - environmental 121 54

0 year Complaints from neighbours 24 47 10 11 12 13 14 15 16 17 18 Violation of discharge permit 0 1

KVINESDAL

Injury figures H1 and absence due to illness HES figures

CATEGORY 2017 2018 Absence due to illness in percentage and H-value H-value % absence due to illness Absence due to illness 6.2 % 4.6 % 20 Injuries with absence 0 1 15 Injury figures H1 (H-figures) 0 2,6 The company´s greatest asset is its trained 10

5 Undes. incidents - environmental 48 28 and motivated workforce.

0 year Complaints from neighbours 1 2 10 11 12 13 14 15 16 17 18 Violation of discharge permit 1 1

* External workers

60 ERAMET NORWAY SUSTAINABILITY REPORT 2018 61 HES – Eramet Norway

Collaborating for knowledge Managers are to set specific targets for improve- ment and seek the cooperation of employees in Through our membership of for- SUCCESS FOUNDED ums such as Grenland Industrial ERAMET achieving those targets. All managers and employees have a shared responsibility to Cluster, the Eyde network and create a safe workplace, to protect the environ- ON TRUST EnergiRike, we are committed NORWAY ment, and to protect the company’s resources to sharing knowledge among and equipment. All employees are personally regulatory authorities, politici- responsible for protecting themselves and for ans, centres of expertise and our HES-POLICY safely performing their duties according to own industry on major issues of established instructions and guidelines. mutual concern.

Objective Improvement Society At Eramet Norway, we seek to conduct our busi- Health, the environment and safety are integral Collaborating ness in such a way as to minimize potential harm parts of Eramet Norway’s management system. with Bellona to health, the environment and safety throughout A continuous improvement program is to be put the value chain. Metals, materials and other prod- in place, based on careful evaluation Eramet Norway and the Bellona ucts are to be manufactured using resource- of the potential for undesirable incidents and environmental foundation have efficient processes with due regard for health, suggested improvements. Reporting of instituted a formalised collabora- the environment and safety. As an environmen- undesirable incidents is to be a priority, as the tion, the aim of which is to make tally conscientious company, we are committed starting point for implementing corrective and use of each other’s core skills Shareholders Neighbours to maintaining a safe working environment that preventive measures. in order to improve society’s protects our employees, facilities and assets. environmental results. The twin goals of preventing environmental dam- Prevention age and continuously improving our performance Health, environmental and safety procedures and on health, the environment and safety underpin practices, and any changes to these, are to be all our activities. based on a thorough risk assessment. Collaborating Operational plans and capital projects will like- Prioritization wise be subject to an assessment of the health, with the industry Employees Suppliers Health-, environment- and safety-related environmental and safety risks. Potential hazards activities are to be integrated into all aspects of are to be identified and assessed. Undesirable Through the Norwegian Ferroal- our operations. Our chief concern is to protect our incidents such as near mishaps, accidents, inju- loy Producers Research Asso- employees and other stakeholders from work- ries to health and environmental damage are to Customers ciation (FFF), Eramet Norway place injuries and adverse health effects. be recorded and investigated to determine the has played a role in a number of We are committed to complying with all root cause and prevent recurrence. important collaboration projects applicable statutory and regulatory requirements, between the industry, Sintef and and with all codes of practice endorsed by the Follow-up the Norwegian University of Sci- company. ence and Technology (NTNU). To ensure compliance with statutory and regula- Environmental and safety aspects will be a key tory requirements, and respect for Eramet’s own consideration when we make decisions on capital environmental goals, policies and guidelines, a expenditure, operating methods and system must be in place for ongoing reporting, changes. record keeping and review. Eramet Norway is to publish an annual health, environment and safety Responsibility report. Supporting the local Customers making Managers at all levels have overall responsibility community ever-greater demands for health, the environment and safety in their respective areas. They are responsible As an environmentally conscientious Eramet Norway supports clubs, organizations, Sustainable products and processes are also increasingly for planning, organizing and training, for imple- company, we are committed to cultural activities and individual events at each being discussed in the context of our customer relations. As a menting health, environmental and safety maintaining a safe working environ- of its production locations. It is important that leading supplier of manganese alloys, we work actively in order procedures, and for ensuring that practices ment that protects our employees, the local community around our company to satisfy our customers' requirements, as set out in their comply with statutory and regulatory require- facilities and assets. continues to provide opportunities for cultural overall policies, specifications of requirements and guidelines. ments. and leisure activities. Regular audits are also conducted together with our main customers.

