Download FALCONBRIDGE LIMITED

FALCONBRIDGE LIMITED
ENERGY INTENSITY IMPROVEMENT AND
GREEN HOUSE GAS REDUCTION
ACTION PLAN
2000
FOR SUBMISSION TO
THE VOLUNTARY CHALLENGE REGISTRY
1999 RESULTS
TABLE OF CONTENTS
1.
Executive Summary
2.
Organization Profile
3.
Senior Management Support
3.1 Statement of Endorsement And Policies
3.2 Internal Practices and Management Systems
4.
Base Year Quantification
4.1.
Methodology
4.2.
Quantification
5.
Projection
5.1.
Methodology
5.2.
Quantification
6.
Target Setting
6.1. Targets
6.2. Process for Target Review and Update
7.
Measures to Achieve Targets
7.1
List of Key Activities / Projects
7.2
Estimated Impact of Activities / Projects
8.
Results Achieved
8.1
Current Reporting Year
8.2
Interim Reporting Years
8.3
Verification
8.4
Offsets
9.
Education, Training and Awareness
9.1
Our Corporate Response to Climate Change Issue
9.2
Climate Change and Our Employees
9.3
Climate Change and Our External Contacts
9.4
Our Public Education on Climate Change
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1. Executive Summary
Falconbridge Limited is pleased to submit the Climate Change Action Plan for 20000
with 1999 Results. What follows is a summary of the highlights from this year’s report:
♦ Falconbridge Limited established an new corporation – wide energy intensity
improvement target of 1% per year for the period from 1990 to 2005, as well as a
Carbon Intensity improvement target of 0.5% per annum for the same period .
These targets have been published in the 1999 Report on Sustainable Development
which can accessed through the Falconbridge web-site at www.Falconbridge.com
♦ For the Canadian Divisions, the difference in the Energy Intensity ( MWH /
Tonnes Production ) between 1990 and 1999, indicates an absolute improvement of
9.9 %. Over the period from 1990 to 1999, the energy intensity improvement rate
was .26 %. per annum. At this rate, the projected absolute difference in energy
intensity between 1990 and 2005 is a decrease of -11.46%. The updated target for
the Canadian Operations is a 1% per year improvement in physical energy intensity
for the period of 1990 to 2005. This translates to an absolute improvement of 15%
by 2005 relative to 1990.
♦ The difference in the Carbon Intensity ( Tonnes Equivalent CO2 / Tonnes
Production ) between 1990 and 1999, indicates an absolute improvement of 2.7 %.
However, the rate of change in Carbon Intensity indicated by the trend line for the
period from 1990 to 1999 indicates an increase of + .36% per annum. Therefore the
projected Carbon Intensity in 2005 for the Canadian Divisions is expected to be
- .56% relative to 1990.
♦ The absolute difference in CO2 Equivalent Emissions for the Canadian Divisions
between 1990 and 1999 is + 16.4 %. Over the period from 1990 to 1999 the trend in
CO2 Equivalent Emissions is a rate of increase of + 1.9% per annum. Therefore the
CO2 Equivalent Emissions of the Canadian Divisions in 2005 is projected to be
+ 27.0 % above 1990 levels.
♦ In 1999 the Canadian Divisions implemented Energy Conservation projects that
reduced energy consumption by 21 GigaWattHours. Warren Holmes, the Senior
Vice-President of Canadian Mining became a director on the VCR Board of
Directors and the Chairman of the CIPEC Executive Board. Lauri Gregg
represented Canadian Mining in the Kyoto Issues Tables Process. Falconbridge
Ltd. became a signatory to the Regional Municipality of Sudbury’s GHG Reduction
Program. Falconbridge also participated in an Energy Efficiency Benchmarking
Study and a GHG Cost Curve Analysis sponsored by NRCan.
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Organization Profile
Falconbridge Limited is an international, integrated base metals company committed to
producing quality products for its customers. We are engaged in the exploration,
development, mining, processing, and marketing of metals and minerals. Our primary
Canadian products are nickel, copper, zinc, and cobalt. Other products include silver,
gold, cadmium, indium, and sulphuric acid. The company also processes and recycles
materials from other companies. Falconbridge has Canadian mining and mineral
processing facilities in Sudbury (Sudbury Mining and Smelting Divisions), Timmins
(Kidd Creek Divisions), and the Nunavik Region of Northern Quebec (Raglan). We are
headquartered in Toronto and employ approximately 4000 people in Canada. Our Kidd
Creek Divisions in Timmins produce approximately 120,000 tonnes of copper and
130,000 tonnes of zinc per year. Meanwhile, Sudbury/Raglan Divisions produce
approximately 60,000 tonnes of nickel and 25,000 tonnes of copper per year.
