Environmental Report 2004HobokenEnvironmental Report 2004Hoboken

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3 Foreword

4 Air : emissions

7 Air : immissions

9 Air : dioxins

10 Water

11 Noise barrier

12 Soil cleanup

14 Environmental expenditures

content

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Dear neighbour,

We are delighted to be sending you our annual environmental report - for the sixthtime already. In this report, we wish once again to sketch out for you our company´senvironmental performances and explain the most important achievements of thepast year.

Important facts for the year 2004 include:

◗ reduction in the emissions of arsenic and cadmium

◗ decrease of the metals and dioxins in dust fall-out

◗ commissioning of stormwater pumps

◗ performance of the preparatory works for the soil cleanup in the Moretusburgand Hertogvelden districts

In this report we also tell a bit more about the expenditures which have been madeover the years in the environmental area, and we take a detailed look at the construction of the noise barrier.

Once again you will have an opportunity to pose questions about this annual environmental report on the occasion of an information evening which will be heldon June 16th at 7.30 p.m. in the Gildenhuis hall, Kapelstraat 296, Hoboken.

Naturally, you can always contact us with questions, comments and reactions at thetoll-free number 0800/93 739, or by letter sent to the address A. Greinerstraat 14,2660 Hoboken, Belgium, or via e-mail to the environmental coordinator:jan.kegels@umicore.com.

For specific questions about the soil cleanup in the Moretusburg/Hertogvelden districts, you can call the toll-free number 0800/94 028 or go to the websitewww.schoonmoretusburghertogvelden.be.

Hugo MorelExecutive Vice President

Guided emissionsUmicore Hoboken´s guided emissions are closelymonitored, as provided for in the Vlarem 2 environmental legislation. Abnormal atmosphericemissions are prevented by strict monitoring,which includes the following:

◗ the regular measurement of parameters suchas dust, metals, sulphur dioxide, nitrogenoxide, dioxins, etc.

◗ the continuous indicative measurement ofthe dust content in the residual gases afterpurification on a number of major stacks

MetalsAfter several years of falling emissions, in 2004an increase in guided emissions was found forlead and selenium. Nevertheless, the measuredvalues still remain lower than those of 2002.This increase is entirely accounted for by a singleemission point, i.e. the stack of the precious metals concentration department which isresponsible for around 90% of the total lead andselenium emissions of the entire plant. A projectis ongoing to fully modernise this process, andthis will also substantially lower emissions. Adecrease was found for copper and zinc, whilethe values of arsenic, nickel and cadmiumremained virtually identical.

SO2Sulphur dioxide (SO2) is generated during processing in the smelter, where the sulphurpresent in the raw materials is converted intoSO2. In the sulphuric acid department most ofthis SO2 is then converted into sulphuric acid. SO2is also generated during the combustion of sulphurcontaining fuel. In 2004, a further increasewas found for sulphur dioxide (SO2). This is primarily explained by the increased processingof sulphur containing raw materials in thesmelter. An investment planned for 2005 in thesulphuric acid department is in part designed tolower the SO2 emissions. Given the fact that allguided emissions take place at a greater height,they have only a low impact on the near surroundings.

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Air: emissionsInvestment to reduce sulphur dioxide emissions approvedand scheduled for 2005

By "emissions" we mean those quantities (of dust or gas) which are put into the atmosphere inone or another way. "Guided emissions" are dust and gases which are released via a stack; all otheremissions are "diffuse emissions", such as dust or gas from buildings, dust which is blown aboutwhen loading, storing or transporting raw materials.

▼| Member of the environmental control team performing a measurement

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0

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1993 1995 1997 1999 2000 2001 2003 20042002

713 111313

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100 Evolution of lead emission (in %) via stacks

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1993 1995 1997 1999 2000 20022001 20042003

0,3 0,4 0,32,73,22,90

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100 Evolution of cadmium emission (in %) via stacks

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1993 1995 1997 1999 2000 2004200320022001

4542

313940

64 61

103100Evolution of SO2 emission (in %) via stacks

1| The graphsillustrate theevolution of thetotal stackemissions compared to1993

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Diffuse emissions

Diffuse emissions can occur during the transport andunloading of raw materials andintermediate products. They areestimated from the immissionresults. The evolution for lead isshown in the following chart.

