Case Book. A proven track record in sustainable solutions

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1 Case Book A proven track record in sustainable solutions

2 Introduction Demonstrating our track record in sustainable solutions Sustainable use of Earth s natural resources is a mission we believe both our customers and employees can fully embrace and work toward achieving. As evidence of this, the publication you are holding highlights a selection of cases in which Outotec technologies made a vital contribution to the project in question s sustainability, whether in terms of energy efficiency, process control, recovery and recycling, or even human resources. At present, our customers are confronted with the dilemma that exists between the growing need for metals and the environmental impact of producing them. We believe that this dilemma can be addressed. In fact, its solution is a vital part of our strategy we see it as our role in the industrial ecosystem. Of the megatrends facing the mining and metals sector, we consider sustainability the most important, and the cases outlined in these pages demonstrate our long-term commitment to this issue, which, after all, will affect each and every one of us in the very near future. The cases outlined in these pages demonstrate our longterm commitment to sustainability, which, after all, will affect each and every one of us in the very near future. Contents Reading the Case Book Each of the cases that follow addresses one or more of the following trends, which serve as drivers for the industry. The symbols alongside can be used as a key to identify the most relevant sustainability topics in each project. Declining ore grades Ore grades are declining and the demand for metals is increasing. In order to meet the demand, more ore needs to be processed with more advanced technology. Energy use Making metals requires a lot of energy and energy costs are constantly climbing. More energy-efficient processes are needed. Water availability and pollution Water availability and pollution are critical issues. Advanced solutions for water cleaning, conservation and recycling are needed. Sustainability the most important megatrend driving Outotec s customer industries New copper smelter for Konkola Copper Mines in Zambia Advances in cyclone technology raise energy efficiency at Alunorte Pelletizing plant core for Samarco Mineração Enefit brings distinct environmental benefits to oil shale technologies Outotec s map to sustainability Metals, water, energy, and sustainability Samancor Chrome pelletizing plant in Middelburg, South Africa Automated monitoring redefines operation workflow at Boliden s Pori refinery Peak Oil Peak oil is approaching. Oil is expected to run out by 2050 with current production rates, thus alternative energy sources are needed. CO 2 and other toxic emissions Mining and metallugical industries are major emitters of CO 2 and eco-toxic substances. Cleaner solutions must be developed. Bringing fresh perspectives to zinc roasting at Cajamarquilla Safety first at Ma aden s sulfuric acid plant Nordenham lead recycling plant points to a sustainable future Recycling The need for recycling is growing, thus requiring new technologies for turning scrap and waste into products. Dewatering constraints solved by refurbished pressure filter at Cosmos Nickel 28

3 2 3 Sustainability the most important megatrend driving Outotec s customer industries At Outotec, we believe that the increasing awareness consumption, criticism of nuclear energy programs, pollution, and lack of clean water are growing issues that need of sustainability is the most important megatrend driving industries today. This trend can be seen not only in to be addressed. At the same time, employee health and developed economies but also in emerging and developing safety requirements are increasing. All of the aforementioned developments stimulate increased investment into markets. Much of global development can be attributed to sustainable solutions; a trend that we believe will continue metals and minerals. However, society is confronted by to strengthen over time. a dilemma: the need for metals is growing, while at the The companies producing minerals, metals and materials face many challenges. We have identified six industry same time there is great concern over the environmental impacts of producing them. As a technology company, we trends that act as drivers for sustainable development. at Outotec believe that this dilemma can be resolved. These contribute to an increased demand for new technology, presenting great opportunities for Outotec s technolo- Decision makers have realized that the current exploitation of nature cannot continue. Increasing energy gies and solutions. Ore grades are declining Ore grades are declining, while at the same time, the demand for metals is growing. A larger quantity of ore needs to be processed with more advanced technology in order to meet this demand. In addition, ores are more complex and more difficult to process than previously. The average copper ore contains currently 0.8% of copper, a 20% decline from ten years ago. This is forecast to fall further to 0.65% by Thirty more tonnes of ore need to be milled for one tonne of copper. This larger amount of material processed by beneficiation increases the amount of tailings, energy and water consumption as well as requiring more land. All of the above mean that advanced technologies are required and extensive knowledge is necessary to be able to address more requirements. Outotec is extremely well positioned to address these issues. Outotec possesses a deep knowledge of mineralogy and process technologies. In addition, our comprehensive R&D and testing facilities allow us to develop new process solutions. Outotec s advanced technologies enable higher yield and optimized metal recovery in the entire value chain. They enable efficient ore processing, thanks to advanced process control in grinding and flotation. They are also energy-efficient and minimize water consumption. Metal production is energy intensive Energy is becoming a more pertinent issue, not only due to cost and rapidly depleting energy sources but also because of the emissions arising from energy production. The mineral and metal processing industries consume a large amount of energy and are major emitters of CO 2 and other eco-toxic substances. Greenhouse gas emissions in these industries are mainly related to energy use. As of 2008, roughly 7% of the world s energy was used by the metals sector. Within the metallurgical industry, the iron and steel sectors are the major emitters of CO 2. Grinding mills alone consume 10% of Australia s total energy consumption. Globally, energy consumption is expected to increase due to falling ore grades. It is clear that more energy-efficient processes are needed. Thanks to their energy efficiency and low CO 2 emissions, several of Outotec s technologies have been rated by the European Union as Best Available Techniques (BAT). The sealed processes Outotec designs utilize the energy contained in raw materials. Thanks to three Outotec technologies, CO 2 emissions worldwide are reduced by over four million tonnes annually. There is huge potential for further improvement in this area: for example, the adoption of best available technologies worldwide could save million tonnes of CO 2 in iron and steel, aluminium and non-ferrous metals production.

