1,92 Global Perspectives on Copper Health Environment Sustainable Development e n Presented to HESD-NA Presented by e Scott Baker Director Health Environment Sustainable Development International Copper Association March 25 2014
Agenda The coming SD squeeze Upstream/downstream pressures in copper value chain Competitor pressure – Material (aluminum and plastics) substitution Milestones 2014 Issue inventories Delivering value to members – EPD, HPD, PEF, intermediate product LCI, consumer-product LCA Communicating SD 2 | Global Perspectives on HESD HESD-NA March 25 2014
The coming SD squeeze s Responsible sourcing Product life-cycle performance el use the ‘increase/decrease list level’ found under the ribbon Product declarations Improved recycling performance Greater energy efficiency Reduced environmental footprint Stronger community support around operations Workplace standards for worker protection d er d 3 | Global Perspectives on HESD HESD-NA March 25 2014
The coming SD squeeze s Responsible sourcing Conflict-free source materials el use the ‘increase/decrease list level’ found under the ribbon Product life-cycle performance LCA product comparisons ( e.g ., copper versus aluminum cable) Product declarations EPD, HPD, PEF Improvement in recycling efficiency – Recycling performance to better than 30-40% Energy efficiency Reductions in GHG emissions for processes and products Environmental footprint Improvement in life-cycle performance Community support Sustainable improvement in quality of life d Worker health and safety Improvement in worker protection er d 4 | Global Perspectives on HESD HESD-NA March 25 2014
The coming SD squeeze Upstream/downstream pressures in the copper value chain Find downstream upstream Exploration Ore Waste reserve Mining and End-of-life processing management Produce End-use Concentrate product Recycling Smelting and End use refining Use Metal and Finished product alloys Manufacture Fabrication midstream Make Semi-fabricates 5 | Global Perspectives on HESD HESD-NA March 25 2014 | Global Perspectives on HESD HESD-NA
The coming SD squeeze Upstream/downstream pressures in the copper value chain Responsible Life-cycle based Find sourcing product declarations Exploration Ore Waste reserve Mining and End-of-life processing management Produce End-use Concentrate product Recycling Smelting and End use Use refining Metal and Finished product alloys Manufacture Fabrication Make Semi-fabricates Process and product performance – tube, sheet, strip, wire 6 | Global Perspectives on HESD HESD-NA March 25 2014
Regional copper demand – by first use s North America behind EU and Asia 12.0 el 10.0 use the ‘increase/decrease list level’ found under the ribbon 8.0 MT 6.0 4.0 2.0 0.0 Europe Africa China Asia ex Latin North China America America 2008 2009 2010 2011 2012 d er d 7 | Global Perspectives on HESD HESD-NA March 25 2014
Competitor pressure Trends in relative material cost Cost index (2000 = 100) Relative cost to copper Index 2000 =100 Index Copper=100 1,000 200 900 175 800 150 700 125 600 100 500 400 75 300 50 200 25 100 0 0 Copper Zinc Aluminum Nickel Gold Iron Ore HDPE 8 | Global Perspectives on HESD HESD-NA March 25 2014
Competitor pressure s Annual substitution gains and losses 2005 2006 2007 2008 2009 2010 2011 2012 Gains 15 34 41 35 46 46 8 47 -338 -490 -572 -523 -600 -424 -553 -454 Losses Net Loss -323 -456 -531 -488 -554 -378 -545 -407 el 100 use the ‘increase/decrease list level’ found under the ribbon 0 -100 KT -200 -300 -400 -500 -600 Losses Gains -700 d er 2005 2006 2007 2008 2009 2010 2011 2012 d 9 | Global Perspectives on HESD HESD-NA March 25 2014
Competitor pressure Regional breakdown of 407 KT loss in 2012 Latin America 6% Europe & Africa 17% North America 19% Asia & Oceania 19% China 39% Asia 58% 10 | Global Perspectives on HESD HESD-NA March 25 2014
