scp evidence base: sustainable commodities case studies

SCP Evidence Base: Sustainable Commodities Case Studies ALUMINIUM

December 2006

Development of the Evidence Base: Sustainable Commodities Final Report Case Study - ALUMINIUM

TABLE OF CONTENTS EXECUTIVE SUMMARY ..........................................................................................III 1 COMMODITY OVERVIEW .................................................................................1 2 SUPPLY AND DEMAND STATISTICS AND TRENDS......................................4 3 POLICY AND INITIATIVES................................................................................9 4 SUPPLY CHAIN ANALYSIS. ...........................................................................12 5 IMPACT ASSESSMENT ..................................................................................26 6 SUMMARY .......................................................................................................32

LIST OF TABLES Table 1: Country supply chain information................................................................4 Table 2: Major exporters of to the UK ........................................................................4 Table 3: Proportion aluminium makes up of total exports ..........................................5 LIST OF FIGURES Figure 1: Aluminium supply chain overview .............................................................12 Figure 2: Inputs and outputs of bauxite mining. .......................................................13 Figure 3: Inputs and outputs of Alumina production.................................................15 Figure 4: World alumina production .........................................................................16 Figure 5: Anode production inputs and outputs. ......................................................18 Figure 6: Inputs and outputs of electrolysis..............................................................20 Figure 7: Inputs and outputs of ingot casting ...........................................................22 Figure 8: Energy sources for production of aluminium.............................................27

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Development of the Evidence Base: Sustainable Commodities Final Report Case Study - ALUMINIUM Executive Summary Aluminium is a commodity in high demand due to its usefulness in many industries and its abundance. However, aluminium itself is a difficult commodity to classify, it can be found in its ‘final state’ as non-alloyed aluminium, post electrolysis, but it is also imported in its ore (bauxite) and as its refined ore (alumina) forms. Each of these forms has different elements to their supply chain, notably, the further refined the final imported product, the more technology and energy is needed to create the commodity.

Key trade partners of the UK reflect the level of processing in the life cycle of aluminium. For instance, the running of the Mozal smelter in Mozambique means that it is the UK’s top partner for aluminium non-alloyed. However, for aluminium ore China is our top partner and we can deduce that China is currently mining and exporting large quantities of bauxite. Finally, for aluminium alumina, Jamaica is the UK’s trading partner.

In so far as the environmental impacts of the production of aluminium are concerned, it is noted that electrolysis of aluminium is an energy intensive process and one could presume therefore that the CO2 emissions attributable to this would be a significant carbon footprint. However, much of the energy used for these processes is hydroelectric, and so carbon neutral.

The environmental effects of extraction are very site specific. However, smelting into more refined forms of aluminium occur where there are sources of cheap energy.

The complex nature of the supply chain create difficulties in imposing polices or initiatives. The mining generally occurs in tropical areas where there are natural formations of bauxite and aluminum, processing to alumina can occur on-site. The main impacts arise from clearing the vegetation, exploration and mine development, especially in open cast mining. Other secondary impacts arise from the dumping of waste or the inadequate management of tailings. All of these can affect the local flora and fauna and future land uses such as agriculture and reforestation. In addition, mining can affect local water and air quality, and produce noise and dust, from the removal of overburden, heavy machinery and explosions.

Socio-economic effects could arise depending on how close communities are from the mines, and how much they are involved in the mining operations. Adverse effects could include changes in lifestyles, cultural traditions, displacement, child labour and agricultural activities.

Environmental impacts of primary processing or refining depend on the composition and quality of the ore and the extraction processes. The major negative impacts arise from the disposal or storage of bauxite residue (red mud), which can contaminate industrial, domestic and agricultural water supplies, reduce the availability of arable land, produce dust, and aesthetic impacts.

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Development of the Evidence Base: Sustainable Commodities Final Report Case Study - ALUMINIUM Other effects include airborne pollutants from stockpiles, mills and calcinations operations. In addition, spills can occur at various stages in the refining process producing acidic drainage that can alter the flora and fauna and human beings.

A major environmental problem is air pollution arising from fluoride emissions from smelting. The effects of this are quite significant in terms of workers health inside the plants. Flora and fauna are also affected.

Other impacts include water pollution, noise, heat and solid waste.

In conclusion, there are currently initiatives that are seeking to address the production of aluminium using a lifecycle approach. This leads to some gains in environmental efficiency. Additionally, the re-establishment of the mine sites to their former condition should also be noted.

However, open cast mining can lead to other environmental and social impacts due to the increased access to the mining sites. Particularly the provision of transport infrastructure to the sites means that there are issues over fragmentation and severance for not only habitats but also possibly communities. This increase access to possibly remote areas may also out indigenous rights in peril and create situations where conflict can occur.

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Development of the Evidence Base: Sustainable Commodities Final Report Case Study - ALUMINIUM 1 Commodity Overview 1.1.1 Aluminium is one of the most abundant metals in the world. It has become

the second most used metal after steel. It is an extremely versatile and cost-effective material, due to its light weight, strength, corrosion resistance, impermeability, durability and ease of recycling.

1.1.2 Aluminium ore, known as bauxite, is plentiful and occurs mainly in tropical and subtropical areas such as Africa, West Indies, South America and Australia. There are also some deposits in Europe. Bauxite is refined into aluminium oxide trihydrate (alumina) and then electrolitically reduced into metallic aluminium. Primary aluminium production facilities are located across the world, but principally where there are supplies of inexpensive energy as the production process consumes significant amounts of energy.

1.1.3 The main exporting countries of aluminium in its various forms are the Russian Federation, Australia and Canada for aluminium non-alloyed; the Netherlands, the USA and Germany for aluminium ores and concentrates; and the USA, Canada and Hungary for alumina.

1.1.4 The major exporters of aluminium to the UK are Mozambique for aluminium non-alloyed (44%), China for aluminium ores and concentrates (37%), and Jamaica concentrates (almost all imports to the UK of aluminium oxide (95%)).

1.1.5 The industry has high barriers to entry in the form of large, fixed capital costs and is dominated by a few large companies. The five largest players in aluminium smelting - excluding China and former communist-bloc countries - are Alcoa, Alcan, Pechiney, BHP Billiton and Norsk Hydro, which together controlled 52% of capacity in 2001. Ownership is even more concentrated in major aluminium producing countries themselves where Alcoa and Alcan own around 40% of total production.

