Sustainability Report 2009
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Sustainability Report 2009
Members
Australian Aluminium Council LtdWhile all reasonable care has been taken to ensure the accuracy of the material contained herein, the AAC shall not be held to be liable or responsible for any loss or damage incurred by any person through the use of this material.
Aluminium Technical Advice Service - Telephone 1800 642 230
The Australian Aluminium Council is the peak industry association representing the Australian bauxite, alumina and aluminium industries, collectively known as the aluminium industry. The Council’s members are the companies operating in each of the following sectors:
bauxite mining
alumina refining
aluminium metal production
semi-fabricated aluminium production and distribution
The Council aims to:
increase understanding of the aluminium industry in Australia and internationally
encourage the growth of the aluminium industry in Australia and the use of aluminium in Australia and overseas
act as a focal point for the industry on key national issues such as climate change, trade, health and the environment
inform and assist all those with an interest or involvement with the industry
The Council, through its technical group, develops and maintains material specifications, standards and other technical data for those users both within and outside the industry.
This report provides information on the activities of our industry and the subsequent benefits that flow to local communities and the Australian economy. We report on the performance of our industry in key areas including land use and rehabilitation, water and energy use, as well as greenhouse gas emissions.
The Australian Aluminium Council recognises the ongoing interest of governments and communities in knowing how aluminium production affects their environment and their society.
As our industry seeks to create value for its shareholders, we recognise the legitimate interests of other stakeholders: employees, local and regional communities, customers, suppliers and society at the national level.
Summary
1
The Australian aluminium industry, like many industries in Australia and around the world, felt the ongoing effects of the Global Financial Crisis (GFC) during 2009. It is a tribute to the highly efficient nature of the businesses involved in this important industry that only relatively minor steps had to be taken to minimise the impact – far less than in other aluminium producing countries. While 2009 saw the price of primary aluminium metal reach unsustainable lows not seen since late 2001, companies involved in bauxite, alumina and aluminium production were able to continue operating with relatively minor cuts to production.
The price of aluminium recovered gradually during 2009 to around US$2,200, providing some relief across the industry. Below is a summary of the Australian aluminium industry’s performance in 2009.
In 2009, the Australian industry produced:
69.5 million tonnes (Mt) of bauxite
20.2 Mt of alumina – with 3.9 Mt used domestically for the production of aluminium and 16.3 Mt (81%) exported
1.95 Mt of primary aluminium – with an estimated 0.27 Mt being transformed into downstream products (beyond the smelter gate) and 1.67 Mt (86%) being exported
Alumina production created 14.4 Mt of greenhouse emissions (CO2-e), mainly from direct consumption
of energy for heat, including 1.3 Mt CO2-e from purchased electricity (indirect emissions).
Emissions intensity for alumina production was 0.71 tonnes CO2-e per tonne of alumina, 2.3 per cent lower than 2008 (0.73 tonnes CO2-e per tonne of alumina) and 25.5 per cent lower than in 1990.
Aluminium production, down 1.6 per cent over 2009, contributed 3.9 per cent less greenhouse gas emissions (CO2-e) than in 2008, comprising:
0.26 Mt CO2-e of direct perfluorocarbon (PFC) emissions
3.12 Mt CO2-e of direct emissions from the carbon process
0.27 Mt CO2-e of other site-level emissions
26.7 Mt CO2-e of indirect emissions from electricity consumption
Direct emissions intensity for aluminium was at 1.87 tonnes CO2-e per tonne of aluminium produced – down from 1.94 tonnes CO2-e in 2008 and 5.05 tonnes CO2-e in 1990 – an improvement over the 1990 level of 63 per cent.
Aluminium indirect emissions intensity from electricity consumption was down 2.2 per cent from 2008 to 13.69 tonnes CO2-e per tonne of aluminium production – down from 16.14 in 1990 – an improvement of 15 per cent. This reflects both energy efficiency and changes in electrical emission factors.
2
Production in Australia
Australia is the world’s leading producer of bauxite. In 2009, Australian bauxite production was 69.5 million tonnes – slightly down from the 70.8 million tonnes recorded for 2008. Other significant bauxite producers include China (37 Mt), Brazil (28 Mt), India (22 Mt) and Guinea (17 Mt). Total world production of bauxite was reported by the US Geological Society at 201 Mt.
Australian alumina production in 2009 was 20.2 million tonnes, the majority of which was metallurgical or smelter-grade alumina, plus around 0.3 million tonnes of chemical grade alumina. Australia is the second largest producer of alumina in the world with 26 per cent of global production. China remains the world’s largest alumina producer on 23.8 Mt – 31 per cent of the world’s production.
Australian primary aluminium metal production was lower in 2009 at 1.95 million tonnes (down 0.03 Mt from 2008) – due to the difficult economic conditions stemming from the GFC. Despite the slight drop in production Australia moved up one position to become the fourth largest producer of primary aluminium in the world, having suffered smaller production cuts than other aluminium producing countries.
China remains the world’s largest producer of primary aluminium with 12.9 Mt in 2009, approximately one-third of global production. Primary aluminium capacity in China in 2009 was around 19 Mt (up from 15 Mt in 2008).
Other major primary metal producers include Russia (3.3 Mt), Canada (3.0 Mt), United States (1.7 Mt), India (1.6 Mt) and Brazil (1.5 Mt). Global primary aluminium production stood at 36.9 Mt in 2009 from an overall capacity of 49.9 Mt.
