Driven by the need for resource efficiency

Transcription

1 OUTOTEC / SUSTAINABILITY TODAY Committed to Sustainable Development Goals PAGE 3 Celebrating 150 years history PAGE 5 Outotec Sustainability Report 2016 sustainabilityreport.outotec.com/2016 Driven by the need for resource efficiency Our customers today face challenges including an unstable world economy, declining ore grades and increased operating costs. In the coming decades, billions of consumers will need greater quantities of resources such as metals and water. Outotec is now focusing more than ever on improving the resource efficiency of our technologies to help customers operate more economically and sustainably. The move towards a circular economy has begun and Outotec is prepared to show the way. PAGE 4 COMBATTING WATER SCARCITY BY GOING DIGITAL Extreme water scarcity will affect large areas around the world by 2025, according to a projection by the Center for Environmental Systems Research. As water is one of the most important resources used in the mining industry, this will affect companies profoundly. Another challenging change sweeping across the industry is digitalization but Outotec is harnessing this megatrend to tackle water scarcity and help our customers reduce their fresh water consumption. PAGE 7 NUTRIENT RECYCLING AT THE HEART OF A SECURE FUTURE Global food production is to a great extent based on the fertilizing nutrient phosphorus a finite natural resource being used up increasingly fast. Trends like continuing population growth, changing diets, the increasing use of biofuels, and shrinking areas of cropland per capita mean we can expect an annual increase in phosphate consumption of 2 3%. Outotec knows that the time to develop technologies to recover and recycle valuable nutrients is now. PAGE 6 IMPROVED PERFORMANCE THROUGH TAILORED SOLUTIONS Ageing and under-performing equipment causes higher expenses and has a significant impact on the overall performance of mines and the recovery of valuable resources. Old equipment also produces more emissions and consumes more energy and water than new, more advanced equipment. Outotec creates tailor-made solutions for customers combining both technological and service products. In 2016, Outotec helped the Canadian-based mining company Yamana Gold to pinpoint performance improvement potential for a beneficial retrofit project. PAGE 5 Greenhouse gas emissions avoided Lost-time injury rate

2 2 OUTOTEC / SUSTAINABILITY TODAY Selected sustainability highlights from 2016 In 2016, Outotec achieved several sustainability milestones, ranging from activities aimed at ensuring competitive business and developing new solutions for resource efficiency to exceeding customer expectations. These selected highlights represent our deep-rooted, long-term commitment to advance our offering for sustainable business and to bring resource efficiency to the forefront. Furthermore, they showcase the competitive possibilities of sustainability that we can build on as we move on towards future challenges, says Tea Maasalo, head of Corporate Responsibility at Outotec. Topics that matter most for Outotec On January 21, 2016 Outotec was ranked the world s 3rd most sustainable company on the Global 100 index of Corporate Knights. In January 2017, Outotec retained its inclusion in the Global 100 Index and was ranked 90th. On May 4, Outotec and Ecolan won first place in the Nutrient Recycling Challenge, held by Sitra, with their Fullrec solution, which recovers nutrients from wastewater sludge and ash produced by energy production for use in fertilizers. On July 18, Outotec received a Performance Award from Hydro Alunorte, the world s largest alumina refinery, in recognition for achieving 1.3 million work hours with zero accidents in the red mud filtration project. On September 15, Outotec signed a partnership agreement with Thermo-System, a global leader in low-energy drying technology, to deliver thermal processing solutions for nutrient recycling. The collaboration complements Outotec s existing waste-to-energy and sludge incineration technologies. On October 10, Outotec celebrated 10 years as an independent company. To mark the occasion, Outotec published a history book titled 150 years evolution toward a greener future the Outotec story, which tracks the development of the mining and metal industries, engineering science and technology sales from mid-19th century to More of Outotec s sustainability highlights from 2016 are presented in the company s online sustainability report Outotec has defined the most material topics to the company and its stakeholders, altogether nine material topics. The result of the review works as the main guide of Outotec s sustainability work. Outotec today Outotec is a technology company with a strong position in the entire value chain from ores to metals. We design, build, maintain and even run entire operations for our customers. Our expertise is in the processing of minerals and metals, water treatment, and energy production from biomass and waste. Outotec s unique position at the forefront of the mineral processing and metallurgical industry is founded on a century of scientific knowledge and operational experience. This means we can offer a wide range of applications for processing virtually all types of ores and minerals. Our mission is sustainable use of Earth s natural resources. We serve companies who want to increase the profitability of their operations, improve their resource efficiency, or