International

Aluminium
Institute

the
aluminium industry’s
sustainable
development
report
 Published by

INTERNATIONAL ALUMINIUM INSTITUTE

New Zealand House, Haymarket, London SW1Y 4TE
Tel: +44 (0) 20 7930 0528
Fax: +44 (0) 20 7321 0183
Email: iai@world-aluminium.org
Website: www.world-aluminium.org

Designed and Produced by The Swallow House Group of Companies - Tel: +44 (0) 20 8505 4048
 contents
INTRODUCTION
What is sustainable development? 2
Why industry needs to take it seriously 2
Financial implications 2
Commercial Benefits 2

EXECUTIVE SUMMARY
Aluminium’s contribution to
sustainable modern living 3
International Representation 3
Life Cycle 4
Energy Efficiency 6
Greenhouse Gases Reduction 7
Ongoing challenges facing the industry
on the road to sustainable development 8
Legacy for future generations 8

IMPLEMENTATION OF THE THREE

DIMENSIONS OF SUSTAINABLE
DEVELOPMENT

Economic Dimension
The Structure of the Industry 9
Contribution to the overall economy 9
Contribution to Global Food Supply 9
Job Creation 10

Environmental Dimension
Introduction 12
Land Use 12
Energy Efficiency 14
Energy Supply 14
Water Use 15
Control of Fluoride Emissions 16
Greenhouse Gases Reduction 17
Aluminium in Transport - A Success Story 17
Recycling 19

Social Dimension
Stakeholder Engagement 20
Safety and Health 21
Public Safety 22
Health and Fitness 22
Community Health Care Projects 23
Safety of the Motorist 23
Mobility 23
Community Care 24
Training and Education 24
The information contained in this report is based upon data
submitted by the operating companies that have participated in the Means of Implementation
production of the report and has not been verified by the IAI. For
Greenhouse Gas Reduction 26
more information about our publications and links to our Member
Companies and the National and Regional Associations please Future Approach to Sustainable
visit our website at www.world-aluminium.org. Development 26
 INTRODUCTION
WHAT IS SUSTAINABLE
DEVELOPMENT?
The Brundtland Commission of the 1980s defined
the concept of sustainable development as “meet-
ing the needs of the present, without compromis-
ing the ability of future generations to meet their
own needs.” The World Business Council for
Sustainable Development has defined it as “ensur-
ing a better quality of life for everyone, for now and
for generations to come.” It combines economic,
social and environmental concerns, (often called
the triple bottom line) and
offers business opportuni- "Meeting the needs of the present,
ties for companies that can
without compromising the ability of They assert that
improve the lives of the
world’s population.
future generations to meet their own which are conscious of sus-
needs."
The Chairman of IAI
member Norsk Hydro, Egil Myklebust, has
explained that his company and business in gener-
al “needs a balanced interaction, so that economy,
environment, and social responsibility support and
strengthen each other. As we pursue excellence in
business performance and growth, to create value
for our shareholders, we will recognize the legiti-
mate interests of other stakeholders: our employ-
ees, local communities, our customers, our suppli-
ers and society at large. It is this triple ambition -
economy, environment and social responsibility -
we label sustainable conduct.”
For industry, the concern for the environment
involves reducing the consumption of resources.
This includes minimising the use of energy, mate-
rials, water and land, while enhancing recyclability
and product durability. It also means reducing the
impact on nature by minimising air emissions,
water discharges, waste disposal and the dispersion
of toxic substances.
WHY INDUSTRY NEEDS
TO TAKE IT SERIOUSLY
Governments, International Organisations, like
UNEP and the OECD, and Environmental NGOs
are pressing industry to take sustainable develop-
ment seriously. For example the EU Commission’s
Strategy focuses on six key issues which include
climate change and clean energy, public health, the
management of natural resources, land use and
2
territorial development. Sir Mark Moody Stuart,
former Chairman of Shell, points out that “unless
a business is seen as a useful and constructive
member of society it will suffer.”
FINANCIAL
IMPLICATIONS
A company’s approach to sustainable development
could affect share value and a company’s standing.
For example the Dow Jones Sustainability Group
Index measures the performance of industrial com-
panies according to criteria
for social responsibility and
sustainable development.
companies
tainability not only manage
the standard economic fac-
tors affecting their business, but also the environ-
mental and social factors as well. There is mount-
ing evidence that their financial performance is
superior to that of companies that do not adequate-
ly, correctly and optimally manage these important
factors.
COMMERCIAL
BENEFITS
There can also be tangible commercial benefits in
terms of cost savings, protection of the company’s
license to operate, conservation and efficiency. It
can also be used as a means of improving and
enhancing a company’s reputation, branding and
marketing as well as a means of improving stake-
holder relations and perceptions.
Aluminium’s profile is probably better adapted than
many other materials to take on the challenge of
sustainable development. Aluminium stands to ben-
efit from the triple bottom line or sustainable devel-
opment approach. Its real impact on the environ-
ment can only be judged in terms of a full cradle to
gate life cycle analysis, a methodology embodied in
the sustainable development approach. Aluminium,
because of its characteristics, has the potential to do
well when measured against sustainable develop-
ment criteria. It is a material which can be prof-
itably recycled without loss of quality, for use by
future generations. It is its recyclability, as well as its
applications, which justify the significant energy
required initially to produce primary aluminium.
 EXECUTIVE SUMMARY
ALUMINIUM’S
CONTRIBUTION TO
SUSTAINABLE
MODERN LIVING
Aluminium is a young and modern metal. It has
only been produced on an industrial scale since
1886, when Hall and Héroult independently dis-
ELE
CTR
ICA
OTHERS
L
CONSTRUCTION
PACKAGING TRANSPORTATION
Aluminium’s Major Applications
covered how to produce aluminium through elec-
trolysis. In 1900 annual output of aluminium was
one thousand tonnes. By the end of the twentieth
century annual production had reached 32 million
tonnes, comprising 24 million tonnes of primary
aluminium and 8 million tonnes from recycled
metal. This makes aluminium the world’s second
most used metal. A world without aluminium has
become unimaginable. The business traveller, the
tourist and the freight company are dependent on
aluminium, as the commercial aviation and space
industries would never have achieved “lift off”
without it.
The metal makes a key contribution to fuel-effi-
cient engines in cars and trucks as well as to high
speed rail and sea travel. By reducing the vehicles’
weight it cuts down on fuel consumption and
emissions, without compromising the size or the
safety of the vehicles. Aluminium facilitates the
construction of corrosion-resistant and low main-
tenance buildings. Around the world, most long
distance overhead transmission and distribution
lines are made of aluminium.
Aluminium in packaging preserves food quality,
reduces waste and provides convenience for the
users. It can be rolled into ultra-thin foils, which
are light, strong and have unique barrier and insu-
lation qualities. It preserves food, cosmetics and
pharmaceutical products by protecting them from
ultra-violet light, odours and bacteria. Packaging
of all types, including aluminium, saves about 30%
of the world’s food from wastage. Less than an
ounce of aluminium sprayed on a polymer forms a
thin heat-reflecting sheet that can keep a new born
baby warm or save the life of someone on an
exposed mountain top. Aluminium has a particu-
lar advantage for use in arctic climates, as it retains
all its performance properties at low temperatures.
CA
CHINA
RI
RUSSIA
AF
NORTH AMERICA
OCEANIA
ROPE
EAST/CENTRAL EU LATIN AMERICA
WEST
EUROPE ASIA
Production Capacity by Region
The aluminium industry directly employs over a
million people worldwide and indirectly generates
four times as many jobs in downstream and serv-
ice industries.
INTERNATIONAL
REPRESENTATION
As aluminium is a global commodity the industry
has adopted a global approach to sustainable
development issues through its international body,
the International Aluminium Institute (IAI). The
Institute currently has 21 member companies rep-
resenting almost every continent. The split of total
primary aluminium production between OECD
and non-OECD countries is roughly 50:50.
Together the member companies produce around
60% of the world’s primary aluminium and a sig-
nificant proportion of the world’s recycled metal.
The IAI is involving the Chinese and Russian pro-
ducers in its programme activities and aims to
bring the Institute’s coverage to around 90% of
world production. The compact structure of the
industry facilitates the gathering of global per-
formance data and the spreading of good practice
3
Location of Aluminium Smelters
through benchmarking. As a result the IAI is
already monitoring and reporting on a number of
widely used sustainable development indicators
such as energy use, greenhouse gas emissions and
safety performance. Since 1997 the IAI has col-
lected comprehensive benchmarking data on safe-
ty performance in the global aluminium industry
and information is shared on accidents, near miss-
es and their causes. Such benchmarking data is a
driving force for continual improvement. Many
companies have a policy of zero accidents as their
target. The IAI’s Health Committee plans to col-
lect global statistics on occupational illness and
benchmark performance. These statistics will be
regularly updated.
The aluminium industry has a number of elements
in its current environment, health and safety pro-
grammes which would enable it to become a pio-
neer in the field of global industrial reporting on
sustainable development. The IAI is also currently:
Q Working to produce global scrap and re-
cycling statistics which will help identify the
scope for increased recycling;
Q Publishing annual global surveys of the alu-
minium industry’s energy consumption;
Q Publishing an annual global survey of the
industry’s PFC emissions and PFC reduction
performance, backed up by benchmarking
4
graphs and training seminars, to encourage
plants to match the best performers;
Q Conducting regular surveys of land use for
bauxite mining and rehabilitation and report-
ing the results every five years;
Q Collecting annual accident statistics globally
and issuing global benchmarking reports to
encourage participating companies to match
the best performance of their colleagues;
Q Collecting data on the industry’s global eco-
nomic contribution.
The Institute sees sustainable development as a
tool for satisfying stakeholder concerns and meas-
uring business performance. Examples of global
performance indicators on health, environment,
safety, energy consumption and production are
illustrated by the graphs opposite:
LIFE CYCLE
The IAI Board of Directors tasked the Institute with
developing as complete an understanding as possi-
ble of the positive and negative contributions that
aluminium makes to the environmental and eco-
nomic well-being of the world’s population during
the entire “life cycle” of the material. An adequate
knowledge of aluminium’s environmental impacts is
an essential foundation for the aluminium industry’s
 Global Performance Indicators
Global metallurgical alumina production Global energy for metallurgical alumina
production

