Environmental report 2005 - Cementos Molins

2005

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Environmental report

2005

EN


2005

STATEMENT BY THE GENERAL MANAGER 7

1 OUR COMPANY 11

1.1 History of Cementos Molins 13

1.2 Cementos Molins Industrial, S.A. today 14

1.3 Our processes, products and services 16

1.4 Main facts and figures of the business 18

1.5 Organisation of Cementos Molins Industrial, S.A. 21

2 VISION AND STRATEGY 25

2.1 Contribution to sustainable development 27

2.2 Company interests, future challenges 29

2.3 Management at Cementos Molins Industrial, S.A. 30

2.4 Cementos Molins Industrial, S.A. in the community 35

2.5 Commitment to the Interest Groups 37

2.6 Scope of the report 38

3 ENVIROMENTAL PERFORMANCE 41

3.1 Natural Resources 43

3.1.1 Raw materials 43

3.1.2 Auxiliary materials 45

3.2 Energy 47

3.3 Water consumption 49

3.4 Emissions 50

3.5 Waste 56

3.6 Disposal 58

3.7 Biodiversity 60

3.8 Environmental emergencies 62

3.9 Transportation of dangerous goods 64

3.10 Environmental investments 64

4 GRI INDEX 67

VALIDATION OF THE REPORT 77

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Aware of the importance of the environment both for society and for the future of our activity, we in the company’s management want to strengthen our commitment to sustainable development and have therefore included care of the environment in which we operate as one of our priorities

In 2002, we formalised our actions focused on the continuous

improvement of our environmental behaviour through the

implementation and certification of an Environmental Management

system in line with the ISO 14001 Regulation. This management tool

enables us to apply the pollution prevention concept to all our decisions

on a daily basis, extending the principles and aims of improvement to

the whole organisation, both to our personnel and subcontractors,

promoting for this environmental training and awareness.

Depending on the specific conditions of each case, we identify and

implement environmental protection and prevention measures within

our reach at every stage of the business to forecast, avoid and minimise

pollution. In all our activities, we strive to optimise the use of natural

resources, water and energy, and, as far as possible, reduce the generation

of waste and emissions into the atmosphere.

In fact, one of the main challenges in the cement sector is precisely

the reduction of atmospheric emissions. To this effect, we at Cementos

Molins Industrial, S.A. we have made considerable advances in the

reduction of particle emissions, both along the production process and in

quarrying, achieving significant improvements and setting ourselves the

target of reducing greenhouse-effect gas emissions over the coming years.

However, in cases where our activities affect the physical environment, for

example at our quarries, we are working to return them to their original

condition through environmental restoration plans. We should stress

Cementos Molins Industrial, S.A’s. desire to play a role in improving these

restoration techniques and the specific environmental problems that may

arise due to our activities, collaborating with the Administration and high-

profile organisations in environmental studies and research.

STATEMENT BY THE GENERAL MANAGER

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In addition to these principles and our commitment to comply with the

applicable legislation, we have decided to draft this initial environmental

report on Cementos Molins Industrial, S.A.. In the Report, and in line with

the principles of the “Global Reporting Initiative” (GRI) Guide, we have

collected the relevant environmental information to enable us to expand

the dialogue framework that we maintain with our interested parties.

From now on, we will update and publish this report every two years,

offering in-depth and exact information in accordance with the principle

of transparency on the evolution of our environmental behaviour and the

fulfilment of our commitments.

Ángel Cercós CasaléManaging Director

Cementos Molins Industrial, S.A.

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Cementos Molins Industrial, S.A., is a subsidiary

of Cementos Molins Group a company devoted to

the manufacture and commercialisation of cement,

both calcium aluminate and Portland cement. From our

factory, located in Sant Vicenç dels Horts (Barcelona),

and the three quarries that we operate, we offer high

quality products and flexible service adapted to the

needs of our customers.

To make the organisation’s contribution to sustainability

and the environment more understandable, the context

of our organisation needs to be known. Therefore,

the following offers objective, provable and detailed

information about Cementos Molins Industrial, S.A.,

from its origins to the present day, including the

evolution of the environmental behaviour indicators

during 2003, 2004 and 2005.

1 OUR COMPANY

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1 OUR COMPANY

Since its foundation in 1928 by Joan Molins Parera and Joaquim Molins

Figueres, Cementos Molins, S.A. has followed an industrial line devoted to

the production and sale of cement and other building materials, and has

contributed to the quality of human and social life of everyone who, one

way or another, has been associated with the company.

Cementos Molins, S.A. began its activities at the Sant Vicenç dels Horts

factory in 1929, producing a new product in Spain: aluminous cement

(now known as calcium aluminate cement). Initially with one

reverberatory kiln and a second added in 1930, this product began to be

sold throughout Spain, with the 1930’s seeing it exported to countries

such as Morocco, Turkey and Argentina. Fourteen years later, in 1943,

Cementos Molins switched to the manufacture of Portland cement,

putting kiln number 1 into operation, achieving an initial production of 50

tons of clinker a day.

The 1980’s saw the diversification of both activities – concrete, mortars,

aggregates and precasts – and the company’s geographical location. In this

way, the company began operations in 1980 in Argentina, in 1988 in

Mexico, in 1991 in a factory in Uruguay and finally began the project to

develop a factory in Bangladesh in 2004, sharing ownership and

management in all these countries with other partners.

In response to this growth, Cementos Molins S.A. underwent in-depth

restructuring in 1997 with the creation of the Cementos Molins

Industrial, S.A. company, owner of the Sant Vicenç dels Horts factory, and

whose activities are based on the production and commercialisation of

1.1HISTORY OF CEMENTOS

MOLINS

View of factory from railway track –

Year 1930

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Portland cement and calcium aluminate cement in Spain, and which is

the owner of the Sant Vicenç dels Horts factory. Consequently, the

industrial and operating area of the Cementos Molins, S.A. holding

company is separate from the company’s other subsidiaries, both in Spain

(Promsa, devoted to the manufacture and commercialisation of concrete,

mortars and aggregates, Precon, whose activities revolve around the

manufacture of precasts, and Propamsa, which manufactures adhesive

cement and monolayers) and abroad.

At present, and through continuous investment to expand and improve

facilities, the Sant Vicenç dels Horts factory has achieved an annual

manufacturing capacity of 1,600,000 tons of Portland cement and 40,000

tons of calcium aluminate cement. For this, we have three rotary kilns

for the manufacture of Portland cement and two kilns for calcium

aluminate cement.

In addition, and as part of the cement manufacturing business, at

Cementos Molins Industrial, S.A., we operate 3 quarries located in

municipalities close to the factory:

CEMENTOS MOLINS

INDUSTRIAL, S.A. TODAY

1.2

Present day view of factory – Year 2006

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1 OUR COMPANY

The Turó Roig quarry, where

sandstone is extracted, is located

in the municipality of Pallejà, 2 km

from the factory.

The La Fou quarry, located in

Vallirana, 9 km from the factory,

where limestone is extracted.

The Ana clay quarry located very

close to the factory facilities, in the

municipality of La Palma.

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Portland Cement

The cement manufacturing process starts with obtaining the raw

materials. At Cementos Molins Industrial, S.A., we receive a significant

part of these materials from the operations at our three quarries,

obtaining sandstone, clay and limestone.

Once at the factory, these raw materials are crushed to reduce their

size and make internal transport easier, and they are taken separately

to the pre-homogenisation warehouses where they are mixed to ensure

maximum evenness. Subsequently, the different components are dosed

and milled in the mills until they become fines which constitute what we

will call crudes.

The next step is to place the crude into the rotary kilns where it is

heated and melted at a temperature of 1,450 ºC, producing clinker

which looks like small dark grey balls.

The clinker is then milled in the cement mills where the gypsum and

other additives are added to create the final product, commercialised by

Cementos Molins Industrial, S.A. under the Dragón trademark®.This

product is stored in silos until it is packaged (as the case may be) and

shipped to the customer.

Calcium aluminate cement

Apart from the Portland cement manufacturing process, we also have a

line for the manufacture of calcium aluminate cement (also known

as aluminous cement), commercialised with the Electroland®

and Aluminite® brands.

OUR PROCESSES, PRODUCTS

AND SERVICES

1.3

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1 OUR COMPANY

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This type of cement is obtained by melting the limestone and bauxite

in reverberatory kilns without it needing to be pulverised to obtain the

crude, as in the process for obtaining Portland clinker. Consequently,

the process starts with the raw materials being dosed directly into the

reverberatory kilns (kilns 7 and 8), where fusion of the materials occurs

and the molten clinker is formed, reaching temperatures of up to

1,500 ºC.

The next step is to mill the molten clinker in a horizontal mill with balls,

producing the calcium aluminate cement with the correct quality and

fineness. The cement is taken to the storage silos for shipment and is

loaded directly on to lorries to be sold in bulk, or else is passed through

a bagging machine to be shipped in bags.

