Dr. Manolova, there seems to be a paradigm shift in the perception of raw materials and their role in the energy transition. What is your view on this matter, what is the role of companies such as Aurubis in building a sustainable future?
Aurubis is a company producing at Group level over 20 different metals, mostly focused on copper. The metals we produce are the foundation for the energy and mobility transition from one side and digitisation from the other. In this context, Aurubis is a critical enabler of innovation and decarbonisation.
There is a high demand for copper, the key metal we produce. This demand increases by about 2% to 3% each year according to market surveys. To meet this growing need, Aurubis is investing heavily to provide more copper to Europe and beyond. In Bulgaria, we have launched a significant programme that will be executed over the next four years with total investments of BGN 800 mln.
Our strategy not only aims to meet the increasing demand for copper but also to modernise, digitalise, and enhance the energy efficiency of our production processes, thereby reducing our environmental impact. The metallurgical industry, including our operations, is an enormous consumer of energy. Therefore, we are focusing on several key areas for investment. One major area includes regular shutdowns for renovations, starting with our furnaces in 2025. Additionally, we are modernising our wastewater treatment plant to meet the highest standards for water treatment and cleaning, and we are also working on projects related to slag process treatments. These projects aim to increase the percentage of extracted copper while reducing environmental impact from thermal processes used in slag cooling. Moreover, we are upgrading our transportation infrastructure. with new environmentally sustainable train cars for transporting concentrate from Burgas to Pirdop. We are also committed to updating our facilities, including premium efficiency motors and lighting in our plant.
Overall, our strategy continues to prioritise investment in our core business, improving efficiency and effectiveness across various aspects of the production process. Aurubis Group goal is to define top standards and become the most sustainable network of smelters not only in Europe but globally.
While industrial companies are indeed responsible for a major share of emissions, they have also been at the forefront of transforming production processes and sustainable innovations. Are public initiatives keeping pace with these advancements, or is there a need for some catching-up?
Very good question. The sustainability efforts of a company depend on its scale and specific goals. At Aurubis Bulgaria, we are deeply committed not only to sustainable production but also to the well-being of the region where we operate and the people living there. We aim for our employees and the local communities to feel that they are part of a company that genuinely cares about the standards of life. We focus on implementing the most efficient and appropriate technologies in our operations. This goes beyond merely adhering to ISO 9001 standards and continuous improvement processes; we prioritise sustainability from both a cost and environmental perspective. Reducing CO2 emissions is a major focus, aligning with Europe's green strategy.
One of our key projects involves generating our own electricity. We have started developing in-house solar parks that would reach 41 MWp capacity in 2026. The first one is already operational, with the second and third under construction, and a fourth set to start by the end of this year. The Group goal is to achieve carbon neutrality by 2050. Additionally, we are exploring project opportunities related to water and wind energy. We are confident that these efforts will significantly contribute to our sustainability goals.
You already mentioned some of the aspects of the recently unveiled new investment programme in Bulgaria. Can you share more details on it?
Yes, our decarbonisation efforts are a substantial part of a long-term programme. This is just the beginning, with several key projects included in this initial phase. One of the major projects is the expansion of our tankhouse for refined copper, which is our key product. By extending our production capabilities, we aim to increase our output of copper cathodes by 50%. Currently, we produce copper in two stages: anodes and cathodes. Up to now, we have only been able to transform part of our input into cathodes. With this new investment, we will be able to refine the entire quantity on site, amounting to 340,000 tons per year. This expansion is a crucial part of our investment programme.
Another significant project is the modernization of the wastewater treatment processes. Copper concentrates, our main raw material, now contain more diverse metals, necessitating more thorough cleaning processes, which ultimately impact wastewater treatment.
Additionally, we are working on a project for the treatment and cleaning of slag. This project aims to extract valuable materials in an environmentally friendly manner, further reducing our environmental footprint. These efforts are essential to our overall strategy of improving sustainability and efficiency in our operations.
Speaking of sustainable innovation, Aurubis Bulgaria has certified one of its main by-products, iron silicate fines, as a construction product with application in concrete and mortars. Tell us a bit more about it and its practical application.
In recent years, we have conducted extensive research and development activities to understand the properties of iron silicate fines, a secondary material we produce. Aurubis primarily produces three materials: copper, sulfuric acid, which is our largest product by volume at about 1.35 million tons, and iron silicate, of which we produce around 800,000 tons in Bulgaria. In comparison, our copper production is 340,000 tons, highlighting the significant volume of iron silicate fines we generate.
Given the substantial quantities of iron silicate fines, we began by thoroughly researching its properties and identifying potential applications that could offer additional benefits. Once we established these applications, we pursued their certification one by one. We then sought approval to reclassify iron silicate fines from waste to a by-product, a process that involved multiple ministries in Bulgaria and culminated in 2021. This reclassification was a crucial milestone for expanding our market.
The applications for iron silicate fines include its use in concrete, mortars, and ceramic brick production. After obtaining initial certification, we continued with annual external audits and required our customers to certify their final products, as our material serves as a raw material for their production processes. Various certification authorities validated these applications, and our customers have been very satisfied with the results.
The benefits of using iron silicate fines are numerous. Technically, it enhances the mechanical and radiological properties of end products. Economically, it reduces the need for sand and cement in concrete and mortar production, which directly lowers CO2 emissions in a sustainable way. Cement production is a significant source of pollution, and reducing its consumption helps mitigate its environmental impact. Iron silicate fines, with its high iron content, also serves as an alternative fuel, particularly beneficial for high-temperature processes like cement and ceramic production. This helps reduce traditional fuel consumption and supports decarbonisation efforts in these industries.
Furthermore, we are exploring additional applications, such as incorporating iron silicate fines into asphalt mixtures for road construction, which traditionally relies heavily on natural materials. We are working to adapt Bulgarian standards to match the proven applications in Europe. Additionally, iron silicate fines can be used as a substitute in cement production, and although it takes time for certification in Bulgaria, it has received European technical assessment certification. This opens the door to producing more sustainable concrete, the most widely used material by volume globally.
We are now closing the loop with the circular utilisation of iron silicate fines by incorporating them into our new investment projects as a key ingredient in concrete composition. The first such project is almost completed: the new photovoltaic solar parks are located above historical ponds of the material, and the foundations of the parks are made with it.
Jul 5, 2024
