corymbia and eucalyptus genetic improvement program

DEPARTMENT:DEPARTMENT:DEPARTMENT:DEPARTMENT: Forestry and Research Management

PERFORMANCE EXCELLENCE AWARDSPERFORMANCE EXCELLENCE AWARDSPERFORMANCE EXCELLENCE AWARDSPERFORMANCE EXCELLENCE AWARDS

Submission Summary Sheet

RECOGNITION CATEGORYRECOGNITION CATEGORYRECOGNITION CATEGORYRECOGNITION CATEGORY:

□ Health & Safety

ACHIEVEMENT TITLEACHIEVEMENT TITLEACHIEVEMENT TITLEACHIEVEMENT TITLE: Genetic Improvement Program developed by ArcelorMittal BioFlorestas generates new Corymbia and

Eucalyptus clones with resistance to plagues, diseases besides hydric and thermal stresses adaptation. The program also develops

good wood characteristics that can reduce charcoal costs in USD 2.450.000,00.

DESCRIPTIONDESCRIPTIONDESCRIPTIONDESCRIPTION: The genetic improvement project developed an innovating technology to create new Eucalyptus and Corymbia

clones looking for better wood characteristics .as density, less cellulose and hemicellulose, more lignin .As a result, this wood from

renewable Eucalyptus plantations can produce an excellent vegetable charcoal for steelmaking with density, mechanical resistance,

and gravimetric yield.

PRODUCTION UNIT:PRODUCTION UNIT:PRODUCTION UNIT:PRODUCTION UNIT: ArcelorMittal BioFlorestas

COMMERCIAL ENTITYCOMMERCIAL ENTITYCOMMERCIAL ENTITYCOMMERCIAL ENTITY: : : : Long Carbon Brazil

CORPORATE FUNCTIONCORPORATE FUNCTIONCORPORATE FUNCTIONCORPORATE FUNCTION: : : : LCCSA

□ Health & Safety

□ Environment & Corporate Responsibility

□ Operational Excellence

□ Customer Satisfaction and Margin Generation

x x x x Technical Innovation and R&DTechnical Innovation and R&DTechnical Innovation and R&DTechnical Innovation and R&D

□ Innovation in Leadership, Management and HR

• ArcelorMittal BioFlorestas is on behalf of charcoal production for ArcelorMittal Brasil Long

Carbon based on planted forests at Minas Gerais. ArcelorMittal BioFlorestas produces 320

kton/year of charcoal, supplying ArcelorMittal Juiz de Fora’s Blast Furnaces (AMJF).

ArcelorMittal BioFlorestasArcelorMittal BioFlorestasArcelorMittal BioFlorestasArcelorMittal BioFlorestas

Situation & Situation & Situation & Situation & ContextContextContextContext

122.000 soccer fields 1

Policies and CertificationsPolicies and CertificationsPolicies and CertificationsPolicies and CertificationsOur VisionOur VisionOur VisionOur VisionCompany admired by our stakeholders, because of its results and by its employees motivation.Our MissionOur MissionOur MissionOur MissionTo reach good results in cost and quality, with health and safety, that assure from pig iron to charcoal production competitiveness for ArcelorMittal group, acting with environmental and social responsibility on resource use and community relations.Our ValuesOur ValuesOur ValuesOur Values


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Safety and HealthOHSAS 18001EnvironmentISO -14001 Forest Stewardship CouncilForest Stewardship CouncilFSC

Our ValuesOur ValuesOur ValuesOur ValuesQuality, Leadership and SustainabilityTo guarantee continuous improvement in results that assure

economic, social and environmental sustainability, trough

management system that integrates operational process, health

and safety and environment, promoting continuous reviewing

established objectives and goals, integrally investing in forest

resources, genetic resources preservation, forest protection

services, environmental education, technological development

and labor condition improvement.

PDC

A2

� Global trends estimate that there will be 9 billion people globally by 2050, as result high

competition for land use and increasing pressure on natural resources. Required 250 million

hectares of forests are well managed to meet the population's demand.

� Well managed forests based on FSC Principle and Criteria are renewable resource that

bring economic, social and environmental benefits. WWF, the most important NGO now a

days, recognize officially the commercial forests in this context can contribute to reduce

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Global Trends, Benefits & Business SustainabilityGlobal Trends, Benefits & Business SustainabilityGlobal Trends, Benefits & Business SustainabilityGlobal Trends, Benefits & Business Sustainability


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days, recognize officially the commercial forests in this context can contribute to reduce

the pressure on native vegetation.

