Environmental Performance
Environmental safety of operations and protecting the environment are among the main priorities of OJSC MMC Norilsk Nickel. The Group works to minimize environmental effects of its operations by phased reduction of such impact factors as emissions into the air, pollutant discharges and industrial waste generation, and by increasing waste recovery. The Group seeks to comply with the requirements of the environmental legislation and international agreements, provisions of ISO 14001:2004 international standard, as well as sectoral and corporate regulations applicable to environmental aspects and environmental protection activities of MMC Norilsk Nickel. The IQEMS has been certified according to ISO 9001 and ISO 14001 international standards by an independent certification body, Bureau Veritas Certification, in the area “Production, project management, sales and supply of products (nickel, copper, cobalt, precious metals, sulphur, selenium, tellurium)” and accredited by international accreditation bodies, including United Kingdom Accreditation Service (UKAS, UK), Deutschen Akkreditierungs Rat (DAR, Germany), and American National Accreditation Board (ANAB, USA). Development of the Environmental Management System In 2009, the Company's Environmental Management System (EMS) was functioning within the framework of the corporate Integrated Quality and Environmental Management System (IQEMS). Norilsk Nickel continuously develops and improves the system, viewing environmental management as an important activity, resulting in a number of significant benefits to the Company, including:
In November 2009, a surveillance audit of the IQEMS was conducted by auditors of Bureau Veritas Certification (BVC), an international certification body. The audit was conducted at the Company’s Head Office (Moscow), and at the industrial sites of the Polar Division (Norilsk). The surveillance audit confirmed the compliance of the Company’s IQEMS with the requirements of ISO 9001:2008 and 14001:2004 international standards. Based on the audit findings, the BVC specialists provided recommendations on potential opportunities for improvement and noted general strengths of the Company’s IQESM. In September 2009, BVC’s auditors conducted a surveillance audit at the Monchegorsk industrial site of Kola MMC. The audit confirmed effective functioning of the Kola MMC’s environmental management system in accordance with the ISO 14001:2004 international standard; strengths of the system and opportunities for improvement were identified. The Company has introduced an integrated environmental reporting system for the entities of Norilsk Nickel Group1, and uses the system to monitor the accomplishment of the Group’s environmental objectives. In 2009, the Company was conducting internal audits within the framework of the IQEMS based on the Program of Internal IQEMS Audits for 2009. Twenty-six internal audits were carried out in the organizational units of the Head Office and the Polar Division during the year. In accordance with the requirements of ISO 9001:2008 and 14001:2004 standards and corporate regulations, the audits were conducted by competent staff, who received appropriate training. The Company has created and maintains a Register of Corporate and Internal Auditors. Environmental training of the personnel Activities aimed at ensuring personnel competence and development in the field of environmental management as a whole and, in particular, with regard to internal IQEMS audits are carried out under the uniform policy of professional development of Norilsk Nickel Group’s staff and improvement of their professional skills and capabilities. Environmental training and skill upgrading needs are identified on an annual basis, and an environmental section for the Group’s annual Integrated Personnel Training Action Plan is prepared. In 2009, the Company used services of both external and internal training providers for personnel development and skill upgrading. In particular, as a part of the continual improvement of the IQEMS performance, the following training courses were delivered to the relevant staff:
In 2009, the Company held an annual Environmental Protection in the Metal Industry corporate workshop. The event was attended by 39 managers and specialists of environmental services of the Company’s Head Office, divisions and SDCs, as well as representatives of external organizations, including state supervisory authorities, ministries and agencies, and research institutions. In the course of the year, the Company’s employees participated in a number of conferences and training workshops. In particular, 218 specialists of the Polar Divisions received training in various programs, including, in particular: cleaner production – 28 trainees; waste management ¾ 105 trainees; specialized environmental protection and management courses and workshops ¾ 34 trainees. Environmental expenditures In 2009, the aggregate operating environmental expenditures of the Russian entities of the Group increased by 3.2% compared to 2008 and amounted to RUB 11,229.2 million, including operating environmental expenditures of the Polar Division – RUB 10,369.2 million, and Kola MMC – RUB 631.6 million. The total Group’s expenditures on environmental protection measures amounted to RUB 1304.2 million, including the respective expenditures of the Polar Division – RUB 944.4 million, and Kola MMC – RUB 316.3 million. Pollutant emissions into the air In 2009, the overall pollutant emissions across the Polar Division of MMC Norilsk Nickel were reduced by 6,901.6 tones compared to the previous year, mainly due to the reduction of sulphur dioxide emissions by 2,548.0 tonnes. In 2009, a substantial reduction of particulate metal emissions was achieved, including nickel oxide ¾ by 44.9 