"Australia is the world’s leading producer of bauxite. In 2009, Australian bauxite production was 69.5 million tonnes"
30
35
40
45
50
55
60
65
70
75
BAUXITE: production (Mt)
10
12
14
16
18
20
22
19901991
19921993
19941995
19961997
19981999
20002001
20022003
20042005
20062007
20082009
ALUMINA: production (Mt)
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2.0
2.1
ALUMINIUM: production (Mt)
3
Water
Extrusion and Rolled ProductsDownstream aluminium sectors in Australia – extrusions and rolled products – were also affected by the GFC and the resultant slowdown in transport, packaging, as well as residential and commercial construction markets. These factors, when combined with already difficult market conditions due to competition from international competitors, made it a difficult year for local producers.
The Australian Aluminium Council estimates aluminium extrusion production in Australia was around 115 kt in 2009. Companies operating extrusion plants in Australia in 2009 included Capral,
Ullrich Aluminium, GJames Glass & Aluminium, Almax Aluminium Pty Ltd, Extrusions Australia and Aluminium ShapeMakers.
Companies involved in the Australian aluminium extrusion sector have reacted to the difficult market conditions with a range of initiatives designed to limit the impacts of the slow and competitive market conditions with various cost saving measures. These initiatives will allow Australian downstream producers to take advantage of the expected upturn in the residential and commercial building sectors in 2010.
In aggregate, Australia’s alumina refineries used 55,500 megalitres of water in 2009, compared with 48,400 ML in 2008 and 48,100 ML in 2007. This usage is equivalent to 2.7 kilolitres per tonne of alumina production in 2009, which is higher than the 2.5 kilolitres per tonne recorded in 2008.
Water is a key input for the refining of bauxite into alumina – if water availability declines this can affect production. The amount of water an alumina refinery uses is subject to local environmental conditions, process conditions and can also be dependent on the type of technology being utilised – therefore some variability is expected from year to year.
Of the 55,500 ML used in 2009, 76 per cent was fresh water – a similar level to 2008 – and 24 per cent was grey/other water. It is expected that the ratio of fresh to grey water will fluctuate from year to year depending on regional conditions.
0
10,000
20,000
30,000
40,000
50,000
60,000
20022003
20042005
20062007
20082009
Fresh Water Grey Water
ALUMINA: total water usage (megalitres)
ALUMINA: average water usage (kilolitres per tonne)
2.00
2.50
3.00
3.50
4
Aluminium Trade Data
Exports
Alumina and aluminium exports were estimated at A$8.3 billion in 2009, down from A$11.3 billion in 2008 and A$11.2 billion in 2007. Bauxite exports declined around 40 per cent over 2008 values to A$135 million. This sharp drop in export earnings is to be expected given the difficult global economic conditions with resultant depressed commodity prices and relatively high Australian dollar.
Despite the decline in export value, Alumina maintained its position as Australia’s largest simply transformed manufacture (STM) export by value in 2009, closely followed by Aluminium.
Total exports of primary (unwrought) aluminium were 1.67 Mt in 2009 – around the same level as in 2008, while total exports of alumina were 16.2 Mt – 5 per cent higher than in 2008. According to the Australian Bureau of Agricultural and Resource
Economics (ABARE), both alumina and aluminium exports declined by A$1.6 billion (35% and 30% respectively). Australian mineral export earnings declined by 14 per cent overall in 2009.
Exports of aluminium extrusions, sheet and plate also declined in 2009, with extrusions falling by 25 per cent to 573 tonnes (A$4.8m), and sheet and plate falling 15 per cent to 88,000 tonnes (A$370m).
Aluminium scrap metal exports were reported at around 160,000 tonnes in 2009 with an approximate value of A$250 million – compared with 172,000 tonnes and A$340 million reported in 2008.
Exports of all semi-fabricated aluminium products declined in volume terms by 12 per cent in 2009 to around 100,000 tonnes – worth around A$405 million (down 23 per cent over the 2008 value).
ALUMINA: export value (A$ millions)
ALUMINA: export volume (Mt)
19901991
19921993
19941995
19961997
19981999
20002001
20022003
20042005
20062007
20082009
8
9
10
11
12
13
14
15
16
17
1000
2000
3000
4000
5000
6000
7000
0 1000
1500
2000
2500
3000
3500
4000
4500
5000
5500
6000
ALUMINIUM: export value (A$ millions)
ALUMINIUM: export volume (Mt)
19901991
19921993
19941995
19961997
19981999
20002001
20022003
20042005
20062007
20082009
0.9
1.0
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
0.8
5
Safety
The Australian aluminium industry remains committed to reducing workplace injuries to zero. All of our people are entitled to have a safe and healthy workplace. All Council members have strong safety cultures and continue to strive for the elimination of workplace injuries through the implementation of best practices, systems and metrics.
The AAC collects safety data from all Australian facilities involved in the production of bauxite, alumina and aluminium.
The provisional lost time injury frequency rate (LTIFR) for 2009 was 2.51 (per million hours worked), up from 2.34 in 2008 and 1.52 in 2007.
The total recordable injury frequency rate (TRIFR) for 2009 was 7.1 (per million hours worked) compared with the rate of 8.8 in 2008.
ImportsAluminium imports into Australia – typically dominated by downstream products such as extrusions, sheet & plate and scrap – declined in line with global economic conditions. Total imports of semi-fabricated aluminium products totalled 164,000 tonnes in 2009, down 13 per cent over the 2008 value.