� Need to produce a vegetable charcoal with appropriate physical and chemical

characteristics of pig iron production from dense, productive and resistant to biotic and

abiotic factors genetic materials.

Why Why Why Why EucalyptusEucalyptusEucalyptusEucalyptus tress?tress?tress?tress?

Productivity Productivity Productivity Productivity

� Fast growth and high yield;

� Seedling regeneration;

� Two rotations of 7 years;

� High wood production in short cut

(5-7 years)

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Productivity Productivity Productivity Productivity (m³/ha/(m³/ha/(m³/ha/(m³/ha/anoanoanoano))))

445 m45 m45 m45 m3333 /ha//ha//ha//ha/yearyearyearyear

1965 – Eucalyptus forest - 6 years 2007 – Eucalyptus forest - 5 years

12 m3 /ha/12 m3 /ha/12 m3 /ha/12 m3 /ha/yearyearyearyear

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OAK ACÁCIA CEDRO PINUS EUCALIPTO

Quality and UniformityQuality and UniformityQuality and UniformityQuality and Uniformity

� Genetics Improvement focusing on the final product (charcoal)

� Forestry Management

� Environmental Management

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Why Why Why Why EucalyptusEucalyptusEucalyptusEucalyptus tress?tress?tress?tress?

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PotentialPotentialPotentialPotential

AttainableAttainableAttainableAttainable

RealRealRealReal


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DETERMINANTS FACTORSDETERMINANTS FACTORSDETERMINANTS FACTORSDETERMINANTS FACTORS::::

• Radiation;Radiation;Radiation;Radiation;

• CO2CO2CO2CO2

• Temperature;Temperature;Temperature;Temperature;

• PrecipitationPrecipitationPrecipitationPrecipitation

LIMITING FACTORSLIMITING FACTORSLIMITING FACTORSLIMITING FACTORS::::

• Genetic;Genetic;Genetic;Genetic;

• Nutrient;Nutrient;Nutrient;Nutrient;

• Water;Water;Water;Water;

• Soil preparation;Soil preparation;Soil preparation;Soil preparation;

• Cultural practices;Cultural practices;Cultural practices;Cultural practices;

• Spacing;Spacing;Spacing;Spacing;

RealRealRealReal

REDUCTION FACTORS:REDUCTION FACTORS:REDUCTION FACTORS:REDUCTION FACTORS:

• BBBBiotic;iotic;iotic;iotic;

Pests and diseasesPests and diseasesPests and diseasesPests and diseases

• AAAAbiotic;biotic;biotic;biotic;

Frozen, wind, hail, fire.Frozen, wind, hail, fire.Frozen, wind, hail, fire.Frozen, wind, hail, fire.

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FORESTFORESTFORESTFORESTFORESTFORESTFORESTFOREST GENOTYPEGENOTYPEGENOTYPEGENOTYPEGENOTYPEGENOTYPEGENOTYPEGENOTYPE ENVIRONMENTENVIRONMENTENVIRONMENTENVIRONMENTENVIRONMENTENVIRONMENTENVIRONMENTENVIRONMENT

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Variation Among Species: Looking For High Variation Among Species: Looking For High Variation Among Species: Looking For High Variation Among Species: Looking For High

Wood DensityWood DensityWood DensityWood Density

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PropertiesPropertiesPropertiesProperties

EucalytusEucalytus

camaldulensiscamaldulensis

CorymbiaCorymbia

citriodoracitriodora

Eucalyptus Eucalyptus

grandisgrandis


salignasaligna


urophyllaurophylla

Basic density (g/cm³) 0,687 0,73 0,479 0,548 0,564

Lignin contente (%) 30,6 22,4 23,9 26,3 27,3


Lignin contente (%) 30,6 22,4 23,9 26,3 27,3

Gravimetric yield (%) 34,7 32,6 33,7 33,7 34,1

Fixed carbon content (%) 15,4 17,3 18,7 14,7 16,3

Volatiles content (%) 84,1 81,1 80,7 84,8 82,8

Ash content (%) 0,5 1,6 0,6 0,5 0,9

Wood calorific value (Kcal/Kg) 5.085 4.718 4.340 4.633 4.312

Charcoal calorific value (Kcal/Kg) 7,977 8.088 6.626 6.972 7.439

Charcoal

Sinter

Ore

Fluxes

Gas

For a good performance in the

blast furnace, charcoal should:

Other key features:

• Low fines content;

Good wood = Good Charcoal!!!!Good wood = Good Charcoal!!!!Good wood = Good Charcoal!!!!Good wood = Good Charcoal!!!!