1.1.6 In general, a sharp distinction is drawn between producers in “the East,” meaning China and the formerly communist countries of Eurasia, and producers in “the West,” meaning the rest of the world. The East currently produces about 8.4 Mt of alumina for use in the East, and imports an additional 3.9 Mt or so from the West. The West imports no alumina from the East, for several reasons. First, the quality and reliability of Eastern refineries is often too low for the standards of Western buyers. Under extreme market conditions, these problems might be overcome by the refineries in Hungary, the Ukraine, and Kazakhstan — but probably not by others. Second, much of the Eastern alumina is also produced at an uncompetitive high cost, due to outmoded technology and management practices. Although Eastern refiners produce alumina at such high cost, Eastern buyers do not buy more from the West due to two reasons:

Scott Wilson December2006 1


• Eastern tariffs on alumina imports from the West—such as the 20% duty that applies to alumina imported into China—make Eastern alumina price-competitive in certain Eastern countries

• In some parts of the East, smelters are located far from any water port and near to an Eastern alumina refinery, so any Western alumina would have to travel thousands of extra miles over land to reach its destination. Water transport is cheap but land transport is costly, so Eastern alumina can make economic sense for these landlocked smelters.

1.1.7 Essentially all Eastern alumina refineries are owned by Eastern companies or governments, and all Western refineries are owned by Western companies or governments, with very little crossover. In the West, alumina is refined in Australia, the Caribbean, South America, North America, and Europe. In the East, large quantities of it are produced in Kazakhstan, Ukraine, Russia and China.

1.2 Uses

General

1.2.1 Bauxite is refined into alumina, some of which is used in the chemical and other industries but the majority is transformed into aluminium.

1.2.2 The various end-uses for aluminium are as follows:

• Transportation (26%) • Packaging (20%) • Construction (20%) • Electrical (9%) • Other (25%)

Transportation

1.2.3 Aluminium products help to reduce greenhouse gas emissions from transport. Every kilogramme (kg) of aluminium that replaces traditional higher density materials in vehicles can save 20kg of carbon dioxide emissions over the lifetime of the vehicle by creating lighter more fuel efficient vehicles compared to the ones traditionally used.

1.2.4 Approximately 150,000 tonnes of aluminium are used in the UK transport market, 82,000 tonnes as semi products and 70,000 tonnes as castings.

Packaging

1.2.5 Aluminium in food packaging preserves quality and reduces waste through recycling.


Development of the Evidence Base: Sustainable Commodities Final Report Case Study - ALUMINIUM 1.2.6 The bulk of aluminium used in packaging is in the form of rolled products,

either as flexible (fine foils) or rigid packaging (beverage cans).

1.2.7 The use of aluminium in packaging saves food waste by keeping food fresh and energy in transport by reducing the weight of the cargo.

Construction

1.2.8 The main applications are in the construction of windows, doors and facades, followed by roofs and walls. Almost all aluminium used in construction is recycled. Exterior use of the metal also helps the thermal efficiency of buildings (transmits conducted heat and reflects radiant heat).

1.2.9 In the UK, more than 150,000 tonnes of aluminium are used by the building and construction industry each year, the majority of which, is in the form of extruded and rolled products.

Electrical

1.2.10 Aluminium is a good conductor of electricity, transmitting electrical power over long distances and reducing power losses significantly, one kilogramme (kg) of aluminium cable can carry two times the amount of electricity as copper.

1.2.11 Aluminium is used for the production of radiators, cooking utensils, foils, and many other materials. Aluminium is also good as a coagulant in water treatment to remove unwanted material.


Development of the Evidence Base: Sustainable Commodities Final Report Case Study - ALUMINIUM 2 SUPPLY AND DEMAND STATISTICS AND TRENDS 2.1.1 The main exporting countries of aluminium in its various forms detailed in

Table 1. Table 1: Country supply chain information

Aluminium, non alloyed - 2004

Country Trade Value Net Weight (kg) Russian Federation $2,936,393,114 2,646,471,988 Australia $1,866,730,506 1,090,391,468 Canada $1,541,797,259 862,749,408 Brazil $952,138,381 582,942,811 Netherlands $559,642,339 314,462,146 New Zealand $486,703,459 280,663,705 Iceland $508,617,293 277,978,909 Norway $279,035,985 150,479,335 Germany $129,057,000 63,131,692 Aluminium ores and concentrates - 2004

Country Trade Value Net Weight (kg) Netherlands $17,232,457 96,740,339 USA $11,143,594 65,006,000 Belgium $9,804,928 54,733,787 Germany $9,266,000 48,435,477 Italy $3,058,306 41,108,977 Spain $1,326,708 4,158,813 France $230,868 3,066,537 Canada $4,498 300,000 South Africa $34,845 3,374 Alumina (aluminium oxide) other than artificial corundum- 2004

Country Trade Value Net Weight (kg) USA $407,187,894 1,201,910,485 Canada $79,118,320 258,353,088 Hungary $46,857,000 170,664,066 Japan $102,960,187 154,470,389 Malaysia $7,169,119 136,746,000 Russian Federation $19,222,182 62,300,201 United Kingdom $4,477,887 5,765,632 Iceland $101,979 2,345,062 China, Hong Kong SAR $2,934,454 2,050,000

2.1.2 The major exporters of aluminium to the UK are detailed below in Table 2. Table 2: Major exporters of to the UK


Country Trade Value Net Weight (kg) Total $212,221,546 100.0% 116,544,757 100.0% Mozambique $85,615,285 40.3% 51,578,769 44.3%


Development of the Evidence Base: Sustainable Commodities Final Report Case Study - ALUMINIUM Norway $32,365,015 15.3% 16,862,931 14.5% Russian Federation $27,005,202 12.7% 12,987,339 11.1% Canada $16,893,588 8.0% 9,454,343 8.1% Australia $13,081,877 6.2% 6,857,160 5.9% Netherlands $9,292,590 4.4% 4,649,404 4.0% Iceland $7,042,207 3.3% 3,716,540 3.2% Brazil $6,141,256 2.9% 3,296,158 2.8% New Zealand $3,549,789 1.7% 1,832,101 1.6% Germany $3,416,969 1.6% 1,695,518 1.5% Other $7,817,768 3.7% 3,614,494 3.1% Aluminium ores and concentrates - 2004

Country Trade Value Net Weight (kg) Total $30,902,335 100.0% 122,020,959 100.0% China $10,744,242 34.8% 44,659,966 36.6% Italy $8,216,388 26.6% 20,030,000 16.4% Belgium $2,621,139 8.5% 14,698,760 12.0% Germany $2,321,598 7.5% 8,883,659 7.3% Spain $1,839,038 6.0% 6,027,490 4.9% USA $1,499,645 4.9% 1,564,590 1.3% South Africa $1,302,145 4.2% 8,140,205 6.7% Netherlands $1,241,569 4.0% 8,055,906 6.6% France $632,585 2.0% 8,827,276 7.2% Canada $285,986 0.9% 703,221 0.6% Other $198,000 0.6% 429,886 0.4% Alumina (aluminium oxide) other than artificial corundum- 2004

Country Trade Value Net Weight (kg) Total $60,628,300 100.0% 175,721,842 100.0% Jamaica $38,491,364 63.5% 166,933,000 95.0% USA $17,282,383 28.5% 3,293,351 1.9% Malaysia $1,214,588 2.0% 17,540 0.0% Russian Federation $1,200,369 2.0% 1,876,900 1.1% China $917,686 1.5% 1,930,368 1.1% Japan $640,499 1.1% 154,184 0.1% Canada $473,731 0.8% 287,654 0.2% Hungary $204,372 0.3% 364,410 0.2% Iceland $53,191 0.1% 818,020 0.5% United Kingdom $48,504 0.1% 1,740 0.0% Other $101,613 0.2% 44,675 0.0%

2.1.3 Aluminium represents only a very small share of total exports for the major aluminium exporting countries, except for Iceland, where exports of non-alloyed aluminium account for 18% of total exports. These figures can be seen in Table 3 below.