4 4 5 Water availability and pollution are both critical issues The availability of water is becoming an important issue for Outotec s customer industries. This is because, as metal content in ore declines by up to 20%, the water consumption required to produce a quantity of metal increases by the same factor. Typically, processing a single tonne of ore requires some 3,500 liters of water. A tonne of nickel requires 377,00 liters in the hydrometallurgical process, and a tonne of gold requires 252 million liters of water. In addition, the mining and metal extraction processes impact nature in terms of discharges of contaminated water, making efficient water usage even more critical. These are important issues in many areas of the world and the need to conserve and recycle water and find advanced solutions for water treatment is widely recognized. Outotec s technologies are engineered to significantly reduce fresh water consumption, recycle process water, and decrease water loss. Advanced filters separate water from concentrates through energy-efficient means. Paste thickening efficiently separates water from tailings and reduces water consumption by approximately 10%. Paste can then be used directly as a back fill in the mine. Outotec is developing new applications for industrial effluent treatment and is cooperating with Kemira in developing solutions for water-intensive industrial applications as well as oil sands processing. Peak oil is approaching Global energy demand is expected to increase by 44% in the next two decades, according to the Energy Information Administration (EIA, 2009). At current production rates, conventional oil reserves are estimated to run out by These forecasts point to an urgent need for alternative energy sources and new solutions. The world s proven oil shale reserves amount to three trillion barrels, far more than conventional oil reserves. However, current methods for oil shale and oil sands processing are inefficient in oil recovery, energy and water consumption and have a substantial impact on the environment. Outotec technologies enable the sustainable use of oil shale, oil sands, and bio fuels as new alternative energy sources. In cooperation with Eesti Energia we have developed Enefit technology for oil shale. Furthermore, we have efficient flotation technology that separates oil from sand. Together with Kemira and Canadian partners, Outotec has also established an industrial research chair for water quality management for oil sands extraction at the University of Alberta, Canada. In addition, we have a joint company, GreenExergy, with Skellefteå Kraft AB for biofuel treatment utilizing waste heat. Mining and metallurgical industries are major emitters of CO 2 and eco-toxic substances Sulfur is a constituent in many ores, therefore during the smelting and refining process, sulfur dioxide (SO 2 ) is released into the atmosphere. The metals industry emits more than 13 million tonnes of SO 2 per annum, with the largest amounts coming from Peru, Chile, Russia and Australia. SO 2 emissions have a significant local impact and can be grounds for revoking a company s license to operate, depending on local laws and authorities. There are also health and safety issues to consider, as fine particulate matter emitted into the air can cause health problems. Heavy metals in hazardous dusts and fumes can lead to occupational exposure. Also, other ecotoxic substances from metallurgical operations can have an impact on air, water, and soil quality. Outotec Flash Smelting and Flash Converting process combined with a sulfuric acid plant can capture 99.9% of the sulfur dioxide released from the ore. Furthermore, efficient gas cleaning captures mercury, arsenic, antimony, bismuth, and lead from off-gases. Designing sealed processes minimize fugitive emissions. Through several BAT-rated technologies, Outotec s customers can benefit from energy efficiency, low emissions, and improved occupational health and safety. Overall, Outotec technologies guarantee our customers a license to operate far into the future. With plants lifespans in the decades, and regulation becoming more and more restrictive, financiers also increasingly consider sustainability to be a vital factor in their investment considerations. The need for recycling is increasing New technologies for turning scrap and waste into energy or materials are both economically and environmentally necessary. The manufacture of new products from recycled metal consumes much less energy than using virgin materials. Metals are also almost 100% recyclable, however, these advantages are not being fully utilized. In the meantime, product lifetimes are becoming shorter, thus the need for recycling is growing. Throughout the world, recycling is still poorly organized. Recycling and separating rare earth metals is difficult and the amount of material recovered is small. Other relevant issues include the recycling of process water and the challenge of turning waste into products. Outotec s technologies allow for the production of metals from secondary materials such as electronic waste, metallic scrap, cabling, and battery paste or scrap. They facilitate the recovery of metals from residues, fume dusts and waste stockpiles at production sites, and are designed to utilize raw materials efficiently, thus reducing the amount of emissions, residues and waste. They also capture sulfuric acid from the metallurgical processes. In addition, Outotec offers services for upgrading and refurbishing old equipment.

5 6 7 The challenge: Konkola Copper Mines Plc. wanted to replace its old smelter and build a new environmentally sound copper and cobalt production facility in Nchanga. Concentrates from the Zambian Copper Belt are complex with high copper, low iron, and high silica contents and contain also cobalt, which makes them challenging to process with conventional methods. Furthermore, infrastructure at the site was poor. As the investment was large, the technology supplier had to be able to master the whole process, integrate various technologies, and provide training and operational know-how. New copper smelter for Konkola Copper Mines in Zambia Outotec s solution The concentrate blend with high copper content indicated that it would be feasible to utilize the Outotec Direct Blister Flash Smelting process. Outotec carried out laboratory tests at its research center to confirm the process design parameters, as based on its vast experience, no pilot tests were required. In addition, thermodynamic modeling of slags, resulting from different feed blends, provided valuable knowledge when defining the operating window for each process step. The Direct Blister Flash Smelting process was chosen for the smelter, as due to reduced process steps it provided high effectiveness and ensured the environmental and safety performance of the smelter. The process eliminates the converting phase and thus the need for molten metal crane transports. For slag cleaning and cobalt recovery, a two-stage electric furnace process was applied. One of the leading ideas in the design phase was to minimize the slag amount, which contributes to high copper recovery in the entire process. The commissioning was challenging because of completely new slag metallurgy, infrastructure limitations, a landlocked country, and a new operation team who were unfamiliar with the process. The KCM operation team went for training to other corresponding plants in Poland, Australia, and Finland. The team endeavored to absorb the knowledge and experience the operating personnel of the other smelters had gathered. The problems encountered during the ramp-up time were solved and the smelter operations were stabilized in about 12 months. Today, the smelter produces more than 17,000 tons of primary copper in a month, being Q&A We The Direct Blister process combines two stages into one, and frankly we see Outotec as having a distinct edge in terms of energy efficiency here. Dhulipala S K Prabhu, Manager of Process Management, Smelting & Refining, KCM limited due to shortage of concentrates. Recoveries of the valuable metals are high thanks to ingenious separation of slag and metal. Outotec s capability to design and deliver the whole smelter ensured reliable and sustainable operation for the customer with a reduced number of unit operations, less fugitive emission sources, low emissions, and efficient use of energy. Sulfur dioxide capture is high and at the level of smelters in industrialized countries. After the commissioning of the new facility KCM shut down its Nkana smelter. One indicator of the good environmental performance of the Nchanga smelter is good air quality in the neighboring city of Chingola. KCM has received several safety awards and its processes are certified by a number of quality standards, such as OHSAS 1800, among others. spoke to Dhulipala S K Prabhu, KCM s Manager of Process Management, Smelting & Refining, about the company s impressions of Outotec and the joint working process on this expansive project. The contract In January 2006, Outotec agreed with Konkola Copper Mines Plc. (KCM) on the design and delivery of a new copper flash smelting plant to be built in Nchanga, Zambia. A few months later, an additional contract was made for the supply of slag cleaning and cobalt recovery furnaces to the same smelter. In 2010 another agreement was made to complete the smelter with the second cobalt recovery furnace. The total value of the contracts and services has exceeded EUR 70 million. Project scope Outotec s scope of supply covered the flash smelting license, basic engineering for the whole smelter, including drying, flash smelting, slag cleaning and cobalt recovery furnaces as well as process gas cleaning, delivery of proprietary equipment for advanced direct-to-blister flash smelting furnace, electric furnaces, and a twin 16-mould anode casting shop as well as related supervision services for installation and commissioning. Q: What led you to select Outotec as a partner? A: For any business decision we make, sustainability plays a large role. We look at the raw material in question and choose the technology to match based on sustainability and economic factors. In this case, Outotec s Direct Blister process was a strong point in their favor, as it smelts copper concentrate directly in a single step to produce blister copper without conversion. Effectively, this combines two stages of the process into one, and frankly we see Outotec as having a distinct edge in terms of energy efficiency here. Q: How would you characterize the working process? A: We appreciate that each commissioning is an individual project with a number of unpredictable factors. The strong relationship we enjoyed with Outotec ensured we could quickly and efficiently resolve the many issues which inevitably arose during the implementation, allowing us to adhere closely to the schedule for commissioning. We also received a great deal of help with technology and training. We were dealing with sophisticated and, in some cases, unfamiliar, processes, so this level of service was highly valuable to our personnel.