62 ERAMET NORWAY SUSTAINABILITY REPORT 2018 63 Sustainability

Eramet Norway resource balance sheet 2018

Processes

Energy balance Raw materials receiving Raw materials Core products Raw materials containing Manganese alloys manganese 955 312 tonnes for customers 530 501 tonnes Reducing agents containing status 2018 Raw materials processing By-products carbon 237 935 tonnes Mn slag, resmelted material, Electrode paste containing dust for internal use 419 207 tonnes carbon 11 464 tonnes Eramet Norway's three manganese processing plants Mn dust for external sale 22 278 tonnes Raw materials containing Smelting Mn waste slag for focus on systematic energy conservation to bolster the silicon oxides 112 023 tonnes external sale/use 296 501 tonnes sustainability of our operations. Products containing silicon 48 991 tonnes Products containing iron 16 896 tonnes Landfill waste Metal refining Sludge, metals, wood, Products containing calcium 56 959 tonnes paper 30 742 tonnes The manganese alloy industry is Energy use Porsgrunn, a system for recycling Recycled raw materials Recycled energy very energy-intensive, but Eramet With a sellable production in the hot water from slag beds was com- containing manganese 448 495 tonnes Finished goods processing Electrical and chemical Norway's three plants at Kvines- order of 602,000 tonnes of manga- missioned in 2016. energy 648 083 tonnes dal, Porsgrunn and Sauda all hold nese alloys in 2017, we estimate that Energy Electrical energy (smelting Further increasing energy ISO 50001 certification as proof of 1.98 TWh of energy is used in the and auxiliary power) 2 034 919 MWh Emissions to air their healthy energy balance sheet. production of these products – or recovery is a challenge Treatment of emissions Chemical elements 165 tonnes Fossil gas energy 599 tonnes CO 684 565 tonnes Energy consumption can be divided roughly 45 per cent of the total en- As a residual item, we also ended to water and air 2 Fossil oil energy 549 tonnes into three main groups (see illustra- ergy used in the processes for stand- up with 1.8 TWh on the tap side. The Emissions to water tion), with "electrons" and "hydro- ard and refined FeMn and SiMn. energy teams at each of the pro- Chemical elements 2 040 tonnes Other inputs Direct production cessing plants are all involved in this carbons" each representing 44 and The major challenge is how much Cooling water consumed support 42 per cent respectively of the total energy we succeed in recovering work, ranking their plans for im- (purchased and river water 10 876 586 Nm3 4.4 TWh for 2018. The remainder is provement measures according to as fuel and in heat flows, such as Compressed air 32 090 846 Nm3 accounted for by the energy used in air and water. For 2018, this was investment needs, implementation Indirect production Process gases 36 413 tonnes the consumption of metallic mate- roughly 0.6 TWh, which is about 13 time and potential gain. Location support rials (silicon and manganese) in the per cent of the added energy. The factors have some significance for furnace and refining processes. energy recovery plant at Kvinesdal the potential use and attractiveness produced about 76 GWh net, which of recycled energy. Use is made of Energy consumption is something less than the total public support schemes arranged The consumption of 2.03 TWh of capacity due to an implemented via Enova. Internally, each of the electrical energy represents 0.63 scheduled shut-down. Supplies of three processing plants receives ERAMET NORWAY ENERGY BALANCE 2018 TWh, 0.69 TWh and 0.71 TWh at furnace gas to Yara's ammonia plant a dedicated annual sum that is Porsgrunn, Sauda and Kvinesdal in Porsgrunn usually also produce a earmarked for energy conservation respectively. Coke and anthracite are significant effect. The hot water sup- measures. Embodied energy 44 % 45 % primarily used as reductants in the plies to the fish farm in Kvinesdal, Electrical energy: 2 035 GWh in products: 1 984 GWh smelting furnaces, but the energy the compressor heat recovery plant Company content of 1.96 TWh is included in in Porsgrunn and the internal use activities and process:: Recovered energy: 648 GWh the balance sheet. of furnace gas for refractory activi- Carbon materials: 1 957 GWh 42 % 14 % ties and building heating in Sauda 4 438 GWh are all activities that make a solid 41 % Energy losses: 1 806 GWh contribution to energy recycling. In Metallic sources: 446 GWh 14 %

