Aluminium Environment and Society(1)

8/11/2019 Aluminium Environment and Society(1)

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Aluminium,

environment and society


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Foreword


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Hydros mission is to create a more viable society by developing natural resources and productsin innovative and efficient ways. Troughout Hydros more than 100 years history we havedeveloped businesses that begin by harnessing vital natural resources and end in benets to theeveryday lives of people around the world. We continue to improve the production of durablegoods through innovative uses of aluminium.

We have a responsibility in making a conscious effort to balance the need for prot with the needsof society. We believe business demands and societal demands are inseparable and interdependent. We cannot have true, long-term business success without societal success.

Any extraction of raw materials and all production processes entail some degree of impact, onthe environment and on societies, and the use of non-renewable resources which remain vital forfuture generations. Aluminium production is no exception.

Tese are challenging issues both from a scientic and an ethical point of view. Facing the issueschallenges our values. Some values are universal, while others are not. Values cannot be discussed

without a basis in facts. Tis booklet intends to be a contribution to the fact basis anda contribution to the debate on how we shape our future.

We believe that aluminium is an important part of that future.

Svein Richard Brandtzg President and CEO

Oslo, December 2012


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Aluminium,environment and society

Foreword 21. Why aluminium? 6

2. Life cycle aspects of aluminium 103. Benets of using aluminium 124. Aluminium recycling 185. Production of aluminium 246. Fabrication of aluminium products 407. Aluminium and health 428. Social issues 469. Research, education and international cooperation 5010. Hydros environmental strategy 52


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STRONG AND LIGHT

HIGHLY CORROSION RESISTANT

EASY TO FORM AND PROCESS

ABUNDANT RESOURCES


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GOOD CONDUCTIVITY

GOOD REFLECTIVE QUALITIES

IMPERMEABLE, NON TOXIC AND ODOURLESS

NON COMBUSTIBLE

EASY TO RECYCLE


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Aluminium is present almost everywherearound us in a vast number of applications. We may not even be conscious about itspresence, but we would denitely miss it.

Te use of aluminium has many advantages,including from an environmental perspective.Tese are related to the metals properties which benet todays society:

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STRONG AND LIGHT Aluminium is a very light metal, with a specic weight of2.7 (g/cm3), which is one-third of that of steel. Te strength of themetal can be increased by adding small quantities of other metals(alloys). Te low weight reduces energy consumption related totransportation, and hence also emissions of greenhouse gases andother pollutants.

HIGHLY CORROSION RESISTANT As the metal itself forms a protective oxide coating (that isimmediately reformed if the metal is cut or scratched), it is highlycorrosion resistant. Tis property can be further improved byvarious types of surface treatment. Tis property prolongs the usefullife of aluminium in cars and buildings and reduces the need formaintenance. Tis also reduces environmental impacts related toreplacement and maintenance.

GOOD CONDUCTIVITY Aluminium is a good conductor of heat and electricity, and inrelation to its weight, is almost twice as good a conductor as copper.Tese properties make aluminium the material of choice to achieveenergy effi cient systems for electrical transmission systems and otherapplications, such as heat transfer components.

GOOD REFLECTIVE QUALITIES Aluminium can reect both heat and light, and together with itslow weight, makes it an ideal material for reectors in, for example,light ttings. High energy effi ciency in the reectors contributes toreduced environmental burden.

EASY TO FORM AND PROCESS Aluminium is ductile, and has a low melting point. It can easily beprocessed in a number of ways - both in a cold and hot condition.Its great ductility allows design exibility and aluminium productsto be integrated in advanced applications in transport and buildingsindustries.

IMPERMEABLE, NON TOXIC AND ODORLESS Aluminium foil, even when rolled to just a 0.007 mm thickness,is still completely impermeable and lets neither light, aromanor taste substances in or out. Moreover, the metal itself is non-toxic, and releases no aroma or taste substances. Aluminium istherefore widely used in food and drink packaging. Te effi cientconservation of food reduces wastage of food, which is animportant environmental and resource advantage. Furthermore, thelow weight of the packaging reduces energy in transportation. Te

impermeability of aluminium foil also reduces cooling needs.

NON COMBUSTIBLE Aluminium used in buildings, constructions and transportequipment is non-combustible. It will only burn in a ne powderform or as very thin lm. Aluminium will melt when temperaturesexceed 660 C - without releasing any gases.

ABUNDANT RESOURCES Aluminium is the third most abundant element in the earths crust,after oxygen and silicon, constituting about 7 percent by weight ofthe earths crust. Bauxite is the only commercial ore used for theproduction of alumina today, but other sources may be feasible inthe future. Known bauxite reserves will last more than 100 years atcurrent rate of extraction.

EASY TO RECYCLETe re-melting of aluminium requires little energy, and metal lossin the re-melting process is less than 3 per cent. Only about 5 percent of the energy required to produce the primary metal initiallyis needed in the recycling process. Around 75 per cent of thealuminium ever produced is still in use, and constitutes a resourcebank for use in the future.


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Hydro has a long term aspiration of no net loss of biodiversity in the areas where we opeand to develop and provide products which may contribute to reduced burden on theenvironment in the use phase.

Extraction of natural resources and production and fabrication ofproducts will cause some degree of environmental disturbance. Aluminium is no exception. However, our focus is to minimize theimpacts and having a longer term aspiration of no net loss for the

biodiversity and ecosystems where we operate. At the same time we strive to maximize the positive environmental contribution ofaluminium used in various applications. Tese benets may morethan offset the initial impacts of extraction and production.

Bauxite mining

Alumina production

Primary aluminiumproduction

Recycling

Product manufacture

Use phase Semi-fabrication


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In this booklet, we will present informationrelated to environmental and social aspects of allthe steps in the value chain of aluminium, as wellas some examples related to Hydros activities andproducts, enabling the reader to assess the prosand the cons associated with our value chain andaluminium as a material.

A detailed scientic account of the environmentalfootprint of aluminium production is publishedby the European Aluminium Association1)

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ALUMINIUM IN TRANSPORTATION

ransportation is one of the largest energy consuming sectors, using about 19 percent of worlds energy demand. Use of aluminium helps to reduce the weight of cars, buses, tru

planes, trains and boats. When the weight is reduced, energy consumption during transpis reduced. Tus the extra energy and the extra greenhouse gas (GHG) emissions related the production of aluminium compared to alternative materials may be paid back many through the life cycle of the product.

Here are a few examples: According to a study by IFEU2), each 100 kilograms of weight

savings from the use of aluminium in an average family car(gasoline), amounts to an average life time fuel saving of 27.2 GJcorresponding to a reduction in fuel consumption of 800 liters.It takes about 7.7 GJ more energy to produce primary aluminiumthan the amount of steel it substitutes. Tis results in a net lifetimesaving of 20 GJ, corresponding to 600 liters of gasoline.

However, aluminium in cars is to a large extent recycled metal, where the energy used for recycling loop is much less. Te typicalrecycled content in a car is 40 percent, which means that the netlifetime energy saving is 22.7 GJ or 680 liters of gasoline. If onegives full credit to the fact that nearly all the aluminium in a careventually will be recycled, the savings are even greater.

Similar calculations for CO2 give a net lifetime emission saving of1,700 kilograms of CO2 for primary metal only and 1,950 kilogramsCO2 for a car with 40 percent recycled aluminium.

Te above study also looked at the effect of light-weighting in othertransportation media, such as busses, trucks, trains, air planes andships. In many of these applications, the energy saving per kilogram weight reduction is even more pronounced. As an example, weightreduction in an aircraft has in the order of 1000 times the effect as

in an average passenger car. And this is why aluminium and otherlight weight materials are already extensively used in airplanes.

Because of the great number of cars worldwide, the greatest globalsaving potential is in lightweighting the cars. Light-weighting in aircrafts is already implemented to a great extent.

Te IFEU study acknowledged that general technology trends arebringing the fuel consumption per km in cars down. Just replacingthe current eet of cars with new vehicles (without further weightreduction) would reduce fuel consumption by 7.5 percent. Butexploring realistic potentials for further weight reduction wouldreduce the fuel consumption by another 3.1 percent.

On a global scale, and including similar potentials in all transportsectors, this translates to an annual saving potential of 220million metric tonnes of CO2. Tis is about four times the annualgreenhouse gas emissions of Norway.3)

Since the IFEU study, the aluminium industry and the car makershave made further advances in nding aluminium substitutionpossibilities in cars. Up to 40 percent reduction of the cars body weight can be achieved by extensive use of aluminium withoutcompromising the strength4). Tis would reduce fuel consumptionby 10 percent. Some car models with aluminium bodies are alreadyin the market.