Falconbridge is committed to the Climate Change Voluntary Challenge
program which allows industry to voluntarily participate in and contribute to Canada’s
Climate Change Business Plan and Response to Kyoto. Our contributions include the
following: improvements in energy efficiency, and process efficiency, as well as fuel
switching and Emissions Trading. Results are reported directly to the Voluntary
Challenge Registry and CIPEC (Canadian Industry Program for Energy
Conservation). Falconbridge is committed to a 1% per annum energy intensity (
energy per unit output ) improvement target for the period of 1990 to 2005.
Falconbridge achieved Gold Champion Level Reporter status from the VCR in 1999.
.
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3. Senior Management Support
Senior management support for the Climate Change Voluntary Challenge Program has
existed since the late Frank Pickard, former Falconbridge Limited CEO participated as
one of the business leaders and founding fathers of the voluntary initiative toward
Climate Change. Each year Falconbridge has included a letter of commitment from either
the CEO or the Senior Vice-President responsible for Environment . A Corporate Energy
Management Policy has been developed, and in 1998 Energy was incorporated within the
Corporate Sustainable Development Policy.
3.1
Signed Statement of Endorsement and Policies
A letter of commitment signed by the Senior Vice President for Canadian Mine
Operations and the Vice President Environment, as well as the Energy Management
Policy, and the Sustainable Development Policy are included within this section of the
2000 Falconbridge Submission to the Voluntary Challenge Registry.
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Mr. Robert A. Flemington
President, Canada’s Climate Change Voluntary Challenge & Registry Inc.
116 Lisgar Street, Suite 500
Ottawa, Ontario
K2P 0C2
Dear Mr. Flemington:
Falconbridge Limited supports the Climate Change Voluntary Challenge and Registry
Program as a mechanism with which we in industry can work voluntarily towards
reductions in greenhouse gas emissions. Within the Issues Tables and Kyoto Response
Process, Enhanced Voluntary Measures have been identified as a key contribution that
Canadian industry can make to the national Climate Change Business Plan.
Consequently, we are pleased to participate on the VCR Board of Directors, the MAC
Energy Task Force, the CIPEC Executive Board, and the CIPEC Council as mining
industry leaders. Falconbridge is continuing its efforts to engage its operations in the
improvement of energy efficiency and the reduction of Green House Gas ( GHG )
emissions, as well as encouraging other companies in the mining industry to do the same.
In 1999, we initiated a study to determine the feasibility of displacing a portion of the
diesel-powered generation of electricity at our Raglan operations with wind power. Along
with several members of the mining community we participated in an energy efficiency
benchmarking process and a GHG Reduction Cost Curve Analysis. New targets for
energy intensity and carbon intensity have been established for the 1990 to 2000 period.
Annual results versus these targets, as well as absolute emission data are made public
each year in our Report on Sustainable Development. All in all, activities related to
energy efficiency improvement and GHG emissions reductions reached their highest level
ever in 1999.
Falconbridge is submitting its third VCR Action Plan Update containing 1999 results. .
Again this year Falconbridge is striving to achieve Gold Champion Level Reporter status.
In the 2000 Falconbridge Limited Action Plan with 1999 Results, the energy intensity 9
energy per unit output ) data, trend graphs and energy consumption reduction results have
been updated with information from 1999. Action plans, and consumption reduction
targets for 2000 have been included as well. The updated sections have been italicised for
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easier identification. The trend analysis of estimated CO2 Equivalent emissions per unit
of output for the period from 1990 to 1999 has also been included. Even though our focus
is on specific energy intensity improvement as the most effective means to reduce GHG
emissions, we feel it is important to quantify and track Carbon Intensity ( emissions per
unit output ) as well as absolute GHG emissions in order to better describe our
contributions to the Voluntary Challenge Program. As a result, we have established a
rigorous GHG emissions inventory for each of our divisions.
For the period from 1990 to 1999, the actions taken by the employees in the Canadian
Divisions have resulted in a difference in the Energy Intensity between 1990 and 1999,
that indicates an absolute improvement of 9.9 %. Over the period from 1990 to 1999, the
energy intensity improvement rate was - .26 %. per annum. At this rate, the projected
absolute difference in energy intensity between 1990 and 2005 is a decrease of - 11.46%.
The updated target for the Canadian Operations is a 1% per year improvement in physical
energy intensity for the period of 1990 to 2005. This translates to an absolute
improvement of 15% by 2005 relative to 1990.
We at Falconbridge are committed to participation in the Voluntary Challenge Program,
as well as the national Climate Change Business Plan. Please feel free to contact our
Director of Energy and Technical Services, Mr. Lauri Gregg, if you require more detailed
information about the 2000 VCR Action Plan.
Very truly yours,
W. Warren Holmes
Senior Vice President
Canadian Mine Operations
Robert Telewiak
Vice President
Environment
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FALCONBRIDGE ENERGY MANAGEMENT POLICY
Falconbridge Limited is committed to developing and implementing Energy Management
Systems in order to continually improve operational energy efficiency, optimize energy
procurement processes, and minimize environmental impacts.
