CLIENT

One of the largest vertically integrated holdings in the CIS, with key assets concentrated in mining and non-ferrous metallurgy.

BACKGROUND

In line with the global trend of increasing environmental responsibility, the CIS countries are increasingly toughening their national environmental legislation. As a result, the use of current technologies and equipment at the Holding Company's production facilities will not allow them to comply with new environmental standards, which leads to the risk of increased environmental payments for negative environmental impact and calls into question the economic feasibility of continuing production activities.

SOLUTION

1. Comprehensive environmental audit. SBS Consulting, together with specialized experts in copper ore mining and concentration, metallurgy, energy and ecology, conducted an environmental audit of the Holding Company's facilities along the entire production chain: from drilling and blasting operations at mines to shipment of copper cathode. The audit identified technical and technological issues leading to increased negative environmental impact with an assessment of future environmental payments.

2. Development of technical solutions. For each area (emissions, discharges, waste) technical solutions were developed that comply with domestic (Russian Federation) and/or foreign (European Union) BAT reference books. The technical feasibility of their implementation was assessed jointly with specialized specialists at the facilities and invited experts.

3. Formalization of the modernization program. The selected technical solutions are formalized into a set of measures that make up the modernization program with the calculation of capital and operating costs.

RESULTS

1. The Holding's Environmental Strategy has been developed, identifying problem areas of production facilities and an investment program for modernization with a total cost of several hundred million USD. Implementation will make it possible to achieve environmental performance at the level of the best international practices - reduction of emissions up to 40%, waste up to 10%, water consumption over 1 million cubic meters.

2. Financing parameters have been identified that include the potential to use cheaper green instruments.

3. A roadmap for implementing the strategy was drawn up, taking into account the Holding Company's technical and financial constraints.