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ALUMINIUM IN BUILDINGS

Buildings are the largest energy consumer group world wide, mainly related to heating, ventilation and lighting. Buildings consume around 40 percent of the worlds energy dem

Creating more energy efficient building systems is therefore fundamental to meet the chof climate change and the squeeze on energy resources. Aluminium has many propertiemay be exploited to achieve buildings with very low energy demand, and it has even beproven that buildings may be net producers of energy.

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Aluminium-based faade solutions are essential in energy-effi cientbuildings, where sophisticated solutions are needed. Te buildingskin contains many functions, like sun shading, thermal andphotovoltaic energy producers, sensors and motors, which dependon load-bearing capability.

Hydro is actively pursuing the opportunities that aluminium mayhave as a construction material in buildings to create innovativebuilding designs that reduce energy demand and allows energyproduction and energy recovery.

Te energy needed to construct an aluminium-based building(embedded energy) is higher than for most other materials. However,the embedded energy in a building is small compared to the lifetimeenergy consumption and small compared to the energy savingpotentials. An example: using external aluminium sun blinds in

buildings will reduce the cooling duty of the building. Using averageGerman conditions, the CO2 savings during use will exceed the CO2 emissions related to production in less than one year, even if onlyprimary metal is used.5) And at the end of its useful life, nearly all thealuminium from the building may be recovered and reused.

Hydro has established a demonstration case building in Bellenberg,Germany, which has achieved net production of energy. In theperiod April 2010 July 2012, the Wicona test center buildinghas produced 108 MWh from solar panels, while its total energyconsumption was 79 MWh.6)

In another demonstration project, a 5,200 square meter offi cebuilding complex in Sandvika outside Oslo will be rehabilitated.Before rehabilitation, the buildings use 250 kWh/m2 per year, or1.3 GWh/year. Changing an existing building gives less architecturaldegrees of freedom. Still, great improvements can be made.Te ambition is that the buildings will produce more energy thanthey consume.7)


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ALUMINIUM IN PACKAGING

Aluminium in packaging is environmentally benecial due to weight reduction (reducinenergy for transportation) and by advantageous food preservation properties. Reducing

loss due to degradation reduces the environmental foot print of food production.

Aluminium packaging consists of roughly 50 percent semi-rigidand exible applications (menu trays and other food containers,plain foil and foil in laminates) and 50 percent rigid applications(beverage and food cans, aerosol cans, closures, tubes, etc.)

Packaging today responds to consumers demands for choiceand convenience as well as changed production and distribution

conditions and systems. By safeguarding product quality, packagingallows products to be transported and distributed locally, regionally

and even globally, thereby making valuable food resources availableto a wider population. In modern households, people increasinglyuse fully-prepared meals, canned and frozen foods, in a wide varietyof portion sizes, to save time in cooking and preparing meals.Packaging makes this possible.

Aluminium packaging offers a high level of corrosion resistance. It

provides optimal protection properties by offering an impermeablemetal barrier to light, ultra-violet rays, water vapor, oils and fats,

CO 2-savings due to reduced cooling needs

1 kg of aluminium is enough for 650 one-liter beveragecartons, and it preserves milk or juice without cooling. Assuming average cooled storage time of 4 days, the avoidedenergy for cooling results in 117 grams less CO2emission perliter beverage. Tis adds up to more than 2 million metrictons less CO2-emissions only from aluminium foil deliveredby Hydro. Tat equals saving emissions of more than800,000 cars a year!


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CO 2-savings in transportation ofbeer cans vs. bottles

In a study in Germany, the CO2-emissions related toproduction of beer cans or bottles, transportation of thebottles and the recycling or disposal of the empty cans /bottles were compared. With the assumptions made, thealuminium can came out with the lowest emissions. Tisranking is sensitive to the recycling rate, which is high inGermany, and to the average transportation distance.8)

kg CO 2 emissions per 1000 liter beverage

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oxygen and micro-organisms. When used to package sensitiveproducts such as pharmaceuticals or food, aluminium is hygienic,non-toxic, non-tainting and retaining the products avor. Tealuminium barrier also plays the essential role of keeping thecontents fresh and protecting them from external inuences,thereby guaranteeing a long shelf-life.

Te main environmental benets of using aluminium inpackaging are weight reduction which reduces the energy required

for transportation and effective food and beverage preservation which reduces need for cooling and loss of food products fromdegradation.

It is estimated that as much as 20 percent of the man madeGHG-emissions result from food production. In Europe, one-thirdof all food produced is wasted. Some of this wastage is due to poorconservation of the food. Aluminium packaging contributes toreducing these losses.


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Aluminium metal is sourced from primary aluminium and from recycled aluminium.In a resource constrained world, recycling is critical to sustainable development. It allowresources to be saved and waste to be reduced. Aluminium in use is an energy and resoubank, but due to the long life of many aluminium products, and due to growing demandthis bank can only supply 20-25 percent of the current demand. Te rest must beproduced from primary aluminium.

Bauxite5) 239.5

Bauxiteresidues 112.6and water 44.5

MATERIAL FLOW BALANCE FOR ALUMINIUM

Global aluminium ows in 2010. aking into account the nished products entering into use (50.5 million metric tons) and theold scrap recovered for recycling (11 million metric tons), the globalrecycled content for aluminium is about 22 percent.

Values in millions of metric tons. Values might not add up due to rounding. * Change in stocks not shown.1) Aluminium in skimmings2) Scrap generated by foundries, rolling mills and extruders. Most is internal scrap and not taken into account in statistics3) Such as deoxidation aluminium (metal property is lost)4) Area of current research to identify nal aluminium destination (reuse, recycling, recovery or disposal)5) Calculated based on IAI LCI report update 2010. Includes, depending on the ore, between 30% and 50% alumina6) Calculated. Includes on a global average 52% aluminium7) Scrap generated during the production of nished products from semis

8) Either incinerated with/without energy recovery, material recovery or disposal9) Estimated stock decrease 890,000 metric tons.

(Source International Aluminium Institute IAI)


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BENEFITS OF RECYCLING AND SOME LIMITATIONSUsed aluminium is valuable it can be easily and endlessly recycled without quality loss. Aluminium recycling even benets present andfuture generations by conserving energy and other natural resources.Only 5 per cent of the energy required to produce primary aluminiumis needed to re-melt aluminium. In addition to the energy savings,emissions of greenhouse gases and pollutants are reduced, andencroachments in the landscape related to bauxite mining and reningare avoided. oday, recycling of post-consumer aluminium productssaves over 90 million metric tons of CO2 and over 100,000 GWh ofelectrical energy annually compared to primary production of the metal,equivalent to the annual power consumption of the Netherlands.

Te worlds increasing stock of aluminium in use acts like a resourcebank, over time delivering more and more practical use and valuefrom the energy embodied in the metal. Around 75 percent of the

almost one billion metric tons of aluminium ever produced is stillin productive use, some of it having been through countless recycleloops through its lifecycle.

Most of the aluminium being produced today enters long-lifeproducts like vehicles and building products. With average lifetimeof about 15 to 20 years for vehicles and 40 to 50 years for buildingsthis means that most of the aluminium will not be available forrecycling for many years. As a result, access to aluminium scrapis limited. Globally, less than 25 percent of the aluminium beingproduced came from post-consumer scrap sources in 2010. With anexpected continued growth in aluminium demand, this share is notexpected to increase signicantly in the future.

Te gure below illustrates the material ow balance of aluminium.9)

Remeltedaluminium

43.8incl. recycled

aluminium21.3

Primary aluminiumused 40.6

Alumina6) * 82.4

Metal losses 2.0 Recovery and disposal8) 3.8 Under investigation4) 3.0

Oldscrap11.0

Otherapplications

3) 1.4

Semi-fabricated andnished products(input) 83.5

ME AL FLOW MA ERIAL FLOW

Finished products(output) 50.5Ingots9) 84.4

Fabricatorscrap2)

22.5

radednew scrap2)

1.8

radednew scrap7)10.5

otal products stored in use since 1888: 693.6

Net addition 2010: 31.2

Other 10%Engineering and cable 28%

ransport 28%

a.o. automotive 16%

Building 33%

Packaging 1%


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INDUSTRYS ROLE IN RECYCLING

Te recycling industry plays an essential partof the aluminium life cycle. Te amount of

recycled metal has increased steadily in recentyears, and the recyclers have implementednewer and better technologies to avoidharmful emissions from the smelting ofscrap. Authorities in many countries haveimplemented incentives to enhance therecycling rate. Hydro has set strategic goalsto increase its production of recycled metal.