To meet these responsibilities, Falconbridge will:
• Implement energy monitoring technology, energy information systems, energy
awareness training, and operational assessment processes.
• Identify and quantify the use of various forms of energy, analyze consumption
patterns, establish reduction targets, and take action to improve energy intensity
through continuous improvements, for all design projects and for all system
modifications at existing operations.
• Ensure the continuity of our business and preserve shareholder value by establishing
strategic energy consumption improvement targets and by implementing energy
procurement risk management strategies.
• Inform and motivate employees at all levels of the organization to participate in energy
consumption reducing actions and to communicate results to internal as well as
external stakeholders.
March
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1998
SUSTAINABLE DEVELOPMENT POLICY
FALCONBRIDGE LIMITED
Sustainable Development is the implementation of practices and policies that contribute to the well-being of
the environment, economy and society to address the needs of customers, suppliers, shareholders,
employees, government, the general public and the communities in which we operate, without
compromising the ability of future generations to meet their own needs.
Falconbridge is committed to sustainable development and will provide the resources necessary to:
• design, construct, operate, decommission and re-assess its operations while promoting continual
improvement in order to meet or surpass applicable environmental, health, hygiene, energy and safety
regulations, laws and company standards;
• implement risk management, pollution prevention and energy efficiency systems and conduct
regular environmental, health, hygiene, safety and emergency response audits;
• ensure that its activities are conducted in a responsible and ethical manner which will help maintain the
long-term sustainability and aesthetic quality of its surroundings;
• acquire scientific knowledge and technologies that can assist in continually improving the safe, efficient
use of Falconbridge's processes and products;
• promote the establishment of responsible standards through active participation with employees,
governments and other stakeholders;
• promote the safe use, reuse, recovery, recycling, transportation and disposal of Falconbridge products
by informing and working with customers, suppliers, industry associations and government agencies;
• facilitate dialogue with stakeholders in order to anticipate and address issues of regional and global
sustainability that are relevant to its business;
• foster the environmental, economic and social well-being of the communities in which it operates;
• promote employee awareness of this policy and enhance their capabilities to implement its objectives;
and
• regularly communicate progress on this policy to interested stakeholders.
These principles will guide Falconbridge’s actions as responsible business stewards, while serving the best
interests of the natural environment upon which we are all dependent.
Øyvind Hushovd
President & CEO
Robert Telewiak
Vice President Environment
March 1999
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3.2
Internal Practices and Management Systems Dealing with
Energy Efficiency and Climate Change
Falconbridge engages in energy management activities in order to improve productivity,
to reduce the environmental impact of the by products from energy use, to reduce the cash
flow out of the organization related to energy purchases, and to ensure that energy
efficient technologies are installed in our mining and metallurgical process areas. Energy
Management is a key focus in the efforts of Falconbridge to maintain a competitive
position in the global market place.
What follows is a summary of the components of the Energy Management System that
have been implemented in the Canadian Divisions.
•
•
•
•
•
•
•
A corporate Energy Management Policy has been established and endorsed by
the President and CEO, and Vice President, Environment.
The need for improved energy efficiency is identified within the Corporate
Sustainable Development Policy. Within the Sustainable Development
Program targets are established for Energy Intensity Improvement, and Carbon
Intensity Improvement.
Energy is identified as a key element within the implementation of the ISO
14001 Environmental Management System and is established as a
Significant Aspect at Falconbridge Dominicana and the Kidd Creek
Metallurgical Operations.
Energy consumption/cost reduction targets are set as part of the yearly
business strategy for each division, and endorsed by the divisional Vice
Presidents.
The position of Director of Energy and Technical Services has been
established as a full time position with the mandate to champion energy
consumption/cost reduction activities, and to represent the company within
CIPEC, as well as participate in the Mining Association of Canada ( MAC )
Energy Conservation Task Force and the Ontario Mining Association Energy
Conservation Committee. A full time Senior Energy Management
Engineer’s position has been created within the Ontario Divisions and
Falconbridge Dominicana.
An Energy Management Champion has been selected within each division.
This person has the part time responsibility of coordinating the activities of
the operational energy management teams, and to develop strategy as part of
an internal Energy Management Strategic Planning Group, as well as
participate in the Ontario Mining Association Energy Conservation
Committee.
Ontario Hydro Energy Conservation Advisors are utilized on a continuous
basis within each division to analyze operational activities, and identify
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•
•
•
•
•
opportunities. From time to time additional consultants are employed to
enhance this activity.
The Ontario Hydro Energy Advisor also provides third party verification of
electricity consumption reductions. Additionally, an independent consultant
has been contracted to fully verify the source data associated with energy
consumption, direct emissions and indirect emissions, as well as the
published annual results.
Procurement practices have been established to ensure that energy efficient
equipment is purchased where possible.
Capital and Maintenance Engineering practices are governed by guidelines
which require energy efficient designs or modifications.
