Eramet Norway: 2019 Sustainability report

Eramet Norway 2019

Highlights 2019

NOK6.5

Turnover

(billions)

522

+3.9%

FTE

Operating profit ratio

ref inedproducts60% 530 000 tonnes

HSEEapprox.

30%

The importance of steel in a zero emission society

Steel and manganese alloys are critical elements in order to achieve the zero emission society and manage a massive emission reduction.

Page 22

NewERA energy recovery

The pilot facility has been ordered.

Page 44

Study of dust volume and air quality in Porsgrunn

CapEx spending

(since 2000)

approx. 2 twh Electric power consumptionSales volume

approx. 724 ktons

CO2 emissions

Novel research project in collaboration with Yara and NORCE.

Page 52

Expanding the use of Silica Green Stone

Moving forward with circular economy.

Page 57

TABLE OF CONTENTS

• 4 About Eramet Norway

• 6 Preface: The goals are set, the direction is clear, we're on our way!

• 8 About our plants

• 12 Our R&D department

• 14 Safety

• 16 Training

• 18 Social responsibility

• 20 About manganese

• 22 The importance of steel

• 24 Our production process

• 26 Global markets

• 28 Sustainability as a product

• 30 UN sustainable sustainable development goals

• 32 Climate and environment - our direction

• 34 Theme: Climate

• 40 Theme: Energy

• 48 Theme: Environment

• 54 Theme: Circular economy

• 62 HSEE policy

• 64 HSE data

• 66 Environmental data

• 70 Finance

2

ERAMET NORWAY

VISION

Eramet Norway

The world's leading producer of refined manganese alloys through empowerment, innovation and job satisfaction

GOALS

In our sector, we aim to be:

About

- We work in a learning environment -

Eramet Norway is a world-leading producer of refined manganese alloys for the global steel market, with its three smelters in Porsgrunn, Sauda and Kvinesdal, in addition to its research and development department (R&D) in Trondheim.

The plants in Porsgrunn and Sauda have been in operation for more than 100 years, while the smelter in Kvinesdal was established in 1974, and we are proud to be a part of the time-honoured industrial tradition in Norway.

Eramet Norway's main office is loca-ted in Porsgrunn, and the company has more than 520 employees across the three locations. In order to ope-rate smelters in Norway, a significant distance away from our main markets in Europe and North America, Eramet Norway has established comprehen-sive networks, solid agreements and efficient logistics. As we move forward, we firmly believe that Eramet Norway delivers products that the world needs in its journey towards the future as a zero emission society and we do this in a resource efficient manner.

Eramet Norway is a part of the French corporation ERAMET, which operates in 20 countries and employs 13,000 people worldwide. ERAMET is a major international company within the areas of mining and metallurgical operations, and specialises in manganese, nickel, mineral sand and special alloys. Eramet Norway, which is a part of the mining and metals division, had a total revenue of NOK 6.5 billion, and the group's total revenue was NOK 36.2 billion in 2019.

by

Bjørn Kolbjørnsen CEO, Eramet Norway

Eramet Norway is proud to be one of the world's most efficient producers of manganese alloys in terms of both economic competitiveness and climate and environmental standing, a position we have acquired through years of sys-tematic knowledge building, targeted investments and continuous organisati-onal development. This work will never be completed, and we will continue to set, and work towards, new ambitious improvement goals within the fields of technology and working methods.

Focusing on health and safety

Our highest priority is the health and safety of all who work for us. Our goal is that everybody will leave the workplace in as good health as they arrived and be in good spirits after working in a positive working environment with friendly col-leagues. A positive working environment is an absolute requirement, but it is not the only one. Our operations should not lead to any unnecessary adverse effects on our surroundings or the climate. Of these requirements, it is the climate challenge that has received too little attention during the last decades, but this is now changing.