tonnes (11.8%), copper oxide ¾ by 69.9 tonnes (16.3%), cobalt oxide ¾ by 11.1 tonnes (29.9%), lead ¾ by 5.3 tones (27.7%). During adverse weather conditions, emission control (reduction) plans were enacted at the Company’s operations, as required by the environmental legislation. In 2009, such plans were activated at the Polar Division’s metallurgical facilities a total of 143 times, including 80 times (or 55.9%) ¾ at the Copper Plant (CP); 55 times (38.5%) ¾ at the Nickel Plant (NP); 8 times (5.6%) ¾ at the Nadezhdinsky Metallurgical Plant (NMP). In 2009, the subsidiaries and dependent companies were taking all the necessary measures to comply with the requirements of the environmental legislation. Proposed Maximum Permissible Emissions limits were approved and respective emissions permits were issued by state authorities for a number of entities, including LLC Norilskgeologiya, LLC Norilsk Support Complex, LLC Polar Construction Company, LLC Norilsknickelremont, LLC Norilsk Industrial Transport, LLC Nortrans‑Norilsk. The absence of adverse impacts on the air quality resulting from operations of these SDCs was proved by calculations. No elaboration of additional emission reduction measures was necessary. No incidents of established emission limits being exceeded occurred in 2009. In 2009, the overall pollutant emissions into the air across the Norilsk Nickel Group decreased by 2,134.3 tonnes compared to the previous year. In particular, a number of the Group’s entities, including the Polar Transport Division, LLC Norilsknickelremont, OJSC Norilskgazprom, LLC Norilsk Industrial Transport, LLC Nortrans‑Norilsk, and LLC Pechengageologiya, reduced their emissions by 8.1% in 2009. Water resource use The Company has developed and implements a system of environmental measures aimed at efficient water resource management and prevention of their pollution. Water for general purpose (including drinking) and industrial use is withdrawn from the surface water bodies of the Kara Sea basin (Norilskaya River, Kharaelakh Reservoir, Dudinka River, Lake Podkamennoye, Lake Samsonkino) and Barents Sea basin, as well as underground sources (Talnakhskoye, Ambarninskoye, and Ergalakhskoye groundwater deposits). The water withdrawal is carried out in accordance with the established limits and does not have a significant effect on the water bodies. Some entities of the Group consume water supplied by other organizations, including OJSC Norilsk-Taimyr Energy Company (NTEC), instead of directly withdrawing necessary water resources from the environment. In 2009, the overall amount of water withdrawn by the Norilsk Nickel Group’s entities amounted to 346.7 million m3, or 1.0% less than in 2008. In 2009, the Company continued its efforts to optimize water resource use and reduce wastewater discharges to surface water bodies. A reduction in water consumption was achieved as a result of measures to ensure rational water resource management by the Company’s entities. The largest reduction in water consumption from surface water bodies was achieved by OJSC Kola MMC, whose withdrawal decreased by 11.8% (1.9 million m3). This reduction has been mainly a result of organizational and engineering measures to reduce water consumption at the Monchegorsk industrial site. The reduction in the Kola MMC’s consumption of water from municipal water supply systems by 24.1% was achieved by introducing metering and accounting of general purpose water use at the Zapolyarny and Nickel industrial sites. The Polar Division achieved a 3-percent reduction in general purpose water consumption by implementing a system of organizational and engineering water saving measures. The overall general purpose water consumption across the whole Group decreased by 6% in 2009. The total amount of recycled water used across the Norilsk Nickel Group increased by 18.7 million m3. In 2009, the overall wastewater discharge of the Norilsk Nickel Group increased by 1.3 million m3 (0.8%) compared to the previous year, mainly due to increased natural water inflow resulting from weather conditions of the year. The amount of wastewater treated to the standard quality at the treatment facilities increased three times. In 2009, the total amount of pollutants discharged to water bodies across the Group decreased by 1.2%. In the reporting year, the Company continued design and construction of wastewater treatment facilities envisioned, among other measures, by its Action Plan for phased achievement of compliance with the established pollutant discharge limits. In 2009, the overall amount of pollutants discharged to surface water bodies by the Polar Division’s entities decreased by 1.7 thousand tonnes (2.8%) compared to 2008. Waste management One of the Company’s environmental objectives is to prevent, to the maximum extent possible, the environmental load caused by waste disposal. More than 90% of the waste generated by the Company’s entities falls into the 5th hazard class (i.e. virtually safe to the environment). These types of waste include overburden and waste rock, concentration tailings, metallurgical slag, etc. In 2009, the overall waste generation across the Norilsk Nickel Group decreased by 5,682.6 thousand tonnes or 12.0% compared to the previous year. The reduction in waste generation from mining operations was a result of Kola MMC’s transition from open-cast ore mining to underground mining and associated reduction in the amount of overburden to be disposed of. In addition, the following Group’s companies reduced their waste generation by more than 20%: LLC Alykel, LLC Vostokgeologiya, LLC Scrap Metal Processing Plant, LLC Polar Construction Company, Polar Transportation Division, LLC Norilsk Support Complex, OJSC Pechengastroy, OJSC Taimyrgaz. Energy conservation and alternative energy sources The Company