Aluminium extrusion imports declined 11 per cent to 82,000 tonnes in 2009, while sheet & plate imports dropped 18 per cent to 59,000 tonnes. Imports of aluminium foil remained relatively stable, with volumes dropping less than 1 per cent over 2008 values.
Imports of aluminium scrap were significantly impacted by the depressed market conditions, recording a drop of around 50 per cent to 6,000 tonnes in 2009.
"The Australian aluminium industry remains committed to reducing workplace injuries to zero."
0
5
10
15
20
25
30
35
40
TOTAL RECORDABLE INJURY FREQUENCY
20002001
20022003
20042005
20062007
20082009
0
1
2
3
4
5
6
TOTAL RECORDABLE INJURY FREQUENCY
6
Case Study
Alcoa Volunteers Make a Difference During Month of Service 2009
Alcoa employees across Australia kept busy in October, participating in more than 100 volunteering activities with community and not-for-profit organisations. Every October is Alcoa's annual 'Worldwide Month of Service' – a time when the company encourages employee volunteerism and celebrates its volunteering heroes. This year the packed event schedule included busy-bees at local schools, odd jobs at dog rescue homes, gardening around aged care facilities, landscaping the grounds of St John Ambulance locations, and various tree planting activities with Alcoa's core climate change partner Greening Australia. Alcoa's Managing Director Alan Cransberg said: "This year, we had more than 2,000 Alcoans participate in Month of Service. We had a goal to increase participation by over 6 per cent in Australia, but we actually doubled that and achieved a 12 per cent increase compared with last year." "This reflects the tremendous effort of Alcoans across all our locations, and is a wonderful demonstration of community spirit and living Alcoa's values outside the workplace.
"Over the course of the month, our people planted more than 4,000 trees and helped carry out various odd jobs for 15 schools in the communities where we operate." Month of Service is an Alcoa Foundation global initiative, held in over 200 Alcoa communities, in 31 countries. The Alcoa Foundation is a US corporate foundation, with a mission to actively invest in the quality of life in Alcoa communities worldwide - it's invested US$490 million since 1952. While Month of Service brings to the fore volunteering efforts in October, Alcoa's people are involved in their communities all year round and are supported by the Foundation, which matches employee volunteer hours with grants to not-for-profit organisations. On average each year, Alcoa employees donate around 90,000 hours, which is equivalent to over 10 years. "Especially as we travel through these challenging economic times, volunteering and supporting our communities in the way they want to be supported is more important than ever," Mr. Cransberg said.
7
Fluoride Emissions
Fluoride emissions (as gases and particulates) remain of high environmental concern for the aluminium smelting sector. For many decades fluoride emissions were considered to be the single most significant pollutant from aluminium smelters.
Depending on the local conditions, fluorides could have a serious environmental impact on the local flora and fauna. Fluorides accumulate in vegetation and can cause damage to coniferous trees. They also accumulate in the teeth and bones of ruminants eating fluoride-contaminated forage. Facilities utilise modern control systems to remove and recycle the fluorides, keeping levels to well within regulated limits.
Optimum fume collection from the electrolytic cells, coupled with specific workplace-related training of employees has led to further improvement. The IAI global fluoride emissions survey data from reporting companies, including (since 2006) all Russian facilities, show that global fluoride emissions per tonne of aluminium produced have been reduced to 1.5 kg per tonne of aluminium produced — a 36 per cent reduction over the period 1990–2008, down from 2.46 kg per tonne of aluminium produced in 1990.
Fluoride emissions from Australia’s six aluminium smelters were reported as 1,378 tonnes in 2008–09
under the National Pollutant Inventory, which represents a 0.4 per cent decrease over 2007–08 levels, and a 3 per cent reduction over 2000–01. This equates to fluoride emission per tonne of 0.70 kg – which is half the global average – an outstanding achievement by our Australian smelters.
1200
1300
1400
1500
1600
2000 - 01
2001 - 02
2002 - 03
2003 - 04
2004 - 05
2005 - 06
2006 - 07
2007 - 08
2008 - 09
0.6
0.7
0.8
0.9
ALUMINIUM: fluoride emissions per tonne (kg)
ALUMINIUM: total fluoride emissions (tonnes)
8
Energy
Primary AluminiumPrimary aluminium smelting is energy intensive, with energy costs at around 25-30 per cent of smelter operating costs. This rises to 30-35% when the energy used to produce the alumina is taken into account. Therefore smelter operators regard energy consumption as a key indicator in their regular performance monitoring.
The aluminium industry is dominated by continuous base load electricity demand – in 2009 the Australian aluminium smelting industry consumed 29,250 GWh of electricity (29,700 GWh in 2008 and 29,400 GWh in 2007).
The AAC estimates that the aluminium smelting sector’s share of Australia’s electricity consumption was 12.73 per cent in2009, down from 13.04 in 2008, 13.00 per cent in 2007 and 13.06 per cent in 2006. The 2009 result reflects production cuts coupled with continued energy efficiency measures put in place by Australian smelters, as well as an increase in the overall demand for Australian electricity.
Australian aluminium smelters are amongst the most energy efficient in the world due to sound management and continual investment to maintain their international competitiveness. However, new state-of-the-art smelters are currently being designed and built in competing countries, most notably China and the Middle East, with lower energy intensity that can typically only be achieved in greenfields smelters. Australian smelters strive to continually improve both their systems and processes in order to maintain their levels of efficiency and to remain competitive.