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9Hot Air

Charcoal Fines

Iron Ore and

Slag

• Have strength to sustain

the column of materials;

• Allow the permeability of

gases which is obtained

exclusively through

charcoal of adequate

quality

• Low fines content;

• Low moisture content;

• Fixed carbon

• Blast furnace Yield

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Approach &Approach &Approach &Approach & timingtimingtimingtiming

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Through the crossing of selected species we’ve been trying to found the ideal clone with

features that charcoal needs.

Breeding Potential SpeciesBreeding Potential SpeciesBreeding Potential SpeciesBreeding Potential Species

E. E. E. E. grandisgrandisgrandisgrandis VG B GI

BI

B I I B

E. E. E. E. urophyllaurophyllaurophyllaurophylla G G VG VG G I I I G I

E. E. E. E. camaldulensiscamaldulensiscamaldulensiscamaldulensis B VG VG VG VG VG VG VG VG VG

E. E. E. E. tereticornistereticornistereticornistereticornis B VG G VG VG VG VG VG VG VG

SPECIES DROUGHT RESIST

DENSITY MECHANICAL RESISTANCE.LIGNINR. CANCROPuccniaRESIST.

ENRAIZAM.GROW GRAVIMETRIC YIELD . Ceratcystis RESISTApproach &Approach &Approach &Approach & timingtimingtimingtiming

VG – Very Good G – Good I – Intermediary B – Bad

E. E. E. E. robustarobustarobustarobusta B VG VG VG G VG VG VG VG B

E. E. E. E. resiniferaresiniferaresiniferaresinifera B VG VG VG G VG VG VG VG B

E. E. E. E. pellitapellitapellitapellita B VG VG VG G VG VG VG VG B

E. E. E. E. paniculatapaniculatapaniculatapaniculata B VG B VG B ? VG VG G VG

E. E. E. E. salignasalignasalignasaligna G I B B B B I I I B

C. torellianaC. torellianaC. torellianaC. torelliana B B B ? B ? VG G VG VG

C. citriodoraC. citriodoraC. citriodoraC. citriodora G G R ? I ? VG G VG VG

Company’s Genetic Heritage

Conservation and Maintenance

SelectionSelectionSelectionSelectionSelectionSelectionSelectionSelection

RecombinationRecombinationRecombinationRecombinationRecombinationRecombinationRecombinationRecombination

Progenies TestsProgenies TestsProgenies TestsProgenies TestsProgenies TestsProgenies TestsProgenies TestsProgenies Tests

Process and ProductProcess and ProductProcess and ProductProcess and Product

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Plantations well established and

Improvement Focused on Business

Strategy .

Final Quality , Customer

Requirements Customer and

Business Sustainability Product

PlantationPlantationPlantationPlantationPlantationPlantationPlantationPlantation

Scale upScale upScale upScale upScale upScale upScale upScale up

Clonal TestsClonal TestsClonal TestsClonal TestsClonal TestsClonal TestsClonal TestsClonal Tests

Parent 1Orchard Crossing in VaseParent 2Breeding

Hybrid Progeny Test

Matrix selection

Genetic Diversity

Gene bank

Short TermShort TermShort TermShort Term

:

Cluster Family Breeding

Strategy - Recombination

of Elite Clones with

Species of High Density

.

Medium TermMedium TermMedium TermMedium Term

Formation of Compound

(open pollination) and a

Synthetic (recombinant)

elite clones

.

Long Term: Long Term: Long Term: Long Term:

Reciprocal Recurrent

Selection - Synthetic

Multispecies

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StrategyStrategyStrategyStrategy


Hybrid Progeny Test

Evaluation

Selection

Clonal Test

Evaluation

Selection

Expanded clonal test

Evaluation

Selection

Commercial plantation

elite clones

.