Table 3: Proportion aluminium makes up of total exports


Country % of total exports Australia 1.92%



Brazil 1.00% Canada 0.49% Germany 0.01% Iceland 18.03% Netherlands 0.19% New Zealand 2.39% Norway 0.35% Russian Federation 1.62% Aluminium ores and concentrates - 2004

Country % of total exports Belgium 0.00% Canada 0.00% China 0.00% France 0.00% Germany 0.00% Italy 0.00% Netherlands 0.01% South Africa 0.00% Spain 0.00% USA 0.00% Alumina (aluminium oxide) other than artificial corundum- 2004

Country % of total exports Canada 0.02% China 0.00% China, Hong Kong SAR 0.00% Hungary 0.08% Iceland 0.00% Japan 0.02% Malaysia 0.01% Russian Federation 0.01% United Kingdom 0.00% USA 0.05%

2.1.4 For aluminium, and mined commodities in general, only a very small portion of the footprint is related to the extent of land disturbed within the country of origin. The majority stems from the demand placed by emissions of carbon dioxide during the extraction and refining process. As, 1) this demand does not take place within the exporting country, but on the global commons, and 2) estimates of emissions of CO2 during the extraction and refining of aluminium were not readily available a footprint calculation is not included here.

2.1.5 In Australia the aluminium industry is almost entirely owned by foreign companies, mainly from the UK, Japan, USA, France and Germany. The companies that control the smelting industry are Rio Tinto, Alcoa, Pechiney, VAW and a consortium of Japanese companies.

2.1.6 Aluminium production in China has grown substantially in recent years. Towards the end of 2002 there were 135 smelters in the country with a



production capacity of 5.39Mt/y. The largest primary aluminium producer is the Aluminium Corporation of China (Chalco), which is also the only alumina producer in China. The aluminium processing industry is going through a period of restructuring and updating of technologies and equipments. Recent changes in smelting technologies have enabled a rapid increase in primary aluminium production. China lags behind the rest of the world in recovery, thermal efficiency of processing and die life. The industry is consolidating, with primary processing companies vertically integrating and adding downstream fabrication capability.

2.1.7 Consumption of primary aluminium in China has also grown significantly, making China the second largest global aluminium consumption market, after the USA. The recycling aluminium industry has developed alongside the aluminium, however, China still has a way to go. Its recycled aluminium consumption per person is half of the world average of 2kg.

2.1.8 In the Russian Federation, the major primary aluminium producers are RUSAL and USAL. There are around 150 secondary aluminium producers. A principal strategy of the Russian aluminium industry is to develop stable power supplies. Access to cheap energy is a competitive advantage in the country, whereas the lack of high quality bauxite constitutes a disadvantage.

2.1.9 In Germany, aluminium is produced and processed in around 600 plants, which include primary and secondary aluminium smelters. Recycled aluminium production was 10% higher than the aluminium produced by raw materials in 2005.

2.1.10 In Mozambique, aluminium is produced by the Mozal smelter, jointly owned by BHP Billiton (66%), IDC (20%), Mitsubishi (12%) and the Mozambique Government (2%). Construction of Phase I of the 250,000 tonnes per annum smelter on the 140-hectare site near Maputo started in 1998 and was completed in 2000. Phase II was inaugurated in 2003, raising capacity to 506,000 tonnes per annum. As a result, production increased to 549,000 metric tonnes (t) in 2004 compared with 407,000 t in 2003 and 273,000 t in 2002. The main markets are the European Union and the automotive industry in Asia.

2.1.11 Mozal is focused on direct production and export of aluminium and relies heavily on the purchase of intermediate materials and services, most of which are imported. However, it benefits from the fact that BHP Billiton has its own aluminium production vertically integrated with mines and smelters positioned alongside interests in electricity and the final consumption of aluminium throughout the world.

2.1.12 Mozambique was Africa’s second leading producer of aluminum behind South Africa. In 2004, aluminum accounted for 61% of Mozambique’s total exports. From 2000 to 2004, aluminum accounted for 75% of the total



growth in the country’s exports. All of Mozambique’s bauxite production was exported in 2004.

2.1.13 In Jamaica, Falconbridge Ltd., a Canadian, international mining and metals company, has a 50% interest in the St. Ann Bauxite Mine, located in Discovery Bay. St. Ann Bauxite Mine has a production capacity of 4.5 million tonnes of ore per year. Falconbridge’s operations are worldwide, with alumina refining (Gramercy, Louisiana (50% interest)), primary smelting (New Madrid, Missouri) and rolling mills (Huntingdon, Tennessee; Newport, Arkansas; Salisbury, North Carolina) in the USA. The company’s aluminium business operates under the name Noranda Aluminium.

2.1.14 In 2004, bauxite and alumina production amounted to about 13.3 Mt and 4 Mt, respectively. Jamaica depends on imported petroleum for most of its energy needs, imported from Mexico and Venezuela under the San José Accord.


Development of the Evidence Base: Sustainable Commodities Final Report Case Study - ALUMINIUM 3 Policy and Initiatives

Supra National Policies

3.1.1 The EU has decided to introduce an emissions trading scheme to curb Europe an industry’s emissions, starting with a pilot phase running from 2005 to 2007, followed by a second phase from 2008 to 2012. In its first phase, the EU emissions trading scheme (EU ETS) will cover carbon dioxide (CO2) emissions from power generation, oil refineries, coke ovens, iron and steel, cement, lime, glass, ceramics, and pulp and paper, as well as from all combustion plants with a rated thermal input of more than 20MW of capacity.

3.1.2 The stated purpose of the EU ETS is to cap industry’s emissions with a policy instrument that helps to minimise cost, so that it affects its competitiveness the least. The economic rationale behind emissions trading, applied to a large number of installations belonging to heterogeneous sectors, is that no source should pay more, at the margin, than another to reduce its emissions.

