8.3.Environmental management

USD 1,9 m

TMK invested in a set of measures designed to ensure legal compliance and environmental protection

USD 3 m

total atmospheric emissions control expenses

Under TMK’s Environmental Policy aimed at maintaining environmental safety of the rapidly growing production, our efforts during the year were traditionally focused on improving the environmental efficiency of production processes and reducing water consumption.

In its operations, TMK follows international environmental protection initiatives and treaties and complies with national environmental standards and regulations. We continue focusing on systemic environmental activities. Eleven plants of the Company have been ISO 14001:2004 certified (Environmental Management System standard). International auditors once again confirmed continuous improvement of environmental management in the reporting period.

Environmental investments: transition to the best available technologies

Environmental issues are an essential component of all strategic documents of the Company. In 2015, we invested USD 1.9 m in a set of measures designed to ensure legal compliance and environmental protection, including to reduce the amount of pollutant emissions and sewage; enhance production waste management efficiency and minimise the noise level.

Key activities and results:

• The Seversky Tube Works started the operation of an advanced gas cleaning system and a treatment facility for the continuous rolling mill
• The Volzhsky Pipe Plant upgraded its antioxidant removal facility at the seamless pipe line of the third rolling mill, with the treatment efficiency increased to 98%
• The casting shop of the Volzhsky Pipe Plant reduced waste disposal by 20% through replacement of grinding tools with a shot blaster and
• Ambridge upgraded its waste water treatment facilities.

Emissions control

We use advanced technologies ensuring a high-degree treatment of industrial emissions to reduce negative impact on the atmosphere. Measures in this area are taken on an annual basis, including routine maintenance and overhaul of treatment facilities to improve the efficiency of gas cleaning, which helps the Company meet the approved standards. The total atmospheric emissions control expenses were USD 3 m. By deploying the best available technologies and equipping emission sources with advanced treatment facilities, the Company has been steadily reducing its emissions. In 2015, gross emissions were cut by 5%.

As part of its efforts to ensure compliance with the health legislation, the Volzhsky Pipe Plant introduced a narrower sanitary protection, or buffer, zone, while other Russian facilities of the Company are working towards the same goal.

Climate responsibility

TMK builds its growth strategy taking into account its hydrocarbon footprint, with hydrocarbon aspects incorporated into the risk management system and business processes.

Our Romanian assets meet the requirements of the national legislation governing hydrocarbons.

The Company’s Russian facilities are successfully testing the methodology of the Russian Ministry of Natural Resources and Environment for calculating greenhouse gas emissions. The experience of our Russian assets, which have monitored their GHG emissions since 1990, has greatly facilitated this process. In 2010, the Russian Government issued a letter of approval to Renovation of the Steelmaking Facilities of the Seversky Tube Works Joint Implementation project, with 1,559,511 tonnes of ERU already sold.

95%

составила доля оборотного водоснабжения в общем объеме воды, потребляемой предприятиями на технологические нужды

Key activities and results:

• The Volzhsky Pipe Plant replaced 8,640 bag filters to ensure a smooth gas cleaning process in the steelmaking facilities
• The Seversky Tube Works installed noise-absorbing devices in the pipe welding shop, with the noise level reduced by 10 dB
• TAGMET assembled dust control and gas cleaning units at the ferro-alloy and lumps preparation facility
• Six units of the Orsky Machine Building Plant completed the overhaul of their dust control equipment.

Water Management

Under TMK’s Environmental Policy, the Company’s water management strategy focuses on reducing water consumption and mitigating negative impact on water bodies. TMK’s plants are implementing an integrated approach to water resource management, which, over time, results in optimised consumption, distribution and sustainable use of water and reduced sewage. A recycling water supply system is essential for any of TMK’s new, upgraded or reconstructed facilities.

In 2015, consistent water management activities enabled TMK to reduce (year-on-year):

by 7%

industrial water consumption reduced in 2015

• Water intake from surface water bodies by 6%
• Industrial water consumption by 7%
• Waste water by 5%
• Concentration of pollutants in industrial effluents discharged to water bodies by 3%
• While the share of recycling water supply in total consumption by our entities for process purposes amounted to 95%.

Key activities and results:

• The Volzhsky Pipe Plant cleaned waste water pit SR-9 at the third tube rolling shop and reduced the level of oil sediment in the conditionally clean water discharge
• The Seversky Pipe Plant continued its renovation of the Mayak drinking water supply station and is building treatment facilities for graphite-containing effluents
• The Sinarsky Pipe Plant completed its upgrade of the Isetsky water intake to reduce fresh process water consumption by 80 thousand cu m. and cleaned waste water pits at the industrial waste pumping station and the cast-in-place catch basin.
• TAGMET
  • Completed the installation of additional cooling towers at the water processing facility of the ladle furnace and the continuous-casting machine (CCM)
  • To prevent destruction of fry, the company repaired and cleaned fish-protection devices at the suction pipelines of Level 1 pumping plant
  • The company also cleaned the adjacent water protection areas of the Azov Sea coast from pollutants
• Koppel (TMK IPSCO, US) completed its construction of waste water treatment facilities, including: a reservoir for conditionally clean hot and cold water and primary intrashop waste water pits.

Waste Management

by 11%

total waste reduced

58%

of the total waste was used in the Company’s operations

In line with its environmental policy, TMK implements initiatives to reduce waste and its disposal, expand waste recycling and reclaim lands.

A total of USD 5.7 m was spent in 2015 to minimise the impact of waste on the environment. TMK’s land protection expenses, including land reclamation, amounted to USD 1.1 m.

Key results of TMK’s consistent environmental activities in 2015:

• Total waste reduced by 11%
• 7% of the total waste was disposed of at the designated facilities, which clearly demonstrates high efficiency of our waste management
• 80 types of waste were recycled to be further used in the Company’s operations
• 58% of the total waste was used in the Company’s operations
• Over 400 thousand tonnes of waste was sold to third parties for re-use.

In 2013–2015, TMK’s facilities recycled more than 1.4 million tonnes of accumulated waste.

Key activities and results in 2015:

• The Volzhsky Pipe Plant closed its waste landfill for waste with hazard ratings of 3, 4, and 5. The project involved 100%-green innovative solutions. The reclaimed lands were returned to the town of Volzhsky for further commercial use
• TMK-CHERMET raised and reinforced with hard-surface materials the floor level at three of its production sites to reduce adverse impact on the soil
• TMK GIPI built a special site to store semi-liquid emulsion waste.