ERAMET NORWAY

SUSTAINABILITY REPORT

2014

04 What’s good for the environment is good for business

06 ERAMET is a world leader in the production of manganese alloys

07 Eramet Norway – a part of ERAMET group’s manganese division

08 ERAMET – part of your daily life

10 ERAMETs operations in Norway

12 A city boy mans the furnace

16 Production of manganese alloys and consumption of raw materials

17 World-class, environmentally-friendly technology

20 A cornerstone of local education and training

22 Eramet Norways energy balance sheet for 2014

23 World´s greenest manganese alloy producer

24 Supporting future research at Eramet Norway

26 Dust exposure systematically reduced

28 Porsgrunn tackling major and minor green issues

30 Norwegian ferroalloy industry aiming high

32 Keeping an eye on the fjords

34 High-tech system can identify water leakage in furnace 12

34 An ethical supply chain

34 Waste as a resource

35 Environmental engineers strengthen our team

38 Improving the safety of our landfills

40 Updating of plant emission licences

43 Plant emission figures

46 HES figures

48 Key financial figures

50 HES policy

CONTENTS

Eramet Norway supplies refined manganese alloys to steel producers worldwide –

backed by Norwegian industrial traditions and

sustainable technology

by Bjørn Kolbjørnsen, CEO, Eramet Norway

WHAT’S GOOD FOR THE ENVIRONMENT IS GOOD FOR BUSINESSThe market situation for our products remained

challenging in 2014, with stiff competition and

low margins. Some of our competitors were

forced to mothball capacity, but Eramet

Norway’s plants remained fully operational,

except for a few scheduled maintenance stop-

pages. Given the market conditions, our finan-

cial performance was satisfactory – helped by

our cost reduction program, which is intended

to ensure that Eramet Norway remains one

of the world’s most efficient manganese alloy

producers in the years ahead.

We refine natural resources. Clean Norwegian

energy and rich manganese ore are the two

key ingredients that make our process efficient

in terms of CO2 emissions and energy efficien-

cy, but here too we see scope for improve-

ment.

Developing new, greener technologyIn 2014 we launched our master project to

develop and implement new, climate-friendly

technology that offers the potential for higher

productivity, lower CO2 emissions, and more

efficient energy use at our Sauda, Porsgrunn

and Kvinesdal plants.

The project is underpinned by many years of

research and development work, which has

revealed scope for reducing specific energy

consumption and CO2 emissions by up to 10

per cent. In the case of the Sauda plant, the

project also has the potential to bring a 30 per

cent increase in energy utilization. This is a

large-scale, long-term project that will require

dedicated work for many years to come.

The concept study that got under way in the

autumn of 2014 is intended to produce a

project plan for ongoing work in the first half of

2015. Enova has provided almost NOK 1 million

in financial support for the concept phase. The

obvious benefit of the project is that sound

business economics and environmental pro-

tection go hand in hand. Operating with even

greater energy efficiency will strengthen our

competitive position. The challenges for the

project lie in the level of capital expenditure

required and the risk of not succeeding despite

a decade of research. Fortunately for us, the

Norwegian authorities are familiar with such

challenges and have shown themselves very

willing to contribute to the project’s success.

Productive dialogue is central to our working

relationship with both Enova and Innovation

Norway.

Green shifts since the 1950sWe have always enjoyed productive dialogue

with the regulatory authorities. As a result of

continuous improvements over time, we have

one of the smallest environmental footprints

of any manganese alloy producer worldwide.

Among the major “green shifts” along the way

was the introduction of the world’s first closed

manganese furnace in the early 1950s, which

significantly reduced our emissions to air. In

the 1990s, we developed our own purification

systems for process water, resulting in lower

emissions to water. In the early 2000s, we were

the first company in our sector to develop and

construct systems to filter out heavy metals

in furnace gas. As mentioned above, our next

contribution will be to ensure a more climate-

friendly production process. This is a big

undertaking, and we are grateful to have the

Norwegian authorities working alongside us.

As part of Norway’s processing industry, we

refine natural resources into products that play

an important role in daily life. However, our

corporate social responsibility goes well be-

yond this. We need to be aware of the impact

that our production process and our products

have on the natural world, and to ensure that

we continue to do better in future. Eramet

Norway intends to lead the way and to remain

one of the world’s most efficient manganese

alloy producers.

Thanks to continuous

improvements over

time, our plants have

the smallest environ-

mental footprint in

the manganese alloy

industry.

ERAMET NORWAY4

INTRODUCTION

SUSTAINABILITY REPORT 2014 5

MANGANESE

Manganese is a metallic element belonging to Group 7 in the Periodic Table of Elements. Pure manganese is a steel-grey metal. It is hard, but at the same time so brittle that it can be pulverized.

On a worldwide basis, there are large deposits of manganese. In the earth’s crust, there are some 900 ppm, making it the second most common metal after iron. It is primarily extrac-ted from the mineral pyrolusite (MnO2), also known as brownstone. More than 80 per cent of occurrences are found in South Africa and Ukraine. Other important deposits are in China, Australia, Brazil, Gabon, India and Mexico. Manganese is also found in the form of nodules on the ocean floor.

AREA OF UTILIZATION

Manganese is necessary to make steel ductile and durable. For one tonne of steel, about 10 kilograms of manganese alloy is needed.

Nearly 90 per cent of the world’s total manga-nese alloy production goes into the production of stainless steel: steel for the construction, energy and transport sectors, and the tool industry, and special steel produced for the aeronautics and aerospace industries.

6 000EMPLOYEES WORLDWIDE IN THE MANGANESE DIVSION 26 BN NOK

REVENUE IN 2014

14 000EMPLOYEES IN 20 COUNTRIES THROUGHOUT THE WORLD

ERAMET GROUP

ERAMET IS A WORLD LEADER IN THE PRODUCTION OF MANGANESE ALLOYSThe French industrial group ERAMET is the world’s second largest producer of manganese ore and manganese alloys, and the world’s leading producer of refined manganese alloys. The company’s business areas are manganese, nickel and special steel. ERAMET’s most important markets are the steel industry, the aerospace industry, energy, the transport sector and the tools industry.

ERAMET NORWAY6

ERAMET NORWAY – A PART OF ERAMET GROUP’S MANGANESE DIVISIONEramet Norway is part of ERAMET’s Manganese Division, with processing plants at Sauda, Kvinesdal and Porsgrunn, and an R&D group in Trondheim. The company employs 530 people, and its operations make the ERAMET Group the world’s second largest producer of manganese ore and manganese alloys.

From smelter to modern processing plantThe Norwegian processing plants maintain the

traditions and expertise that the ferroalloy industry

has built up since industrialization accelerated in

Norway in the early 20th century. Today, Eramet

Norway supplies manganese alloys to the interna-

tional steel industry market.

The worlds cleanest manganese alloy productionEramet Norway realized early on that environ-

mentally sustainable onshore industry is the way of

the future for Norway. Since 2001, when ERAMET

acquired the processing plants previously owned

by Elkem, about half a billion Norwegian kroner

has been spent on developing and adopting green

technology. Today, Eramet Norway can proudly

boast that we operate the world’s cleanest manga-

nese alloy production facilities.

100 per cent exportEramet Norway exports all its production of man-

ganese alloys, primarily to Europe and North

America. The processing plants transport 98 per

cent of their production by ship and the remaining

percentage by road and rail.

Organizational philosophyThe company has a very flat organizational struc-

ture built on a strong contribution-based philoso-

phy and the Nordic model of collaboration.

WORLD-CLASS NORWEGIAN METALLURGICAL EXPERTISE

Metallurgy is a broad field with a long tradi-tion in the ferroalloy in-dustry, in which Norway enjoys high international standing.

Metallurgy is metal tech-nology. The employees working in this special-ized field range from apprentices and process operators to doctoral level researchers. Modern metal technolo-gy has become increas-ingly more sustainable over recent years.

INTERNATIONAL COMPETITIVENESS

One challenge in operating and develop-ing business in Norway is that, in cooperation with Norwegian author-ities, we need to adapt our framework condi-tions so as to create the basis for strengthening our international competitiveness.

Eramet Norway’s refining

process is an advanced, highly

technological process that few

other countries in the world are

able to emulate.

ERAMET NORWAY

SUSTAINABILITY REPORT 2014 7

NEARLY 90 PER CENTof the world’s total manganese alloy production is used to make stainless steel and specialty steels for the con-struction industry, the aeronautics and aerospace industry, the energy and transport sectors, and the machine tool industry. The construction market alone accounts for more than half the steel used worldwide.

Eramet – part of your daily lifeIron and steel are essential construc-tion materials in modern society. Just as the body’s bone structure needs calcium for strength, manganese is necessary to make steel ductile and durable. For one tonne of steel, about 10 kilograms of manganese is used.

PRODUCT

ERAMET NORWAY8

EVERYWHERE YOU GOyou will encounter products that contain manganese alloys. Eramet Norway supplies the world’s steel produ-cers with a complete range of high-quality manganese alloys. In our processing plants in Norway, raw manga-nese is refined and processed into ferromanganese and silicomanganese. These additive ingredients comprise 1–10 per cent of the composition of steel, graded by quality.

SUSTAINABILITY REPORT 2014 9

PORSGRUNN

KRAGERØ

TRONDHEIM

KVINESDAL

SAUDA

Eramet Norway is founded on long-standing industrial traditions. The three Norwegian processing plants are located between the fjords and mountains of Rogaland, Aust-Agder and Telemark.

ERAMET NORWAY SAUDA

Sauda, in the northeast part of Rogaland county, is a community of 5,000 inhabitants. The local rivers were harnessed for hydroelectric power generation in the early 20th century, paving the way for industrialization in Sauda.

Eramet Norway’s processing plant in Sauda employs about 175 people and, with its two 40 MW furnaces, is the largest ferro-manganese producer in northern Europe. Production has more than doubled since the 1960s, and some 70 per cent of the plant’s revenue is from refined products. Annual power consumption totals 730 GWh when the plant is operating at full capacity. Measured in tonnes produced, Sauda is the largest plant in the Eramet Norway family.