3.1.3 The objective of the EU ETS is embedded in the broader regime created by the Kyoto Protocol, but it applies only to a subset of countries whose industry, in some cases, competes with producers whose emissions are not limited. This step has triggered a debate among industrialists on how much the EU ETS would affect their competitiveness while leaving others’ unharmed.

National Policies

3.1.4 Mozambique

3.1.5 The government elected in 1994 was tasked with the post war reconstruction of the country. Among other initiatives designed to address the needs of transition, the government developed three important policies: the Agrarian Policy, the Land Policy and the Environmental Policy. The latter has two sets of instruments: the National Environmental Management Programme (NEMP) and the National Conservation Strategy (NCS) within which an institutional and legal framework has been developed. The NEMP is Mozambique’s master plan for environmental management. The aim is to treat environmental management as an important component of the government programme for poverty reduction and sustainable development. The United Nations Development Programme (UNDP) works in the promotion of sustainable environmental practices focusing on capacity building of key government institutions involved in the management of the country’s natural resources and on fulfilling the requirements of the international conventions and protocols. It supports the NEMP programme and focuses on its sustainability.


Development of the Evidence Base: Sustainable Commodities Final Report Case Study - ALUMINIUM 3.1.6 The Mozambique Ministry of Environmental Coordination (MICOA) was

created in 1995 in the context of post war reconstruction with the aim of integrating environmental considerations with other issues. MICOA was given the authority to oversee implementation of the NEMP.

3.1.7 Jamaica

3.1.8 Jamaica is a signatory to the UNDP and through this the United Nations Framework Convention on Climate Change (UNFCCC) and the Convention on Biodiversity (CBD). Jamiaca has produced a Green Paper on the National Watershed Policy and a National Biodiversity Strategy, a National Programme for Recycling and Recovery of Refrigerants and the Promotion of Community Involvement in Ecosystem Management in Protected Areas.

3.1.9 There are various NGOs that carry out environmental research, monitoring, and community education programmes, such as the Negril Environmental Protection Trust, St. Ann Environmental Protection Agency, Friends of the Sea and the Negril Coral Reef Preservation Society. The United States Agency for International Development (USAID) supports several NGOs and community based organisations to promote environmental sound practices and works closely with the National Environment and Planning Agency.

Industry Initiatives

3.1.10 The International Aluminium Institute (IAI) has established a Bauxite Mining and Alumina Refining Task Force to spread good practice throughout the global industry. Life cycle analyses exist to determine aluminium’s environmental performance and the IAI monitors performance and produces industry surveys every four years. It has also set in motion many national schemes to encourage recycling of aluminium.

3.1.11 Throughout the industry ISO 14001 represents the framework for environmental performance improvement through planning, operating monitoring and auditing. The Noranda Recycling facility owned by Falconbridge acquired ISO 14001 international standard for environmental management systems in 2005.

3.1.12 Although legal requirements and environmental policies for plant operation in general have grown in the last few years, environmental protection is regarded by the industry as a self-imposed requirement. Eco-audits and the systematic recording of relevant data at the production level are becoming more important.

3.1.13 About 10% of all investment in plants in Germany goes towards environmental protection at plant level (Gesamtverband der Aluminiumindustrie (GDA)). Environmental protection at plant level, the optimisation of production processes and the installation of pollution control equipment have reached a significant level in the country, converting it into a worldwide example.


Development of the Evidence Base: Sustainable Commodities Final Report Case Study - ALUMINIUM 3.1.14 In Canada, Falconbridge is involved in an initiative of the Mining Association

of Canada (MAC) entitled ‘Towards Sustainable Mining’ (TSM). The firm is also a founder member of the International Council on Mining and Metals (ICMM), an association that pursues improved sustainable development performance and identifies and advocates good practice for the industry. In 2005, the ICMM announced that its members would report their performance against a set of principles using the Global Reporting Initiative (GRI) Guidelines, a framework with international recognition for reporting sustainable development performance. Within Canada, Falconbridge also convenes the Base Metal Smelter Environmental Advisory Group, comprising provincial and federal governments, environmental NGOs and labour organisations.

3.1.15 Canada’s ratification of the Kyoto Protocol requires that all Canadian facilities comply with greenhouse gas (GHG) emission targets.

3.1.16 The ICMM publishes various documents intended to aid governments and companies in the applications of efficient policies for the sector Examples include: ‘Financial Assurance for Mine Closure and Reclamation’, ‘Mining and Indigenous Peoples Issues Review’, ‘Good Practice in Emergency Preparedness and Response’ and the ‘Community Development Toolkit’.

3.1.17 In Mozambique, Mozal carried out social and environmental impact assessments for the setting up of its operations. These were reviewed by the International Finance Corporation (IFC) and the Mozambique Ministry of Environmental Coordination (MICOA) which continues to fulfil a monitoring and auditing role.


Development of the Evidence Base: Sustainable Commodities Final Report Case Study - ALUMINIUM 4 Supply Chain analysis.

Aluminium Supply Chain

Extraction

Primary Processing

Transport

Consumption

Secondary Processing

Alumina Production

Ingot Casting

Bauxite Mining

Aluminium Products

Anode Production

Coal Mining

Electrolysis

Coke and Pitch Production

Extraction

Primary Processing

Transport

Consumption

Secondary Processing

Alumina Production

Ingot Casting

Bauxite Mining

Aluminium Products

Anode Production

Coal Mining

Electrolysis

Coke and Pitch Production

Figure 1: Aluminium supply chain overview

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4.1 Extraction-Bauxite Mining

Figure 2: Inputs and outputs of bauxite mining.

4.1.1 Bauxite mining activities mainly take place in tropical and subtropical areas of the earth.

4.1.2 Most bauxite is mined in an open pit mine, usually 4-6 metres thick under a shallow covering of topsoil and vegetation.

4.1.3 Bauxite mines usually operate for many decades and are in general owned or associated with alumina and aluminium producers. The mean expected life for operations is 27.4 years and the mean expected lifespan from commissioning to closure is 64.2 years. It is estimated that the known reserves of alumina containing ore will sustain the present rate of mining for 300 to 400 years.

4.1.4 Commercial bauxite can be separated into bauxite composed of mostly alumina trihydrates and those composed of alumina monohydrates. The trihydrate aluminas contain approximately 50% alumina by weight, while monohydrates are approximately 30%. Monohydrates are normally found close to the surface (e.g. Australia), while trihydrates tend to be at deeper levels (e.g. Brazil).


Development of the Evidence Base: Sustainable Commodities Final Report Case Study - ALUMINIUM 4.1.5 Bauxite mining is a fairly standardised process however bauxite derived

from forested areas is distinguished from that extracted from grassland areas by the need for beneficiation (washing). The wastewater from washing is normally retained in a settling pond and recycled for continual reuse.