reduce their emissions, energy consumption or fresh water use. Many of our customers are investing in new processing plants or modernizing their existing plants, and Outotec works to optimize their return on investment with minimal ecological impact. The innovative research done at our R&D centers, and our continuous development work realized together with our customers, have made us the leading developer of technology in our field. Outotec operates globally, with approximately 4,200 employees and offices or operative units in 34 countries, including our headquarters in Finland. We sell products and services to more than 80 countries. Our customer centers provide full support for our customers businesses both in the everyday running of their operations, and in new investments. Our three business units Minerals Processing; Metals, Energy & Water; and Services create sustainable technology solutions and life-cycle services for our customers. Outotec has been listed on NASDAQ Helsinki since At the end of 2016, the company s market capitalization amounted to EUR 914 million. Read about Outotec s financial performance in our Financial Statements 2016 at Key figures To make sure the company had a clear understanding of its most relevant sustainability areas, Outotec conducted a review of material topics in Outotec also carried out management interviews, reviewed sustainability trends impacting the industry and gathered stakeholder feedback. These nine sustainability topics are the most important for Outotec in relation to risk management or a value creation: 1. Safety 2. Sustainable offering for customers 3. Responsible business practices 4. Sustainable supply chain 5. Development of the company s people 6. Equal opportunities and diversity 7. Stakeholder dialogue 8. Community involvement 9. Minimizing the company s environmental impact THE BIG FIVE Outotec s most significant material topic is safety. Through occupational health and safety and product safety work, the company works to achieve its ultimate goal zero accidents. Outotec enables all employees and subcontractors to work safely by providing all the necessary procedures, instructions and training. Outotec s occupational health and safety principles are defined in the company s Code of Conduct and Quality, Environment, Health and Safety (QEHS) Policy. We primarily measure our safety performance by the lost-time injury rate, but we also collect data on near misses. This helps us with our pre-emptive efforts towards our goal of zero accidents, says Jarmo Koskimaa, head of Global QEHS. Outotec s second most important topic is sustainable offering for the company s customers. Outotec s products and services enable customers to run environmentally sound, profitable and socially acceptable businesses. This contributes towards overcoming environmental challenges and ties into the company s commitment to bringing resource efficiency to the forefront. Our solutions use primary resources efficiently and minimize ecological impacts by, for instance, reducing energy and water consumption at mine sites, and producing less waste and emissions in the process. At the same time, our customers can cut operating costs, says Ilkka Kojo, head of Environment & Sustainability. The third material topic is responsible business practices. Being a responsible business partner means respecting laws and regulations, solid governance practices, effective risk management and ethical behavior in all relationships. Outotec strives to take economic, environmental and social responsibility into account in all the company s activities. It is highly important for us that our employees are empowered to uphold responsible business practices. Our everyday work is guided by our Code of Conduct, which our employees get to know through e-learning and classroom training sessions. Should anyone feel the need to raise a concern or seek advice on ethical behavior, our compliance helpline is open to both internal and external stakeholders, says Riitta af Forselles, Chief Compliance Officer. The fourth material topic is sustainable supply chain. 80% of the company s manufacturing is outsourced and, as a result, sustainability along the supply chain is highly important for Outotec. Two main policies form the basis for collaboration with suppliers. Supply Policy steers supply activities, defines ways to enhance supply quality, and sets out guidelines for all people involved in supply-related activities. Supplier Policy imposes strict requirements on suppliers and defines principles on ethical conduct, compliance with laws and regulations, environment, health and safety, labor, intellectual property and improper benefits. We expect our suppliers to comply with Outotec s policy, identify any deviations, manage corrective actions, ensure transparency and communicate with us on such issues, says Ben Weetman, head of Global Supply. The company s fifth most significant topic is development of Outotec s people. Due to the challenging market environment and several years of restructuring and cost saving programs, the results in both employee engagement and performance enablement have weakened. Outotec will continue taking concrete action to re-build trust and engagement among employees. At Outotec, everyone is equally entitled to enjoy fair treatment, respect and common courtesy, without discrimination and regardless of their ethnic origin, nationality, religion, political views, gender, sexual orientation or age. Outotec has employees