6 8 9 Through extensive simulation, Outotec developed a new approach to the cyclonic separation of particles from gas, resulting in vast improvements in energy efficiency. The challenge: Alunorte S.A., based in Brazil with registered offices in Barcarena, was founded in 1978 and employs around 2,500 staff. The company is a significant part of the aluminum production chain in Pará state, and produces around 6.3 million tonnes of aluminum per year. Alunorte s plant employs cyclone technology at multiple stages, for preheating, calcining, and aluminum hydrate and, in two stages, cooling the aluminum oxide, or alumina, produced. In each cooling stage the alumina is mixed with the combustion air and then separated in a cyclone stage. However, separation in cyclones is never complete, which means that fine dust is transported with waste air from the one stage to the next within the installation: an inefficiency in the process which imposes pressure loss and necessitates heat usage. Advances in cyclone technology raise energy efficiency at Alunorte The cyclone renewed In June 2006, Outotec was contracted to provide two new calcination plants (in addition to the five existing ones already supplied) for Alunorte s third alumina refinery expansion near Belém in Brazil. The work consisted of engineering, supply of special parts, and technical assistance for customer procurement, construction, and commissioning. The calcination plants started operation in late The final expansion consolidated Alunorte s position as the largest alumina refinery in the world. With this latest calcination generation, Outotec has provided significant energy efficiency improvements to the refinery. Through extensive simulation, Outotec developed a new approach to the cyclonic separation of particles from gas, resulting in vast improvements in energy efficiency. Thanks to this revised process and Outotec s Premio- Cyclone technology, considerably fewer solid particles now remain in the gaseous medium than in the past. This results in an appreciable energy saving and also serves to stabilize operations, meaning that a relatively large temperature fluctuation is prevented and the quality of the end product is improved. By using this procedure, Alunorte has been able to reduce specific energy consumption for calcination from 3,000 kj/kg to 2,790 kj/kg. In annual production terms, this means a considerable energy saving of around Q&A Q: What are the business incentives to improving energy efficiency? A: For an energy-intensive business sector such as ours, every kilowatt hour that we can save helps to make us more competitive. This is why innovations such as the new calcination process are very important to us. 56 million kwh, an achievement that led to the plant being awarded with German Energy Agency Dena s Energy Efficiency Award It should also be noted that the simulation tools developed and implemented at Alunorte are valid not only for calcination but also to any other process which utilizes gas cyclones or fluidized beds in various forms and combinations. Smarter fuel feeding Improvements to the cyclone are not the only energy efficient adjustment to the Alunorte plant, however, Outotec s patented method, SmartFeed has been implemented to deal with fluctuations in hydrate feed from the plant s conveyor belt system. In normal circumstances, a jam or other incident may cause a loss of feed, or a surplus of fuel being added to the furnace. At hydrate feed rates of up to 65 kg per second, such an event could cause the furnace to overheat, or shut down altogether. Outotec SmartFeed rectifies this problem by allowing operators to monitor the hydrate feed and have the fuel input automatically regulated to suit. This new feature, combined with the renewed cyclone technology, is key to Alunorte s energy efficiency achievement. With the fuel feed synchronized to the conveyor system, plant operators are one step ahead, and potentially costly problems are prevented before they can occur. We spoke with Joaquim Ribeiro Alves Filho and Victor César Ribeiro da Cruz of Alunorte about the energy efficiency improvements made at the plant, to learn how Outotec s solutions have improved their business. Q: How would you appraise Outotec as a technology partner? A: Our goal is to produce the highest quality alumina in the world. In order to reach that we need two things: the best available technology and the most qualified professionals. Outotec provided us with both. Their technology is reliable and easy to work with. The same is true of their people.