After a favourable 2003, duringwhich sharp reductions wereachieved for virtually all metals,

in 2004 we note a slightincrease for lead and arsenic.For cadmium, a further decreasewas found. The reasons for thisare unclear, given that all of themeasures taken to limit diffuseemissions, such as the sprin-kling of roadways and storagegrounds, have been maintained.Furthermore, in 2004 the windwas blowing in the direction of

Moretusburg more of the time:35% compared to 31% in 2003.

A study is currently being conducted which is intended toidentify the most importantsources of diffuse emissions.

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1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 ‘00 ‘01 ‘04‘03‘02

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64 6359

5451

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4448 46

4044 44

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37 37

2520

14 1520

Lead emission (in %) from diffuse sources (calculated) compared with 1981

▼| Dust spreading is prevented by regular sprinkling of the internal road ways.

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Air: immissions

Decrease in dioxin fall-out in 2004

Suspended dust

'76 '77 '78 '79 '80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '03 '04'020

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Evolution of lead in suspended dust on CM Square (%)compared with 1976

'79 '80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '04'03'020

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40

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100Evolution of cadmium in suspended dust on CM Square (%)compared with 1979

'79 '80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '03 '04'020

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40

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100Evolution of arsenic in suspended dust on CM Square (%)compared with 1979

By immission we understandthose quantities of dust whichare present in the environment, such as dustwhich is suspended in the airas well as coarser, settlingdust particles that fall to theground. The immissions ofUmicore Hoboken are alsointensively measured, both bythe authorities (the FlemishEnvironmental Agency, VMM)and by the company itself,both on and outside the plantgrounds.

The adjacent figures illustratethe evolution in percent of theelements lead, cadmium andarsenic on Constantin MeunierSquare. For lead and arsenic, anincrease was registered over the2003 values, while for cadmiumthe measured values continuedto fall.

On CM Square we went up to0.34 µg lead/m3 as annual average, but this still remainsfar below the new standard of0.5 µg/m3; this is also the casefor arsenic (annual average =0.08 µg/m3; no standard).

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Dust fall-out

'79 '80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '04'03'020

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120Evolution of lead in dust fall-out on CM Square (%)compared with 1979

'82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '04'03'020

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120 Evolution of cadmium in dust fall-out on CM Square (%)compared with 1982

'82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '04'03'020

20

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100 Evolution of arsenic in dust fall-out on CM Square (%)compared with 1982

On CM Square in 2003 we founda lower level for lead, cadmiumand arsenic in dust fall-out, asalso appears from the adjacentgraphs:

• Lead : 1,16 mg/m2.dag• Cadmium : 0,01 mg/m2.dag• Arsenic : 0,09 mg/m2.dag

For cadmium, the measuredconcentrations fell further to0.006 µg/m3 (standard = 0.04µg/m3)

The average concentrations inPM-10 dust, i.e. dust with a particle diameter smaller than10 µm (= one-hundredth of amm), on CM Square amountedto 0.18 µg/m3 for lead, 0.004µg/m3 for cadmium and 0.03µg/m3 for arsenic.

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Dioxins

The Flemish EnvironmentalAgency (VMM) characterises figures higher than 26 pgTEQ/m3.d as “elevated”,between 6 and 26 as “moderately elevated” andlower than 6 as “not elevated”.As appears from the adjacentmeasured values, a significantreduction was achieved in 2004compared to 2003. Thisdecrease is attributable tomeasures taken which werederived from intensive researchon possible dioxin sources, inparticular:

◗ dismantling of old installations, therebyremoving a ´historical´ dioxin source

◗ identification of processeswhich could create dioxins+ use of alternativeprocesses