Megajoules per kg Alumina

40 14
Millions of Tonnes

38
13
36

34
12
32

30
11
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Global primary production
Global electric energy for electrolysis
30 17
Millions of Tonnes

25

kWh per kg Al
16
20

15
15
10

0
14
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Global electrolysis greenhouse gas emissions
Global specific PFC emissions
8
kg CO2-eq per kg Al

(Percent of 1990 Baseline)

7 100
Specific CF4 Emissions

90
6
80
5 70
4 60
50
3
40
2 30
1 20
10
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 0
Figures are CO2-equivalents related to the electrolysiss and included PFC emissions 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Development of fluoride emissions Consumption of fluoride

16 100
14 90
kg F per tonne Al
kg F per tonne Al

80
12 70
10 60
8 50
40
6 30
4 20
2 10
0
0 1940 1950 1960 1970 1980 1990 2000
1940 1950 1960 1970 1980 1990 2000
Not global figures but describe the 1st, 2nd and 3rd generations of aluminium Figures constitute losses to air, water, spent potlinings and waste at a representative
smelting technology smelter.

Global injury rates and lost time severity

Severity rate (Days Lost)

30 200
180
25 RECORDABLE INJURY RATE
160
Injury Rates

20 140
120
SEVERITY RATE (DAYS LOST)
15 100
80
10 60
LOST TIME INJURY RATE
40
5
20
0 0
1997 1998 1999 2000
Rates given per million hours worked

5

SECONDARY
SMELTING
POWER GENERATION
ALUMINA
BAUXITE PRIMARY
REFINING
EXTRACTION SMELTING
Aluminium Production and Life Cycle
effort at continuous improvement. The Institute’s
Life Cycle Committee is working to complete a full
life cycle analysis over four years, covering all the
main applications. This work is supported by advi-
sory committees composed of experts (from mem-
ber companies and aluminium associations) on
environment and energy, life cycles, health and
global health, safety and global recycling. The 20
regional and national aluminium associations from
around the world represent every segment of the
industry and take a leading part in promoting these
initiatives by incorporating them into their local
action programmes. So far reports have been pub-
lished on the use of aluminium in automobiles and
construction.These can be found on the IAI’s web-
site (www.world-aluminium.org). Reports covering
packaging and road/rail transport are being pre-
pared. The quality of the life cycle data and analy-
sis is scrutinised by an independent panel of leading
life cycle experts.
Aluminium stands to benefit from the sustainable
development approach because its real impact on
the environment can only be judged in terms of a
full cradle-to-grave life cycle analysis. It is a sus-
tainable material, whose recyclability and applica-
tions justify the high energy requirement of pri-
mary aluminium production. During an automo-
bile’s construction a kilogram of aluminium can
replace two kilograms of conventional heavier
materials, thus contributing to the reduction of the
6
SCRAP
COLLECTION
PRODUCT
LINE
PROCESSING; MANUFACTURING
Rolling Extrusion etc INDUSTRY
vehicle’s weight and therefore its fuel consump-
tion. This means that, over the vehicle’s lifetime,
every kilogram of aluminium used saves the equiv-
alent of twenty kilograms of CO2. Current esti-
mates show that globally there will be, by the year
2020, a 35% increase in CO2 emissions from all
vehicles. An increased use of aluminium would
reduce this figure to 28%, helping to make the
transportation sector more sustainable.
ENERGY EFFICIENCY
The fact that energy represents a large part (some
25%) of the costs associated with primary alumini-
um production means that producers have always
had a vested interest in minimising electricity con-
sumption. The IAI publishes an annual Survey of
Global Energy Consumption, which has, over the
years, recorded a considerable reduction in energy
consumption per tonne of aluminium produced.
Smelters in the 1990s used a third less electricity
per tonne than equivalent plant in the 1950s and
that trend of improving energy efficiency continues
today.
The IAI seeks to encourage continuing improve-
ment in energy efficiency by circulating energy
benchmarking statistics. These enable smelters to
improve their performance by comparing it with
the best energy consumption figures achieved by
smelters around the world, with the same technol-
 35
30
Million Tonnes
25
20
15
10
0
1950 1955 1960 1965 1970
World Aluminium Usage Primary Production
1950-1999
ogy. The lightness of aluminium products con-
tributes to fuel savings and reductions in emis-
sions. Air, rail and road transport all benefit from
these savings, both directly and as a result of alu-
minium packaging and materials being lighter
than other materials.
Energy costs are also an incentive for the industry
to optimise its recycling at a time when some gov-
ernments are introducing compulsory recycling
for cars and packaging. Recycling requires only
5% of the energy and produces only 5% of the
CO2 emissions compared with primary produc-
tion. Recycled metal already satisfies around a
third of world demand for aluminium and it is an
ever growing proportion of total aluminium pro-
duction.
Aluminium is an “energy bank” - the original ener-
gy input can be recovered again and again every
time the product is recycled. Aluminium can be
recycled profitably and repeatedly without loss in
quality. Many products, for example automotive
castings, are made mainly from recycled metal.
1975 1980 1985 1990 1995 1999
Scrap Recovery Total Usage
GREENHOUSE GASES
REDUCTION IN THE
FORM OF
PERFLUOROCARBONS
(PFCs)
Perfluorocarbons (PFCs) are produced during
brief upset conditions of the electrolysis process
and the Institute carries out annual surveys of
these emissions. It also sends out benchmarking
reports, allowing individual plants to compare
their performance with other de-identified plants
which use the same technology. The Industry has
also appointed a PFC Consultant to hold seminars
and carry out measurement programmes to
encourage the wider adoption of good operating
practices. The preliminary results of the IAI sur-
veys for the years 1998, 1999 and 2000 for IAI
member companies reporting anode effect data
indicate a continuing declining trend with PFC
emissions, as carbon dioxide equivalents, reduced
by 60% per tonne of production since 1990.
Those companies responding to requests for
anode effect data increased from 61% of the
world’s primary aluminium production in 1990 to
66% in 2000. Worldwide estimates of PFC emis-
sions have been based on an extrapolation of the
IAI survey data using knowledge of the reduction
technologies at those facilities which have not
reported anode effect data. These results show
that, while worldwide aluminium production has
7