Energy Consumption Monitoring and Control Systems are installed within the
process areas at each division to measure, record and report on the use of
energy.
Energy Management Information and Decision Support Systems are being
developed within each operation.
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4.
Base Year Quantification
4.1
Methodology
•
•
•
•
•
•
•
4.2
A comprehensive energy survey is conducted annually within the three
Canadian divisions in order to collect data about production levels and the
consumption of energy in all forms. The 1990 Baseline was derived from the
database developed using the energy surveys.
Energy use represents approximately 98% of GHG emissions at
Falconbridge. The remaining 2% of GHG emissions are a result of the
carbonate reagents used in mineral processing which emit CO2.
Consequently, the GHG’s emitted by the operations are predominantly CO2
and small quantities of CH4 and N2O. Of the energy consumed 47% results
in indirect CO2 emissions from electricity use, while 53 % results in direct
emissions from fossil fuel and reagent consumption. Energy Intensity and
Carbon Intensity have been selected as the performance factors best suited
to measure energy utilisation improvements, and to stimulate energy
consumption as well as GHG emission reducing actions. Energy intensity
reductions, process efficiency gains, fuel switching and use of the Kyoto
Flexibility Mechanisms represent the means by which GHG emission
reductions can be achieved.
Energy-related emission factors for determining GHG type and quantity were
drawn from the Environment Canada publication ‘Canada’s GHG Inventory –
1997’.
The Environment Canada conversion factor for electricity generation in
Ontario was used to convert electricity use into indirect GHG emissions.
CH4 and N2O have been converted to equivalent CO2 using Global
Warming Potentials based on a 100 year period i.e. multiplication factors of
21 and 310 respectively.
In order to identify the trend in GHG emissions relative to 1990, a
comprehensive GHG Emissions Inventory has been carried out. Absolute
emissions for the base year have been quantified and the trend in Carbon
Intensity has been established for the 1990 to 1998 period.
The baseline will be defined in terms of the integrated data from the Sudbury,
and Kidd Creek Divisions. Raglan did not exist in 1990 and therefore is not
part of the 1990 baseline. Integrated operations include mining, concentrating,
smelting, and refining.
Quantification
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1990 Baseline - Sudbury Division
Facility:
Location:
Reporting Period:
Product Category:
Sudbury Division
Sudbury, Ontario
1990
Nickel - Copper
Activity
Production
Units
Integrated
Nickel
Operations
Resulting in
Smelter
Product
Tonnes of
Nickel
Equivalent
Energy
Intensity
MWH/Tonne
Carbon
Intensity
Tonnes C02E
per Tonne
CO2
Equivalent
Emissions
KiloTonnes
24.84
4.65
232.93
TABLE 1: Base Year Data for Sudbury Divisions
1990 Baseline - Kidd Creek Mining and Metallurgical Divisions
Facility:
Location:
Reporting Period:
Product Category:
Kidd Creek Mining and Metallurgical Divisions
Timmins, Ontario
1990
Copper and Zinc
Activity
Production
Units
Integrated
Nickel
Operations
Resulting in
Smelter
Product
Tonnes of
Nickel
Equivalent
Energy
Intensity
MWH/Tonne
Carbon
Intensity
Tonnes C02
per Tonne
CO2
Equivalent
Emissions
KiloTonnes
9.3
1.69
382.3
TABLE 2: Base Year Data for Kidd Divisions
1990 Baseline - Falconbridge Limited Canadian Divisions
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Facility:
Location:
Reporting Period:
Product Category:
Falconbridge Limited Canadian Divisions
Sudbury and Timmins, Ontario
1990
Nickel, Copper and Zinc
Year
Energy
Intensity
MWH/Tonne
Carbon
Intensity
Tonnes C02
per Tonne
CO2
Equivalent
Emissions
Kilo-Tonnes
1990
12.12
2.23
613.25
TABLE 3: Aggregated Base Year Energy Intensity, Carbon Intensity, and
Equivalent
CO2 Emissions for Canadian Divisions
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GHG
Emissions
Distribution
1990
CO2 Equivalent
Kilo-Tonnes
CO2 – Direct
255.15
CO2 – Indirect
356.28
CH4 – Direct
.14
N2O – Direct
1.68
TOTAL
613.25
TABLE 4: Aggregated Base Year GHG Emissions Distribution for Canadian
Divisions
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5.
Projections
5.1
Methodology
Projections of Energy Intensity, Carbon Intensity and Absolute GHG Emissions are
derived from the extrapolation from the current year’s level at the rate determined
from the trend lines calculated by linear regression for each of the performance
indicators. This approach is consistent with the treatment of variable process systems
in accordance with the principles of Statistical Process Control.
