environmental report 2001 - k-plus-s.com · environmental protection staff function environmental...

Environmental Report 2001People. Nature. Our world.

Key data on the K+S Group

Revenues

Potash and Magnesium Products

COMPO

fertiva

Salt

Waste Management and Recycling

Services and Trading

Earnings before interest and taxes (EBIT)

Earnings before income taxes (EBT)

Net income

Capital expenditure

Employees as of Dec. 31

Net income per share

2001

2,179.4

967.4

436.2

500.2

165.1

63.5

47.0

120.6

121.1

118.3

157.9

9,775

2.73

2000

2,087.9

963.2

331.6

552.2

114.9

76.8

49.2

126.8

130.4

119.8

141.7

9,402

2.72

€ million

€ million

€ million

€ million

€ million

€ million

€ million

€ million

€ million

€ million

€ million

€

Contents

4 Preface

6 Our contribution to a sustainable, future-compatible development

8 Responsibility for the environment; our environmental protectionmanagement system

12 Our spending on environmental protection

14 Potash and Magnesium Products Business Segment

18 COMPO Business Segment

22 Salt Business Segment

26 Waste Management and Recycling Business Segment

30 Services and Trading Business Segment

34 Outlook

36 Appendix

38 Sites

39 Glossary

3

The fertiva Business Segment and the information technology and consulting units of theServices and Trading Business Segment are sales or service segments. The small numberof aspects of relevance for the environment are therefore not discussed separately in theEnvironmental Report.

4

The sustained protection of our environmentis a significant element of a constantlyrenewing contract between the generations.We are pursuing this principle at K+S throughsafe and environmentally compatible pro-duction and operating. Intelligent productionprocesses, which save both energy andresources, ensure that unavoidable interven-tions in the ecological system are as gentleas possible. Our guidelines on environmen-tal protection and industrial safety, whichare observed uncompromisingly in the K+SGroup, also pursue this aim. In 2001, weestablished a standing committee com-posed of executives and employee represen-tatives from all segments of the business, tocoordinate the overlapping needs of theprotection of labour, health and the environ-ment in the Group and to harmonise theseto common aims.

We handle our raw materials responsiblyand continuously optimise our productionprocesses, in order to extract the maximumamount of usable substances from the saltsthat have been won. At the same time, weare reducing the residues long-term to anunavoidable minimum. In 2001, we estab-lished a new production facility at our Sig-mundshall plant, which applies the ESTA®

electrostatic separation process. This pro-cess, which saves both energy and water,will also enable us to extract kieserite in thefuture, in addition to potash minerals, froma newly opened-up salt deposit.

Preface

The water protection, prevention of air pol-lution, optimisation of energy, consequentavoidance of waste and carefully directedmonitoring of the environment are assignedgreat importance at K+S. We have achievedfurther success here in recent years. Forinstance, a newly developed control systemenables saline wastewater to be dischargedinto the river from the Werra plant so consis-tently that the prescribed thresholds for theUlster/Werra river system can adhered to,certainly and constantly.

5

We set store in the course of our logisticalactivities on carefully directed relief of theroads. Thus, we have replaced lorries withinland waterways barges for the transporta-tion of containers from our plants in Bernburgand Zielitz to Hamburg.

Our latest Environmental Report discussesour main activities over the last five yearswith data and facts, and should also maketransparent the long-term developments.We are engaged in open discussions withall interested groups, and regard this reportas an important element of our corporatecommunications.

Gerd GrimmigMember of the Board of ExecutiveDirectors of K+S Aktiengesellschaft

Dr. Hans-Georg BäthgeEnvironment and Industrial Safety

5

6

Our products extracted on the basis ofindigenous raw materials can be found inagriculture, many branches of industry andin private households. We are present asmarket leaders in Europe and worldwidewith a large number of specialities andbrands. Our raw materials and productsflow as primary materials into the goods ofother manufacturers.

Comprehensive and farsighted planningand the strategic, technical and economicinterlinking of all business fields characteriseour group of business enterprises. This net-working creates special opportunities forsuccess in the markets, in the competitionand at our customers. This corporate inter-linking is supported by wise investment,acquisition and cooperation policies.

K+S makes an important contribution withits potash and magnesium fertilizers to thefeeding of the world population. Since theareas of the globe that can be used for agri-culture are limited, the continuous increasein world population necessitates more inten-sive use of the areas that are available forthe growing of foodstuffs. Since plants, inaddition to light, air and water, also needmineral nutrients, only purposive and sus-tained nourishment of the plants results inan optimum yield of the harvest products.Sustained soil fertility necessitates the regularreplacement of the nutrients that the plantswithdraw from the soil. In addition to nitrogenand phosphates, these include such mineralsas potash, magnesium and sodium, as wellas sulphur and further trace elements.

COMPO offers hobby gardeners a com-prehensive range of high-quality brandedproducts. The portfolio ranges from pottingsoil through plant care products and lawnand garden fertilizers to pesticides. In theprofessional area, we supply complex ferti-lizers for horticulture and special crops, aswell as controlled release fertilizers for lawns,sports fields and public green spaces.Specialities for nurseries and demandingornamentals round off the high-qualityCOMPO product portfolio.

Our extremely pure pharmaceutical salts andsalt specialities are essential for the main-tenance and restoration of human health.Sodium and potassium chloride pharma-ceutical substances are required for infusionand dialysis solutions and are essentialelements of alimentary therapeutics, in orderto supplement the body’s reserves of

Our contribution to a sustainable, future-compatible development

nutrients in the case of illness. We also offerour food grade salts with the additionalingredients such as iodine and fluoride,whose use is recommended by the WorldHealth Organisation.