Sauda has the highest output of refined ferromanganese alloys, processing about 70 percent of the manganese ore imported by Eramet Norway.

Eramet Norway Sauda is a cornerstone of the local economy and takes its corporate social responsibility seriously, benefiting both the company and our stakeholders. The Sauda plant is celebrating its centenary in 2015, and its vision is reflected in the motto “All set for another hundred years in Sauda!”

OWNERSHIP INTEREST IN A QUARTZ QUARRY OPERATOR, GEORG TVEIT AS.

ERAMET NORWAY10

ERAMET OPERATIONS IN NORWAY

TRONDHEIM R&D GROUP

Eramet Norway’s development group in Trondheim consists of three rese-archers with access to the facilities and expertise of NTNU and SINTEF. Working as a team, they are all acknowledged experts in applied research who continuously pursue enhanced understanding and greater insight. The development group supports the processing plants at Kvinesdal, Sauda and Porsgrunn, and contributes to innovation and knowledge dissemination within Eramet Norway.

ERAMET NORWAY PORSGRUNN

Porsgrunn is a city of 35,000 residents in Telemark county. As the successor to a plant first established in 1913, Eramet Norway Porsgrunn is a modern, high-te-chnology business with long and proud traditions. Average seniority among the workforce is 23 years, and it is not uncommon to encounter second- and third-generation employees manning the smelting furnaces. The plant is considered an attractive work-place locally and currently employs 159 people. Equipped with two smelting furnaces and a refinery facility, the plant produces 65,000 tonnes of silico-manganese and 115,000 tonnes of refined ferromanga-nese annually. The plant consumes 570 GWh of electri-city annually, from which it recovers almost 200 GWh of thermal energy by supplying carbon monoxide gas to Yara’s ammonia factory at Herøya.

ERAMET NORWAY KVINESDAL

Established in 1974, Eramet Norway Kvinesdal is centrally located in the Lister region. Kvinesdal is a community of 5,800 residents, 206 of whom work at Eramet Norway. The modern, highly versatile processing plant is a key player in the local community and an undisputed leader in energy recycling, flexibility, adherence to emissions requirements and, not least, customer satisfaction.

The plant consumes 750 GWh of electrical energy annually and is strongly committed to energy recycling. As long ago as 1981, a thermal power plant was built, which now supplies nearly 90 GWh annually to the grid. Wastewater is reused by the plant itself and by external customers, including a turbot farm producing 250 tonnes of fish annually. A district heating plant, built in 2007, supplies hot water to five external customers for heating off-site workshops.

SUSTAINABILITY REPORT 2014 11

My tension rapidly gave way to fasci-

nation and respect. The smelter was

not a sad remnant of an industry on

the decline, but a high-tech business

that was constantly innovating. The

people I met took great pride in their

trade, the smelter and the product –

not something they ever would have

learned at school. One week in Sauda

taught me more than my entire first

year in the Norwegian parliament.

Tesla manganese and Norwegian industrial heritageI chose Sauda for my first summer

job as a member of parliament be-

cause this is where the industrial his-

tory of Norway, and hence the history

of the Norwegian labour movement,

was shaped. The strike in 1970, the

carbon offset program, the licens-

ing rules, and the regulatory regime

for power supplies to industry – the

Sauda smelter figured prominently in

all of them. It’s not just the manga-

nese in Tesla cars that’s made here,

but also the girders underpinning

Norwegian industrial policy.

A spry centenarianSauda didn’t look to Oslo or Stavan-

ger. Sauda set its sights on the world.

The smelter has no time for nostalgia;

it has always looked to the future.

Multi-million-krone investments have

created one of the world’s cleanest,

most energy-efficient manufactur-

ing businesses. Output has more

than doubled since the ’60s, thanks

to a combination of craftsmanship,

innovation and optimism. If there’s

one thing the guys on my shift

taught me, it’s that the world’s finest

manganese doesn’t produce itself. It’s

the product of hard work and skilled

craftsmanship. That’s the recipe for a

century-old business that’s still going

strong, and the reason why the Sauda

smelter can look forward to at least

another 100 years of success.

Manufacturing shapes the futureThere are plenty of prophets of doom

ever willing to predict the death of

Norwegian manufacturing. Accord-

ing to them, we can live by creating

apps, hairdressing and paper pushing.

In my vision of the future, smelters

and manufacturing industry play a

key role. This is where some of the

most groundbreaking innovations will

occur; innovations that take us in the

right direction toward a renewable

world. At Sauda, the smelter has gone

from belching out sooty, unfiltered

smoke to practically zero emissions.

The folks I got to know that summer

are only just getting started. Oslo

needs to realize that this is where the

future is being shaped. It’s our job

as politicians to create the condi-

tions for that to happen, and not to

obstruct it at any cost.

Look at Sauda!In Sauda, the community has always

come together to do the heavy lifting

and build some fine monuments. An

ice-free football pitch, a spanking

new primary school, a daycare place

for every child, an arts education pro-

gram, the Saudafallene hydroelectric

project, a thriving business commu-

nity. I have never visited a place with

such a strong sense of community,

not just historically, but in the lives of

local residents today. The rest of Nor-

way can learn a lot from Sauda. I’ll

never forget the community feeling

that was everywhere – in the lunch

room, at the grocery store.

I left Sauda with renewed faith in the

future of manufacturing, carrying

with me a clear message from the

lunch room, and knowing for sure

that I’ll be back soon.

A city boy mans the furnaceI’ll never forget the feeling of walking through the plant gates on my own that first day. The sun had barely risen. I was starting a summer job at the smelter and was really nervous. Even a city boy from Stavanger realizes that working with metal at 1,500°C is no laughing matter.

Torstein Tvedt SolbergMember of parliament representing Rogaland for the Norwegian Labour Party, member of the finance committee

ENVIRONMENT AND SUSTAINABILITY

ERAMET NORWAY12

“Oslo needs to realize that this is where the future is being shaped.

It’s our job as politicians to create the conditions for that to happen, and

not to obstruct it at any cost”

Torstein Tvedt Solberg, Member of parliament representing Rogaland for the

Norwegian Labour Party, member of the finance committee.

SUSTAINABILITY REPORT 2014 13

When it comes to advanced technology, few metal producers can match Eramet Norway.

ERAMET NORWAY14

SUSTAINABILITY REPORT 2014 15

C (coke) CO2

CO

Metal layer 1 400 0C

Koksseng

Overflate

Slagg

1 2500CMnO + C = Mn + CO

3Mn2O

3 + CO =

2Mn3O

4 + CO

2

Mn3O

4 + CO =

3MnO + CO2

2MnO2 + CO =

Mn2O

3 + CO

2

Temperature incharge: 2000C

Temperature in charge: 8000C

Temperature in charge: 4000C

MnO2 (manganese)

THE MANGANESE PROCESS (FEMN)

SLAGGING

Gives slag better viscosity (fluidity) and enables correct chemical composition for obtaining optimal manganese reduction

COKE

Carbon as areducing agent

ORE

Manganesesource

ELECTRODES

Supplies the process with electrical energy – equivalent to the consumption of 20,000 households

FURNACE

Able to withstandextremely hightemperatures – more than 2,000oC

PRODUCTION OF MANGANESE ALLOYS AND CONSUMPTION OF RAW MATERIALS

885,000TONNES OF MAGANESE ORE

221,000TONNES OF METALLURGICAL COKE

84,000TONNES OF QUARTZ

ERAMET NORWAY16

PRODUCTION PROCESS

WORLD-CLASS, ENVIRONMENTALLY FRIENDLY TECHNOLOGYEramet Norway has a century of experience in manufacturing manga-

nese alloys. This knowledge base, developed over generations, is Eramet

Norway’s most important resource and asset. This expertise has also made

the company a leader in smelting and refining manganese alloys.

Today, the refining process is an advanced, highly technological process

that few other countries in the world are able to emulate. From the time

an optimal mix of ore and coke is blended and sent to the furnace, and

until the crucial refining process has been completed, precision and

experience are essential. With the aid of an advanced control system, every

stage of production is monitored in detail, and the laboratories take

samples at regular intervals to test quality.

RAW MATERIALS FROM OUR OWN MINE

Eramet Norway handles significant amounts of raw materials in its production processes. These raw materials come from suppliers in Norway and abroad and primarily comprise:

• manganese ore• metallurgical coke• quartz and limestone

FACTOR INPUTS

Other important factor inputs are electrode paste and metallic silicon sources. During the smelting process, a number of internal products are produced and consumed. They are transferred as required to other parts of the same plant and between the three processing facilities.

ENERGY CONSUMPTION

The combined electrical energy consumed in the smelting processes, including auxiliary power, was about 1.94 TWh in 2014. The required amount of natural gas and propane used as thermal energy sources amounted to almost 1,000 tonnes.

Eramet Norway is also one of the coun-try’s largest consumers of industrial gases, particularly liquid oxygen, in production processes.

14,000TONNES OF ADDED ELECTRODE MATERIAL

1.94 TWHTOTAL CONSUMPTION OF ELECTRICAL ENERGY / AUXILIARY POWER

1,000TONNES OF NATURAL GAS AND PROPANE

SUSTAINABILITY REPORT 2014 17

PRODUCTION PROCESS

Eramet Norway’s entire output of manganese alloys goes for export, chiefly to Europe and North America. 98% is transported by sea and 2% by road.

ERAMET NORWAY18

TRANSPORT

SUCCESS FOUNDED ON TRUST

SHAREHOLDERS NEIGHBOURS

SOCIETY

EMPLOYEES

CUSTOMERS

SUPPLIERS

Safe workplaces

Return on capital Listen and engage

Implement plans Respond

Meet targets Comply with requirements

Comply with requirements

Exercise social responsibility

Predictable behaviour

Clear structures Comply with requirements

Employee participation

Ability to deliver

Development opportunities

Service

Quality

Comply with requirements

Collaborating for knowledge

Through our membership of forums such as Grenland

Industrial Cluster, the Eyde network and EnergiRike, we

are committed to sharing knowledge among regulatory

authorities, politicians, centres of expertise and our

own industry on major issues of mutual concern..