64 ERAMET NORWAY SUSTAINABILITY REPORT 2018 65 ERAMET NORWAY SAUDA

DUST, SO2, CO2 emissions to the air 2012-2018 Hg/Pb/Total (As, Cd, Cu, Cr) emissions to the air 2012-2018

50 – – 350 000 50 – 45 – – 300 000 45 – 40 – 40 – – 250 000 35 – 35 – 30 – – 200 000 30 – 25 – 25 – – 150 000 20 – 20 – tonnes/year 2 15 – – 100 000 15 – 10 – 10 – – 50 000 5 – 5 – tonnes/year 2 Kg/year Dust and SO 0 – 0 – – 0 CO 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018

Dust emissions SO2 emissions CO2 emissions Hg emissions Pb emissions Total (As, Cd, Cu, Cr) Emission limits: Emission limits:

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

ZINC/MANGANESE COPPER/TOTAL (As, Cd, Cr, Pb) emissions to Saudafjorden 2012-2018* utslipp til Saudafjorden 2012-2018*

350 – 180 – – 40

300 – 160 – – 35 140 – 250 – – 30 120 – – 25 200 – 100 – – 20 150 – 80 – – 15 60 – 100 – Since 2001 we have invested almost half 40 – – 10 50 – a billion kroner in developing and installing 20 – – 5 Total (As, Cd, Cr, Pb) – kg/year Kg/year 0 – Copper – kg/year 0 – – 0 new, environment-friendly technology. 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018 Dissolved zinc emissions Manganese emissions Copper emissions Total emissions (As, Cd, Cr, Pb) Emission limits: Dissolved zinc = 400 kg/year Manganese = 400 kg/year Emission limits: Copper = 150 kg/year Total (As, Cd, Cr, Pb) = 20 kg/year

PARTICLES emissions to Saudafjorden 2012-2018* PAH emissions to Saudafjorden 2012-2018*

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

Kg/year 0 – Kg/year 0 – 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018

Particle emissions Emission limits PAH emissions Emission limits

*Emissions from purifying plants. Waste CATEGORY 2018 2017 CATEGORY 2018 2017

Slag 0 tonnes 0 tonnes Paper and cardboard 7.3 tonnes 8.86 tonnes Sludge and dust (landfill) 3 633 tonnes 3 338 tonnes Wood waste 175 tonnes 193 tonnes Residual waste 153 tonnes 116 tonnes Plastic 4.6 tonnes 3.1 tonnes Metal waste 159 tonnes 301 tonnes Asphalt 0 tonnes 0 tonnes Special waste 58.1 tonnes 72.9 tonnes

66 ERAMET NORWAY SUSTAINABILITY REPORT 2018 67 ERAMET NORWAY PORSGRUNN ERAMET NORWAY KVINESDAL

DUST, SO2, CO2 emissions to the air 2012-2018 Hg/Pb/Total (As, Cd, Cu, Cr) emissions to the air 2012-2018 DUST, SO2, CO2 emissions to the air 2012-2018 Hg/Pb/Total (As, Cd, Cu, Cr) emissions to the air 2012-2018 17,9 16,4 70 – – 200 000 40 – – 100 15 – – 300 000 120 – – 15 14 – 110 – – 14 – 180 000 35 – – 90 13 – 60 – – 250 000 100 – – 13 – 160 000 – 80 12 – – 12 30 – 90 – 50 – 11 – – 11 – 140 000 – 70 10 – – 200 000 80 – – 10 25 – 40 – – 120 000 – 60 9 – 70 – – 9 8 – 20 – – 150 000 60 – – 8 – 100 000 – 50 7 – – 7 30 – 50 – – 80 000 15 – – 40 6 – – 6 5 – – 100 000 40 – tonnes/year – 5 tonnes/year 2 2 20 – – 60 000 – 30 10 – 4 – 30 – – 4 3 – – 40 000 – 20 – 50 000 20 – – 3 10 – 2 – – 2 – 20 000 5 – – 10 tonees/year