The main sales area of our various de-icingproducts is winter road maintenance safetysystem. Without the use of road salt, thewinter road conditions would lead to asharp increase in the number of accidents.By developing a pre-wetted salt technique,we have minimised the necessary quantitiesof salt, without influencing its effectiveness.

Our sustainable waste disposal conceptsare calculable on a long-term basis and areenduringly safe. The geological propertiesof our salt deposits guarantee reliable, long-term safe isolation of the deposited wasteproducts from the biosphere. The holisticapproach of our concepts also applies toour recycling activities. Valuable substances,from building rubble to salt slag, are pro-cessed and prepared for re-use.

One of the main challenges of our age is toharmonise the increase in world populationand a caring relationship with nature, for thenext generation, for the future of our worldand therefore also for the K+S Group.

We at K+S offer solutions for this: innovativeproducts and services for life and growth.

8

The protection of the environment and safetyat work are rated just as highly at K+S asthe quality of the products and the efficiencyof our business activities.

Our environmental protection and safety atwork guidelines serve us as guiding princip-les, and should also help us in the future toensure safety at work and health protectionfor our employees in all areas and to applyproduction processes and services that saveenergy and resources.

Responsibility for the environment:our environmental protection management system

We are all too well aware that environmen-tally compatible and safe production andoperating can only be successful and sus-tained with the dedicated participation of allour employees. We therefore set up a jointstanding committee in 2001 to coordinatethe overlapping needs of the protection oflabour, health and the environment in theK+S Group. It is composed of equal numbersof executives and employee representatives,and is chaired by the responsible memberof the Board. His deputy is the Chairman ofthe Group Works Council.

Our guidelines for the protection of the environment

• Optimum economic efficiency and comprehensive

environmental protection are equal-ranking aims.

• Contamination of mankind and the environment

during the production, storage, transportation, sale

and use of the products should be minimised.

• Laws and regulations issued by the authorities for

the protection of the environment must be complied

with and, in addition, anything necessary of which

we become aware should also be tackled without

delay, without any demands from the authorities.

• Facilities, products, emissions and waste

management should be monitored at our own

responsibility.

• All technical processes, organisational acts and

services must be constantly reviewed and con-

tinuously improved with regard to their effects on

mankind and the environment.

• In order to preserve the resources, all production

processes should be designed so that the

consumption of raw materials and energy is

minimised.

• Employees must be trained further to encourage

their environmental awareness and self

dependent behaviour.

• Knowledge of the protection of the environment

should be enhanced in open dialog with the general

public, and the exchange of knowledge and

experience with the authorities, trade associations,

politics and science intensified.

9

K+S Aktiengesellschaft

Business segment

Site

Environment and IndustrialSafety staff function

Environmental Protection staff function

Environmental Protection staff function

K+S has a network of environmental protection specialists. Depending on the environmental relevance, they aredirectly assigned either to a business segment or to a site.

In addition, we have brought together thefunctional areas of environmental protectionand safety at work in a joint field of respon-sibilities.

This unit is responsible for the coordination of,advising on and control of environmental pro-tection and safety at work in the K+S Group.Through regular information seminars forexecutives, environmental commissionersand safety at work experts, it ensures therapid implementation of new findings in thefield of safety, health and environment. OurIntranet provides an extra service for ouremployees with monthly updated legal texts.

Our environmental commissioners monitorcompliance with the respective laws andorders, as well as the internal regulations.They advise their business segments andsites on all aspects of corporate protectionof the environment.

As pure sales and service units, the fertivaBusiness Segment and the informationtechnology and consulting business units donot have environmental protection specialistsof their own. Aspects of relevance for theenvironment are therefore, where necessary,taken care of centrally.

We attempt through targeted on-the-jobtraining in particular to intensify the awarenessof risks of accidents at the workplace. Therewere nevertheless 84 reportable accidentsin 2001, compared with 90 in the previousyear. With 5.2 reportable accidents per millionworking hours, the accident rate at K+Scontinues to be much lower than the com-parable figures for the Mining Employees’Accident Insurance Association (21.4 in 2000)and the Industrial Employees’ AccidentInsurance Associations (24.0 in 2000). OurPersonnel and Social Report contains furtherinformation on safety at work and healthprotection in the K+S Group.

10

K+S joins the HessianEnvironmental AllianceK+S has been a member of the HessianEnvironmental Alliance since 2000. TheEnvironmental Alliance’s aim is to achieveimprovements in corporate protection of theenvironment on the basis of voluntary agree-ments between industry and the state govern-ment. In return, the state government grantsrelief to the member companies in the exe-cution of the administrative orders, and alsostrengthens Hesse as an industrial location.On this basis, ecological aims can be achievedmore quickly and cost-effective in the inte-rests of market-oriented environmentalpolicies.

K+S was awarded membership of theEnvironmental Alliance on account of itsspecial achievements in environmental pro-tection, especially the reduction of emissionsand the reduction and control of wastewater.The project is based on the Agenda 21resolved in 1992 at the UN conference inRio de Janeiro. Economic, ecological andsocial aims should be harmonized with oneanother to a sustainable development.

As a matter of course, we pursue the conceptof foresighted environmental protection justas intensively in all the other German federalstates in which we are engaged.