Technical advice

We understand that our work is more than the manufacture and

commercialisation of cement, which is why we offer our customers a

range of technical support services. Our Technical Advice Department

provides information about all our products and how to get the best

from them in each application. We are also aware that society’s needs

change, which is why Cementos Molins Industrial, S.A. is committed to

Research and Development, an activity that it carries out jointly with

other group companies.

Raw material extraction

Quarry restoration

Crushing of raw material

Transport

Pre-homogenization and mixture

Raw mill

Filter

Interchanger

Kiln

Cooler

Clinker storage

Cement mill

Shipment

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In 2005, sales by Cementos Molins Industrial, S.A. exceeded 1,630,000

tons of cement, compared with the 1,588,000 tons of the previous year,

which meant a rise of nearly 3%.

Our sales are primarily aimed at the Spanish market, where more than

97% of the Portland cement manufactured by Cementos Molins

Industrial, S.A. is sold, with our products being most present in the

Catalan market.

Regarding exports, sales of our products are mainly aimed at European

countries (except Eastern Europe), with sales of both calcium aluminate

cement and Portland cement having increased in recent years.

Our customers are primarily concrete manufacturers and companies in

the building industry. Through them, we make a great contribution to the

development of society, supplying cements for homes and infrastructures.

As an example, we can quote some of the most significant works on

which we have recently collaborated, such as the Port of Badalona, a

number of sections of the Madrid – Barcelona AVE high speed train, and

the construction of the new Terminal at Barcelona Airport.

Our cements are sold both in bulk and packed in small formats (25 kg

and 35 kg sacks) and big bags of 1.5 tonnes through a network of

distribution warehouses.

MAIN FACTS AND FIGURES

OF THE BUSINESS

1.4

Sales of cement (tons)

Calcium aluminate (domestic)

Calcium aluminate (export)

Portland cement (domestic)

Portland cement (export)

Total

2003

11,849

21,944

1,496,931

3,716

1,534,440

2004

12,476

22,889

1,547,272

5,571

1,588,208

2005

13,468

30,241

1,576,731

9,781

1,630,221

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1 OUR COMPANY

1 Pillars of the Madrid-Barcelona High

Speed Train “AVE” in the Sant Boi

de Llobregat section

2 Construction of bridge for the Madrid-

Barcelona “AVE”– Baix Llobregat

3 Viaduct over River Llobregat for

the Madrid-Barcelona “AVE”

4 New terminal at Barcelona airport, El Prat,

El Prat de Barcelona

5 Construction of Badalona Port

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Production (tons)

Portland clinker

Calcium aluminate clinker

Portland cement

Calcium aluminate cement

Total clinker

Total cement

2003

1,343,680

40,962

1,491,117

33,495

1,384,642

1,524,612

2004

1,316,012

37,832

1,552,844

35,690

1,353,844

1,588,534

2005

1,285,145

35,009

1,590,889

42,414

1,320,154

1,633,303

EBITDA (thousands of euros)

2003

36,444

2004

40,721

2005

29,240

Workforce (number of employees)

2003

223

2004

222

2005

230

Production (tons)

2003

2004

2005

Cement 1,524,612

Aggregates 767,959

Cement 1,588,534

Aggregates 574,679

Cement 1,633,303

Aggregates 626,378

Sales (thousands of euros)

2003

2004

2005

Cement 94,526

Aggregates 2,027

Cement 102,356

Aggregates 1,575

Cement 110,800

Aggregates 1,989

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1 OUR COMPANY

As a company belonging 100% to Cementos Molins, S.A., Cementos

Molins Industrial, S.A. has the following organisational structure:

The General Manager holds the maximum authority and responsibility in

Cementos Molins Industrial, S.A. for applying the company’s policy in the

areas of the environment, quality, technical, service, economic and staff.

Specifically in terms of environmental management, he is the ultimate

responsible for the management system, defining the policy, approving

the objectives and procedures and checking the organisation’s

performance in the review process by the management.

ORGANISATION

OF CEMENTOS MOLINS

INDUSTRIAL, SA

1.5

General Manager

Sales Director Industrial Director

Portland cementManager

Aluminate C.and Shipping

Manager

FactoryDirector

MaintenanceManager

Quarry Manager

Production Manager

Quality Director

Environmental Manager

Management Systems Manager

SafetyManager

Quality Manager

Purchasing Manager

AdministrationManager

Engineering Director

Project Manager

Line 6 Project Manager

PersonnelManager

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In terms of environmental management, the General Manager has the

collaboration of the various departments for the fulfilment of his duties

and the assistance of managers and bodies with specific competencies.

For this, an Environmental Committee has been created at Cementos

Molins Industrial, S.A., which meets quarterly and whose main functions

include the review of the Environmental Management System

documentation, the evaluation of the implementation of the system,

monitoring the objectives and taking part in system reviews. The

following is the structure of the Environmental Committee:

Line 6 Project Management

General Management

Engineering Management

Factory Management

Sales Management

Industrial Management

Environment Manager

Human Resources Manager

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1 OUR COMPANY

Part of the Environmental Committee, the following are the most

important positions in the environmental management of the

organisation:

■ The Industrial Manager is responsible for supporting the General

Management and for collaborating with their advice to the Factory

and Quality Management teams

■ The Factory Manager is the operational manager, planning and

monitoring the human, financial and technical resources necessary

for the operation of the factory. His/her main responsibilities in

environmental management include drafting and distributing the

documents defined in the Environmental Management System,

maintaining a framework of communication with the interested

parties and ensuring that all activities comply with legislation

■ The Line 6 Project Manager, whose duties include considering

the options for improving the Line 6 kiln emissions (e.g. the reduction

of NOx)

■ The Engineer Management, who decides and proposes environmental

investments (e.g. the projects related to the replacement of burners

in the kilns)

■ Among other responsibilities defined in the system, the Quality

Manager is responsible for informing the Environmental Committee

beforehand, or the Factory Manager and the Environmental Affairs

Manager, of any proposed action, acquisition or changes of equipment,

products, facilities and services, in their area of responsibility, for their

formal approval

■ The Environmental Manager reports hierarchically to the Quality

Director and is the senior management’s representative in

the management of all matters referring to the environment. His/her

fundamental role in environmental affairs management is coordinating

the system, acting as liaison between the management teams, the

various managers and the departments. In a similar way, his/her

specific responsibilities are defined in the Environmental

Management System

2 VISION AND STRATEGY

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Every day, from the start of our operations, we at

Cementos Molins Industrial, S.A. are always serving

society, striving for excellence and perfection parallel

to technological progress and the demands of today.

All this, with one aim and one obsession: people’s

quality of life and well-being.

Therefore, our aim is to create satisfaction every

day, and one of our most fulfilling satisfactions is

to help make numerous dreams and countless

projects become a reality. Our aim is, at all times,

to offer the best we can to efficiently meet the

requirements of the professionals who place their

trust in us, maintaining the complete satisfaction of

our customers.

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We understand that our company must be customer-oriented. Therefore,

we adapt our work and offer flexible solutions. In fact, the service that

we offer is based on continuous assessment by our technical personnel

throughout the whole purchasing and after-sales process.

However, our responsibility to society goes beyond our products and

services. Since nature is our most valuable supplier, preserving it and

respecting it, protecting the surroundings and the environment is one of

our most important priorities. Taking on this unavoidable commitment

means using advanced environmental protection systems and

procedures.

The continuity of our activities depends on the relations with our

interested parties, essentially customers, shareholders, Public

Administrations and neighbours.

From the start of operations, we at

Cementos Molins Industrial, S.A. have been

committed to the personal development,

health and safety of our collaborators. We

contribute to sustainable development to

satisfy customers, so generating financial

profit, while at the same time protecting the

environment and our employees.

We have adopted a series of environmental

management principles which we apply in

conducting our daily activities.

These principles ensure that we tackle each

new project, minimising the impact that we

produce, and allow us to continue in our

permanent search for solutions to problems

that may arise from our activities. We use the

best available and financially viable practices

and technologies to forecast, avoid and

minimise the changes to the environment in

the different phases of the business.

CONTRIBUTION TO

SUSTAINABLE DEVELOPMENT

2.1

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We apply these principles of preservation to the activities carried out

at our facilities, by both Cementos Molins Industrial, S.A. personnel and

subcontractors. Consequently, we evaluate and select subcontractors

and suppliers in a way which is consistent with these principles.

Given that our activities affect different interested parties, including

customers, communities close to the centres where we operate and

our employees, we feel that it is necessary to maintain a framework

of communication on the most significant environmental aspects. To this

effect, we apply the criterion of transparency and offer relevant

environmental information, this report being one of its vehicles.

Another prioritary aim is to protect our employees while carrying out

their tasks, avoiding work-related accidents and professional illnesses,

which is why we have developed a safety policy that is used in work

procedures. The management has provided the means required in each

case to reduce risks at work and it is the responsibility of each employee

to respect the Safety Regulations and adopt the appropriate safety

measures so that they complement the established regulations, if needed.