Supporting the local community

Eramet Norway supports clubs, organizations, cultural

activities and individual events at each of its production

locations. It is important that the local community

around our company continues to provide

opportunities for cultural and leisure activities.

SUSTAINABILITY REPORT 2014 19

TRAINING AND APPRENTICESHIPS

A cornerstone of local education and trainingEramet Norway’s three processing

plants are valuable springboards for

young people in rural communities.

The concept of apprenticeships

dates back to the Middle Ages and

has traditionally been an important

source of new recruits. Creating

much-needed apprenticeships is also

an important social responsibility.

These are two of the motivations be-

hind our apprenticeship program.

“Eramet Norway takes on 20 to 30

new apprentices annually,” reports

Leif Ljung, apprenticeship program

coordinator at Sauda.

“At any given time, we have around

70 apprentices in eight differ-

ent trade categories. We also

conduct a lot of project-

related activities in partner-

ship with local educational

institutions.”

Close partnership with upper secondary schoolsThe plants have close work-

ing relationships with upper

secondary schools, and

especially with the vocational

programs. One area where

this is particularly evident is

the in-depth project un-

dertaken by students, introduced

following the Norwegian educational

reforms of 2006.

“Every spring and autumn, students

from local schools visit our plants in

Kvinesdal, Sauda and Porsgrunn. This

is an excellent way for us to meet

prospective apprentices,” explains Mr

Ljung.

Painless transition to working lifeEramet Norway is a stable employer,

well established and well connected

in the local community. This means

that apprentices get off to the best

possible start. For most young peo-

ple, an apprenticeship is their first en-

counter with working life; the security

of their schooldays is now behind

them. The apprenticeship program

managers are conscious of this fact

and help the apprentices to painlessly

navigate the new world of work.

“Everyone who signs up for an ap-

prenticeship with us can look forward

to an exciting period filled with vari-

ety. Meanwhile, they’ll be well looked

after, both professionally and social-

ly,” stresses Mr Ljung. “In their first

few days at the plant, apprentices are

assigned a mentor or an instructor,

who along with the subject supervisor

is responsible for their welfare and

professional development. Mentors

are also expected to help apprentices

adjust to the work environment and

get to know their new colleagues.”

An attractive workplaceEramet Norway’s processing plants

are exciting places to work. Coupled

with access to ample sources

of renewable energy, the

company’s experience in pro-

ducing ferroalloys means that

Eramet Norway is well placed

to meet future challenges.

The company’s greatest

asset, however, is its highly

trained and highly motivated

workforce.

The current Norwegian

government is advocating

improved vocational training

and the creation of more

apprenticeships. Society

also needs to put in place a

technical and vocational edu-

cation system that allows for greater

flexibility in future. This will make the

labour force better able to adapt to

restructuring and take on new tasks.

This is entirely in line with Eramet

Norway’s approach. Our apprentice-

We need employees who are skilled in our company’s core

specialties and keen to advance their career in technology.

A technical apprenticeship, where you combine theoretical learningwith on-the-job training along-

side colleagues in a pleasant work environment, is a great way

to start your working life.

ERAMET NORWAY20

“We would truly advise others to try it – and that

includes girls.”

Stine & Synne, apprentices at Sauda

ship program can also be seen as an

expression of our corporate social

responsibility.

A great place to beWe need employees who are skilled

in our company’s core specialties

and keen to advance their career in

technology. A technical apprentice-

ship, where you combine theoretical

learning with on-the-job training

alongside colleagues in a pleasant

work environment, is a great way to

start your working life. Periodically

the company also needs people with

expertise in management and or-

ganizational development to work in

centralized functions such as finance,

HR, IT, procurement and logistics.

Eramet Norway’s apprenticeship

program is well organized in both

professional and social terms. At

the outset, the apprentice signs an

apprenticeship contract with the

company. Experienced skilled trades-

men provide hands-on training, while

subject experts oversee the man-

agement of the program and ensure

apprentices are deriving maximum

benefit from it.

In addition, Eramet Norway has a long

tradition of providing practical and fi-

nancial support to employees wishing

to pursue educational opportunities.

There are also opportunities for inter-

national exchanges, and everyone at

Eramet Norway will find themselves

working alongside foreign colleagues

in the local organization.

SUSTAINABILITY REPORT 2014 21

ENVIRONMENT AND SUSTAINABILITY

ERAMET NORWAY’S ENERGY BALANCE SHEET FOR 2014Our plants at Sauda and Porsgrunn both received ISO 50001 certification in 2014. All three of our manga-nese processing plants, including Kvinesdal, now have systematic, certified energy management proce-dures in place.

This commitment strengthens the

sustainable foundations of our

energy-intensive business. Eramet

Norway’s energy consumption can

be broken down into three main cat-

egories, with “electrons” and “hydro-

carbons” each accounting for around

45 per cent of our total energy con-

sumption of 4.2 TWh in 2014. The

energy content of the metallic mate-

rials (silicon and manganese) con-

sumed in the course of the smelting

and refining processes accounted for

the remaining 10 per cent. Our elec-

trical energy consumption totalled

1.94 TWh across the three plants:

0.55 TWh at Porsgrunn, 0.67 TWh

at Sauda and 0.72 TWh at Kvinesdal.

Coke and anthracite, used mainly as

reducing agents in the smelting fur-

naces, accounted for 1.82 TWh of the

energy consumption included on our

energy balance sheet.

For calculation purposes, we can

say that 1.89 TWh of energy went

directly into producing approximate-

ly 484,000 tonnes of manganese

alloys for sale. In other words, the

processing of standard and refined

FeMn and SiMn accounted for some

44 per cent of our total energy con-

sumption.

Energy recovery down in 2014The next big challenge is to recover

as much as possible of the thermal

energy contained in fuel, air cur-

rents and water currents. In 2014 the

recovery rate was somewhat lower

than normal, at around 0.4 TWh,

or 10 per cent of total energy con-

sumption. This can be explained in

part by major repairs to the energy

recovery plant at Kvinesdal, which

lasted for several months. Supplying

furnace gas to Yara’s ammonia facto-

ry at Porsgrunn and hot water to fish

farms at Kvinesdal, plus internal use

of furnace gas for refractory activities

and heating at Sauda, contributed

significantly to the volume of energy

recovered.

We were left with residual energy

losses of almost 2 TWh. Action plans

to address these losses are being

drawn up in a number of areas. The

planned measures will be ranked

according to the capital expenditure

required, implementation time and

potential gains. We cannot overlook

the high capital costs of some pro-

posed measures. There is also the

fact that the incentives are essentially

different in the case of electrical

versus thermal/chemical energy.

What is more, location is a factor in

determining the appeal of recovered

energy.

Companyactivities and

process4.235 GWh

Electric energy: 1.944 GWh

Carbon materials: 1.824 GWh

Metallic sources: 467 GWh

Energy as heat in productions: 1.859 GWh

Energy loss: 1.956 GWh

Recovered energy: 420 GWh

46% 44%

46%

11%

10%43%

ERAMET NORWAY22

ENVIRONMENT AND SUSTAINABILITY

BELLONA FOUNDATION

The Bellona Foundation is an inde-pendent not-for-profit organization that aims to meet and fight the world’s climate challenges by identifying and implementing sustainable environmen-tal solutions. The foundation works to achieve greater ecological understand-ing and better protection of nature, the environment and health. Bellona is engaged in a wide spectrum of current national and international environ-mental issues around the world.

Over the past few decades, Eramet

Norway’s processing plants have been

transformed from major polluters into the

world’s greenest manganese alloy produc-

tion facilities.

Objective: a sustainable societyOur customers, the end-users of their

products and the regulatory authorities all

expect a high degree of innovation from

Eramet Norway. Meanwhile, our goal is to

lead the field in environmentally friendly

manganese production. As a key player in

the processing industry, the company is

expected to go the extra mile to help build

a sustainable society – and we expect

nothing less of ourselves.

Bellona – a key allyTo support our efforts, Eramet Norway

and Bellona have a formal working rela-

tionship. The objective is to draw on each

other’s expertise to improve the compa-

ny’s environmental performance.

Eramet Norway’s sustainability report pro-

vides a comprehensive survey of the effort

and capital expenditure we are putting into

reducing our environmental footprint.

We have come a long way. Whereas our

grandparents faced great risks in the

workplace and had to endure high levels

of hazardous environmental pollution,

their grandchildren can live and work in

an environment largely free of toxic emis-

sions. Eramet Norway is helping to create

a renewable world.

WORLD’S GREENEST MANGANESE ALLOY PRODUCER

SUSTAINABILITY REPORT 2014 23

RESEARCH AND DEVELOPMENT

Our Trondheim-based development group

conducts applied research in partnership with

the ERAMET Group’s research centre (ERAMET

Research), the Norwegian Ferroalloy Producers

Research Association (FFF), SINTEF and the

Norwegian University of Science and

Technology (NTNU).

Our research program supports our drive for

continuous improvement and innovation in

our processing plants. In 2014 we joined the

SFI initiative, which will enhance our R&D and

recruitment programs.

A resource-efficient, sustainable metal industryOn 21 November 2014, the Research Council

of Norway announced that a proposed joint

project involving almost the entire Norwegian

metallurgical industry had been designated

as a Centre for Research-Based Innovation

(SFI). The main objective of the SFI project is to

secure the future of the metallurgical indus-

try by making it more resource-efficient and

sustainable.

NTNU is the project’s host institution, and our

research partners are SINTEF and Teknova.

Alongside Eramet Norway, the participating

businesses include several other large manu-

facturing companies actively engaged in R&D,

among them Hydro, Elkem, TiZir and Alstom.

The SFI project will run for eight years, with a

total budget of NOK 250 million.

