Sustainable Phosphorus Management
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Ing. Bernhard Geißler, BSc BSc MSc Sustainable Phosphorus Mining Actors, Sustainability Standards and Performance Evaluation of a Business Case Master’s Thesis to be awarded the degree of Master of Science in Environmental Systems Sciences: Sustainability Management at the University of Graz, Austria Supervisor: Gerald Steiner, Assoc. Univ. Prof. Mag. Dr. Institute for Systems Science, Innovation & Sustainability Research (ISIS) Graz, September 2014 Authors’ Declaration Unless otherwise indicated in the text or in the references, or acknowledged above, this thesis is entirely the product of my own scholarly work. Any inaccuracies of facts or faults in reasoning are my own and accordingly I take full responsibility for them. This thesis has not been submitted either in whole or in part, for a degree at this or any other university or institution. This is to certify that the printed version is equivalent to the submitted electronic one. Graz, September 2014 i List of Contents Introduction ......................................................................................... 1 Essentials on Phosphorus, Fertilizer and Food Security ........................ 5 Phosphorus ................................................................................... 5 Chemical Attributes ............................................................... 7 Global Phosphorus Cycle ....................................................... 8 Reserves, Resources, Market and Peak Phosphorus .............. 10 Extraction, Mining and Processing ....................................... 14 Fields of Application ........................................................... 15 Alternatives and Recycling ......................................................... 16 Fertilizers based on Phosphorus ........................................... 17 Alternatives to phosphate-based Fertilizers .......................... 19 Global Food Security .................................................................. 20 Status Quo ........................................................................... 20 Outlook ............................................................................... 21 Sustainability Aspects and Performance in Mining............................. 23 Sustainability and Mining ........................................................... 24 Controversy: Sustainability / Extraction ............................... 24 Need for Sustainable Mining................................................ 25 Considerable Dimensions .................................................... 26 Potential Role Model: Gold Mining ..................................... 28 History of Developments ............................................................ 30 Sustainability Frameworks and Mining ................................ 30 Sustainability Reporting ....................................................... 32 Existing Standards, Frameworks, Initiatives and Indicator Sets ... 32 Applied Criteria ................................................................... 38 Scientific Limitations ........................................................... 39 Results ................................................................................. 39 Selected Standards, Frameworks, Initiatives and Indicator Sets ... 44 ii Global Reporting Initiative .................................................. 44 International Council on Mining and Metals ........................ 48 United Nations Global Compact .......................................... 50 Corporate Performance Measurement ......................................... 52 Morgan Stanley Capital International (MSCI) ...................... 55 Bloomberg – ESG Performance Measurement ..................... 57 Further Institutions .............................................................. 58 Global Phosphorus Market ................................................................. 59 Phosphate and Chemical Fertilizer Markets................................. 59 Phosphate Rock Market ....................................................... 59 Phosphate-based chemical Fertilizer Market ........................ 63 Main Actors in the Phosphorus Business ..................................... 68 OCP S.A. ............................................................................. 70 The Mosaic Company .......................................................... 71 Yuntianhua Group Co. Ltd ................................................... 72 Vale S.A. ............................................................................. 72 PhosAgro ............................................................................. 73 PotashCorp .......................................................................... 73 Jordan Phosphate Mines Company....................................... 74 Wengfu Group Co. Ltd ........................................................ 74 Guizhou Kalin Group Co., Ltd. ............................................ 75 Ma’aden .............................................................................. 75 Sustainability Standards and Indicator Sets in Practice ................ 76 Business Case: PotashCorp ................................................................ 78 Corporate Performance ............................................................... 79 Economic Performance ........................................................ 79 Environmental Performance ................................................. 79 Social Performance .............................................................. 80 Methodology .............................................................................. 81 Correlation Analysis ............................................................ 81 Kolmogorov-Smirnov Goodness of Fit Test ......................... 82 iii Student’s t-Test .................................................................... 83 Data and Results ......................................................................... 84 Input .................................................................................... 85 K-S Goodness of Fit Test ..................................................... 86 Correlation Matrix ............................................................... 86 Discussion of Results .................................................................. 88 Correlations between Economic and Environmental respectively Social Indicators ............................................................. 88 Further Correlations (Significance 0.01) .............................. 89 Further Correlations (Significance 0.05) .............................. 90 Conclusion ......................................................................................... 92 iv List of Tables Table 2-1: Estimated Reserves for World's Top Ten .................................. 11 Table 3-1: Standards Map Search Combined Search Results ..................... 37 Table 3-2: Evaluation Results ................................................................... 43 Table 3-3: MMSS GRI 3.0 ........................................................................ 47 Table 3-4: The 10 Principles of the ICMM ................................................ 49 Table 3-4: 10 Principles of the UNGC ...................................................... 51 Table 4-1: Produced PR by Country .......................................................... 61 Table 4-2: Production, Trade and Consumption of PR by Region .............. 62 Table 4-3: Nutrients as % of the Product ................................................... 64 Table 4-4: Production, Exports, Imports and Consumption by Region ....... 66 Table 4-5: Applied Standards and Frameworks ......................................... 76 Table 5-1: Table of Input Data .................................................................. 86 Table 5-2: Results of K-S Test .................................................................. 86 Table 5-3: Correlations Matrix .................................................................. 87 v List of Figures Figure 2-1: The Phosphorus Cycle .............................................................. 9 Figure 2-2: World PR Reserves (IFDC) .................................................... 10 Figure 2-3: Commodity Price in US Dollar per ton of PR .......................... 13 Figure 2-4: Flowsheet of Wet Manufacturing Process P Acid .................... 18 Figure 3-1: G4 Categories and Aspects within the Guidelines ................... 45 Figure 4-1: Map of PR Producing Countries.............................................. 60 Figure 4-2: Production, Exports, Imports and Consumption by Region ..... 62 Figure 4-3: World Bank Real Commodity ................................................. 65 Figure 4-4: Production, Trade and Consumption by Region and Type ....... 67 Figure 4-5: Volume of Produced PR by Corporation ................................. 70 vi List of Abbreviations ARM Alliance of Responsible Mining ASM Artisanal and Small-scale Miners CEO Chief Executive Officer CERES Coalition for Environmentally Responsible Economics DAP Diammonium Phosphate FAO Food and Agriculture Organization FLO Fairtrade Labelling Organization GHG Greenhouse Gas GJ Gigajoule Global TraPs Global Transdisciplinary Processes for Sustainable Phosphorus Management GMI Global Mining Initiative GPRI Global Phosphorus Research Initiative GRI Global Reporting Initiative ICMM International Council of Mining and Metals IFDC International Fertilizer Development Center IFIA International