Bales of crushed aluminium cans
increased by around 24% since 1990, there has
still been an overall reduction in the total annual
emissions of PFCs.These reductions in PFC emis-
sions to the atmosphere are estimated to amount
to over 34 million tonnes as carbon dioxide equiv-
alents, a reduction of about 39% from the 1990
baseline for worldwide PFC emissions. The sur-
veys also show that smelters in the developing
world, which often use state of the art technology,
are performing as well as, if not better than, some
plants in Europe or North America.
ONGOING CHALLENGES
FACING THE INDUSTRY
ON THE ROAD TO
SUSTAINABLE
DEVELOPMENT
In an effort to achieve its sustainable development
goals, the Industry needs to focus on the following:
Q Continuing the reduction programme for
greenhouse gas emissions;
Q Increasing the recycling rate of used alumini-
um;
Q Minimizing the use of hazardous or toxic
materials and finding alternatives to land fill
disposal for spent pot lining and bauxite
residues;
Q Achieving further energy efficiency improve-
ments;
Q Establishing consistently understood and
applied sustainability metrics that can be
8
used as leading indicators of progress;
Q Developing performance indicators on the
social aspects of sustainability;
Q Encouraging an industry wide approach to
sustainability through awareness training,
benchmarking, monitoring and reporting.
Aluminium producers are continuing to develop
their own models of sustainability which they are
integrating into daily company operational man-
agement practice. Many examples are to be found
in the main report.
LEGACY FOR FUTURE
GENERATIONS
There is no cause for concern over possible deple-
tion or exhaustion of the raw material, as 7.3% of
the earth’s crust is made up of aluminium com-
pounds. The known reserves of high quality baux-
ite, the ore from which most aluminium is pro-
duced, are sufficient to provide over 300 years
supply. The use of mineral resources for the pro-
duction of aluminium is quite modest. Between 4
and 5 tonnes of bauxite are required to produce
one tonne of aluminium. Apart from evaluating
the size of the available mineral reserves, it is also
important to take account of the metal’s recycla-
bility when considering the fair distribution of
resources between generations.To encourage more
recycling and so ensure that aluminium makes its
full contribution to sustainable development, the
IAI has created, in collaboration with the alumini-
um recycling industry, a Global Aluminium
Recycling Committee. Aluminium is so easy to
recycle again and again, that it maintains a high
value at the end of a product’s life. Aluminium
therefore satisfies more than almost any other
material the requirement for a fair distribution of
resource utilisation between generations. The
largest known and most rapidly growing stocks of
aluminium are “metal in use”.These stocks of alu-
minium represent a permanent asset for society,
because aluminium is not bio-degradable and does
not rust away. It is estimated that while annual
production of primary aluminium from bauxite is
24 million tonnes per annum, there are still 400
million tonnes of the metal in use which will even-
tually be available for recycling. Aluminium is
essential for modern living and is an investment for
future generations.

IMPLEMENTATION OF THE ECONOMIC,
ENVIRONMENTAL AND SOCIAL
DIMENSIONS OF SUSTAINABLE
DEVELOPMENT
THE STRUCTURE OF
THE INDUSTRY
The primary aluminium industry is relatively com-
pact with 20 companies representing 65% of the
world’s production. Most companies are single
metal companies. Only 20% are involved with
other metals or are multi-metal mining companies.
Over half the world’s production is produced by
large vertically integrated companies, who are
involved with both recycling and mining the raw
material bauxite. Production capacity is present
on almost every continent and many of the most
modern smelters are to be found in non-OECD
countries, which are responsible for around 50%
of the world’s production.
CONTRIBUTION TO THE
OVERALL ECONOMY
The aluminium industry makes a significant con-
tribution to the global economy as well as to many
individual national economies in over 30 coun-
tries. The commercial aviation industry would
never have taken off without aluminium. The
Wright Brothers’ first aeroplane, which flew in
1903, had a four-cylinder, 12-horsepower auto
engine, modified with a 30-pound aluminium
block to reduce weight. Aluminium now compris-
es about 80% of a Boeing 747 aircraft’s unladen
weight. The civil aviation industry transports the
equivalent in value of a third of the world’s trade
goods. In 1999 airfreight amounted to 350 billion
economic dimension
CONTRIBUTION TO
GLOBAL FOOD SUPPLY
Aluminium foil makes a major contribution to
conserving the world’s food supply. It is calculat-
ed that all types of packaging save about 30% of
the world’s food from wastage. Recent studies have
shown, for example, that when considering the
complete lifecycle of coffee, packaging has a far
less significant environmental impact than the cul-
tivation, processing and roasting processes. Only
10 percent of the energy consumed between the
production and use of foodstuffs is attributable to
packaging; almost 50 percent of the energy con-
sumed is used to produce the foodstuffs and about
35 percent is used for their preparation and han-
dling. Packaging saves ten times more waste than
it creates. If packaging fails to fulfil its proper
function of preserving and preventing contamina-
tion its contents will inevitably deteriorate. All
energy and raw material resources used to produce
and distribute the contents would then have been
wasted.
Impact on the Food Supply System
ENERGY
93% 7%
GLOBAL WARMING
94% 6%
ACIDIFICATION

tonne-kilometres. The airlines transported one 95% 5%

and half billion passengers in 1999. 24 million WASTE
people are currently employed around the world in 94% 6%
the civil aviation and tourism industries. 0% 20% 40% 60% 80% 100%
Aluminium reduces the weight of cars, truck,
Note: Food supply system includes coffee FOOD SUPPLY CHAIN
trains and ships, which means they can carry more
cultivation and raw coffee transport, Impact of Coffee
and cause less wear and tear on the road and rail production, consumption, disposal and
packaging processing. Impact of packaging
infrastructure.
Source: European Aluminium Foil Association