CENTRES FOR RESEARCH-BASED INNOVATION(SFI)

The SFI program is intended to promote innovation by support-ing long-term research conducted by compa-nies actively engaged in R&D in partnership with leading research institutions. SFI aims to develop world-class expertise in fields critical to innovation and wealth creation.The program is intended to boost technology transfer, international-ization and research education.

Supporting future research at Eramet NorwayGoing forward, the Centre for Research-Based Innovation (SFI) will play a key role in Eramet Norway’s extensive research and development program.

Key benefits of the SFI project for Eramet Norway will include:

> Development of models to address manufacturing challenges

> Fundamental knowledge concerning core metallurgical processes

> Innovative solutions for waste materials, especially sludge

> Reduction in dust emissions and exhaust fouling, improved environmental monitoring

> Advanced professional education for engineering graduates and PhD candidates

in metallurgy and related fields

> Industry-wide cooperation to tackle environmental challenges

ERAMET NORWAY24

2014.04.24

SFI Metal Production-StrukturKoblete Research Domains

Production plantsin Norway

SFI

Aluminium

Silicon/Ferrosilicon

Ferromanganese, silicomanganese

SiC2, TiO

2

Ni, Zn, Cu, Co

Steel

Rare Earth

Spin-offCompanies

Innovation Norway

Ironman

SaintGobain

SilMag

Foundry for Light Metals

Celsa AS

Horizon2020 SFI Metal

Production

FerroalloyIndustry

AluminiumIndustry

TiZirAlstomInnovation

projects

society

5

1

4

2

3

materialsand society

emissionsand environment

fundamentalsand modelling

primary metalproduction

PhDpostdoc

refiningand recycling

industry

SUSTAINABILITY REPORT 2014 25

PIMEX –PICTURE MIX EXPOSURE PIMEX is a mapping method in which work activities are filmed while dust concentra-tions are displayed in graphic form. Dust concentrations are recorded by an electronic dust meter worn by the operator, and the data is trans-mitted wirelessly to a camera-connected PC, which serves as a recording unit.

Your level of exposure to dust depends on where you are, what you are doing, and how you are doing it.

An operator is exposed to dust for a short

period daily. It is not uncommon for 80 per

cent of dust exposure to occur in less than 10

per cent of the time worked. A new mapping

method called PIMEX enables us to under-

stand how this happens, making it much easi-

er to take remedial action in respect of work-

ing methods, location and equipment.

Continuous reporting to Labour Inspection AuthorityPIMEX is used primarily as part of improve-

ment processes but also for documentation

purposes. When measures are implemented,

the dust exposure is measured by the conven-

tional gravimetric method using a measuring

pump over the duration of a shift. These are

the figures that are compared with the set

limits for dust and reported to the Norwegian

Labour Inspection Authority. Although the

level over the course of a working day can be

acceptable, exposure at specific moments can

exceed the accepted maximum.

Quantifying short-term exposure is compli-

cated by the small volumes involved. PIMEX

provides a snapshot of such situations, with

the aim of putting a figure on them.

Semi-quantitative measurementsPIMEX was developed as an educational tool

for teaching users how to avoid exposure to

dust or gas. At Eramet Norway, we document

the measurements in a way that enables us

to compare them over time. The Norwegian

Labour Inspection Authority has asked us to

quantify short-term exposure in our reports,

and as we gain experience and refine our

methods, we expect to be able to make the

measurements semi-quantitative.

Central vacuum replacing broomsThe PIMEX mapping process has taught us

many things. We have implemented vari-

ous measures that we would not otherwise

have considered necessary. One of the most

obvious facts to emerge from the mapping

exercise is that cleaning up with a broom

results in high dust exposure and is therefore

hazardous. A central vacuum-based extraction

system is more or less the only acceptable

cleaning method for the processing zone.

In 2014, Eramet Norway Porsgrunn began

preparing for the installation of a new extrac-

tion system in the crushing hall. The project

comprises a new dust extractor with exhaust

flues and a filtration system, designed to pro-

vide all the exhaust capacity we require, which

will reduce diffuse emissions and improve the

environment inside the plant.

Dust exposure systematically reduced

RESEARCH AND DEVELOPMENT

ERAMET NORWAY26

SUSTAINABILITY REPORT 2014 27

ERAMET NORWAY PORSGRUNN

At Porsgrunn, we continued to work on reducing the plant’s environmental footprint in 2014, reaching several major environmental milestones during the year.

Eramet Norway Porsgrunn received ISO 50001

energy management certification in 2014. This

certification entails a major commitment with

regard to working methods and monitoring,

requiring us to focus on energy consumption,

emissions and recycling. Energy recovery, in

the form of selling furnace gas to Yara, is part

of this program. In 2014 we supplied a record

volume of gas to Yara.

We also completed several large- and small-

scale energy efficiency projects during the

year, including further expansion of the

sitewide heating network to use cooling water

from the vault of Furnace 11 to heat the fur-

nace hall. Several more projects are scheduled

for 2015.

New extraction system in crushing hallAnother important milestone at Porsgrunn

was the start of the capital project to install

a new extraction system in the crushing hall.

The current system has insufficient capacity

and is life-expired in parts, resulting in diffuse

emissions and a poor interior environment. The

project comprises a new dust extractor with

exhaust flues and a filtration system, designed

to provide all the exhaust capacity we require.

The main objectives of the project are to

further reduce diffuse emissions from the

crushing plant, and to improve the working

environment in the crushing area. Noise level

and safety requirements as set out in the ATEX

classification system were a key factor in our

choice of technical solution and equipment.

The total project cost is estimated at NOK 20

million, and installation of the system is to be

completed in the summer of 2015.

Oxy-fuel for greater efficiencyAmong the smaller-scale improvement pro-

jects that we pursued here at Eramet Norway

Porsgrunn was the installation of an oxy-fuel

burner system to improve the processing

plant’s efficiency. Using pure oxygen in the

combustion of natural gas increases flame

temperature significantly, making it possible to

preheat the ladles to a much higher tem-

perature than in the past, and to melt away

metal and slag that has solidified on the ladles

(known as fouling). The increased temperature

results in less fouling, and hence less need

for frequent chiselling of the ladles. Chiselling

creates a lot of dust and noise, and is a source

of diffuse emissions. Reducing the need for

chiselling will therefore cut our diffuse emis-

sions and improve working conditions. It also

reduces the amount of fouling that needs to be

resmelted, yielding potential energy savings of

up to 3,750 MW annually.

In 2015 we are picking up where we left off in

2014, moving toward an ever smaller environ-

mental footprint.

ENVIRONMENTAL ENGINEER HIRED

Environmental engineer Elke Kummer joined Eramet Norway Pors-grunn from Veolia Miljø Industri/Norsk Gjen-vinning. Before moving to Norway, she studied process and environ-mental technology at Wismar and worked as a project manager in the industrial cleaning sector in her native Germany. See page 35 for more about Eramet Norway’s environmental engineers.

NEW RECORD FOR FURNACE GAS RECOVERY

As part of our commit-ment to energy recov-ery, we sell furnace gas to the neighbouring Yara plant. In 2014 we sup-plied a record volume of 210 GWh.

PORSGRUNN TACKLING MAJOR AND MINOR GREEN ISSUES

ERAMET NORWAY28

New extraction system and oxy-fuel burner to reduce diffuse emissions and improve working conditions.

SUSTAINABILITY REPORT 2014 29

NORWEGIAN FERROALLOY INDUSTRY AIMING HIGHA good environmental track record is a key plank in Eramet Norway Sauda’s efforts to build sustainable, long-term operations.

ERAMET NORWAY SAUDA

ENVIRONMENTAL ENGINEER HIRED

Before joining Eramet Norway Sauda, Oliver Severin worked as an environmental engineer for BHP Billiton, one of the world’s leading mining and metals companies, at its nickel mining operations in Western Australia. He now plays an invaluable role in environmental monitoring at the Sauda plant. See page 35 for more about Eramet Norway’s environmental engineers.

In 2014, Eramet Norway’s Sauda plant achieved

its goal of ISO 50001 energy management cer-

tification. The next objective is to ensure that

the plant has landfill capacity available from

summer 2016 onward.

“Our emission figures for 2014 confirm that

we’ve made good progress in most regulated

areas during the current licensing term,” says

Kåre Bjarte Bjelland, plant manager. “Along with

our ISO certification, this puts us in a strong

position to further improve our environmental

performance and energy efficiency in the years

ahead.”

Goal: zero emissionsThe processing plant is located right in the

centre of Sauda, close to the homes and busi-

nesses of a large proportion of the communi-

ty’s residents. It is only to be expected that the

regulatory requirements governing emissions

will become ever stricter, and that the expec-

tations of the plant’s workforce and the wider

community will continue to rise.

In partnership with SINTEF and several other

major players in the ferroalloy industry, Eramet

Norway Sauda has been steadily working

toward the goal of zero emissions.

“In fact, Eramet Norway Sauda has made the

most progress. Of all the project participants,

the Sauda plant has involved the most people

in its environment-related activities. They are

taking this work seriously,” Bernd Wittgens of

SINTEF told the local newspaper earlier

this year.

Diffuse emissions“In our efforts to reduce diffuse emissions,

we’ve benefited greatly from actively collab-

orating with Eramet Norway’s R&D group in

ERAMET NORWAY30

GREATER KNOWLEDGE AND COMMITMENT MEAN GREATER ABILITY TO DELIVER

SPECIFIC MEASURES AT SAUDA

Specific measures taken at Sauda in recent years:

• Electrode sealing• Sealing of furnace cover• Curtains and air knives around furnaces and in tapping area• Water spraying during casting of refined alloys and slag• New off-gas cleaning system at the refining facility• CO2 bottom stirring in MOR ladles• Environmental systems related skills development

Trondheim and with the Norwegian Ferroalloy

Producers Research Association (FFF) on

projects such as FUME,” says Mr Bjelland.

Joint projects in which Eramet Norway Sauda

has been involved include:

– Understanding dust movement and

drafts in the smelting hall

– Modelling extraction systems

– Laser measurements of pollock

– Understanding dust sizing

Mr Bjelland is determined that the Sauda plant

will continue its efforts in respect of diffuse

emissions over the years ahead, focusing more

closely on increasing resilience in the event of

especially difficult processing conditions.