Protection of the climate –emission tradingWe support the worldwide efforts for betterprotection of the climate, and are thereforeparticipating in German industry’s self-obli-gation on the preservation of the climate,which aims to reduce CO2 emissions by 25 %,compared with 1990, the Kyoto referenceyear, by the year 2005.

The potash industry already recorded con-siderable achievements in the nineties in thereduction of emissions. While CO2 emissionsin 1990 still amounted to about 4.7 million t,they had been reduced by the year 2001 by3.7 million t to some 1 million t.This is mainly due to:· the shutdown of plants in the old and new German states (some 1.5 million t)· switching from firing with lignite to natural gas (some 1.5 million t)· the increase in energy efficiency through the use of gas turbines and heat recovery plant (about 0.7 million t).

The efficiency factor of our power stations inthe meantime exceeds 90 %. The technicalpossibilities for the reduction of emissions havetherefore almost been depleted.

1990 1991 1992 1993 20011994 1995 1996 1997 1998 1999 2000

1

0

2

3

4

5

Development of CO2 emissions by the German potash industry in millions of t

4.76

1.03

1010

Like the potash industry, German industry hasproved in recent years that this self-obligationon the preservation of the climate can make amost successful contribution to the reductionof CO2 emissions in Germany and Europe.

We are therefore following with great concernthe EU Commission’s plans for the introductionof cross national compulsory emission tradingfor companies. In our opinion, the systemannounced so far cannot be harmonisedwith the self-obligation of German industrybecause the promises of the industries on thereduction of emissions will inevitably losetheir business basis with every intersectoralsale of emission rights.

It will therefore not be particularly helpful forthe protection of the climate if the successfulGerman model of a voluntary self-obligation,whose effectiveness has already been proved,has to be given up in favour of an emissiontrading, which is so far completely unclearand exceedingly complicated.

12

Our spending on environmental protection

Capital expenditureWe invested € 37.3 million over the last fiveyears in the improvement of environmentalprotection, primarily in the areas of protectionof rivers and lakes, the prevention of airpollution and waste management.

The main focuses in the area of the protectionof rivers and lakes were:The new conception of the processing ofresidues at the Unterbreizbach location, whichresulted in a considerable reduction in thesalt burden in the River Werra.The control of the discharge of salinewastewater at the Werra works, which avoidsfluctuations in the salinity and therefore thedisturbance of the ecological equilibrium inthe Ulster/Werra river system.

In order to improve the prevention of airpollution, we have brought the dedustingequipment at our production locations up tothe latest state of the art.Further investments flowed into the con-tinuation of the optimisation of our powerstations. Worthy of special mention is theintroduction of condensing technology at theNeuhof-Ellers plant in 1998 and the Werraand Zielitz plants in 2001.

The investments in the area of wastemanagement ensure the environmentallyfriendly operation of the operative locationsof the Waste Management and RecyclingBusiness Segment.

Capital expenditure on environmental protection in € million

Water protection

Prevention of air pollution

Waste management

Nature conservation

Total

1997

8.1

1.0

0.0

0.0

9.1

1998

3.1

0.1

0.0

0.0

3.2

1999

10.0

0.6

0.7

0.4

11.7

2000

3.7

1.5

1.1

0.2

6.5

2001

5.0

1.6

0.0

0.2

6.8

Operating expensesAs a consequence of the expansion of ourbusiness fields, our operating expenses onenvironmental protection went up between1997 and 2001 from € 65.4 million to€ 81.9 million, an increase of 25 %. Heretoo, the field of water protection, with almost65 %, accounts for the lion’s share. The sharpincrease in the expenses for nature conser-vation in 2001 was mainly due to the approvalprocedures (for instance reforestation mea-sures) for the extension of our tailings piles.

Operating expenses for environmental protection in € million

Water protection

Prevention of air pollution

Waste management

Nature conservation

Other

Total

1997

45.5

16.1

1.6

0.2

2.0

65.4

1998

44.3

16.5

1.3

0.3

3.3

65.7

1999

43.9

17.0

1.5

0.3

2.1

64.8

2000

46.0

16.8

1.6

0.4

2.7

67.5

2001

52.9

18.6

3.5

4.8

2.1

81.9

14

5

0

10

15

20

25

30

35

40

Residues in million t

1997 1998 1999 2000 2001

Disposal of residues as backfill (including hydraulic filling) Residues dumped on tailings piles Solid and dissolved production residues

ResiduesOur potash deposits contain 14-31 % po-tassium chloride and 10-25 % kieserite.A quarter of the crude salt that is extractedcan be utilised commercially. More than 80 %of the unusable residues, mainly rock saltwith impurities of potassium chloride, kiese-rite, calcium sulphate and clay minerals, occurin a solid form. The rest are saline solutions.

Only a small portion of the solid residues,roughly 10 %, is used underground as so-called „backfill” to fill in the cavities resultingfrom extraction. Backfill is however notpossible at all locations, because suitablecavities must be available for this. Accordingly,the majority of the residues are dumped ontailings piles.

We are planning to extend the tailings pilesat the Neuhof-Ellers, Werra and Zielitz plants.All three locations carried out environmentalcompatibility tests and accompanying land-scape conservation plans in order to imple-ment and compensate the unavoidableinterventions in nature as carefully aspossible.

Production and depositsThe Potash and Magnesium ProductsBusiness Segment extracts crude potashand magnesium salts at six mines in Germany.We extracted and processed 38 million t ofcrude salt in 2001.

The coarsely crushed crude salt extractedunderground by the drilling and blasting pro-cedure is ground down further in the surfaceplant, and is processed, depending on itscomposition, by varying methods. Hot leachingor flotation is applied at locations with sylvinitedeposits. Crude salts from hard salt depositsare furthermore processed using the ESTA®

electrostatic separation method.