Since 1980 the aluminium recycling industry has quadrupled itsannual output of metal from old (post-consumer) and traded newscrap, from 5 million metric tons to almost 20 million metric tons.Over the same period, annual primary metal production has grownfrom 15 to 44 million tonnes.

A fully developed aluminium recycling industry includes bothreners and remelters. Reners use more sophisticated processes,allowing them to produce alloys to customers specications froma range of scrap sources. Remelters mainly use clean and sorted wrought alloy scrap and make products of the same type as thescrap sources (such as used beverage cans into new cans or windowproles into new window frames).

Te recycling industry also involves collectors, dismantlers, metalmerchants and scrap processors, which deal with the collection andtreatment of scrap.

In Europe and North America, scrap has been generatedin sufficient quantities over the past 70 years to develop aneconomically strong and technically advanced aluminium recyclingindustry. Following the oil price shocks and energy cost increases ofthe 1970s, Japan ceased domestic primary aluminium productionand switched to aluminium recycling in the 1980s. In addition tothese traditional production centers, increasing recycling activitiesare evident in China, India and Russia.

RECYCLING OF ALUMINIUM PRODUCTS At the end of their useful life, the recycled product may be thesame as the original product (such as window frame recycled backinto a window frame or can to can), but is more often a completelydifferent product (for example a cylinder head recycled into agearbox).

ransport Around 25 percent of aluminium produced every year is destinedfor the transportation sector. Te amount of aluminium used percar produced in Europe almost tripled between 1990 and 2012,increasing from 50kg to 140 kg. Tis amount is predicted to riseto 160 kg by 2020, and even reach as much as 180 kg if small andmedium cars follow the evolution recorded in the upper segmentsof the automobile industry.10)

At the end of a vehicles useful life some aluminium parts, such as wheels and cylinder heads, are removed and the remaining car bodyis fed into a shredder, after which the aluminium fraction is separatedusing various technologies. Mixed alloy aluminium scrap collected inthis way is generally processed into casting alloys for the productionof engines and gearboxes. Due to the increasing use of wrought alloyin car bodies, a growing volume of such scrap is anticipated andhence the separate collection of specic alloys from cars is likely tobecome economically viable in the future. In Europe, 95 percent ofthe aluminium scrap from cars is currently being recycled.11)

Building and constructionoday around 13 million metric tons of aluminium a year are usedin construction, while it is estimated that globally some 220 millionmetric tons of aluminium are currently in use in buildings.

In contrast to many other building materials, which are mostlylandlled after demolishing a building, aluminium may be recycledin a way that is economically and environmentally sustainable. A2004 study by Delft University of echnology found that collectionrates for aluminium in European buildings were between 92 percenand 98 percent.12)

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OVERVIEW OF THE PRODUCTION STEPS

Te main raw material for primary aluminiumproduction is bauxite. Aluminium oxide is

extracted from the bauxite, and is used inan electrolytic reduction process to produceprimary aluminium. It takes roughly 4 7tons of bauxite to produce 2 tons of alumina, which again yield 1 ton of aluminium. Primaryaluminium is alloyed with other metals andis then fabricated into a range of productsthrough casting, extrusion and rolling. BAUXITE MININGOccurrence of aluminium ores Approximately 7 percent of the earths crust is aluminium, where itis the third most abundant element after oxygen and silicon.

echnically, aluminium can be extracted from many different ores,and the supply is then in theory unlimited. However, bauxite is theonly ore that is used for commercial extraction of aluminium today.It contains 15 25 percent aluminium.

Commercially available bauxite occurs mostly in the tropics inhorizontal layers normally beneath a few meters of overburden.Te layers are typically in the range 2-20 meters thick 14). It isusually mixed with different clay minerals, iron oxides and titaniumdioxide, and the iron gives it a deep red color.

Known reserves are around 29 billion metric tons. At the currentrate of extraction, these reserves will last more than 100 years.However, it is estimated that the total resources are in the orderof 55 billion to 75 billion metric tons when undiscovered bauxiteresources are included. Tis would extend the time perspectiveto 250 - 340 years. In recent years, prospecting has increasedthe reserves more rapidly than the rate of extraction: from 1995to 2011, 2.7 billon metric tons were extracted, but the reservesincreased from 23 billion metric tons to 29 billion metric tons.15)

However, the aluminium industry recognizes that availability ofbauxite resources may become a constraint in the longer term, andthat it may have to be prepared for other ores than bauxite in thefuture. Research to develop extraction processes from other minerais therefore on-going. In a long time perspective, more recycledmetal from long life applications (such as buildings) will alsobecome available.

Te main steps of primary aluminiumproduction are shown in the gure.BAUXI ECoke Pitch

Reduction (smelting)

Casting

Alumina Anodes

Electric Power

ROLLING EX RUSIONCAS ING


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5025155

Brazil

Jamaica

Guinea

China

India

Austra lia

(Source: US Geological Survey, Mineral Commodity Summaries, 2006, g. for 2005)

Major bauxite producers Bauxite mining in different regionsin million metric tons per year.

Percentage of world production (left) and reserves (right) of bauxite15)

Guinea AustraliaVietnam

JamaicaBrazilIndiaChinaOthers

21%

3%

3%

12%

7%7%

21%

26%

13%

21%

9%

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5%0%

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Bauxite mining operationsTe vast majority of world bauxite production is from surfacemines, while the rest, mainly from Southern Europe and Hungary,is from underground excavations.

Bauxite may be covered by an overburden of rock and clay, whichhas to be removed before mining of the bauxite. Mined bauxiteis generally loaded into trucks or railroad cars and transported tocrushing or washing plants and then to stockpiles.

Many bauxite deposits contain clay, which has to be removed bysome combination of washing, wet screening and cycloning. Where washing is applied, the suspended clay is usually deposited in tailing

ponds. At the end of the life time of the tailing ponds they arenormally revegetated using local species, enabling a long term re-establishment of a natural vegetation.

Environmental issues related to bauxite mining Due to its location close to the surface and relatively shallowthickness, bauxite mining involves disturbance of relativelylarge land areas. On average one square meter of land is mined(including roads and infrastructure) in order to give one tonne ofaluminium metal16). Te annual world wide encroachment on newland related to bauxite mining is about 40-50 square kilometers.However, quickly after mining the area, it will be normallyprepared and re-vegetated with local species. Tis means that

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although the resource is spread out, the area opened at any time isnormally small.

Depending on the local circumstances, the mining operations mayinvolve a number of environmental issues: Removal and re-establishment of vegetation;

change of landscape Control of erosion and run o from the mine Disturbance of hydrology Waste disposal (tailings) Mining operations and transport of bauxite - dusting/noise Opening new areas may also provide access to illegal logging,

farming, settling and hunting

Te aluminium industry recognizes these challenges, and theInternational Aluminium Institute (IAI) has carried out periodicsurveys of the performance of the bauxite mines since 1991.Most bauxite mining companies have subscribed to voluntaryimprovement programs, involving for example land rehabilitationschemes. Te latest survey, published in 2008 and covering theperiod 20022006, showed that the land rehabilitation equalledthe land mined during this period for those mines covered by thesurvey (including 66 percent of the worlds production).16)

Loss of bio-diversity and eco-systems are among the worlds topenvironmental issues, and tropical forest areas are among themost threatened areas. Mining in such areas may therefore becontroversial. Te following gures illustrate that the aluminiumindustry is a minor player in the greater picture:

According to the United National Food and AgricultureOrganization (FAO), it is estimated that the global rate ofdestruction of tropical forests is about 80 000 square kilometersper year17). About 20 percent of the 40 square kilometers annualland taken by bauxite mining is in tropical forest areas. Tese 8square kilometers constitute only 0.01 percent of the annual loss oftropical forest due to other causes. Considering the rehabilitationprograms, aiming at no net loss of forests, the inuence is evenless. It is also important to note that most of this area was alreadyimpacted by logging or other impacts before the mine wasestablished.

Te IAI publication gives a good overview of the issues and themeasures taken by the industry as a whole.


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Reforestation in Paragominas

Hydro is majority owner in the Paragominas bauxite minein northern Brazil since Hydro bought the Vale aluminiumactivities in 2011.

Bauxite extraction started in Paragominas in 2006. Tereforestation program started in 2009 and will continue beyond2040 in the area presently being mined. Te landscape issystematically shaped back to how it looked before mining. Tetopsoil is then added and seedlings are planted in a grid in the areasprepared. Te objective of the reforestation program is to lay thefoundation for nature long-term to re-establish a forest systemof the same structure as was typical for natural forests in the area.

