ENVIRONMENTAL MANAGEMENT
INVESTMENT
The total environmental costs in 2019 amounted to 7.60 billion
roubles, which is 5.1% more compared to 2018.
Capital expenses for the re-equipment and modernisation
of treatment equipment at enterprises in 2019 amounted
to 995.0 million roubles, which is 21.5% lower compared to 2018.
This change is due to a decrease in plans for 2020 for the number
of activities requiring capital expenses. Moreover, all Company’s
enterprises comply with the requirements of the best available
technologies.
Dynamics of changes in environmental protection expenses,
2017–2019,
bn roubles
7,6
RUB bn
the total environmental costs
in 2019
Structure of environmental investments in 2019
Structure of environmental investments in 2019
by enterprises
The largest investment in environmental protection in 2019
was allocated to LGOK.
ENVIRONMENTAL PROTECTION PROGRAMME
In order to reduce environmental impact and to improve environmental
situation in the regions of the Company’s presence the Metalloinvest’s
environment protection programme was initiated in June 2019
to be implemented at the level of the entire Company.
Ensuring
environmental safety;
Effective use
of resources;
Ensuring
environmental
sustainable development;
Improving
environmental
production processes
The future programme was based on the
benchmark analysis of domestic and foreign
ferrous metals companies in terms
of developed environmental programmes,
priority areas and environmental
performance indicators.
In the process of developing
the Environmental protection programme,
an analysis of the environmental risks of the
Company’s enterprises was performed based
on the calculation of the integral quantitative
assessment of possible risks associated
with potential negative impact on the
environment.
To calculate the integral assessment
of environmental risk, a comprehensive
approach was implemented that takes into
account a number of criteria, including
potential negative impact on stakeholders
in case the environmental project is not
implemented, obligations applicable to the
activities of the Company’s enterprises,
including legal requirements, and the
forecast risk probability.
The process of identification
and assessment of environmental
risks covered all areas of potential
environmental impacts, including exposure
to atmospheric air, water resources,
biological diversity of the regions of the
Company’s presence, waste management
activities, etc.
Based on the assessment results
and taking the benchmark analysis findings
into account, a list of environmental
measures was prepared as regards highly
significant and significant potential risks,
as well as environmental performance
indicators in all areas of environmental
protection development. The events are
planned to be held from 2020 to 2025.
USE OF MATERIAL
RESOURCES
Efficient use of resources and the reduction of waste generation are one of the key areas
for the development of environmental protection activities of Metalloinvest.
The Company focuses on increasing the share of disposal of all generated waste,
including the disposal of metals and mining waste in the main production cycle.
The structure of the Company’s enterprises is a vertically integrated
production. The mining segment, represented by LGOK and MGOK,
produces iron ore, which is the main material resource for the metals
enterprises of the Company.
The main production cycle of the Company’s metals and mining
enterprises implies the use of coking coal and scrap metal
in addition to iron ore as a secondary material resource. In 2019,
the consumption of iron ore at metals enterprises amounted to 9.1
million tonnes, which is 3.2% less compared to 2018.
Dynamics of changes in the amount of basic material
resources used for production, mln tonnes
Dynamics of changes in the total amount of reused material
resource metals wastes, 2017–2019,
mln tonnes
Mining waste management structure in 2019
Steel industry waste management structure in 2019
Dynamics of waste generation at the Company’s enterprises,
2017–2019, mln tonnes
Total waste treatment structure in 2019
Waste amount by hazard class and disposal methods in 2019
tonnes
| WASTE TREATMENT METHOD | HAZARDOUS WASTE
(CATEGORY I–III) | NON-HAZARDOUS WASTE
(CATEGORY IV–V) | TOTAL |
| Waste processing | 223 | 506,119 | 506,342 |
| Waste disposal | 751 | 22,922,991 | 22,923,742 |
| Waste treatment | 17 | 50 | 67 |
| Transfer to outside organisations | 4,965 | 2,071,940 | 2,076,905 |
| Disposal of wastes at operational facilities, total | 591 | 102,467,948 | 102,468,539 |
| including: | |
| Storage | 19 | 50,729,305 | 50,729,324 |
| Burial | 572 | 51,738,643 | 51,739,215 |
| Total | 6,547 | 127,969,048 | 127,975,595 |
Metalloinvest was able to reduce
the amount of waste located in the
disposal facilities by
4,1 %
Increase in the volume
of waste disposal by
12,1 %
AIR EMISSION
AND AIR PROTECTION
Air basin protection is one of the top environmental protection priorities for metals
and mining companies. Metalloinvest implements a series of initiatives at all enterprises
aimed at reducing the emissions of air pollutants (including dust).
The Company’s commitment to ensure air emission control
and reduction is confirmed by the use of EMS-certified production
facilities and production facilities. In 2019, the total steel produced
by EMS-certified production facilities amounted to 4,867.2 thousand
tonnes with the number of employees and contractors working
at EMS-certified production facilities reaching 19.1 thousand people.
The volume of air emissions in the reporting period amounted
to 124.8 thousand tonnes (7.1% higher compared to 2018).
The increase is due to new HBI plant at LGOK reaching its full
production capacity.
Dynamics of the amount of air pollutant emissions,
2014–2019,
thousand tonnes
Although the most of the regions of presence have no shortage
of water resources (excepting Kursk region) , Metalloinvest seeks
to reduce the amount of water taken from various sources
by implementing numerous measures including modernisation
of production. The company uses special sump tanks to accumulate
wastewater to be later used for technical needs.