5.2
Quantification
The GHG’s emitted by the operations are predominantly CO2 and small quantities of
CH4 and NO2. Of the energy consumed, 47 % results in indirect CO2 emissions from
electricity use, while 53 % results in direct GHG emissions from fossil fuel and reagent
consumption. On average the mining, mineral processing, smelting and refining
processes and auxiliaries of the Ontario Divisions consume approximately 2000 GWH
of electricity per annum. The sources of direct emissions within the operations include:
♦ the consumption of natural gas for mine air heating, building heating, boilers,
concentrate drying and smelting processes
♦ the consumption of light fuel oil for mine haulage, and power generation for
the Raglan operation in Northern Quebec, where natural gas and electricity
supply infrastructures do not exist
CANADIAN
DIVISIONS
Energy Intensity
MWH/Prod. Tonne
Carbon Intensity
CO2Eq Tonne /
Prod. Tonne
TABLE 5:
1990
1999
2005
% Variance
1990 vs. 2000
12.12
10.919
10.75
- 11.46%
2.2
2.14
2.18
- .56%
Energy Intensity and Carbon Intensity Projections for the Canadian
Divisions
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GHG
Emissions
Distribution
1990
1999
2005
CO2 Equivalent
Kilo-Tonnes
CO2 Equivalent
Kilo-Tonnes
CO2 Equivalent
Kilo-Tonnes
% Variance
1990 vs.2005
CO2 – Direct
255.15
372.8
447.26
+ 75 %
CO2 – Indirect
356.28
334.1
323.8
-9%
CH4 – Direct
.14
.4
.53
+ 279 %
N2O – Direct
1.68
6.39
8.93
+ 432 %
TOTAL
613.25
713.69
780.52
+ 27 %
TABLE 6: Projection of Specific GHG Emissions for the Period 1990 to 2005
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6.
Target Setting
6.1
Targets
Falconbridge has updated its physical energy intensity ( energy consumed per unit of
production ) target to a rate of 1% per year from 1990 to the year 2005 or an absolute
improvement of 15%.
Both the Sudbury Divisions and the Timmins Divisions have included an energy cost
improvement target within their business plans which supports the overall energy
intensity improvement target. Results versus target are reviewed at the divisions on a
quarterly basis.
Energy and carbon intensity targets are made public annually, within the Report on
Sustainable Development.
The results included in the VCR action plan are provided on an annual basis in terms of
energy intensity and carbon intensity beginning in 1990, the baseline year. Performance
versus the improvement target is determined by the trend line which spans the years from
1990 to the current year, as well as the absolute difference between 1990 and the current
year. The rationale for using a trend to measure performance is rooted in the principles of
Statistical Process Control, and the belief that process systems vary naturally around a
mean trend line. For these systems, the use of absolute improvement targets on a year by
year basis can lead to distorted measures of performance, and unrealistic goals. Integrated
mining and metallurgical operations fit into the category of variable process systems
primarily because of the cyclical nature of mine production.
Committed Aggregate Target for the Canadian Divisions:
•
- 1% per Annum decrease in Energy Intensity for the period from 1990 to
2005
~ 10.3 MWH per Tonne
Aggregate Targets for Falconbridge Limited:
•
6.2
- 1% per Annum reduction in Energy Intensity for the period from 1990 to
2005 or
~ 3.75 MWH per Tonne
• -.5% per Annum decrease in Carbon Intensity for the period from 1990 to
2005
~ 2.05 Equivalent CO2 Tonnes per Tonne
• Equivalent CO2 Emissions 6 % Below the 1990 Level by 2010
~ 574 Kilo-Tonnes
Process for Target Review and Update
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The following steps are taken to review progress toward and to update targets:
•
•
•
•
•
•
A comprehensive Annual Survey of All Forms of Energy Use is carried out in order to
determine the consumption patterns and performance versus targets of each Canadian
Division individually and the Canadian Divisions in aggregate. The published survey
is reviewed by all senior management. The survey is the source document for the
analysis of performance and the updating of targets.
Beginning in 1999 a comprehensive GHG Inventory is being carried out in
conjunction with the Energy Survey. GHG Emission Reduction Targets will be
established and reviewed using the Inventory.
Energy Intensity Improvement, Carbon Intensity Improvement, and GHG Reduction
Targets are reviewed and updated annually as part of the Sustainable Development
Process.
Annual Progress Reports versus targets are made to the VCR and placed in the Public
Domain on the VCR web-site.
The performance of every division versus the previous year’s targets as well as the
Energy/GHG Reduction Action Plans for the upcoming year are reviewed by the CEO
and a Senior Management Team at a special meeting annually.
Divisional Management Teams review their performance with respect to energy cost
reduction targets at either monthly or quarterly reporting periods.
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7.
Measures to Achieve Targets
7.1
List and Estimated Impact of Key Activities / Projects
Sudbury Nickel Divisions
The indirect ( electricity ) energy consumption reduction target for 2000 is 18 gigawatt-hours (GWH) or a reduction of 4.3 Kilo-Tonnes of Equivalent CO2 . The direct
energy reduction target is 6.2 GWH of natural gas or a reduction of 1 Kilo-Tonne of
Equivalent CO2 .