Promotion of training and awareness in terms of the environment and

safety, of both our personnel and the company’s collaborators, is essential

for Cementos Molins Industrial, S.A.. This enables us to progress in the

development of our business project, observing our principles of action,

and to achieve the aims that we set ourselves.

Besides this, since July 2005, Cementos Molins Industrial, S.A. has been

part as a participating member of the “Cement Sustainable Initiative”

sponsored by the World Business Council for Sustainable Development

(WBCSD).

Finally, we are aware of the role that Cementos Molins Industrial, S.A.

plays in society. We participate actively in the communities where we

operate, creating jobs and carrying out collaboration initiatives such as

street surfacing, financial contributions to associations, support for local

magazines, etc.

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2.2

Project for the start-up of the new Line 6

Cementos Molins Industrial, S.A. has taken the decision to significantly reduce its impact on the

environment maintaining the present production capacity of 1,600,000 tons of Portland cement. For this, it

has developed a project for the start-up of a new production line with its respective kiln (No. 6), applying

the best technologies available.

The project consists of three fundamental phases:

■ An initial phase which covers obtaining permits and licences and the construction of the new line, the

duration of which is estimated in approximately 3 years

■ The second phase, the start-up, will begin in 2009. The first 18 months of this phase are a guarantee

to make the necessary adjustments in the new kiln and to ensure its operation. Subsequently, and

for three years, Kiln 3 will remain in operation alongside Kiln 6 in order to ensure the plant’s

production capacity

■ Finally, the third phase will be devoted to dismantling the old kilns numbers 3, 4 and 5, with completion

being estimated for 2013

COMPANY INTERESTS, FUTURE

CHALLENGES

The extraordinary increase in the demand for building materials, and

specifically for cement, in recent years leads us to predict that in the

medium term the trend will be reversed. The foreseeable decrease in

activity, combined with increasing environmental requirements, has led

the Spanish cement industry to reconsider its strategy in light of these

new challenges.

Unlike other companies, perhaps, Cementos Molins Industrial, S.A. is

strongly committed to continuity in the present location. This

commitment highlights the need to improve the existing facilities, starting

up into operation environmentally more efficient equipment in terms of

environmental respect. For this reason, we are working on the

development of a new line (Kiln No. 6) for manufacturing Portland

cement, which will replace the present 3 lines and which will incorporate

the best current technologies in terms of the quality of the product and

respect for the environment.


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Cementos Molins Industrial, S.A. has developed a management model

based on structured systems, which provide us with the necessary work

tools to fulfil our commitments and encourage us to make continuous

improvements to our results.

Within this management framework, in 1998 Cementos Molins Industrial,

S.A. implemented a Quality Management System, currently certified in

The new Line 6 will involve an investment cost of 100 million euros and the environmental improvements

that are most probably going to be achieved include the reduction of atmospheric emissions, noise, energy

and water consumption and waste generation.

MANAGEMENT AT CEMENTOS

MOLINS INDUSTRIAL, S.A.

2.3

Environmental improvements

Environmental vector

Emissions into the atmosphere

Water consumption

Energy consumption

Waste generation

Improvement actions

New complete kiln line

Replacement of current kiln cooling

systems with water by air cooling

The new facilities are more

energy-efficient

The number of kilns to be lit

is reduced

The number of facilities and

equipment in operation is reduced

and the length of kiln is less than

the rest

Expected improvement

Reduction of 57% in the emission

of particles, 66% of NOx and 82%

of SO2

Decrease of 46,000 m3 of water

with the operation of kilns 6 and 3

of approximately 15%

Reduction of electricity

consumption by 8% and a

reduction of 11% in cok

Reduction of 50% of the

consumption of fuel oil

Reduction of 5% in the generation

of special waste and further 5% of

non-special waste

Work will also be done on the harmonious urban planning adaptation of the facilities as a whole in

relation to the setting.

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accordance with the ISO 9001:2000 regulation, which helps us focus our

processes, products and services towards meeting the needs of our

customers. We also have a management system for preventing risks at

work, which allows us to identify systematically the risks derived from

our activities and establish procedures to control them, thus avoiding

professional accidents and illnesses.

Advancing in improvements to our management and formalising our

commitment to sustainable development, in May 2002 we certified our

Environmental Management System in accordance with ISO 14001:2004.

In the environmental variable, this system has complemented quality

management, allowing us to use the principle of continuous

improvement throughout the organisation. Similarly, through our

environmental policy, we apply the principle of prevention to our

activities, as we feel that the best system for managing any negative

impact on the environment is to prevent it from happening.


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E N V I R O N

PRINCIPLES ENVIRONMENTAL MANAGEMENT

Cementos Molins Industrial, S.A. (CMISA), as a manufacturer and supplier of cement, states that the preservation of the environment is one of its priorities - because of the impact it has on employees, customers and the community in which it operates. Consequently, the company adopts the following principles of environmental management:

Minimise environmental impactReduce the negative environmental impact that may be caused by CMISA’s activities, installations, products and services, taking account of new and planned developments as well as new or modified activities, products and services

Promote training and environmental awarenessTrain all people who are involved in CMISA’s environmental management and make all staff aware of their individual and collective responsibilities when observing the principles and achieving objectives.

Environmental collaborationCollaborate with public administrators and private bodies:

- in looking for solutions to environmental problems that may arise from CMISA’s activities, installations, products and services

- offering itself as a provider of environmental services to the community, making available its installations and processes in order to solve different specific environmental problems

From the Managing Director

The main activity of Cementos Molins Industrial, S.A. is the production and marketing of cement. The company makes an effective contribution to society by bringing our products to the market, where they are used in the construction industry.

On the other hand, recognising that the overall activity of human behaviour has an influence on the environment, it is important that we work actively to reduce the environmental impact generated by our products, activities, installations and services.

Therefore, we are pleased to present the attached text, which reflects on the principles of environmental management through which we aim to manage our activities together with our environmental commitment, which we are publishing so that it can be better known and understood.

Kind regards

Ángel Cercós CasaléManaging Director

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Communication and information about the environmentPromote transparent communication of environmental matters - both internally and externally.

Subcontractors and suppliersWhere relevant, assess and select subcontractors and suppliers taking account of their fulfilment of coherent environmental principles and those adopted by CMISA.

Continual improvementEnsure continual improvement, using an Environmental Management System (EMS) that includes the establishment of objectives and targets, periodic audits and the appropriate review of the system itself.

Prevention of contaminationUse the necessary, available and appropriate means to avoid and prevent the contamination of the environment in CMISA’s different business processes - from engineering in the installations to delivery of the product.

Observing laws and legal regulationsObserved applicable environmental legislation in all CMISA’s activities, installations, products and services, and adopt internal regulations were no applicable legislation exists.

CMISA will assign the necessary human, technical and financial resources to ensure the observance and fulfilment of these Environmental Management principles.

M E N T A L P O L I C YMANAGEMENT COMMITMENT

THE MANAGEMENT OF CEMENTOS

MOLINS INDUSTRIAL, S.A. COMMITS TO

PROTECT THE ENVIRONMENT, HEALTH

AND SAFETY OF ITS EMPLOYEES AND

CUSTOMERS WITHIN THE COMMUNITY

WHERE IT DEVELOPS ITS ACTIVITY AND

THE PUBLIC IN GENERAL. IT DECLARES

THAT, THROUGH THE ADOPTION

OF SUITABLE ENVIRONMENTAL

PRACTICES IN ALL TASKS, IT WILL

REDUCE OR ELIMINATE THE RISKS AND

ENVIRONMENTAL IMPACTS ASSOCIATED

WITH ITS PROCESSES, INSTALLATIONS

AND SERVICES. IN ADDITION, IT MAY

COLLABORATE IN SOLVING DIFFERENT

SPECIFIC ENVIRONMENTAL PROBLEMS.


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With this aim in mind, we need to identify which of our activities have a

positive or adverse effect on the environment. Once identified, we will

systematically and objectively assess the impacts that they create, which

enables us to define control and monitoring systems and establish

priorities when executing action plans to improve our environmental

behaviour. As a result of this analysis, each year we draw up a specific,

measurable action plan that contains the expected investments geared

towards continuous improvement.

Participation of the entire staff, both the company’s own and

subcontracted personnel, in environmental management is decisive to

ensure the correct management of all aspects. Consequently, the

organisation identifies the training needs in terms of the environment,

drawing up an annual training plan and overseeing its completion.

The Environmental Management System has enabled us to develop tools

to manage environmental communications between the interested

parties. Through this communication system, both our personnel and

other organisations external to Cementos Molins Industrial, S.A. can take

part in our management system and in the improvement of our activities

and facilities.

In 2005, 598,277 euros were invested to achieve the following

improvement objectives:

■ the restoration and improvements to the facilities’ integration

into the landscape

■ improved segregation of waste for its correct management and

soil protection

■ reduced atmospheric emission, reduced contamination in

disposal,

■ and reduced noise produced at the facilities

During the 2003 to 2005 period, awareness and job-specific

training courses were given to provide all personnel with the

knowledge they need to carry out their responsibilities. This

training covered the following aspects of environmental

management: waste management, emergency plans, procedures

that apply to each section and applicable legal requirements.