Competitor pressure s Global substitution by application area Alloy Rod & Bar, All others 54kt, 13% (e.g. Transformers, Auto Wire, Foundry), el use the ‘increase/decrease list 85kt, 21% level’ found under the ribbon Air Conditioning & Refrigeration Tube, 43kt, 10% Electrical & Electronic Strip, 15kt, 4% Plumbing Tube, 18kt, 4% Utility Power Cable, 38kt, 9% Bare Cu Wire, 18kt, 4% Industrial Power Electric Motors, Cable, 30kt, 8% 36kt, 9% External Network d Building Wire, er Telecom, 35kt, 9% 36kt, 9% d | Global Perspectives on HESD HESD-NA March 25 2014 11
Competitor pressure Growing threat from aluminum in power cables KT Cu equivalent 4,500 60% Copper Aluminum Copper share 4,000 3,500 55% 3,000 2,500 50% 2,000 1,500 45% 1,000 500 0 40% 2004 2005 2006 2007 2008 2009 2010 2011 2012 12 | Global Perspectives on HESD HESD-NA March 25 2014
HESD Program 2014 Projects (Key Actions) 2014 (k$) Regulatory Acceptance and Advocacy (KA 3) 1070 Applied research (KA 1) 800 Sustainable Development (KA 2, 4, 6, 7) 816 Communications (KA 5) 80 Program management and coordination 105 Total Direct Program Expenses (DPE) 2,871 GRAND TOTAL (HESD program) Direct Program Expenses (DPE) 2,871 Network Operating Costs (NOC) 2,604 Total 5,475 13 | Global Perspectives on HESD HESD-NA March 25 2014
HESD Program funding 2010-2014 5,475 2014 6,103 2013 YEAR TOTAL 5,924 2012 NOC DPE 5,985 2011 5,074 2010 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 $K USD 14 | Global Perspectives on HESD HESD-NA March 25 2014
HESD Program - objectives s Regulatory Acceptance and Advocacy Credibility, transparency and reputation to el use the ‘increase/decrease list convince regulatory and policy makers to level’ found under the ribbon maintain the copper industry’s license to operate and to secure fair market access for its products Applied Research Sound science for responsible decision-making Foundation for messages and advocacy, objective knowledge on issues raised by markets and regulators d er d 15 | Global Perspectives on HESD HESD-NA March 25 2014
HESD Program - objectives s Sustainable Development Activities ( e.g ., life cycle) to support ICA el use the ‘increase/decrease list promotional activities, industry value chain level’ found under the ribbon Feedback from value chain sectors and intelligence on competitive materials Communication and engagement Strong messages to strengthen advocacy towards key stakeholders/decision-makers, support for ICA marketing activities and the industry’s reputation d er d 16 | Global Perspectives on HESD HESD-NA March 25 2014
HESD notable deliverables s 2013-2014 Global cathode LCI completed, outreach docs prepared Full industry support on GHS/IMO requirements and el use the ‘increase/decrease list multimetal coordination level’ found under the ribbon Roof runoff demonstration project completed (2013) Strong scientific support for antimicrobial and aquaculture initiatives Regional/global issue inventories established; full support from CRIF on information/data needs d er d 17 | Global Perspectives on HESD HESD-NA March 25 2014
HESD notable deliverables s 2013-2014 Briefing notes on long-term availability of copper and copper recycling published el use the ‘increase/decrease list Strong support from USEPA toward US States in level’ found under the ribbon adopting the industry’s scientific basis for water quality criteria Collaboration between ICA and the US government tempering strident views about copper’s effect on fish olfaction Derogation on “hazard assessment” accepted for use on specific copper alloys in contact with drinking water, clearing the way for development of product ecolabels d er d 18 | Global Perspectives on HESD HESD-NA March 25 2014
Issue management s Inventories and advocacy GL el use the ‘increase/decrease list level’ found under the ribbon NA EU B&C In each of 11 countries AS ERM ICA 0 10 20 30 40 Number of issues d er d 19 | Global Perspectives on HESD HESD-NA March 25 2014
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