from over 60 nationalities in 34 countries. No individual is like the other, and we truly value diversity in the workplace. We do not tolerate any form of harassment, says Kaisa Aalto-Luoto, head of Human Resources and Communications. Sales, EUR million 1,058 1,201 1,403 Adjusted operating profit*, EUR million R&D expenses, EUR million ** Priority applications Average number of employees 4,344 4,855 4,845 Employee engagement index Wages and salaries, EUR million Share of environmental goods and services in order intake, % GHG emissions avoided through the use of Outotec technologies, thousand tonnes of CO 2 e Lost time injury rate (LTIR) per 1 million working hours Total GHG emissions, tonnes of CO 2 e per EUR 1 million sales ,870 5,469** 5,067** Total energy consumption, TJ *) excluding restructuring and acquisition-related costs and purchase prize allocation amortizations **) restated figure Outotec Oyj PO Box 1000 FI Espoo Finland Tel CONTACT INFORMATION Tea Maasalo Director - Corporate Responsibility tea.maasalo@outotec.com Eila Paatela Vice President - Corporate Communications eila.paatela@outotec.com Saija Kinanen Communications Manager saija.kinanen@outotec.com

3 OUTOTEC / SUSTAINABILITY TODAY 3 Editorial More from less I have met many of Outotec s customers since taking on the position of CEO in October, and the issue of profitability improvement comes up in almost every conversation. Our customers also want to discuss the challenges they face relating to efficient use of raw materials and energy, reduction of emissions and water management, for instance. Customers are more and more interested in the life-cycle costs, not only the investment cost. Outotec s sizeable positive handprint is created when the technologies and solutions we have developed are used by our customers. The negative impacts of our own operations our ecological footprint are much smaller than this handprint. In 2016, Outotec earned one of the top positions in the Corporate Knights index of the Global 100 most sustainable companies in the world, for the second time. This is welcome recognition of the work we do and the results we have accomplished. As the metal content of mined ores decreases, and since in many places the best mineral deposits have already been exhausted, resource efficiency and recycling are taking on an ever more important role. Much has been done in these areas, but many opportunities still exist. With top class expertise and technology, good use can be made of materials extracted earlier, such as tailings, side streams and slag. This can result in more valuable metals, less waste and better efficiency. The Paris Climate Agreement has drawn the world s attention to carbon dioxide emissions. For Outotec, this is a business opportunity after all, our technologies are widely known for minimizing environmental impacts. Completely carbon emission-free, hydrogen-based direct reduction is a technological vision that could reshape the future of the steel industry, for instance. However, getting there will require extensive development work. Outotec is committed to support and implement the principles of the UN Global Compact concerning human rights, working life, environmental affairs, and anti-corruption. Through our own actions the company also supports the realization of the UN Agenda 2030, which promotes sustainability. Outotec, too, wants to take into account the environment, the economy and people, in a balanced way was a challenging year for Outotec. We had to cut down our expenses and reduce 650 jobs, and the cost saving actions will continue. But now we are building the future. We are striving to serve our customers even better, and develop our service offering with our new Services business unit, which begins its operations in April Our task is to give our customers insights into new possibilities, and to stay one step ahead. Markku Teräsvasara President and CEO Committed to Sustainable Development Goals The United Nations launched the 2030 Agenda for Sustainable Development as a framework for shared actions to be undertaken by for all countries, companies, NGOs and other stakeholders, in The Agenda s 17 Sustainable Development Goals (SDGs) adopted by the UN General Assembly set out a development agenda with global shared social, economic and environmental objectives. We are committed to the Agenda 2030 and the SDGs, and we have identified the most relevant goals for us, as well as the impacts we have on the SDGs. We have also integrated the SDGs into our Sustainability Agenda. Our technologies reduce the pollution and contamination of air, water and soil. Our processes reduce the use of fresh water and amounts of waste water and increase the safe re-use of water. By upgrading our customers operations we make them more sustainable. We cooperate with universities in R&D. We improve the energy efficiency of our customers operations. Our renewable energy solutions promote sustainable development in cities. We foster equal opportunities and diversity. We innovate to improve resource efficiency in production. We strive towards a sustainable supply chain, so that our customers can use natural resources efficiently. Our technologies help our customers to combat climate change every day. We have zero tolerance for corruption. In addition, our operations have an indirect impact on two sustainable development goals: We promote policies reducing inequalities. We do all this together with our customers, suppliers and other business partners.