4.1.6 Other activities associated with Bauxite mining include the treatment of mining site residues and wastes as well as land restoration following mining activity.



4.2 Processing (Primary)-Alumina Production Figure 3: Inputs and outputs of Alumina production

4.2.1 In alumina production, also commonly named alumina refining, bauxite is converted to aluminium oxide using the Bayer process, which uses Caustic Soda and Calcined Lime (Limestone) as input reactants. Bauxite is ground and blended into a liquor containing sodium carbonate and sodium hydroxide. The slurry is heated and pumped to digesters, which are heated pressure tanks. In digestion, iron and silicon impurities form insoluble oxides called Bauxite residue. The Bauxite residue settles out and a rich concentration of sodium aluminate is filtered and seeded to form hydrate alumina crystals in precipitators. These crystals are then heated in a calcining process. Wide variations in energy use in the Alumina production process can be linked to the type of kiln used in the calcining process. One of two types of kilns is typically used: rotary and fluid bed. The fluid bed or stationary kiln is newer and significantly more energy efficient. The heat in the calciners drive off combined water, leaving alumina. Fresh Water (input taken conservatively whether the water used is from fresh, underground, mine waste water, etc. sources) or Sea Water is used as cooling agent.


Development of the Evidence Base: Sustainable Commodities Final Report Case Study - ALUMINIUM 4.2.2 The process of alumina refining is usually carried out near to the mining

operations.

4.2.3 World alumina production is distributed as follows across the regions as detailed in Figure 4.

Africa1%

East/Central Europe

10%

Latin America23%

Western Europe12%

Asia10%

North america12%Oceania

32%

Figure 4: World alumina production1

4.2.4 Most Western companies that produce alumina are also integrated aluminum producers. In general, alumina can be produced at low cost in Australia, the Caribbean, and South America, where the refinery can be sited near a bauxite mine. Alumina refineries in the United States and Europe have higher costs, because they often import their bauxite from overseas. The vast majority of the world’s alumina is metallurgical alumina—that is, alumina fit for aluminum manufacture, as opposed to chemical or other uses.

4.2.5 Over the past decade, producers had already been working to optimise operations and increase their energy efficiency through better process control and operating practices, including the use of point feeders in smelting. Now, in response to uncertainties in power supply, some aluminum producers may consider investing in distributed generation technologies (e.g., gas turbines, wind power) that could theoretically produce reliable power at affordable rates. Worldwide smelter expansions and new plant construction have been focused on nations with low-cost energy and labour resources. Northern Brazil, Canada, Venezuela, Argentina, and Russia all have relatively low-cost hydroelectric power available. In addition, countries in the Persian Gulf are using their abundant natural gas reserves to generate electricity to supply smelters. China is expected to become a much larger player as well, once its massive new hydroelectric capacity (under construction) comes on-line.

1 Source: IAI.


Development of the Evidence Base: Sustainable Commodities Final Report Case Study - ALUMINIUM 4.2.6 Competition in the aluminium production takes place in the international

arena where companies, not countries, are the main actors. Since aluminium is a relatively expensive metal to produce as a result of its high electricity consumption, aluminium smelters are concentrated in locations with access to cheap energy, such as hydroelectricity. But costs are inflated for many aluminium companies by the fact that the raw materials – bauxite and alumina - are found several thousand miles away from where their smelters are situated, adding the expense of long-distance shipping. Smelting capacity is being expanded in several areas of the world from Russia to the Middle East and Africa.



4.3 Processing (secondary)-Anode Production

Figure 5: Anode production inputs and outputs.

4.3.1 There are two types of aluminium smelting technologies that are distinguished by the type of anode that is used in the reduction process: Söderberg and Prebake. Söderberg design uses a single anode, which covers most of the top surface of a reduction cell (pot). Anode paste (briquettes) is fed to the top of the anode and as the anode is consumed in the process, the paste feeds downward by gravity. Heat from the pot bakes the paste into a monolithic mass before it gets to the electrolytic bath interface. The Prebake design uses prefired blocks of solid carbon suspended from Steel axial busbars. The busbars both hold the anodes in place and carry the current for electrolysis.

4.3.2 The process for making the aggregate for briquettes or prebake blocks is identical. Petrol Coke is calcined, ground and blended with Pitch to form a paste that is subsequently formed into blocks or briquettes and allowed to cool. While the briquettes are sent direct to the pots for consumption, the blocks are then sent to a separate baking furnace.

4.3.3 Baking furnace technology has evolved from simple pits that discharged volatiles to atmosphere during the baking cycle to closed loop type designs that convert the caloric heat of the volatiles into a process fuel that reduces



energy consumption for the process. Baking furnace uses refractory materials for linings, fresh water (input taken conservatively whether the water used is from fresh, underground, mine waste water, etc. sources) (or possibly sea water) as cooling agent. Baking furnace account for most of energy consumption (fuelled by coal, diesel oil, heavy oil, natural gas, electricity).

4.3.4 Additional operations associated with this stage of aluminium processing include the treatment of wastes and maintenance of plant equipment and machinery.



4.4 Processing (secondary)-Electrolysis

Figure 6: Inputs and outputs of electrolysis

4.4.1 The Electrolysis process is also commonly named Aluminium Smelting.

4.4.2 Molten aluminium is produced from alumina (aluminium oxide) by the Hall-Heroult electrolytic process that dissolves the alumina in a molten cryolite bath (re: Aluminium Fluoride input) and passes current through this solution, thereby decomposing the alumina into aluminium and oxygen. Aluminium is tapped out of the reduction cell (pot) at daily intervals and the oxygen combines with the carbon of the anode to form carbon dioxide.

4.4.3 The pot consists of a Steel (for cathodes) shell lined with Refractory materials insulation and with a hearth of carbon (Cathode Carbon (for Electrolysis)). This is known as the cathode. The cathode is filled with a cryolite bath and alumina and an anode is suspended in the bath to complete the circuit for the pot. Once started, a pot will run continuously for the life of the cathode, which may last for in excess of 10 years. At the end of its life each pot is completely refurbished. Steel from used cathodes is recovered for recycling. Refractory materials are either recycled as byproducts or landfilled (Refractory waste – landfill). Spent pot linings (SPL), which include a carbon-based (SPL carbon) and a refractory-based



part (SPL refractory bricks) are either recycled as by-products (SPL carbon fuel/reuse, SPL refr.bricks-reuse) or landfilled (SPL –landfill).

4.4.4 The current in a pot varies from 60,000 to over 300,000 amperes at a voltage drop of 4.2 to 5.0 volts. Pots produce around 16.2 plus/minus 0.6 pounds per day of aluminium for each kiloampere at an operating efficiency of 91% plus/minus 4%. Electricity consumption is the major energy aspect of electrolysis.