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As part of the continuous improvement cycle, we at Cementos Molins

Industrial, S.A. evaluate environmental management on a frequent basis,

identifying areas for improvement and acting to ensure the correct

functioning of the system. As part of the evaluation tools used, Cementos

Molins Industrial, S.A. carries out frequent internal audits with duly

qualified personnel, as well as monitoring audits and certificate renewal,

conducted by the Certification Body, which allow us to continue

improving the system.

We at Cementos Molins Industrial, S.A. are aware of our role in the

community. Our facilities have traditionally been one of the main

sources of employment of the neighbouring towns. In fact, at present

more than 60% of our 229 workers live in the nearest towns to our

work place.

For this reason, since our very beginnings we have maintained close

relationships with the towns and their respective residents’ associations.

Specifically, we hold regular meetings with the local town councils and

with the respective residents’ associations with most interest in the

factory’s activities.

During these meetings, subjects of interest to the various groups and

institutions mentioned are dealt with, and Cementos Molins Industrial,

CEMENTOS MOLINS

INDUSTRIAL, SA IN THE

COMMUNITY

2.4

Training (No. employees)

80

70

60

50

40

30

20

10

0

Own staff

2003 2004 2005

Subcontractors Total


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S.A. provides them with information about the activities carried out

and about the evolution of the environmental impact of the Sant Vicenç

dels Horts factory and the quarries.

In this context of dialogue, in 2003, 2004 and 2005 the main concern

shown by the town councils and residents has been the emission of dust

out to the atmosphere. Throughout these regular meetings, Cementos

Molins Industrial, S.A. has offered all of the available information in this

respect, providing with data on the environmental investments made and

their subsequent monitoring at the plant by mixed commissions.

Cementos Molins Industrial, S.A. not only stays in communication with

the neighbouring residents and town councils, but it also maintains a

fluent dialogue with other groups of interest. On the basis of the Quality

System certified in line with the ISO 9001:2000 Regulation, we at

Cementos Molins Industrial, S.A. assess the level of satisfaction of the

customers with our products and services.

Cementos Molins Industrial, S.A. is a member of a number of business

associations, most notably Oficemen (Cement Manufacturers Group

of Spain) and Ciment Catalá (sectorial group of cement manufacturers

in Catalonia).

The organisation also maintains contact with its workers through

meetings and communications with the Works Committee and the

trades unions, as well as by e-mails, communications on the notice

boards and the publication of a quarterly newsletter. Also, the workers

have a suggestion box with which to submit their communications to

the management and take part in environmental management and safety.

Finally, we are in communication with the national and regional

administrations through communications and meetings with their

representatives.

Among other communication initiatives, Cementos Molins Industrial, S.A.

has taken part in conferences, papers and trade fairs and has collaborated

in the production of documents and guides. Specifically, in 2003

Cementos Molins Industrial, S.A. took part in the conference and

symposium for cement factories, organised in Seville by Oficemen with

different papers and at the “Construmat” trade fair with its own stand. In

2005, the company took part at “Construmat” again and collaborated,

together with the Catalan cement companies and the Catalan Regional

Government, in drawing up the sectorial cement guide for the verification,

monitoring and notification of the allocation of CO2 emission rights.

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At Cementos Molins Industrial, S.A. we are convinced that business

success and the company’s permanence in the markets should be backed

up by business management aimed at the satisfaction of all of our

interest groups. And with the aim of ensuring that this satisfaction

be fulfilled, we have identified our principal interest groups, evaluating

the degree of concern that each environmental area causes them.

Consequently, the interest groups studied and the environmental areas

defined are as follows:

Interest groups

■ Regional public administration, most notably the Environmental Quality Department and the Industry and Mining Department of the Catalan Regional Government

■ Local public administration, including the Sant Vicenç dels Horts, Pallejà, La Palma and Vallirana town councils

■ Residents’ associations

■ Works committee

■ Trades unions

■ Shareholders

■ Customers

■ Other organisations

Environmental areas

■ Polluting emissions into the atmosphere

■ Particles

■ Greenhouse-effect gases

■ Noise

■ Waste

■ Extraction of natural resources

■ Energy consumption

■ Products

COMMITMENT TO

THE INTEREST GROUPS

2.5


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Our commitment to these groups, to improve in the areas of interest

identified, has led us to define conventions and enter into voluntary and

sectorial agreements with the administration, and to establish

collaborations that have meant improvements in the facilities through

entirely environmental investments.

Similarly, we have decided to adopt the following commitments to the

future in terms of the environment:

■ Make a significant improvement of our environmental behaviour

through the construction and start-up of the new production line

(Kiln No. 6), applying the best available technologies

■ Maintain regular, structured and recorded dialogues with our

interested parties with a view to making progress in environmental

management and our sustainable development strategy, and to report

on the progress made

■ Make progress in information to society about sustainability actions

and consider the suggestions that individuals may make to us. For this,

we will be setting up a website that channels the worries or actions

that, after prior analysis by the Committee, could be incorporated in

the Sustainable Development Plan

■ Update and publish this environmental report at least every 2 years

The aim of Cementos Molins Industrial, S.A. in publishing this report

is to offer information within a sufficient timescale to carry out the

review of the organisation’s environmental behaviour. Consequently,

the report comprises the activities carried out by the company in 2003,

2004 and 2005.

The contents included in this report have been developed taking as

reference the directives of the Guide to Drafting Sustainability Reports

of the 2002 edition of the “Global Reporting Initiative” (GRI), taking into

account the expectations of our interested parties through the

mechanisms described in this report. However, our intention was not

to draft a report according to this guide in its environmental aspect, but

SCOPE OF THE REPORT

2.6

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simply to use a structure and a series of environmental indicators that

permit access to information and its comparability with other

similar reports.

The economic data collected in this report can be consulted in the

annual reports of Cementos Molins S.A., available on the website:

www.cemolins.es

The basic criteria followed to present the information have been:

■ To present both the absolute data and relative indicators that permit

greater understanding of the surrounding reality

■ To present data on the analysis of indirect impacts (both positive and

negative), accompanying them with the methodology used and the

sources used for their evaluation

■ The information is not limited exclusively to environmental indicators

but is complemented with economic and social information, both

quantitative and qualitative, with the aim of placing the environmental

information in context

■ The comparisons established in this report, be they at a macro level

or with regard to the cement industry, have been meticulously

drafted on the basis of reliable and provable data

At Cementos Molins Industrial, S.A. we are aware

that the work we do impacts on the environment

in which we operate. Therefore, we have undertaken

an Environmental Commitment which, through

actions, reduces that impact and contributes to the

protection of our natural environment as efficiently

as possible.

Within this framework, and by applying our

Environmental Management System, we have

analysed our activities, identifying the environmental

aspects that have the greatest impact on the

environment. It is on these aspects that we exercise

greater control and establish our improvement

objectives to advance in the preservation of nature.

3 ENVIRONMENTAL PERFORMANCE

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3.1.1

NATURAL RESOURCES

3.1

This report pays particular attention to the significant aspects and

impacts described below:

■ Atmospheric pollution generated by the emission of process

pollutants, including greenhouse-effect gases and particles, both at our

factory, in quarrying operations and in transport activities

■ Intensive consumption of raw materials and energy

■ The impact on the landscape, land occupation and the loss of

vegetation generated fundamentally in extraction activities

at our quarries

■ The generation of environmental noise and vibrations originating

from our activities and facilities

■ The generation of waste, both inert and special

■ The potential contamination of land or water caused by emergency

situations and accidents

Cement manufacturing requires a high consumption of water, energy and

raw and auxiliary materials, which creates an environmental impact that

must be controlled. Apart from a clear environmental improvement in

the use of non-renewable resources, this control involves reduced

operating costs, allowing for both greater financial and environmental

efficiency.

RAW MATERIALS

The consumption of raw materials in the cement manufacturing process

is closely linked to the type of product manufactured (clinker, Portland

cement or calcium aluminate), as well as the efficiency in the

manufacturing processes, and, of course, the annual amount of end

product produced.

Even though the total production of Portland cement and Calcium

Aluminate Cement rose 4% in 2004 and 2% in 2005, consumption of

raw materials has not followed the same trend. This slight improvement

3 ENVIRONMENTAL PERFORMANCEEn

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to the efficiency of the process, of 1% over the last three years, has been

due to actions carried out both in factory operations and in the use of

alternative raw materials to the process, and increased consumption of

imported clinker.

At Cementos Molins Industrial, S.A., we are seeking to reduce the

unnecessary operation and use of natural resources and their resulting

impact on the environment. To achieve this, we have modified our

production process, gradually increasing the proportion of sub-products

in the manufacture of clinker.

