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ACTIVITY REPORT 2018

2 CONTENTS

Foreword from IMA-Europe President Catherine Delfaux and Director General Roger Doome

Health and safety at the core of IMA-Europe’s priorities

A sustainable supply of industrial minerals as an enabler of stronger value chains

CONTENTS

06 BACKGROUND

07 ACTIVITIES

07 Zero Injury Target Campaign & Safety statistics

08 Worker health: Respirable Crystalline Silica (RCS)

09 TiO2 and Poorly

Soluble Low Toxicity Substances

10 LOOKING FORWARD: OUR VISION FOR THE FUTURE OF HEALTH AND SAFETY

12 BACKGROUND

13 ACTIVITIES

13 Re-industrialisation agenda

14 Sustainability and the SDGs

15 Industrial minerals in the circular economy

16 LOOKING FORWARD: OUR VISION FOR THE FUTURE OF SUSTAINABLE SUPPLY

04 05 11

FOREWORD CHAPTER 1 CHAPTER 2

3IMA-EUROPE ACTIVITY REPORT 2018

IMA-Europe paves the way towards industry competitiveness in the fields of energy and climate change

In a globalised economy, IMA-Europe is looking beyond the EU

Industrial minerals in a nutshell: key facts and figures

18 BACKGROUND

19 ACTIVITIES

19 The EU ETS and carbon leakage

20 LOOKING FORWARD: OUR VISION FOR THE FUTURE OF COMPETITIVENESS IN ENERGY AND CLIMATE CHANGE

28 KEY FACTS AND FIGURES

30 IMA-EUROPE’S MISSION, VISION AND VALUES

22 BACKGROUND

23 ACTIVITIES

23 IMAGINe conference 2018

24 EU - Latin America: Mineral Extraction Trade Show (METS) in Madrid (Spain)

25 International Lime Association (ILA) Conference

26 LOOKING FORWARD: OUR VISION FOR THE FUTURE OF IMA-EUROPE IN THE GLOBAL ECONOMY

17 21 27 31

CHAPTER 3 CHAPTER 4 CHAPTER 5 OUR TEAM

4 FOREWORD

The industrial minerals industry continues to make a substantial contribution to the European economy, providing jobs, and resources at the beginning of a supply chain that ends in the hands of millions of European citizens every day. 2018 brings some new opportunities but also emerging challenges that the sector has successfully embraced.

We have made strides on health and safety, continuing data collection to assist policy-making, implementing voluntary codes beyond regulatory requirements, and developing tools to help our member companies better protect the safety and health of their workers, and communicate on risks. Throughout 2018 we have supported our members and the social dialogue partners of the European Network on Silica (NEPSI) to communicate around the inclusion of respirable crystalline silica in the updated carcinogens and mutagens directive. We developed the ‘Safe Silica’ campaign to inform stakeholders, including a White Paper and public information website at safesilica.eu. This work was given official recognition by EU Authorities.

We have engaged with the European re-industrialisation agenda through our membership of Industry4Europe – joining the coalition of 133 sector organisations from across the EU calling for stronger support for European industry.

Sustainability being key in today’s political agenda, we have documented our industry’s contributions to the Sustainable Developments Goals (SDGs) through our sustainability report, and the publication of over 200 sustainability case studies from our member companies. We are also doing our part in the move towards circular economy – producing a report on the contribution of our industry in this area, and updating the performance data of mineral recycling.

And we have worked with the European Commission across multiple topics, including reaching a fair compromise for the energy intensive industry on the EU Emissions Trade Scheme (ETS), and helping to spread best practices to other parts of the world, including through the Industrial Minerals Associations Global Innovative Network (IMAGINe) conference.

As we enter 2019 our journey continues and we commit to:

• pursue and boost our initiative for zero accidents,

• collect more robust data to support our advocacy and assist policy making,

• further engage on the possible knock-on effects of the EU’s titanium dioxide proposed classification, and develop new product stewardship initiatives to accompany our minerals through their complete value chains up to the end consumers

• continue our work with the industry4europe coalition, and continue to invest in research and development to deliver innovative products to society while reducing our environmental footprint.

• carry on the sharing of best practices and increase co-operation with industry counterparts in the EU and in other parts of the world.

We are starting with strong fundamentals after a successful 2018, and look forward to working with you to continue driving progress on each of these opportunities and challenges in 2019.

On behalf of everyone at IMA-Europe, we wish you a safe, successful and prosperous 2019.

FOREWORD

Catherine DelfauxPresident

Roger DoomeDirector General

Health and safety at the core of IMA-Europe’s priorities

HEALTH AND SAFETY - KEY HIGHLIGHTS

Health and safety is a never-ending journey: That’s why we continue to implement the Zero Injury Target campaign, gather data on potentially harmful dust and work with partners to protect the health and safety of our workers, customers and communities.

Our data helps policymakers: Providing data and insights to the European Commission and national governments helps them understand, categorise and manage risks in our industry.

No bargaining on health and safety: This is an entirely non-competitive field for our industry.