4 4 OUTOTEC / SUSTAINABILITY TODAY Resource efficiency to the forefront Three billion new middle-class consumers will need vital resources such as metals and water in the coming decades. This means that efficient and sustainable use of natural resources will become imperative. To cope with these global challenges, we develop and provide processing technologies and services to avoid unnecessary environmental impacts as well as reduce energy and water consumption by increasing material efficiency, recycling of metals and reprocessing of tailings and wastes. Outotec VSF X modular solvent extraction plant can be assembled considerably faster than conventional plants. Today s market environment is characterized by uncertain world economy, declining ore grades and customers increased operating costs. As a result, resource efficiency has grown in importance and is often embedded into customers requirements. For this reason, Outotec is focusing more than ever before on improving the systemic resource efficiency of the company s technologies to enable the economically viable production of metals. Outotec s technologies have always been known for their resource efficiency, which gives the company its competitive edge. EFFICIENCY THROUGHOUT THE LIFE-CYCLE Ore grades are becoming more complex and more difficult to process. Although minerals are non-renewable, natural resources such as metals once they have been mined and processed are 100% recyclable. Moving towards a circular economy means essentially two things making primary production chains much more efficient, and recovering more metals from residues, scrap and products at the end of their life-cycle. At Outotec we have the right technology mix and deep knowledge to tailor-make systemic solutions to treat a wide range of feed materials, including both primary minerals from geological mines, and secondary materials containing recycled minerals, says Kalle Härkki, President of Outotec s Metals, Energy & Water business unit. We help our customers to maximize metal yields by using advanced technologies involving digitalization, automation, closed material loops, efficient water management and paste backfill solutions. One key recent development at Outotec is the introduction of a rigorous analysis framework based on each customer s process requirements. It allows Outotec to effectively assess the resource efficiency and the flows of raw materials, water, energy and wastes, especially in the context of the circular economy and focusing on the direct and indirect environmental impacts of our solutions. Customers can also use this information in their decision-making to choose the most environmentally sound option, and to improve their understanding of the trade-offs between different process options. Though mining companies typically invest in large equipment and processing units using economics of scale to seek profitability and low unit costs, they are still showing increasing interest in resource efficiency and environmental sustainability. The current metals business environment does not encourage companies to invest in increasing their processing capacities. To adjust the company s offering to today s needs, Outotec has launched alternative, modular plant concepts that are small-scale, but still highly flexible and resource efficient. The recently launched modular solvent extraction and flotation plants are very agile. They can easily be adjusted to various production volumes, and then later reused in other sites with relatively light additional structures after production ceases at their initial location. Their simplified design and modularization gives products a longer life-cycle and higher end-of-life value. SALES BOOST FROM BY-PRODUCTS AND SECONDARY RAW MATERIALS By-products from metallurgical processes, such as minority metals, acids, salts, chemicals and slag, are recovered to create saleable products that can be used as raw materials in other industries. Energy recovered from processes, typically as a steam, can be used in the process itself, in other processes, or even in electricity generation. Such measures are essential when it comes to achieving high energy efficiency. Heat generated in processes can similarly be recovered and used in other processing phases. Metals are different from other materials in that they are inherently recyclable and in fact they ve been recycled for thousands of years, explains Härkki. In addition to providing environmental benefits, recycling is often financially viable. However, the challenge in using secondary raw materials is typically the complexity of the raw material, which may include a mixture of alloys in different physical forms, as well as electronics, plastics, oil, fluids, textiles, metals, glass, sand and so on. Outotec has plenty of experience in integrating several different technologies so as to maximize the recovery of multiple materials and use the energy contained in the feed in the processing. In secondary smelting, it is also essential to capture emissions generated in the process, and Outotec offers several alternative ways to clean gases before they are released into the atmosphere. WATER AN INCREASINGLY PRECIOUS RESOURCE Clean fresh water is a scarce resource in many parts of the world. Outotec s solutions can optimize water management in entire mines and concentrator sites. The target is to minimize fresh water consumption by implementing water reuse, recycling and cleaning practices. Our paste plant technology for mineral concentrators and effluent treatment of metallurgical processes are proven solutions, says Härkki. One viable solution for waste material storing is the dry stacking of concentrator sand, which is far safer than the tailings dams currently in widespread use. For waste water treatment we have developed a process for managing sulfate, which is a common and growing challenge in the industry. Our customers end up reducing the amounts of energy, chemicals or other inputs they use, while at the same time keeping their social license to operate, says Kalle Härkki, President of Outotec s Metals, Energy & Water business unit. TURNING MUNICIPAL WASTE INTO ENERGY Resources that can be recovered from municipal waste water treatment sludge include energy, various metals, nutrients, and other salts and chemicals. A state-of-the-art sewage sludge incineration plant typically operates with a self-sustained process, without external fuel. It can produce a net surplus of heat or even electrical power, and still comply with all emission standards. Outotec helps companies to move forward from cleaning water to minimizing waste water streams. A wide range of fuels, such as agricultural waste, municipal solid waste, wood waste, industrial and municipal sludge, plastic, and tires can be used for energy production with Outotec technologies. Such processes close critical metal and nutrient cycles by turning waste ash into a raw material or even a ready product such as phosphate or fertilizer, adds Härkki. BUILDING UP NEW BUSINESS FROM RESOURCE EFFICIENCY One of the key drivers for resource efficiency is the notion that it plays an important role not only from an environmental perspective, but also as a competitive advantage to Outotec and our customers. Companies are looking for all possible ways to boost profits without making large capital investments in new plants. We ve found new business opportunities from this quest to improve resource efficiency. We analyze each link of our customers operations, and then suggest services that will improve their performance, and models that include novel ways of creating value. Our customers end up reducing the amounts of energy, chemicals or other inputs they use, while at the same time keeping their social license to operate, Härkki says. Outotec sees significant business opportunities in the areas of digitalization, modular solutions, services, water management, and nutrient recycling. All these trends can support sustainable development, resource efficiency and the circular economy concept. The company has created innovative digital platforms with embedded service business models. These platforms may include status information on a mobile dashboard, operator support from remotely connected experts, water management data, closed-loop advanced control, condition-based maintenance service, or dynamic simulator assisted training. Customers benefit in terms of improved safety, availability, performance and resource efficiency, as well as reduced environmental impact.