The end products mainly occur in a microcrystalline form during processing. Ourcustomers are however increasingly deman-ding coarse grained products. We thereforegranulate some of the processed potash andmagnesium salts subsequently. The granulesare sifted to provide the desired grain size.In individual cases, they are given furthertreatment, by dedusting, hardening androunding, to avoid grain destruction by trans-portation, loading, storage and spreading.

Since the autumn of 2001, we have beenexploiting a new hard salt deposit at theSigmundshall plant near Hanover. In orderto process the crude salt optimally, we haveconstructed an ESTA® plant on the site with acapital expenditure volume of € 42 million.The implementing of this plant will enable usin the future to extract 300,000 t of kieseritep.a., in addition to the production of potash.

Following the successful pilot project carriedout at the Sigmundshall plant, a certifiableenvironmental management system was alsoimplemented at other locations in 2001.It was issued in accordance with DIN EN ISO14001, the current ecology laws and thecorporate environmental protection guide-lines of the K+S Group.

Potash and Magnesium Products Business Segment

15

Modern co-generationWe generate almost all of the electricityneeded for the extraction and preparation ofthe crude potash salts in our own powerstations by combined heat and power gene-ration. Exclusively natural gas is employed asfuel for our power stations and drying plants.Other sources of energy, such as light fueloil, play a minor role, and are only used insmaller heating plant to generate roomheating. As a result of various optimisationmeasures in the co-generation and a connec-tion of the Werra power station to the network,the specific energy requirement was reducedbetween 1997 and 2000 from 143.7 kWhto 137 kWh per tonne of processed crudesalt (PCS). The slight increase in 2001 isdue to lower deliveries of electricity back tothe public network.

Specific carbon dioxide emissions have beenreduced over the last five years by 6 % to27.2 kg/t PCS.

Specific energy requirement in kWh/t PCS

143.7 143.3 139.5 137.8 139.0

1997 1998 1999 2000 2001

Specific carbon dioxide emission in kg/t PCS

28.9 28.8 28.0 27.5 27.2

1997 1998 1999 2000 2001

Operating supplies and fuelsWe need fuels in order to drive our machinesand vehicles above and below surface.They comprise 95 % diesel fuel and 5 %lubricants and oils. In addition, operatingsupplies, such as explosives for the under-ground extraction, chemicals for processingor anti-caking and dust-binding substancesadded during storage and transportation,are required.

The consumption of operating supplies andfuels depends primarily on the quantity of rawmaterials processed. The specific quantityof fuels used amounted during the last fiveyears to 0.4 kg/t PCS and that of operatingsupplies to between 1.3 and 1.5 kg/t PCS.

The use of operating supplies and fuels re-sults in waste products, which are subjectto the Recycling and Waste Products Act,such as packaging materials or used oilsand lubricants. Similar to performance theinput materials, the quantity of these wasteproducts is also linked to the processingquantities of the production plants. Theincrease in the quantities of waste in 2001is therefore mainly due to the higher through-put of crude salt. The reutilization rate of thewaste products that arise is between 70 %and 80 %.

The past five years were marked by wide-ranging construction and restoration work,so that the construction waste of 12,000 tin 1997 increased to 56,000 t in 2001.

We have pushed the restoration of the roofsof the warehouses at our sites, and havereplaced old coverings made of cement-bonded asbestos with environmentally friendly,harmless covering materials.

Condensing technology was implemented atthe Werra and Zielitz plants in 2001. As aresult of the insertion of heat exchangers inthe waste gas streams, the residual heat fromthe waste gas from the power stations can beused in future to warm up boiler feed water orto heat the haulage shaft. This principle hasproved its worth since 1998 at the Neuhof-Ellers plant, where identical equipment is inuse.

16

Water protectionThe residues occurring as saline solutions arein part discharged into the rivers as waste-water, complying with thresholds defined bythe authorities, or sunk into suitable geologicalformations, such as platy dolomite, below thewater table.

Discharge and deep well injection of salinewastewater is carried out in accordance withthe licences issued by the authorities. A newfor deep well injection permit was issued inNovember 2001 to the Wintershall and Hattorfsites of the Werra plant.

The Neuhof-Ellers plant brought a new deepwell into operation at the end of 2000. Thishas also ensured for the future that sufficientquantities of the saline wastewater inevitablyoccurring during the production of potashcan be sunk, so that the River Fulda ecologysystem will be contaminated as little aspossible.

Most of the wastewater consists of thecooling water necessary to run the plants. Theriver water employed for this is not changedchemically through its use in production, butmerely undergoes an increase in temperature.The portion of the cooling water that is notusable in the manufacturing process is fedback into the rivers, complying with the definedtemperature thresholds.

The overall quantity of wastewater remainedmore or less constant over the last five yearsat about 80 million m3, whereby the share ofsaline wastewater could be reduced from25 % in 1997 to 20 % in 2001. This decreaseof about 4 million m2 is mainly due to a changein the processes at the Unterbreizbach site.Since the construction of plant for the proces-sing of residues in 1997, it is now possiblehere to separate in solid form the rock saltthat cannot be reutilised, and to dispose itin an environmentally friendly way by meansof hydraulic filling.