7 10 11 The challenge: Our Brazilian client Samarco Mineração is owned in equal shares by Vale and BHP Billiton. As the world s second largest seaborne exporter of iron ore pellets, their integrated mining activities include iron ore mining, beneficiation, pelletizing, and transportation. Samarco aimed to increase their total capacity from 14 to 21.6 million tonnes per year. This was to be achieved via construction of a new concentrating plant in Germano (MG), a new pelletizing plant in Ponta de Ubú (ES), and a pipeline of approximately 400 km to connect them. Pelletizing plant core for Samarco Mineração Our competitive advantage In selecting Outotec as a partner, Samarco took three key factors into account. The first was our technology offering. By modifications to the internal configuration of the furnace (one of our USPs) we were able to increase the efficiency of the furnace substantially. Next came the fact that we were able to implement this project on a lump sum turnkey basis covering all site activity from lab test work to initiation of pellet production. Finally, our emphasis on procurement of local suppliers and services was of immense importance. The project was implemented with around 80% Brazilian supplies and services and a vastly reduced quantity of imports and expatriate personnel. A key challenge for Outotec in this case was the fact that our last lump sum turnkey project on a comparable scale was completed 15 years ago. In addition, we had not implemented such a large project on Brazilian soil before, meaning that a project organization had to be built from the ground up. In 2005, when the project was initiated, our fledgling task force comprised only people. At the peak of activity our personnel in Brazil numbered The project was implemented with around 80% Brazilian supplies and services and a vastly reduced quantity of imports and expatriate personnel. Client award for excellence In 2008, Samarco Mineração awarded Outotec with the Prêmio Samarco de Excelência. The award was recognition for Outotec s performance during the implementation of the pelletizing plant project and, in particular for Outotec s high standard of services and supplies, ability to meet deadlines, social responsibility and safety at work. In determining its best suppliers, Samarco utilizes a quality index for contracted services and supplies and makes quarterly evaluations of its suppliers in terms of their adherence to international environmental as well as health and safety standards. The scope The scope of Outotec s work in this case extended to the design, engineering, delivery and construction of the pelletizing plant core (a traveling grate indurating furnace, process fans, gas cleaning equipment and auxiliary installations) on a lump sum turnkey basis. The finished plant would have an annual capacity of 7.25 million tons of iron ore. With a contract value of EUR 160 million (USD 200 million), the end-to-end implementation time was 30 months, in which time 5,623 tonnes of steel structure was erected and 11,265 tonnes of equipment installed. Pelletizing, simply explained, is the transformation of very fine raw materials, in this case iron ore powder, into spherical pellets less than 16 mm in diameter. This process facilitates transportation and enables end customers to process the iron further in blast furnaces or direct reduction furnaces. Pelletizing is an area in which Outotec has considerable expertise, dominating the market with an installed annual capacity of 45 million tonnes. Sustainable outcome Samarco Mineração prides itself on its commitment to the environment, and so carbon emissions and energy efficiency were defined as KPIs from the outset. The finished pelletizing plant is Brazil s most environmentally friendly both in terms of energy consumption and CO 2 emissions (by a factor of around 20%) thanks to Outotec s traveling grate technology, which emits around 30% less CO 2 than that of our chief competitors. Sustainability was also of signal concern in terms of procurement of local services and suppliers. Around 30% of all equipment within our project scope was purchased in Espírito Santo, and we employed the expertise of 210 Brazilian engineers and specialists during implementation. The project team put in a record performance with regard to health and safety measures as well as environmental compliancy, executing almost four million man hours with no lost time due to injuries and zero environmental incidents. In addition to the successful implementation of some novel technical processes, which have allowed the plant to become a model of energy-efficient pelletizing, the project goals were accomplished within a very tight delivery time of thirty months. Thomas Schwalm, Outotec Vice President, Ferrous Technologies

8 12 13 Enefit brings distinct environmental benefits to oil shale technologies The partnership Enefit Outotec Technology represents a development partnership between two of the leading players in mining technologies and energy production. Eesti Energia brings 100 years of experience to the table, as well as its status as the world s largest oil shale to energy company, producing 1.4 million barrels of oil annually, derived from 1.6 million metric tonnes of oil shale. Outotec, on the other hand, with its global presence, market-leading solutions and project implementation experience, has been the leading provider of fluidized bed technologies for over 60 years. With the plant in Narva, Estonia as a strong demonstrative example, this technology can be marketed as a production model proven to be efficient, clean, and profitable. With oil prices rising and demand growing, the Enefit cooperation points to oil shale as a source of synthetic crude, giving countries the opportunity to create a domestic supply for many years to come, with the potential to create jobs, increase GDP, and replace imported oil. Dramatic improvements Estonia has almost 100 years of commercial oil shale experience, and Eesti Energia has utilized the country s extensive oil shale resources for energy production for nearly 30 years. Throughout this period, the production costs for oil produced from oil shale have become competitive with that of oil drilling. The most significant benefit of the new Enefit technology is its improved energy efficiency. After separating the oil, the spent shale is processed further in a circulating fluidized bed reactor to burn any carbon residue. The thermal energy created in the process is utilized in the drying and processing of raw oil shale and in the production of steam and electrical power. The process uses the oil shale s own energy, which is utilized completely and allows the process to be energy self-sufficient. The characteristics of the waste are also improved, since organic residues can be completely removed from the ash in the circulating fluidized bed (CFB). In addition, the technology dramatically reduces water usage, as the cooling of ash is performed in fluidized bed coolers, extracting the intrinsic heat and producing steam for electricity production. Thus, the technology enables a process that minimizes environment impact and complies with the high standards set by the EU. Future potential The world s utilizable oil shale resources are multifold compared with traditional oil resources. There are extensive oil shale deposits, for example, in the United States, Brazil, China, Russia, Jordan, Turkey, and Estonia. In Estonia alone, and there are plans to build several plants using the new technology. In addition to oil shale, the same processes can be used in the utilization of other hydrocarbon-containing materials such as oil sands, plastic waste, and used tires. Eesti Energia s first new plant, Enefit280, is under construction in Estonia, to be commissioned in With the plant in Narva, Estonia as a strong demonstrative example, the technology can be marketed as a production model proven to be efficient, clean, and profitable, further highlighting Outotec s commitment to sustainable usage of Earth s natural resources.

