Umicore Precious Metals Refining High Quality Recycling of Scarce Resources Tom Liu The 1 st Expo of Urban Mining Umicore Greater China Beijing, 4 th Dec, 2012
Introduction of Umicore Urban Mine meaning and corresponded recyclable materials Environmental and Sufficient refining process Umicore & sustainability
Umicore s business approach We transform metals into hitech materials. We use application know-how to create tailor-made solutions in close collaboration with our customers. We close the loop and secure supply by recycling production scrap and end-of-life materials. We aim to minimize our environmental impact and be the best employer and neighbour. Application know-how Recycling 3
Umicore fit with megatrends Electrification of the automobile We are a leading producer of key materials for rechargeable batteries for laptops, mobile phones as well as electrified vehicles Resource scarcity We are the largest recycler of precious metals; we are able to recycle more than 20 different metals More stringent emission control We provide catalysts for 1 out of 3 cars in the world as well as for trucks & non-road vehicles Renewable energy We supply key innovative materials for highefficiency solar cells and other photovoltaic applications 4
Umicore in figures 2011 Revenues by region (2011) Turnover 14.5 bn Revenues REBIT 2.3 bn 416 m 22% 2% REBITDA ROCE 553 m 18.6% 4% 56% EPS Dividend 2.69 / share 1.00 / share 16% Market cap. 4.5 bn* With global presence of 14,600 people in 77 industrial sites Europe South America Africa North America Asia Pacific 5
Umicore in Greater China 2,230 people (1,499 in associates)* Beijing # 32 Wuxi # 74 (74) Thin Film Products UMS Element Six Abrasives Chengdu # 4 UMS Changsha #124 Zinc Chemicals Suzhou # 483 (198) Automotive Catalysts Technical Materials Element Six Abrasives Guangzhou # 7 Shanghai # 122 UMS Jiangmen# 443 (343) Cobalt Specialty Zinc Chemicals UMS Corporate Cobalt & Specialty Materials Ganzhou # 870 (870) Cobalt & Specialty Materials Hong Kong # 47 (6) UMS Element Six Abrasives Hsinchu # 16 (4) Thin Film Products Element Six Abrasives Taipei # 12 (4) UMS Element Six Abrasives * Figures of end 2009 6
Introduction of Umicore Urban Mine meaning and corresponded recyclable materials Environmental and Sufficient refining process Umicore & sustainability
From waste to secondary resources Products, infrastructure and residues form huge urban mine EEE Over 40% of world mine productionof copper, tin, antimony, indium, ruthenium & rare earths are annually used Cars > 60% of PGM mine production goes into autocatalysts increasing significance for electronics ( computer on wheels ) Mine production since 1980 / since 1900 100% 90% % mined % mined 1900-1980 80% in 70% 60% 50% 40% 30% % mined in 1980-2010 20% 10% 0% Re Ga In Ru Pd Rh Ir REE Si Pt Ta Li Se Ni Co Ge Cu Bi Ag Au In the last 30 years, > 80%of the REE, PGM, Ga, In, that have ever been mined The products, infrastructure & industrial residue streams form a huge URBAN MINE 8
Technical factors become environmental issues Harmful substance emissions: 1 1. From the product itself: Pb in PrintedWiringBoardsorCRT Glass, Hg in LCD backlights, 2. Due to substandard processes: Dioxin formation during burning of halogenated plastics or use in smelting processes without suitable off gas treatment. 3. Of reagents used in the recycling process: Cyanide and other strong acids NOx gas from leaching processes Hg from amalgation Even the perfect green product canresultin harmful substance emissions when it is recycled in an environmentally unsound process. 2 BAN 3 EMPA 9
Introduction of Umicore Urban Mine meaning and corresponded recyclable materials Environmental and Sufficient refining process Umicore & sustainability
Closing the materials loop SMELTERS & REFINERS INDUSTRY CONSUMER MARKET refined metal e.g. computers e.g. copper scrap e.g. tankhouse slimes production scrap precious metals e.g. electronic scrap precious metals 11
Types of raw material: recyclables Recyclable products Spent Industrial Catalysts Electronic Scrap Spent Automotive Catalysts Precious metal bearing raw materials industrial catalysts from oil refining & petrochemical industry e.g. printed circuit boards end-of-life car catalysts e.g. fuel cells, photographic residues 12