At the beginning of 2000, we put a newlydeveloped discharge control system on streamfor our Werra plant. This enables us to observethe prescribed thresholds for the river systemwith certainty. Due to the control system wecan avoid fluctuations in chloride concentrationand therefore disturbances to the ecologicalequilibrium. The control of the discharge hasalso affected the deep well injection of brines.The optimum discharge has resulted in areduction in the quantities injected, preser-ving valuable injection cavities.

Share in 1997 Share in 2001

11 %

9 %

80 %

13 %

12 %

75 %

Feeding in of wastewater

Cooling water Feeding in of saline wastewater Deep well injection of brines


18

Production and sitesCOMPO manufactures its products throughoutEurope. The German sites are in Münster andKrefeld, and the Uchte peat and humus plant.

The Münster site produces solid and liquidcomplex fertilizers for the hobby and profes-sional areas. The raw materials delivered to thesite are mixed in various plant, depending onthe desired product, and confectioned in semior fully automatic filling equipment in a com-mensurate form for the users.

The Krefeld plant is the largest productionlocation and, as a result of its favourable trafficlinks, is COMPO’s logistics platform. Granu-lated complex fertilizers and liquid fertilizersare produced here. The product portfolio iscompleted by stabilised (ENTEC) and coatedfertilizers.

Energy requirement constantdespite expansion of productionThe ENTEC fertilizers product line was intro-duced at the Krefeld site in 2000, resultingin an increase of some 100,000 t in the pro-duction quantity compared with 1999. Themanufacture of these ENTEC fertilizers is apurification process that is accompanied by arelatively low input of energy. Consequently,the energy requirement could be kept almostconstant over the last five years, despite theconsiderable increase in quantities.

COMPO Business Segment

Energy requirement in GWh

1997 1998 1999 2000 2001

69

80

73 74 76

Reduction in dust emissionsWe completed a project at our Krefeld siteat the end of 2001 for the reduction of dustemissions in the cooling of the manufac-tured fertilizer granules. In addition to theimprovement in prevention of air pollution,we will also be able in the future to recoverresources contained in the dust.

20

Sharp decline in water consumptionThe fresh water employed in production ismainly used for the manufacture of liquid ferti-lizers and for cleaning purposes. Thanks toselective optimisation processes and thecorresponding motivation of the employees,the consumption of water could be reducedconsiderably in recent years.

Waste products at COMPO consist largely ofpackaging materials and pallets. The develop-ment of their quantities therefore more or lessaccompanies the input of operating suppliesand thus the production. Almost all of thiswaste can however be reutilised. This alsoapplies to waste from production, which issimilarly reintroduced into the productioncirculation system. As a consequence, onlya small portion of 3-4 % of the total quantityof waste remains to be disposed.

Wastewater in '000 m3

1997 1998 1999 2000 2001

150161 156

123 128

Water requirements in '000 m3

1997 1998 1999 2000 2001

465 473511

484

389


21

Extraction of peat andrenaturisation in harmonyThe Uchte plant is also a COMPO productionlocation. Peat is extracted here and thenprocessed into potting soil.

The peat is extracted in accordance with avalid soil removal permit by the milling processin the so-called three-field system (extraction,top soil and fallow fields). In the first step, thetop soil is pushed aside and stored in theinterim, so that it can later form the basis forthe renaturisation. The extraction field fromwhich the top soil has been removed is firstof all loosened mechanically to a depth of2-3 cm. The loosened material must then beallowed to dry for several days, dependingon the weather, and then brought to theprocessing plant by a light railway.

Renaturisation measures commence after thepeat harvest. The field is bulldozed and levelledin accordance with the requirements pre-scribed by the nature conservancy. Once it hasbeen released by the nature conservancyauthorities, top soil is then spread from thefallow areas. Following the completion of thiswork, the drainage ditches for the respectivesections are closed. The desired water surpluscan set in, and the growth of the bog ispossible again.

New extraction areas will have to be exploitedin order to ensure the supply of raw materialsin the long term. COMPO already implementedrespective approval procedures in 1997.

22

Production and sitesThe products of the Salt Business Segmentare manufactured at the German sites inBernberg and Braunschweig-Lüneburg,and, since August 2000, at Frisia Zout B.V.in the Dutch town of Harlingen.

The Salt joint venture between K+S and SolvayS.A. was approved by the EU competitionauthorities in January 2002. The registeredoffice of the new company, which is calledesco – european salt company – , will be inHanover. esco will in the future produce about5 million t of salt per year at its productionsites in Germany, the Netherlands, Belgium,France, Spain and Portugal.

Salt is won either by being extracted in minesor through solution mining. Extraction in minesis carried out by the drilling and blasting proce-dure. The salt that has been blasted loose isprocessed by being crushed, milled andsieved.

Brine is produced by the controlled drill-holesolution mining procedure. In this connection,freshwater is pressed via a borehole into thesalt deposit, to dissolve the salt and at thesame time to force out the brine that is alreadysaturated. This is pumped to the surface,where it serves as a raw material for thechemical industry or is used for the extractionof evaporated salt. Because of the imper-viousness and stability of the salt rock, thecavities (caverns) created by solution miningcan be used for the underground storage ofnatural or liquefied gas.

The crude brine that has been extracted ispurified and then processed in an evaporationplant. The salt that crystallises here is markedby the highest degree of purity and completesolubility.

Both rock salt and evaporated salt have tobe confected before being despatched to thecustomers. In addition to the various despatchand packaging forms, this process includesthe addition of preparation substances specificto the applications.