The sub-products used are materials which have no value for supplier

organisations and are destined for dump site or safety deposit. With

Cementos Molins Industrial, S.A. reusing these sub-products, we give

value to these materials, avoid the use of non-renewable resources and

avoid depositing at dump sites.

Total consumption of raw materials (tons)

Limestone

Clay

Sandstone

Plaster

Imported cement clinker

Bauxite

Ferrous sulphate

Ferric flake

Aluminium hydroxide

Ash

Dehydrated sludge

Total

Eficiency in the consumption of raw materials (%)

2003

62%

2004

61%

2005

63%

2003

1,725,796

473,318

92,154

88,856

15,694

29,414

–

26,192

6,128

–

–

2,457,552

2004

1,767,440

538,064

85,125

95,876

26,143

28,970

–

21,674

5,957

41,113

161

2,610,523

2005

1,696,179

483,155

105,983

103,382

61,388

30,889

5,056

25,115

6,538

75,412

81

2,593,178

Cement produced (t) / materials used (t)

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The percentage of valuated sub-products or recycled raw materials has

risen significantly by an approximate proportion of 1.5% a year. As well as

using ferric flake and aluminium hydroxide, traditional elements in our

operations, in 2004 we began using ash from thermal power stations, and

a small proportion of dehydrated sludge from terrazzo polishing. Using

this sludge and aluminium hydroxide in our manufacturing process has

been possible thanks to the close collaboration we have maintained with

the Catalan Regional Government, which has enabled it to be classified

as a sub-product.

AUXILIARY MATERIALS

At Cementos Molins Industrial, S.A., the cement packing and packaging

processes, for its distribution in bags and big-bags, are the major

consumers of auxiliary materials. During these processes, the cement is

put into paper bags, piled on to wooden pallets, strapped together with

plastic and then shipped. In the case of big-bag formats, this packaging is

made of plastic.

3.1.2

Use of Sub-products (t)

120.000

100.000

80.000

60.000

40.000

20.000

0

2003 2004 2005

Replacement of materials by sub-products (kg sub-product / t of raw material)

Ferric flake

Aluminium hydroxide

Ash

Dehydrated sludge

Total

2003

10.66

2.49

0.00

0.00

13.15

2004

8.30

2.28

15.75

0.06

26.40

2005

9.69

2.52

29.08

0.03

41.32


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In order to comply with the Packaging and Waste Packaging Law

11/1997, and to reduce the amount of packaging on the market, we draft

the annual Business Plan for the Prevention of the Generation of Waste

Packaging. In these plans, we define the measures to reduce packaging

weight, so reducing the impact generated by the management of its

waste, without being detrimental to the growth of production. Taking as a

strategy the commercialisation of our products in bulk where possible,

we have continuously reduced this proportion.

The work carried out at the offices is another auxiliary materials

consuming activity. Although paper consumption is not a significant

aspect for Cementos Molins Industrial, S.A., in 2004 we began controlling

and measuring it to define future measures that would help us reduce its

impact in accordance with our standards of environmental management.

Consumption of packaging and packing materials (t)

2003

96.6

2,418.0

2.1

557.3

3,074.0

2004

184.0

2,436.0

8.0

564.0

3,192.0

2005

97.8

2,366.0

2.5

524.4

2,990.7

Non-reusable wood

Reusable wood

Plastic

Paper and cardboard

Total packaging and packing

Packaging weight per unit of product (kg/t)

2,50

2,00

1,50

1,00

0,50

0,00

2003 2004 2005

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ENERGY

3.2Cement production is a process that requires an intensive supply

of energy. Both in the purely productive activities and in the auxiliary

and transport ones, Cementos Molins Industrial, S.A. consumes large

quantities of energy, basically from petroleum derivates (petroleum

coke, gas oil and fuel) but also from coal derivates (bituminous coal)

and electricity.

In the production processes, most of the thermal energy consumed

comes from petroleum coke, a fuel that is used in the manufacturing kilns

of Portland cement. The second supply of energy in terms of size is due

to the use of bituminous coal in the calcium aluminate cement

manufacturing kilns. To a lesser extent, fuel oil is also used, for the ignition

of the Portland cement production kilns.

Gas oil is mainly used primarily for transport, although it is also used for

the ignition of the coal mill furnace and to supply the hot water and

heating boilers in the offices.

Finally, electricity is used as a power source for the machinery and for

lighting, offices and auxiliary services.

As in the case of the consumption of raw materials, energy consumption

is related to the volume of production and determined by the energy

efficiency of the existing facilities. In a drive on energy efficiency, over

recent years we have begun a number of initiatives focused on savings

here. Most notable among these is the replacement of conventional

starters in the motors of various ventilators with frequency shifters.

As for the planned energy saving measures, we should highlight the

start-up of the new production line (Kiln No. 6). In this kiln, and thanks

to the use of more efficient technology, we estimate a reduction in

energy consumption of 8% of electricity, 11% of coke and 50%

of fuel oil consumption.


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Energy consumption in manufacture (Gj/t)

5.000.000

4.000.000

3.000.000

2.000.000

1.000.000

02003 2004 2005

Specific electricity consumption (Kwh/t cement)

150

100

50

0

116.53 115.62 111.65

2003 2004 2005

Total consumption of energy for primary uses per ton of cement (Gj/t)

2003

0.42

0.42

0.33

0.33

2.74

0.02

2.71

3.48

2004

0.42

0.42

0.25

0.25

2.65

0.02

2.63

3.31

2005

0.40

0.40

0.18

0.18

2.44

0.02

2.43

3.03

Electricity

Production, offices and lighting

Coal products (bituminous coal)

Production

Petroleum derivates (coke, fuel and gas oil)

Transport

Production

Total

Energy sources Energy uses

Specific thermal energy consumption (Gj/t)

4,00

3,00

2,00

1,00

0

3.35 3.40 3.25

2003 2004 2005

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The main source of Cementos Molins Industrial, S.A.’s water supply

comes from underground wells. The company has authorisation from

the administration to extract 250,000 m3 a year, which it complements

with the water that it consumes from the municipal public grid of the

Sant Vicenç dels Horts town council.

The basic uses of the water are linked to the production process,

derived from the refrigeration of the machinery and the molten kiln,

as well as the cooling of gases both from kiln 5 and the product. This

resource is also used for cleaning vehicles and machinery, watering tracks

at the quarries, maintaining green areas and for sanitary uses.

WATER CONSUMPTION

3.3

Evolution of water consumption (m3)

2003

221,171

211,067

10,104

26,294

26,294

0

247,465

162

2004

209,186

201,569

7,617

28,959

28,959

0

238,145

150

2005

209,775

202,404

7,371

37,650

37,408

242

247,425

151

Well water

Consumption in factory

Consumption in quarry

Water from the grid

Consumption in factory

Consumption in quarry

Total

Specific water consumption (l/t cement)

Evolution of water consumption (m3)

Municipal grid Underground

250.000

2003 2004 2005

200.000

150.000

100.000

50.000

0


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EMISSIONS

3.4

Aware that water is a scarce natural resource, Cementos Molins

Industrial, S.A. has developed different measures to reduce its

consumption. These include reusing a large part of the water used in

the production process, namely: decalcification water and water used in

machine and molten kiln cooling; water used to cool gases from the kiln;

and water from the injection into the mill for cooling the cement.

The cement production process generates emissions of gases into the

atmosphere at different stages: from the emission of particles in

extraction activities and transport of raw materials, up to the end product

storage and handling processes, going through emissions originating from

calcination processes in the Portland and calcium aluminate kilns.

The most representative substances of the cement industry that are

emitted into the atmosphere are:

■ Dust or particles emitted both during quarrying operations and

during the transportation of aggregates to the manufacturing plant, in

the handling of raw materials, at the cement and coal mills and in the

Portland and calcium aluminate kilns

■ Nitrogen oxides (NOx) and sulphur (SO2). NOx forms when the

nitrogen in the air reacts with oxygen at the high temperatures

reached during the production of clinker. In addition, SO2 is formed

by the oxidation of the sulphur in the raw materials and fuels. Both

components are emitted fundamentally in the calcinations kilns (for

both Portland and calcium aluminate cement), and in the coal mill

■ Carbon dioxide (CO2) and carbon monoxide (CO), from both

chemical reactions produced in the kilns (decarbonation) and

the combustion processes present in the processes

The Sant Vicenç dels Horts factory has 43 fixed atmospheric emission

points. These points are are controlled continuosly and measured

regularly, in accordance with applicable legal requirements and the

voluntary agreements signed by the organisation, and the competent

authorities are mandatorily notified of the data. Since 2000, specific

measurements have been taken of the emission points at the factory,

analysing the parameters contained in the EPER register.11 State Pollutant Emissions and

Sources Register

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A voluntary agreement for the prevention and control of pollution by the Spanish cement industry.

