Environment

AMG is committed to achieving the highest standards of safety and environmental conduct at all of its manufacturing facilities, and producing materials that help its customers to minimize negative environmental impact. Two aspects of sustainable development remain central to AMG’s business. The first involves servicing the green economy, acting as a key link in the supply chain for the solar, nuclear, advanced materials and recycling industries, each of which will play a vital role in addressing the ongoing challenges of climate change, waste reduction and pollution elimination. At the same time, AMG is committed to measuring and minimizing the environmental footprint associated with its own manufacturing operations.

More details on key environmental aspects are found in the sections below:

resource efficiency & recycling

The use of resources varies between AMG business units, ranging from those that locally mine or purchase primary raw materials to produce metals, alloys and inorganic chemicals, to those that produce metals and alloys from secondary, recycled resources, to those that provide technology and engineering services. AMG resource usage data comprise raw materials, associated process materials, semi-manufactured goods and parts and packaging, by weight.

Given that AMG Engineering predominantly provides furnace technology and engineering services, including furnace assembly operations and heat treatment services, this segment utilizes relatively limited amounts of resources. Resources used are mainly complex component parts for furnaces, which are routinely measured in units rather than by mass. Unlike the chemicals and alloys business units, this means only limited data are available on resource mass.

GRI Indicator Description Units AMG Critical Materials AMG Engineering AMG Group
      2016 2017 2016 2017 2016 2017
301-2 Recycled Raw Materials % 10 6 0 0 10 6

energy consumption

Energy remains a major area of focus for AMG for both environmental and economic reasons. In particular, high temperature metallurgical processes and mining operations utilized in AMG Critical Materials are energy intensive.

The two most significant energy carriers are electricity and natural gas, although other fuels and energy sources are captured in the data we share.

The reported energy usage for AMG Critical Materials was marginally higher in 2017 compared to 2016, increasing from 3,130 terajoules (TJ) in 2016 to 3,234 TJ in 2017. Direct energy usage was 727 TJ and indirect was 2,507 TJ. In comparison to the above, the energy used by low-energy heat treatment processes utilized by AMG Engineering remains low. The segment used 159 TJ in 2017, 20% lower than in 2016 (192 TJ). Indirect energy, in the form of electricity, accounted for 153 TJ, while direct energy use, primarily through natural gas, totaled 6 TJ. Across AMG, the split between renewable and non-renewable indirect energy sources is difficult to determine since utilities do not generally publish this information. However, AMG does generate its own renewable energy. In 2017, AMG’s hydroelectric generating facility near São João del Rei, Brazil, generated 18,315 gigajoules (5,088 MWh). Additionally, AMG Vanadium’s solar power system generated 635 gigajoules (176 MWh) in 2017.

GRI Indicator Description Units AMG Critical Materials AMG Engineering AMG Group
      2016 2017 2016 2017 2016 2017
302-1 Direct Energy Consumption TJ 765 727 6 6 771 733
302-2 Indirect Energy Consumption TJ 2,365 2,507 192 159 2,557 2,666

Water consumption

Water is essential to many manufacturing processes and is used by AMG primarily for non-contact, evaporative or singlepass cooling purposes, although a small number of AMG facilities do use wet chemical processes to produce metal oxides and other chemicals. In addition, mining operations can utilize water from mine dewatering or for ore processing. Water utilized for cooling, processing and sanitation is reported by AMG facilities.

Reported water use for AMG Critical Materials was lower in 2017 at 4,291,000 cubic meters (a 2% decrease). AMG Engineering’s water consumption was 90,742 cubic meters during 2017, far below that of 2016 (100,800 cubic meters). AMG Critical Materials has its largest water use at the mine sites in Brazil, Germany and Sri Lanka, and the silicon metal production plant in Germany. Of these, the mine in Nazareno, Brazil, remains the largest user with 2,321,000 cubic meters consumed in 2017, a 7% decrease from 2016, resulting from process water recycling and improved measurement.

GRI Indicator Description Units AMG Critical Materials AMG Engineering AMG Group
      2016 2017 2016 2017 2016 2017
303-1 Water Consumption ’000 cubic meters 4,225 4,291 NA NA 4,225 4,291

climate change

AMG facilities utilize processes that are associated with both direct and indirect greenhouse gas (GHG) emissions, and both types are reported here. Electricity used for the generation of heat for metallurgical processing has been, and remains, the most significant source of GHG emissions for AMG. This electricity use gives rise to indirect GHG emissions of carbon dioxide equivalent (CO2e), which are dependent on the nature of its generation. Whenever possible, emissions have been calculated using up-to-date emission factors available from the electricity supplier, the local environmental agency, or the GHG protocol. Indirect emissions are defined as those emissions generated by sources outside of AMG’s control, but where AMG ultimately uses the energy.

Direct GHG emissions result primarily from the combustion of carbon-containing materials often as part of the metallurgical process, such as using coke as a reductant, but also for the generation of heat, such as burning natural gas in a boiler. Other GHGs occurring from processes other than combustion, such as hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride, are minimal for the AMG business units, but are included if relevant.