Salt Business Segment

25

Changed product structureFollowing the acquisition of Frisia Zout B.V.,the output of the Salt Business Segmentincreased from some 3 million t in previousyears to 4.2 million t in 2001. At the same time,there was a significant change in the distri-bution of the products. While evaporated saltonly accounted for about 8 % of the businesssegment’s total output in 2000, it already, with1.2 million t, represented over a quarter ofthe total quantity in 2001.

An increase in the offering of high qualityproducts in line with the customers’ wisheshas also inevitably changed the ecologicalbalance sheet for the salt products. Comparedwith rock salt production, the extraction ofevaporated salt is associated with a higherinput of energy. While the figure for the years1997 to 2000 remained constant, the specificenergy requirement quadrupled in 2001.A final assessment of the key ratios for theyear 2001 will therefore only be possible inthe coming years.

The specific water requirement howeveralso remained constant in 2001.

Rock salt Evaporated salt Brine

Output in million t

4.0

2.0

1.0

0

3.0

1.8

1.11.1

1.2

1.2

1.3

1.6

2.1

1.41.7

0.20.2

0.2

0.2

1.2

1997 1999 2000 20011998

Specific water requirement in m3/t PCS

1997 1998 1999 2000 2001

1.1

1.3

0.9

1.1 1.1

The additional quantities of operating suppliesemployed result almost entirely from the useof chemicals for brine purification in themanufacture of evaporated salt.

Despite the increase in the production capacityand the expansion of the business segmentby a further location, the quantities of wastecould be kept constant. The share of reutilisedwaste already amounted in 2001 to over 80 %.

Operating suppliesand fuels used in '000 t

1997 1998 1999 2000 2001

4.9

0.8

5.4

0.8

5.1

0.9

5.4

0.8

24.3

1.0

Operating supplies Fuels


27

The Waste Management and RecyclingBusiness Segment uses the cavities in themines created in the mining of crude salt inthe Potash and Magnesium Products and SaltBusiness Segments, and offers tailor-madesolutions for the recycling needs of thecustomers.

Disposal of wastes inunderground depositoriesWe guarantee the highest degree of securityat our two underground depositories at Herfa-Neurode in Hesse and Zielitz in Saxony-Anhaltthrough a combination of geological andtechnical barriers. Accordingly, we only usewater-free and gas-tight cavities in carefullyinvestigated rock formations. Well-conceivedtechnical barriers seal the depository cavernsfrom biosphere, so that they are free frommaintenance and long-term secure. Theytherefore provide an ecologically secure finaldisposal location for incineration residues, soilpolluted with heavy metals and other inhe-rited environmental burdens, as well as forwastes from chemical, electrical and metalindustries.

Underground reutilizationof non-mining substancesThe physical properties of non-mining wastesare exploited for the reutilization process in theK+S Group’s four reutilization facilities. Specialcavities are filled with waste substances tostore them safely for a long period.

Together with a partner, we process less-contaminated wastes, such as excavated soil,fly ashes or boring sludge at our Bernburglocation in Saxony-Anhalt, to form a specialmine infill mixture, which is brought into theextraction chambers that are to be secured.

At our underground reutilization facility atHattorf in Hesse, pneumatically conveyablecontaminated wastes in dust form are con-ditioned with liquids in accordance with specificrecipes developed by our chemists. The newsubstance, which is hardened in big bags,can then be handled safely and is stacked inunderground cavities. The remaining spaceis then completely filled up with salt.

A substance capable of being pumped (thickmatter) is produced in special conditioningplant for the filling of the high extraction cham-bers at our site at Unterbreizbach inThuringia. This can be placed in the cavitieswithout any problems, and hardens therewithout the addition of fluids. The patentedprocess is used for instance for residues fromrefuse incineration plants and sewage sludgeincineration ashes.

Waste Management and Recycling Business Segment

28

Recycling of less contaminatedsoils and building rubbleKali und Salz Bauschutt-Recycling processessoils and building rubble in a special processand spreads them on the tailings pile at theformer potash mine at Friedrichshall nearSehnde. The resultant covering provides thebasis for plant growth and significantlyreduces the leaching of salts.

Recycling of valuablesubstances from salt slagK+S supplies high quality smelting salts foroptimum technological yields in secondaryaluminium foundries. After taking back thesalt slag resulting in this process as a wasteproduct, we then reprocess it in the REKALfacility, which was developed by our company.Reusable salts and metals, as well as a sub-stratum for the planting of grass on the tailingspile at the Sigmundshall plant, are won inthis way.

Development of quantities in '000 t

1997 1998 1999 2000 2001

200

0

400

800

1,000

1,200

Aluminium salt slag recycling Underground depositories Underground reutilization Building rubble recycling/soil processing

600

Waste Management and Recycling Business Segment

Thermal soil cleaningSoil with highly concentrated organic con-tamination can be treated thermally withmodern processes, in order to dissolve outthe pollutants. In 2001, we acquired a 25.1 %investment in AAE Abfall- und Altlasten-Entsorgungsgesellschaft mbH, Bremen. Thiscompany has many years of experience in thearea of soil decontamination, and operatesplants in Deutzen and Bremen for the thermaldesorption of mainly chemically contaminatedsoils. Hereby, the soil is heated in a revolvingtubular kiln until the organic contaminationvaporises and is completely burnt in a post-combustion chamber. The temperature inthe revolving kiln is selected so that the finestructure and water absorbency of the soilare largely retained. The remaining quantityof inorganic pollutants is generally so lowthat the decontaminated soil can, amongstother things, be used for filling purposes, andthereby replaces other valuable substances.