9
Aluminium foil is often used in combination with
other materials, such as paper and plastic. In
Germany every effort is made to remove the
organic materials from the aluminium, and thus
recover the aluminium for the production of high
quality aluminium products. The organic compo-
nents are used as materials or energy. However, the
way that aluminium composites are recycled is
often dependent on national legislation. If alu-
minium composites or aluminium foil are inciner-
ated they contribute to energy production because
they have a calorific value of 31 MJ/kg, higher than
that of coal.
JOB CREATION
The aluminium industry provides employment,
often in remote areas, where job opportunities are
Billet is raised from the casting pit
scarce. While the industry does not employ child
labour, it does provide opportunities for young-
sters to become involved in apprenticeships and
introduction to work schemes. It is estimated that
the aluminium industry itself directly employs over
a million people world-wide and indirectly gener-
ates approximately 4 times as many jobs in down-
stream and service industries. This total includes,
for example, 3,000 aluminium companies,
employing 235,000 in Europe; 42,000 in Japan;
17,500 in Australia and 21,000 in Canada. The
US Aluminium Industry operates about 300
plants in 40 states, employing 143,000 men and
women and generating approximately US$5 bil-
10
lion in total payroll. In Brazil the aluminium
industry provides 3% of the exports and 51,000
jobs. It represents about 1% of Brazil’s total GDP
and generates almost US$1 billion in tax revenue.
Investments totalled US$2.7 billion in the three
years 1997-1999. Canada earned 4.3 billion
Canadian dollars from aluminium exports in
1998. Aluminium is Australia’s second largest
commodity export worth over 6 billion Australian
dollars in 1999 while the Norwegian aluminium
industry generates 2% of Norway’s GNP.
USA
The aluminium industry in Washington state sup-
ports $4.4 billion of output, 29,600 direct and
indirect jobs and $1.4 billion of personal income.
Much of this economic benefit accrues to those
rural communities where some of the industry’s
plants are located.
Q Total sales for the companies were $2.6 bil-
lion;
Q The industry directly provided 7,510 jobs in
1998 and indirectly generated another 22,090
jobs for a combined overall employment
impact of 29,600 jobs in Washington State;
Q The industry’s employment multiplier is 3.9,
which is 0.2 higher than the aerospace indus-
try multiplier and 0.3 higher than the state
average multiplier;
Q The industry supported an additional 46,030
state residents; every aluminium job directly
and indirectly supported 6.1 state residents.
Canada
The 2001 production capacity of the aluminium
smelters in Canada of 2,710,000 tonnes of alu-
minium is the result of massive investments of
approximately $12 billion made in capital equip-
ment over the past fifteen years by the three
Canadian-based companies. As a result, Canada
ranks third among major producing countries with
more than 10% of world production and is also a
major exporting country with 75% of total
Canadian production sold on foreign markets. In
addition to the 15,000 well paid jobs that the
industry directly provides, annual operating
expenditures devoted to operating its production
facilities are the source of approximately 25,000
indirect jobs. In addition, each dollar spent by the
industry generates almost $2.50 in direct and indi-
rect benefits for the national economy, a total that
is much higher than that generated by the tourist
industry or farming. Industrial activities by the
three aluminium producers combine to create a
tax base that allows the Canadian and Quebec
governments to levy almost a billion dollars in
taxes annually.
the nation’s largest taxpayers, contributing over 10
percent of Ghana’s total tax receipts for a number
of years. Volta River Authority’s sales to VALCO
make electricity one of Ghana’s top five exports.
As the largest US investment in Ghana, VALCO
has become the fifth largest contributor of foreign
exchange to the Ghanaian economy.

Mozambique
Russia
The new Mozal aluminium smelter is the largest
The workers wages in the Russian aluminium investment in Mozambique since it gained its
industry exceed the regional average by 3 to 4 independence from Portugal in 1975. It employs
times. 750 people and nine out of every ten workers are
Mozambicans. At a stroke the plant increased
Mozambique’s gross national product by seven
Jamaica
percent and doubled its exports.

Jamaica is one of the world’s largest bauxite and

alumina producers. The aluminium industry Cameroon
accounts for about 50 percent of Jamaica’s exports
and is thus the country’s second largest source of The output of Cameroon’s aluminium producer,
foreign currency. It provides direct employment, Alucam, represents 1% of the country’s gross
with well-paid jobs, for over 4,000 people. For domestic product. Alucam provides around 65%
example, the least qualified workers earn up to of Cameroon’s total exports.
four times the legally required minimum wage.
Farming on land that is not yet being - or is no Aluminium ingot bundles waiting to be shipped
longer being - mined for bauxite, results in the
aluminium industry also being the island’s largest
producer of milk and meat.

Suriname

The aluminium industry in Suriname generates

$350 million annually, accounts for 70% of the
country’s exports and is the major source of for-
eign currency. The industry generates 40% of the
government’s income tax revenues. The industry
directly supports 2500 workers with a multiplier of
4. Average wages are about 4 times the country
average. Ninety nine percent of the workforce are
native Surinamese.

Ghana

The Volta Aluminium Company is the largest

manufacturing employer in the nation, employing
1,200 people over 99% of whom are Ghanaians.
Through its tolling contracts, the company gener-
ates upwards of $200 million annually for the
Ghanaian economy. VALCO has become one of
environmental dimensions
Location of Major Bauxite Mining areas
INTRODUCTION
The industry’s main sustainability challenges are
natural resource extraction, habitat impacts, ener-
gy use, emissions and waste disposal. The IAI
Board of Directors gave a mandate for a full life
cycle study of the metal to define its positive and
negative impacts on the global environment.
Considerable progress has already been achieved
with this audit and with mitigating the negative
and boosting the positive impacts by the expert
advisory committees concerned with the environ-
ment, energy use and life cycle methodology.
These committees are composed of senior envi-
ronmental, health and safety managers from com-
panies and aluminium associations from around
the world.
A 140 tonne capacity haul truck
being loaded with bauxite at
Comalco’s Wepa mine, North
Queensland
LAND USE
The use of mineral resources for the production of
aluminium is quite modest as compared with
many other materials. Between 4 and 5 tonnes of
bauxite are required to produce one tonne of alu-
mina and two tonnes of alumina are required to
produce one tonne of aluminium metal. There are
numerous bauxite deposits, mainly in tropical and
subtropical regions which are generally extracted
by open cast mining from strata, typically some 4-
6 metres thick under a shallow covering of topsoil
and vegetation. In most cases the topsoil is
removed and stored.
The IAI’s first Bauxite Mine Rehabilitation Survey
was prepared in 1991, covering 65% of total world
bauxite production. It described the overall impact
of bauxite mining on the environment and the
rehabilitation programmes in place at 18 mining
locations. A second survey was carried out in 1998
and covered 27 mining locations covering 72% of
the total world bauxite production. The results of
both of these surveys indicate that the bauxite min-
ing industry is broadly in harmony with the
approach set out in the United Nations
Environment Programme (UNEP) “Guidelines
for the Environmental Management of Alumina
Production”:
Q Bauxite mining takes place in four main cli-
mate groups, in 1998 the distribution was
Temperate 0.5%, Mediterranean 39%,
Tropical 48% and Subtropical 13%. The veg-
etation types disturbed each year are mainly
76% forests, 19% agriculture and pasture and
2% shrubland. Post-mining land use shows
70% being returned to native forest, 3% to
commercial forest, 17% to pasture and agri-
culture, 7% used for urban and industrial
development, housing and recreational pur-
poses.
Q The area disturbed for mine development has
increased by some 14% over the past decade
In 1991 it was about 1,400 hectares and by
1998 it had risen to 1,591 hectares. The out-
put of bauxite ore per hectare had increased
from 52 thousand tonnes per hectare to 56.5
thousand tonnes per hectare in 1998. Of the
total area mined per year in 1998, 80% was
identified as wildlife habitat and 175 hectares
was tropical rainforest. The majority of mines
have introduced measures such as wildlife
reserves and corridors, wildlife research and
monitoring programmes. In Jamaica the
industry has created orchid sanctuaries to
help preserve the local orchid species. 577
hectares of mined area were identified as pos-
Rehabilitated Land Use
O
URBAN
TH
LIVESTOCK DEV
ER
PASTURE
AND CROPS
MMERCIAL FOREST NATIVE FOREST
CO
sessing important fauna species, of these 527
hectares or 91% will be restored to wild life
habitat by the planting of suitable vegetation.
Companies representing 60% of global
bauxite production had their own plant nurs-
eries for the purposes of re-afforestation and
revegetation.
Q The Second Survey indicates continuous
improvement. Rehabilitation plans are in
place at most mines (25 out of 27 - 90%, as
compared to 10 out of 18 - 55%, in 1991). A
very high proportion of mine managements
have long term plans for the mine areas that
will leave a self-sustaining ecosystem in place,
when all mining operations have been com-
pleted.The current rehabilitation rate is 1,256
hectares per annum.
Q All those surveyed actively supported their
local community. Almost 90% funded infra-
structure development. 87% of companies
were involved in funding local schools and
improving the local infrastructure. 69% of the
companies provided help for community
medical services, the arts, cultural develop-
ment and the preservation of local culture.
81% of the mines have an outreach pro-
gramme to benefit local businesses and con-
tractors. Around 70% of the mines have
apprenticeship programmes, 50% have schol-
arship schemes and 62% have youth support
programmes. 81% of the mines funded parks
and recreational facilities. Bauxite mines also
continue to provide help to indigenous com-
munities with measures ranging from the
development of nurseries to drinking and irri-
gation wells to adult literacy training.
Q Exporting bauxite mines generated about
US$1.4m in revenue per hectare mined in
1998. A typical mine employs about 200
people for each million tonnes/year of bauxite
produced. One hectare provides employment
for about 11 people. Thus the local commu-
nity wants the mine for the employment and
for the assistance to community amenities it
offers, while governments want the mines for
infrastructure investment and tax revenue
reasons. These social benefits are comple-
mented, according to the survey, by an ever-
greater awareness of environmental factors by
the companies, which results in the mined
areas being restored to an environmentally
friendly condition.
13
Alba’s Reduction Line 4 utilising Pechiney technology