Steps to be taken include further strengthening

“environmental barriers” and reducing diffuse

emissions from our material handling activities.

Knowledge and commitment are keyIn the summer of 2010 we began continuously

monitoring emissions from four points in the

furnace hall, with a view to obtaining a factual

basis on which to evaluate improvement

measures.

We also held training sessions for shift oper-

ators and created a position in the shift

organization with dedicated responsibility for

environmental monitoring. Video cameras and

display screens play a central role in day-to-day

monitoring, along with status visualization

using diagrams and instrument panels. All this

has boosted the level of knowledge here at

Eramet Norway Sauda and strengthened

commitment in all parts of the organization.

Knowledge and commitment

Understand root causes – establish the right targets and

plans – identify the right action

1.

3.

4.Improve

procedures – refine equipment/systems – increase under-

standing of process

Refine expertise – optimize

equipment/systems

Measure results – evaluate impact of action

2.

SUSTAINABILITY REPORT 2014 31

As required by the water quality regulations, the Norwegian Environment Agency has ordered Eramet Norway to monitor water quality in all the fjords adjacent to our processing plants.

KEEPING AN EYE ON THE FJORDS

The purpose of

the monitoring

programs is to

obtain more

systematic

knowledge of

the chemical and

ecological condi-

tions in practically

every fjord on

which businesses

have an impact.

The purpose of such monitoring is to deter-

mine what effect various businesses have on

the fjords, or the recipients as they are termed.

In the spring of 2014, we received notice that

monitoring programs for the fjords adjacent to

our plants must be in place by 1 March 2015.

During the autumn of 2014, we had monitor-

ing programs drawn up for the Saudafjord, the

Fedafjord and the Grenland fjords. The pro-

gram for the Fedafjord was produced by COWI,

while NIVA worked on the programs for Sauda

and Grenland.

Fjord monitoring partnership in GrenlandIn Grenland, Eramet Norway is working in

partnership with 11 other businesses that pro-

duce emissions to the fjords.

We worked closely with the Norwegian

Environment Agency to design the monitoring

programs, which were then sent out to the

relevant county governors for consultation.

After inviting bids for the monitoring work, we

awarded the contracts to NIVA for the Gren-

land fjords and to COWI for the Fedafjord and

Saudafjord.

The purpose of the monitoring programs is

to obtain more systematic knowledge of the

chemical and ecological conditions in practi-

cally every fjord on which businesses have an

impact. On the basis of this knowledge, the

authorities will assess whether the environ-

mental targets set for the fjords are achievable.

If the targets do not appear achievable, action

may be taken to ensure that they are met.

Studying water quality, sediment and biologyIn the fjords adjacent to the Eramet Norway

plants, the quality of water, sediment and

biological material will be studied during the

summer and autumn of 2015. The information

will then be collated and reported to the

Norwegian Environment Agency by 1 March

2016.

Once the findings are available, the agency

will determine the frequency of ongoing

monitoring.

Double monitoring of the FedafjordInvestigations have already been carried out in

the Fedafjord in recent years and followed up

with risk analyses and action plans. We are

currently waiting for the Norwegian Environ-

ment Agency to take the initiative on further

action in this regard. The new monitoring

program means the Fedafjord will be under an

especially high degree of scrutiny. It will be up

to the Norwegian Environment Agency to

formulate proposals for coordinating the

findings of the two studies.

ENVIRONMENTAND SUSTAINABILITY

ERAMET NORWAY32

SUSTAINABILITY REPORT 2014 33

The ERAMET Group’s ethical purchasing guidelines underpin all our relationships

with our suppliers here at Eramet Norway.

The ethical guidelines, based on UN and ILO conventions, are written into our con-

tracts with our main suppliers. Suppliers are expected to play a positive, proactive role

in working with ERAMET to devise good solutions that ensure that fundamental human

rights, employment rights and environmental standards are respected. We also require our

suppliers to make sure that vendors at earlier stages of the supply chain behave in a similar

fashion.

Focus on ethical business practicesEramet Norway has played an active part in developing and implementing the group’s tool

for risk assessment of suppliers. This tool is used to assess a supplier’s compliance with

our requirements on ethical business practices, health, safety and environment, quality

assurance, and financial management.

Fair supplier relationshipsOur ethical purchasing guidelines describe in detail how all our employees should con-

duct themselves in relationships with suppliers. The guidelines are a useful tool for raising

awareness inside and outside the company, in order to avoid conflicts of interest and cor-

ruption, and to promote open competition and equal treatment of suppliers. The request

for quotation stage is especially critical, with strict requirements governing confidentiality

and the segregation of duties between the purchaser and the requisitioner.

Eramet Norway aims to be a demanding but desirable client from a supplier perspective,

with clear and equitable contracts and relationships.

AN ETHICAL SUPPLY CHAIN

HIGH-TECH SYSTEM CAN IDENTIFY WATER LEAKAGE IN FURNACE 12

As part of our drive to improve

operational reliability and in-

crease production of HCFeMn,

Furnace 12 at Sauda was upgrad-

ed in 2014 at a cost of NOK 70

million.

As part of the upgrade, a water

leak detection system was

installed, which uses high-tech

measuring equipment to detect

leakage at an early stage. The

equipment measures water flow

into and out of the furnace plant,

thereby reducing a significant

safety risk.

Water leakage may lead to

extensive property damage and,

in a worst-case scenario, injuries

and loss of life. The recent up-

grade shows how seriously we

take the safety of our employees

working on Furnace 12 at Sauda.

Eramet Norway has an ongoing commitment to treat waste as a resource.

In the normal course of operations at the processing plants, we reuse materials

in the production process where possible and dispose of waste to specialized

recycling contractors.

Waste management at SaudaVarious operations at the Sauda plant result in an accumulation of scrap

metal and clean concrete waste. We are firmly committed to handling waste

responsibly. Detailed waste management plans are put in place for major

projects, with individual project managers in charge of waste management

in their respective areas of responsibility.

WASTE MANAGEMENT Best practice pays off:

• We are meeting the regulatory requirement to

recycle at least 60 per cent of waste generated.

• We are reducing our environmental impact

(pollution, effects on neighbours, etc.).

• We are being financially responsible – recycling

can generate income streams, while disposing of

mixed waste is costly.

• We are helping to maintain high health and safety

standards on the construction site – a tidy site

means lower risk.

WASTE AS A RESOURCE

ENVIRONMENTAND SUSTAINABILITY

ERAMET NORWAY34

ENVIRONMENTAL ENGINEERS STRENGTHEN OUR TEAMIn 2014, Eramet Norway recruited two environmental engineers to ensure clean production processes at our three plants.

We are continuously refining our production

processes with a view to minimizing our envi-

ronmental impact. We work hard to reduce the

impact our processing plants have on the natural

environment in terms of air quality and emissions

to water and air. Likewise, we make every effort to

reduce dust and noise emissions for the sake of

our employees and our surroundings.

Results to be proud ofOur efforts over many years have produced

results. Eramet Norway is proud to have one of

the world’s cleanest processes for producing

manganese alloys. But we are not resting on our

laurels when it comes to environmental protec-

tion. We are working systematically toward

compliance with constantly updated targets and

ever tougher standards.

In line with this approach, we advertised two

vacancies for environmental engineers in the early

summer of 2014. We appointed Elke Kummer to

the role at Porsgrunn, and Oliver Severin at Sauda.

Ms Kummer and Mr Severin are now in charge of

our long-term improvement drive in the fields of

environmental protection and energy conserva-

tion. They monitor our performance in relation

to licence terms and in-house targets, and are

refining our procedures and systems for monitor-

ing environmental data.

From Norsk Gjenvinning to Eramet Norway PorsgrunnElke Kummer is based at the Porsgrunn plant,

which is her main focus. She joined us from Veolia

Miljø Industri/Norsk Gjenvinning, a recycling com-

pany, bringing with her a wealth of environmental

and recycling expertise. She studied process and

environmental technology at Wismar University of

Applied Sciences in Germany, specializing in waste

management and recycling.

Ms Kummer has already proved to be a valuable

addition to our staff, contributing useful emis-

sions data to the environmental reports we are

required to submit to the ERAMET Group and the

Norwegian authorities. With her keen eye for solu-

tions that produce improvements, she is an asset

to Eramet Norway.

From BHP Billiton in Australia to Eramet Norway SaudaOliver Severin studied environmental science at

Murdoch University in Perth, Western Australia.

After graduation, he worked as environmental

protection manager for the public water utility in

Sydney. He subsequently moved back to Western

Australia to take up a position as an environmental

engineer at the nickel mining operations of BHP

Billiton, one of the world’s leading mining and

metals companies.

At Eramet Norway, Mr Severin is in charge of

monitoring and reporting capped emissions of

greenhouse gases and other emissions, both

within the group and to the authorities. He also

serves as internal auditor for our management

systems, in which role he covers the whole

company from his base at Sauda.

MILJØ OG BÆREKRAFT

ELKE KUMMER

Environmental engineer Elke Kummer joined Eramet Norway Porsgrunn from Veolia Miljø Industri/Norsk Gjenvinning. Before moving to Norway, she studied process and environmental tech-nology at Wismar and worked as a project manager in the industrial cleaning sector in her native Germany.

OLIVER SEVERIN

Oliver Severin studied environmental science at Murdoch University in Perth, Australia. He worked as environmental protection manager for the public water utility in Sydney before taking up a position as an environmental engineer at BHP Billiton’s nickel mining operations in Western Australia.

SUSTAINABILITY REPORT 2014 35

Sustainable onshore industry is the way forward for Norway. Since 2001 we have invested almost half a billion kroner in developing and installing new, environment-friendly technology.

