“The best design acknowledges that you can't disconnect the form from the material. The material informs the form.”

“The only way to make the MacBook Pro unibody was to machine it from a single piece of aluminium.”

Sir Jonathan IveSenior Vice President of Design, Apple Inc.

“The use of aluminium… brings many benefits in terms of weight savings, improved fuel efficiency, lower emissions, increased crash safety and even better vehicle dynamics”

“Aluminum will be the material of choice”

“Aluminium allows Bombardier to manufacture low weight vehicles and thus reduce environmental impact, with a high quality exterior finish”

Guillaume RétauxDirector Strategic Sourcing

“The aluminium curtain walling system of the Hong Kong Shanghai Bank looks as crisp as the day it opened in 1986”

2015

2025

Available EoL scrap“split c. 50:50 between wrought and casting alloys”

0

20

40

60

80

100

120

1950 1960 1970 1980 1990 2000 2010 2020

Mill

ion

tonn

es

Other

Packaging

Consumer Durables

Transport

Electrical

Building & Construction

Three quarters of all aluminium ever produced is still in productive use

• 1 billion tonnes primary produced since 1888• 750 million tonnes in products in use

• A positive recycling story but…

…more significantly a story of • Demand growth

• For light, strong, conductive, protective products• 800 million tonnes produced since 1980

• Durability• Aluminium in long lifetime products have not yet reached the

end of their “First Life”• Long lifetime products tend to have high recycling rates (>90%)

75% still in use…at least 50% still in “first use”

-300

-150

0

150

300

450

600

750

1950 1960 1970 1980 1990 2000 2010Mill

ion

tonn

es A

l (cu

mul

ativ

e)

Unrecovered(inc. energy recovery)

Process Losses

Destructive Uses

Recycled & In Use

In Use "First Life"

IN USE

“LOST”

Apparent consumption (semis)“dominated by long/mid lifetime products”

0

20

40

60

80

100

120

1950 1960 1970 1980 1990 2000 2010 2020

Mill

ion

tonn

es

Other(inc destructive uses)

Packaging

Consumer Durables

Transport

Electrical

Building & Construction

Aluminium in use“dominated by long/mid lifetime products”

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1950 1960 1970 1980 1990 2000 2010 2020

Bill

ion

tonn

es

Other(ex destructive uses)

Packaging

Consumer Durables

Transport

Electrical

Building & Construction

Final product demand per capita

0

5

10

15

20

25

30

Kg

Al p

er c

apita

China North America Europe

“In Use” stock per capita

0

50

100

150

200

250

300

350

400

450

Kg

Al p

er c

apita

China North America Europe

Global aluminium demand will be met increasingly from primary sources

0

20

40

60

80

100

120

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

Sem

is d

eman

d (M

t Al)

Required primary

Unwound warehouse stocks

Demand met by recycling

In 2020, less than 20% of global demand will be met through recycling of “old scrap”

0

20

40

60

80

100

120

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

Sem

is d

eman

d (M

t Al)

Demand met by recycling EoL scrapDemand met by recycling traded new scrapUnwound warehouse stocksRequired primary

End of LifeRecycling (Collection) Rates

>90%

>90%

c.75% beverage cansc.30% flexibles

2020: what if all availableEnd of Life scrap is recovered?

0%10%20%30%40%50%60%70%80%90%

100%

Base case (current rates) 99% EoL collection rates

110-120 million tonnes

Old Scrap

New Scrap

Stocks

Primary

Primary Production 1990

GCC; 0.5 Mt

Australia; 1 Mt

Latin America; 2 Mt

China; 1 Mt

EU28 & EFTA; 4 Mt CIS; 3.5 Mt

North America; 6 Mt

Primary Production 2013

GCC; 4 Mt

Australia; 2 Mt

Latin America; 2 Mt

China; 25 Mt

CIS; 4.5 Mt

North America; 5 Mt

EU28 & EFTA; 4 Mt

Regionalisation

1950

-197

0 Integration- Integrated aluminium companies with regional value chains located close to markets (Europe, Japan, N America);- Regional associations;- Limited scrap flow, little trade.