ENERGY EFFICIENCY Energy Consumption for Primary Aluminium

Production
60
Production of primary aluminium requires signifi-
kWh per tonne of aluminium

cant energy and the industry has a long tradition of 50

self-improvement in this area. The average energy
40
consumption and subsequent emissions per tonne
of production have fallen by 70% over the past 30
hundred years, due to research and continuing
20
process developments. In the 1950’s it took on
average about 21 kWh (kilowatt-hours) to make a 10
kilogram of aluminium from alumina. In 1999 it
0
took one of the newest smelters just 13 kWh, a 1899 1909 1919 1929 1939 1949 1959 1969 1979 1989 1999
decrease of nearly 40%. The IAI carries out an
annual energy consumption survey covering 70%
of the world’s primary production facilities. The
which is clean, CO2 free and renewable. In certain
results are benchmarked to encourage improved
countries like Brazil, Norway, Canada and Russia
performance. The following graph shows a steady
the percentage is much higher (e.g. over 80% for
reduction in electrical power used in primary alu-
Russia and 100% for Norway.) The global distri-
minium production from 1899-1999.
bution of energy sources is as shown in the follow-
ing pie chart.
ENERGY SUPPLY
Some aluminium smelters are located in areas
More than 55 per cent of the world’s primary alu- where there is a natural surplus of energy for which
minium is produced using hydro-electric power there is insufficient economic local use. Also when

14
Energy Sources Drinking water is supplied by the Chubut River
that flows 70 km away from the town and is there-

NU
OIL
fore a scarce and expensive resource. Puerto

CL
NATURAL

E
AR
GAS Madryn has become an important area for tourism
OTHERS because of its wildlife (whales and birds) and
COAL
seashore. The community is also working on dif-
ferent projects, with the object of minimising the
spillage of liquid effluents into the gulf.

The effluents generated from the sanitary services

energy shortages develop, power can be diverted
from aluminium electrolysis to supply the power
grid, thus helping to reduce peak period prices for
other power users and reduce the need for the con-
struction of marginal peak period electrical gener-
ating capacity. This is the case where aluminium
producers provide power to the grid at peak times
(e.g. Quebec/Brazil) or shift production from alu-
minium for longer periods as happened, for exam-
ple, in the US North West, British Columbia and
Brazil, to free up electricity for other uses.
of the smelter buildings and the washing of vehi-
cles are first processed in order to eliminate oils
and grease and precipitate fluorides.They are then
aerobically oxidised by complete mixing and
decanting. The treated effluents are used to water
the 15 hectare green area within the smelter
boundaries. On rainy days the treated liquid efflu-
ents that cannot be re-used for watering the green
An environmental officer monitors water
quality at the Boyne Island smelter

The district heating project at the world’s largest

aluminium rolling mill, Alu Norf in Germany, is a
good example of improved energy efficiency. The
surplus heat from the waste cleaning system on 13
melting furnaces is used for heating by 6,500 peo-
ple on a housing estate a few kilometres away. It
replaces up to 3.9 million cubic metres of natural
gas and thus avoids about 10,000 tonnes of CO2
being released into the atmosphere every year.

WATER USE
Water use will be an important consideration in
the full life cycle studies now being undertaken by
the IAI on behalf of the aluminium industry.Water
is used in the aluminium industry for cooling in
certain processes and sanitary purposes. The local
programmes to reduce water consumption vary
from location to location depending on the ease of
access to water and on water consumption costs.

An example of good practice is that of an alumini-

um smelter in Puerto Madryn in Argentina which
has implemented a local programme with the goal
of zero spillage of liquid effluents into the sea. The
town of Puerto Madryn has a population of
65,000 and is on the shores of Golfo Nuevo in
Patagonia. This is a large region with an arid cli-
mate. Average annual rainfall is 200 mm.
areas, are accumulated in an artificial pond for the
watering of a 24 hectare forested area, planted by
the smelter. This forest also receives treated liquid
effluents generated by the sanitary services of the
town, especially during spring and summer, con-
tributing towards water re-use and the reduction of
spillage to the sea. As a next step the aluminium
producer is planning a project that will allow the
reuse of up to 40% of the liquid effluents generat-
ed in the town. The study consists of replacing the
drinking water that is presently used during alu-
minium solidification, for motor cooling and steam
generation, with biologically treated effluents that
are submitted to an inverse osmosis process to
reduce their soluble solids content. The synergies
that sustain this project are the following:
Q Reduction in the consumption of drinking
water for industrial purposes, liberating 2000
m3 /day of the water supply public service
capacity, that will benefit the growth of the
town in the future;
Q Reduction in the costs of the town liquid
effluents treatment, as the implementation of
the project will avoid the electromechanical
pumping of approximately 4000 m3 /day of
liquid over a 50 m elevation;
Q 50% expansion of the company’s forested
area in order to reuse the water, discarded by
DEVELOPMENT IN FLUORIDE EMISSIONS FROM
ALUMINIUM SMELTERS KILOGRAM FLUORIDES (GAS AND
PARTICULATE) PER TONNE OF ALUMINIUM PRODUCED
1st Generation Plants 1940 - 1955 12 -15
kg per tonne
2nd Generation Plants 1955 - 1975 2-6
kg per tonne
3rd Generation Plants 1975 - today 0.5 - 1
kg per tonne
Plants with modern control systems to remove and
recycle the fluorides do not generate local con-
cerns. Optimum fume collection from the elec-
trolytic cells, coupled with specific workplace-
related training of the employees should also lead
to further improvement in the future. The follow-
ing graphs illustrate the reduction of atmospheric
fluoride emissions in Norwegian smelters from
1960 to 2000, despite the increase in production
from 185,000 tonnes per year in 1960 to
1,030,000 tonnes in 2000.
Specific Emission of Fluoride to the atmosphere
5.4
kg fluoride per tonne of aluminium

the inverse osmosis process, for watering;

Q Considerable contribution towards the min- 4.4
imisation of effluents spillage to the sea, pro-
posed by the Puerto Madryn community.

2.2

CONTROL OF
0.75
FLUORIDE EMISSIONS 0.46
1960 1970 1980 1990 2000
For many decades fluoride emissions (as gases and
particulates) were considered to be the single most Total Emission of Fluoride to the atmosphere
important pollutant from aluminium smelters.
Depending on the local conditions, fluorides could 2.2
have a serious environmental impact on the local
1000 tonne per year

flora and fauna. Fluorides accumulate in vegeta-

tion and can cause damage to coniferous trees. 1.4
They also accumulate in the teeth and bones of
1
ruminants eating fluoride-contaminated forage.
The following table shows the development in flu- 0.6
oride reductions through 3 “generations” of alu- 0.4
minium smelters.
1960 1970 1980 1990 2000

