Mining On Top: Stockholm 2013 26-27 Nov 2013 Getting the most out of your mine – Thomas Hörnfeldt , Rautaruukki Corporation; SVP

1. Getting the most out of your mine
Special steels – the smart choice
26 November 2013 Stockholm
Thomas Hörnfeldt

2. Ruukki world-wide
€2 800m net sales (2012)
9000 employees
Sales
Production
Processing
Stock
Certified partner
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26 November 2013 www.ruukki.com | Thomas Hörnfeldt

3. Business areas in Ruukki
Ruukki Metals
Ruukki Building Products
Ruukki Building Systems
Net sales €1 859m*
Net sales €452m*
Net sales €288m*
Special steel products
Residential roofing
Nordics
Standard steel products
Building components
Russia
Tubes and profiles
Infrastructure
construction/components
CEE
Stainless and aluminium
* 2012, comparable net sales
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26 November 2013 www.ruukki.com | Thomas Hörnfeldt
Functional building systems

4. Need for energy efficiency
More regulation e.g. 20/20/20 in EU
Increase in energy price
Scarcity in fossil fuel resources
CO2 emissions follow this trend
Demand for energy x2
Rising standard of living
and transport demand
Population growth
7 billion
1950
4
9 billion
2010
26 November 2013 www.ruukki.com | Thomas Hörnfeldt
2050

5. Tightening regulations forcing change
• EU’s 20/20/20 climate and energy goals by 2020
− Emissions trading
− Proposed energy efficiency directive
− Feed-in tariffs, etc. systems to create more
renewable energy production
• EU Energy Efficiency Directive
− Member countries to reduce energy consumption
annually by 1.5%
• More energy regulations for transportation
− EU Commission white paper (2011) states a 60%
reduction target for CO2 by 2050
− Improved vehicle efficiency through new engines,
materials and design.
Source: EU 2013, IEA
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26 November 2013 www.ruukki.com | Thomas Hörnfeldt

6. Special steels for mining Material efficiency is our
responsibility

7. Material efficiency
– the mine is just the beginning
Sustainability
with minimum
environmental
effects
1
Sustainability
with maximum
efficiency
Sustainability
with minimum
processing
waste
3
2
Converting the steel
into products
Making steel
from the ore
Getting the iron ore
out of the ground
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26 November 2013 www.ruukki.com | Thomas Hörnfeldt
Sustainability
through
special steels
Sustainability
through
energy efficiency
5
4
Minimizing steel
use
Minimizing
running costs

8. Material efficiency with special steels
Efficient steel
production
High quality ore
from sustainable
mines
Lighter
machines mean
less emissions
and lower
fuel costs
High strength
steels in
machines,
vehicles,
infrastructure
Less steel use
means less energy in
production and
transportation
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26 November 2013 www.ruukki.com | Thomas Hörnfeldt

9. Material efficiency saves energy
STANDARD
STEEL
SPECIAL
STEEL
Material
efficiency
•
•
9
Standard steel
chassis
Tipper body
made of standard
steel and wood
26 November 2013 www.ruukki.com | Thomas Hörnfeldt
•
•
•
•
Higher payload
Longer lifetime
Lower fuel
consumption
Lower CO2 footprint

10. Saving steel – and energy
• In open pit mines
dump trucks make up
32% of the energy
consumption
• High-strength and wear
resistant steel solutions
save fuel
• Longer lifetime and
reduced costs
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26 November 2013 www.ruukki.com | Thomas Hörnfeldt

11. Smart design with special steels
•
•
•
•
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Weight
-40%
Vehicle weight -10%
Payload
+5%
Energy need
-10%
26 November 2013 www.ruukki.com | Thomas Hörnfeldt

12. Special steels for the mining industry
Sweden:
Finland:
Kiruna Wagon
Maakasi
Optim
Raex
Finland:
Pajakulma
Finland:
Eurosteel
Russia:
Raex
Optim and Raex
Automarket mining
Raex
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26 November 2013 www.ruukki.com | Thomas Hörnfeldt

13. “Consumption of coking coal in
our steel production process is
close to the minimum
possible.”

14. We are among the best in the world in iron
making CO2 efficiency
Blast furnace carbon dioxide efficiency*
180
160
140
120
100
80
60
40
20
India**
China**
Russia**
NAFTA
EU average
Ruukki
0
Source: Stahl-Zentrum. *The indexed carbon efficiency in iron-making based on coal consumed 2009. ** 2007 data.
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26 November 2013
www.ruukki.com | Thomas Hörnfeldt

15. Material efficiency with special steels
Most of the lifecycle
energy consumption and
emissions usually arise
during the use of a steel
product.
We aim to reduce the
environmental loading
of each steel product
at each stage of
production.
We are part of better use
and production of energy.
In 2012 use of scrap steel
reduced carbon dioxide
emissions by 420,000 tonnes
equivalent to around 11% of
Ruukki’s total carbon emissions.
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26 November 2013 www.ruukki.com | Thomas Hörnfeldt