However, continual improvement at the scales required for aluminium smelters requires consistent and significant levels of investment in terms of both resources and capital. Without such investment Australian smelters will struggle to maintain their hard won competitive advantages. The current policy environment in Australia is such that future large scale investment in Aluminium smelting is at risk – fuelled by uncertainty around the
establishment of a carbon price as well as recent amendments to the Renewable Energy Target legislation, which impose significant costs on our industry.
Our competitors in countries such as China, Russia, the Middle East and Malaysia are not subject to such policies and therefore are able to attract investment that may, under different circumstances, have been destined for smelters in Australia.
27
28
29
30
20022003
20042005
20062007
20082009
ALUMINIUM: total electricity consumption (’000GWh)
9.0
9.5
10.0
10.5
11.0
11.5
12.0
185
190
195
200
205
210
20022003
20042005
20062007
20082009
ALUMINA: energy consumption per tonne (GJ)
ALUMINA: total energy consumption (’000TJ)
9
Land use and Rehabilitation
Rehabilitation of our bauxite mining areas is a central element of the overall mine development and forms part of our license to operate. All bauxite mining areas in Australia are subject to post-mining restoration programs that require comprehensive rehabilitation of the mined areas.
Australia is home to around 23 per cent of the world’s known bauxite reserves in the form of lateritic (silicate) deposits. Lateritic bauxites are almost always found near the surface and therefore are mined using traditional surface mining techniques.
Bauxite is mined in three regions of Australia: the Cape York Peninsula in Queensland (Weipa), Arnhem Land in the Northern Territory (Gove) and in the Darling Ranges in south-west Western Australia (Boddington – Mt Saddleback, Huntly and Willowdale).
The area rehabilitated each year varies due to seasonal conditions and operational factors - as
mining spreads out from the initial area of activity, increased haul roads and haul distances as well as pit size can require additional areas to remain open before rehabilitation is commenced.
The area mined in 2009 was reported as 2,003 hectares (2008: 3,265, 2007: 2,451) and the area rehabilitated was 1,497 hectares (2008: 2,053, 2007: 1,146).
Alumina
Refining bauxite into alumina also requires significant energy consumption – over 23 per cent of total costs – mostly due to the large-scale nature of the operation. Unlike aluminium, which is dependent on electricity for the electrolytic process, alumina refining requires mainly energy for heat and steam. Therefore gas, petroleum products and coal are the main fuel sources.
Australia’s alumina refinery operators continue to improve the energy efficiency of their facilities. The energy intensity (energy per tonne of product) of Australian alumina refineries has improved 15 per cent since 2002, largely through cost effective
improvements throughout the plants (enabled by ongoing investment), including the continued focus on cogeneration where feasible.
Gas-fired cogeneration can achieve levels of energy efficiency above 80 per cent and therefore provides significant energy savings for an alumina refinery, as well as providing low emissions power to the electricity grid in many situations.
Total energy consumption at Australia’s seven alumina refineries has increased 3.5 per cent since 2002, while production levels have increased by 22 per cent.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
20002001
20022003
20042005
20062007
20082009
Area Mined (HA) Area Rehabilitated (HA)
REHABILITATION
10
Greenhouse Gas Emissions
The Australian aluminium industry has been committed to reducing greenhouse gas emissions for well over a decade now. As a founding member of the Greenhouse Challenge program in 1996, and through focussed application of technology and resourcefulness, the industry has proven its commitment to energy efficiency and improving greenhouse emissions performance.
Over the years the AAC has developed a powerful emissions database covering all alumina and aluminium production since 1990. This has provided
a platform for the industry to build on its experience in measuring and reporting greenhouse gas emissions, and in seeking abatement opportunities.
In this report we focus on the greenhouse performance of Australia’s seven alumina refineries and six aluminium smelters. As Australia considers its response to the challenge of climate change, the aluminium industry will continue to play its part. Our industry remains committed to further improving its greenhouse and energy performance in line with Australia’s greenhouse reduction goals.
Aluminium Smelting
The smelting of aluminium using the Hall Héroult process is very energy intensive – which is why over 80 per cent of smelting greenhouse gas emissions are what we call indirect (electricity-related) emissions. The remaining 20 per cent of emissions come from direct (on-site) emissions plus the emissions associated with the production of alumina.
The greenhouse gas intensity of Australian primary aluminium production improved to a record low of 15.6 tonnes of CO2-e per tonne of aluminium in 2009, 2.4 per cent lower than the 15.9t CO2-e tonne of aluminium recorded for 2008 and 26 per cent lower than that recorded for 1990.
In 2009 direct emissions of greenhouse gas equivalents (PFCs, carbon inputs, fuels) were 3.2 per cent lower than in 2008 on an intensity basis, and 63 per cent lower than in 1990. PFC emissions have been reduced by 31 per cent over 2008, and 96 per cent per tonne of aluminium since 1990.
The majority of the improvements in 2009, as in previous years, reflect reductions in perfluorocarbon (PFC) emissions, which have been a particular focus of Australian smelters since the early 1990s due to the high global warming potential of PFCs. PFCs are emitted during short unstable conditions known as ‘anode effects’ caused by an imbalance in the production process.