The measures to be taken to reduce energy consumption include the following:
•
•
•
•
•
•
•
Further Development of an Aggregated Electricity and Natural Gas
Demand Management System
Rationalization of compressed air and water supply systems at the Sudbury
Smelter Division
Further Installations of Automated Natural Gas Metering
Rationalization of Mine Ventilation and Compressed Air Systems
Further Reduction of Natural Gas Consumption for Mine Air Heating
Rationalization of Faser and Strathcona Mine Operations Including
Hoisting and Ventilation.
Reviewing proposals for wind power, and baseline energy audit at Raglan.
Kidd Creek Copper/Zinc Divisions
The energy consumption reduction target for 2000 is 12 GWH or 2 Kilo-Tonnes of
Equivalent CO2 Emissions.
The measures to be taken to reduce energy consumption include the following:
•
•
•
•
•
•
•
8.
Mine Energy Management System and Control Center
Increased Heat Recovery from Roasters
Oxygen Plant Filtration Improvements
Mine Auxiliary Ventilation Automation
Concentrator Grinding and Crushing Rationalization
Compressed Air Leak Elimination in the Mine, as well as Mine Compressor
Controls Upgrade.
Increased Current Density in Copper Refinery
Results Achieved
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8.1
Current Reporting Year
Sudbury Nickel Divisions
Energy consumption increased by + .96% in 1999 while production increased by
+
10.3% relative to 1998 primarily as a result of increasing production from the Raglan
Operations. The Energy Intensity has decreased by - 4.8 % relative to 1998. The
difference in the Energy Intensity between 1990 and 1999, indicates an absolute
reduction of -16 %. Over the period from 1990 to 1999, the energy intensity
improvement rate was .97 %. per annum. At this rate, the projected absolute difference
in energy intensity between 1990 and 2005 is a decrease of –21.8%.
In 1999 the Sudbury Divisions of Falconbridge Limited completed energy
conservation projects which addressed system and process technology modifications, as
well as changes to operating practices. The result is 12.3 Gwh’s of annualized
electricity consumption reductions, or 2.1 Kilo-tonne’s of indirect GHG emissions
reductions. The reductions in electricity use were verified independently by an Ontario
Hydro Energy Specialist. Natural Gas consumption reductions totalling 3.2 GWH
resulted in a .6 Kilo-Tonnes decrease of direct GHG emissions.
The Mine Ventilation Automation Project was completed in 1999. This undertaking
makes use of sophisticated underground communications and control technologies to
control main and auxiliary ventilation fans, as well as to monitor air quality and
vehicle location. The first phase of the project has reduced electricity consumption in
1999 by approximately 7 GWH. The potential total reduction in energy consumption is
25 Gwh’s p. a. This equates to a 4.7 Kilo-tonne reduction of indirect GHG emissions,
and an annualized saving of $1.4 million. There will also be a .72 Kilo-tonne
reduction in direct GHG emissions as result of diminished natural gas use for mine air
heating.
The remaining 5 GWH of reductions in electricity consumption were a result of blower
rationalization and process equipment efficiency improvements resulting in less
compressed air consumption, as well as potable and waste water system improvements.
Societe Miniere Raglan Du Quebec Ltee.
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Societe Miniere Raglan ( Raglan ) completed its first full year of production in 1999.
In 2000 Raglan expects to reach full production. Once production stabilizes, in either
2000 or 2001 a baseline for energy intensity, carbon intensity and absolute CO2
Equivalent emissions will be established. Until that time, and because Raglan’s
production is processed in Sudbury, the energy consumption and emissions will be
aggregated with Sudbury’s results.
S U D B U R Y + R A G L A N E N E R G Y IN T E N S IT Y
MWH PER TONNE
30
25
20
15
y = -0. 214 9x + 22 .183
10
5
0
19 90
19 91
19 92
19 93
19 94
19 95
19 96
19 97
19 98
YEA R
E n ergy Int ens ity
Lin ear (E n ergy Inte ns ity )
FIGURE 1: Energy Intensity Sudbury/Raglan Divisions
Kidd Creek Mining and Metallurgical Divisions
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19 99
The Kidd Creek results continue to reflect the aggregation of both the Mining and
Metallurgical divisions. Energy consumption decreased by - 3.4% in 1999 while
production decreased by - 5.6% relative to 1998. Consequently, the Energy Intensity
increased by + 2.4 % relative to 1998. The difference in the Energy Intensity between
1990 and 1999 indicates an absolute improvement of 16.2 %. Over the period from
1990 to 1999, the energy intensity improvement rate was .9 %. per annum. At this rate,
the projected absolute difference in energy intensity between 1990 and 2005 is a
decrease of – 21.6%.
Energy conservation actions addressing mine ventilation, compressed air, refinery
current efficiency and concentrator system rationalization resulted in a 8.5 Gwh
reduction in electrical energy consumption. These reductions in electricity use were
verified independently by an Ontario Hydro Energy Specialist.