CHAPTER 1

6

As a sector which operates in heavy industry and challenging settings, health and safety is our absolute priority. Without our workers, customers and communities, we would not exist – so all need to be protected. As an industry we are clear that there is no bargaining on health and safety, and for many years our members have agreed that this is a completely non-competitive sphere.

Health and safety are also not absolutes, and one can never say they have been “achieved”. Instead, they represent a never-ending journey. That is why we share information and data across the industry, seeking to find new and better ways to ensure the health and safety of our people, customers and communities.

Our efforts are paying off, and we have made significant improvements over the past five years. However, we know there is always more to do, which is why we have set ourselves a Zero Injury Target for safety across the industry, and continue to invest heavily in projects to safeguard workers from occupational health hazards. It is also why as an industry we go beyond legal requirements on health and safety, and continue to develop and implement voluntary codes of conduct across issues.

BACKGROUND

CHAPTER 1: HEALTH AND SAFETY AT THE CORE OF IMA-EUROPE’S PRIORITIES

7

IMA-EUROPE ACCIDENTS STATISTICS 2010-2017Based on Lost-time incidents frequency rate (LTIFR)

In 2010, IMA-Europe conducted a review of health and safety statistics across our industry. Our sense was that we were doing well on health and safety, but the results showed that in reality, we were not - our accident rate was above the expected average, and we knew we had to do better.

As a result of this finding we implemented the Zero Injury Target strategy. This is built on the four pillars outlined below.

Since the launch of the strategy, we have witnessed strong positive results, with the number of accidents halving over the period 2010-2018. However, this is still too high, and we continue on the journey by developing and sharing best practices across the sector. 2018 ACTIVITIES

A Safety Executive Roundtable was organised in Q4 2017 – Q1 2018, to discuss and share best practices in safety, and discuss how company leadership can instil the importance of safety across their organisations. The Roundtable focused on a few successful companies’ strategies, with the main goal of exchanging successful solutions for the benefit and inspiration of all IMA member companies. A specific session was dedicated to leadership and behavioural aspects. At the end of January 2018, the learnings of this interesting workshop were shared though a webinar, well attended by member company representatives.

The 2018 IMA-Europe Safety Award was granted to Sibelco for their safe and innovative traffic management system at their Arcos site in Spain. This involved reorganising traffic routes at the site, and building in pedestrianised areas to ensure that trucks, lorries and other vehicles are operating away from where people are on foot. The scheme reduced traffic incidents at the site, and acts as a blueprint for how heavy traffic at industrial sites can be managed safely.

ACTIVITIES PLANNED

IMA-Europe has brought forward the 2018 safety data collection process to begin in January 2019. This will allow learnings to be identified and shared more quickly amongst member companies.

ZERO INJURY TARGET CAMPAIGN & SAFETY STATISTICS

ACTIVITIES

IMA-EUROPE ACTIVITY REPORT 2018

Obtaining commitment from member company leaders;

Reinforcing data collection across the industry;

Identifying learnings and sharing them across companies;

Organising the IMA-Europe Safety Awards to further embed the culture of safety across our members.

1

2

3

4

2010 2011 2012 2013 2014 2015 2016 2017

TARGET ZONE 0-2

13.5

12.3

9.989.36

8.26

8.65

7.166.98

Reporting year

LTIF

Rs

8

WORKER HEALTH: RESPIRABLE CRYSTALLINE SILICA (RCS)

Crystalline silica is a mineral, and a vital ingredient in many products of our daily life. In everyday contexts, crystalline silica is safe.

However, in industrial workplaces, where materials containing crystalline silica are crushed, ground, drilled, or used in similar processes, a very fine dust is produced, known as Respirable Crystalline Silica or RCS. When high levels of RCS dust are inhaled into the lungs on a regular basis over many years, it can cause severe lung diseases.

This risk has been understood for many years, and as an industry we continue to take it extremely seriously. Thankfully, safe practices exist to manage the risk to workers who may be exposed. To ensure continued reinforcement and evolution of these best practices, IMA-Europe is a signatory to, and secretariat for, the European Network for Silica (NEPSI) – a platform who negotiated a social dialogue agreement between companies and trade unions on how best to manage worker health and safety in this area.

NEPSI best practices are complemented by data gathered through IMA-Europe’s Dust Monitoring Programme, which analyses and disseminates data on RCS exposure across the industry. This unique, entirely voluntary, programme comprises over 32,000 individual measurements, and has been commended by the European Commission.

2018 ACTIVITIES

In early 2018, RCS was included in the updated EU Carcinogens and Mutagens Directive (CMD). This was welcomed by the industry, and IMA-Europe’s Dust Monitoring Programme data helped policy makers determine the appropriate threshold for the new legal RCS exposure limit.

The updated CMD has impacted IMA-Europe’s work in several areas. First, in our role as NEPSI secretariat, we were delighted to see that the updated CMD text recognises NEPSI as a model for effective employer-employee cooperation on managing risks to worker health. The NEPSI model is undoubtedly of value and will continue to do good work in the future.