Multispecies

Population

População2 População2 00População1 População1 00 P1 x P2 P1 x P2 °° População2 População2 11População1População111 P1 x P2 ¹P1 x P2 ¹CLONESCLONESCLONES

População2 População2 nnPopulação1População1nn12 years12 years12 years12 years

18 years18 years18 years18 years

36 36 36 36 yearsyearsyearsyears

Tools used Tools used Tools used Tools used tttto o o o mmmmeet eet eet eet tttthe strategieshe strategieshe strategieshe strategies

Collecting Seeds Collecting Seeds Collecting Seeds Collecting Seeds

and Pollen and Pollen and Pollen and Pollen

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GraftingGraftingGraftingGrafting

Open / Controlled Open / Controlled Open / Controlled Open / Controlled

Pollination and Pollination and Pollination and Pollination and

HybridizationHybridizationHybridizationHybridization

CloningCloningCloningCloning

1. Indoor and Outdoor Orchard (Include Matrixes)1. Indoor and Outdoor Orchard (Include Matrixes)1. Indoor and Outdoor Orchard (Include Matrixes)1. Indoor and Outdoor Orchard (Include Matrixes) 2. Collecting Pollen (Number of samples per matrix)2. Collecting Pollen (Number of samples per matrix)2. Collecting Pollen (Number of samples per matrix)2. Collecting Pollen (Number of samples per matrix)

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Project Project Project Project KPIsKPIsKPIsKPIs


3. Seeds Collecting (Number of samples per matrix)3. Seeds Collecting (Number of samples per matrix)3. Seeds Collecting (Number of samples per matrix)3. Seeds Collecting (Number of samples per matrix)

4. Seedling (Number of seeded containers) 4. Seedling (Number of seeded containers) 4. Seedling (Number of seeded containers) 4. Seedling (Number of seeded containers)

GOAL/MOUNTHGOAL/MOUNTHGOAL/MOUNTHGOAL/MOUNTH REAL/MOUNTHREAL/MOUNTHREAL/MOUNTHREAL/MOUNTH GOAL/MOUNTHGOAL/MOUNTHGOAL/MOUNTHGOAL/MOUNTH REAL/MOUNTHREAL/MOUNTHREAL/MOUNTHREAL/MOUNTH


5. Grafting (Number of prepared grafting) 5. Grafting (Number of prepared grafting) 5. Grafting (Number of prepared grafting) 5. Grafting (Number of prepared grafting) 6. Flowering Induction (Number of inducted flowering plants) 6. Flowering Induction (Number of inducted flowering plants) 6. Flowering Induction (Number of inducted flowering plants) 6. Flowering Induction (Number of inducted flowering plants)

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Project Project Project Project KPIsKPIsKPIsKPIs

7. Controlled Pollination (Number of pollinated matrixes)7. Controlled Pollination (Number of pollinated matrixes)7. Controlled Pollination (Number of pollinated matrixes)7. Controlled Pollination (Number of pollinated matrixes) 8. Installed Tests (Number of installed tests)8. Installed Tests (Number of installed tests)8. Installed Tests (Number of installed tests)8. Installed Tests (Number of installed tests)



Genetic Material ready to be soldGenetic Material ready to be soldGenetic Material ready to be soldGenetic Material ready to be sold

� Record of the first three clones ambio

Forefront in research and development;

Possibility of sale material genetic:

Several interested companies

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Value creationValue creationValue creationValue creation

17Picture: Hybrid of Picture: Hybrid of Picture: Hybrid of Picture: Hybrid of CorymbiaCorymbiaCorymbiaCorymbia torellianatorellianatorellianatorelliana x x x x CorymbiaCorymbiaCorymbiaCorymbia citriodoracitriodoracitriodoracitriodora

(4 years old) (4 years old) (4 years old) (4 years old)

1. 1. 1. 1. Increased Density Of The WoodIncreased Density Of The WoodIncreased Density Of The WoodIncreased Density Of The Wood 2. Increased Bulk Density Charcoal2. Increased Bulk Density Charcoal2. Increased Bulk Density Charcoal2. Increased Bulk Density Charcoal

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DDNew AM Clones Compared With AEC 1528 New AM Clones Compared With AEC 1528 New AM Clones Compared With AEC 1528 New AM Clones Compared With AEC 1528


0,45

0,5

0,55

0,6

0,65

0

0,1

0,2

0,3

0,4

0,5

3. Increased Mechanical Resistance 3. Increased Mechanical Resistance 3. Increased Mechanical Resistance 3. Increased Mechanical Resistance 4. 4. 4. 4. 4. 4. 4. 4. Increased Gravimetric YieldIncreased Gravimetric YieldIncreased Gravimetric YieldIncreased Gravimetric Yield