Since the mine has only been in operation for a few years, therate of rehabilitation has not yet reached the same rate as the rateof new impacts by mine opening. Te objective is to achieve abalance between land impacted by mining operations and landrehabilitated by 2017.

Te Paragominas mine is located in what is normally recognizedas the deforestation belt around the central Amazon River. Temining area has been exposed to selective logging and clearcutting of forest for development of subsequent pasture land.Following a period where the municipality of Paragominassaw a reduction in its forest cover of more than 30 percent, themunicipality launched a program called Paragominas: Green

municipality in 2008. Inspired by the success of this, the Paraprovince followed up with Programa Municipios Verdes in2011. By May 2012, 91 municipalities covering more than 1million square kilometers had committed themselves to thisprogram. Te aim is to reduce the annual deforestation by 80% within 2020. A reduction of more than 50% has already beenachieved.18)

A reforestation assessment performed by Hydro in 2011reviewed areas close to the mine that have been exposed toselective logging. Te study found that the main structure ofthe forest ecosystems was still in place, even though most of thecommercially interesting trees had been logged. Improvementpotentials have been identied related to reforestation and wildlife management at Paragominas, and possible adjustmentsto the reforestation program are being evaluated.


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ALUMINA REFININGBetween two and four tonnes of bauxite are required toproduce one tonne of alumina. For logistic reasons, mostalumina reneries are located close to the bauxite mine, or atthe nearest harbour, where the alumina can be shipped out.

Te Bayer processTe Bayer process is used to extract the alumina from the bauxite,as illustrated in the simplied block diagram:

Te aluminous minerals in bauxite are dissolved in a hot solutionof caustic soda (sodium hydroxide) and lime (calcium oxide).Insoluble materials are then separated from the sodium aluminatesolution in thickeners and lters. Te bauxite residue is then washed, combined, and then stored in a landll. Te wash water,containing caustic soda, is recycled to the process.

Aluminium hydroxide is precipitated by cooling of the liquidand adding crystal seeds. Te precipitate is ltered and washedto remove and recover entrained caustic solution. Te aluminiumhydroxide is calcined in kilns at temperatures in excess of 960C.Free water and water that is chemically combined are driven off,leaving commercially pure alumina.

Digestion

Evaporation

Precipitation

Clarication Residue washing

Bauxite residue storage

Calcination

Water is removed and the hydrate isrecrystallized to alumina

Waterout

Waterin

Al2O3

Al2O33H2O

H2O

Bauxite

C a u

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o n

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Simplied ow diagramfor the Bayer process


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Environmental issues related to alumina productionTe main environmental issues related to alumina production are: Disposal of the bauxite residue (red mud) Energy consumption / energy e ciency Water management Physical footprint of the plant with infrastructure and the red

mud disposal area

Disposal of the bauxite residue is a challenging aspect of aluminaproduction due to relatively large volumes, occupying land areas,and due to the alkalinity of the residue and the run-off water. Te

industry is moving away from storage of the residue in slurry formin lagoons towards dry stacking, see gure below. Dry stackingallows the residue to be stored in higher piles, using less land andeliminating risk of ooding adjacent areas. Modern bauxite residuestockpiles are lined with an HDPE (high density polyethylene)liner and enough buffer capacity to manage run-off, avoidinguncontrolled spills and leakages to the environment.

Te run-off water from the stockpile is either neutralized beforedischarge, or recycled to the process. Dry stacking allows for betterrecovery of the caustic liquor entrained in the residue.

Percentage of the alumina reneries usingdifferent bauxite residue storage methods. Basedon reports from 17 reneries representing 44%of the worlds production in 2007.19)

30

Historical evolution of disposal method

2007198519751965

Percentage of reneries

Marinedumping

Lagooning

Dry stacking

0

100

80

60

40

20


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Alunorte, the worlds largest alumina renery 20)

Alunorte is the largest alumina renery in the world with a totalproduction capacity of close to 6.3 million metric tons per year inseven parallel lines. Tis is about 7 percent of the worlds production.

Energy:Te plant has a specic energy utilization of 8 GJ permetric ton of alumina and is one of the most energy-effi cientplants in the world. Te average for the industry was 50percent higher in 2009. Coal and heavy fuel oil are the mainenergy sources for steam generation, while electricity importedfrom the grid is mainly hydroelectric.

Greenhouse gas emissions:Te plant emits about 3.8 milliontonnes CO2 per year. In terms of amount of CO2 emitted perton produced, Alunorte is among the best third of the worldsproducers.

Water usage: Te plant operates with comparatively low waterconsumption (2.3 cubic meters/metric ton alumina).

Bauxite residue storage:Dry stacking method. Tis involvesdewatering of the residue to less than 35 percent water, whichmeans that the residue can be stacked in geotechnical stable pilesin stead of in lagoons, thus minimizing the overall land used forthe landll. Te residue storage is all lined with a HDPE liner.

Groundwater wells are located around the storage to monitor thegroundwater. Te run-off from the residue piles is alkaline. Terun off is collected together with surface water and contained within dykes. It is treated before discharge. At the end of the use,the bauxite residue stockpile will be covered through reforestation with local species.

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PRODUCTION OF PRIMARY METALProduction processesTe basis for all primary aluminium-smelting plants is the Hall-Hroult Process, invented in 1886. Alumina is dissolved in anelectrolytic bath of molten cryolite (sodium aluminium uoride,Na 3 AlF6) within a large carbon or graphite lined steel containerknown as a pot. An electric current is passed through theelectrolyte at low voltage, but very high current, typically 200,000amperes and up to 500,000 amperes for the latest generations. Teelectric current ows between a carbon anode (positive), made ofpetroleum coke and pitch, and a cathode (negative), formed bythe thick carbon or graphite lining of the pot. Te carbon anodeis consumed in the process, releasing CO2 with the potgas.

Molten aluminium is deposited at the bottom of the pot and issiphoned off periodically, taken to a holding furnace, often but not

always blended to an alloy specication, cleaned and then cast intodifferent semi-products.

An aluminium smelter consists of one or more potlines. Eachof them typically counts around 300-350 pots and may produce100-300,000 metric tons of aluminium annually. A typical smelter will produce 300,000 metric tons per year and the largest ones upto 1 million metric tons.

In modern smelters, anodes are prefabricated in a paste plant,followed by a baking process in a baking furnace. Te anode blocks, which may weigh around 1 metric ton each, are then mounted onanode hangers. About 80 percent of the anode is consumed in theprocess before the anode has to be changed. Te unused part of theanode (butts) are crushed and recycled in the anode production.Te net consumption of carbon is approximately 400 kg per ton ofmetal produced.

A modern smelter will usually consist of the following main units: Potline(s) Carbon plants, including paste plants and anode baking plants

Anode service plants, for removal of butts and assembling newanodes to the anode hangers

Cast house Gas treatment units Utility plants and storage facilities A harbor for import of alumina, coke and pitch and for export of

product metal

Aluminium production world wideTe world production of primary aluminium reached about44 million tonnes in 201121). Te average annual productiongrowth over the last 20 years has been 3-4 percent. Te regionaldistribution of the production is shown in gure below.

AfricaNorth AmericaSouth America

Asia West EuropeEast/Central EuropeOceaniaGAC/Gulf RegionChina

11%

41%

10%8% 5%

5%

9%

6%

4%

China is by far the largest producer, and also has the highestgrowth rate. Te Gulf region also has a signicant growth, whileproduction in most other areas either has declined or been stagnantin recent years.

Hydros primary production in 2011 was close to 2 million metrictons, or 4.5 percent of the world production.

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Gas scrubberSilo

Alumina

Electrolysis (potline)

Electrical power

Wire rod

Extrusion ingot

Sheet ingotPrimary foundry alloys

Steel shell

Anode (carbon)

Electrolyte (960C)

Liquid aluminium

Cathode (carbon in base and sides)

... is transported to casthouse

Direct chillcuring ofaluminiumingots

Aluminium smelting process

Primary aluminium is produced in reduction plants where pure aluminium is formed from alumina by an electrolytic process. Tis process is carried out in electrolyt which the carbon cathode placed in the bottom of the cells forms the negative electrode. Anodes, which are made of carbon, are consumed during the electrolytic pthe anode reacts with the oxygen in the alumina to form CO2. Te process requires electric energy, about 13 kWh per kilo aluminium produced in modern production lines.