4.4.5 Aluminium smelters typically use air pollution control system to reduce emissions. The primary system is typically a scrubber. Some plants use dry scrubbers with alumina as the absorbent that is subsequently fed to the pots and allows for the recovery of scrubbed materials. Other plants use wet scrubbers, which recirculate an alkaline solution to absorb emissions: the wet scrubbing process uses fresh water or sea water as input and result in corresponding fresh water or sea water discharges. Unlike dry scrubbers, wet scrubbers absorb carbon dioxide, nitrogen oxide and sulphur dioxide that are entrained in the waste water liquor (which is subsequently treated prior to final discharge). Scrubber sludges are landfilled.



4.5 Processing (secondary)-Ingot Casting

Figure 7: Inputs and outputs of ingot casting

4.5.1 Molten metal syphoned from the pots (Electrolysis metal) is sent to a resident casting complex found in each smelter. In some cases, due to proximity, molten metal is transported directly to a shape casting foundry. Remelt ingot and Outside scrap may also be used as metal input. Molten metal is transferred to a holding furnace and the composition is adjusted to the specific alloy requested by a customer, by use of Alloy additives. In some instances, depending on the application and on the bath composition in the pots, some initial hot metal treatment to remove impurities may be done.

4.5.2 When the alloying is complete, the melt is fluxed to remove impurities and reduce gas content. The fluxing process consists of slowly bubbling a combination of nitrogen and chlorine or carbon monoxide, argon and chlorine through the metal (Chlorine use result in HCl (Hydrogen Chloride) air emissions). Fluxing may also be accomplished with an inline degassing technology, which performs the same function in a specialised degassing unit. Fluxing removes entrained gases and inorganic particulates by floatation to the metal surface. These impurities (typically called dross) are skimmed off. The skimming process also takes some aluminium and as such drosses are normally further processed to recover the aluminium



content and to make products used in the abrasives and insulation industries.

4.5.3 Depending on the application, metal is then processed through an inline filter to remove any oxides that may have formed. Metal is then cast into ingots in a variety of methods: open molds (typically for remelt ingot), through direct chill molds for various fabrication shapes, electromagnetic molds for some sheet ingots, and through continuous casters for aluminium coils. Fresh water (input taken conservatively whether the water used is from fresh, underground, mine waste water, etc. sources), seldom sea water, is used for cooling (often with re-circulation through a cooling tower and water treatment plant) and is subsequently discharged, where suspended solids and oil/grease (or total HC) are monitored.

4.5.4 Energy used for ingot casting is electricity, natural gas or heavy oil. Diesel oil is normally used for internal plant transport.

4.5.5 While recovery and handling of internal process scrap is usually included in the Ingot Casting operation as mentioned above, some prefer to sell it out (scrap sold as by-product for external recycling). Dross, filter dust from melting furnace air filtration and refractory material from furnace internal linings are either recovered as by-products for external recycling, or landfilled (dross – landfill, filter dust – landfill, refractory waste – landfill).

4.6 Transport 4.6.1 Aluminium is transported from the mine to the refineries and then to the

smelters. Refineries are sometimes located in relatively close proximity to mines, but that is not the case with smelters due to their particular energy requirements.

4.6.2 Most of the bauxite from St. Ann Mine is refined into alumina at the Gramercy refinery in Louisiana (USA), and the rest is sold to third parties. Falconbridge has the Noranda Recycling plant in Ontario, Canada. It is one of the world’s largest recyclers of electronic components, such as mobile phones, printers, monitors and computers.

4.6.3 The worldwide distribution of BHP Billiton aluminium is coordinated through The Hague. Deliveries to Europe from there are done via truck, railcar or barge.

4.6.4 The Australian aluminium industry consumes almost 15% of all electricity consumed in the country and also gas and other fuels although in smaller amounts. The greenhouse gas emissions produced as a result are quite significant. The smelting industry was responsible for 5.9% of Australia’s total greenhouse gas emissions in 1998-99.

4.6.5 The Australian industry gets more than 90% of its electricity from coal-fired power stations, unlike the global industry, which draws the majority of its



energy inputs from hydropower and only 30% from coal. Therefore, Australian production is the most greenhouse intensive, followed by Asia, Africa, North America, Europe and Latin America. Aluminium smelting in Australia produces 2.5 times more greenhouse gas from electricity generation per tonne of aluminium than the world average.

4.6.6 All of Australian aluminium smelters are located close to or on the coastline. Bauxite is mined in three regions: the Cape York Peninsula in Queensland (Weipa), Arnham Land in the Northern Territory (Gove), and in the Darling Ranges in the south west Western Australia (Boddington-Mt Saddleback, Huntly and Willowdale).

4.6.7 The aluminium industry in Australia has been operating for over 50 years. There are five bauxite mines, seven alumina refineries, six aluminium smelters, 12 extrusion mills and two rolled product plants in Australia. Two of the bauxite mines (Gove and Weipa) have around 50% available alumina and are amongst the world’s highest grade deposits.

4.7 Recycling 4.7.1 All aluminium products can be recycled indefinitely.

4.7.2 The recycling process uses 5% of the energy that would be required to produce it from raw materials, because the metal has a low melting temperature. It is estimated that recycling of used aluminium saves 84 tonnes of greenhouse gas emissions per year.

4.7.3 Recycled aluminium is described as new scrap, surplus material that arises from manufacture process, or old scrap, the material that has been used and discarded. The scrap is generally transported by road to the recycling plant.

4.7.4 Approximately one third of the aluminium used worldwide is supplied from recycled aluminium alloys.

4.7.5 1998 data from the IAI reveals that recycled old and new scrap could fulfil about 40% of global demand for aluminium. Recycled scrap came from the following uses:

• Packaging = 17% • Transport = 38% • Building = 32% • Other products = 13%

4.7.6 It is estimated that the recycling rate for old scrap is about 73%, taking into account the lifetime of the product. The recycling rate of the aluminium beverage can in the UK is 42%.


Development of the Evidence Base: Sustainable Commodities Final Report Case Study - ALUMINIUM 4.7.7 The recycling rate for new scrap is 100%. For old scrap the recycling rate

can also be 100%, depending on the application. The recycling rate per application is as follows:

• Transport: over 95% • Building: 92 - 98% • Packaging: 28% (UK figure)

4.7.8 The use of the best technology guarantees that the recycled aluminium is as good as the primary one.


Development of the Evidence Base: Sustainable Commodities Final Report Case Study - ALUMINIUM 5 Impact Assessment 5.1.1 The environmental effects of mining are very site specific. The main

impacts arise from clearing the vegetation, exploration and mine development, especially in open cast mining. Other secondary impacts arise from the dumping of waste or the inadequate management of tailings. All of these can affect the local flora and fauna and future land uses, such as, agriculture and reforestation. In addition, mining can affect local water and air quality and can also produce noise and dust from the removal of overburden, heavy machinery and explosions.