0
-40
-30
-20
-10
10
20
30
40
50
60
70
19951996
19971998
19992000
20012002
20032004
20052006
20072008
2009
Total Emissions Emissions/Tonne Production
ALUMINIUM: change in emissions from smelting (1990 = 0)
0% 100%
2009
1990
Direct
ALUMINIUM: direct and indirect emissions
Alumina Input Indirect
0.0
1.0
2.0
3.0
4.0
5.0
20002001
20022003
20042005
20062007
20082009
1990 Level
ALUMINIUM: direct emissions per tonne
11
As can be seen from the Boyne smelter case study in this report, Australian smelters are continually striving to reduce PFC emissions through the implementation of operational best practice and improved technology wherever possible – with the ultimate goal being the elimination of PFC emissions from the process.
Total direct greenhouse gas emissions from Australian aluminium smelters were reported as 3.65 million tonnes CO2-e in 2009, down 4.8 per cent compared to 2008 and well down on the 1990 level of 6.26 Mt. Direct emissions per unit of production were 1.87 tonnes of CO2-e per tonne of production, a 3.2 per cent improvement over 2008 and 62.9 per cent improvement over 1990 levels.
Emissions from the purchase of electricity have fallen 3.8 per cent since 2008. These indirect emission levels are closely linked to production and are therefore sensitive to economic conditions. As such, an increase in indirect emissions is expected in line with forecast improvements in economic conditions.
Australia’s aluminium smelters are continually working to improve the energy efficiency of the process, and they
have been successful so far – since 1990 aluminium production increased by 57.2 per cent, while indirect emissions only rose by 33.3 per cent. On an intensity basis, indirect emissions were down 15.2 per cent on 1990 levels, reflecting energy efficiency dividends but clouded by changes in emission factors across the various supply locations.
Indirect emissions also arise from the consumption of alumina in the smelting process, with around two tonnes of alumina required to produce one tonne of aluminium. At current rates this is equivalent to around 1.4 tonnes CO2-e per tonne of aluminium produced. These emissions are included in our reporting of alumina emissions and not added to the aluminium results to avoid double counting.
The Australian smelter performance for greenhouse emissions from the production process is world class. Energy efficiency is also better than world average, although this advantage may be eroded without further investment in production capacity in future years.
12
Alumina Refining
Total GHG emissions from Australia’s seven alumina refineries have remained relatively stable since 2007. In 2009 14.4 million tonnes CO2-e were emitted, compared with 14.4 Mt of CO2-e in 2008 and 14.3 Mt in 2007. Absolute emissions from Australia’s alumina refineries have increased by only 34 per cent since 1990, despite an 80 per cent increase in production over this period.
Aggregated per unit emissions were 0.71 tonnes of CO2-e per tonne of alumina in 2009, 2.3 per cent lower than in 2008 and 25 per cent lower than the 1990 value of 0.96 tonnes of CO2-e per tonne of alumina. To put this into perspective — if the emission intensity in 2009 had remained unchanged from the emission intensity in 1990, total emissions would have been around 19.3 Mt CO2-e compared to the reported 14.4 Mt CO2-e. These gains have largely been achieved through the addition of more efficient capacity – both through brownfield (Gove, Worsley, Pinjarra expansions) and greenfield (Yarwun) developments, as well as efficiency
improvements resulting in capacity gains at the remaining refineries (Kwinana, Wagerup, QAL).
Australian alumina refineries are amongst the world’s leading performers in terms of energy efficiency —also benefiting from higher average grade bauxite.
International Aluminium Industry and Perfluorocarbons
In its 2009 sustainability update the International Aluminium Institute (IAI) reported the successful achievement of the global goal for an 80 per cent reduction in PFC emissions per tonne of primary aluminium produced by 2006 (from a 1990 baseline). The aluminium industry has since committed to further reducing global PFC emission intensity by at least 50 per cent by 2020 from a 2006 baseline.
IAI results for 2008 indicate that the global aluminium industry has reduced its PFC emissions intensity from 4.93 in 1990 to 0.70 tonnes CO2-e per tonne of aluminium in 2008 – a reduction of 86 per cent.
The 2009 Australian smelter PFC results were 0.13 tonnes CO2-e per tonne of aluminium, a 31 per cent reduction over the 2008 result, a 96 per cent reduction since 1990 and only one-fifth of the global aluminium industry average. Improvements to date have been achieved through sound potroom management and investment in technology change.
ALUMINA: change in emissions from refining (1990 = 0)
-40
-20
0
20
40
60
80
100
19951996
19971998
19992000
20012002
20032004
20052006
20072008
2009
Total Emissions Total Emissions/Tonne Production
0
0.5
1
1.5
2
2.5
3
19901995
20002001
20022003
20042005
20062007
20082009
ALUMINIUM: PFC emissions (tonnes CO₂-e per tonne of aluminium)
0
2
4
6
8
10
12
14
16
Africa &South Asia
NorthAmerica
SouthAmerica
East Asia& Oceania
Europe WeightedAvg
Oceania(2008)
Oceania(2009)
ALUMINA: energy used per metric tonne produced (gigajoules)
13
Employment
Employment in the bauxite, alumina and aluminium sectors of the industry is centered on regional areas reflecting the location of the main production facilities.
In 2009 the bauxite, alumina and aluminium operations employed around 17,100 employees, of which 12,700 were directly employed (13,900 in 2008) and around 4,400 were contractors (2,900 in 2008). The quality of the 2009 numbers are considered to be an improvement over those reported in 2008, with better delineation of direct and indirect employees.
The regional benefits associated with all aspects of the aluminium industry are of significant value. Our operations are, in many cases, the major source of employment in regional areas – driving demand for contractor services and other local facilities at both industrial and retail levels.