16
 In Russia, over the last decade, specific energy con-
sumption decreased by 11% and hydrogen fluo-
ride and sulphurous anhydride emissions were
reduced by 45% and 59% respectively. In the case
of the majority of plants, around the world, which
use modern control equipment with efficient gas
collection and wet/dry scrubbing systems, the
damage from fluoride emissions to surrounding
flora and fauna has largely been eliminated.
Fluoride control systems are operated as closed
loop systems with no residual wastes.
GREENHOUSE GASES
REDUCTION
The industrial processes of the primary aluminium
industry in 1997 emitted 110 million tonnes of
CO2 equivalents, 50 million tonnes (45%) of
which originated from two perfluorocarbon com-
pounds (PFCs). The Institute carries out annual
surveys of PFC emissions and sends out bench-
marking reports, so individual plants can compare
their performance with other de-identified plants
using the same technology. A number of compa-
nies, representing 63% of world aluminium pro-
duction, have participated in these surveys. The
data they have provided show the specific emission
rate of CF4 to have been reduced by 60% between
1990 and 2000. Over the same period, the specif-
ic emission rate for C2F6 has been reduced by
62%. PFCs have the greenhouse gas warming
potential of 6,500 and 9,200 times that of CO2 for
CF4 and C2F6 respectively. Estimates of worldwide
PFC emissions, based on extrapolation of the data
from the IAI survey, show a reduction in total
emissions of both PFC compounds to the atmos-
phere of about 39% as carbon dioxide equivalent
emissions, amounting to 34 million tonnes of car-
Specific PFC Emissions
100
90
CF4 Emissions per tonne AI
(Percent of 1990 Baseline)
80
70
60
50
40
30
20
10
0
1990 1991 1992 1993 1994 1995 1996
bon dioxide. This is one of the few examples
where the global emissions of a greenhouse gas
from an industry sector are actually in decline.
The Industry has also appointed a PFC
Consultant to hold seminars and carry out meas-
urement programmes to encourage the wider
adoption of good operating practices. The Surveys
show that smelters in the developing world are per-
forming as well as, if not better than, some plants
in Europe or North America. Voluntary agree-
ments between government and industry have
played a significant role in encouraging this reduc-
tion in PFC emissions in many countries such as
Australia, Bahrain, Brazil, Canada, France,
Germany, New Zealand, Norway and the UK.
Together they represent around 50% of world pro-
duction.
ALUMINIUM IN
TRANSPORT - A
SUCCESS STORY
Energy use and the CO2 emissions caused by
transport have increased significantly. This
increase has been caused by the rapid growth in
the size of the worlds vehicle fleet. More and more
people and goods are being transported over
longer distances in heavier vehicles. Cars, trains,
trucks and buses have become heavier in part
because of the increased use of electronics, com-
fort equipment (air conditioners) and safety equip-
ment (e.g. air bags and crash elements in cars) and
in part because of demands for additional space
and capacity.
The manufacturers of vehicles and their suppliers
are seeking to reduce the environmental impacts
caused by transport. The aluminium industry
helps to meet this challenge with its contribution
to light-weighting, improved performance and to
improved safety. Different life-cycle assessments
have shown that 1 kg of aluminium in a car body,
replacing 2 kg of steel in a conventional car body,
saves, during the life-time of the car, about 20 kg
of greenhouse gas emissions (in CO2 equivalents).
In addition if, for example, 1000 kg of greenhouse
gas is saved by the use of less gasoline in a light-
weight vehicle, this also means a reduction of other
potential environmental impacts, including:
1997 1998 1999 2000 Q 15800 MJ of crude oil resources;
17
Q 933 kg of water;
Q 1.8 kg ethylene equivalents of ozone forming
hydrocarbons;
Q a saving of 2.1 kg SO2 equivalents of acidifi-
cation potential.
The global use of aluminium in the automotive
sector has increased from 2.5 million tonnes in
1991 to nearly 4.5 million tonnes in 1999. This
use of aluminium for automobiles in 1999 alone
has the potential, over the lifespan of the vehicles,
to reduce overall GHG emissions by 90 million
tonnes, assuming that all this aluminium was used
to replace denser materials. In addition, since alu-
minium has a high strength to weight ratio and a
superior crash performance in terms of the specif-
ic energy absorption, vehicles designed to use alu-
minium components can achieve the benefits of
light-weighting without reducing the safety of the
passengers or the performance of the vehicle. It
also means increased safety for passengers in other
vehicles involved in collisions with these lighter
aluminium intensive vehicles.
For the first decade of this millennium the use of
aluminium in cars is predicted to double because
of more cars world-wide and more aluminium in
cars. The US automobile fleet contained 116 kg of
Japanese Bullet Train
aluminium per vehicle in 2000 and is expected to
contain 159 kg by 2010.The cumulative impact of
using aluminium in this way will yield greenhouse
gas savings of 180 million tonnes per year by 2010.
But there are still even greater opportunities,
which could reduce GHG emissions by five times
as much. Vehicles such as buses and long haul
trucks operate over much longer distances during
their lifetimes, often five times longer than that of
a typical passenger car. The use of 1 kg of alu-
minium replacing 1.5 kg of steel in a typical bus or
truck reduces the greenhouse gas emission by
about 40 kg over its lifetime (i.e. twice as much as
for a car). Finally, a railroad train, during its life-
time, runs a distance of between 30 and 50 times
the distance of a typical car. The use of 1 kg of alu-
minium replacing 1.6 kg of steel in a railway car
reduces the greenhouse gas emissions by more
than 200 kg (i.e. ten times as much as for a car)
Thus the benefits of using more aluminium for
these applications are even greater. The reduction
in the “dead weight” (empty weight) of ships
through the use of lighter weight aluminium can
also result in capacity increases per vessel trip, or
energy reductions per trip, either of which results
in energy savings and greenhouse gas reductions.
Current estimates show that globally there will be
a 35% increase in CO2 emissions from all vehicles
 In Europe aluminium has high recycling rates,
ranging from 41% in beverage cans to 85% in con-
struction and 95% in transportation. In Japan the
recycling rate for cans was 79% and Brazil
achieved 78%. A kilo of used cans is worth more
to collectors than 15 kilos of plastic or 10 kilos of
paper. Americans recycled 62.6 billion aluminium
cans in 2000, for a beverage can recycling rate of
62%. For many groups, used aluminium cans turn
into new-found money thanks to aluminium can
industry initiatives. Initiatives include the
American Aluminum Association’s partnership
with Habitat for Humanity called “Aluminum
Cans Build Habitat for Humanity Homes”,
designed to boost public interest in aluminium can
recycling while helping volunteers and families
Incat Fast Ferry build homes.

Aluminium is durable, does not rust or need paint-

by the year 2020. An increased use of aluminium
would reduce this figure to 28% and thus help
towards making the transportation sector more
sustainable.
ing, which means reduced maintenance costs.
Most of the aluminium ever produced is still in
use, between 400 and 500 million tonnes. It can
be recycled and re-used again and again without
any deterioration in quality. Aluminium products

RECYCLING
A 27 tonne ingot made from approximately 1.5
million used drink cans
The increasing use of recycled metal saves both
the energy and mineral resources needed for pri-
mary production. Once aluminium is used, it is
not lost to society. It can be recycled again and
again by present and future generations, using only
about 5% of the energy required for primary pro-
duction and generating only 5% of the greenhouse
gas emissions. Anything made of aluminium can
be recycled repeatedly; not only cans, but also alu-
minium foil, plates and pie moulds, window
frames, garden furniture and automotive compo-
nents. All can be melted down and re-used. Scrap
aluminium has significant value and commands
good market prices. Aluminium companies have
invested in dedicated, state of the art secondary
metal processing plants to recycle aluminium. In
the case of beverage cans, the process uses gas col-
lected from burning off the coating to preheat the
material prior to processing. The recycling of alu-
minium beverage cans eliminates waste. It saves
energy, conserves natural resources, reduces the
use of city landfills and provides added revenue for
recyclers, charities and local town administrations.
The aluminium can is therefore good news for the
environment and good for the economy.
 Mining and metals companies were among the
ALUMINIUM CAN RECYCLING LOOP first to introduce the now common practice of
building and maintaining schools, clinics and
BEVERAGE
BOUGHT sports facilities for their employees. It is not
DELIVERED TO IN STORE uncommon for them to be made available to other
STORE
EMPTY CANS people living in the vicinity of the company loca-
FILLED WITH TAKEN TO tion.
BEVERAGE RECYCLING
CENTRE
A number of aluminium companies are engaged
with governments, non-governmental organisa-
MADE
INTO tions, academics and other like-minded companies
CAN in pursuit of a better understanding of their
MELTED respective roles in society. The companies help to
ALUMINIUM ROLLED DOWN AT fund research activities and participate in the
INTO SHEET RE-CYCLING
PLANT research. They help to guide the processes and
interpret the results. They sponsor global polls and
focus groups in order to understand better and be
able to respond to public concerns about their
operations and products. Several aluminium com-
have a longer life and require less maintenance panies have been selected as leaders in the field of
than other building materials and thus conserve sustainable development by Dow Jones, as well as
energy and resources. With the use of aluminium by Innovest and other ethical funds analysts.
in construction, its initial energy-intensive manu-
facture is more than compensated for in use phase
and can be fully recycled on demolition. Used in STAKEHOLDER
packaging, the good thermal conductivity of the ENGAGEMENT
aluminium leads to energy savings when cooling
drinks, for example, or heating up ready made In many parts of the world aluminium companies
meals. Furthermore, the energy first used to pro- have developed broad-based stakeholder consulta-
duce the metal is not lost. It is embodied in the tive mechanisms. These bodies are composed var-
products and is then “reactivated” during recy- iously of representatives of local communities and
cling. community organisations, governments and