Second, we developed an RCS communications campaign to complement the updated Directive. Entitled Safe Silica, the campaign seeks to both support member companies in how they talk about RCS, and educate and reassure external audiences that health effects from RCS exposure are solely an occupational hazard. The campaign was launched in mid-2018, including a Safe Silica messaging pack for IMA-Europe members to adapt to their context and market, the development of an industry white paper on RCS, and the launch of a new website at safesilica.eu. The Safe Silica campaign was cited by the European Agency for Safety and Health at Work.

Third, we shared our data with ANSES (the French Agency for Sanitary Safety, Food, Environment and Workplace) to help them make a decision on whether to categorise crystalline silica as a carcinogen in an EU-wide Harmonised Classification. Using our data, we conducted a risk assessment and presented findings to ANSES who concluded that the additional categorisation was unnecessary.

Beyond the CMD amendment, NEPSI’s overall progress in 2018 was excellent, with Key Performance Indicators (KPIs) showing a 20% increase in participation with NEPSI from across sectors. We have also focused this year on developing ‘NEPSI 2.0’, a set of guidance for companies to build NEPSI guidance into their audit systems in accordance with the new ISO Standard 45001. The NEPSI 2.0 report entitled “Management systems approach towards NEPSI implementation” was presented at the IMAGINe Conference of 5 October 2018. ACTIVITIES PLANNED

Encouraged by the successes of NEPSI, the signatories have agreed a 5-year roadmap starting from 2018 to further develop the Agreement. A European grant will support the development of communication and training materials especially for SMEs and new workers, technical support for RCS monitoring in light of the new Directive, and a complete update of the NEPSI Good Practice Guide and IT reporting system after more than ten years of existence.

Webinars on NEPSI 2.0. will be organised at the beginning of 2019 for all IMA-Europe Members.

ACTIVITIES


9

An issue which IMA-Europe has monitored closely this year is the EU discussions over the classification of titanium dioxide (TiO

2) as a

carcinogen. This classification was first proposed in May 2016, and has been under scientific review.

Whilst TiO2 is itself inert, the classification was proposed

due to the risk that significant quantities of TiO2 inhaled

over an extended period can cause inflammation to the lungs which could further lead to lung cancer. However, this is true of any non-soluble dust particles inhaled into the lungs over an extended period, and is not specific to TiO

2. The exposure levels required to cause health

effects are also very high.

In September 2017 the ECHA Risk Assessment Committee (RAC) adopted an opinion to classify TiO

2

as a carcinogen, and the commission subsequently included TiO

2 as a proposed carcinogen category 2

in the draft Classification and Labelling (CLP) Regulation due to be voted on in February 2019. We understand that the Commission proposal for TiO

2 limits the

classification to particles below 10µm in powder form, but the exact wording is not yet available.

2018 ACTIVITIES

Whilst TiO2 is not a mineral represented by IMA-Europe,

the proposed classification poses two issues for the industrial minerals industry. First, TiO

2 is present in some

minerals, and the proposed legislation would require that any mineral containing more than 1% TiO

2 also be classified

as a carcinogen category 2. This would include some clays, and kaolin, which have not been shown to pose any risk to health.

Second, the classification of TiO2 as a carcinogen sets a

broader precedent for other inert poorly soluble low toxicity (PSLT) dusts which bear a similar footprint. While a definition of PSLT is not yet available, it is anticipated that many industrial minerals will be regarded in this category.

Whilst health and safety is our absolute priority, IMA-Europe and other trade associations believe that TiO

2 represents a

misclassification that will have significant knock-on effects across other PSLT minerals which are perfectly safe in all but massive quantities over extended periods. To this end, IMA-Europe and a number of other industry organisations have sent a joint letter to EU Commissioners raising concerns regarding a harmonised classification of TiO

2.

ACTIVITIES PLANNED

IMA-Europe will continue to engage the EU Commission on the facts about TiO

2 and other PSLTs, working with them

to ensure that a correct classification is made. A scientific workshop is also planned for April 2019 to ensure the current state of the science of PSLTs is documented and applied to regulatory and risk management programs.

It is likely that the ongoing discussions on this topic will result in a need for inhalation studies on potential health effects of various PSLTs. We strongly encourage IMA-Europe members to prepare these studies in order to fulfil our role as providers of data to help policy and decision-making.

TiO2 AND POORLY SOLUBLE LOW TOXICITY SUBSTANCES

ACTIVITIES


10

OUR VISION FOR THE FUTURE OF HEALTH AND SAFETY

LOOKING FORWARD

Without a diligent focus on health and safety, our industry could not function. We have set a zero target for workplace injuries, and continue to invest in ever-improved protection of worker, customer and community health. We seek a world in which accidents and health impacts are understood and managed 100% effectively, 100% of the time.

As such, IMA-Europe will continue to engage as a positive partner to EU and national level policy makers, as well as to worker representatives on issues such as RCS.