ERAMET NORWAY36

SUSTAINABILITY REPORT 2014 37

IMPROVING THE SAFETY OF OUR LANDFILLSIn the past, Eramet Norway disposed of sludge and dust from all its processing plants at its own landfill sites. At Porsgrunn, dumping at the plant’s landfill site ended some years ago, but the landfills at Sauda and Kvinesdal remain in use.

The old landfill sites at Sauda and Kvinesdal

were operational before the current landfill

regulations came into force in 2002, so are not

compliant with these regulations. Following

extensive risk assessments in the early 2000s,

permits for continued operation were issued.

The Sauda and the Kvinesdal landfill were both

permitted to remain open until they reached

capacity, which happened in August 2014 in the

case of Kvinesdal. At Sauda, the landfill could

have stayed in use until 2018 or thereabouts,

but two or three years ago the Norwegian Envi-

ronment Agency ordered the old landfill site at

Kviå to be closed by 1 January 2016. Subse-

quently, the agency agreed to allow the site to

remain in operation until 1 October 2016.

Temporary waste storage at KvinesdalAt Kvinesdal, a new landfill became operational

in early March 2015. For the past year, sludge

from the processing plant has been temporarily

stored on site. The storage site was paved with

extra-thick asphalt, with a watertight mem-

brane beneath, and equipped with a drainage

system to collect any water leaching from the

sludge. The leachate is then transferred to the

plant’s wastewater treatment facility. The tem-

porary waste storage site served two functions:

Firstly, it was a place to store sludge pending

the opening of the new landfill. Secondly, stor-

age led to additional dewatering of the sludge,

which should be as dry as possible when it

goes to landfill.

A final decision has yet to be made on whether

the temporary storage site will continue in use.

Operational experience at the new landfill will

be the deciding factor. The old landfill at

Fosseland saw very little use in 2014, save for a

small amount of residual capacity that re-

mained operational until 1 August.

New landfill meets current standardsThe new landfill has been constructed in

accordance with current regulations and

features a composite liner. In other words, the

bottom and sides of the landfill are lined with

two separate barrier materials. The lower liner

is a 50 cm thick clay barrier, constructed in

three layers, each of which has been thor-

oughly compacted. A special grade of clay that

meets the impermeability requirements has

been sourced from Denmark. This clay is geo-

logically stable and should remain impermeable

for hundreds or even thousands of years.

The upper liner is a plastic membrane, 1.5

mm thick and welded at the seams to make

it completely impermeable. The membrane is

expected to last 50–100 years, depending on

how much stress it is subjected to.

The landfill

site for manganese

sludge at Fosseland

is the first of its

kind in Norway

ERAMET NORWAY KVINESDAL

ERAMET NORWAY38

The new Fosseland landfill also incor-

porates a leachate treatment system. All

the water that leaches from the sludge

is collected and pumped to a treatment

plant. Located on top of the old landfill, the

treatment plant comprises two tanks and a

container to which chemical reagents can

be added. The principle of the treatment

process is that the leachate is first exposed

to air. The chemical reagents are then

added, causing the heavy metals and PAHs

to precipitate out and the particles

to accumulate on the bottom of the sec-

ond tank.

Fosseland’s pioneering new landfillThe new landfill at Fosseland has capac-

ity for approximately 10 years’ worth of

sludge. When the landfill reaches capac-

ity, an extensive set of requirements will

govern its decommissioning. The entire

surface area must be covered with an

impermeable membrane, for instance. The

old Fosseland landfill has to be decommis-

sioned in similar fashion, a process that is

scheduled to take place in 2015.

The landfill site for manganese sludge at

Fosseland is the first of its kind in Norway,

so we are following the project’s progress

with great interest.

As mentioned above, the Kviå landfill at

the Sauda plant has to close by 1 October

2016. A similar project is therefore under

way to construct a new landfill at Sauda.

We are currently in the process of applying

for permits from the Norwegian Environ-

ment Agency and expect construction to

begin in 2016.

Post-operational phase in sight at KvinesdalSince the 1970s, waste sludge from the

treatment facility at the Kvinesdal plant has

been dumped at the Fosselandsheia landfill

site between Kvinesdal and Flekkefjord.

The landfill reached capacity on 1 August

2014, and the decommissioning process

began. A project team led by an in-house

project manager is managing the process

of capping the landfill by the deadline of

30 November 2015. The project team has

external support from COWI, NGI and the

Norwegian Environment Agency.

The landfill cap to be installed consists of

various grades of slag, a layer of subsoil,

a double membrane made of plastic and

bentonite, and a layer of topsoil, which will

be seeded.

Once the landfill has been capped, it will

enter what is known as the post-opera-

tional phase. Procedures will be drawn up

for a monitoring program involving regular

inspections, sampling and analysis, in order

to ensure that pollution from the landfill

does not enter the groundwater.

SUSTAINABILITY REPORT 2014 39

PAH emissions to air

This parameter is not regulat-

ed under the existing emission

licences. A previous survey by

Glencore showed that these

emissions may be of sufficient

magnitude that the Norwegian

Environment Agency will seek

to regulate them under the new

licences. With the assistance of

Applica AS, we therefore took

measurements in order to chart

the extent of such emissions from

our three processing plants. These

measurements showed that more

information is required, so further

surveys will be undertaken. We

are also working on charting the

sources of these emissions and

evaluating possible measures

should there be a need to reduce

emissions.

Updating of plant emission licencesThe Norwegian Environment Agency announced in the spring of 2014

that it wished to review and update the emission licences for all the

manganese processing plants in Norway, both Eramet and Glencore.

The last comprehensive review of licence conditions was in 2003 for

Sauda and Porsgrunn, and in 1996 for Kvinesdal. All current licences have

been amended several times since being issued.

New draft licences in summer 2015 In the course of the licence update process, up-to-date knowledge was

required in several areas in order to assess the scope for changes in

emission limits. We devoted considerable resources to this process, draw-

ing heavily on external expertise to measure and evaluate our emissions.

We also worked closely with Glencore throughout the process, sharing

and discussing data and evaluations in order to establish the best possible

basis for the new, updated licences. We liaised closely with the

Norwegian Environment Agency, meeting with officials on several

occasions to present our findings and interim assessments.

The Norwegian Environment Agency plans to release a draft of the new licences by the summer of 2015, and for the licences to take effect at the beginning of 2016. Currently the process appears to be on schedule.

The following summary of the various emission categories outlines our

action to date and our interim conclusions in each case.

ENVIRONMENTAND SUSTAINABILITY

ERAMET NORWAY40

Emissions of As, Cd, Cr, Cu, Hg and Pb to water and air

We reviewed and evaluated our

emission levels and trends for the

past 10–12 years. Our emissions

have consistently been well below

the permitted limits, and we

considered the scope for propos-

ing lower limits under the new

licences. A number of factors have

to be considered. From our per-

spective, considerable uncertainty

would surround these emissions

in the event of any change in the

composition of our raw materials.

Emissions of these substances de-

pend on the mix of raw materials

used, and the new licences must

take this fact into account.

Dust emissions to air

We reviewed our emissions of

dust to air over the past few

years, focusing on trends and

levels. Emission levels have

consistently been well below the

permitted limits, and total dust

emissions have been on a positive

trend since the early 2000s. The

Norwegian Environment Agency

has indicated that it wishes us to

monitor such emissions more

closely and intends to impose

limits that will require us to meas-

ure emissions continuously at the

emission points. Opinions differ

as to how resources should be

allocated between this and other

possible high-priority emission

reduction measures. Our interim

conclusion is that we should work

toward closer monitoring of the

biggest sources of dust emissions

to air. The limits are likely to be

reduced in general as the perfor-

mance of the processing plants

improves.

Eramet Norway has devoted considerable resources and external expertise to measuring and

evaluating emissions.

NOX emissions to air

Owing to the combustion of

carbon monoxide gas produced

during the smelting process, our

plants generate emissions of

nitrogen oxides to air.

Kvinesdal burns its carbon mon-

oxide in a boiler system to recover

the energy, but Sauda has no such

system and burns the gas using

an open flare for safety reasons.

Porsgrunn uses the same com-

bustion process as Sauda but sells

as much of its carbon monoxide

as possible to the neighbouring

Yara plant, which uses the gas in

its processes as an alternative to

other energy sources.

SUSTAINABILITY REPORT 2014 41

Stormwater emissions to water from processing sites

Previous emission licences paid little attention to emissions of this kind, but

given the large reduction in overall emissions from the processing plants

over the past 10–15 years, the relative significance of these emissions has

increased.

The Norwegian Environment Agency has therefore indicated that it wishes to

consider regulating these emissions under the new licences.

Existing measurements and surveys of these emissions were reviewed, and

possible emission limits considered.

The interim conclusions were as follows:

– Samples of these emissions should be taken more often,

so that we have better knowledge of possible variations.

– The various sources of pollution in stormwater should be evaluated,

and risk assessments performed to determine which materials

should be stored where on the processing sites.

Restriction of emissions at SaudaWe worked with Norsk Energi to measure and evaluate

our NOX emissions. Emissions from the boiler system at

Kvinesdal were found to be small compared with other

sources, and it is unlikely that the Norwegian Environ-

ment Agency will seek to regulate these emissions.

Emissions at Sauda and Porsgrunn were calculated using

internationally accepted factors, since it is not possible to

measure emissions when the gas is burned using an open

flare. At Porsgrunn the emissions are relatively small,

given the current pattern of supply to Yara, but at Sauda

the emissions are probably of a magnitude requiring

regulation. However, there is considerable uncertainty

surrounding the size of the emissions, since the existing

international calculation factors are subject to change

(several are currently in use). The Norwegian Environ-

ment Agency will have to decide what is an appropriate

limit for emissions from the Sauda plant under the

revised licence.

Stricter noise limitsThe Norwegian Environment Agency is proposing to

tighten existing noise limits. We therefore reviewed our

noise data from the past few years in consultation with

DNV-GL (formerly Det Norske Veritas), and our interim

conclusions were as follows:

– We cannot meet the stricter noise limits

proposed by the Norwegian Environment Agency

without extensive action.