5 OUTOTEC / SUSTAINABILITY TODAY years evolution toward a greener future - the Outotec story Outotec has published a book that tracks the development of the mining and metal industries, engineering science and technology sales from mid-19th century to Outotec has its roots in the history of many widely known corporations, such as Outokumpu, Metallgesellschaft and Lurgi Metallurgie. The book traces the development of the technology sales business of Outokumpu and Metallgesellschaft and looks at why and how Outotec became an independent company in CASE Savings from minimized shutdown time at Yamana Gold Improved performance through tailored solutions Outotec Performance Solutions involve much more than a range of products and services. By taking this kind of holistic approach Outotec aims to improve its customers operations and business efficiently and sustainably. The starting point for any Performance Solution is always the customer s specific problems or needs. The book is available in English online at and as a hard copy from communications@outotec.com The book was published on October 10, 2016 to celebrate Outotec s 10th anniversary as an independent listed company. The event was celebrated with the employees globally. Yamana Gold is a Canadian-based gold producer with mines and operations in Canada, Mexico, Brazil, Argentina and Chile. The company s open pit gold and copper mine in Chapada, Brazil, began production in Yamana Gold is a Canadian-based gold producer with mines and operations in Canada, Mexico, Brazil, Argentina and Chile. The company s open pit gold and copper mine in Chapada, Brazil, began production in When it comes to the efficient mining of precious metals, flotation performance is of the utmost importance. Yamana s analysis showed that considerable amounts of gold and copper had been ending up in tailings. In addition, the flotation cells, provided by another supplier, were prone to sanding, which caused repeated disruptions in the flotation circuit. After a thorough evaluation, Yamana turned to Outotec, whose metallurgical and mechanical assessments showed large potential for improvement in the flotation process. In March 2016, a turnkey project was initiated involving the retrofit of 10 non-outotec flotation cells with Outotec TankCell and FloatForce technology. The Yamana Gold case is a great example of the benefits of paying attention to resource efficiency, says Miika Tirkkonen, Senior Manager, Service Product Management, Beneficiation. By modernizing the equipment, Outotec was able to improve both the productivity and the energy efficiency of the flotation process. The project scope included: Computational Fluid Dynamics studies Basic and detailed engineering Shutdown planning Delivery of proprietary equipment Turnkey installation, commissioning Assisted operation Advanced training of on-site personnel Customers have a variety of different needs, stemming from their individual operating environments and parameters. It is therefore not possible to provide one single solution to answer every problem. Instead of jumping straight in with a set of technology and products, Outotec carefully analyzes the challenges faced by the customer, identifies the factors behind them, and then creates a tailor-made solution, combining both technological and service products. Combining technical solutions with a maintenance or service agreement often leads to continuous cooperation, making it is easier to verify how improvements are realized. Further areas for improvement can also be detected and additional efficiency-boosting projects can be carried out. Advisory and remote services provide continuous customer support. KEEPING UP WITH THE TIMES Outotec aims to improve customers overall equipment efficiency. One of the main challenges in this work is ageing equipment. Older technology tends to mean higher the operating expenses for the customer. Productivity typically declines as equipment may be used outside its original parameters, while in older mines feed grades are often weaker, lowering mineral intake. Additionally, operational and maintenance safety may not be of the standards expected today. Efficiency and environmental concerns often go hand in hand. If, for instance, the feed grade of a mine has declined, increasing process efficiency can improve recovery rates to the extent that the need to open a new mine Our customers face many challenges: Tightening competition Ageing equipment Safety of personnel Demands set by environmental regulations is removed or postponed. Emissions from old equipment tend to be higher, and the same is true for energy and clean water consumption rates. Keeping technology up to date is therefore a major factor in productivity, as well as an environmental investment. But this alone is not enough. A mine s personnel must be PERFORMANCE SOLUTION PROJECTS ARE CARRIED OUT IN FOUR STAGES: VERIFY ASSESS YOUR CUSTOMIZED PERFORMANCE SOLUTION DELIVER capable of operating the equipment efficiently. The impact of improvements in competence levels on operating expenses can be drastic, as energy use and the need for spare parts are reduced. Training services can ensure that the customer s personnel are able to use the equipment to its full potential. DESIGN Customized steel works were manufactured in Brazil, which enabled short delivery times, contributing to the flexibility and overall efficiency of the project. In total, more than 80 Outotec experts