0,45

AM01 AM02 AM03 AEC 1528

BASIC WOOD DENSITY (g/cm3)

0

AM01 AM02 AM03 AEC 1528

APPARENT DENSITY (g/cm3)

38

39

40

41

42

43

44

AM01 AM02 AM03 AEC 1528

GRAVIMETRIC YIELD (%)

70

75

80

85

90

AM01 AM02 AM03 AEC 1528

MECHANICAL RESISTANCE (%)

AnalysisAnalysisAnalysisAnalysis38 MONTHS 84 MONTHSGENETICS MATERIAL AM01 AM02 AM03 AEC 1528BASIC WOOD DENSITY (g/cm3) 0,607 0,552 0,572 0,531MECHANICAL RESISTANCE (%) 86,8 86,1 81,7 77,8APPARENT DENSITY (g/cm3) 0,435 0,354 0,396 0,343POROSITY (%) 4,0 4,2 4,4 4,9GRAVIMETRIC YIELD (%) 43,2 41,3 40,6 40,2CHARCOAL UMIDITY (%) 3,20 2,20 2,83 1,95

ReferenceReferenceReferenceReferenceDevelopmentDevelopmentDevelopmentDevelopment

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Excellence compared to benchmarksExcellence compared to benchmarksExcellence compared to benchmarksExcellence compared to benchmarks

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CHARCOAL UMIDITY (%) 3,20 2,20 2,83 1,95ASH (%) 5,4 5,5 6,0 1,2VOLATILES (%) 26,8 24,8 25,9 26,1FIXED CARBON (%) 67,9 69,7 67,8 72,8AEC 1528 was considered the best planting clone since the AM’s clones creation being

our benchmark. Even younger than AEC 1528, AM’s clones has better wood

characteristics still presents resistance against plagues diseases that can reduce use of

chemicals on plantation.

NOTE: Selection: at experimental area in Rio Doce Region (2007/2010-2012)

Analysis: Volume, Adaptation, Pylodin Density, Density, Laboratory Analysis, Laboratory of Charcoal.

DescriptionDescriptionDescriptionDescription CurrentCurrentCurrentCurrent NewNewNewNew

� Density of Wood (Kg/m3) 500 555

� Density of Charcoal (Kg/m3) 230 241,5

Financial GainFinancial GainFinancial GainFinancial Gain

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� Cost of Charcoal (US$/t) 150 142

� Production of Charcoal (t) 350.000 350.000

� Cost Reduction (US$/t Produced Charcoal) - 8

� Project Costs (US$) 346.000,00

Total Gain In Year (Us$)Total Gain In Year (Us$)Total Gain In Year (Us$)Total Gain In Year (Us$) 2.450.0002.450.0002.450.0002.450.000

� The design and strategies of this project can be applied to all companies of forest-based

� There is now a trend in Brazil a migration of genera and species commonly used for the

production of forest products, and in particular the gender Corymbia due to its density,

stability pitch-bark, resistance to pests, diseases and water and thermal stress.

� Already have 13 large companies in Brazil interested in buy clones from ArcelorMittal

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Scope for wider applicationScope for wider applicationScope for wider applicationScope for wider application

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�

BioFlorestas

� Are mounting a parallel business plan to enable this project, the expected initial amount

can make forest research of self-sustaining business and change the course of brazilian

forestry

TeamworkTeamworkTeamworkTeamwork

FROM LEFT TO THE RIGHT:FROM LEFT TO THE RIGHT:FROM LEFT TO THE RIGHT:FROM LEFT TO THE RIGHT:

Lucas Belmont Gomes, Agronomist Engineer Agronomist Engineer Agronomist Engineer Agronomist Engineer - Forest Analyst

Euzébio Miguel, Forest Technician Forest Technician Forest Technician Forest Technician - Forest Analyst

Roosevelt Almado, Forest Engineer MForest Engineer MForest Engineer MForest Engineer MScScScSc – Manager / Project Coordinator

Brígida Valente, Forest Engineer Forest Engineer Forest Engineer Forest Engineer MMMMScScScSc – Coordinator

Válter Martins, Forest Technician Forest Technician Forest Technician Forest Technician - Forest Analyst

corymbia and eucalyptus genetic improvement program

Science