EVRAZ Canadian Steel: Low Carbon Footprint

November 2016 Electric Arc Furnaces (EAFs) with metal scrap: cleaner, more efficient

• EVRAZ Regina utilizes two Electricity Steelmaking EAFs to make up to 1.1 Generation million tons of steel per Energy used CO2 emissions CO2 emissions year kg / ton of steel kWh / ton of steel grams / kWh

-79% • Over 91% of steelmaking -64% -81% 2,081 in China is from Blast 4,624 764 Oxygen Furnaces (BOFs), which use iron ore, coking coal, and other inputs

• For every one ton of steel scrap made into new steel, over 1,400kg of iron ore, 1,647 740kg of coal, and 120kg 441 147 of limestone are saved Overseas input shipping to China

Blast EAF Blast EAF China Canada Furance Furnace Sources: BOF percentage: Worldsteel. Shipping emissions: National Technical University of Athens. Steelmaking: Midrex – Blast Furnace assuming 11% Scrap, EAF Use of 100% scrap. Scrap statistics: Worldsteel. Electricity Generation: IEA 2011 2 EVRAZ cleaner EAFs, Canada’s power generation outpace others Emissions from Steelmaking emissions and energy use energy generation Energy used CO2 emissions CO2 emissions kg / ton of steel kWh / ton of steel grams / kWh -79% -64% 2,081 4,624

-81% 764 1,526 3,419

2,327 476 470 929 1,647

441 147

China Germany Turkey EVRAZ Blast GermanyTurkey EAF China Turkey Germany Canada - BOF Canada Furnace - EAF - China

Overseas shipping of inputs

Sources: BOF percentage: Worldsteel. Shipping emissions: National Technical University of Athens, from China to BC, Europe to Houston. Steelmaking: Midrex – Blast Furnace assuming 11% Scrap, EAF Use of 100% scrap. Scrap statistics: Worldsteel. Electricity Generation: IEA 2013 3 EAFs have disproportionately less energy use, emissions than BFs

Production Share Energy Consumption Share CO2 emissions share

Scrap / EAF Scrap / EAF Other EAF Scrap / EAF 11% 8% Other EAF 5% 24% 6%

5% Other EAF

71% BF/BOF 82% 88% BF/BOF BF/BOF

Sources: IEA, WorldSteel, BP, World Coal Association, Midrex, Laplace conseil

4 NAFTA ahead of China (9%) and Japan (23%) in EAF share

Source: Worldsteel

5 China and Japan lag US, Canadian cleaner EAF production

EAF share in crude steel production, by country (%)

70%

60% US EVRAZ: 100%

50% Canada EVRAZ: 100% 40%

30% Japan 20%

10% China

0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: Worldsteel

6 Canadian Electricity generation: 69% fewer emissions than World average

Electricity Generation

764 CO2 emissions grams / kWh

633 591 -69% 552 545 536 503 497 476 470 459 402

167

China Non- Czech OECD Korea World US Japan Turkey Germany OECD Italy Canada OECD Republic Asia Total Americas Average Average Average Average Sources: Electricity Generation: IEA 2011 7