The annual average is evolving as follows:

pg TEQ/m2.day %

2000 37 100

2001 28 76

2002 14 38

2003 22 59

2004 12 32

pg = picogram = 0,000000000001 gram

TEQ = Toxicity equivalent = a way to expressthe 17 most toxic dioxins and dibenzofurans asa single digit

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2000 2001 2002 2003 2004

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Annual averages of dioxins (in %)

▼| Set of sampling gauges for monitoring dioxin fall-out

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Water

New storm pumps prevent untreated sewage water from beingdischarged directly into the Scheldt River at intense rainfall

The production processes generate waste waters whichare often highly acidic and contain elevated concentrationsof metals. In order be able todischarge these waters, onemust satisfy the discharge standards imposed by the government in the environmen-tal permit.

Since 1980, a water treatmentinstallation has been in opera-tion on the Hoboken site whichpurifies all plant waste water.All rain water is also fed via aninternal plant sewage system tothe water treatment plant andpurified. A significant quantity

of these treated waters isreused internally in the plant,and the rest is discharged into

the Scheldt River.The table shows the evolutionof the concentrations in mg/l inthe drain water, demonstratingthat all applicable standards arebeing met.

In 2004 ´storm pumps´ werealso installed which ensure that,in the event of a storm or atintense rainfall, the peak flowscan be transported and storedin two large buffer tanks with atotal capacity of around 30,000m3. In this way, no untreatedsewage water is dischargeddirectly into the Scheldt in theevent of a violent downpour.

Concentrations in mg/l standard 2001 2002 2003 2004

lead 1 0.03 0.02 0.05 0.04

cadmium 0.2 0.002 0.013 0.027 0.014

arsenic 1 0.10 0.18 0.15 0.18

copper 3 0.03 0.01 0.10 0.22

selenium 5 1.9 1.7 1.7 2.8

nitrogen 125 48 53 39 46

View of the storm pumps which during intense rainfall can divert peak flows up to 7,000,000 l/h to thewater treatment plant.

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11

Noise barrier

The noise barrier between the Nachtegalenhof district andthe plant will have a total height of 25 meters

Although the Nachtegalenhof district is notdirectly adjacent to the plant, some residentshave nevertheless complaints about noise. Thisprimarily concerns the hydraulic hammers whichare used to roughly break up the lead slags, andthe acoustic signals of vehicles operating on theplant grounds.

Since these noise sources are difficult to controland no real alternatives can be introduced, it wasdecided to build a noise barrier which offers thedistrict maximum protection from the plant.

This noise barrier will be situated entirely on theUmicore grounds. A study demonstrated that ithad to be 25m high in order to have enough ofan effect in the district. In practice the barrier willbe 22m high, and on top of it a small wall will

be built with stone-filled baskets. This produces asharper “crest”, offering a better noise-reductioneffect.

The barrier is being built of depleted slags andslightly contaminated soils which have beenremoved from the various soil cleanup works.During the works, the rain water which falls onthe barrier is retained in a space confined withina liner and drained off to the plant´s water treatment installation.

As a final step, the barrier will be covered withan impermeable liner. On top of that comes alayer of soil and a green covering with plantswhich can survive drier periods.

▼| Schematic view of the noise barrier

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Soil and groundwater cleanup on the plant grounds

In the past, a large share of the unused plantgrounds have already been excavated over adepth of 30 cm and refilled with an equally thicklayer of broken brick debris to prevent contaminated soil from drying out and beingblown around. Other areas were completely covered over with concrete. In the future thesetechniques will also be applied on the remainingunused grounds, a total of around 6 hectares.

A drainage parallel to the Scheldt will receive thepolluted groundwater and transport it to theinternal water treatment installation, after whichit will be reused in the plant for sprinkling andcooling (among other purposes). In principle, thestudies will be submitted to the OVAM forapproval during the summer, after which it willbe possible to organise a call for tenders on theworks themselves.