5.1.2 Socio-economic effects could arise depending on how close communities are from the mines and how much they get involved in the mining operations. Adverse effects could include changes in lifestyles, cultural traditions and agricultural activities.

5.1.3 Environmental impacts of primary processing or refining depend on the composition and quality of the ore and the extraction processes. The major negative impacts arise from the disposal or storage of bauxite residue (red mud), which can contaminate industrial, domestic and agricultural water supplies, reduce the availability of arable land, produce dust and aesthetic impacts.

5.1.4 Other effects include airborne pollutants from stockpiles, mills and calcinations operations. In addition, spills can occur at various stages in the refining process producing acidic drainage that can alter the flora and fauna and human beings.

5.1.5 The major environmental problem is air pollution arising from fluoride emissions from smelting. The effects of this are quite significant in terms of workers health inside the plants. Flora and fauna are also affected.

5.1.6 Other impacts include water pollution, noise, heat and solid waste.

5.1.7 Aluminium production consumes a significant amount of energy. Therefore, plants must be located close to cheap sources of energy production, such as hydroelectric dams. These require large areas to be depopulated and flooded, which produces changes in the area’s ecosystem.



Hydropower57%

Gas7%

Oil1%

Coal29%

Nuclear6%

Figure 8: Energy sources for production of aluminium

5.1.8 Information from Falconbridge indicates that inputs for the their aluminium production is split as follows:

• Energy: 47%. Diesel fuel and fuel oil provide the bulk of the energy

required to mine and transport bauxite • Labour: 24% • Supplies and consumables: 31% • Contract and other: 23%

5.1.9 The most important energy source for the aluminium industry is hydroelectricity. Around 60% of the world’s primary aluminium is already being produced using it. Figure 8 shows the various sources of energy supply for the industry.

5.1.10 The recycling aluminium industry in China is characterised by a large number of dispersed small-scale companies, dated technology and significant waste of energy and resources, which produces severe environmental pollution.

Site Area

5.1.11 The location of the Mozal smelter required the resettlement of 80 families and the provision of agricultural land for 910 farmers (the site that was originally suggested was densely populated and a social impact assessment led to the current alternative location).

Water

5.1.12 Mining operations produce water contamination.


Development of the Evidence Base: Sustainable Commodities Final Report Case Study - ALUMINIUM 5.1.13 According to the rehabilitation survey, many operations have procedures to

prevent hydrocarbon and chemical contamination of the surface water leaving their mines.

5.1.14 Many of them also have sewage treatment plants and or septic tanks to treat effluents and to avoid biological contamination of ground and surface water.

5.1.15 Mining does not always go below the water table.

Dust

5.1.16 Mining operations produce dust. To prevent this, the main method is to water haul roads. Additionally, chemical additives are used by some operators to control dust.

Noise

5.1.17 Noise from mining and transportation is generally considered an issue, as revealed by neighbours of five operators producing around 40% of the reported bauxite. Noise mitigation strategies used include maintaining buffer areas, modifying the timing of operations, modifying mining equipment and changes to mining methods.

Socio Economic

5.1.18 A mine, refinery or smelter can have various negative impacts on local communities, such as increased demand on services and housing; land degradation; landscape alteration; reduced access to public land; displacement of local population; transculturisation; noise and dust; and water contamination.

Mozambique:

5.1.19 The Mozal Community Development Trust (MCDT) was created in 2000, with the objective of facilitating projects and programmes to improve the quality of life of the communities surrounding the Belululane Industrial Park. Initiatives started in January 2001 and the initial budget of £1.1 million ($2 million) per annum has been increasing ever since. The trust operates in partnership with NGOs and agencies. It focuses on the smelter’s vicinity and delivers projects related to community infrastructure, health, small enterprise development, education, sports and culture. The projects are assessed under the criteria of sustainability, poverty alleviation and identified social issues.

5.1.20 Mozambique’s malaria infection rates where very high prior to the construction of the Mozal smelter. The MCDT has been active in trying to eradicate malaria and within three years the infection rate was reduced from



85% to 19% in the Beluluane area. The MCDT also contributed to HIV/AIDS programmes.

5.1.21 Mozal provided funding for the construction of a secondary school, which accommodates 1,800 students and plans to expand its capacity to 2,400. A primary school was also built. MCDT also carries out sports and cultural activities and each year supports the training of 40 teachers.

5.1.22 A residential area is being developed within the vicinity of the smelter, as many employees were having difficulty buying homes. 96 houses were constructed and another 96 houses are being built. Mozal is in charge of the construction process, the procurement of materials and the training of local enterprises.

5.1.23 Mozal funded the development of public infrastructure in the region including roads, bridges, potable water supplies, electricity supplies, telephone services, sewage treatment works, housing units, general amenities buildings, an import/export quay, infrastructure at the port of Matola and a landfill facility to handle hazardous waste from industries in the region.

5.1.24 The Mozal smelter employs more than 1,100 permanent people, of which 93% are Mozambican. The company provides training and development of the local labour force. However, some occupations require expertise not always locally available and that cannot be rapidly acquired, such as rehabilitation.

5.1.25 A partnership between Mozal, the African Project Development Facility (part of the IFC), and the Mozambique Government Centre for Promotion of Investment (CPI) established an SME Empowerment and Linkage Programme (SMEELP), which has been extended under the name of Mozlink. As a result, smelter operations have around 200 local suppliers, which represents 30% of goods and services supplies, excluding raw materials and electricity. A small and micro enterprise programme was also established. Capacity building of some state functions also took place. Mozal contributed to the start up of a project aimed at improving the qualifications of Mozambique’s engineers and technologists. An agriculture development programme (ADP) was implemented between 2000 and 2004 directed at 650 farmers relocated from the Mozal site.

5.1.26 Despite all the efforts, development of local expertise and productive capacity is happening at a low pace. Also, technology transfer has not been important since contracts have been short-lived. Not enough investment in upgrading industrial capacity has taken place. Only few local suppliers can meet Mozal’s standards and few have the resources to improve their capabilities. Many of the suppliers are South African companies that have set up subsidiaries in Mozambique.


Development of the Evidence Base: Sustainable Commodities Final Report Case Study - ALUMINIUM 5.1.27 The mining industry contributes to the local economy by paying taxes.

However, in the case of Mozambique, the Government has established significant fiscal incentives which have prevented the economy from the beneficial effects of an increased tax base. The company also transfers a significant proportion of its profits out of the country.

Jamaica:

5.1.28 St. Ann Mine employs 450 people. Falconbridge donates money to support education (30%), environment (18%), health (5%) and community (28%) organisations at the corporate and site levels. In 2004, a total of £1 million ($1.8 million) was allocated for these purposes.