took part in the modernization, working in two shifts to ensure the efficient use of the available time. Minimizing shutdown time and production loss was naturally vital to the customer. Outotec was able to answer this challenge with a tailored concept that took the project s total cost and return of investment into consideration. The second bank shutdown took only six days instead of the planned eleven, saving valuable time and allowing Yamana to restart operations sooner than anticipated. OPERATOR TRAINING PROVIDES ADDED VALUE In addition to the retrofit, Yamana needed a dependable partner who could help the company improve its operations on a continuous basis, and Outotec was happy to step forward. Outotec provided Yamana with advanced operator training, using its Virtual Experience process to familiarize the mine operators with the technology and instructing them in its efficient use. The skilled operation of a mine s technological assets can have a profound effect on its profitability as well as its maintenance needs. By also offering related training services we can provide added value to our customers, says Miika Tirkkonen. CLOSE COOPERATION CONTINUES Yamana Gold s flotation issues were successfully resolved, improving the stability of flotation cells, decreasing energy consumption, increasing flotation circuit availability, and improving recovery rates for both copper and gold. Cooperation between Yamana Gold and Outotec is now continuing with the identification and removal of other potential bottlenecks, which will further improve the performance of the entire facility. YAMANA GOLD RETROFIT PROJECT Customer: Yamana Gold Project site: Chapada open pit gold-copper mine in Brazil Challenges: Unsatisfactory flotation performance; repeated disruptions due to sanding Solution: Retrofit of 10 flotation cells with Outotec technology Results: Improved flotation performance, availability and recovery rates

6 6 OUTOTEC / SUSTAINABILITY TODAY Nutrient recycling at the heart of a secure future Eutrophication and the increasing shortage of phosphorus are major challenges facing the society and global food production. As phosphorus is a nonrenewable resource, it is vital that we explore and develop methods to recycle valuable nutrients. No element can replace phosphorus as a primary nutrient that is essential for plant growth and used as a fertilizer in food production. However, high-quality natural phosphate ores are gradually being depleted. Continuing population growth, changing diets, bio-fuels and shrinking per capita cropland are drivers behind the predicted annual 2 3% increase of phosphate consumption. Thanks to advanced technology, we can recover phosphorus from sewage sludge through thermal processing. This way municipal energy and sewage treatment companies can recover valuable nutrients and sell them to fertilizer producers instead of sending sewage sludge to landfills. Outotec believes that the one of the best ways to work towards a circular economy is forming fruitful partnerships to offer innovative solutions for customers, says Juhani Anhava, Director, Business Development. In One of the best ways to work towards a circular economy is forming fruitful partnerships, explains Juhani Anhava at Outotec 2016, we partnered with Thermo-System GmbH, a Germany-based global leader in low-energy drying technology, to complement our waste-to-energy and sludge incineration technologies. The partnership fits Outotec s circular economy approach perfectly. With our expertise, we can recover and recycle valuable nutrients and help solve challenges relating to resource scarcity. It is important to acknowledge that not all nutrients can be recovered using the same method. For instance, thermal processing works with phosphorus but nitrogen and carbon are lost in combustion. This is something that Outotec is already actively working on with Ecolan. ABOUT PHOSPHORUS Phosphorus is a vital component of every cell in all living organisms. No other element can replace it, as it is a primary nutrient that is essential for plant growth. It is widely used on cropland as a fertilizer. Phosphorus mainly exists as white or red phosphorus. Phosphorus is a non-renewable resource, and several areas in the world depend entirely on imported phosphorus. Phosphorus uses include: Flares and match striking surfaces Fertilizers Steel production Manufacturing of special glass and chinaware Food applications (such as soft drinks) CASE Support for challenging conditions in the desert Many of our customers have operations in challenging, isolated conditions. This requires us to offer flexible and robust services and solutions so the customers can reach their business goals and operate sustainably. The Italian engineering company Desmet Ballestra S.p.A Milano chose Outotec to design and deliver a modular solvent extraction plant to purify fertilizer phosphoric acid before evaporation for the company s plant in Egypt. CASE New innovation for the city of Nokia Copyright Tampere Region Economic Development Agency Tredea Operations in a desert pose several challenges for fertilizer production: The isolated location of the plant The low phosphate content of the ore body Relatively big throughput of the plant Impurities created in the process Our basic design for solvent extraction is based on ten scalable modules. A modular structure is easy to transport and install, which helps bring safety benefits and reduces the total