UC RUSAL Sustainability report 2016


Water

Water resources

Approach

One of the Company's strategic objectives is the creation of a closed water supply system at production capacities that will reduce the need for water use and reduce wastewater discharged. HKEx Appendix 27 KPI A2.4, G4-EMS

Results

In 2016, the Company increased by 8% in the amount of water drawing compared to the previous reporting period. The consumption of water for production needs has also increased by 13% in relation to 2015. The negative dynamic is mainly caused by increased water consumption for production and heat and power generation at the Achinsk alumina refinery and the Urals aluminium smelter.

The introduction of closed water supply system at the production facilities has resulted in a decrease of 35% of the water drawn from river ecosystems in the last five years and a 68% decrease in wastewater discharges.

Trends in the drawing and use of fresh water for production in 2012-2016, mln. cubic metres  G4-ЕN8, HKEx Appendix 27 KPIA2.2.

Water drawn by source G4-ЕN9

The structure of the Company's water consumption according to the types of sources used and the types of production facilities remains constant. Water is mainly drawn from ground water facilities, 59% of the total. The main consumers of water resources remain alumina refineries, related to the technological specificity of alumina production. Specifically, four production facilities (Achinsk alumina refinery, Bogoslovsk aluminium smelter, Boxitogorsk alumina refinery and Ural aluminium Smelter) account for 67% of the Company's fresh water consumption. In the reporting year, the share of alumina refineries declined from 72.4% in 2015 to 64% of the total freshwater consumption of the Company. Consequently, the share of aluminium production in the volume of water consumption has increased to 27.6%.

Dynamics of industrial wastewater discharges, million cubic metres G4-ЕN22, HKEx Appendix 27 KPI A1.1.

In 2015, the dumping of industrial wastewater increased by 10% compared to the previous period, amounting to 29.2 million cubic metres. Most of these effluents (97%, or 28.3 million cubic metres) are attributed to alumina refineries. The growth in 2016 by 2.7 million cubic metres is related to the increase in the use of flushing water at the Boxitogorsk alumina refinery and the increase in rainfall during the year at the Boxitogorsk, Bogoslovsk and Urals production facilities.

In the last seven years, Bositogorsk alumina refinery has reduced the level of discharges by two times. At the beginning of the reporting year, a special audit was conducted and calculations were made of the consumption of water by production and by individual units for domestic use. A project of close water supply system is being prepared for implementation and work is being done to eliminate the loss of drinking water at production facilities. This will reduce the use of water by 20%: drinking water at least 800 thousand cubic metres, industrial by three million cubic metres. In addition, the drawing of fresh water should be reduced by two times and, accordingly, discharges should be reduced by means of closed water supply. As a result of the retrofitting of the corundum production, wet grinding of the products will be completely excluded and the load of the treatment facilities of the production facility should be reduced. After the establishment of existing water supply systems and the determination of the real level of discharges into the water source, it is planned to design and construct new treatment facilities in line with the scale of the production facility. HKEx Appendix 27 KPI A1.5, A1.6.

Until 2020, the Achinsk alumina refinery has to stabilise the process for collection and returning of drainage water into production, as well as the system of capturing of the filtration water and returning it to the water supply of the refinery.