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Technology development improves environmental performance

Te development of new potline technology within Hydrois focused on energy effi ciency, overall economic effi ciency,environmental performance and work environment. All ofthese aspects have to be taken into account when technologyimprovement programs are launched. Tese objectives are notcontradictory, but go hand in hand.

Increasing the amperage and the current density, while atthe same time reducing power consumption per metric tonproduced, are key factors for economic competitiveness.However, this will also benet the environment by reducingenergy demand, emissions and physical footprint.

Good process control is essential to optimize the production,but will also reduce emissions due to more stable conditions

E cient gas suction systems on the cells and e cient gastreatment systems benet both the external and internalenvironment, and at the same time valuable resources(e.g. uoride) are captured and recycled to the process.

Hydro is in the forefront among aluminium producers withrespect to developing and implementing energy effi cient cells with low emissions.


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Environmental issues related to primary aluminium productionTe main issues related to production of primary aluminium are: Energy production, transmission and consumption Emissions of greenhouse gases Emissions of uoride, SO2, dust and PAH Liquid e uents Waste disposal

Other issues may also be important, depending on localcircumstances (e.g. water use in water scarce areas, noise, physicalfootprint and land use conicts).

Energy supply issues Because aluminium production is energy-intensive, energy costsconstitute a decisive part of overall production costs of aluminium.Energy costs may account for about 20-40 percent of the totalproduction cost, depending on local power prices.

Historically, the development of a smelter has often been a triggerfor developing a local power source, and vice versa. Due to limitedtransmission capacity in earlier days, the smelters also had to belocated close to the power source, which is why e.g. most of theNorwegian smelters are located close to water falls utilized todevelop hydropower.

In industrialized countries, aluminium plants are typically exposedto market prices on energy, either directly or via long-termcontracts. Several of them are struggling to survive due to increasinpower prices. Power generators are transferring their costs associate with, for example, emission trading into the electricity price.Because aluminium is a globally traded commodity, producers areunable to transfer these regional costs to their customers.

Tis has already resulted in plant closures, although many of theplants in the EU / EEU countries have a better environmentalperformance than their competitors outside EU / EEU. It is thereforea major challenge for policy makers to create a level playing eld, where those plants which are really the best, will survive.

Te energy base for the worlds aluminium production22) (excludingChina and a few other countries) compared to Hydros base areshown in the charts above.

Considering that Chinas sizeable production is largely coal based,the real percentage of hydropower world wide is probably around55 percent, and the coal share slightly above 30 percent.

Energy base for primary aluminium production

World ex. China Hydro

HydroelectricNuclearGasOilCoal

68%

4%

20%

1% 7%

65%

22,5%

8,8%

3,6%0,1%


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5

Environmental impacts of energy production All kinds of energy production have some environmental footprints,and the aluminium industry must bear the responsibility for someof those, even if the power is purchased in the market. Dependingon the type of power source and the local circumstances, theenvironmental effects may be categorized as follows:

Power source ypes of impacts

All Impacts of power transmission lines(land take, aesthetic)

Hydroelectric Changes in aquatic and terrestrial habitatsalong the waterways, impact on recreation,tourism, loss of arable land, ood control,emissions of methane (see below)

Coal Emissions of CO2, SO2, NOx, dust; thermal

impact of cooling water, impacts of coal mining Nuclear Risk of radioactive emissions, radioactive waste,

thermal impact of cooling water, impacts ofuranium mining

Gas Emissions of CO2, NOx, thermal impact ofcooling water, impacts of gas production andtransport in pipelines

Oil Emissions of CO2, SO2, NOx, dust, thermalimpact of cooling water, impacts of oilproduction and transport

In Hydros energy sourcing strategy renewable power has rstpriority (in practice hydro-power), secondly gas power with highefficiency. If new plants should be built with coal as power base, thegeological conditions should preferably be present to enable carboncapture in the longer term.

Reduced energy consumptionechnology improvements and modernizations have reduced

the average consumption of electricity in smelters world wide by70 percent compared to 100 years ago. Improvements in recentyears are more marginal, as the energy efficiency is approachingtheoretical limits. Te graph shows IAI averages for 2006 to 2010and corresponding Hydro gures.23,24)

Hydro has ambitious technology development programs to furtherreduce energy consumption. Te latest generation of cells (HAL4e) which are operated at Hydros research center in rdal, Norway, achie12.5 MWh/metric ton25), and our ambition is further reduction. Tistechnology is ready for use in a full scale smelter project.

Hydro also looks for opportunities for heat recovery and utilizationTe plants in Sunndal, Hyanger and rdal, all in Norway, deliverhot water for district heating. Hydro is also active in R&D todevelop technologies which may increase the economic potential foheat recovery and utilization.

Greenhouse gas emissions Te main greenhouse gas emitted from modern smelters is CO2,and the main source of this is the consumption of the anodes in thepotlines, with minor emissions from anode production, cast house

and utilities.

However, the formation of peruorocarbons (PFC) during certainoperational conditions (anode effects) has been a major source ofGHGs in earlier years. Tese emissions have been reduced by nearly80 percent since 1990 even as production has almost doubled in thesame period, see gure on next page.

Electric energy consumption development, IAI and Hydro(Electrolysis DC-current only)

10

11

12

13

14

15

Hal 4e20102009200820072006

MWh DC / t Al

IAI Hydro Hal4e


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PFCs are emitted in small amounts, but they absorb infraredrays very effectively, and they stay in the atmosphere for a verylong time. Hence, the Global Warming Potentials (GWP) of twoPFC-compounds are 6500 and 9200 times higher than CO2 perkg emitted.26) Hydro has implemented extensive PFC reductionmeasures, so that the PFC emissions now represent about 4.2percent of the total smelter emissions of CO2 equivalents.

Te power supply to a smelter is an indirect source of greenhousegas emissions, depending on the power source. Te gure showsthat electricity to the smelter is representing nearly 60% of theoverall CO2-emissions of the mine-to-ingot value chain. Tis isbased on world average power mix.

Coal based power production has the highest emissions, witharound twice as high CO2 emissions per kWh as gas. Nuclear

power and hydropower are usually considered nearly CO2-free.However, Te World Commission on Dams has performed researchand studies which indicate that reservoirs in warmer climates mayhave signicant emissions of methane.27) Further research is beingcarried out to establish a consistent methodology to measure theseemissions over time.

In barren mountain areas like in Norway, however, the release ofmethane from such reservoirs is nearly negligible since they containlittle biomass, the reservoirs are very steep and deep and the climateis cold.

Other air emissions In addition to GHG gases, smelters emit uorides, sulphur dioxide,dust and minor quantities of PAH. In a modern smelter, the level ofthese emissions may be controlled to very low levels per metric tonproduced. However, due to the size of some smelters, there may stilbe some local impacts around the smelters, depending on the localsetting, the level of emission control measures and the sensitivity ofthe surroundings.

Fluorides are mainly emitted from the pots during interventions inthe pots (like anode changing). Most of the potgas (>99 percent)

is collected and treated with alumina scrubbers to remove virtuallyall the uoride. Remaining emissions in a modern smelter are lessthan 0.5 kg/metric ton Al produced, compared to 3 - 4 kg/metricton around 1970. Hydros smelters in Norway are in the worlds topleague with less than 0.3 kg F/metric ton Al.

Production of aluminium and emissions of PFC(as CO2-eq.) 1990 - 2010

0

20

40

60

80

100

2 0 1

0

2 0 0

9

2 0 0

8

2 0 0

7

2 0 0

6

2 0 0

5

2 0 0

4

2 0 0

3

2 0 0

2

2 0 0

1

2 0 0

0

1 9 9

9

1 9 9

8

1 9 9

5

1 9 9

0

Million tonnes

Primary Al production Annual PFC emissions

Contributions to CO 2 emissions from the aluminium production value chain

Reduction - electricity Reduction - process

Alumina rening Reduction - PFC

Anode productionCasting Bauxite mining

0.10

1.65 5.25

0.06

1.33

0.240.50

kg CO2/kg Al


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In the early 1990s the Norwegian Aluminium Industry engagedscientic institutes to perform an in-depth study of the effects ofuorides and other pollutants around Norwegian smelters, aftera period of signicant emission reductions. It was conrmed thatmost of the damages, especially related to uoride emissions, hadbeen eliminated or reduced to acceptable levels.28) Tis formedthe basis for the later revisions of the permits in line with a nosignicant effect philosophy. In the following years, furtheremission reductions have been achieved.

Fluoride emissions from smelters are not considered a health hazardto humans.