31

Miscellaneous activities are bundled in theServices and Trading Business Segment. Inaddition to product handling, the logisticssubsidiaries, Kali-Transport Gesellschaft mbH(KTG) and German Bulk Chartering GmbH(GBC) in Hamburg and UBT See- und Hafen-Spedition GmbH, Rostock (UB), are alsoengaged in the chartering of ships, and workin addition as seaport forwarders and shipagents. The granulation of the Catsan® animalhygiene product for Masterfoods GmbH isalso assigned to this business segment.

The IT activities of data process GmbH, tradingbusiness of Chemische Fabrik Kalk GmbH(CFK) in Cologne and the analytical and con-sulting services provided by K+S ConsultingGmbH and its subsidiary, Bio-Data GmbH,furthermore belong to this segment. Sinceinformatics and consulting are pure serviceactivities, they are not discussed explicitly.

LogisticsThe main tasks of the logistics unit are theprocurement of logistical services and theoptimisation of the logistics under economicand ecological aspects, with the main em-phasis on the consequent utilisation of syner-gies overlapping the business segments.The minimisation of empty journeys throughthe pairing of the loading of lorries (in bothdirections) and the maximum use of the trans-portation media, rail and ships, can bementioned here.

On account of the geographical location of itsproduction sites, K+S has traditionally beenstrongly associated, as a bulk products for-warder, with the railways. The transport affinityof the products (mainly loose bulk goods) alsocontributes to this. K+S is accordingly one ofGermany’s largest railway forwarders. Theproducts also find their way to the customersvia a further environmentally friendly bulkgoods carrier, through the railway – inlandwaterways barges or railway – ocean-goingships transport chain.

Services and Trading Business Segment

In July 2001, we established a regular inlandwaterways service for the transportation ofcontainers from Haldensleben on the Mittel-landkanal to Hamburg. The switch to inlandwaterways barges will eliminate about 700 lorrytrips per year in the first step. This alternativemeans of transportation, which is also availableto other forwarders, will relieve the roads ona permanent basis.

Our logistical services also include the pro-curement and control of packaging materialsappropriate to the products. Commensurateagreements between K+S and its contractualpartners from the waste management industryensure the reutilization of the plastic andpaper packaging in use.

32

Granulation of Catsan®

We granulate the Catsan® animal hygieneproduct on behalf of Masterfoods GmbH atthe Salzdetfurth plant, which is manufacturedfrom aerated concrete with high absorbentproperties that is delivered to the site. Thegrains are dried and then treated with minerals,and, following protective sieving, are packedin sacks and stacked on pallets. The productis despatched by rail and in lorries.

As a result of selective improvements, thequantity of unusable raw materials has beenconsiderably reduced since 1997.

The production at the Salzdetfurth site usesno process water whatsoever. It is howeverunavoidable that various parts of the plant,such as compressors, have to be suppliedwith cooling water. A further key utilizationarea is the condensing and cooling of surplussteam from the production of raw materials atthe neighbouring supplier. The condensate,which is included, is returned and used inproduction. This link results in a considerablereduction in the consumption of fresh waterby the supplier.

Services and Trading Business Segment

The necessary river water is extracted in adam and brought to the plant in a pipeline.The construction of a fish ladder at thisbarrage in 2000 has guaranteed the passageof the fish for the first time since the barragewas originally built.

35

Conserve resources –increase efficiency and effectivenessOne of our most important corporate aimsis to enhance our efficiency and effectivenessin all areas, while employing our resourcesas thriftily as possible. The interlinking of thebusiness segments within the K+S Groupresults in the optimum use of mutual synergyeffects. Thus, a comprehensive know-howtransfer on the protection of the environmenttakes place at the same time.

Our customers and partners acknowledge, inequal measure, our considerable competenceand specific knowledge in the areas of nutritionand health, and of environmental protectionand safety. We will also continue to supportand develop these special strengths withselective investment and acquisition policies.

As regards environmental protection, our mainattention is directed towards the environ-mentally friendly extraction of raw materials,the development of innovative productionprocesses and the efficient, environmentallyfriendly transportation of our products.

We are facing up to our responsibility for acaring relationship with the environment bycarrying out the necessary interventions innature as gently as possible, in the interestsof the coming generations and for the futureof our world.

Our innovative products and services offerwell conceived, intelligent solutions for healthylife and growth.

Outlook

36


InputProcessing of crude saltTotal energyTotal waterFuelsOperating supplies

199735.9

5,13883.514.751.5

199837.2

5,31483.815.055.5

million tGWh

million m3

'000 t'000 t

199936.6

5,10380.415.253.0

200035.8

4,93978.415.448.1

200138.0

5,22783.215.651.2

OutputTotal products

Carbon dioxideCarbon monoxideNitric oxideSulphur dioxideHydrochloric acidDust

Construction wastesReutilized waste *Waste disposed of *Special waste *

Piled residuesBackfill (incl. hydraulic filling)