We will continue our position as a data-driven organisation, presenting positions that are always backed by science – for example on an issue which is likely to emerge in 2019 around the possible revision of the EU Carcinogens and Mutagens Directive, and the Chemical Agents Directive, with a focus on reprotoxic substances (i.e. those that interfere with human reproduction). IMA-Europe has begun collecting data on industrial minerals which may have an impact on this Directive, and will engage in discussions with policy-makers and trade unions to work out how best to manage these risks.


A sustainable supply of industrial minerals as an enabler of stronger value chains

SUSTAINABLE SUPPLY - KEY HIGHLIGHTS

The sustainable supply of domestically sourced industrial minerals is vital for Europe: Our industry provides key raw materials for products and services that European citizens use every day.

Minerals make up a large part of the earth’s crust and are present in abundance across Europe. Accessing these minerals is a sector-wide challenge which has implications along the value chain.

Our industry strives to maintain political and social acceptance, in order to continue supplying the minerals Europe needs: We know that extracting minerals can be invasive for communities nearby, but we also know that the products we produce are essential. That’s why we seek to educate on the importance of industrial minerals, whilst ensuring that our operations are environmentally and socially sustainable.

CHAPTER 2

12

As an industry, our key driver is to deliver a sustainable supply of minerals to ensure that European consumers have the things they use every day – from foodstuffs and cosmetics to building materials and key infrastructures.

Sustainability for our sector means several things. First it means environmentally sustainable, ensuring that we are a net contributor to European ecosystems in the long term. Second, it means economically sustainable, ensuring that industrial minerals continue to be sourced in Europe on terms that are competitive with other parts of the world. Third, it means that we continue to ensure societal acceptance, working with workers, communities and policy makers to ensure the best possible health and safety standards, and limit negative impacts and disruption.

In short, we need to be competitive whilst being environmentally and socially sound - by ensuring optimal conditions for worker safety, and following biodiversity good practices. If we fail on any part of this, the sustainable supply of European minerals is jeopardised.

BACKGROUND

CHAPTER 2: A SUSTAINABLE SUPPLY OF INDUSTRIAL MINERALS AS AN ENABLER OF STRONGER VALUE CHAINS

13

ACTIVITIES


SUSTAINABILITY AND THE SDGs

Back in 2006, IMA-Europe developed a Sustainable Development Charter outlining the industry’s commitment to implementing sustainable practices across all stages of the operational lifecycle, and we continue to build on these as a member of the European Network for Sustainable Quarrying and Mining. We are proud to demonstrate our activities to partners and the public as a lead partner of European Minerals Day, when we open our quarries to enhance awareness and engagement amongst local communities.

With that background, we welcomed the 2015 adoption of the 17 Sustainable Development Goals (SDGs), covering multiple aspects of development – including poverty, hunger, health, education, climate action, sustainable cities, industry innovation, responsible consumption and production. The goals are important not just for developing countries, but have become a benchmark for successful action across the world. In November 2016, the European Commission integrated the SDGs into EU policies. We recognise the core role of minerals in many aspects of ensuring sustainable development.

2018 ACTIVITIES

To show the extensive work done on sustainability by the mineral industry, we have developed a report on ‘Contributions of the industrial minerals sector in the implementation of the Sustainable Development Goals’. Based on around 200 case studies, the report shows how our industry contributes to the SDG agenda across multiple Goals. We found that our industry has a direct role to play in the SDGs related to Sustainable Cities & Communities, Responsible Consumption and Production, Industry Innovation and Infrastructure, Life on land, and Quality education; as well as our products being key enablers of other SDGs.

The report (see www.ima-europe.eu/content/sdg’s-report) was presented during the IMA-Europe conference on 4 October in Brussels, and during Raw Materials Week 2018.

ACTIVITIES PLANNED

Engagement on the SDGs does not end with the report. In fact, the report is only the beginning of our commitment as an industry. We will continue to enhance sector-wide sustainability practices, and share them within the sector and beyond.

14

ACTIVITIES


INDUSTRIAL MINERALS IN THE CIRCULAR ECONOMY

The Circular Economy concept seeks to move from a linear “production > consumption > waste” economic model, to a circular model promoting and putting into practice recycling, recovery and re-use of materials. Whilst not a new concept, it is one which is gaining momentum amongst policy makers and other stakeholders across the EU.

The industrial minerals industry fully supports these efforts, and we seek to use our expertise to find the best possible model for circularity in the supply of necessary minerals. IMA-Europe is a partner to the European Innovation Partnership on Raw Materials, a multi-stakeholder platform that brings together representatives from industry, public sector, academia and NGOs. Its mission is to provide high-level guidance to the European Commission, Members States and private actors on innovative approaches to the challenges related to raw materials.

New innovative projects have been developed to reach more sustainable business models, which go from the extraction and processing of minerals, through the delivery of products in the value chains, to land recovery after use.