AMG Critical Materials’ GHG emissions were higher in 2017 at 612,000 mt of CO2e (546,000 mt in 2016). 60% of these emissions are attributed to indirect sources (electricity). Emissions remain dominated by the silicon metal production activities which account for 388,000 mt of CO2e (approximately 6.34 kg CO2e per kg silicon metal produced). This activity also dominates AMG’s overall GHG emissions, accounting for 68% of total group emissions.

AMG Engineering GHG emissions in 2017 were 27,000 mt, a decrease from 33,000 mt in 2016. 99% of these emissions are indirect and associated with electricity usage. AMG provides a complex mix of products and services, and it has become clear that year-on-year comparisons are difficult, as product mix varies. GHG intensity is therefore defined on the basis of revenue rather than, for example, mt of product normalized to a revenue basis. AMG Critical Materials emitted 612,000 mt CO2e, with revenue of $814.0 million, equivalent to 751 mt CO2e per million $ revenue. AMG Engineering generated 26,000 mt CO2e and $245.0 million in revenue, or 102 mt CO2e per million $ revenue. This wide range reflects the diversity of AMG but also guides focus on reduction opportunities. For AMG as a whole in 2017, GHG emissions were 639,000 mt, up 10% from 579,000 mt in 2016. Revenue was $1,059 million, giving a GHG intensity of 604 mt per million $ revenue, an increase of 1% from 2016.

GRI Indicator Description Units AMG Critical Materials AMG Engineering AMG Group
      2016 2017 2016 2017 2016 2017
305-1 CO2 Equivalent Emissions mt 546,000 612,000 33,000 27,000 579,000 639,000

air & wastewater emissions

Emissions to Air

The emissions of ozone-depleting substances remain de minimis for AMG. AMG Engineering also has de minimis air emissions for other pollutants, resulting from small sources such as heating and hot water boilers. AMG Critical Materials’ production facilities do have some other air emissions, including SOx (629 mt), NOx (123 mt) and particulate materials (911 mt). Data are only available for regulated sources where measurements have been made.

Emissions to Water & Spills

AMG facilities continue to maintain records of the volume of aqueous effluents, including process water and non-sanitary sewer discharges to local water courses. Clean water (typically freshwater used for cooling purposes that has not been affected in the process) is included in the figures given below. Chemical analysis of the effluent is utilized to determine the total mass of primary constituents of the water emissions.

In 2017, the total water disposed to water courses by AMG Critical Materials equaled 2,984,000 cubic meters, compared to 3,257,000 cubic meters, in 2016. This decrease is attributed to improvements in efficiencies at the AMG Mineração mine, production levels and product mix. Of the total amount, 1,629,000 cubic meters of water were discharged to the same water body from which it was drawn at the mine site in Brazil, a 17% reduction from 2016.

After mining activities, most of AMG Critical Materials’ water is used for cooling purposes and therefore produces clean water discharges, and some of the wet chemical processes generate aqueous waste streams. This included cooling water used by the silicon metal furnaces as well as mine water from dewatering pumps. In several locations, mine water is utilized for process water before final discharge.

AMG Engineering utilizes minimal water for non-contact, closed-cycle cooling purposes, and the discharges are therefore clean water and not considered material to this report. The only significant water discharge of non-contact cooling water takes place at the site in Michigan, USA (30,000 cubic meters in 2017). In 2017, there were no significant spills (defined as one which would affect the Company’s financial statements because of the ensuing liability or would be recorded as a spill) of tailings or other process materials at any AMG site.

GRI Indicator Description Units AMG Critical Materials AMG Engineering AMG Group
      2016 2017 2016 2017 2016 2017
305-7 SOEmissions mt 735 629 0 0 735 629
305-7 NOEmissions mt 119 123 0 0 119 123
305-7 Particulates Discharged to Air mt 802 911 0 0 802 911

waste disposal

Detailed information was collected in 2017 for waste streams generated by AMG, along with documentation of their recycling or disposal method. AMG continues to minimize waste streams by avoiding generation, increasing reuse and recycling and minimizing landfill disposal. Landfill is a last resort. Wastes as defined here encompass materials not purposefully produced for sale and with no commercial value.

The total landfill or incineration disposal for AMG Critical Materials was 25,987 mt, an increase of 34% over 2016 (19,356 mt). 93% of these materials (24,240 mt) were nonhazardous, with the remaining 1,793 mt disposed to licensed hazardous waste landfills. The waste produced by AMG Engineering is much different in composition, and much smaller in volume. Just 128 mt were disposed to landfills in 2017 (193 mt in 2016), composed mainly of general waste, contaminated oil and metals that could not readily be recycled, and almost no hazardous waste. Overall, the Company disposed of 26,370 mt of waste to landfills or incineration in 2017 compared to 19,550 mt in 2016. Hazardous waste accounted for 16% of the total.

GRI Indicator Description Units AMG Critical Materials AMG Engineering AMG Group
      2016 2017 2016 2017 2016 2017
306-1 Metals Discharged kg 712 838 0 0 712 838
306-2 Hazardous Waste
(Including Recycled)
mt 5,730 4,023 153 96 5,884 4,119
306-2  Non-Hazardous Waste
(Including Recycled)
mt 27,591 39,579  217  265  27,808  39,845
306-2 Percent of Waste Recycled  38 30 23 29 37 30
306-2  Waste Disposed to Landfill  mt   19,356 25,994  193  377  19,549  26,371
306-3  Spills  L 0 0 0
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