Types of raw material: by-products By-products from non-ferrous industry e.g. slagsfrom nickel, PGM & PM industry and slimes processing e.g. copper cement from zinc industry e.g. lead sulphate from zinc industry e.g. flue dust from nickel, PGM & PM industry e.g. electrolysis slimes from copper industry e.g. drossesfrom lead smelters 13
Our core business Raw materials supply Sampling & Assaying Smelting & Refining Metals sales 14
Metal and derivated products Silver (Ag) Gold (Au) Palladium (Pd) Platinum (Pt) Rhodium (Rh) 2,400 t/y capacity 100 t/y capacity 25 t/y capacity 25 t/y capacity 5 t/y capacity Lead (Pb) Nickel (Ni) Copper (Cu) Iridium (Ir) Ruthenium (Ru) 100,000 t/y capacity 2,000 t/y capacity 30,000 t/y capacity Indium (In) Selenium (Se) Tellurium (Te) Aggregate Sodium antimonate 50 t/y capacity 600 t/y capacity 150 t/y capacity 140,000 t/y capacity 6,000 t/y 15
Introduction of Umicore Urban Mine meaning and corresponded recyclable materials Environmental and Sufficient refining process Umicore & sustainability
Sustainable development For UPMR this implies: an extreme make-over into a recycling company tangible sustainable development objectives using the EFQM business excellence model as the strategic vehicle 17
Sustainable development Eco-efficiency Water treatment Reduction of air emissions Contribution to Kyoto Protocol Reduce carbon footprint Emission reduction Product sustainability All site waters are treated 2/3 of all treated water is reused in the plant strict compliance with emission standards Stack air emissions reduction Diffuse air emissions reduction Respect the climate change/co2 objectives Pledge to stay within the world top for energy efficiency Our Business Excellence system is driven by the European Foundation of Quality Management (EFQM) model. The EFQM approach is formalized in one integrated management systemcertified against international standards: ISO9001 certified for all our processes ISO14001: environmental care system OHSAS18001: safe and healthy production environment 18
Recycling needs a chain, not a single process auditing & certification should not stop after the first step Overall efficiency - Example: 30% x 70% x 80% x 95% = 15%* e-scrap collection preprocessing dismantling materials recovery recycled metals/ elements illegal export? separated components & fractions handling of final waste Totalrecycling efficiencyis determined by the weakest stepin the chain Ensure that critical fractionsare prepared welland reach final processing plants The further downthe chain, the higherthe investment costand level of specialization and hence, the lower the number of players *effective recovery rate for e.g. Au, Cu etc. 19
Certification Scheme (EC-Initiative, DG ENTR) Covering: pre-processors + end-processors (smelters/refiners/ ) = recyclers
Sustainable development Certification is about processes All recycling processes applicable to all pre-processors and end-processors Certification is not about countries, it s about processes Ensuring high quality recycling along the entire chain Recycling under environmental, health and efficient process conditions Effective enforcement of the Waste Shipment Regulation Prevent non-compliant operators from being successful Transparency on material flows and recycling efficiency along the entire chain 21
Summary what needs to be done in general? 1. Collect more & better 2. Prevent dubious/illegal exports and imports improve tracing & tracking and customs controls 3. Ensure high-quality recycling mandatory global certification scheme 4. Develop innovative processes for difficult material mixes (REE, Li, In, Ga,..) 5. Improve data basis 6. Create legislative support for recycling of technology metals 7. Enhance (university) education (interdisciplinary approach beyond engineering) 22
Summary what needs to be done more specifically? Don t be satisfied with statementof e.g. a pre-processor who claims to be using a certain end-processor => double-check with end-processor Ensure that waste/secondary materials are recycled under acceptable environmental, health and efficient process conditions => Investigation Parameter Settings to end-processor Don t be satisfied with too easy solutions such as everything will be reused => critically evaluate/check such statements Certification scheme is a cornerstone to secure high-quality recycling of technology metals and hence to enable sufficient access to essential ingredients of our future products 23
Inspired by the past, challenged by the future, we aim for progress every day. 24 www.preciousmetals.umicore.com