2018 ACTIVITIES

In October 2018, IMA-Europe released a report on the contribution of industrial minerals to the circular economy. Based on months of research, the report presents projects across the different stages of the mineral lifecycle: extraction, manufacturing, transport, use phase and end of life. The report also covers the enabling role of multiple minerals that deliver on the circularity and implementation in a holistic value chain approach. The report was presented at the IMA-Europe conference on 4 October and is available to download from the IMA-Europe website: www.ima-europe.eu/content/circular-economy-report.

In addition to the report, we have also updated our “Recycling Sheets”, providing data on the recycling of various minerals through various parts of the supply chain. The main conclusion from the recycling sheets is that, despite extensive recycling and continuous improvements over time, there is still a need for more than 50% primary industrial minerals to be produced to meet the growing demand by multiple markets as well as societal and technological changes. The new recycling sheets are available for download on the IMA-Europe website: www.ima-europe.eu/content/recycling-sheets-2018.

IMA-Europe also continues to represent the industry at external events on topics related to the circular economy and sustainable supply chain. This includes the Recycling Forum (Cologne) and Advanced Factories (Barcelona), both held in March 2018.

ACTIVITIES PLANNED

The release of the Industrial Minerals contribution to circular economy will be disseminated and promoted in events organized by the European Commission and by industry stakeholders, for example at the Mineral Recycling Forum 2019 taking place in Krakow on 4 to 6 of March 2019.

IMA is also one of the partners in the Consortium Fine Future which will start in June 2019 addressing the valorization of mining waste from the flotation process.

Engagement with member companies to identify the EU Research and Development funding opportunities where the sector or the companies can illustrate the role of IMA in implementing the circular economy objectives will be a top priority for 2019 and beyond.

15

ACTIVITIES


RE-INDUSTRIALISATION AGENDA

Europe is the cradle of manufacturing, and for centuries has been at the forefront of industrial and technological revolutions. However, that position is being endangered by unfair competition. Despite a global reputation for quality, and being world-leaders in terms of worker rights and protections, European industrial sectors are facing major challenges from other parts of the world. Over 3.5 M manufacturing jobs were lost in Europe between 2008 and 2014, many being replaced with jobs in emerging markets such as China and India. To address this, in 2017 the European Commission launched the re-industrialisation agenda to help EU industry to remain a competitive player on the global stage.

In support of this agenda, 133 organisations representing many aspects of European manufacturing industries joined together under Industry4Europe - a large and unprecedented coalition of organisations dedicated to campaigning for an ambitious EU industrial strategy. The coalition’s members are from across the EU, spanning most sectors of the economy. Industry4Europe is helping to set the vision for the long-term future of the EU’s industrial and manufacturing strategy, calling for the European Commission to: reaffirm its commitment to reaching the target of 20% of GDP from industry; adopt an Action Plan to tackle the challenges industrial sectors are facing; and commit to implementing the Action Plan in a timely manner.

2018 ACTIVITIES

In 2018, IMA-Europe joined the Industry4Europe and supported the ‘Joint Call to candidates for the 2019 European Elections’. The Coalition’s aim is to make industry the priority for EU policy makers, including future Members of the European Parliament and the future mandate of the European Commission.

On 14 June, a plenary meeting on EU Industrialisation took place with speakers representing developments on the agenda, and the special focus of industry in the new Multiannual Financial Framework (MFF).

In November 2018, the Austrian EU Presidency issued a “Report on Industrial Policy – Governance and Mainstreaming”. The report explicitly references the Industry4Europe coalition, and takes on board a lot of the coalition recommendations. Notably, it “calls on the next European Commission to appoint a Vice-President dedicated to industrial policy. He or she would be responsible for developing and coordinating the future EU industrial policy strategy (including an action plan as part of the Commission’s annual and multiannual priorities) – implemented in close cooperation with Member States and stakeholders”.

The 6th Ministerial Meeting of the “Friends of Industry” took place in Paris on 18 of December hosted by the French Economy Minister Bruno Le Maire. Attended by representatives of 23 member states, The Ministerial Declaration which resulted from the meeting calls once again on the next European Commission to “propose an ambitious and comprehensive industrial strategy” with objectives to be reached by 2030 and an “indicator-based monitoring system”. Several Delegations insisted on the need for an efficient governance system under the leadership of a dedicated EC Vice-President for the Industry.

ACTIVITIES PLANNED

A communication on the continuation of the industrialisation agenda will be prepared in time for the ‘Industry Days’ event taking place on 5-6 February 2019 in Brussels. IMA-Europe will continue to align positions with the Industry4Europe coalition and engage in discussions with policy makers.

16

OUR VISION FOR THE FUTURE OF SUSTAINABLE SUPPLY

LOOKING FORWARD

We want to ensure that European consumers have what they need, built on effective, efficient, and secure supply chains.

Along with our partners in Industry4Europe, we strongly encourage European policy-makers to engage with the re-industrialisation agenda, and do everything possible to support, and provide a level playing field for European industry.