delivery time. Furthermore, when the time comes to close the plant s operations at the end of its lifecycle, the modules can be transported to other locations. In 2016, Sitra held the Nutrient Recycling Challenge, inviting companies to develop solutions to enhance the recovery of nutrients in an economically viable way. Together with Ecolan, the leading Finnish forest and organic fertilizer producer, we participated in the challenge and took first place. Our winning competition entry Fullrec combines three separate technical processes: Outotec s DeBugger and ASH DEC processes and Ecolan s granulation process. The aim is to process sludge and digested waste in a way that makes it possible to recover nitrogen and carbon for recycling. These nutrients would be destroyed in thermal processing, unlike phosphorus. Instead of burning the sludge, we dry it and mix it with ash. The resulting mixture is granulated into a ready product. Outotec and Ecolan are developing Fullrec in the new industry zone ECO 3 in the Finnish city of Nokia where the aim is to develop a thermal treatment plant for sewage sludge. The company also wanted Outotec to deliver two sulfuric acid plants for the same the project. Our technology will improve the sustainability of the fertilizer plant in three ways: Minimizing the fugitive emissions of sulfur dioxide from the acid plant Generating of carbon-free energy from our HEROS heat recovery technology Reducing the plant s consumption of raw water

7 OUTOTEC / SUSTAINABILITY TODAY 7 Efficient and modern water management helps mine operators to comply with environmental regulations, says Susanna Horn. Combatting water scarcity by going digital We assess each customer s site-specific requirement with a water balance audit, says Kaj Jansson. Water management is an essential aspect of daily mining operations. The utilization of water for wet beneficiation, cooling, sealing pumps, dilution and washing has a significant impact on the efficiency of mining production. Water is one of the most important resources used by the mining industry. No other fluid works as efficiently or is as suitable for the purposes of mineral processing. While companies are looking into alternative options, it is crucial to develop water management solutions that respond to today s challenges. Naturally, mines do not exist and operate in an isolated bubble, says Susanna Horn, Life Cycle Manager, Environment & Sustainability. They are part of surrounding society, and have legal and ethical obligations to operate responsibly. Doing this protects both the environment and the company s reputation, which in turn affects investment prospects. Efficient and modern water management helps mine operators to comply with environmental regulations and ensure that they can successfully apply for environmental permits in the future. Several regions of the world are expected to face extreme water scarcity by Due to increasing resource scarcity, it is becoming more and more important for mine operators to invest in up-to-date solutions and create more closed loops by recycling water within their facilities. Types of risks posed by water: Operational Environmental Reputational Financial By applying new hardware and software solutions enabled by digitalization, it is now possible to monitor water quantities and quality in real time, says Eija Saari, Service Product Manager, Dewatering Solutions. This will enable mine operators to respond immediately if there is a surplus of water at a mine, resulting from extreme weather phenomena, or if there is a change in the water quality. In addition to monitoring, we can leverage existing data to create forecasts and future scenarios. FLEXIBILITY AN ASSET IN SUPPORTING CORE OPERATIONS Water streams in the mining industry are highly complex and site-specific, which Outotec always takes into account. Some customers may only need a monitoring module, while some may also want a management support module, and others may prefer to have a comprehensive package with Predict & Evaluate on top of the two other modules. Predict & Evaluate, the highest level of Outotec s water management concept, helps customers evaluate the impacts that changes such as capacity increases will have on water quantities and quality. Whatever a customer needs, Outotec will tailor the solution accordingly. Instead of going straight for a ready-made solution, we assess site-specific requirements by carrying out a water balance audit, explains Kaj Jansson, Director, Materials Management Sales Support. Then we deliver the required monitoring systems and web portal access to the customer. This way the customer always gets the services and solutions the mine site truly needs. Water management at mine sites Fresh water Evaporation Concentrator Tailings treatment OUTOTEC S WATER MANAGEMENT CONCEPT Extraction and mining (open and underground) Process water Tailings dam Outotec offers a scalable, modular water management solution. Consisting of online measurement and dynamic water balance monitoring, the concept has three modules: Monitor: real-time information Manage: forecasts and scenarios for operational conditions Predict & Evaluate: scenarios to evaluate options and changes Ground water Waste rock and soil deposit areas Metals refinery Mine closure and reclamation Outotec s Dynamic Water Balance with HSC Chemistry is thermodynamic calculation software and forms a part of the Manage and Predict & Evaluate modules.