Sulfur dioxide(SO2) is emitted mainly from oxidation of the sulfurcontent in the anodes. Some smelters are located in sensitive areas where acidication of lakes or deteriorating air quality are issues. Tealuminium industry is a minor contributor to these problems on aregional scale. However, local authorities may request different levelsof pollution control, depending on the sensitivity of the area.

Te SO 2 is often removed by wet scrubbing (such as with seawater). All the Norwegian smelters, as well as Qatalum, have suchscrubbers, removing 9099 percent of the SO2. At other smelters,the emissions may be limited by using low sulfur anodes.

Dust is emitted from many sources, with the potlines and materialhandling systems as the main contributors. Te coarse particlesare mainly a local nuisance, but the nest particles may at elevatedconcentrations contribute to respiratory disorders, particularly inthe work environment. Better dust control systems have reducedthese problems signicantly at most smelters in recent years.

PAH is a group of tar compounds which can be carcinogenic.Emissions related to older potline technologies have mostly beeneliminated. Anode production is also a source, but more effi cientgas treatment systems have reduced these emissions to a minimum.Some plants (Sunndal, rdal and Qatalum) use regenerativethermal oxidizers (R O) to destroy PAH in an energy effi cient way.

Water use and liquid effl uents Use of freshwater is constrained in many areas due to scarcity of

water. Sophisticated water treatment systems which allow re-use of water have been developed to meet this challenge. New smelters artherefore often built with zero discharge of fresh process water; theyonly purchase the make-up necessary to replace the evaporation andother small losses. Qatalum has such a design.

Most of the Norwegian smelters are located in areas with abundantrainfall and availability of fresh water. Tese smelters therefore useonce-through cooling systems.

Seawater is used in many locations for removal of SO2 fromthe potgases and in some cases from the anode baking furnaces.

e e uents from these scrubbing systems are slightly acidic(pH ~ 5) and contain sulte, which consumes oxygen in thereceiving water. Due to the great capacity of seawater to neutralizeacid and good local circulation, the e uent is very rapidly renderedharmless with no traceable effects.

Waste Aluminium smelters generate solid wastes. One of the main wasteproducts arises from the relining of pots, which has to take placeevery 58 years. Te carbon part of the spent potlining (SPL) isconsidered a hazardous waste due to among other things its contentof uoride, cyanide, PAH and reactive metal. Te refractorymaterials are not considered hazardous. One aim has been tominimize the volumes through extending the life time of the pots.

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In addition, several uses of these materials have been identied. Tecement industry can utilize both the carbon as an energy source andthe inorganic fractions as an additive to the cement, and the hightemperature in the cement kilns destroys the hazardous organiccompounds. Steel mills and producers of insulation materials arealso able to utilize SPL in their production, and a number of otherinitiatives are ongoing to treat and utilize this waste. In Norway theSPL is stabilized and disposed of at a secure landll, while exploringother alternatives. At our joint venture at Albras in Brazil wedeliver all the SPL to local cement plants as an alternative fuel andraw material for their processes. Hydros objective is to eliminatelandlling of SPL within 2020.

Dross is the term for residues which are removed from the castingprocess. Te dross has a high content of aluminium, which isrecovered in specialized recycling plants. Te residue from thisrecovery process contains aluminium oxide, salts and traces ofmetal. Tis waste is now supplied as a raw material for operators who after processing have made viable products out of it.

In addition to the SPL and dross, a number of other wastes aregenerated. In many cases, strict operational controls may reducethese wastes or make them useable in the production, or in somecases they may be used in other industries.


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Te most common methods for processingprimary aluminium are extruding, rolling andcasting. Here are some of the most importantenvironmental aspects of these processes.

Extruded products emissions and measuresExtrusion logs, 4 to 7 meters in length and from 15 to 30centimeters in diameter, are the basis for extrusion. Te logs are cutinto suitable lengths and heated prior to extrusion. After extrusion,the sections are cooled and hardened, and then surface treated ifrequired.

Te actual extrusion process does not create emissions of anysignicance. Neither do the cutting, milling, drilling or machining.Surface treatment can cause emissions and discharges to air and

water (anodizing or coating).

E uents from anodizing (where the extrusions are given an extraprotective coating in an electrolytic bath), contain aluminiumcompounds. ese e uents are treated in facilities where thealuminium is precipitated as aluminium hydroxide. Tis is then

collected and sold to plants that can reclaim the aluminium. Whencoating extrusions, residues and solvents can be emitted to air ordischarged in the e uents from this process. Selecting the righttype of coating, and cleaning the emissions and discharges to airand water can prevent harm to the local environment.

Rolled products emissions and measuresRolling sheet ingots, 4 - 8 meters long and up to 60 centimetersthick, are heated and rolled into strip 2 - 6 mm thick (hot rolling). Aluminium strip can also be cast directly from molten metal in6 millimeter thicknesses (strip casting). Te strip is cooled androlled to the actual strip thicknesses (cold rolling) and heat treated. A quarter of the nished rolled strip is coated in strip coatingfacilities.

Te oil that is added during the various rolling processes to ensure

a good surface nish and to control temperatures gives rise to tracesof oil in the air emissions.

When coating rolled strip, solvents from the coatings are liberatedin the drying furnace. Tese solvents are incinerated in thermalpost-combustion, and the hot ue gases from the furnaces are

Te extrusion process

Te ingots are preheated, extrudedthrough a die and hardened before

surface treatment.

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Sheet ingot Preheating

Hot reversing mill Finishing mill Te slabs are preheated before

entering the hot reversing mill.Te sheets are rolled to the desiredthickness in the nishing mill.

Hot rolling process

used to heat the hardening furnace. Research and developmentprogrammes have been initiated to reduce the amount of solvents incoatings and use of coatings with less environmental impacts.

Cast products emissions and measuresSecondary foundry alloys are mainly used either as molten metaldirectly from the plants or in the form of ingots for castingnished products. Te most common alloy materials added toaluminium are copper, magnesium and silicon. For reasons ofquality, the grain rening substances strontium, sodium, ortitanium/titanium boride, are added in small quantities.

Te four main casting methods are sand casting, low pressuredie casting, permanent mould casting and high pressure diecasting. Generally, the raw cast product requires machinenishing and is often coated.

Melting and casting in permanent moulds does not generallyhave any adverse effect on the environment. When sand casting,organic compounds (resins) are used, which means it is necessaryto install equipment to clean emissions and discharges and to checkthat the limit values of emissions to air and water are not exceeded. When coating, the emissions are the same as described above forrolled products.


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Exposure to aluminium has been suggested to represent a health hazard in certaincircumstances. However, as documented below, the scientic evidence does not supportLife on earth has developed in an aluminium rich environment, and is therefore adaptedaluminium exposure. Te use of aluminium and aluminium compounds may in some casbe benecial from a health point of view.

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Te European Aluminium Association (EAA) has published healthfact sheets on their website, and most of the text below is based onthose.29) In addition, a report on the subject from the World HealthOrganization is referred to.30)

PATHWAYS OF ALUMINIUM TO HUMAN EXPOSURE Aluminium constitutes about 7 percent of the Earths crust. Itoccurs in various chemical forms in most rocks and soils, invegetation and is found naturally in most water supplies and as partof dust particles in the air. Aluminium is also present in all clays,making it a constituent of cooking vessels since earliest civilizations.Evolution of life and human civilization has developed in analuminium rich environment.

Food and beveragesIntake through food is the most important pathway of aluminium

to the human body, except when aluminium containing medicinesare used.

Plants absorb limited quantities from the soil. However, someplants, like the tea bush, take up larger quantities and for thisreason are called accumulator plants. Most of the intakeof aluminium from food comes from the natural content ofaluminium in fruit and vegetables.

In addition to the natural content, some food preparations containadditives containing aluminium salts. In the normal European diet,the daily aluminium intake from various foods is estimated at 3-10milligrams, depending on the type of food.

Aluminium in the form of foils, menu trays, cans and otherutensils is used extensively for the protection, storage, preservationand preparation of food and beverages. Te contribution fromfoods cooked in aluminium saucepans or from aluminium foiland beverage cans is almost negligible (normally in the order of0.1 mg/day or 1-3 percent of the normal daily intake). Te onlyexception is when highly acidic or salty foods are cooked or storedin uncoated aluminium utensils for extended time periods. Tisshould be avoided as a precautionary measure, and also to avoidtainting of the food.

Drinking water Aluminium is a natural component in surface and ground water.Most water authorities throughout the world also use aluminiumsulfate or alum as a occulating agent in treating their watersupplies.

