Getting the most out of your mine: Special steels as the smart choice for sustainability - Toni Hemminki, Rautaruukki Corporation

Getting the most out of your mine: Special steels as the smart choice for

sustainability 16 September 2013

Toni Hemminki, Chief Strategy Officer, Ruukki

16 Sept 2013

Toni Hemminki

Global trends create need for

energy efficiency

16 Sept 2013 Toni Hemminki

Population growth and prosperity

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

1990 2009 2015 2020 2025 2030 2035

OECD Non-OECD

Sourc

e: IE

A w

orld

energ

y o

utlo

ok 2

011.

* M

etr

ic ton o

f oil

equiv

ale

nt

World primary energy demand

Billion

Tightening regulation is forcing industry to change

16 Sept 2013 Toni Hemminki

• EU’s 20/20/20 climate and energy

goals by 2020

− Emissions trading

− Proposed energy efficiency directive

− Feed-in tariffs, etc. systems to create

more renewable energy production

• EU Energy Efficiency Directive

− Member countries to reduce energy

consumption annually by 1.5%

• More energy regulations for

transportation

− EU Commission white paper (2011)

states a 60% reduction target for CO2

by 2050

− Improved vehicle efficiency through

new engines, materials and design.

Source: EU 2013, IEA

Energy price is reacting to upward

trend in consumption, limited

resources and regulation

It’s the smart choice with special

steel

Energy efficiency with special steels

• Diesel is a significant energy source

for the mining industry

• Energy consumption of dump trucks

accounts for about 32% of the total

energy requirement in opencast

mines

• 100% recyclable high-strength and

durable steel-based solutions save

energy in end-user applications

• Longer lifetime and reduced

maintenance work provide efficiency

in material usage

Sources: IEA World Energy Outlook 2012

Sahoo et al., Energy Performance of Dump Trucks in Opencast Mine, Department of energy Science and Engineering, Indian Institute of

Technology Bombay, India, 2010.

Analyses of diesel use for mine haul and transport operations, Case study. Australian Government. 2009.

16 Sept 2013 Toni Hemminki

• Use phase savings due to smart re-designing

with Raex® and Optim® Special Steels

• Weight saving 17.7t (8.2%)

• Payload increase 5.7%

• Total vehicle fuel saving 1.7%

• Decrease in CO2 emissions 5.4%

New Design Old Design Annual

Savings %

Dump Truck

weight (t)

198 750 216 440 8.2

Payload (t) 329 464 311 774 5.7

Diesel

consumption

163 165.8 1.7

CO2

emissions

2478 2618 5.4

16 Sept 2013 Toni Hemminki

Old model

Assumptions: fuel consumption 165,8 l/h, driving time 6000 h/a, 50% empty kilometers, dump truck CO2 emission factor 2632 g CO2/l

Rigid Dump Truck savings with Raex® and Optim® Special Steels

New model

New thicker Raex® grades for the mining industry

• Ruukki recently launched

new thicker Raex steels

• For parts for heavy plant

and equipment designed

for excavation, loading,

transporting and crushing

ore in mines

• The service life time of

mining or recycling

equipment is longer

16 Sept 2013 Toni Hemminki

Special steels for the mining industry: Sweden, Finland, Russia

Sweden:

Kiruna Wagon Optim 700

Finland:

Eurosteel Ruukki Raex

Finland:

Pajakulma Optim and Raex special

steels

Finland:

Maakasi Raex 400, Raex 500

Russia:

Automarket mining Raex 400

16 Sept 2013 Toni Hemminki

Sustainability starts at home

Our sustainability work is recognised

16 Sept 2013 Toni Hemminki

16 Sept 2013 Toni Hemminki

Top level energy efficiency as a base for efficient products

We are among the best in the

world in iron making energy

efficiency. Ruukki uses nearly

the minimum amount of

carbon raw materials possible

with current technology.

0

20

40

60

80

100

120

140

160

180

Ruukki

EU

avera

ge

NA

FT

A

Russia

**

Chin

a**

India

**

Source: Stahl-Zentrum. *The indexed carbon efficiency in iron-making based on coal consumed 2009. ** 2007 data.

Blast furnace carbon dioxide efficiency*

Ruukki in brief

Ruukki’s business areas

*) 2012

Ruukki Building Products

Net sales ~ 478 m€*

Ruukki Metals

Net sales 1 787 m€*

Ruukki Building Systems

Net sales~262 m€*

16 Sept 2013 Toni Hemminki

Global presence in the special steels business

Sales office

Certified Partner

Production

16 Sept 2013 Toni Hemminki

Our development efforts never stop

• We invested €26m in R&D in 2012

• Close cooperation with an extensive network of industry experts

• Raex and Optim special steels produced by direct quenching technology

• Finnish Engineering Award 2012

16 Sept 2013 Toni Hemminki

Q&A

16 Sept 2013 Toni Hemminki