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

Pb and Total (As, Cd, Cu, Cr) tonnes/year 0 – Dust and SO 0 – – 0 – 0 CO Hg, Pb – kg pr. år Dust and SO 0 – – 0 0 – CO – 0 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018 Dust emissions SO emissions CO emissions Hg emissions Pb emissions Total (As, Cd, Cu, Cr) Dust emissions SO2 emissions CO2 emissions Hg emissions Pb emissions Total (As, Cd, Cu, Cr) 2 2 Emission limits: Emission limits: Emission limits: Emission limits: No emission limits Hg = 15 kg/year Pb = 150 kg/year Total (As, Cd, Cu, Cr) = No emission limits Dust = 35 tonnes/year SO2 = 50 tonnes/year Hg = 15 kg/year Pb = 150 kg/year Total (As, Cd, Cu, Cr) = 50 kg/year

ZINK/MANGANESE COPPER/TOTAL (As, Cd, Cr, Pb) ZINK/MANGANESE COPPER/TOTAL (As, Cd, Cr, Pb) emissions to Frierfjorden 2012-2018* emissions to Frierfjorden 2012-2018* emissions to Fedafjorden 2012-2018* emissions to Fedafjorden 2012-2018*

24 – 90 – – 10 15 – – 120 60 – – 50

22 – 14 – 270,1 – 110 80 – 13 – 50 – – 40 20 – – 100 70 – – 8 12 – 40 – – 35 18 – 11 – – 90 35 – 16 – 60 – 10 – – 80 – 30 14 – – 6 9 – – 70 30 – 50 – 8 – – 25 12 – – 60 25 – 40 – 7 – – 20 10 – – 4 6 – – 50 20 – 8 – 30 – 5 – – 40 15 – – 15 6 – *) 4 – – 30 *) 20 – 3 – 10 – – 10 4 – – 2 – 20 10 – 2 – 5 – – 5 2 – 1 – – 10 Copper – kg/year Manganese – kg/year Kg/year Copper – kg/year Total (As, Cd, Cr, Pb) – kg/year 0 – 0 – – 0 Zinc – kg/year 0 – – 0 0 – – 0 Total (As, Cd, Cr, Pb) – kg/year 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018

Dissolved zinc emissions Manganese emissions Copper emissions Total emissions (As, Cd, Cr, Pb) Dissolved zinc emissions Manganese emissions Copper emissions Total emissions (As, Cd, Cr, Pb) Emission limits: Dissolved zinc = 50 kg/year Manganese = 50 kg/year Emission limits: Copper = 100 kg/year Total (As, Cd, Cr, Pb) = 10 kg/year Emission limits: Dissolved zinc = 240 kg/year Manganese = 420 kg/year Emission limits: No emission limits *) Zinc total emissions is reported from 2017.

PARTICLES emissions to Frierfjorden 2012-2018* PAH emissions to Frierfjorden 2012-2018* PARTICLES emissions to Fedafjorden 2012-2018* PAH emissions to Fedafjorden 2012-2018*

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

450 – 2100 2100 2100 4,5 – 900 – 2100 2100 2100 2 573 400 – 4,0 – 800 – 2,5 – 350 – 3,5 – 700 – 2,0 – 300 – 3,0 – 600 – 250 – 2,5 – 500 – 1,5 – 200 – 2,0 – 400 – 150 – 1,5 – 300 – 1,0 – 100 – 1,0 – 200 – 0,5 – 50 – 0,5 – 100 – Kg/year Kg/year 0 – 0 – Kg/year 0 – Kg/year 0 – 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018

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

*Emissions from purifying plants. *Emissions from purifying plants. Waste Waste CATEGORY 2018 2017 CATEGORY 2018 2017 CATEGORY 2018 2017 CATEGORY 2018 2017 Slag 98 811 tonnes 87 687 tonnes Special waste 9.3 tonnes 65.4 tonnes Slag 216 651 tonn 221 816 tonn Special waste 223 775 kg 83 947 kg Sludge and dust (landfill) 5 858 tonnes 6 029 tonnes Paper and cardboard 3.4 tonnes 3.8 tonnes Sludge and dust (landfill) 19 325 tonn 26 446 tonn Paper and cardboard 5 930 kg 2 061 kg Residual waste 168 tonnes 148 tonnes Wood waste 156 tonnes 142 tonnes Residual waste 95,2 tonn 92,2 tonn Wood waste 75 520 kg 35 300 kg Metal waste 171 tonnes 120 tonnes Mixed rubber waste 16.9 tonnes 20.2 tonnes Metal waste 1,1 tonn 92,7 tonn Plastic 13 311 kg 4 752 kg

68 ERAMET NORWAY SUSTAINABILITY REPORT 2018 69 Finance

Profit & loss statement for 2017 and 2018 Figures for the Sauda, Porsgrunn and Kvinesdal plants in M NOK.