devotes considerable attention to initiatives aimed at the introduction of energy efficient or renewable energy based equipment and services, thereby reducing overall energy consumption. Savings resulting from measures aimed at reducing energy consumption and improving energy efficiency make a substantial contribution to the reductions of the Company’s costs. Energy conservation performance In 2008, energy consumption of the Russian entities of the Group remained at the 2007 level, while the amount of energy savings was 4,928,280 GJ, or 3.6% less than in 2007. At the same time measures implemented by the Polar Division resulted in 19% more savings than in the previous year. OJSC Kola MMC achieved a considerable reduction in its energy consumption – by 1,870,841 GJ (or by 8% compared to the 2007 consumption level). Energy savings were achieved by the Russian entities of the Group mainly due to modernization of production processes. Significant contribution to the improvement of energy efficiency was also made by readjustment and replacement of equipment. In the reporting period energy conservation and efficiency improvement measures at the Russian entities of the Group resulted mainly in fuel savings. Considerable power savings were also achieved – 1.8 times more than in 2007. The indirect energy consumption increased in the reporting year by 904,451 GJ (of by 1%) compared to the 2007 level. Electric power accounts for the largest share of indirect energy consumption, with a significant fraction of consumed power produced by Group’s entities. In 2008, the largest contribution to energy resources conservation and efficiency improvement within the Company was made by the most energy intensive operations of the Group, including the Polar Division (1,110,960 GJ), OJSC Kola MMC (1,077,864 GJ), and OJSC NTEC (2,493,530 GJ). The overall energy savings achieved by these entities amounted to 4,682,354 GJ (of 95% of the total Company’s savings). The Polar Division has developed and is implementing a targeted Energy Conservation Program for the period till 2012, and approves, on an annual basis, a Fuel, Heat, Power, and Water Conservation Action Plan covering organizational and technical measures. The results are monitored on a quarterly basis; the Division has introduced a motivation and incentive system to facilitate energy resources conservation. The Division uses a systematic and comprehensive approach toward energy conservation: it develops an energy management and monitoring system; the staff receives appropriate training in certification centers. Environmental expenditures In 2008, the aggregate environmental expenditures of the Russian entities of the Group increased by 23.7% compared to 2007 and amounted to RUR 10,883.2 million, including current environmental expenditures of the Polar Division – RUR 9,635.8 million, Kola MMC – RUS 1,054.4 million. The total Group’s expenditures on environmental protection measures amounted to RUR 2854.6 million, or 64.1% more than in 2007. Expenditures on environmental protection measures of the Polar Division increased by RUR 1,028.3 million compared to the previous year, of Kola MMC – by RUR 198.7 million compared to 2007. In order to keep pollutant emissions within the established limits, regular technical inspections of vehicles and other machinery are conducted at the Group’s entities. Measurements of pollutant content in exhaust gases are carried out on a quarterly basis. Conservation and restoration of biodiversity, support of natural reserves, and rehabilitation of areas In addition to addressing environmental issues related to their activities, the entities of Norisk Nickel Group pay considerable attention to the conservation of natural ecosystems and biodiversity in their areas of operation. The Polar Division for several years has been providing financial aid to Norilsk Fish Hatchery. The main objective of the hatchery is rearing of viable young of valuable fish species (char, whitefish, grayling) with subsequent release to water bodies of the Norilo-Pyasinskaya water system, including Pyasina River and Lake Pyasino with its tributaries. Taimyrsky State Natural Biosphere Reserve and Putoransky State Natural Reserve have been included on a permanent basis into the Polar Division’s system of sponsorship in the Taimyr Dolgano-Nenets Municipal District2. OJSC Kola MMC maintains cooperation with state nature reserves of the Murmansk Region. Industrial sites of Kola MMC are located on lands designated for industrial use or within certain settlements. The natural protected area closest to the Nickel industrial site, northern part of Pasvik State Nature Reserve, is located 30 km southwest from the site. Laplandsky State Nature Biosphere Reserve is located 10 km of the Monchegorsk industrial site3. Pasvik State Nature Reserve has been included into the Prospective List of Wetlands of International Importance (Ramsar sites) under the name of “Fjarvann – Schaanning’s Field Base”. The total area of reserve’s wetlands amounts to 14,727.5 ha. According to the studies conducted in 2006-2008 by specialists of the Pasvik Reserve, virtually no negative effects of industrial operations were observed in the part of the reserve closest to the Nickel industrial site. According to the 2008 report, no adverse changes in the state of the ecosystems compared to 2006 and 2007 were observed. In 2008, Kola MMC continued environmental monitoring activities within the framework of the project named “Monitoring of the state of the natural environment of the areas adjacent to Severonickel Combine, including Monchegorsk town with surroundings and, in particular, the area Laplandsky State Nature Biosphere Reserve”. These works have been systematically carried out since 1998.
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