– For all three plants, a number of measures are

proposed to improve the situation for our

immediate neighbours. The proposed new limits are

practically impossible to achieve at all three plants

under the current pattern of operation.

Cyanide emissions to water

The plants engaged in an exercise

to map the environmental impact

of cyanide emissions to water.

The evaluations were based on

existing analysis of emissions from

the plants. The environmental

impact assessment, conducted

by COWI AS on behalf of Eramet

Norway, reached the following

interim conclusions:

– The frequency of analysis

should be increased for all

plants, in order to obtain a

better picture of the variation

in emissions.

– Several forms of cyanide

(free, total and thiocyanate)

should be analysed, in order

to improve the quality of

impact assessments.

– Better mixing of the emissions

into the volumes of water

should be considered.

ERAMET NORWAY42

Emission limits: Dust = 35 tonnes/year SO2 = 50 tonnes/year

Hg emissions Total (As, Cd, Cu, Cr)

Emission limits:Hg = 36 kg/year Pb = 100 kg/year sum (As, Cd, Cu, Cr) = 50 kg/year

Pb emissionsDust emissons SO2 emissions CO2 emissions

CO

2 to

nnes

/yea

r

Dus

t and

SO

2 to

nnes

/yea

r

Total emissions (As, Cd, Cr, Pb)Copper emissions

Emission limits: Copper = 150 kg/year Total (As, Cd, Cr, Pb) = 20 kg/year

Manganese emissionsDiss. zinc emissions

Emission limits: Dissolved zinc = 400 kg/year Manganese = 400 kg/year

Emission limitsParticle emissons Emission limitsPAH emissions

Kg/

year

Kg/

year

Cop

per

kg/y

ear

Kg/

year

Kg/

year

ZINC/MANGANESE emissions to Saudafjorden 2008-2014*

PARTICLES emissions to Saudafjorden 2008-2014*

DUST, SO2, CO

2 emissions to the air 2008-2014

COPPER/TOTAL (AS, CD, CR, PB) emissions to Saudafjorden 2008-2014*

PAH emissions to Saudafjorden 2008-2014*

Hg/Pb/Total (As, Cd, Cu, Cr) emissions to the air 2008-2014

*Emissions from purifying plants.

CATEGORY 2013 2014

Slag 0 tonnes 0 tonnes

Sludge and dust (landfill) 4,614 tonnes 4,880 tonnes

Residual waste 229.2 tonnes 143 tonnes

Metal waste 332.5 tonnes 64 tonnes

Special waste 35.1 tonnes 84 tonnes

CATEGORY 2013 2014

Paper and cardboard 5.2 tonnes 9.94 tonnes

Wood waste 133.2 tonnes 186 tonnes

Plastic 6 tonnes 4.5 tonnes

Asphalt 84.8 tonnes 8.7 tonnes

Tota

l (A

s, C

d, C

r, P

b) –

kg/

year

WASTE

ERAMET NORWAY SAUDA

50 –45 –40 –35 –30 –25 –20 –15 –10 –

5 –0 –

– 350 000

– 300 000

– 250 000

– 200 000

– 150 000

– 100 000

– 50 000

– 020142008 2009 2010 2011 2012 2013

50 –45 –40 –35 –30 –25 –20 –15 –10 –

5 –0 –

20142008 2009 2010 2011 2012 2013

350 –

300 –

250 –

200 –

150 –

100 –

50 –

0 –20142008 2009 2010 2011 2012 2013

180 –

160 –

140 –

120 –

100 –

80 –

60 –

40 –

20 –

0 –

– 40

– 35

– 30

– 25

– 20

– 15

– 10

– 5

– 020142008 2009 2010 2011 2012 2013

224

4 000 –

3 500 –

3 000 –

2 500 –

2 000 –

1 500 –

1 000 –

500 –

0 –

50 –45 –40 –35 –30 –25 –20 –15 –10 –

5 –0 –

2008 2009 2010 2011 2012 2013 201420142008 2009 2010 2011 2012 2013

43

Emission limits: Dust = 35 tonnes/year SO2 = 50 tonnes/year

Hg emissions Total (As, Cd, Cu, Cr)

Emission limits:Hg = 15 kg/yearr Pb = 150 kg/year Total (As, Cd, Cu, Cr) = 50 kg/year

Pb emissionsDust emissions SO2 emissions CO2 emissions

CO

2 tonn

es/y

ear

Dus

t and

SO

2 tonn

es/y

ear

Total emissions (As, Cd, Cr, Pb)Copper emissions

Emission limits: Copper = 100 kg/year Total (As, Cd, Cr, Pb) = 10 kg/year

Manganese emissionsDiss. zinc emissions

Emission limits: Dissolved zinc = 50 kg/year Manganese = 50 kg/year

Emission limitsParticles emissons Emission limitsPAH emissions

Kg/

year

Kg/

year

Cop

per

kg/y

ear

Kg/

year

Hg,

Pb

– kg

/yea

r

ZINC/MANGANESE emissions to Frierfjorden 2008-2014*

PARTICLES emissions to Frierfjorden 2008-2014*

DUST, SO2, CO

2 emissions to air the 2008-2014

COPPER/TOTAL (AS, CD, CR, PB) emissions to Frierfjorden 2008-2014*

PAH emissions to Frierfjorden 2008-2014*

Hg/Pb/Total (As, Cd, Cu, Cr) emissions to air the 2008-2014

*Emissions from purifying plants.

Tota

l (A

s, C

d, C

r, P

b) –

kg/

year

Tota

l As,

Cd,

Cu,

Cr

– kg

/yea

r

CATEGORY 2013 2014

Slag 86,377 tonnes 78,125 tonnes

Sludge and dust (landfill) 5,100 tonnes 12,250 tonnes

Residual waste 121.5 tonnes 118.2 tonnes

Metal waste 67.5 tonnes 110.3 tonnes

CATEGORY 2013 2014

Hazardous waste 43.3 tonnes 20.4 tonnes

Paper and cardboard 3.8 tonnes 5.8 tonnes

Wood waste 154.6 tonnes 163.7 tonnes

Plastic – 21.4 tonnes

WASTE

ERAMET NORWAY PORSGRUNN

70 –

60 –

50 –

40 –

30 –

20 –

10 –

0 –

– 200 000– 180 000– 160 000– 140 000– 120 000– 100 000– 80 000– 60 000– 40 000– 20 000– 0

40 –

35 –

30 –

25 –

20 –

15 –

10 –

5 –

0 –2010 2011 2013 2014201220092008 20142008 2009 2010 2011 2012 2013

– 100– 90– 80– 70– 60– 50– 40– 30– 20– 10– 0

90 –

80 –

70 –

60 –

50 –

40 –

30 –

20 –

10 –

0 –

24 –22 –20 –18 –16 –14 –12 –10 –

8 –6 –4 –2 –0 –

20142008 2009 2010 2011 2012 20132008 2009 2010 2011 2012 2013 2014

– 10

– 8

– 6

– 4

– 2

– 0

500 –450 –400 –350 –300 –250 –200 –150 –100 –

50 –0 –

5,0 –4,5 –4,0 –3,5 –3,0 –2,5 –2,0 –1,5 –1,0 –0,5 –

0 –2008 2009 2010 2011

10 10 10 10

2012

10

2013

10

2014

10

20142008 2009 2010 2011 2012 2013

44

Hg/Pb/Total (As, Cd, Cu, Cr) emissions to air the 2008-2014

Emission limits: No emission limits

Dust emissions SO2 emissions CO2 emissions

Tonn

es C

O2/y

ear

Dus

t and

SO

2 tonn

es/y

ear

Total emissions (As, Cd, Cr, Pb)Copper emissions

Emission limits: No emission limits

Manganese emissionsDiss. zinc emissions

Emission limits: Dissolved zinc = 240 kg/year Manganese = 420 kg/year

Emission limitsParticles emissons Emission limitsPAH emissions

Kg/

year

Kg/

year

Cop

per

kg/y

ear

Kg/

year

ZINC/MANGANESEemissions to Fedafjorden 2008-2014*

PARTICLES emissions to Fedafjorden 2008-2014*

DUST, SO2, CO2 emissions to the air 2008-2014

COPPER/TOTAL (AS, CD, CR, PB) emissions to Fedafjorden 2008-2014*

PAH emissions to Fedafjorden 2008-2014*

*Emissions from purifying plants.

CATEGORY 2013 2014

Slag 184,547 tonnes 102,994 tonnes

Sludge and dust (landfill) 11,131 tonnes 28,506.1 tonnes

Residual waste 99,3 tonnes 101 tonnes

Metal waste 107.2 tonnes 91.7 tonnes

CATEGORY 2013 2014

Hazardous waste 13.2 tonn 6.718 tonn

Paper and cardboard 7.2 tonn 7.2 tonn

Wood waste 36.9 tonn 34.4 tonn

Plastic 4.7 tonn 5 tonn

WASTE

Tota

l (A

s, C

d, C

r, P

b) –

kg/

year

Pb emissions Total (As, Cd, Cu, Cr)

Emission limits:Hg = 15 kg/year Pb = 150 kg/year Sum (As, Cd, Cu, Cr) = No emission limits

