Societal benefits from mining and metallurgy:

Nickel example

Mark Mistry

Joint International

Study Groups

Seminar

April 25th, 2012

Lisbon

Baseline

2

• Nickel mining and metallurgy are at the begin of highly important value chains

• Nickel production processes and sites are often far away from civil society

• Nickel is all around in daily life – but this is not well known

• Concerns related to nickel are known and widely communicated

28

58.693

Ni

Nickel

Challenge

3

• Society, some authorities & other stakeholders do not know benefits and contributions of nickel industry and its value chains

→ Environment

→ Economics

→ Social

• Challenge to bridge the gap between industry and stakeholders

28

58.693

Ni

Nickel

Hot co communicate benefits?

4

28

58.693

Ni

Nickel

1. Demonstrate benefits from nickel value chain

2. Show benefits from nickel and nickel containing products

3. Show importance of nickel and nickel containing products

Benefits from Value Chain: Socio-Economic Analysis

5

• Nickel Institute invested in 2004 (and 2008) into a socio-economic analysis

• Aim: visualize nickel value chain and its importance

• Investigation was conducted for EU to respond to regulatory challenges

• Data for some other markets were also collected, but of different quality

28

58.693

Ni

Nickel

Benefits from Value Chain: SEA - Employment in EU

6

28

58.693

Ni

Nickel

Nickel-dependent employment in the European Union, 2004

Value –chain Component Direct Employment (where nickel is

produced or converted into value-

added products)

Multiplier effect employment

(support industries from legal

to trucking to advertizing)

Total

Employment

Production and recycling of nickel:

mining, refining, scrap collection and

preparation

16,000 7,000 23,000

“First use” of nickel: production of

alloys and chemicals

75,000 60,000 185,000

Intermediate products and services:

fabricators, surface finishers, stockists

50,000

“End-use”: nickel and nickel alloys in

heavy engineering, chemical works,

consumer goods

330,000 150,000 480,000

Grand total

688,000

[1] Weinberg Socio-Economic Analysis of the EU Nickel Value Chain, Data from 2004

• Nickel value chain in Europe is linked to 690,000 jobs (2004)

• 3-4% of total manufacturing employment in EU

Benefits from Value Chain: Value Added (EU)

7

• Total value-added by the nickel industry estimated to be 40 billion €.

• Total value-added is estimated to be of the order of 80-100 billion €.

• Salaries and wages account to >20 billion €

• Investment in R&D around 2 billion € (equals 2% of annual business R&D business expenditure in EU)

28

58.693

Ni

Nickel

Benefits from Value Chain: Taxes, Wages (EU)

8

• Nickel industry & narrow value chain account for substantial tax revenues:

• Employees and employers pay 10 billion € employment taxes (income taxes and social charges)

• Companies pay an additional net 4 billion € in sales taxes

• Companies also pay corporation tax and other local taxes.

28

58.693

Ni

Nickel

Stainless steel61%

Nickel alloys9%

Plating13%

Other17%

Benefits from Nickel Products: Properties & Uses

9

28

58.693

Ni

Nickel

High melting point, 1453ºC

Adherent oxide film

Corrosion and heat resistant alloys

Strength

Ductile

Alloys readily - as solute and solvent

Magnetic at room temperature

Deposited by electroplating

Catalytic

Electrochemical properties

→ Higher efficiency

→ Better functionality

→ Longer life time

→ Less maintenance

→ Lower material intensity

Benefits from Nickel Products: LCA´s

10

28

58.693

Ni

Nickel

Life Cycle Assessments demonstrate impacts and benefits of nickel use throughout the whole life cycle

Batteries / Vehicles

Building products

…

Main Nickel

benefits occur during use phase

Longer life time

Less maintenance

Durability

From: www.nickelinstitute,org/mediathek

Benefits from Nickel Products: Recyclability

11

28

58.693

Ni

Nickel Nickel is 100% recyclable

Due to its high economic value, nickel is a driver to collect nickel containing products

Recycling efficiencies are >60% amongst the highest in the metals industry

Recycling = energy savings, prevents resource depletion and landfilling

Yale University work on nickel stocks and flows is supported to provide regular updates

Benefits from Nickel Products: Political agenda

12

28

58.693

Ni

Nickel

Show contributions and importance of nickel value chain in political agenda

Show that nickel will be relevant for addressing global challenges

Example: Importance of Nickel for achieving a low carbon economy

From: Kleijn R, et al., Metal requirements of low-carbon power generation, Energy (2011),

doi:10.1016/j.energy.2011.07.003

Benefits from Nickel Products: Nickel in Society

13

28

58.693

Ni

Nickel

Brochure that shows nickel in daily use

Demonstrates benefits of nickel use throughout whole life cycle

Shows how nickel is contributing to societal needs

Can be downloaded from Nickel Institute web site in 7 different languages:

http://nickelinstitute.org/MediaCentre/Publications/NickelInSociety.aspx

Outlook

14

28

58.693

Ni

Nickel Communication of achievements

is of key importance

We need to continue our communication efforts

Transparency & provision of data throughout life cycle will be key

The Nickel value chain and its products is contributing to sustainability

Nickel is part of the solution!

Societal benefits from mining and metallurgy:

Nickel case study

Mark Mistry

Joint International

Study Groups

Seminar

April 25th, 2012

Lisbon