8 8 OUTOTEC / SUSTAINABILITY TODAY The University of Helsinki and Outotec join forces to co-create Increasing urbanization and the growth of the middle class will put a strain on natural resources and environment in decades to come. Demand for metals and minerals will grow, making it crucial to optimize resource usage and build a circular economy, while also decoupling wealth from ecological impacts. The Sustainability Master Class program, a joint project involving Finland s leading university and Outotec, has been designed for students, young researchers and professionals who are keen to discover new approaches to innovation and help build a sustainable future. The multidisciplinary Sustainability Master Class will tackle issues such as the mining industry s social impacts and social license to operate, the integration of sustainability into business decisions, disruptive business models, technology transfer, and leapfrogging. Participants will explore and analyze these topics and create new solutions to specific problems devised by Outotec s experts. The participants have diverse academic backgrounds. The program s interdisciplinary approach aims to combine young students out-of-the-box thinking with scientific understanding as an ideal way to foster new innovations in our business environment, says Susanna Horn, who is leading the Life Cycle Model Development at Outotec and one of the mentors involved in the program. The University s entrepreneurial community Helsinki Think Company and the Nordic think tank Demos Helsinki are both facilitating the scheme. Teams will be supported by a group of mentors and hand-picked experts from Outotec, the University of Helsinki, the Finnish Ministry for Foreign Affairs, the Finnish Innovation Fund Sitra, VTT Technical Research Center of Finland, and Technology Industries of Finland. CREATION, DEVELOPMENT AND DISRUPTION The first challenge, the mining industry s social license to operate, is closely linked to its environmental impacts. Mine operators must work to win the approval of local communities and stakeholders. The teams will discuss questions like: How should a mining company build up and sus- tain a good relationship with all of its stakeholders? The second challenge concerns technology leapfrogging and issue of great interest in Outotec s field. Developing countries are currently taking huge steps in terms of their economy and sustainability so what if they had the opportunity to leapfrog the west in these respects? If developing countries choose to use clean technology immediately, instead of following on the path that industrialized countries have taken, it is even possible that developing countries could soon become the benchmark for the west. In the third challenge, we will be looking for a business model that would disrupt the mining industry, explains Susanna Horn. Saving Earth s natural resources means saving energy and raw materials, leading directly to cost savings and more profitable business. The program will continue until early April 2017, when the challenge outcomes will be presented in a final pitch to Outotec. Outotec Customers Market Areas and Customer Centers Metals, Energy & Water Minerals Processing Services Executive Board and corporate functions President and CEO Sustainability Report 2016 on the renewed outotec.com Outotec establishes new Services business unit Outotec has published its Sustainability Report 2016 online. It is accessible to mobile devices and can reach a much larger audience than a paper version and is easier to share with others. The web-based report contains interesting and comprehensive information about the company s sustainability activities, goals and achievements in It describes challenges as well as triumphs, offering all of Outotec s stakeholders and interested parties insights into the sustainability management and practices of a technology company working at the forefront of the mineral processing and metallurgical industry. Outotec s new visually appealing website, launched in January, has been designed to focus on customer-centric themes. Its hierarchy is based on customers needs and interests, aiming to provide online visitors with relevant and easy-to-understand information. By enhancing user experience, the website provides value-adding content and showcases Outotec s solutions and services even better than before. In addition to providing relevant information in an easily accessible format, our new website encourages visitors to explore the world of Outotec from the perspective of the commodity value chain, explains Henri Kaukola, Director, Marketing. Visit to see the new website. We hope you enjoy the new look and content! In April 2017, Outotec s new Services business unit will begin operating. The new unit aims to enhance Outotec s service offering, and improve the company s capabilities to keep Outotec close to customers. Outotec s extensive installed base provides many business opportunities in servicing. The new unit, devoted entirely to services, will enable the company to extend the scope of its offerings to existing customers, and provide them with continuous support. A more comprehensive service offering is also a competitive advantage in attracting new customers. Increasing customer-centricity is one of Outotec s strategic targets, and the launch of the new unit marks a significant step towards that goal. We have plenty of untapped potential for service business in our installed base, says Markku Teräsvasara, President and CEO of Outotec. We re establishing our new Services business unit to further strengthen the focus and management of our service business. After this change, Outotec s business model will become clearer, with three distinct business units. By having a stronger operational focus, we aim to improve our performance and customer satisfaction.