We also seek the considered implementation of circular economy concepts. Whilst there will always be a need for raw materials, the growing reuse of materials is a positive trend, and IMA-Europe will work with policy makers to ensure that reuse is encouraged and is in symbiosis with primary raw materials.


IMA-Europe paves the way towards industry competitiveness in the fields of energy and climate change

ENERGY AND CLIMATE CHANGE - KEY HIGHLIGHTS

We are doing our part in the battle against climate change: Like all industries, we recognise that our operations have an environmental impact. However, the European minerals industry is at the forefront of sustainability – seeking to limit the impact of our operations, and being a net contributor to ecosystems over the medium to long terms through rewilding of former industrial sites.

To continue to do our bit, we need to be competitive: If the European minerals industry is undercut by other producers then minerals will have to be sourced from places which do not have the same regard for environmental protection.

CHAPTER 3

18

BACKGROUND

CHAPTER 3: IMA-EUROPE PAVES THE WAY TOWARDS INDUSTRY COMPETITIVENESS IN THE FIELDS OF ENERGY AND CLIMATE CHANGE

Industrial minerals play a vital role in energy production – and particularly in the ongoing transition to renewable energy sources. The 2030 climate and energy framework sets three key targets for the year 2030:

• At least 40% cuts in greenhouse gas emissions (from 1990 levels)

• At least 27% share for renewable energy

• At least 27% improvement in energy efficiency

However we also recognise that like all industries, we are an emitter of greenhouse gases. We support and engage with the EU emissions trading system (EU ETS), a cornerstone of the EU’s policy to combat climate change and a key tool for reducing greenhouse gas emissions cost-effectively. It was the world’s first major carbon market and remains the largest.

Of particular concern to the industry however is the issue of “carbon leakage” - businesses transferring production to other parts of the world due to the costs related to European climate policies. The European Commission has established a list of sectors at risk of carbon leakage, which includes the manufacture of lime and also kaolin and clay.

19

THE EU ETS AND CARBON LEAKAGE

ACTIVITIES


Amongst the minerals that IMA-Europe covers, lime and to a lesser extent kaolin and clays, are affected by the Emissions Trading Scheme. The lime production process is based on a chemical reaction induced by heating calcium carbonate (CaCO

3) to produce quicklime (CaO).

This reaction naturally produces CO2.

These emissions of CO2, which are

inherent to the lime production process, are called “process emissions”. They constitute 70% of the total CO

2 emis-

sions from the lime industry, and they cannot be avoided if lime is to be produced – which is a key ingredient in thousands of products.

The fact that the majority of lime emissions are generated not by heat or power production, but by a chemical reaction, gives lime a unique profile which is recognised in the context of the EU ETS.

2018 ACTIVITIES

The European Lime Association (EuLA), an IMA-Europe member, actively participated throughout a 2018 round of discussions on the text for Phase IV of the EU ETS (2021-2030). During the negotiations, EuLA strongly advocated for the lime sector to maintain its special conditions in the text, notably:

• Ensuring the recognition of full ”carbon leakage” protection for the lime sector • Taking the lime specificity into account when updating the benchmarks • Avoiding the application of the EU Cross-sectoral correction factor (CSCF) to ensure that no sectors are arbitrarily reduced• Ensuring a fair treatment of all energy intensive sectors being at risk of carbon leakage, preventing a tiered approach

• Recognising the role of CCU (Carbon Capture and reUse) both from a legal standpoint and from a funding perspective• Ensuring the best balance for small emitters

EuLA’s claims were reasonably satisfied thanks to the extensive collective advocacy efforts of the Secretariat and members. Therefore, the EU ETS revised text is considered as a fair compromise for the lime industry. In addition, several kaolin and clays have been maintained in the updated Carbon Leakage List, recognising the broader vulnerability of the sector.

ACTIVITIES PLANNED

The lime industry is of course committed to reducing combustion and indirect CO

2 emissions. However, given

that modern lime kilns are already extremely efficient, the only possibility for emissions reduction lies with the deployment of reliable and competitive carbon capture and reuse technologies. Therefore, IMA-Europe and EuLA will continue to strongly advocate for the position of mineral producers in the EU ETS, and particularly the Carbon Leakage List determining and protecting those sectors which are most at risk from carbon leakage. The updated list is due for publication in Q1 2019.

We will also continue research into innovation in lime. As an industry and at member level, we are investing heavily in R&D related to:

• Sustainable production• Responsible resources management• Delivering quality added valued products• Creating value and support local economies• Enabling the recycling of end of cycle materials in steel, glass and construction industry• Valorising residues and turning them into raw materials for new processes, such as turning sulfur into gypsum for the plaster board industry

IMA-Europe is also closely monitoring and contributing to discussions around the revision of the EU’s NACE codes (statistical classifications of economic activity). These codes have implications across the industry, notably used to calculate the EU ETS, the carbon leakage list and compensation for energy, indirect compensation and State aid. This process will happen over the medium term, expected to take place over the next 3-5 years.