Apart from the legal limits which apply to the activity, in 2002 Cementos Molins Industrial, S.A. signed the

“Voluntary agreement for the prevention and control of pollution by the Spanish cement industry” with

the Catalan Regional Government. This agreement covers the prevention, reduction and control measures

for pollution from cement factories, focusing on the following objectives:

1. Reduced emissions of particles from disperse sources through the confinement of clinker stores,

installation of breathing and dust-removal systems in cement and clinker bulk loading and the closure

of clinker transport systems at the factories.

2. Installation of particle measuring systems, of NOx and SO2 in the kilns.

3. Limiting particle emissions in the cement kilns, coolers and other located sources.

4. Limiting emissions of NOx and SO2 in the kilns.

In 2004, we began continuous measurements of particles in the three

Portland cement rotary kilns. Similarly, given the nature of the activity and

the importance of monitoring atmospheric emissions, there will also be

continuous control as of 2006 of nitrogen oxides, oxygen, carbon

monoxide and sulphur dioxide in these kilns, with reliable, real data

obtained about the emissions generated.


70,662

294,410

2,553,062

3,233,508

0.05

0.19

1.67

2.12

106,389

95,576

4,038,127

8,532,043

0.07

0.06

2.54

5.37

146,631

1,026,450

5,537,241

3,257,271

0.09

0.63

3.39

1.99

Particles

SO2

NOx

CO

2003 2004 2005

Kg Kg/t* Kg Kg/t* Kg Kg/t*

* Kg per ton of cement manufactured


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Comparison of emissions with Voluntary Agreement (mg/Nm3)

Particles (except kilns 4 and 5)

Particles kilns 4 i 5

SO2

NOx

9

10

147

414

14

15

73

651

20

17

353

990

50

75

600

1,200

2003 2004 2005 AV

Emission of particles - except kilns 4 and 5 (mg/Nm3)

50

40

30

20

10

0

2003 2004 2005 AV

Emission of particles kilns 4 and 5 (mg/Nm3)

80

60

40

20

0

2003 2004 2005 AV

Emission SO2 (mg/Nm3)

600

500

400

300

200

100

0

Emission NOx (mg/Nm3)

2003 2004 2005 AV

The investments made, among which we should highlight the

replacement of electrostatic filters with bag filters, the closure of storage

areas and power supply circuits for facilities and the installation of

breathing filters, have led to a significant reduction in particle emissions.

To improve SO2 and NOx emission values, in 2005 the burner in kiln 5

was changed and there are plans to replace the burners in kilns 3 and 4.

(Average calculated values considering the emissions of the points included in the EPER)

1.200

1.000

800

600

400

200

0

2003 2004 2005 AV

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Construction of the coal storage warehouse

Until 2003, coal was unloaded and stored in the open air. The amount of stored coal varied between

20,000 t and 70,000 t, so the action of the wind dragged large amounts of lightweight particles from

the piles.

To reduce these emissions, the construction of a warehouse for storing the coal was proposed.

The building, with a covered metal structure with self-supporting plate, measures 13,440 m2 and

covers both the piles of coal and the lorry off-loading area.

The project, which began in 2001 and was completed in 2003, had a total investment of 4,628,000 euros.

In addition, the installation in 2004 of continuous particle measurers

and in 2005 of SO2 and NOx in the Portland kilns gives us greater

in-depth control of these emissions, providing us with real information

about them.

Among the new objectives that we at Cementos Molins Industrial, S.A.

have set for the coming years we must mention the installation of a bag

filter in the current FLS coal mill, so replacing the existing electrostatic

one. Due to the kilns’ operating system, the installation of this filter is

planned to take place during the construction and start-up of the new

kiln 6 line.

Certain interest groups from the nearest towns have demonstrated their

concern about dioxin emissions. To this effect, Cementos Molins

Industrial, S.A. has collaborated with Oficemen and the Ministry of the

Environment in the creation of the “Dioxins and Furans Inventory” in

2003. Since then, and even though the emission values are well below

the values required by the administration, this substance is controlled and

measured on an annual basis in the three Portland cement kilns.

Emissions of dioxins in kilns

Average emission (ngr/Nm3) 0.02 0.03 0.01 0.10

2003 2004 2005 Límite


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With regard to the different dust and particle emissions, at Cementos

Molins Industrial, S.A. we have conducted a range of activities to reduce

them, at both the quarries and the factory. At present, watering the

tracks along which the lorries at the quarries travel, and the use of

hygroscopic salts is usual practice, as is the mandatory fact that the

lorries must completely cover the load that they are transporting.

Investments for 2003 included the installation of automatic watering

systems at the La Fou quarry and the surfacing of transit areas widely

used by vehicles at the factory and the lorry off-loading area. Three

automatic machines were also purchased for measuring air quality for

particles in suspension of less than 10 microns, PM10.

Air quality in quarries (sedimentable material: mg/m* day)

350

300

250

200

150

100

50

02003 2004 2005 Legal limit

* The applicable immission limit is considered to be the one established in accordance with the Technical Instructions of the ITVCA 08

Directorate General for Environmental Quality, where the criterion is adopted of maintaining the sedimentable particles parameter

as reference for controlling the emissions into the atmosphere from extracting, with a maximum value of 300 mg/(m2 a day).

Turó Roig quarry La Fou quarry Ana quarry

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Greenhouse-effect gases

Among the most significant impacts that the cement industry generates

in the environment is the emission of CO2 into the atmosphere, a

substance that is one of the responsible substances for the greenhouse

effect. Approximately 50% of the CO2 that is generated in the industry

comes from the chemical process of decarbonation, in which the

limestone is turned into calcium oxide, a component of cement, giving

off CO2. Another 40% of the emissions are generated by the fossil fuel

combustion processes at the facilities, while the rest is generated by

auxiliary activities and transport2.

It is estimated that for every ton of clinker, 890 kg of CO2 are emitted,

540 Kg from decarbonation and 340 Kg from the combustion processes.

In 2004, Cementos Molins Industrial, S.A. applied to the Catalan Regional

Government for authorisation for the emission of greenhouse-effect

gases, and was allocated for the 2005-2007 period by Spain a total of

3,627,894 Tons, of which 1,209,298 Teq are for 2005. As can be seen, the

real emissions do not exceed the allocated rights.

The reduction in the content of clinker in cements due to the use of

other materials such as ash, together with improvements to energy

efficiency and the fuels used, have helped to cut greenhouse-effect gas

emissions per ton of cement manufactured.

Noise and vibrations

One of our most significant environmental aspects is the generation

of noise due both to the operation of machinery in the manufacturing

processes and to those relating to extraction at the quarries (explosions,

movement of machinery, transport, etc.).

2 “The cement sustainability initiative

progress report”, June 2005, World

Business Council for Sustainable

Development.

CO2 Emissions

Annual emission (t. eq. CO2)

Specific emission (t. eq. CO2/t cement)

1,184,578

0.777

1,212,518

0.763

1,179,299

0.722

2003 2004 2005

The CO2 emissions for 2003 and 2004 have been calculated using the emission coefficient of 0.89 Ton eq of CO2 per tons of clinker. The emission

values for 2005 are those of the data verified by AENOR.


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WASTE

3.5

With the aim of minimising this aspect, which may cause troubles in the

adjacent local communities, we at Cementos Molins Industrial, S.A. have

carried out a number of actions and investments to eliminate or insulate,

as far as we can, the equipment and activities that generate noise.

Between 2003 and 2005, we have invested more than 65,000 euros

in the factory for the sound insulation of noisy facilities, primarily in

ventilators and partial closure of facilities.

As a measure of control of this environmental impact, every year we run

environmental noise measurement campaigns on the factory perimeter

and regular measurements in the areas adjacent to the quarries.

Additionally, and with a view to controlling any vibrations caused by

extraction at the quarries, whenever an explosion is scheduled, we

monitor the vibration in the areas close to the operation. The values

obtained by means of these controls indicate that this activity does not

produce a significant impact on the neighbouring centres of population,

and the competent authorities are mandatorily notified.

At Cementos Molins Industrial, S.A., we believe that the generation of

waste is both an environmental and an economic loss, for which reason

we aim to minimise it to the utmost, progressively increasing the

efficiency of our processes.

However, in many cases, the generation of this waste is unavoidable.

Because of this, we have implemented a system of selective waste

collection, storage and management that complies with both the legal

requirements in this field and the criteria of minimisation, reuse

and recycling.

Cementos Molins Industrial, S.A. manages all of its waste through

authorised managers, prioritising whenever possible recycling, recovery,

reuse and valuation treatments over those of destruction or disposal.

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Non-Special Waste

Among the non-special industrial waste generated by the work of

Cementos Molins Industrial, S.A., we should highlight the inerts from

debris, earth and cement crudes; scrap copper and metal, rubber,

deteriorated pallets; paper and cardboard; packaging and cleaning slurry

from the septic tanks.

Out of this waste, the inerts from debris, earth and cement crudes are

the ones generated in the most quantity, accounting for around 90% of

the weight of the non-special waste.

Given the nature and origin of the non-special waste, the quantity

managed every year may vary depending on the remodelling,

construction work and extensions carried out at the facilities.