Reducing our climate footprint

Eramet Norway is today one of the producers in our sector with the smallest climate footprint per tonne of mangane-se alloy produced because of the natural advantage we have through the access to hydroelectric power. It is expected that the energy demand will increase

The goals are set, the direction is clear, we're on our way!

worldwide and as a result, it is cruci-al that our industry, and society as a whole, are ensured access to renewable energy. However, clean energy alone is not enough. Eramet Norway's goal is to reduce emissions per tonne produced by at least 43 percent before 2030, and by at least 80 percent before 2050.

The forest

In order to succeed with these massive emission reductions, we will be taking advantage of another natural resource: the forests. Eramet Norway is working hard to replace fossil fuel coke with biomass as the carbon source in our smelter ovens. This is ground-breaking work and we are dependent on a num-ber of collaboration partners to succe-ed: forestry owners and others who refine these resources, so that we can become a part of a circular economy value chain, research institutions and knowledge centres both in Norway and abroad. In 2019, we developed a plan for a pilot study using bio-carbon at one of our furnaces in Porsgrunn. We will send an application to Enova for financial support in order to complete this pro-ject in 2020, something that we believe will trigger a positive investment decisi-on from our French owners.

Research and development

We are also working with both R&D and investment projects to improve our process efficiency with the aim to redu-ce our consumption of electric energy and of carbon as a reduction agent in our process, and as a result, set

the stage for lower climate- and en-vironment related emissions. The first step towards the construction of a full-scale energy recovery facility at the Sauda plant was taken in the autumn of 2019 when we placed the order for a pilot facility worth NOK 50 million. The pilot facility will be installed in the autumn of 2020.

In addition, we are looking into how we can increase the utilisation of our furnace gas, which is a mixture of CO and CO2, and which ends up as CO2 emissions. Here we have two options: We can come up with technological solutions where the furnace gas is used as a resource in other product chains or ensure that we can capture and store the CO2 to avoid that it is released into the atmosphere.

In 2019, we decided, as part of the Ey-deklyngen (Eyde cluster) CCS initiative, funded by Gassnova, to prepare for the construction of a test facility for carbon capture at our plant in Sauda. This work must be viewed in conjunction with the Northern Lights project, which goal is to develop a complete European bu-siness model for the capture, transport and storage of CO2.

The projects mentioned here, in additi-on to approximately 50 other projects, make up our roadmap for climate, energy, environment, and circular economy, and these projects are the basis for how we are going to achieve our ambitious, yet necessary, goals toreduce out climate and environmental footprint even further.

Knowledge and cooperation

Common goals, knowledge sharing and the development of new circular economy value chains will accelerate the creation of smarter production, greater resource utilisation and more sustainable solutions. We believe that the green paradigm shift represents a significant growth potential for our Norwegian land-based process industry. The world-leading climate and environment position we have in Norway give us an advantage, and the good collaboration we enjoy between national authorities, the industry sector and our employees will continue to be a requirement for success.

At Eramet Norway, we look towards the future with ambitions of further growth and increased value creation, which will benefit our customers, owners and employees, as well as respond to the demands for a greener future.

We combine our culture of impro-vement and innovation knowledge and every day learning with our active involvement in external networks. A sustainable industry plays a central role in the zero emission society of the futu-re, and Eramet Norway will continue to be in the forefront to lead the way and will also in the years to come, remain among the world's most efficient producers of manganese alloys.

ABOUT OUR PLANTS

8

Eramet Norway is founded on long-standing industrial traditions. The three Norwegian processing plants are located in Rogaland, Agder and Telemark.

ERAMET NORWAY

Eramet Norway Porsgrunn

Established in 1913, the plant, with its central location at Herøya, is part of one of Norway's leading industrial clusters. This provides excellent prospects for further developments of processes and ways of working, for example, connected to circular economy.

Eramet Norway Porsgrunn has a flexible production facility that can produce various types of manganese alloys. With its two furnaces and refining plant, Eramet Norway Porsgrunn has an annual production capacity of 70,000 tonnes of silicomanganese and 105,000 tonnes of refined ferromanganese.