20

OUR VISION FOR THE FUTURE OF COMPETITIVENESS IN ENERGY AND CLIMATE CHANGE

LOOKING FORWARD

We want to see a Europe which continues to be at the forefront of the fight against climate change and, whilst not being overly reliant on imports from other parts of the world. This is achievable, but requires that European industry – including industrial minerals – be competitive.

Without a home-grown industrial materials industry, Europe will become reliant on materials sourced from parts of the world where operators work in less environmentally sustainable ways. We will continue to work with policy makers across Europe to ensure that the right balance is found between taking the necessary climate action, and safeguarding the future competitiveness of European industry.

CHAPTER 3: IMA-EUROPE PAVES THE WAY TOWARDS INDUSTRY COMPETITIVENESS IN THE FIELDS OF ENERGY AND CLIMATE CHANGE

In a globalised economy, IMA-Europe is looking beyond the EU

IMA-EUROPE IN THE GLOBALISED ECONOMY - KEY HIGHLIGHTS

As front runners on health and safety and the environment, we can help others do things better: We use our knowledge, data and expertise as the basis of discussions with policymakers in other parts of the world on how to enhance safety and environmental protection.

We are a partner to the European Commission on growth outside the EU: We strongly support the Commission’s agenda to enhance engagement around the world, and work with them to help share our knowledge. We also support member companies to engage with EU Missions for Growth.

CHAPTER 4

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Whilst we are a European association, we cannot act in isolation. In this ever-more globalised world, international cooperation is key to achieve improved standards for all, and a level playing field for the industry. Many of IMA-Europe’s member companies are also multinationals, or have interests in other parts of the world, and we help them to achieve those goals.

IMA-Europe also has a lot to offer our counterparts in other parts of the world. We strongly support the EU Commission’s agenda for engagement beyond the EU and look forward to working with the Commission to continue doing that in our sector. Several IMA-Europe members have taken part in EU Missions for Growth, and we will continue to support them in doing so. IMA-Europe also acts in an ambassador role, sharing good practices developed in Europe with policy makers in other jurisdictions.

BACKGROUND

CHAPTER 4: IN A GLOBALISED ECONOMY, IMA-EUROPE IS LOOKING BEYOND THE EU

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IMAGINe CONFERENCE 2018

ACTIVITIES


Jointly created in 2014 by IMA-Europe and our sister organisation in North America (IMA-NA), IMAGINe is an informal network open to industrial minerals producers active on a global scale. The network is about sharing efforts and resources to help companies address issues specific to industrial minerals, especially in countries and regions where coordination is not yet the norm. It is a global, regulatory intelligence resource specific to industrial minerals.

2018 ACTIVITIES

On 5 October 2018, the second IMAGINe Conference took place in Brussels on the theme: “Managing the risks from exposure to crystalline silica in a global regulatory environment”. Heavily focused on the RCS, a main health and safety issue for our industry globally at the moment, the event gathered 45 participants from 22 IMA-Europe member companies.

Presentations were given on scientific developments on crystalline silica toxicity, risk management around RCS exposure, and “How to address crystalline silica globally despite different regional/national regulatory frameworks?”. A panel, moderated by Dr Roger Doome (IMA-Europe Director General) explored the difficulties faced by multinational companies in addressing and complying with different classifications, labels and legislation across different jurisdictions. It was agreed that the priority must and will remain the protection of workers from exposure to respirable crystalline silica through the simple and pragmatic good practices offered by NEPSI, and through the respect of the regulatory limit values.

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ACTIVITIES


EU - LATIN AMERICA: MINERAL EXTRACTION TRADE SHOW (METS) IN MADRID (SPAIN)

EU-Latin America Mineral Development Network Platform (EU-LA MDNP) is a EU DG-GROW project. Countries in the scope of the project are 7 Latin American countries (Argentina, Brazil, Chile, Colombia, Mexico, Peru and Uruguay) plus the EU. IMA-Europe is a stakeholder in the project.

2018 ACTIVITIES

The first EU-Latin America Mining Exploration Convention & Trade Show (METS 2018) took place in Madrid from 10 to 12 April 2018. Over 300 people attended, with 25% coming from Latin America. Topics covered at METS were: governance, land-use planning, investment, CSR, technology, social license to operate, trade, research & innovation.

The IMA-Europe secretariat had a booth at METS and contributed to the event with two presentations:

• “Health & safety is more than a priority, it’s a duty” by Dr. Roger Doome in the Health & Safety session.• “Contribution of industrial mineral companies in the implementation of the sustainability developments goals (SDG)” by Dr. Aurela Shtiza in the CSR session.

Opening speech of Mr Antti Peltomäki, Deputy Director-General of DG GROW, at METS, Madrid, 10 April

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INTERNATIONAL LIME ASSOCIATION (ILA) CONFERENCE

ACTIVITIES


The ILA Annual General Assembly and Information Exchange Forum (IEF) took place from 10 to 12 October in Cape Town, South Africa, kindly hosted by IDWALA and under the leadership of Secretary General Dr Thomas Stumpf.