Hg emissions

Pb

kg/

year

Hg/Pb/Total (As, Cd, Cu, Cr) emissions to the air 2008-2014

Hg

and

Tota

l (A

s, C

d, C

u, C

r) –

kg/

year

ERAMET NORWAY KVINESDAL

15 –14 –13 –12 –11 –10 –

9 –8 –7 – 6 –5 –4 –3 –2 –1 –0 –

– 300 000

– 250 000

– 200 000

– 150 000

– 100 000

– 50 000

– 02012 2013 20142008 2009 2010 2011

120 –110 –100 –

90 –80 –70 –60 –50 –40 –30 –20 –10 –

0 –

– 15– 14– 13– 12– 11– 10– 9– 8– 7– 6– 5– 4– 3– 2– 1– 0

2008 2009 2010 2011 2012 2013

61,6

2014

41,4

24 –22 –20 –18 –16 –14 –12 –10 –

8 –6 –4 –2 –0 –

120 –110 –100 –

90 –80 –70 –60 –50 –40 –30 –20 –10 –

0 –2012 2013 20142008 2009 2010 2011

– 50

– 40

– 35

– 30

– 25

– 20

– 15

– 10

– 5

– 02008 2013 20142009 2010 2011 2012

31,6

1 000 –900 –800 –700 –600 –500 –400 –300 –200 –100 –

0 – Kg

pr. å

r

2008 2009 2010 2011 2012

24

2013

24

2014

2424 24 24 24

2100

2012

2100

2013

2100

20142008 2009 2010 2011

2100

2100

2100

2100

45

HES

SAUDA

Injury figures H1 andabsence due to illness

Injury figures H1 andabsence due to illness

Injury figures H1 andabsence due to illness

HES figures

Absence due to illness in percentage and H-value

% absence due to illnessH-value

CATEGORY 2013 2014

Absence due to illness 5.1 % 4.7 %

Injuries w/ absence 1 3

Injury figures H1 (H-figures) 2.7 8.1

Undesirable incidents - environmental 91 103

Complaints from neighbours 30 20

Violation of discharge permit 0 0

PORSGRUNN

HES figures

CATEGORY 2013 2014

Absence due to illness 5.6 % 3.8 %

Injuries w/ absence 0 1

Injury figures H1 (H-figures) 0 3.2

Undesirable incidents - environmental 40 38

Complaints from neighbours 9 15

Violation of discharge permit 0 0

KVINESDAL

HES figures

CATEGORY 2013 2014

Absence due to illness 5.4 % 6.0 %

Injuries w/ absence 1 3

Injury figures H1 (H-figures) 2.7 7.6

Undesirable incidents - environmental 0 19

Complaints from neighbours 0 0

Violation of discharge permit 0 0

Absence due to illness in percentage and H-value

% absence due to illnessH-value

Absence due to illness in percentage and H-value

% absence due to illnessH-value

15

10

5

0 year

year

year

07 08 09 10 11 12 13 14

15

10

5

012 1307 08 09 10 11 14

15

20

10

5

007 08 09 10 11 12 13 14

ERAMET NORWAY46

Eramet Norway’s greatest asset is its highly trained and highly

motivated workforce.

SUSTAINABILITY REPORT 2014 47

CONTRIBUTION TO PARTNERS 2014 Simplified presentation of contribution to partners:

ENVIRONMENTAL INCOME 2014Environmental income is based on sale of CO

2 gas to

Yara’s ammonia factory at Herøya in Porsgrunn for just

under NOK 40 BN, and sale of manganese dust foR NOK 67 BN.

NOK BN % Comments

Suppliers 2 367 70% Purchase values excluding value added tax

Employees 317 9% Amount paid to employees deducted income-taxes transferred to authorities

Authorities 194 6% Employer’s contributions + employees’ taxes + property tax + environmental tax + corporate taxes + consumer tax on energy + customs

Banks 199 6% Financial items net (including foreign exchange items)

Company, group and owners 311 9% Reflects profit/dividend, corporate costs, depreciation, etc.

TOTAL 3389 100 %

INVESTMENTS 2003-2014Yearly investments for Porsgrunn and Sauda during the period 2003–2014, and Kvinesdal for the period 2010–2014.

SALES OF CO-GAS TO YARA

40 NOK BN

3389 NOK BN

SALES OF MANGANESE DUST

67 NOK BN

9%Company, group and owners

6%Authorities

6%Banks

9%Employees 70%

Suppliers

Other investments Environmental and security investments

250

200

150

100

50

020022001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

NOK billion Rehabilitation Sauda furnace 12 Rehabilitation Sauda furnace 11

Rehabilitation Porsgrunn furnace 11Rehabilitation Porsgrunn furnace 10

Rehabilitation Kvinesdal furnace 1

Sauda MOR-filter

Sauda Furnace 12 relining

Mercury cleaning atSauda/Porsgrunn(approx. 100 BN NOK)

CONTRIBUTION TO PARTNERS 2014

*) The total figure includes the year 2000.

CONTRIBUTION TO PARTNERS

2014

2 PLANTS (PORSGRUNN AND SAUDA) 3 PLANTS

Year: 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 TOT*

Environment and Safety investm. 20 27 11 24 27 25 11 18 43 113 37 54 559

Other investments 37 75 132 61 86 192 40 166 81 144 103 87 1313

TOTAL INVESTMENTS 57 102 143 86 113 217 51 184 123 257 140 141 1872

2014

Kvinesdallandfill

ERAMET NORWAY48

Last year 2014 Previous year 2013 Change %

GROSS INCOME 4 225 4 117 108 3%

Cost of used materials and inventory change -2 552 65% -2 547 64% -5 0%

Wages-, salaries and social cost -421 11% -412 10% -9 -2%

Depreciation of assets -268 7% -273 7% 5 2%

Electric energy and other operating cost -710 -3 952 18% -718 -3 950 18% 8 1%

OPERATIONAL RESULT 273 167 106 64%

Interest-/financial cost -199 -225 26

Corporate taxes -20 21 -41

NET RESULT 54 -37 91

PROFIT & LOSS STATEMENT FOR 2013 AND 2014Figures for the Sauda, Porsgrunn and Kvinesdal plants in NOK billion

OPERATING RESULTS 2014

273 NOK BN

4225 NOK BN

67 NOK BN

TURNOVER AND OPERATING RESULTHistory of the Sauda, Porsgrunn and Kvinesdal plants. Figures are in NOK billion.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Accumul.2002-2014

Operational result 746 442 1 431 3 956 -1,074 1 390 419 311 167 273 9 916

Turnover 3 573 3 296 4 446 7 536 3 306 5 260 4 850 4 336 4 117 4 225 54 186

Operating margin 20.9% 13.4% 32.2% 52.5% -32.5% 26.4% 8.6% 7.2% 4.0% 6.5% 18.3%

TurnoverOperating results

18%Electrical power and other operational expenditures.

7%Plant depreciation

write-offs 11%Salaries/wages

and social benefits costs

65%Costs for stock and changes in stock

TURNOVER 2014

FIGURES IN NOK BILLION

DISTRIBUTION OF OPERATIONAL

COSTS 2014

7950.0

7450.0

6950.0

6450.0

5950.0

5450.0

4950.0

4450.0

3950.0

3450.0

2950.0

2450.0

1950.0

1450.0

950.0

450.0

0.00

-450

-950

-1450

-195020112005

746

3 573

2006

442

3 296

2007

1 431

4 446

2008

3 956

7 536

2009

-1 074

3 306

2010

1 390

5 260

2012 2013 2014

419 311 167 273

4 8504 336 4 117 4 225

SUSTAINABILITY REPORT 2014 49

ERAMETNORWAYHES-POLICY

OBJECTIVE

At Eramet Norway, we seek to conduct

our business in such a way as to minimize

potential harm to health, the environment

and safety throughout the value chain.

Metals, materials and other products are to

be manufactured using resource-efficient

processes with due regard for health, the

environment and safety. As an environ-

mentally conscientious company, we are

committed to maintaining a safe working

environment that protects our employ-

ees, facilities and assets. The twin goals

of preventing environmental damage and

continuously improving our performance on

health, the environment and safety underpin

all our activities.

PRIORITIZATION

Health-, environment- and safety-related

activities are to be integrated into all aspects

of our operations. Our chief concern is to

protect our employees and other stake-

holders from workplace injuries and adverse

health effects.

We are committed to complying with all

applicable statutory and regulatory re-

quirements, and with all codes of practice

endorsed by the company.

Environmental and safety aspects will be a

key consideration when we make decisions

on capital expenditure, operating methods

and changes.

RESPONSIBILITY

Managers at all levels have overall responsi-

bility for health, the environment and safety

in their respective areas. They are respon-

sible for planning, organizing and training,

for implementing health, environmental

and safety procedures, and for ensuring

that practices comply with statutory and

regulatory requirements. Managers are to set

specific targets for improvement and seek

the cooperation of employees in achieving

those targets. All managers and employees

have a shared responsibility to create a safe

workplace, to protect the environment, and

to protect the company’s resources and

equipment. All employees are personally

responsible for protecting themselves and

for safely performing their duties according

to established instructions and guidelines.

IMPROVEMENT

Health, the environment and safety are inte-

gral parts of Eramet Norway’s management

system. A continuous improvement program

is to be put in place, based on careful

evaluation of the potential for undesirable

incidents and suggested improvements.

Reporting of undesirable incidents is to be a

priority, as the starting point for implement-

ing corrective and preventive measures.

PREVENTION

Health, environmental and safety procedures

and practices, and any changes to these, are

to be based on a thorough risk assessment.

Operational plans and capital projects will

likewise be subject to an assessment of

the health, environmental and safety risks.

Potential hazards are to be identified and

assessed. Undesirable incidents such as near

mishaps, accidents, injuries to health and

environmental damage are to be recorded

and investigated to determine the root cause

and prevent recurrence.

FOLLOW-UP

To ensure compliance with statutory and

regulatory requirements, and respect for

Eramet’s own environmental goals, policies

and guidelines, a system must be in place

for ongoing reporting, record keeping and

review.

Eramet Norway is to publish an annual

health, environment and safety report.

As an environmentally conscientious company, we are committed to

maintaining a safe working environment that protects our

employees, facilities and assets.

NORSKAKKREDITERING

ISO 9001/ISO 14001/ISO 50001SERTIFISERT BEDRIFT

QUAL 002/EMS 001

The Manganese Source ®

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SAUDAPO. Box 23 - NO-4201 Sauda,tel: +47 52 78 50 00/fax: + 47 52 78 50 02

Organization number:: 980 518 647 I E-mail: eramet@erametgroup.com I www.eramet.no

PORSGRUNNPO. Box 82, NO-3901 Porsgrunn,tel: +47 35 56 18 00/fax: +47 35 55 36 10

KVINESDALØyesletta 61, NO-4484 Øyestrandatel: +47 38 35 72 00/fax: +47 38 35 11 28