ENERGY INTENSITY KIDD CREEK DIVISIONS
12
MWH/TONNE
11
10
9
8
7
y = -0.0774x + 8.7158
6
5
1990
1991
1992
1993
1994
1995
1996
YEAR
FIGURE 2: Energy Intensity Kidd Creek Divisions
Falconbridge Limited - Canadian Divisions
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1997
1998
1999
Facility:
Location:
Reporting Period:
Product Category:
Falconbridge Limited Canadian Divisions
Sudbury Timmins, Ontario and Raglan, Quebec
1990 to 1999
Nickel, Copper and Zinc
The Energy Intensity, Carbon Intensity, and Total Equivalent CO2 Emissions are given
in Figures 4 to 6. A comparison of Energy Intensity, Carbon Intensity, and Equivalent
CO2 Emissions is given in Table 7. A comparison of specific GHG Emissions for the
period of 1990 to 1999 is given in Table 8.
Year
Energy
Intensity
MWH/Tonne
Carbon
Intensity
Tonnes C02
per Tonne
CO2
Equivalent
Emissions
KiloTonnes
1990
12.12
2.23
613.25
1999
10.92
2.16
713.69
Note: The CO2 emissions are related to energy and carbonate reagent
consumption. The results include emissions from electricity use as derived
by applying the Environment Canada conversion factor for electricity
generation in Ontario.
TABLE 7: 1999 vs. 1990 Comparison of Energy Intensity, Carbon Intensity, and
Equivalent CO2 Emissions
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GHG
Emissions
Distribution
1990
1999
CO2 Equivalent
Kilo-Tonnes
CO2 Equivalent
Kilo-Tonnes
% Variance
1990 vs.1999
CO2 – Direct
255.15
372.8
+ 46 %
CO2 – Indirect
356.28
334.1
-6%
CH4 – Direct
.14
.4
+ 186 %
N2O – Direct
1.68
6.39
+ 280 %
TOTAL
613.25
713.69
+ 16.4 %
TABLE 8: Comparison of 1999 vs. 1990 GHG Emissions by Specific Type
Sudbury, Raglan, and Kidd Creek Operations participate in the Voluntary Challenge
Program on Climate and contribute GHG emissions reductions by improving
combined Energy Intensity Performance. For the Canadian Divisions, the difference
in the Energy Intensity ( MWH / Tonnes Production ) between 1990 and 1999,
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indicates an absolute improvement of -9.9 %. Over the period from 1990 to 1999, the
energy intensity improvement rate was -.26 %. per annum. At this rate, the projected
absolute difference in energy intensity between 1990 and 2005 is a decrease of 11.46%. The updated target for the Canadian Operations is a -1% per year
improvement in physical energy intensity for the period of 1990 to 2005. This translates
to an absolute improvement of -15% by 2005 relative to 1990.
ENERGY INTENSITY - CANADIAN DIVISIONS
MWH/TONNE
13
12
11
10
9
y = -0.0282x + 10.825
8
1990
1991
1992
1993
1994
1995
1996
1997
YEAR
MWH per Tonne
Linear (MWH per Tonne)
FIGURE 4: Energy Intensity – Canadian Divisions
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1998
1999
The difference in the Carbon Intensity ( Tonnes Equivalent CO2 / Tonnes Production )
between 1990 and 1999, indicates an absolute improvement of -2.7 %. However, the
rate of change in Carbon intensity indicated by the trend line for the period from 1990
to 1999 indicates an increase of + .36% per annum. Therefore the projected Carbon
Intensity in 2005 for the Canadian Divisions is expected to be
- .56% relative to
1990.
Tonne CO2 /
Tonne Prod
CANADIAN DIVISIONS - CARBON INTENSITY
2.50
2.25
2.00
1.75
1.50
y = 0.0068x + 1.9049
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
YEAR
FIGURE 5: Carbon Intensity Canadian Divisions
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The absolute difference in CO2 Equivalent Emissions for the Canadian Divisions
between 1990 and 1999 is + 16.4 %. Over the period from 1990 to 1999 the trend in
CO2 Equivalent Emissions is a rate of increase of + 1.9% per annum. Therefore the
CO2 Equivalent Emissions of the Canadian Divisions in 2005 is projected to be
+ 27.0% above 1990 levels. Even though there has been a reduction in indirect
emissions related to electricity use, the subsequent shift to natural gas for heating and
process applications within the Ontario Divisions has increased the levels of direct
CO2, CH4, and N2O emissions. The Raglan Operations in Quebec are solely dependant
on diesel fuel for power generation. Thus with the start-up of production in 1998, there
has been a stepwise augmentation of direct GHG Emissions.