It is a testament to the robust nature of the Australian aluminium industry that employment levels have remained relatively steady during recent
difficult economic times – despite the fact that aluminium producers globally were curtailing their activities. Australia’s well managed and efficient alumina refineries and aluminium smelters have benefited from continual investment over the years.
Our industry will continue to play a role in regional Australia for many years to come, provided Australia remains an attractive destination for investment in both existing and new facilities. Government policy on energy and climate change in particular will be crucial.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
20032004
20052006
20072008
2009
Total Direct Employment Contractors
EMPLOYMENT: bauxite, alumina and aluminium
14
SPL – Spent Pot Lining
In 2009, Australian smelters generated 29,359 tonnes of SPL material (2008: 38,121; 2007: 41,755 tonnes). This is equivalent to 15 kg per tonne of metal production; however, this number will show significant fluctuations over the years depending on the timing of potline refurbishment programs.
What is spent potlining (or spent cell lining)? When a reduction cell or ‘pot’ has reached the end of its useful life, normally after about 6–7 years, it is rebuilt with a new carbon lining (the cathode). At this time it is necessary to dispose of the old (spent) lining, consisting of old refractory bricks and carbon plus a number of compounds including fluoride, absorbed from the molten cryolite material in the pot, and a very low level of cyanide, formed over many years of pot operation. As a result of these two contaminants, SPL is generally considered to be a hazardous waste.
Disposal techniques vary around the globe according to local conditions, environment laws and operating licenses.
On a world-wide basis, the aluminium industry is continuing to research methods and processes to re-use or treat SPL material prior to disposal
or landfill — and a number of solutions are now available, with continuing work being undertaken to identify synergies with potential consumers for the increased utilisation of the various products available from the SPL by-product streams.
SPL material is often stored by a smelter in above ground facilities under secure, dry conditions to await recycling or final disposal — including extracting and recycling some of its useful components and using the material as a combustion source for power generation, or as raw materials in other industrial processes (e.g. cement, steel).
A number of Australian smelters have implemented strategies for the recycling and disposal of SPL material, more details of which can be found in our 2004 sustainability report.
In 2009 Australian smelters recycled 46,801 tonnes of SPL material — 70 per cent more than in 2008.
"On a world-wide basis, the aluminium industry is continuing to research methods and processes to re-use or treat SPL material prior to disposal or landfill"
15
Global Perspective
Asia Pacific Partnership on Clean Development and ClimateThe Asia-Pacific Partnership on Clean Development and Climate is a unique public-private effort to accelerate the development and deployment of clean energy technologies.
Governments involved in the APP - Australia, Canada, China, India, Japan, Korea, and the United States - have voluntarily agreed to work together and with private sector partners to meet goals for energy security, national air pollution reduction, and climate change in ways that promote sustainable economic growth and poverty reduction.
The Partnership currently consists of eight public-private sector task forces covering: Aluminium, Buildings and Appliances, Cement, Cleaner Fossil Energy, Coal Mining, Power Generation and Transmission, Renewable Energy and Distributed
Generation, and Steel. More information on the APP in general can be found at:www.asiapacificpartnership.org.
The Australian aluminium industry supports the goals of the APP and has been closely involved since its inception in 2006. Through the Aluminium Task Force our industry actively participates in projects – in cooperation with our global industry partners – that actively work towards achieving the goals of the APP.
Of the eight projects currently running under the APP Aluminium Task Force, the AAC has a project managing role in two: Management of PFC Emissions and Fluoride Emissions Management. Detailed project rosters and achievements to date can be found on the partnership website.
PROJECT PARTICIPATING COUNTRIES
ATF-06-01: Aluminium Measurement and Benchmarking USA, China, Australia
ATF-06-02: Management of PFC Emissions USA, China, Australia
ATF-06-03: Management of Bauxite Residue (Red Mud) China, India, Australia
ATF-06-04: High Silica Bauxite Processing China, India, Australia
ATF-06-05: Fluoride Emissions Management USA, China, Australia
ATF-06-06: Aluminium Recycling USA, China, Australia, Japan, India
ATF-06-07: Linkages to Technology Providers Australia, USA, China, Canada
ATF-06-08: Development of Generic Computer Software for Automated Anode Effect Control
USA, China, Canada
16
Aluminium and Recycling
Aluminium is unlike any other material – it can be infinitely recycled without loss of properties. The high value of aluminium scrap is a key incentive for recycling – which is why nearly 75 per cent of aluminium ever produced is still in use today.
Recycling has become second nature to Australians as we all seek to reduce our environmental footprint. Recycling aluminium makes sense since it saves up to 95 per cent of the energy required for primary aluminium production, thus avoiding associated emissions including greenhouse gases.
Global aluminium recycling rates are high, with approximately 90 per cent for transport and construction applications and around 60 per cent for beverage cans. Looking at global aluminium flows, around one-third of all aluminium metal entering the market is from recycled material – accounting for around 19.1 million tonnes (IAI estimates). Of this 9.3 Mt were returned from customers after fabrication processes (traded new scrap) and 9.9 Mt were returned from the end-
use sector (e.g. aluminium content of used motor vehicles and beverage cans).
The Australian recycling industry did not escape the effects of the GFC, as demand dropped and prices fell, scrap receipts and exports also declined. In Australia, it is estimated that around 255,000 tonnes of scrap was received back from used products (down 15 per cent on 2008), including production scrap from fabrication and manufacturing activities.