The total volume of reusable water in the water supply systems
of the Company’s enterprises amounted to 2,656.4 million m3 in the
reporting period 1.2% less compared to 2018. At the same time,
in 2019 the share of water withdrawn from various sources amounted
to 5.8% of the volume of reusable waters.
In 2019, the Company’s enterprises collected 154.3 million m3
of water from various sources. The main objects of water intake
and sewage discharge are the rivers (Oskol, Oskolets, Ryasnik, Chern,
Rechitsa, Ural) and the Stary Oskol reservoir located in the regions
where the plants operate. Water intake increased by 2.3% compared
to 2018. This increase is associated with a large inflow of rain
and groundwater.
Dynamics of changes in the reusable water, 2015–2019,
mln m
3
None of the active enterprises of the Company operates in protected
areas or territories with high biodiversity value. Nevertheless, being
aware of the importance of biodiversity conservation in the regions
of presence, Metalloinvest performs regular monitoring of flora
and fauna biodiversity, and also supports institutions involved in the
study and conservation of typical and unique ecosystems.
In 2019, a study of the biological diversity of the technogenic
landscapes of MGOK was conducted in cooperation with
the Professor Alekhin Central Black Earth State Biosphere Nature
Reserve.
The study revealed that the area of overburden rocks has
a diverse complex of ecotopes suitable for various living species.
In addition, a species inventory of representatives of flora
and fauna was performed in the territory of MGOK as part of the
study. Many rare species of animals and plants were found
in the area of study, including those from the Red Book of the
Kursk region and Russia. In total, 54 representatives of the flora
and fauna included in the Red Book of the Kursk region and 12
representatives of the Red Book of Russia were discovered.
Another 16 species of the plant and wildlife previously unavailable
in Kursk region were discovered.
The results of the assessment of the biological diversity of the
flora and fauna of the technogenic landscapes of MGOK allow
concluding that the reviewed territory is suitable both for typical
and rare species of biota. The resulting data are the basis
for further environmental monitoring in terms of biodiversity
conservation.
Moreover, in 2019, LGOK performed the development
of methodological basic aspects of continuous monitoring
of the current state and dynamics of the Yamskaya Steppe
nature reserve located near the enterprise. As part of this work,
monitoring was performed to assess the impact of the LGOK
activity on the ecosystems of the reserve and the effectiveness
of dusting reducing measures.
COMPLIANCE
The Company’s tailings dumps
are designed and constructed
by specialised organisations. All design
documentation, including development
plans, have passed all necessary state
expert appraisals. The construction,
reconstruction and operation of tailings
dumps is carried out in strict compliance
with the requirements of Russian
laws, under the supervision of design
developers and state control. Safety
declarations for hydraulic engineering
facilities of tailings dumps have been
developed and agreed with federal
executive authorities.
The Company applies a systematic
approach to ensure the safety of its
tailings dumps at all stages of their
life cycle in accordance with Russian
legislation and corporate standards.
To ensure operational reliability,
industrial and environmental safety
of tailings, the Company has introduced
the monitoring and control system,
and developed a set of regulatory
documents and technical measures.
Metalloinvest enterprises appointed
technical managers and established
separate units responsible for the safe
operation of hydraulic engineering
structures of tailings and their timely
monitoring and supervision.
Visual examination is performed using
monitoring and measuring devices.
In total, about 1,050 devices are used
to monitor the tailings dumps of LGOK
and MGOK.
In addition, the technical condition
of storage dams is inspected in the
course of multilevel control by state,
design and expert organisations:
- On-site supervision of design developers
of hydraulic engineering facilities
- Supervision by Rostekhnadzor
(Federal Service for the Supervision
of Environment, Technology
and Nuclear Management) – weekly
to annual
- Comprehensive annual checks
of hydraulic engineering facilities
regarding spring flood preparations
involving Rostekhnadzor, the Ministry
of Emergency Situations of Russia
(EMERCOM), municipal, expert
and design organisations.
The tailings dumps management
is performed by highly skilled personnel.
All employees have passed necessary
certifications and OHS training.
Metalloinvest hold regular emergency
response drills regarding potential
incidents at hydraulic engineering
facilities.
APPROACH AND INTERACTION
The Company implements special programmes and projects
solving energy efficiency improvement tasks as part of the
comprehensive development programmes of the enterprises.
It should be noted that all Company’s enterprises underwent
ISO 50011 Energy Management certification and comply with
international energy efficiency requirements.
This activity is coordinated by the Company’s Department
of Energy as part of the regular interaction with business
units and strategic advanced meeting between the energy
departments of the companies.
Striving to improve the energy efficiency of its enterprises,
the Company supports active introduction of advanced solutions
ensuring high energy and resource efficiency in different
economic sectors and uses best practices. Metalloinvest
cooperates with industry ministries and departments on energy
efficiency as a member of multiple communities and associations
including:
- Working groups under the Ministry of Energy of the Russian
Federation and the Federal Anti-Monopoly Service of Russia;
- Association of organisations in the field of gas engine fuel
“National Gas Engine Association”;
- Russian Union of Entrepreneurs and Industrialists;
- Russian Steel Association;
- Community of Energy Consumers.
PROGRAMMES AND PROJECTS
In 2019, Metalloinvest developed and approved
the Comprehensive Programme for Production Energy
Efficiency Improvement. The programme is aimed at reducing
energy consumption and its costs, as well as improving
environmental security and safety of production. The analysis
showed that the programme covers the main solutions available
or implemented today at the production facilities in Russia
and globally.
The implementation of the programme measures will allow
the Company to reduce the cost of energy resources by 5%,
electric power consumption — by 8%, gas — by 8%, fuels
and lubricants — by 50% by 2025
1
.
1 As the base period, the fact of 2017 was taken.