9 14 15 We enable sustainable use of Earth s natural resources 1. The demand for metals and raw materials to support global development is growing while resources are becoming increasingly scarce. Our customers face many challenges such as declining ore grades, rising energy prices, water scarcity, tightening environmental regulations, employee health and safety, and long-term operational profitability. Solution definition 3. Benefits Engineering, Sourcing, Delivery 4. SUSTAINABLE OUTCOME CUSTOMERS Clean, efficient operations and high return on investment. SOCIETY Improved resource efficiency, clean environment, prosperity. 2. Our core competence is in mineral and metal processing. We develop new applications for energy and industrial water treatment, offering customers sustainable technology solutions and life cycle services. Feasibility study, Analysis Material efficiency Water efficiency Fuel efficiency Reduced emissions Energy efficiency Increased recovery Increased safety Recycling Installation, Commissioning SUPPLIERS We expect our suppliers to adhere to the same high standards as we do. EMPLOYEES Meaningful and rewarding jobs. SHAREHOLDERS Investing in a responsible company. Upgrades, Expansion, Demolition Operation, Maintenance ECOLOGICAL FOOTPRINT Technologies with low impact.

10 16 17 Metals, water, energy, and sustainability Outotec s Director of Technology & Product Management, Markus Reuter, gives us an outline of how metal production and prudent usage of water and energy usage enable the sustainable use of our shared natural resources. Metals are an essential component of today s society: a moment s reflection on their ubiquitous presence in virtually all energy and material production processes is enough to confirm this. We also, of course, consider an abundant supply of clean water a routine essential, and the constant need for energy is a given all over the world. However, the resources of our planet are limited, as is the strain to which we can subject it in terms of emissions, pollution, and disposal of waste. For these reasons, finding ways to lower the environmental footprint of our collective existence is a vital priority. This urgent need highlights Outotec s status as a vital player in sustainability. Two things are required: the best available techniques for reducing the environmental toll of existing processes, and innovative solutions to reverse the trend on a global scale. With our decades of experience and forward-looking attitude, we see ourselves as capable of fulfilling both of these criteria, enabling sustainability as a company by providing metals for products that lower society s environmental footprint. Closing the loop At Outotec, we produce some of the world s most energyefficient metals and water processing solutions, often making extensive use of local resources and personnel. We are justifiably proud of our sustainability track record in process technologies. However, our activities do not end there. The ultimate aim of our solutions is to decouple resource usage, and thereby the welfare of our societies, from nature, and this is achieved by advanced metal recovery, water, and recycling technologies. It may surprise you to learn that for some metals, recovery has already eclipsed mining as the principal source for production. Lead is a good example, as over 65% of the metal currently produced worldwide is sourced from recycled car batteries. Outotec s Top Submerged Lance technology helps to make this possible, and can be used to process and recover other metals, as well as e-waste. Resource efficiency is of great importance when considering the production of metals from this perspective. Prudent and efficient use of materials and technology will define our future on this planet, and, by recognizing this fact today, we are taking a responsible step towards ensuring that the preconditions for an advanced society continue to be available for generations to come. Enabling sustainability As we strive to make clear, Outotec s commitment to sustainability extends far beyond our own operations, which are relatively minor in terms of emissions. We see our impact in the mining and metallurgical industries as of core importance to the effective use of the planet s limited resources. You may have seen the phrase Enabling sustainable use of Earth s natural resources in an Outotec publication. This is testament to the fact that we not only seek to produce metals sustainably, but also aim to provide the materials necessary for green energy production methods such as solar and wind power, as well as other energyconserving solutions like mass transport concepts. All of these are means of reducing our footprint as a global society, and all, for better or worse, require metals from the outset. The key fact is that we want those metals to be produced in a sustainable manner, and then returned to Outotec s commitment to sustainability extends far beyond our own operations. We see our impact in the mining and metallurgical industries as of core importance to the effective use of the planet s limited resources. With our decades of experience and forwardlooking attitude, we see ourselves as enabling sustainability as a company by providing metals for products that lower society s environmental footprint. the value chain via recycling once they have achieved their purpose in the world. Take wind power, for example. Those impressive windmills one can see towering over the shorelines of some of our most forward-thinking countries are constructed mainly of steel, and the magnets employed within them incorporate rare earth elements. It must be recognized that without the mining and metallurgical industries, the resource-efficient solutions of the near and far future will simply not come to pass. Consumer expertise A company cannot provide metallurgical solutions effectively without deep insight into the fields in which the end product will ultimately be used and substantial knowledge of consumer demands. Every quantity of metal produced using Outotec technologies will end up with a consumer of some kind, and knowledge of how they will employ these materials is one of the best ways in which we can promote resource efficiency. Understanding both the design and the substance well can lead to enterprising new whole-of-system solutions and techniques to impact sustainability significantly. Again, Outotec has a unique opportunity to offer its expertise here, for the greater benefit of our society. There is also a more wide-ranging perspective, of equal or greater importance, which involves seeing where society s usage of metals is headed, anticipating trends in sustainable solutions, and ensuring that the materials in demand in the future are put to good, efficient use before they too reenter the production cycle. We at Outotec, for our part, will continue working to ensure that the fundamental link between metals and sustainability is handled with awareness, experience, and significant expertise. In doing so, we hope to help guarantee a sustainable future for our planet.