The IAI and its counterpart associations from the

recycling industry have established a Global Aluminium Smelters site at Tiwai Point, New Zealand
Aluminium Recycling Committee, with represen-
tatives from every region of the world, to encourage
higher recycling rates. At present approximately a
third of world demand is met from recycled metal.
The Committee is monitoring scrap flows and
recycle rates in an effort to establish the basis for
estimating future scrap availability. This is depend-
ent on when current products with medium to long
life span enter or re-enter the scrap chain. Much
better global scrap statistics are required to improve
the use of available scrap material and ensure that
valuable metal is not going to landfill. A study is
also being conducted into the content of landfill
sites in the various regions.

20
social dimension
industry employee groups. Companies will not molten metal, where the consequences of not fol-
proceed with major projects without the broad- lowing the good practices can be fatal. Control of
based support of the community, as expressed these hazards is the key to reducing the risk of
through such consultative structures. In addition injury and illness in the aluminium industry. The
to communities, social obligations are also recog- figures used by the IAI for benchmarking are com-
nised to include other groups such as employees, mon safety indicators including:
customers and suppliers. An increasing number of Q Fatal Accident Rate (Fatal Accidents per 100
companies are adopting corporate ethics codes, million hours worked);
which are periodically revised in response to Q Lost time Accident Rate (Lost time
changing public expectations. Accidents per million hours worked);
Q Recordable Accident Rate (Lost time
Accidents + RestrictedWork Cases + Medical
Treatment Cases per million hours worked);
SAFETY & HEALTH Q Severity Rate (days lost per million hours
worked);
There are safety and health related risks involved Q Severity (days lost per Lost time Accident);
in all the processing steps, from bauxite mining
through alumina refining, aluminium electrolysis Since 1997 the IAI has collected comprehensive
and most fabrication processes. It is therefore nec- benchmarking data on safety performance in the
essary to identify systematically all the hazards, global aluminium industry and shared the results
have standards of good practice, committed man- within the industry. Such information is a driving
agement and systems for a structured follow up in force for continual improvement. The best per-
all the different phases. There are coordinated formers want to maintain their leadership and
safety initiatives on particular hazardous activities those lagging behind will be motivated to set their
such as the operation of mobile equipment, lifting own improved performance goals. In addition to
devices, material handling, combustion, high volt- benchmarking performance another important
age equipment as well as the handling of bath and activity is to share information on accidents and

Safety Performance Benchmarking 2000 Accident Rates by Plant Type and Year
50
Recordable Accidental Rate - Numerical Value Only
Accident Rate (Accidents per million hours worked)

J Restricted Work/Medical Treatment Accident Rate

J Lost Time Accident Rate
40

35

30 30
28
27 27

22
20

15

12
10
8 8

0
Smelters Smelters Refineries Refineries Mines Mines All Plants All Plants All Plants All Plants
1999 2000 1999 2000 1999 2000 1997 1998 1999 2000

21
 why they happened. The aim is to learn how to
prevent any recurrence in accordance with the phi-
losophy that each accident is one too many and
that if one ignores the past we are condemned to
repeat it.
The previous graph shows the trend in average
accident rates since 1997 in the areas of mining,
refining and smelting, all of which show improve-
ment.
In 1999 the IAI’s Board of Directors decided that
the names of the best performing mines, refineries
and smelters should be released, as should the best
performer in each size category of smelter. The
sharing of information on good practices, has now
been introduced to encourage the whole sector to
improve their safety and health performance. In
2000 the IAI’s Safety Award was instituted to rec-
ognize the best performers. For 2000 the best per-
forming smelters were in India and Brazil and the
best performing alumina refinery was also in India.
No particular mine was selected since many were
in the best performing category. The graph below
shows the trend in average lost time accident rate
and severity rate for all the plants over the last cou-
ple of years.
Accident Rate and Severity Rate
10
(Accidents per million hours worked)
8
All Plants 1999
All Plants 1997
Accident Rate
6 All Plants 1998
4 All Plants 2000
2
IAI Best Performers 2000
0
0 20 40 60 80 100 120 140
Severity Rate
(Days lost per million hours)
While there is still further work to be done to
ensure the highest safety standards consistently in
all plants, progress so far has been encouraging.
The industry will continue to benchmark and
apply best practices within the industry. The IAI
will also seek to learn from the experience of other
industrial sectors. Besides investments in technical
improvements, it is primarily practice-oriented
training and qualification measures, aimed at iden-
tifying risks, that have contributed to this positive
22
development. This is consistent with the experi-
ence that most accidents at work are behaviour
and organisation related.
Alcoa have achieved continuous improvement in
reducing the rate of accidents in their operations
through a systematic work and management com-
mitment. Their average Lost Workday rate,
because of accidents and illnesses, is shown in the
graph compared with the average US
Manufacturing rate. Their rate is now 10 times
lower than it was 10 years ago, and is now also 10
times lower than the current average US manufac-
turing industry rate. There are many similar posi-
tive examples throughout the aluminium sector
and many companies have now declared a policy
of zero accidents as their ultimate goal.
Alcoa’s Lost Workday Rate
5
Lost workday rate
per 200,000 hours
4
US
Manufacturing
3
2
Alcoa
1
0
1987 1989 1991 1993 1995 1997 1999 2000
PUBLIC SAFETY
The aluminium construction of windows and
doors combined with fireproof glazing will help
prevent flames and smoke spreading to adjacent
rooms and corridors, for example in office build-
ings, hospitals and hotels. Because it is heat resist-
160 180 200 ant and does not burn, aluminium is also suitable
for protective clothing. Fire brigades and emer-
gency services can get closer to sources of heat or
fire if they are wearing aluminium-coated full-
body protection.
HEALTH AND FITNESS
The aluminium industry is associated with differ-
ent research facilities throughout the world, who
carry out medical research on the metal or alu-
minium products. The aim is to develop a safe
environment for the workforce and safe products
for the consumers. The IAI Health Committee with dental treatment.The progress in Ouro Preto
plans to collect global statistics on absenteeism on is significant. The number of cases of tooth decay
health grounds and then benchmark performance. has been reduced by 89%.
It will also be assembling data on community
health projects and family health programmes.
SAFETY OF THE
The IAI’s Health Committee monitors incidences
and conducts surveys of industrial illnesses in alu- MOTORIST
minium plants around the world. The Global
Aluminium Health Research Committee funds A reduction in a vehicle’s weight improves safety
health literature reviews and, where appropriate, because the lighter the vehicle, the shorter its
commissions research into industrial and public breaking distance. A few metres can decide
health issues. Many companies carry out health whether or not an accident occurs and people are
screening to identify those employees unfit to per- injured. In addition, crash tests show that alu-
form their designated job tasks. Matching the right minium structures absorb at least as much energy
employee to the appropriate job means decreased as steel structures. Thus, flexible aluminium tubes
risk, enhanced productivity and job satisfaction.
Many companies run health fitness programmes
and provide fitness centres for the workforce and
their families. It was found in some companies that
fitness programmes reduced the cost of health care
by some 30% as well as providing positive com-
munity benefits.