Moretusburg

In October 2004, the inhabitants of Moretusburgwere invited to an information meeting where

the proposed procedures and works wereexplained. In the Covenant which was concludedbetween the Flemish government, the OVAM andUmicore, it was agreed that any further spreadingof contaminated soil must be prevented by excavating 30 cm of soil, refilling with the sameamount of clean soil and replanting of the lots.

After the information meeting, the recognisedsoil clean-up experts began mapping out all ofthe lots in Moretusburg. Photos were taken andall elements (garden walls, trees, playthings, garden houses, etc.) were noted down ondetailed maps.Dust-filled areas which are rarely used were alsoinventoried. With this information, one is nowworking to define the best approach to thecleanup. All of this is being assembled in a reportwhich will be submitted to OVAM for approval.Then the residents will be further informed aboutthe decisions and they will be consulted abouthow to deal with their particular lot. The actualworks would begin in the spring of 2006 at theearliest.

Soil cleanupAfter years of research and consultation with the government, a number of soil cleanup projects will now beimplemented in the coming years.

Information meetings (October 2004) were organised to explain the cleanupprojects to the people of the districts of Moretusburg and Hertogvelden

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▼|Overview map of the inventory of the public domain of the Moretusburg district, as prepared by the soil clean-up experts

The public grounds of the city of Antwerp willalso undergo the same procedure.

Hertogvelden

In the part of the district of Hertogveldenbetween the Kapelstraat and the L. deLandrelaan, many grounds have been excavatedin the past and replaced by fresh soil at the occasion of the new construction works.

The OVAM therefore agreed to take new samplesand prepare a supplementary descriptive soilstudy. The submission and the declaration of

conformity is foreseen during the summer of2005. The result of this study will indicatewhether or not further clean-up measures arenecessary here.

Since 1990, more than 100 million euros havebeen devoted to investment projects which aredesigned to improve the environment. Thismeans that in recent years an average of morethan 7 million euros per year was invested inenvironmental measures and projects. Thisinvestment programme will be continued in thefuture as well.

In 2004, a total amount of around 3 million euroswere devoted to environmental projects. Of thisamount, 560,000 euros went to projects forwaste water treatment, 1,700,000 euros to emission limiting/controlling measures, 290,000euros to soil cleanup/management and 260,000euros to energy saving projects.

The most important projects were:

◗ renovation of the gas treatment installation ofthe precious metals refining department

◗ adaptations to the roadway sprinkling + installation of central control

◗ measures to limit the dust emissions from thelead refinery

◗ installation of storm pumps to prevent discharges of untreated water intense rainfall

In addition to the investment costs, in 2004 anamount of around 2.8 million euros was spent forrenting sprinkling and sweeping vehicles, themaintainance of various installations for environmental protection and conducting the

necessary studies and tests in order to meet theapplicable environmental laws.

Supplementary to the already incurred environmental investments, a number of projectsare currently being implemented, planned orstudied:

◗ measurement and management of diffuseemissions

◗ projects on the further cleanup of soil andgroundwater on the plant grounds

◗ the Moretusburg/Hertogvelden cleanup project

◗ expansion of the sulphuric acid installation tolimit the SO2 emissions

◗ construction of a noise barrier

◗ limiting the emissions from the precious metals concentration department

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Environmental expenditures

Environmental expenditures amounting to around 6 millioneuros in 2004.

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View of the former storage ground after the cleanup works(1999-2000 period)

The total operating cost for cleaning and for sprinkling ofroads and squares, stored raw materials amounted toaround 1,500,000 euros in 2004.

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View of the ventilation grates in the facade of the leadrefinery. The investment led to a significant reduction in

the emissions from the building

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UmicorePlant Hoboken

A. Greinerstraat 142660 Hoboken , Belgium

Free number : +32 3 800/93739Fax : 03/821 78 40Web site: www.umicore.com

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Complaints, questions, comments, … ?

Don´t hesitate to call us at the toll-free number 00 32 800/93739.Your calls will be taken 24 hours a day. We promise to provide an answer as quickly aspossible.