11 18 19 The challenge: As the Middelburg plant was Outotec s third project with Samancor Chrome, all circumstances were favorable for a relatively straightforward implementation process. Our familiarity with the client, the local partners involved, and, of course, prior experience with the particular ores in question, allowed us to proceed according to tight deadlines and keep strictly to budget. However, the global financial crisis of 2008 had an unprecedented effect. As implementation began, the world s markets hit a serious downturn and, as a stabilizing measure, the project was put on hiatus for several months. At this point, mechanical completion had been reached, and much of our contracted supervision and training work was also fulfilled. With the accommodating flexibility Outotec prides itself on, we commenced operations once again in Febuary 2009 and the plant was successfully commissioned in April of the same year. The scope Samancor was founded in 1975 (although its roots go back to the 1930s) and its chrome division gradually expanded into the world s largest integrated ferrochrome producer and South Africa s leading exporter of ferrochrome, chemical-grade chromite, and foundry sand. The mining concern is now jointly owned by IMR (BV) (70%), Batho Barena (Pty) Ltd (28%), and Hanwa Co. Ltd (2%). Outotec (as Outokumpu Technology prior to 24 April 2007) successfully completed two prior projects with Samancor in 1998 and In the case of Middelburg Ferrochrome, which entailed delivery of a chromite pelletizing and sintering plant, Outotec s responsibilities encompassed basic engineering of the plant, technology delivery (including proprietary and key equipment), as well as overseeing its automation, commissioning and start-up. Sustainable outcome Middelburg Ferrochrome is of great importance to our sustainability portfolio in that it demonstrates our commitment to helping customers navigate the increasingly complex and challenging terrain of local and international legislation. In this case, the situation hinged on the various technologies used to derive ferrochrome from its ores. Regulation is increasingly focused on the high-energy-consumption method at work in semi-closed AC furnaces such as those generally used in other South African production plants. Establishing a plant using Outotec s exclusive chromite pelletizing and sintering technology enabled them to vary their production techniques, minimizing operational and environmental risk should legislation tighten in the sphere of AC-furnace smelting. Savings in CAPEX and power consumption A clear benefit, both from an environmental and a costfocused perspective, is to be found in both the reduced power consumption required to smelt chromites in pellet form, and the increase in chromium recovery. Against processing of fine, non-agglomerated products of benefication as well as lumpy ores, sintered pellets produced higher quality chromites at lower power consumptions (typically between 3,000 and 3,200 kwh/t) and a chromium recovery rate typically in excess of 85%. This enables significant reductions in CAPEX compared to competing technologies, which is why the advanced Outotec Ferrochrome Process, originally developed and employed in our former parent company s ferrochrome plant in Tornio, Finland, has been such a consistently popular choice. The process also enables the ability to reuse the resultant CO gas as a source of secondary energy, which saves primary electric energy in ferrochrome production and replaces other fossil fuels. Filtering and utilization of the gas has a high impact on total dust and gaseous emissions and on energy optimization at ferrochrome and steel works. Needless to say, this is yet another strong environmental point in the process favor. Q&A Donald Grant, Engineering Manager at Samancor, helped us to put this project into perspective in terms of the company s operations and sustainability-related aims. Samancor Chrome pelletizing plant in Middelburg, South Africa Q: How did this project improve your sustainability portfolio? A: Middelburg Ferrochrome has taken a long-term view of the submerged arc furnace operation, and accordingly Outotec s pelletizing and sintering technology will be a good fit for our ore supply and production planning well into the future. The cost-effective production of sintered pellets has added value to the Middelburg Ferrochrome operation, both in energy efficiency and production volumes. The plan is to maintain a cost-effective operation into the decades to come. Q: How would you describe the process of working with Outotec? A: Outotec clearly has the experience to deliver a high-quality pelletizing and sintering plant on schedule, but above and beyond this, their engineering services and equipment provided is of a very high standard. For example, the plant s first steel belt had a life span of 515,000 tonnes of sized pellets, with the belt still tracking true and having enough life left to go to a full year of operation.

12 20 21 Automated monitoring redefines operator workflow at Boliden s Pori refinery The solution The future Outotec s innovative refinery monitoring system provides Outotec sees focused integration of machinery, process and real-time cell status indication for the Pori plant operator crew based on the voltage and temperature mea- operations and decision making as one of the key compo- advanced monitoring systems data to serve daily refinery surements of each electrolytic cell. Operators and plant nents in improving operational efficiency and competitiveness in the near future. The most expansive CellSense management receive reliable and real-time information on the electrolytic cell performance and condition, system, located at the Pori refinery, has been in operation which enables improvement in operational and energy since 2008, and after initial technical challenges were efficiency, operator safety, process maintenance and, of overcome, it has been tested with highly successful results course, a higher and more consistent cathode copper against the conventional operational model. Worldwide quality. economic concern has been a factor, but we have accommodated our client with flexibility and solid experience of The CellSense system provides a completely new way of organizing the operator s workflow. Operators their business area, scheduling our mutual activities to are no longer required to dedicate time and energy to their best possible advantage. locating problems in the cells operation. They can now Current plans include scaling the system in Pori up to concentrate on resolving cell issues as soon as the encompass the entire plant. Another significant implementation has been commissioned at Rio Tinto s Ken- CellSense system raises the alarm. This is the core benefit of Outotec s automation technology: freeing up necott Utah Copper Refinery in the USA, with 1,420 cells labor from routine tasks to benefit the overall efficiency monitored in real-time, and the next will be at a copper of the plant. refinery expansion in China. As CellSense technology can also be utilized in other metal refineries (e.g. zinc, nickel and copper electrowinning), we see it as a vital part of our forward-looking efficiency portfolio. The challenge: Boliden is the third largest copper metals supplier and the third largest zinc metals supplier in Europe, with premises in Sweden, Ireland, and Finland. At their refinery in Pori, copper anodes from the nearby Harjavalta smelter are refined into copper cathodes. With an annual capacity of over 150,000 tonnes, the refinery is a large plant containing some 780 electrolytic cell units, each of which must be kept in good working operation to ensure maximum productivity. Extensive manual work is required, with inspection of each cell by trained personnel required on a daily basis. Where problems are found, on-thespot manual correction is needed to get cells back into fully efficient operation as soon as possible. Evidently, service and maintenance figure significantly in such an operating model, with accompanying labor costs to match. The CellSense system provides a completely new way of organizing the operator s workflow. This is the core benefit of Outotec s automation technology: freeing up labor to benefit the overall efficiency of the plant.