Consequently, the increase of more than 40% in 2004 compared with

2003 is due primarily to the construction of the new covered coal

warehouse. This new building, previously used for storing clinker, made

the collection and cleaning of the whole area necessary , generating a

large quantity of debris, earth and cement crudes contaminated with

earth and coal remains.

Regarding the non-special waste that is recovered or recycled, scrap

metal constitutes more than 70% of the total. As in the abovementioned

case, the construction work on the coal storage building generated an

increase of 30% in 2004 in this type of waste.

Special waste

Among the special waste that is generated, we can highlight the waste

from tank cleaning slurry, contaminated absorbents, mineral oils and

Generation of waste by type and destination (t)

2003 2004 2005

Recycling, recovery and reuse

Non-special waste

Special waste

Destruction and disposal

Non-special waste

Special waste

Total

579

53

4,389

24

5,045

752

114

6,342

16

7,224

328

72

3,297

23

3,720


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DISPOSAL

3.6

transformers with PCBs. We can see a clear trend towards the recycling

and reuse of this type of waste, such that in 2005, more than 75% of

special waste was managed this way.

Notable among the special waste are the transformers contaminated

with Polychlorobiphenols (PCBs). Cementos Molins Industrial, S.A. has

drafted the plans for the removal of this equipment, having been

approved by the Catalan Waste Agency.

Similarly, in 2003, 4 tons of asbestos cement waste from the removal of

roofs made out of this material in the storage porch roofs were

managed. Cementos Molins Industrial, S.A. has a plan approved by the

Catalan Regional Government, which allows it every year to make small

removals of asbestos cement from pipes, tanks and roofs and any other

material that contains asbestos.

The cement manufacturing process in itself does not generate any type

of waste water, with the activity of cleaning the machinery and

equipment and auxiliary factory activities being the only industrial

disposal point. Another type of waste water present is sanitary water,

primarily from the offices and which is collected separately by means of a

different grid. Finally, rain water, with no pollutant load, is dumped into a

public waterway.

Consequently, the Sant Vicenç dels Horts factory has 2 different disposal

points, which connect with the disposal grid of the Metropolitan

Barcelona Area, to be treated at the EDAR purifying plant in Sant Feliu

de Llobregat. The first point dumps industrial water while the second

collects sanitary water from the offices and canteen.

In recent years, we at Cementos Molins Industrial, S.A. have carried

out various actions aimed at controlling waste water disposal and

minimising its pollutant load:

■ In 2005, a third disposal point was closed where water from

cleaning vehicles was dumped into the Fallulles stream, heading

for the industrial water collection grid.

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The annual volume of disposal is estimated according to the factory’s

water consumption. We should highlight that since 2005, we have general

control meters not just of influent water into the factory but also of

irrigation water, so that as of this year the estimated disposal produced is

based on the values recorded in these meters.

To control the disposal parameters, auto-controls of the following

disposal parameters are run every month:

■ Matter in suspension■ Chemical oxygen demand COD■ Conductivity■ Toxicity■ Nitrogen■ Phosphorus■ ph

■ A hydrocarbons separator has been installed to treat water

from cleaning vehicles and machinery prior to its connection to

the rest of the factory’s disposal.

■ In March 2005, a biological purifying system was set up to

provide service to the waste water from the factory. This

installation appreciably improves the disposal parameters,

especially with regard to the pollutant nitrogen load.

Waste water disposal (m3)

40.000

30.000

20.000

10.000

0

2003 2004 2005

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In addition, the following periodic analysis campaigns are conducted:

■ Quarterly, by accredited laboratories (Acuatec)■ Every six months, waste water control by the Metropolitan

Barcelona Area■ Every year, analysis conducted by the Catalan Water Agency

(Department of the Environment of the Catalan Regional

Government)

Of the activities carried out by Cementos Molins Industrial, S.A., the

quarrying operation is the one that has the greatest effect on

biodiversity. This activity generates a series of impacts associated with the

extraction work, causing the alteration of the natural habitats where it is

located and generating impacts on the environment:

■ Visual impact■ Loss of vegetation■ Land occupied■ Impact of explosions■ Transport

Besides this, of the aspects generated, the use of the soil is one of the

most significant due to the area of the affection and to the effects that

extraction may generate for subsequent uses, also changing the

landscape. To this effect, every year we draw up Restoration Plans of the

three quarries in order to reduce the impacts that have occurred during

operation and we always restore the environmental conditions

whenever possible.

BIODIVERSITY

3.7

Affection of the soil

Area of affection of the Turó Roig quarry

Area of affection of the Ana quarry

Area of affection of the La Fou quarry

61,514 m2

155,793 m2

789,561 m2

60


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The actions covered in the restoration plans range from bringing in earth

for infilling and developing embankments to the transplant or planting of

plant species, as well as the care that these species need to be able to

develop. Among the usual restoration activities, we have planted

herbaceous plants and pines, brought in topsoil and fertiliser and

irrigated the vegetation. We have also carried out a series of

maintenance tasks of the area, such as the reclamation and preservation

of ditches and tracks.

At Cementos Molins Industrial, S.A., we consider that environmental

collaboration with the Public Administration and with private institutions

is a pillar for continuing to improve in conducting our activities.

Consequently, we have taken part in a number of research projects,

offering our facilities, activities and even economic support to contribute,

as far as we can, to solving specific environmental problems of society.

Area restored (m2)

Trees planted

Ana quarry La Fou quarry Turó Roig quarry

1,000

100

4,400

1.010

250

165

Quarry restoration projects

“Tor-Grass” Project

In 2003 and 2004, Cementos Molins Industrial, S.A. collaborated with the Bosch i Gimpera Foundation of

Barcelona University in conducting a study into the evolution of the tor-grass introduced by seeding in the

restoration of the limestone quarries. The aim of the project was to study the recovery of areas affected

by open-cast mining in the Mediterranean basin, using indigenous species, in order to improve restoration

work.

To conduct this study, Cementos Molins Industrial, S.A. loaned an area of the “La Fou” limestone quarry,

where the researchers tested different mixes of seeds and checked their viability, applying both the

substratum and the irrigation conditions to check the development of the seeds.

As a conclusion to this study, the conditions were established under which restoration with indigenous

species had the greatest success. In each case, the factors that influenced the proliferation of the species

were studied, such as the characteristics of the substratum, the climate conditions, the additions of organic

amendments, etc.



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The Environmental Management System has enabled us to develop an

emergency action plan, which includes the procedures and protocols to

be followed in the event of spillages, accidents, accidental emissions into

the atmosphere, etc. From 2003 to 2005, the emergencies that occurred

consisted of small accidental spillages, or accidental emissions of dust into

the atmosphere.

Accidental disposal

Cementos Molins Industrial, S.A. has prevention measures to prevent

accidental spillages, and also restraint systems to avoid or reduce the

EcoQuarry Project

Since 2005, Cementos Molins Industrial, S.A. has been taking part in a new

project with Barcelona University and another series of collaborators and

associated agencies. The project, called Ecoquarry, is part of the 2004 LIFE

Environment Programme and consists of the application of “environmental

ecotechnology” for the restoration of limestone quarries.

The aim of the project is to:

■ Implement on a real scale the latest innovations in quarry restoration in

Mediterranean conditions.

■ Obtain an improvement in the results of the restoration actions,

developing standardised quality control processes.

■ Foster a rational and sustainable use of natural resources and an increase

in the setting of atmospheric carbon.

■ Directly transfer the procedures to large and small companies in the

extraction industry.

Cementos Molins Industrial, S.A. has made its facilities available to the research project, loaning an area

of the La Fou quarry for the implementation of the project’s pilot experiments. It has also contributed

30,000 euros of its own funds to the research.

ENVIRONMENTAL

EMERGENCIES

3.8

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environmental impacts in the event of accidental disposal. We have

provided with basins and most of the factory’s surface area is paved. The

disposal galleries also contain compartments.

Despite the prevention and containment measures, there may sometimes

be one-off spillages that affect the environment. In 2004, a hydraulic oil

leak caused by a fault in a subcontractor’s crane led to the momentary

pollution of the factory’s rain water. The Emergency Plan having been put

into action, perimeter containment was carried out in the rain water

grilles and inside the gallery, with the necessary measures taken to clear

up the spillage.

In 2005, the creeping of molten clinker leachant led to a rise in the

concentration of aluminium in the disposal into the River Llobregat.

The Catalan Water Agency initiated disciplinary measures against

Cementos Molins Industrial, S.A. for this disposal and, given the risk

detected, it was decided that this disposal point be closed down and that

the waste water from this area be connected with the disposal point

for existing industrial water.