COMMUNITY HEALTH-
CARE PROJECTS
Cameroon’s aluminium plant has developed spe-
cific programmes for the local population to com-
bat malaria and AIDS. The plant management
have developed the first integrated programme in
Africa (prevention and treatment) targeted at HIV
in the occupational field and in the local popula-
tion. They have also established a health centre
which is open to the population surrounding the
plant. In India the companies have developed
health programmes and hospital services for the
local population near their plants.
An aluminium company community project ‘The
Smiles Project’ in Ouro Preto, in the state of Minas
Gerais, Brazil, has been recognised by UNICEF
and received awards.. There are seven buildings
with orthodontists in various quarters of the town
of Ouro Preto. This dental care project assists
3,500 children up to seven years old belonging to
families in need. The children visit the centres,
with their parents, once a week. They receive
instructions on brushing teeth and general oral
hygiene from dental assistants and orthodontists.
Later visits, if necessary, also provide the children
are increasingly being used for the side-on crash
protection in cars. Aluminium crash boxes
between the bumper and the front of the vehicle
serve to dissipate energy in the event of a head-on
collision. The aluminium industry is working
together with car-makers to develop new materi-
als, especially for lighter and stiffer components.
Foamed aluminium is a new material that is lighter
than water but nevertheless has an extremely high
stiffness - a combination of properties which
makes it possible to improve the design of the col-
lapsible zone and to offer greater protection if col-
lisions occur.
MOBILITY
Whether it is a scooter, cycle, escalator or shopping
trolley - every day we use products that contain

23
aluminium. This is especially the case when it
comes to walking aids or transport aids for the dis-
abled, the infirm or senior citizens. Where alu-
minium is used to enable individuals to have an
active social life without having to rely on third
parties.
COMMUNITY CARE
For many years companies have understood that
their licence to operate rests on the support of the
communities in which they operate. As well as the
direct economic benefits which communities
derive from operations, the companies invest in
their communities through the provision of spon-
sorships and by support of local infrastructure and
institutions. One company has a One Million Trees
programme whereby their employees, their fami-
lies and communities have planted over 500,000
trees on five continents in the last three years.
In Australia a close partnership has developed
between the aluminium companies and the
Aborigines. The native inhabitants are closely
involved in the recultivation of bauxite mines. This
applies, for example, to the landscaping, road-
building projects and medical care. Among other
things, the aluminium industry has awarded the
Aborigines long-term contracts for the transport of
bauxite or the provision of seeds for land recultiva-
tion. This ensures that the native inhabitants have
a reliable source of income for decades.
In Brazil around the bauxite mining area there are
a number of small villages, so-called quilombos,
which were set up about 200 years ago by escaped
slaves (Quilombolas). The Quilombolas use the
rain forest in a traditional manner. Therefore, with
the participation of the Brazilian environmental
authorities, the aluminium producers are trying to
balance out their interests and those of the
Quilombolas. The Brazilian aluminium industry is
actively engaged in a number of social projects that
help the Quilombolas to help themselves, includ-
ing projects in the following fields:
Q Poultry and fish farming, fruit and vegetable
gardens as well as beekeeping, in order to
improve nutrition and income in the
quilombos;
Q Schooling, medical care and helping villagers
to make claims for the land rights in their
local areas with the Brazilian government.
24
In Jamaica, ongoing community projects include
assistance to schools, the building of community
centres, construction of playing fields, the provi-
sion of water to neighbouring communities and
the upgrade and repair of public roads.
TRAINING AND
EDUCATION
The industry provides education, healthcare and
training for their workforce. In many parts of the
world the industry also provides education, health-
care and essential infrastructure for the broader
community.
For the past two years a religious organisation in
Germany has been honouring companies whose
outstanding conduct has established social bench-
marks. A company from the aluminium industry
has been honoured each year for taking on long-
term unemployed, for its relatively large number of
apprenticeships and for encouragement given to
female employees, its youth training effort and its
above-average employment of disabled persons.
Q In Russia the aluminium companies provide
grants for their employees’ children to receive
higher education. The companies also spon-
sor schools which their employees attend, by
providing teaching equipment and awarding
scholarships to future employees;
Q In Brazil aluminium companies provide ele-
mentary school education for the children of
their employees and also for children from the
neighbouring villages.They are also providing
education materials on environmental
responsibility to over 25,000 school children
(grades 1-4) in three separate communities.
The programme also involves the training of
over 600 local teachers in environmental edu-
cation and motivating students to learn
about environmental responsibility;
Q Aluminium Bahrain regularly awards scholar-
ships to the children of its employees to
enable them to have a university education.
So far 190 scholarships have been awarded.
For the younger children of employees sum-
mer camps are held every year, offering chil-
dren the chance to participate in a
number of leisure activities and sports. Older
children are offered courses to learn comput-
er skills.
One development project where aluminium can
provide useful support is the widespread use of
solar cookers in Third World countries. According
to the charity Deutsche Welthungerhilfe there are
about two billion people in the world today who
rely on firewood for cooking. In some regions the
local forestry can no longer satisfy people’s needs.
In addition, chopping down trees leads to heavy
soil erosion, the ground becomes impoverished,
the water table is lowered and once-fertile land
becomes desert. The use of solar cookers helps
counteract this development.

The collectors, which are similar to a satellite dish,

are made of anodised bright-polished aluminium
sheet and they focus the suns rays. The cooking
area is at the focal point and can reach tempera-
tures of 700 degrees Celsius. The aluminium
industry is promoting the wider use of solar cook-
ers. For example, the Germany-based Aluminium
Association (GDA) is supporting a joint project
between the German Federal Ministry for
Economic Co-operation and Development and
the German Society for Technical Co-operation,
GT7. This covers the manufacture and distribu-
tion of solar cookers in South Africa.
means of implementation
GREENHOUSE GAS
REDUCTION
The 1997 PFC Survey highlighted the consider-
able variation in performance between smelters
using different types of technology and even
between smelters using the same technology so
there is still considerable potential for improve-
ment. The reduction in the frequency and dura-
tion of anode effects, which give rise to most PFC
emissions, has a benefit. Not only does it reduce
emissions but it also helps to optimise process effi-
ciency. The IAI’s PFC Reduction Initiative
involves:
Q Surveying producers for anode effect data;
Q Publishing reports that serve as a data source
on PFCs from aluminium production;
Q Providing advice on good practices for PFC
measurement procedures;
Q Conducting workshops or benchmarking
and good practices for the reduction of anode
effects;
Q Collaborating with national regulatory agen-
cies, international business groups and mem-
ber companies to develop better PFC inven-
tories;
Q Sponsoring fundamental atmospheric
research to understand better how PFCs
affect climate change;
Q Sponsoring measurements of PFCs in histor-
ical air samples to establish the relationship
with aluminium production.
The IAI has introduced a benchmarking pro-
gramme. Each reporting smelter receives a per-
formance graph showing where it ranks in relation
to the performance of other de-identified plants
with similar technology. A series of regional work-
shops are being organised to promote the spread of
good practice throughout the industry.
Companies are being encouraged and where
appropriate assisted to carry out actual sample
measurements from the potroom ducts. This also
helps to provide a solid base for building a set of
data stretching back to 1990, which would be suit-
able for third party verification.
In future the introduction of inert anodes and the
replacement over time of carbon anodes could
eventually eliminate PFC emissions.
FUTURE APPROACH TO
SUSTAINABLE
DEVELOPMENT
The IAI is looking at a two tiered approach which
will involve organising workshops to share experi-
ence and good practice amongst member compa-
nies. In this way the small to medium size compa-
nies as well as the larger ones, can be made aware,
of the international importance of sustainable
development and of the need to make it part of
their company’s own management and operating
philosophy. Ultimately sustainable development
performance indicators need to be framed so that
they can not only serve as a useful evaluation tool
in terms of satisfying stakeholder concerns but are
also of value to managers when measuring their
business’s performance.