13 22 23 the entire roaster train, delivering additional benefits for the customer, such as improved energy recovery as well as reduced dust and sulfur dioxide gas emissions. The construction work at the Cajamarquilla site started in June 2008 and the project employed more than 600 people in various fields of construction. ments in the field, supporting plant productivity by bolstering efficiency and paving new ground in safety and ease of maintenance. Bringing fresh perspectives to zinc roasting at Cajamarquilla The client In October of the same year, Outotec was awarded a Votorantim Metais, founded in 1981 and based in São contract to supply this new zinc roasting facility, including Paulo, is a mining subsidiary of Votorantim Group, the gas cleaning and sulfuric acid plants, on a turnkey basis. Brazilian conglomerate. The company ranks among the six largest zinc producers in the world, and is also a The scope leader in Latin American nickel production and a mainstay Outotec s activities would include the complete engineering of the Brazilian primary aluminum market. and civil works for the new plant, the supply and installation of a host of equipment, as well as supervision services In 2007, the company laid plans to double its annual zinc production to over 300,000 tonnes, while preserving and plant commissioning. The contract value exceeded its existing production line (in Cajamarquilla, Peru) adjacent to the new site. Other key targets included improving In 1977, Outotec built the first zinc roaster in Cajamar- EUR 80 million, with an agreed delivery time of two years. the environmental conditions of its operations and making quilla, which is still working at increased capacity. In this advances in plant safety and maintenance. second delivery Outotec s scope was larger and covered Distinct improvements A number of key improvements to various stages of the zinc roasting process were made. The feed port doors were redesigned to reduce burning of the slinger belts, which feed fresh concentrate into the roaster (the contents of which can reach C), and improve safety for operating personnel. The wind box, which channels combustion air into the roaster in order to achieve better mixing in the feeding zone and less dust formation at the outlet, was also redesigned, granting the operator greater control of air distribution. Innovative redesigns were brought to other elements also. The roaster s secondary air nozzles now provide a better mixture with the hot process gas, reducing the risk These new developments demonstrate Outotec s ambitious efforts to support plant productivity by bolstering efficiency and paving new ground in safety and ease of maintenance. of dangerous build-ups at the roaster wall. New concepts were also brought to the roaster s water-based temperature control system, for more precise adjustment of water usage. Newly designed water-cooled rotary valves were added to the transport system for calcine discharge, amongst other improvements to this fundamental plant feature (found at multiple points including the roasting furnace, waste heat boiler, cyclones, and hot electrostatic precipitators). These are just the beginning of a long list of innovations Outotec has brought to zinc roasting technology at Cajamarquilla. Together, these new developments demonstrate Outotec s ambitious efforts to pioneer improve- Outotec receives award for 500,000 incident-free hours Safety of personnel is a chief priority for Outotec. With over 600 people involved in the construction of the Cajamarquilla plant, and a fully working plant operating at normal capacity alongside it, this project represented a unique challenge in terms of accident prevention. Together with construction sub-contractor Graña y Montero (GyM), Outotec received a safety award from Votorantim Metais for achieving a spectacular 500,000 working hours without severe incident. The award reflects superb performance on the part of our safety team, as they established significant awareness of work safety amongst all workers on site. At the end of the day, the safety award is the achievement of all employees involved in the project, Florian Hertel, receiving the award on behalf of Outotec, pointed out. We have committed ourselves to the goal that all personnel should return home safely to their families and loved ones and that there cannot be any work so important that it is worth risking injury for. The Outotec construction team included two Health and Safety Executive Officers, who constantly ensured that the Outotec philosophy was upheld on site night and day. They were in close contact with their counterparts at GyM throughout, creating the synergy needed to achieve such an outstanding safety performance.

14 24 25 Safety first at Ma aden s sulfuric acid plant Breaking dependencies With an eye on its future economy and to ensure that it is no longer solely dependent on oil and gas revenues, the Kingdom of Saudi Arabia has established that its vast mineral deposits will be the long-desired solution. And so, in June 2007, Outotec made an agreement with Ma aden (Saudi Arabian Mining Co.) on the delivery of what would be the world s largest sulfuric acid plant facility. The total investment for the mega-sized sulfuric acid plant Ma aden envisioned was USD 500 million, of which Outotec s offshore contract amounted to EUR 270 million. Upon its completion, the facility s entire acid production would be utilized solely for the manufacture of phosphate-based fertilizer. Over 6 million hours have now been recorded without incident, and Outotec has been recognized with an award for this outstanding performance. Six million incident-free hours To realize this immense project, Outotec entered into a joint venture with the Saudi-based Central Mining Company Investment Ltd. and set up a local office in Ras Az Zawr/Al-Khobar. Thirty-one months later the project has reached its mechanical completion and will be going live in Not only was the project executed on schedule and within budget, but over six million hours have now been recorded without incident, and Outotec has been recognized with an award for this outstanding performance. In addition to producing the sulfuric acid necessary for fertilizer, the three plants will also be able to produce energy in the form of high pressure steam at a rate of about 800 t/h, similar to that of a traditional, mid-sized power plant. The challenge: The scope The scope of Outotec s involvement ranged from engineering and proprietary technology to the delivery and turnkey installation of the three sulfuric acid plants on site. Outotec was responsible for coordinating the worldwide purchasing of import equipment as well as the coordination of the facility s installation with a local partner. To train the plants operators, we also developed a stateof-the-art, dynamic computer simulator, incorporating all the equipment s design characteristics. This simulator became an essential component for in-house education and operational control, enabling the plant to operate at the highest possible level of efficiency. In a project of this scope and nature, huge challenges were to be found at every turn: the site selected for construction is Ras Az Zawr, which is located in the middle of a desert along the Persian Gulf coast, miles from the nearest town or city with any kind of infrastructure. From a technical perspective, Outotec was to design and deliver a lump-sum turnkey facility with three parallel production lines capable of turning out a total capacity of 15,000 tonnes of sulfuric acid per day a task not for the faint-hearted, as there was no existing benchmark for a sulfuric acid plant complex of this size.