Over 100 attendees from 22 countries participated. During the forum, 21 speakers discussed the health and safety in the global lime industry, and the impact of climate change policies in different markets. The EuLA Secretary General Ms. Eleni Despotou also gave a presentation on the European Lime Industry and its challenges.

The 2019 Conference is planned to take place from 9 to 11 October 2019, in Buenos Aires, Argentina.

Speakers of ILA Annual General Assembly, 10-12 October, Cape Town2018

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OUR VISION FOR THE FUTURE OF IMA-EUROPE IN THE GLOBAL ECONOMY

LOOKING FORWARD

Ultimately, in a globalised world, no industry operates in isolation. Despite recent questions about global free trade from some quarters, the world is moving inexorably towards becoming increasingly connected and interlinked. This is also true of the industrial minerals industry, with many of our member companies operating internationally.

As representatives of one of the most efficient, safe and environmentally sound industrial minerals industries’ in the world, we are keen to share and disseminate our knowledge and expertise beyond Europe’s borders. We support industry representatives and policy makers in other parts of the world work more safely and sustainably, to level up the good practices and enhance competitiveness and trade.

Our vision for the future in this area is enhanced cooperation with the European Commission. We will continue to take part in economic missions and other opportunities to engage outside Europe, and do our part to support the EU’s global engagement agenda.


Industrial minerals in a nutshell: key facts and figures

CHAPTER 5

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KEY FACTS AND FIGURES

CHAPTER 5: INDUSTRIAL MINERALS IN A NUTSHELL: KEY FACTS AND FIGURES

IMA-Europe is the umbrella organisation for the European producers of industrial minerals:andalusite, bentonite, borates, calcium carbonate, cristobalite, diatomite, dolomite, feldspar, kaolin, kaolinitic clays, lime, mica, magnesite, quartz, sepiolite, talc, vermiculite.

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Industrial minerals are also increasingly essential to high-tech sectors through the production of wiring and fibre-optic cables, as well as environmentally friendly products and technologies such as wind turbines and photovoltaic panels.

IMA-EUROPE REPRESENTS

MAIN MARKETS FOR INDUSTRIAL MINERALS IN EUROPE

member companies mines and quarries processing plants

people employed in 28 European countries

(30 million jobs in downstream industries)

tons of minerals produced per year

annual contribution to Europe’s GDP

250 685 750

42,500 180 million

€14 billion

Construction materials

Food and feed

Glass, ceramic and bricks

Paper and plastics

Foundry/metallurgy

Civil engineering and roads

Flue gas desulfurisation

Other

Agriculture

Paints

KEY FACTS AND FIGURES


20%

3%3%5%

6%

6%

10%

13%

16%

18%

30 CHAPTER 5: INDUSTRIAL MINERALS IN A NUTSHELL: KEY FACTS AND FIGURES

MISSION VALUES

VISION

IMA-Europe is the decisive EU voice of the industrial minerals producers and importers.

Our mission – a thriving industrial minerals industry at the heart of a sustainable Europe.

IMA-Europe helps the industrial mineral sector to improve continuously its performance and reputation by tackling issues related to the properties and safe use of minerals, from its extraction and processing through to its entire value chain.

Competitiveness, health and safety at the workplace, environmental performances, product safety and awareness about the importance of industrial minerals for society are at the core of IMA-Europe’s priorities.

Trustworthy

Our positions and advocacy actions are science-based, consistent and supported by facts and figures.

Efficient

We are goal-oriented, committed and we always seek to use resources wisely. We apply high quality standards and respect deadlines.

Fair and non-discriminatory

All company members are treated in a fair and non-discriminatory way regardless notably of their size or geographical location.

Committed to well-being

We stimulate the safe and sustainable production and use of industrial minerals to improve the quality of life of all citizens in Europe and the environment.

IMA-Europe aspires to become a reference in the world of EU Industry Associations in terms of representing their industries through excellent science- and facts-based communications with Authorities and the Value Chain. It also aims at being the node of a global industrial minerals network.

IMA-EUROPE’S MISSION, VISION AND VALUES

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Ms Marie-Charlotte Swinnen Accountant

Ms Rousalina Barkhamatova Receptionist & Secretary

Mr Juan Fernando López Hernández Adviser – Climate & Energy

Dr Aurela Shtiza Director – Industrial Affairs

Ms Florence Lumen Director – Health & Safety

Ms Celia Gryspeirt Scientific Adviser – Health & Safety

Ms Catherine Delfaux President

Dr Roger Doome Director General

Ms Eleni Despotou Director – Climate & Energy

Ms Antigoni Effraimidou Scientific Adviser – Health & Safety

Ms Francesca Girardi Adviser – Industrial Affairs

Dr Carline Pitz Scientific Adviser – Environment

OUR TEAM


IMA-Europe AISBLTwin Gardens

26, rue des Deux Eglises (6° floor)

B-1000 Brussels, Belgium

www.ima-europe.eu

Tel: 32 (0)2 210 44 10

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