ABS data indicates that aluminium scrap exports were 159,000 tonnes in 2009, with an approximate value of $250 million – down from A$338 million in 2008. The AAC estimates that around 97,000 tonnes of scrap was reprocessed in Australia (down 25 per cent), with a metal recovery of around 80 per cent.
In addition 31,000 tonnes of dross (a by-product of aluminium smelting) was also provided for reprocessing. Dross recovery rates vary due to the nature of the material, and are typically reported at around 40-50 per cent.
Global Aluminium Flow 2008
source: International Aluminium Institute (IAI)
Other Applications³
1.7
17
Case Study
PFCzer0 – Boyne Smelters PFC Reductions
A rigorous focus on reducing perfluorocarbon emissions from Boyne Smelters Limited (BSL) has shown impressive results.
Perfluorocarbons (PFCs) are greenhouse gas emissions produced during the aluminium smelting process. Smelting occurs in reduction cells where electrical currents run through the cells turning alumina powder into molten aluminium metal. Anode effects occur when there is not enough alumina and the current begins to break down other compounds in the cell, releasing PFC gases.
The amount of PFCs generated depends upon the frequency and duration of the anode effect.
Prompted by the success of a similar effort at Rio Tinto Alcan’s New Zealand Aluminium Smelter (NZAS), BSL employees launched a PFC emissions reduction campaign, PFCZer0, in January 2008.
Leveraging off NZAS’ experience, the campaign was also supported by the upgrade of the reduction lines’ computer control system and an increased focus on employee training and education.
BSL’s Reduction Line 3, built in 1997 utilising Pechiney technology, was converted to the Comalco Control System (CCS) over the course of a year between 2006 and 2007. The new system allowed real time monitoring of reduction cells enabling improved computer monitoring of cells resistance to prevent anode effects.
It was supported by improved information flows and employee training to ensure that operators were able to effectively respond to CCS warnings and manage the cells to prevent or reduce the duration of anode effects.
A series of fine tuning experiments resulting in changes to temperature control, bath level control and improvements in cell heat balance also contributed to the significant performance improvement.
The results have been dramatic.BSL’s Reduction Line achieved the lowest anode effect frequency rate for any reduction line of similar technology in the world consistently throughout 2009.
Employees achieved the PFCZer0 campaign target set for 2011 by 2009 with a 60 per cent reduction in PFC emissions from Reduction Line 3 since 2007.
This reduction is equivalent to removing 21,000 medium sized cars off the road.
Older plant and technology employed in BSL’s Reduction Lines 1 and 2 have prevented the same level of success achieved in Reduction Line 3 but major capital works projects underway in 2010 (including installation of an automatic alumina distribution system) are expected to deliver significant emission improvements in 2010 and beyond.
The success of the initiative has prompted BSL employees to set themselves a target to eliminate anode effects in routine operations by 2015, a concept that would have been unthinkable a few years ago when anode effects (and associated PFC emissions) were considered unavoidable consequences of the smelting process.
Future for the Australian Industry
18
Australia is a demonstrated leader in the production of bauxite, alumina and aluminium. Our competitive advantages of resource availability, abundant energy sources, skilled labour force, available land, and stable investment conditions provide further growth potential for both alumina refining and aluminium smelting — provided the policy environment does not reduce the attractiveness of investment in Australia.
Alumina
We have seen major investment in Australian alumina refining capacity over recent years, spurred on by favourable market conditions — conditions which have seen production levels increase to 20 million tonnes in 2009. Further increases in production are expected as Rio Tinto Alcan’s ‘Yarwun 2’ expansion comes online in 2012, adding around 2 million tonnes; and BHP Billiton’s Worsley ‘Efficiency and Growth Expansion Project’, which is expected to add a further 1 million tonnes of capacity.
Australian exports of alumina are expected to increase in line with the projected increase in production. ABARE forecasts that the volume of alumina exports will increase by 7 per cent to around 17.6 million tonnes in 2010-11. The value of
Australia’s alumina exports is forecast to increase by 20 per cent in 2010-11, with spot prices expected to increase from US$249 per tonne of alumina in 2009, to US$314 in 2010 and US$326 in 2011.
Australia’s alumina refining industry, through committed investment, remains internationally competitive and therefore able to contribute to the economic well being of the regions in which they operate, and the Australian economy as a whole.
Aluminium
Australian aluminium smelting production is expected to recover from the slight dip in 2009. ABARE forecasts Australian aluminium production to increase by 2 per cent in 2010-11 – mainly through efficiency improvements at existing smelters.
While investment projects in aluminium smelting capacity are continually under consideration, aluminium growth depends on long-term competitive energy. Around $50m per annum is required to maintain an aluminium smelter; and access to reliable, affordable, long-term energy supplies underpin such investment decisions.
Global aluminium consumption is forecast to increase in 2010, as the world’s major economies
19
continue their recovery from the lows resulting from the global financial crisis. While this is promising news for Australian alumina and aluminium producers, uncertainties remain in the form of high levels of aluminium stocks being held in warehouses around the world, as well as hints of uneasiness surrounding the recovery of some major economies.
Official stocks of aluminium listed with the London Metals Exchange (LME) were over 4 million tonnes in mid 2010 – three times the average over the five years to 2009. Such high stock levels have served to keep aluminium prices relatively low, with world prices expected to average US$1985 a tonne in the second half of 2010 (ABARE). This situation is not likely to change any time soon, with world production forecast to exceed consumption during 2010.