15 26 27 Nordenham lead recycling plant supports resource conservation Closing the loop Consumers may not always consider the longer-term future of the technology products they use on a daily basis. From the family car to the latest smartphone, each includes essential metals which will eventually need to be recovered if global demand for materials such as lead is to be met in a sustainable manner. In fact, recycling of this metal has already reached a significant level, over 62% of total worldwide production, thanks to technology such as that employed by Recylex s facility in Nordenham, Germany. Since 1996, this plant has been recovering lead from around 200,000 tonnes of concentrates and secondary materials per annum (more than 70% of which are recyclates). Recylex is a company with a century of experience in lead production, recycling and enhancement of used lead batteries, and is firmly established as one of Europe s key player in this field. As lead recycling is more efficient in terms of energy saving and limiting CO 2 waste than direct production from lead ore, their processes are some of the most effective in terms of protecting the environment. It should be noted that the feed figures for the plant s furnace at the design phase were 122,000 tonnes per year. Thus, the Recylex plant is functioning well at 50% above the levels originally planned. Outotec s TSL process is enormously flexible, and reactors working on the same principles can be used to produce copper, nickel, zinc, tin, precious metals, and even to recycle e-waste. The process Variability of feeds in lead recovery makes it necessary to manipulate the chemistry, physics, and thermodynamics very efficiently. Outotec s top submerged lance (TSL) technology in use at Nordenham enables manipulation of different conditions to maximize the recovery of lead. The process is enormously flexible, and reactors working on the same principles can be used to produce copper, nickel, zinc, tin, precious metals, and even to recycle e-waste or process bottom ash from waste-to-energy plants. This versatility is one of TSL technology s unique advantages. The recycling process is resource efficient to the extent that all output is used in one form or another. Slag from the furnace is granulated and sold as lead oxide concentrate, natural gas combustion products and process gases are subjected to filtering, washing and cooling processes, resulting in clean gas and sulfuric acid output, and crude lead is processed for copper removal and then transported to refineries in liquid form for production of the final saleable lead product. Decoupling resource use from nature Effectively a closed process, the plant is free of pollutant effects, a clear advantage over disposal of lead batteries in landfills, possibly creating problems such as pollution of groundwater. Dust and SO 2 emissions, a substantial concern for Recylex prior to 1996, have been drastically reduced since the Outotec TSL technology was introduced. The plant s lead emissions are presently four times lower than the level required by legislation. The Nordenham facility is a superb embodiment of Outotec s efforts not only to produce metal in an environmentally friendly, efficient and economical way, but also to provide solutions that decouple the industry from excessive use of resources. Looking to the long term, this approach ensures that metals can be recycled time and again, continually lessening the footprint of the substance s production and enabling a sustainable supply of materials for future generations. Applications such as this support Outotec s drive to enable sustainability.

16 28 29 Dewatering constraints solved by refurbished pressure filter at Cosmos Nickel The challenge: Cosmos is a remote nickel-sulphide operation situated about 900 km northwest of Perth in Western Australia. The mine produces high-grade nickel concentrate containing 18 22% nickel, which is then trucked south to Esperance Port and shipped to Xstrata Nickel Australia (XNA) s Sudbury smelter in Canada. Throughout 2009, Cosmos systematically upgraded and optimized its processing plant in preparation for XNA s doubled 2010 production target. The process of removing the plant s bottleneck included reviewing its 17-year-old Larox pressure filter, inherited with the Cosmos site when XNA bought out Jubilee Mines in February Outotec s filter assessment (Larox at that time) found that the structural components were badly corroded after extensive outdoor weathering. We deemed the filter s life to be very limited and asserted that an upgrade and modernization of its mechanical parts was not in Cosmos s best interests in the long term. The solution Scheduled alongside dealing with the dewatering constraints, Cosmos s mill optimization was to be completed within nine months. This timing, however, didn t allow for the delivery time required for a brand new filter. In response, Outotec checked worldwide for an available used pressure filter that might be made suitable. Providentially, a hydraulic Outotec Larox pressure filter was sitting unused in England, left over from a defunct starch and chemical operation. It was perfect for Cosmos s needs. Further expandable to a maximum capacity of 24 plates, this filter would be easily converted to an abrasive minerals slurry application. During the filter s shipping to Finland, its refurbishment and modernization and its further shipping to Perth, Outotec kept Cosmos continually up-to-date with the unit s progress. As a result, when unexpected logistics delays occurred during the filter s shipping travels, Cosmos was able to readily accommodate these reports into the filter s installation schedule up until its arrival in late July Sustainable outcome The reconditioned filter was successfully installed and began operation during the first week of August Despite its sea freight delays, the newly commissioned filter met Cosmos s increased production schedule, on time for the planned mill optimization. The used filter s new life expectancy is now a further 15 years (after having been previously in use for ten) and it is already producing a number of cost- and energy-saving The customer perspective Stewart Keenan, Cosmos s Maintenance Superintendent, reviews Outotec s involvement with the filter changeover: I was more than happy with the services we received, particularly in the way they followed up. They were here night and day as soon as we shut the old filter off. They gave back-up support and the servicing technical guys were first-rate. All went very well. It was a really good project. There was lots of communication after the filter decision was made so there were no surprises. So all in all, our second-hand Outotec Larox filter is a success benefits for Cosmos. One example is the filter s newly affixed load cells, which are enabling optimization of the feed cycles through accurate logging of the production tonnage at regularly set intervals. With its dewatering constraints solved by the newly painted, refurbished and modernized Outotec Larox pressure filter, Cosmos is ready to produce new benchmark dewatering rates. These improved rates will meet Xstrata Nickel Australasia s production target of 13,000 tonnes of nickel per annum for 2010, a significant increase from the 7,500 tonnes produced in The process also served to sidestep the carbon footprint of new filter manufacture, which was rendered quite unnecessary in this case. The used filter s new life expectancy is now a further 15 years (after having been previously in use for ten) and it is already producing a number of cost- and energy-saving benefits for Cosmos. story it came on budget, on time for production and with no injuries. Site General Manager, Andrew Millar, also gives credit to his Cosmos teams: They got everything done in the timeframe and safely as well, considering the team worked in congested environments and with a 180 tonne crane. Cosmos achieved one million man-hours without lost time during the mill optimization period. If we had to do this project over again, we d consider buying a second-hand Outotec filter again for sure.

17 Outotec in brief: Providing sustainable life cycle solutions With a mission of sustainable use of Earth s natural resources, Outotec develops technologies and provides sustainable life cycle solutions to its customers, guaranteeing the best return on the customer s investment. The common denominator in all Outotec technologies is their ability to maximize recovery, minimize environmental impacts, save energy, natural resources, and capital investments. Outotec has a strong portfolio of technologies for the entire value chain from ore to metals. In addition, the company offers innovative solutions for the energy industry and industrial water treatment. Outotec actively develops and acquires new technologies and processes based on customer needs and business requirements. Read more about our focus on sustainability at Design: Miltton Oy / Printing: Libris Oy