At present there is a WHO guideline for aluminium in drinking water from treatment plants of 0.1 mg/l in a large water treatmentfacilities and 0.2 mg/l in small facilities based on practicaloptimization possibilities of the process. Aluminium in wateraccounts for less than 1 percent of the total daily aluminium intake.

Medicines, vaccines and cosmeticsTe main aluminium compound used in medicine is aluminiumhydroxide. Tis is used as an antacid in the treatment of gastriculcers and as a phosphate binder in cases of long-standing renal

failure. Alternative antacids do exist but they are not all as effective

Aluminium compounds are present in some vaccines as an adjuvanto enhance the immune response, and certain vaccines need this inorder to be effective.

Some aluminium salts are widely used in cosmetic products likedeodorants. Te aluminium salts work by forming a plug at the topof the sweat ducts and reduces the sweat to the surface of the skin.

InhalationInhalation of aluminium through air is a minor source of exposure. According to WHO, pulmonary exposure may contribute up to 0.04mg/day, which is less than 1 percent of the normal intake by food.

UPTAKE, ACCUMULATION ANDEXCRETION OF ALUMINIUMMost of the aluminium ingested through food, water, beveragesand medicine, passes through the digestive system without beingabsorbed into the body uids. Te broad picture seems to be thatthere is no clear evidence of a correlation between the amount ofaluminium ingested and uptake in normal individuals, but theremay be abnormal situations when the barriers are being bypassed orare defective. Also, some studies seem to show a correlation betwee


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high intake levels and uptake and toxic effects. JECFA (JointFAO/WHO Expert Committee on Food Additives) has thereforerecommended a Provisional olerable Weekly Intake (P WI) of2 milligram/kg body weight.

Once absorbed, aluminium is carried through the blood streamto the kidneys, where it is rapidly excreted. Tere are abnormalsituations when the barriers are being bypassed or are defective andin the event of high blood levels, bones appear to act as a sink,taking up aluminium and subsequently releasing it slowly over along period.

Patients with kidney failure face a multitude of problems, includingthe inability to excrete absorbed aluminium. Te symptomsassociated with exposure to aluminium in the dialysis uid, and/or with the long-term medical use of aluminium compounds in

this patient group are recognized. Care is taken to monitor bloodlevels of aluminium in anyone with kidney failure. Te acuteneurological disease described in the early days of renal dialysis hasno connection with Alzheimers Disease. Intravenous preparationsfor patients receiving regular intravenous treatment are todaymade without aluminium.

HEALTH EFFECTSBased on the available scientic literature, the following mainconclusions may be drawn regarding potential health effectsof exposure to aluminium, aluminium oxide and aluminiumhydroxide: Neurotoxic e ects are not expected at the levels of aluminium

to which the general public is typically exposed. ere is no evidence for a chemical-speci c brogenic e ect

due to aluminium metal powder. Aluminium oxide and aluminium hydroxide behave as

nuisance dusts under current controlled occupational exposureconditions.

A very limited sensitization potential (allergy, asthma) foraluminium metal, aluminium oxide, and aluminium hydroxidedusts on exposure by inhalation is suggested.

No evidence of e ects on fertility or development of foetus andinfants from aluminium exposure.

IARC (International Agency for Research on Cancer) hasclassied Aluminium Production as Group 1 carcinogenic. Tisis related to potential exposure to known carcinogens such asPAH. Te industry has systematically reduced the PAH exposure,and the level today is below current occupational exposure limitsTere is no evidence of carcinogenic, mutagenic or genotoxiceffects of aluminium or common aluminium compounds.

e weight of evidence suggests limited sensitization potential foraluminium metal, aluminium oxide, and aluminium hydroxidedusts on exposed skin.

It has been suggested that high intake of aluminium may bea risk factor in developing Alzheimers Disease (AD). Tecurrent weight of evidence does not support a primary role foraluminium in causing AD or other diseases involving cognitive

decline.

IMPLICATIONS FOR THE USE OF ALUMINIUM PRODUCTS Available scientic evidence does not support proposals to excludeor reduce the use of aluminium products in any of the applications where aluminium products are commonly used today. Teexceptional cases of health risks are related to patients with renalfailure, who may get aluminium into the blood stream throughdialysis. Tese cases are well known, and precautions may be takento eliminate the risk.

Some aluminium products may have signicant advantagesfor public health: Aluminium in food and beverage packaging, ensuring a safe

barrier towards bacteria and contamination Alum (aluminium sulfate) used for puri cation of drinking

water Aluminium compounds used as adjuvants in vaccines and

medicines

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8

Te production of aluminium, from bauxite mining through alumina rening, smelting anfabrication, involves various social issues, both benecial and potentially negative for emneighboring communities and for society at large. Tese effects may even extend far intosupply chains for raw materials, machinery and services.

Hydro and our partners in the aluminium industry are conscious of this, and endeavor to rnegative impacts and maximize the benets through individual and common initiatives.


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POLICY FRAMEWORK Some of the most challenging social issues are related to miningoperations. Hydro has joined the International Council on Miningand Metals (ICMM), which has developed common principlesrelated to business ethics, social responsibility, environment, healthand safety. Hydros Corporate Social Responsibility (CSR) policiesand guidelines are based on these principles, aiming at maximizingthe benets and minimizing negative impacts on the society.

Te CSR policies focus on four areas: Integrity and anti-corruption, Community and stakeholder engagement, Human rights Supply chain and product stewardship.

In addition to the ICMM framework, Hydros policies and guidelines

are also based on internationally accepted standards developed bygovernmental and non-governmental organizations, such as: e Universal Declaration of Human Rights UN Global Compact Transparency International Amnesty International International Finance Corporations (IFC) Equator

Principles and performance standards ILOs 8 core conventions

Implementation of the policies and guidelines is subject toreporting and auditing.

IMPACTS ON NATIONAL ANDLOCAL ECONOMIESHydro had 22,655 permanent employees at the end of 2011.In addition, the company had 1,368 temporary employees, andcontractor employees represented about 8,900 full-time equivalents.Te companys highest number of employees is in Brazil, followedby Germany, Norway and the U.S.31) Hydros organization in40 countries represents a great diversity in education, experience,gender, age and cultural background.

Trough its activities Hydro contributes directly and indirectly in asignicant way to local and national economies where we operate.

otal payroll in 2011 was NOK 8,900 million (EUR 1.2 billion,USD 1.5 billion) and the same year Hydro paid about NOK 1,900million (EUR 250 million, USD 326 million) in income taxes.

Studies for primary aluminium plants in various countriesshow that our activities have even higher indirect impacts frominvestments and from operations. Hydros annual investments,excluding the Vale acquisition, has over the last years been inthe range of NOK 3-6 billion (Euro 0.4-0.8 billion, USD 0.5-1billion). Operations rely to a large degree on input of raw material,energy and other goods and services from external suppliers.Estimates show that through taxes, production and consumptioneffects, one direct employee creates external employment equivalento between two and ve jobs. Investments have the same kind ofripple effects.32)

COMMUNITY ISSUESIn most local communities, Hydros industrial activities are welcomed as a source of employment, income, tax generation andgeneral activity in the community. As a secondary consequence ofthe activity, the communities can be better equipped for health careservices, education and cultural activities. However, some groupsmay be adversely affected by the activities, such as involuntaryresettlement, loss of land for harvesting and impacts on traditional ways of life. Te presence of a production plant or mine may alsoenlarge the economic gaps between groups of people, and generatesocial tensions.

Hydro has a long tradition of stakeholder dialogue in thecommunities where we operate. Trough our membership inICMM we are also committed to local stakeholder dialogue andengagement to discuss and respond to such issues and conicts.Tis includes maintaining interaction with affected parties,including minorities and other marginalized groups. We willcontribute to community development in collaboration with hostcommunities and encourage partnerships with governments andnon-governmental organizations to ensure that community servicesare well designed and effectively delivered. When possible, we willenhance social and economic development to address poverty.


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HUMAN RIGHTSIn a number of countries, human rights are not fullyrespected, including: Freedom of expression Freedom of association and collective bargaining Labor standards Forced labor Child labor Minority rights Indigenous people Use of security forces.

Almost all of our production sites in Europe, Australia, Braziland Argentina representing 89 percent of our employees areunionized. About 80 percent of our employees in Norway belong tounions, and a large proportion of employees in Germany and Brazil

are also union members25). Contact between union representativesacross borders is an important part of the integration process forour new activities in Brazil. We build on a strong relationshipbetween union representatives and management that has beendeveloped in Hydro over decades.