Australian aluminium producers are expected to benefit from an increase in world aluminium consumption during 2010, which is expected to increase 9 per cent to 38 million tonnes and by the same amount again in 2011 to around 42 million tonnes.
While China remains the main driving force behind growth in world aluminium consumption, a possible recovery (or otherwise) in the United States – the world’s second largest consumer – will
also influence demand for aluminium metal, as will uncertainties around the economic situation in Europe.
Locally, Australian government policies, both at the federal and state level, have the potential to significantly impact the competitiveness of Australian aluminium smelters. Some policies, such as the Renewable Energy Target, will soon start to impact on the cost base of Australian producers, reducing their international competitiveness. Therefore climate change policy in general must recognise Australia’s energy intensive industries and the role they play in regional Australia.
Summary
Australia’s world-class alumina and aluminium operations will continue to add value to Australia’s vast bauxite reserves and to underpin regional economies around Australia — provided that the international competitiveness of our industry is maintained, particularly in relation to the impact of government policy.
"Australia is a demonstrated leader in the production of bauxite, alumina and aluminium."
20
The Australian Industry
BAUXITE MINES MAJOR SHAREHOLDERS START DATE CAPACITY
Boddington, WA (Mt Saddleback) BHP Billiton 86% 1983 12 Mtpa
Gove, NT Rio Tinto Alcan 100% 1972 8.5 Mtpa
Huntly, WA Alcoa of Australia 100% ~1970 23 Mtpa
Willowdale, WA Alcoa of Australia 100% 1984 9 Mtpa
Weipa, QLD Rio Tinto Alcan 100% 1961 16.3 Mtpa
ALUMINA REFINERIES MAJOR SHAREHOLDERS START DATE CAPACITY
Gove, NT Rio Tinto Alcan 100% 1972 2.5 Mtpa
Kwinana, WA Alcoa of Australia 100% 1963 2 Mtpa
Pinjarra, WA Alcoa of Australia 100% 1972 4.2 Mtpa
Queensland Alumina, QLD Rio Tinto Alcan 80%, Rusal Australia 20% 1967 3.95 Mtpa
Wagerup, WA Alcoa of Australia 100% 1984 2.6 Mtpa
Worsley, WA BHP Billiton 86% 1984 3.1 Mtpa
Yarwun, QLD Rio Tinto Alcan 100% 2004 1.4 Mtpa
21
Synopsis
The Australian alumina and aluminium industries:
ALUMINA 2009VARIATION ON:
2008 1990
Australian alumina production (incl. chemical grade) 20.2 Mt +2% +80%
Share of world production 26% +3% -
Alumina exports – tonnage (1990 = 8.7 Mt) 16.2 Mt +5% +86%
Alumina exports – value (1990 = $2,940 million) $4,663 million -25% +59%
Total alumina GHG emissions (1990 = 10.7 Mt) 14.4 Mt -0.2% +34%
Per unit GHG emissions (1990 = 0.95) (per tonne of production) 0.71 t CO₂-e -2% -25%
ALUMINIUM 2009VARIATION ON:
2008 1990
Australian aluminium production 1.95 Mt -1.6% +57%
Share of world aluminium production 5% - -
Aluminium exports – tonnage (1990 = 0.936 Mt) 1.67 Mt -0.6% +78%
Aluminium exports – value (1990 = $1,990 million) $3,672 million -30% +84%
Total aluminium GHG emissions (1990 = 26.3 Mt) 30.3 Mt CO₂-e -4% +15%
Total direct GHG emissions (1990 = 6.25 Mt) (within smelters) 3.65 Mt CO₂-e -5% -42%
Per unit direct GHG emissions (1990 = 5.0) (per tonne of production) 1.87 t CO₂-e -3% -63%
PFC emissions (1990 = 3.96 Mt) (included in smelter direct emissions) 0.26 Mt CO₂-e -32% -93%
Per unit PFC emissions (1990 = 3.2t) (per tonne of production) 0.13 t CO₂-e -31% -96%
Total indirect GHG emissions (1990 = 20.0 Mt) from electricity consumption 26.7 Mt CO₂-e -4% +33%
Per unit indirect GHG emissions (1990 = 16.1 t) (per tonne of production) 13.7 Mt CO₂-e -2% -15%
a major investor in Australia over 50 years
adding value to Australia’s mineral and energy resources
an important part of Australia’s industrial base
ALUMINIUM SMELTERS MAJOR SHAREHOLDERS START DATE CAPACITY
Bell Bay, TAS Rio Tinto Alcan 100% 1955 177 ktpa
Boyne, QLD Rio Tinto Alcan 59.39% 1982 556 ktpa
Kurri Kurri, NSW Hydro Aluminium 100% 1969 180 ktpa
Point Henry, VIC Alcoa of Australia 100% 1963 190 ktpa
Portland, VIC Alcoa of Australia 55% 1986 358 ktpa
Tomago, NSW Rio Tinto Alcan 51.55%, CSR 36.05%, Hydro 12.4% 1983 530 ktpa
one of Australia’s major exports, with annual export earnings over A$ 8 billion
a capital replacement value over A$ 50 billion
employs over 17,000 people – mostly regional
Australian Aluminium Council LtdACN 000 611 781
PO Box 63Dickson ACT 2602Australia
Telephone 02 6267 1800Facsimile 02 6267 1888
email [email protected] www.aluminium.org.au
Related Documents