Accidental emissions

The accidental emissions of dust are derived primarily from specific

failures in the operation of the electrostatic filters and from the diffuse

emissions from the Portland kiln coolers. The local communities are highly

sensitive in this respect, and there have been a number of complaints

from neighbouring towns to the Sant Vicenç dels Horts factory. In order

to control these emissions, the following actions have been taken:

■ Replacement of the electrostatic filters by more efficient and reliable

bag filters in cement mills 5 and 6 and in Portland kiln 3

■ Covering the cooler areas of kilns 3 and 4

Land ocupied

Total surface area of the factory

Warehouses

Buildings

Gardens

Paved surface area

Unpaved surface area

267,487 m2

46,106 m2

54,673 m2

25,730 m2

99,389 m2

41,589 m2


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The activities of the Cementos Molins Industrial, S.A. factory require the

use of some raw materials that are dangerous both for the environment

and for personal safety, such as fuel oil, petroleum, cement additives,

mineral oils used as lubricants, etc.

In order to control and monitor the conditions of transporting and

unloading these substances, and in accordance with current legislation,

Cementos Molins Industrial, S.A. has a Safety Counsellor, who carries out

this work and drafts the reports required by the Administration.

From the modifications and extensions of facilities and processes

to gardening work, the economic investment in environmental control

and improvement programmes in the 2003-2005 period exceeded

4,000,000 euros.

TRANSPORTATION OF

DANGEROUS GOODS

3.9

ENVIRONMENTAL

INVESTMENTS

3.10

Investment summary table

Area of improvement

Reduction of emissions

Reduction of consumption

Disposal quality improvement

Monitoring and measurement improvement

Improvement of visual impact

Reduction of noise emissions

Waste management

Total

Import €

3,307,520 €

467,589 €

168,905 €

164,108 €

133,913 €

64,619 €

8,536 €

4 ,306,654 €

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Environmental investments


Coal storage park roof

Cover of belts, coolers

Covered belt to fill clinker silo

Installation and improvement of aspiration systems

Paving various areas of the factory

Installation and improvement of bag filters

Disposal

Installation of purifier at industrial water disposal point

Bleeding of compressors

Closure of disposal point into River Llobregat

Waste

Elimination of the three transformers with PCBs

Efficiency of consumption

Installation ash dosing at 6C

Collection compressor bleeds

Installation ash feed cement 5

Noise

Soundproofing of ventilators

Walls and soundproofing

Visual impact

Gardening dolomite zones way and t

Monitoring and measurement

Installation of continuous particle control in chimneys

Continuous measurement of NOx, SO2 and CO in chimneys 3, 4 and 5

4 GRI INDEX

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4 GRI INDEX

1.1 1.2

2.1

2.2

2.3

2.4

2.5

2.6

2.7

2.8

2.9

2.10

2.11

2.12

2.13

2.14

2.15

2.16

2.17

Vision and strategy

Statement by the Chairman

Name of the organisation

Main products

Operating structure

Description of departments

Countries in which it operates

Nature of the property

Nature of the markets

Size of the Organisation

List of interested parties

Contact persons

Period covered by the report

Date of the most recent previous report

Coverage of the report

Significant changes

Bases for drafting Reports of joint companies

Description of the nature and effect of any reformulation of information given in past reports, and the reasons for their reformulation

Decisions not to apply GRI principles or protocols

2.1

0

1.1

1.3

1.5, 1.6

1.6

1.4

1.2

1.4

1.4

2.5

page 77

2.6

2.6

Not applicable as it is the first environmental report drafted by CMISA



This is the first environmental report drafted by CMISA

This report only applies environmental criteria of the GRI

1. Vision and strategy

2. Profile

Profi le of the Organisation

Scope of the report

GRI Indicator Chapter Comments

Profi le of the report

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4 GRI INDEX

2.18

2.19

2.20

2.21

2.22

3.1

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

3.10

3.11

Cost and profit accounting

Significant changes

Internal policies and measures to guarantee the accuracy, comprehensiveness and veracity of the information shown in this report

Policies and measures to provide independent mechanisms for verification of the report

Means whereby users can obtain additional information

Government structure

Percentage of the board formed by independent directors

Process to determine the need of the members of the group of experts to guide the organisation’s strategies in areas such as social and environmental opportunities and risks

Directorial processes to supervise the identification and management of the economic, environmental, and social risks and opportunities

Relation between directorial remuneration and reaching financial and non-financial objectives

Structure of the Organisation

Statement of the Mission and Values, principles or internal Codes of Conduct

Mechanisms that allow the shareholders to give their recommendations

Identification of the interested parties

Consultation methods of the interested parties

Type of information generated by the interested consultations

2.3

2.3

2.6

1.5, 1.6

2.3

1.5, 1.6

2.1, 2.2

2.5

2.5

2.5

Government Structure

Not applicable

This is the first environmental report draftedby CMISA

Verification of the environmental report has not been planned

Not applicable

Not applicable

Not applicable

Not applicable

Commitment with the interested parties

3. Government Structure and Management Systems

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4 GRI INDEX

3.12

3.13

3.14

3.15

3.16

3.17

3.18

3.19

3.20

Use of the information obtained as a result of the commitments with interested parties

Explanation about whether the principle of precaution is taken into account by the organisation

Commitments or other voluntary initiatives of and economic, environmental or social nature carried out outside the organisation

Membership of business and industrial associations, and / or national and international advisory organisations

Policies and systems for the management of prior and subsequent impacts

Organisation’s focus regarding the management of the indirect economic, environmental and social impacts caused as a result of its activities

Principal decisions taken during the period of drafting the report in relation to the location or the modification of the operations

Programmes and procedures relating to the economic, environmental and social performance

State of the certification of Management Systems

2.5

2.3

2.1, 2.4, 3

2.4

2.3

2.2

2.3

2.3

Not applicable

Global policies and management systems

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4 GRI INDEX

Environmental performance indicators

EN1

EN2

EN3

EN4

EN5

EN6

EN7

Total consumption of raw materials except water by type

Percentage of raw materials that are waste from external sources

Direct consumption of energy by primary source

Indirect consumption of energy

Total water consumption

Location and extent of land owned, leased or administered in biodiversity rich habitats

Analysis of the main impacts on biodiversity

3.1

3.1

3.2

3.3

3.7

3.7

There is not enough information to draft this indicator

Raw materials

Central indicators


Energy

Water

Biodiversity

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Additional indicators

EN17

EN18

EN19

EN20

EN21

EN22

EN23

EN24

EN25

EN26

EN27

EN28

Initiatives to use renewable energy sources and to increase energy performance

Energy consumption footprint of the main products

Other indirect uses of energy

Water sources and ecosystems affected

Annual extraction of underground and surface water available in sources

Total calculation of water recycling and reuse

Total extent of land owned, leased or administered, used for production activities or extraction

Percentage of waterproof area in relation to bought or leased land

Impacts caused by activities or operations in protected or sensitive areas

Changes caused to natural habitats

Objectives, programmes and aims to protect and restore ecosystems and native species in degraded areas

Number of species included on the red list of the UICN

3.2

3.3

3.3

3.3

3.7

3.8

3.7

3.7

3.7



Not applicable


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4 GRI INDEX

EN8

EN9

EN10

EN11

EN12

EN13

EN14

EN15

EN16

Emissions of greenhouse-effect gases

Use and emissions of ozone-reducing substances

NOx, SO2 and other significant atmospheric emissions by type

Total quantity of waste, by type and destination

Significant water disposal, by type

Significant disposal of chemicals, oils and fuels

Significant environmental impacts of the main products and services

Weight percentage of products sold liable to be recovered at the end of their useful life and percentage really recovered

Episodes and fines associated with non-fulfilment of national and international legal and environmental regulations

3.4

3.4

3.5

3.6

3.8

2.5

3

CMISA does not generate significant emissions of substances harming ozone layer

It is impossible to estimate this indicator due to the long life of this product

Emissions, disposal and waste

Suppliers

Products and services

Fulfilment

Transport

General

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4 GRI INDEX

EN29

EN30

EN31

EN32

EN33

EN34

EN35

Business units that operate in protected or sensitive areas

Other relevant indirect emissions of greenhouse-effect gases

Production, transport, import or export of waste considered to be dangerous

Water sources and ecosystems affected significantly by water and liquid waste disposal

Suitability of suppliers with regard to aspects covered in 3,16

Significant environmental impacts linked to transport with logistics aims

Total environmental costs, by type

3.5

3.8

2.1

3.9

3.10

Not applicable


For further information or to make any suggestions on the report

please contact: Head of Environment, Cementos Molins Industrial,

S.A. at the following address:

Mr. Jordi Mostajo

Ctra. N-340, 2 al 38

08620 Sant Vicenç dels Horts

Barcelona

e-mail: [email protected]

This report is obtainable on our Web site:

www.cmi.cemolins.es

This report was verified by the company ERM ((Environmental

Resources Management), on 29th December 2006.

VALIDATION OF THE REPORT

Cementos Molins Indutrial, SACtra. N-340, 2 al 3808620 Sant Vicenç dels HortsBarcelona

Grafi c designNúria Tresserra

© Cober photographGettyimages / Dimitri Vervitsiotis

Printed byMolagraf, S.L.

Printed in ecological paper

2005

Env

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2005

EN

Environmental report 2005 - Cementos Molins

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