In countries where the right to form trade unions is restricted, likein Qatar and China, we try to nd alternative forums to upholdthe rights of employees to inuence their work situation. InMarch 2011, Hydro signed an international frame agreement withfour unions, aiming to secure the development of good workingrelations in Hydros worldwide operations. In January 2012, wesigned a new corporate agreement with the main unions regardingthe European Works Council.

BUSINESS ETHICS AND INTEGRITY Corruption is increasingly seen as a major political issue not justlimited to its legal and ethical implications. Te Hydro IntegrityProgram Handbook and the Competition Compliance Manualhave been developed to guide and support staff in handling issuesrelated to anti-corruption and competition issues also related tobusiness relations.

Employees may report breaches or perceived breaches of Hydrosrequirements through the Alert Line served by an external company where all permanent and temporary employees can report theirconcerns at any time and in their own language through toll-freephone numbers or the Internet Te Alert Line can also be accessedby external stakeholders.

In 2011, as in previous years, no instances of corruption were

reported in Hydro.

THE SUPPLY CHAINHydro procures energy, materials and services from more than18,000 suppliers to our global operations. Individual business unitsare responsible for implementing Hydros policies towards supplierand other business relations. Systems are required to pre-qualifynew suppliers and to periodically assess active suppliers. Our policyis that contracts with a value of more than USD 3 million shallinclude social and environmental requirements in the contract itselfor in a separate declaration signed by the supplier.

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9 ,

RESEARCH AND EDUCATION

Hydros research is aimed at improving all stages in the aluminium value chain. Te procare constantly being made more efficient, and the environmental effects reduced. Our pr

are regularly being adapted to new and more demanding application areas. Tis is essentin order to safeguard the companys future competitive abilities in a world that is continmaking more stringent demands to industry with respect to both product quality, price aenvironmental performance.

Reduction technology One of the main research areas is improved cell technology inorder to produce more aluminium from each cell (higher amperageand current density), while reducing the energy demand andthe emissions per metric ton produced. est cells of the HAL

4e technology have been in operation at the rdal ReferenceCenter since 2008, and are ready for full scale industrialization. Inparallel with these tests, the research is aiming at further emissionreductions as well as possibilities for energy recovery and utilization.

An aluminium smelter emits signicant amounts of CO2, but farless than e.g. a coal or gas power plant. Nevertheless, the industryshould be prepared if carbon capture should become a requirementto this industry. A challenge is that the pot gas is too dilute tomake CO2 scrubbing cost effective. Hydro is therefore studyingpossibilities to redesign the pot hoods to capture the pot gas without the dilution air which is sucked into the cell. Tis wouldalso reduce the size of the gas treatment systems and make energyrecovery more viable.

Casting technology In a primary smelter, the cast house only uses about 2 percent ofthe total energy, since the metal comes hot and liquid from thepotline. In a remelter, the energy demand is about 5 percent of theenergy required in the potline. Tese percentage gures may seemsmall in an industry context, but the saving potential in a large casthouse may be similar to the yearly energy demand in 4,000 5,000homes. Research is therefore carried out to make more energyefficient furnaces, reduce the loss of metal in dross and increasingthroughput capacity.33)

Recycling Increased return of post-consumer metal scrap in the future willcreate some challenges for the aluminium industry, and especiallyto the recycling industry. One of these challenges is to producealloys of predictable quality from non-uniform raw materials

when the ratio of recycled metal to primary metal increases, thushaving less pure, primary metal available to dilute impurities.Other challenges are related to reducing metal loss in the meltingprocess, recuperating energy from organic coating materials,avoiding harmful emissions and general streamlining of the wholeproduction cycle. All these aspects are part of a research projectundertaken by Hydro, N NU and Sintef.34) In addition, there arestudies to develop new alloys which are easier to recycle.

Special issues related to hot climatesOperating an aluminium smelter in a climate where ambienttemperatures can reach more than 50 degrees has many challenges,both with respect to the work force, equipment, productionperformance and environment. Trough the joint venture companyQatalum, Hydro has contributed to the establishment of a Hydro Aluminium echnology Centre (H CQ) at Qatar Science and

echnology Park (QS P), part of Qatar Foundation (QF) in Doha,Qatar. Te centre collaborates closely with Qatalum. Among theprograms and studies are the following: Heat stress monitoring and management E ect of climate on emission pro le Emission monitoring techniques Regional waste management strategies


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Te climate in the Gulf region and the rapidly expanding buildingsector also creates business opportunities for green buildings.Contrary to buildings in the polar regions, the main energy demandis related to cooling. Hydro Building Systems (HBS) has thereforelaunched a number of initiatives to develop innovative building

solutions partly in collaboration with the H CQ at QS P. Tisincludes amongst others: Mapping of energy ows (cooling, ventilation, lighting etc.) Use of photo-voltaic installations to produce electricity Hot water collectors Surface treatment necessary to withstand the climatic stresses on

the materials (e.g. UV light, dust, heat) while maintaining goodperformance and minimizing maintenance.

Te H CQ at QS P is also involved in a number of otherprograms related to technology development, competence building,education etc.

Environmental research in BrazilHydro has entered an agreement with the University in Oslo toestablish an R&D program related to biodiversity issues in the rainforest areas in Brazil. Te intention is to bring forward scienticsupport for the rehabilitation programs around the bauxitemines. Te program will also involve collaboration with localscientic institutes. Hydro has also established links with otherbauxite mining companies with a view to improve the quality ofreforestation programs.

INTERNATIONAL COOPERATION While there is strong competition between aluminium companies world wide, the industry has realized that cooperation within the

elds of environment and corporate responsibility is necessary tomeet the challenges ahead. Te main bodies of cooperation are: International Aluminium Institute (IAI) European Aluminium Association (EAA) International Council on Mining and Metals (ICMM)

Many of the programs and initiatives undertaken by theseorganizations have already been mentioned, and Hydro is an activedriving force in many of these. Hydro personnel have also takenprominent positions in the organizations and their many sub-committees.


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Hydro extracts and renes naturalresources into products that are animportant part of everyday life for moreand more people. Nature and what itprovides to us form the foundation ofeverything we do. Tis is why we cannotbe indifferent to how our production andour products affect the environment.

Our ambition is to be an industry frontrunner in: Reducing our environmental footprint through improving

our performance in all business areas. We will do thisthrough innovation in technology as well as through specicimprovement programs

Helping customers reduce to their footprint. We willcontribute to this through increased recycling of aluminiumas well as engagement with and support to customers. Webelieve that through partnerships we can together nd goodbusiness solutions supporting our common ambition of alsoreducing the footprint throughout the value chain

Improving alumininum as a material. We believe thatthrough product and technology innovation we will improvethe functional use of aluminium. We also strongly believethat active engagement with stakeholders both directly andvia associations will support the long term sustainability ofaluminium in various applications

ENERGY AND CLIMATE CHANGEClimate change is one of the most pressing issues facing mankind.Te energy intensity of primary aluminium production leads tosignicant emissions of greenhouse gases. Tis gives Hydro a hugeresponsibility for developing proper solutions.

Our objective is to develop our business, products andsolutions in a way that will support a reduction in globalgreenhouse gas emissions in a life cycle perspective.

We are committed to do this by Generating more green energy. About two-thirds of the

electricity used in our primary production is already fromrenewable sources, and we intend to use this as a platform fordeveloping more renewable sources around the world.

Produce more and emit less. Our next generation technologiesare already moving us towards this goal, by increasing productionoutput while reducing energy consumption.


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Develop products and solutions that save energy. Lighter carsand packaging products, as well as intelligent aluminium facadesreduces energy consumption and thus greenhouse gas emissions.Further innovations and marketing of such products andsolutions are key elements of our business strategy

Recycle more aluminium. Recycling of aluminium requires only5 per cent of the energy used for primary production, thus savingboth energy and greenhouse gas emissions.

EMISSIONSEmissions from our operations are in principle loss of resources.High emissions from operations to the surrounding environmentcould cause unwanted impacts.

Our objective is that we want to be an industry frontrunner

Hydro has for decades been in the forefront when it comes torunning efficient operations with low emissions. Our primarysmelters have been benchmark within the industry when it comes tolow emissions of uoride, SO2 and dust. Even in the narrow valleys atthe West coast of Norway we have demonstrated that we can operatein harmony with the local communities and the environment.

WASTE AND WATER Resource scarcity makes it necessary to have efficient productionprocesses and to recycle/reuse waste and products after its end oflife. In addition water is a scarce commodity in many areas of the world. We need to minimize the water footprint in such waterstre

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