Cooling waterDischarge of salt water to riversDeep well injection of brines

* excl. Construction wastes

19978.1

1,036303

1,4703060

374

11.914.4

3.67.0

21.01.2

62.210.7

9.7

19988.2

1,069249

1,434293782

38.28.43.71.1

21.81.7

62.410.4

8.4

million t

'000 tttttt

'000 t'000 t'000 t'000 t

million tmillion t

million m3

million m3

million m3

19998.2

1,026233

1,507293590

33.99.04.11.3

21.22.5

64.07.18.8

20007.9

986263

1,398244473

22.110.7

3.41.5

21.72.4

61.87.37.3

20017.8

1,034153

1,267243855

55.514.1

4.71.6

22.92.6

63.78.57.2


InputRaw materialTotal energyTotal waterFuelsOperating supplies

1997221.7

68.7465.3129.2

2.9

1998224.5

79.9473.1131.1

4.3

'000 tGWh

'000 m3

tt

1999237.4

73.0511.1140.1

7.9

2000264.1

74.2484.0165.0

9.2

2001273.1

75.6389.0176.2

2.8


Carbon dioxideCarbon monoxideNitric oxideSulphur dioxideAmmoniacDust


Total wastewater


1997413.9

15.41.0

50.387.010.528.3

03,204

15043

150.3

1998406.8

17.81.2

56.6101.0

10.327.6

03,357

14145

160.7

'000 t

'000 tttttt

tttt

'000 m3

1999417.4

17.81.2

56.5101.0

10.327.6

03,604

15066

155.7

2000514.0

15.01.1

127.586.010.528.1

03,707

15049

123.3

2001530.1

16.71.2

116.094.9

8.721.1

04,653

15946

127.8

Appendix

37

The environmentally relevant key data for theWaste Management and Recycling BusinessSegment is included in the figures for thePotash and Magnesium Products BusinessSegment.


InputProcessing of crude saltTotal energyTotal waterFuelsOperating supplies

19973.2

1403.50.84.9

19982.9

1423.60.85.4

million tGWh

million m3

'000 t'000 t

19993.5

1423.30.95.1

20002.9

1403.30.85.4

20014.28334.61.0

24.3


Carbon dioxideCarbon monoxideNitric oxideSulphur dioxideDust


Total residuesBackfill

Total wastewaterCooling water


19973.0

16.02.8

22.015.02.3

4.11.00.969

159.1159.1

35.60

19982.8

11.72.6

10.01.61.4

0.61.00.841

149.7149.7

28.20

million t

'000 ttttt

'000 t'000 t'000 t

t

'000 t'000 t

'000 m3

'000 m3

19993.5

11.12.37.80.31.2

0.41.00.564

200.3200.3

27.40

20002.9

10.92.67.60.41.3

0.71.20.895

225.8225.8

25.50

20014.2

133.467.845.3

0.51.3

0.31.60.3163

269.6244.4

22.229,846

3838

Sites

19

22

23

18

20

21

Sites of the K+S Group in Europe

6

12

73

2

9

1415

1716

1

11

45810

13

123456789

1011121314151617181920212223

RostockHamburgUchteZielitzGraslebenLehrteWunstorfSehndeMünsterSalzdetfurthBernburgKrefeldKasselHeringenPhilippsthalUnterbreizbachNeuhofHarlingenDeinzeChâteau RenaultRoche-lez-BeaupréRavennaCorinth

39

Imprint

K+S Aktiengesellschaft

Bertha-von-Suttner-Straße 7D-34131 Kasselwww.k-plus-s.com

Glossary

Trade name for fertilizer containing an ammonium stabiliser. This delays the conversion of ammonium to nitrate.

Electrostatic preparation procedure, which exploits different electrostatic conducting properties of the surfaces of the individualsalts in order to separate the crude salt components. Finely ground crude salt is treated with specific conditioning substancesunder defined climatic conditions. This causes the various salt components to become differently charged, so that they canthen be separated, depending on how they are charged, in a high-tension electric field in a so-called gravity separator.

A preparation process that exploits the possibility of sorting mineral conglomerates through fine separation in water. Thefinely ground crude salt is mingled in a salt solution introduced to the circulation. The potassium chloride crystals areattached to bubbles with the help of added chemicals, and float to the surface of the solution.

Crude salt, consisting of potassium chloride (KCl), sodium chloride (NaCl) and Kieserite (MgSO4.H20). The proportions

of useful ingredients are between 13 and 20 % potassium chloride and 10 and 25 % Kieserite.

While the solubility of sodium chloride remains almost constant over a large range of temperatures, the solubility ofpotassium chloride increases as the temperature rises. The hot dissolution process exploits the different behaviour ofthe two components of crude salt for the enrichment and cleansing of the potassium chloride.

Solid residue is converted into sludge in a salt solution and pumped into suitable mine cavities. The salt solution is thenpumped back to the surface and introduced into the plant’s circulation system.

Mineral component of hard salt with the composition MgSO4.H20.

Processed crude salt

A porous and fissured geological formation at a depth of some 350 m, already naturally containing salt water and sealedabove and below by watertight layers of clay.

Crude salt consisting of potassium chloride (KCl) and sodium chloride (NaCl). The potassium chloride content isbetween 20 and 40 %.

Covering layer in bogs, which contains the seed material of the typical bog vegetation.

Design:

Roberts´werbeagentur GmbH, Kassel

Printing:

Boxan, Kassel

I/0702/4000/E

Editors:

Dr. Hans-Georg BäthgeDr. Reinhard Noack

Environment and Industrial SafetyPhone: ++49 (0) 561 9301 - 1604Fax: ++49 (0) 561 93854 - 5095

[email protected]

Katja SeegerCommunicationsPhone: ++49 (0) 561 9301 - 1322Fax: ++49 (0) 561 9301 - [email protected]

ENTEC fertilizer

ESTA® process

Flotation

Hard salt

Hot leaching process

Hydraulic filling

Kieserite

PCS

Platy dolomite

Sylvinit

Top Soil

K+S Aktiengesellschaftwww.k-plus-s.com

environmental report 2001 - k-plus-s.com · environmental protection staff function environmental...

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