1970

-200

0 Globalisation- Integrated model applied to new production centres, close to resources (Brazil, Australia, GCC) to serve distant, mature markets;- Global price discovery (LME);- IAI incorporated;- Recycling.

2000

-202

0

- Differential pricing (regionally & along value chain);- Increase in seaborne bauxite;- Increase in traded scrap;- Smelting follows energy;- Downstream at both smelting & market.

2008 dataSince then:

…China aluminium production increased by 80%

…China alumina production increased by over 100%

…China bauxite imports doubled

…Indonesia resources export ban (3/4 of China bauxite import in 2013)

…China scrap imports increased by almost 50%

Source: NTNU

The aluminium industry must demonstrate...

Dismantling & contraction of

integrated value chain

Increasing demand from customers for

responsibly sourced aluminium

1. that it produces responsibly, by mitigating environmental impacts and positively impacting the communities in which it operates;

2. that its products bring a net benefit to society in terms of reduced environmental impact; improved quality of life, health, safety & wellness and economic growth;

3. that at the end of product life, the value of the metal, the energy that went into its production and the resource inputs are retained and realised as another product, through collection and recycling or energy recovery.

Industry must responsibly manage the transformation of raw materials into products:• Rehabilitate bauxite mine sites;• Improve alumina recovery rates;• Reduce water consumption where appropriate;• Improve energy efficiency;• Reduce carbon consumption;• Manage emissions and product waste streams;• Reduce caustic use, improve caustic recovery.

Global Electrolytic Energy reduced by 15% since 1980

12.0

12.5

13.0

13.5

14.0

14.5

15.0

15.5

16.0

16.5

17.0

Elec

tric

al E

nerg

y In

tens

ity (k

Wh/

kg A

l)

Alternating Current (AC)

Direct Current (DC)

www.world-aluminium.org

Regional Energy Intensities

13.0

13.5

14.0

14.5

15.0

15.5

16.0

16.5

17.0

17.5

AC k

Wh/

kg A

l

WorldEuropeChinaNorth AmericaSouth AmericaGCC

www.world-aluminium.org

Smelting Power Mix (GWh)

www.world-aluminium.org

Perfluorocarbons (PFCs)

0

10

20

30

40

50

60

70

80

90

100

Mill

ion

tonn

es

Annual Primary Aluminium Production (Mt Al)Total Annual PFC Emissions (Mt CO2e)

www.world-aluminium.org

Carbon Footprint

0

2

4

6

8

10

12

14

16

18

1990 1995 2000 2005 2012 GLOinc China

2012 ROWex China

kg C

O2e

/kg

Al

Perfluorocarbons (PFC) Electrolysis indirect

Anthropogenic GHG Emissions by Sector

(total 50 Gt CO2e in 2010)

Industry18%

...of which Al production

<1%

Energy Supply

35%

...of which Al production

<1%

Transport14%

Buildings6%

Agriculture, Forestry & Land Use

23%

Waste3%

~ 800 Mt CO2e (2012)

Source: IPCC 2014, IAI

Opportunities to reduce GHG emissions through use of aluminium in:

• Green buildings;

• Lightweight vehicles;

• Protective packaging;

• Efficient machinery;

• Cables;

• Turbines & solar panels;

• Efficient consumer durables;

• Intelligent control systems.

• The use of 1 kg of aluminium replacing heavier materials in a car or light truck can save a net 20 kg of CO2 over the life of the vehicle;

• This figure is even higher for more weight sensitive applications(for instance, up to 80 kg CO2 per kg aluminium used in trains);

• The 17 million tonnes of aluminium used in transport in 2012 could save almost350 million tonnes CO2 and over 100 billion litres of crude oil over the vehicles’ lives.