CO2 Eq KTONNES
CO2 Equiv KTONNES EMISSIONS - CANADIAN DIVISIONS
750.000
700.000
y = 11.122x + 560.3
650.000
600.000
550.000
500.000
1990
1991
1992
1993
1994
1995
1996
1997
1998
YEAR
CO2 Equiv TONNES
FIGURE 6: Absolute CO2 Emissions
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Linear (CO2 Equiv TONNES)
1999
9.
Education, Training and Awareness
9.1
Our Corporate Response to Climate Change
Falconbridge Limited supports the Climate Change Voluntary Challenge and Registry
Program as a mechanism with which we in industry, and all sectors can work
voluntarily towards reductions in greenhouse gas emissions. Voluntary measures will
play an important role in Canada’s response to Climate Change. Consequently, we are
pleased to participate on the VCR Board of Directors, the MAC Energy Task Force, the
OMA Energy Committee, the CIPEC Executive Board, and the CIPEC Council as
mining industry leaders. Senior Managers from Falconbridge Managers are actively
involved in engaging other members of the Mining and Manufacturing in Canada in
Green House Gas (GHG) emission reducing actions like the specific energy intensity
improvement strategy, fuel switching and emissions trading. Falconbridge will also
continue to contribute to the national Climate Change Business Plan and response
strategy, as well as the development of a domestic emissions trading process.
We continue to develop awareness among our employees about Climate Change and
Energy Efficiency by involving them in energy efficiency benchmarking studies,
energy consumption/GHG reduction analyses and educational activities. In 1999, the
Mines and Concentrators at the Sudbury and Timmins Operations participated in an
Energy Efficiency benchmarking study along with 10 other national and international
mining companies. Our Kidd Creek Divisions also participated in a GHG Reduction
Cost Curve analysis along with 2 other mining companies. Both of these projects
engaged operations personnel and raised the awareness of impact of climate change at
the operational level, as well as identifying opportunities for improvement.
Additionally, the Pembina Institute was contracted to provide senior managers with a
high level overview of the potential impact of national and international GHG
reductions measures on Falconbridge.
9.2
Climate Change and Our Employees
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Falconbridge views the motivation of its employees to take energy conserving actions
through education and awareness initiatives as its key response to Climate Change. The
following summary lists the energy awareness activities that take place within the
corporation.
• Annually, the President and CEO, and Vice President, Environment attend an
•
•
•
•
9.3
Energy Day involving each Canadian division where they promote energy
conservation, listen to success stories from the current period, and review
plans for the upcoming year.
Success stories are reported on a regular basis in internal newspapers and
bulletins, as well as externally in national energy efficiency publications.
Campaigns focused on specific energy conserving actions, such as the
elimination of compressed air leaks and the optimisation of underground
ventilation are carried out on a regular basis. These campaigns are often
highlighted by colourful posters advertising the event.
Employees from operations are engaged in Energy Conservation Working
Groups and make presentations regarding energy efficiency improvements in
their respective areas.
Employees attend energy management training conducted by the electricity
and natural gas utilities, the Canadian Institute for Energy Efficiency Training
( CIEET ), Natural Resources Canada, and other consultants as deemed
necessary.
Climate Change and Our External Contacts
The Falconbridge Report on Sustainable Development and VCR Climate Change
Action Plan are our primary means of communicating to all of our external
stakeholders and the communities with which we coexist about Climate Change and
about the role Falconbridge will play in the national/global reduction of GHG
Emissions. The first Sustainable Development Report was published in 1999 and
widely distributed. It brought praise from our customers, suppliers, communities and
shareholders as well as our employees. The report will be updated every year to contain
the most current information regarding Energy Intensity Performance, Carbon
Intensity Performance, and Emissions Performance, as well as quantities and types of
GHG’s emitted.
The Sustainable Development Report is available on the Falconbridge Limited web-site
@ www.falconbridge.com
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9.4
Our Public Education on Climate Change
The Falconbridge Report on Sustainable Development Report has become a key
vehicle for Public Outreach. The report states our energy efficiency improvement and
GHG emission targets, as well as energy consumption and emissions results. It will be
published annually and made available on the Falconbridge web-site. Similarly, are
Climate Change Action Plan results are described in the VCR Action Plan and made
public on the VCR web-site. Both reports have been extremely well received and are
being referenced on a frequent basis. Additionally, Falconbridge will continue to
participate in committees or processes at the Federal and Provincial Level which have
a focus on public education and action regarding Climate Change. For example
Falconbridge will continue to contribute to the development of National Business Plan
on Climate Change and is currently a member of the Ontario Energy Minister’s
Environmental Transition Committee.
Falconbridge is using its memberships in MAC, OMA, CIPEC and AREA as vehicles
to stimulate the Public Outreach activities of these organizations with respect to
Climate Change.
Falconbridge is also working with its partner communities to begin the development of
community awareness about the Climate Change issue. We have become a signatory of
the Regional Municipality of Sudbury’s GHG Reduction Action Plan. Operations
personnel in Sudbury are participating in the implementation of the program and the
development of public awareness.
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