VALUES Last year 2018 Previous year 2017 Change % GROSS INCOME 6 803 7 156 -353 -5 % CREATED BY Cost of used materials and inventory change- -4 243 73 % -3 463 69 % -780 -23 % WATER Wages-, salaries and social cost -459 8 % -440 9 % -19 -4 % Depreciation of assets -243 4 % -220 4 % -23 -11 % Electric energy and other operating cost -892 -5 837 15 % -908 -5 030 18 % 16 2 % OPERATING RESULTS 965 2 125 -1 160 -55 % Interest-/financial cost -102 -168 66 40 % Corporate taxes -196 -467 271 58 % Environmental income 2018 NET RESULT 668 1 490 -822 -55 %

Environmental income from sale of CO gas to Yara’s ammonia factory at Herøya in Porsgrunn, and sales of manganese dust and sale of electrical energy at Kvinesdal. 15% Electric energy and other operating cost Sales of CO-gass to Yara Sales of Sales of recovered energy 73% in Porsgrunn manganese dust in Kvinesdal DISTRIBUTION Cost of used materials 4% OF OPERATIONAL and inventory change Depreciation of assets COSTS 2018 37.6 134.5 43.2 8% M NOK M NOK M NOK Wages-, salaries Turnover and and social cost operating result Investments 2007–2018 Yearly investments in M NOK for Porsgrunn and Sauda during the period 2007-2018, and Kvinesdal for the period 2010-2018. History of the 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Sauda, Porsgrunn and Kvinesdal plants. Operational -1 074 1 390 419 311 166 273 560 722 2 125 965 2 plants (PORSGRUNN, SAUDA) 3 plants (PORSGRUNN, SAUDA, KVINESDAL) Figures are in Turonver 3 306 5 260 4 850 4 336 4 117 4 224 4 861 4 460 7 156 6 803 M NOK. Year: 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 SUM* Oper. margin -32.5 % 26.4 % 8.6 % 7.2 % 4.0 % 6.5 % 11.5 % 16.2 % 29.7 % 14.2 %

Environment and Safety 27 25 11 18 43 113 37 55 45 67 24 69 762 29 % investments 7950 Other investments 86 192 40 166 81 144 103 86 92 187 94 199 1884 71 % 7450 7 156 6 803 Total investments 113 217 51 184 123 257 140 141 137 254 115 267 2646 100 % Operating results 2018: 6950 6450 *) The total figure includes from year 2000. 5950 5 260 5450 Increased transformer 4 850 4 861 6 803 4950 capacity, Porsgrunn 4 460 M NOK 4 336 4 117 4 225 furnaces Fce 12 Sauda, M NOK 4450 300 Rehabilitation Sauda Rehabilitation Sauda Sauda MOR-filter upgrade 3950 furnace 12 furnace 11 3450 250 Turnover 2018: 2950 Rehabilitation 3 306 Rehabilitation Porsgrunn furnace 10 Sauda Furnace 12 relining 2450 200 2 125 Porsgrunn furnace 11 1950 Kvinesdal landfill 1450 1 390 150 965 965 722 950 561 419 311 100 M NOK 450 167 273 0 50 -450 -950 0 -1450 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 -1 074 -1950 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Environment and Safety investments Other investments Figures in M NOK Operating results Turnover

70 ERAMET NORWAY SUSTAINABILITY REPORT 2018 71 SAUDA PORSGRUNN KVINESDAL PO. Box 243, NO–4201 Sauda. PO. Box 82, NO–3901 Porsgrunn. Øyesletta 61, NO–4484 Øyestranda. Tel.: 52 78 50 00, fax: 52 78 50 02 Tel.: 35 56 18 00, fax: 35 55 36 10 Tel.: 38 35 72 00, fax: 38 35 11 28

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

The Manganese Source ®

NORSK AKKREDITERING QUAL 002/EMS 001 Nordic Swan Ecolabel Tenkkom.no 2041 0702 Photo: Dag Jensen, Benjamin Nordhagen, Max Emanuelson, ISO 9001/ISO 14001/ISO 50001 ERAMET Research, DSFOTO SERTIFISERT BEDRIFT