Environmental Management

The purpose of TMK’s environmental policy is to create a sustainable, responsible and competitive business, ensuring environmental safety in a fast-growing industry. Management of environmental impact at the Company is based on a systematic approach that meets the international standard ISO 14001:2004. The Environmental Management System has been implemented at all of TMK’s production facilities, 10 of which have been certified.

Environmental investments

At all TMK facilities, systematic work was conducted to reduce the environmental footprint on natural ecosystems. In its investment activities, the Company solves the problem of combining the interests of economics and ecology. A priority of TMK’s Strategic Investment Program is the phasing-out of obsolete equipment and the transition to the best available technologies with high economic and environmental performance.

In 2010, 11 environmental investment activities were implemented in the amount of U.S.$ 9.2 million related to the following projects:

  • developing production;
  • reducing water consumption for technological needs through the development of water recycling systems;
  • reducing emissions of pollutants;
  • improving the quality of wastewater.

The total costs of TMK’s environmental activities in 2010 were U.S.$ 24.9 million.

Emissions Control

TMK takes a balanced approach in its choice of modern technology and gives priority to equipment that provides a high degree of industrial emissions purification. In recent years, specific emissions are steadily trending downward due to the continuous modernization of production; improvements in the efficiency of gas cleaning and annual repairs. Total emissions of the facilities do not exceed the established standards.

Water Management

The main tasks in this area — reducing water consumption and a gradually reducing the impact on water bodies — were solved in 2010 through the development of water recycling systems and improvement in the operational efficiency of existing treatment facilities. A transition to the recycling of water is a prerequisite for the introduction of new production capacity, modernization and reconstruction.

A comprehensive and rational approach to the issue of water use has allowed for reduced consumption of water for technological needs from surface water bodies. The proportion of recycled water and water reuse in 2010 reached 94.65%.

TMK’s basic indicators on water consumption and wastewater have improved in comparison with the previous year:

  • water savings directed at production needs were 1.3 million cubic meters;
  • the volume of wastewater discharge into water bodies decreased by 12.1%;
  • entry of pollutants from sewage to water bodies fell by 8.8%;
  • specific water consumption for industrial needs has decreased by 41.4%.

Waste Management

The Company’s system to manage waste from production aims to implement practical actions to reduce waste generation, recycling, disposal and minimization of placement in the environment.

Waste management tasks for 2010 Realization
Decrease waste volumes The amount of waste to be placed on own sites decreased by 24.8%
Decrease in the amount of waste to be stored and disposed of at special sites The amount of waste sent for disposal to third parties decreased by 31.5%
Processing of previously accumulated waste products, including metal Processed 18.4% of previously accumulated waste
Increasing amounts of waste that is recyclable, recycling and reuse as a raw material in own plants and at facilities of other industries The amount of accumulated waste has decreased by 1.2%

In 2010, expenditures on reclamation were 10.7 times higher than they were in 2009, with 26.4 hectares of contaminated land being reclaimed.

Payments from TMK facilities for negatively impacting the environment decreased by 18% during the reporting period and amounted to 27.7 million rubles.

International Standards and Initiatives

TMK supports and implements international initiatives and agreements on environmental protection. In its activities, the Company takes into account the commitments made by Russia in ratifying the UN Framework Convention on Climate Change. Implementation of the project “Reconstruction of Steelmaking at Seversky Tube Works,” together with its high environmental and energy efficiency, as well as social importance, has led to a reduction in greenhouse gas emissions. In 2010, project received a letter of approval letter from the Russian government, which allows it to employ an economic mechanism stipulated by Article 6 of the Kyoto Protocol. Cash received from the sale of greenhouse gas emission reductions will be fully channeled to further modernize production, as well as improve its environmental and energy efficiency.

The Company’s Romanian and American plants fully comply with the requirements and obligations on greenhouse gas emissions set by law.

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