Other countries:

5.1.29 In Germany, the aluminium industry employed 73,000 people directly in 2004. In the same year, Australian production of bauxite, alumina and aluminium employed 12,000 direct people and 4,300 contractors.

Resource efficiency

5.1.30 A residual product of bauxite refining is red mud, most often disposed of in land based residue storage areas. By putting back the red mud into the ground there is no pollution by other metals since there were originally present in the bauxite. The industry removes the aluminium oxide from the bauxite and put the unchanged residue back in the area where the mining took place.

5.1.31 Red mud is also used in water treatment, cement production and as a pigment in roofing tiles.

5.1.32 Another residue of aluminium smelting is Spent Pot Lining (SPL), which has properties that make it a valuable material for use in other processes. It could then be converted to use in industries such as cement, steel, mineral wool and construction. The conversion process is not common practice at present, but the industry is working on it.

Climate change

5.1.33 The International Aluminium Institute (IAI) takes a life cycle approach to measure the effect of the industry in climate change, which focuses on direct emissions, the energy required to produce aluminium products, as well as the energy savings that result from aluminium use, recycling and reuse.

5.1.34 Primary energy expenditure in the production of aluminium is approximately 14 kilowatt hour per kilogram of aluminium.


Development of the Evidence Base: Sustainable Commodities Final Report Case Study - ALUMINIUM 5.1.35 More than 60% of the electricity used to produce primary aluminium

worldwide comes from hydroelectric power, a renewable, non-polluting source of energy which does not generate GHG.

5.1.36 Over the past 30 years the energy used to produce primary aluminium has been reduced by 30%.

5.1.37 Falconbridge’s global operations (it produces copper, nickel, zinc and aluminium) evidenced a reduction in energy and greenhouse gas intensity performance in 2005. At Falconbridge’s primary aluminium smelter in Missouri the efficiency of the plant’s lighting was improved. Going forward the plant can anticipate savings in the order of £55,000 ($100,000) each year in energy and equipment costs.

5.1.38 Australia accounted for 1.5% of global emissions in 2002, compared with 1.4% in 1990.

Rehabilitation

5.1.39 Bauxite mines are generally located in areas where vegetation was not degraded before mining began. Large areas are disturbed, as bauxite mines are generally open cast, some 4-6 metres thick under a shallow covering of topsoil and vegetation. In most cases the topsoil is removed and stored, as these areas are usually rehabilitated to their original land-use.

5.1.40 The median area cleared for mining and infrastructure to date is 4 km², of which 17.4% has been for infrastructure including transport. Of the 17.4%, nearly 72% will eventually be rehabilitated (Rehabilitation Survey).

5.1.41 The International Aluminium Institute embarked in 1990 in a programme on bauxite mining and rehabilitation. A survey was carried out as part of that programme, which has been updated in 2004. The updated survey has data on mines that represent over 70% of total world production of bauxite. The survey indicates that the industry is improving its rehabilitation performance, and that it is working on minimising environmental impacts. The industry is also engaging local communities, utilising local expertise and investing in socio-economic development programmes.

5.1.42 In 2003, Alcoa of Australia received the Society for Ecological Restoration International (SERI) Model Project Award for its work in successfully returning the botanical richness of jarrah forest in restored bauxite mines in Western Australia.



6 Summary 6.1.1 Aluminium is a commodity in high demand due to it’s usefulness in many

industries and also to its abundance. However, aluminium itself is a difficult commodity to classify, it can be found in its ‘final state’ as non-alloyed aluminium, post electrolysis, but it is also imported in its ore (bauxite) and as its refined ore (alumina). Each of these forms has different elements to their supply chain, notably, the further refined the final imported product, the more technology and energy is needed to create the commodity.

6.1.2 Key trade partners of the UK reflect the level of processing in the life cycle of aluminium. For instance, the running of the Mozal smelter in Mozambique means that it is the UK’s top partner for aluminium non-alloyed. However, for aluminium ore China is our top partner, we can deduce that China is currently mining and exporting large quantities of bauxite. Finally, for aluminium alumina, Jamaica is the UK’s trading partner.

6.1.3 In so far as the environmental impacts of the production of aluminium is concerned, it is noted that electroloysis of aluminium is an energy intensive process and one could presume therefore that the CO2 emissions attributable to this would give aluminium a significant carbon footprint. However, much of the energy used for these process is hydro-electric, and so carbon zero, added to this the energy savings by using aluminium in car parts, we can see that insofar as climate change impacts are concerned, aluminium could offset the energy use in production with CO2 savings in use.

6.1.4 The complex nature of the supply chain create difficulties in imposing polices or initiatives. The mining generally occurs in tropical areas where there are natural formations of bauxite, processing to alumina can occur on-site, however, smelting into more refined forms of aluminium occur where there are sources of cheap energy.

6.1.5 The environmental effects of mining are very site specific. The main impacts arise from clearing the vegetation, exploration and mine development, especially in open cast mining. Other secondary impacts arise from the dumping of waste or the inadequate management of tailings. All of these can affect the local flora and fauna and future land uses such as agriculture and reforestation. In addition, mining can affect local water and air quality, and produce noise and dust, from the removal of overburden, heavy machinery and explosions.

6.1.6 Socio-economic effects could arise depending on how close communities are from the mines, and how much they get involved in the mining operations. Adverse effects could include changes in lifestyles, cultural traditions, and agricultural activities.



6.1.7 Environmental impacts of primary processing or refining depend on the composition and quality of the ore and the extraction processes. The major negative impacts arise from the disposal or storage of bauxite residue (red mud), which can contaminate industrial, domestic and agricultural water supplies, reduce the availability of arable land, produce dust, and aesthetic impacts.

6.1.8 Other effects include airborne pollutants from stockpiles, mills and calcinations operations. In addition, spills can occur at various stages in the refining process producing acidic drainage that can alter the flora and fauna, and human beings.

6.1.9 The major environmental problem is air pollution arising from fluoride emissions from smelting. The effects of this are quite significant in terms of workers health inside the plants. Flora and fauna are also affected.

6.1.10 Other impacts include water pollution, noise, heat and solid waste.

6.1.11 In conclusion, there are currently initiatives that are seeking to address the production of aluminium using a lifecycle approach. This leads to some gains in environmental efficiency. Additionally, the re-establishment of the mine sites to former condition should also be noted.

6.1.12 However, open cast mining can lead to other environmental and social impacts due to the increased access to the mining sites. Particularly the provision of transport infrastructure to the sites means that there are issues over fragmentation and severance for not only habitats but also possibly communities. This increase access to possibly remote areas may also out indigenous rights in peril and create situations where conflict can occur.


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