Green Economy Forum 2018 Base Industry and Transition 19.05.2019 20:30 Green Economy Forum 2018 Base Industry and Transition to Circular Economy Tim Kurth CEO, Aurubis Bulgaria Sofia 7th of December 2018

Aurubis Group. Beyond the Classic Smelting 95,8 Aurubis Group. Beyond the Classic Smelting Non-ferrous metals recycling in 5 sites. Lünen: world’s largest copper recycler. Fehrbellin Cable scrap Hamburg Copper scrap Intermediates E-scrap Others Lünen Copper scrap Alloy scrap Shredder materials Industrial residues E-scrap Copper-iron material Others Olen Copper scrap Pirdop Copper scrap Established in Hamburg in 1860s. Now Europe’s largest copper group. 6400 employees. 15 sites in 11 countries. Sales network in 24 countries worldwide.

Aurubis Bulgaria Second largest company in Bulgaria. Leading EU producer of LME certified cathode copper Class A, brand ‘Pirdop’. Over 9% of exports and 6% of imports of Bulgaria for 2017. Largest taxpayer in the country. BGN 1.2 B investment since 1998. New BGN 260 M investment for the period 2019-2022 860 direct, over 2500 indirect jobs. Sustainable social policy. Support of education, culture, young talents, sports, healthcare. Partner of the Bulgarian Presidency of the Council of the EU in 2018. Visit of EU-28 Environment Attachés to the Pirdop copper smelter.

60 Years of History Implementation of the Outokumpu technology Raw materials terminal and acid terminal Port Burgas Extended environment protection program Expansion of Flotation Plant First expansion of facilities 1963- 1966 1983- 1987 1999- 2001 2017- 2018 2010 1958 1966 1987 2008 2017 Opening of Pirdop copper plant Implementation of reversed high density current in cathode production New Smelter New Tankhouse Launch of Fit-For-Future project

The Aurubis Group Cycle Copper cathodes Precious metals Nickel sulfate Selenium, lead-tin alloy Sulfuric acid, Iron silicate 46 Pd 47 Ag 78 Pt 79 Au 45 Rh 52 Te 82 Pb 28 Ni 34 Se 75 Re 50 Sn Smelting and refining process Concentrates Further processing Scrap / intermediates Continuous cast shapes Closing the loop Scrap collectors Wire rod Consumers Flat rolled products Processors and end users Specialized applications for by-metals

Green Economy, Industry 4.0 Require Metals 1700 1800 1900 2000 Sustainable growth in non-ferrous metals demand

+200% +300% +1000% metals demand increase by 2050 5/19/2019 8:30 PM Low-Carbon Energy Requires Metals +200% metals demand increase by 2050 Solar metals demand increase by 2050 +300% Wind +1000% metals demand increase by 2050 Energy Storage Source: World Bank (2017) Energy and mobility will be the driving force for many technical innovations in the coming years. The majority of these would be inconceivable without metals. The ongoing digitalization alone places growing demands on circuits, storage technology and high-performance chips. These and many other challenges would be unmanageable without copper, gold, silver, nickel and additional metals, which are also produced by Aurubis. Metals also play an important role in the development of other technologies of the future, such as wind power and synthetic fuels. E-Mobility and autonomous driving are two key-words: with batteries and electric motors, hybrid and electric cars are particularly changing the raw material needs. Nickel and manganese will play an important role in further developments -- and naturally copper.

Go Circular. Efficient Extraction, Less Waste 19.05.2019 20:30 Go Circular. Efficient Extraction, Less Waste Base metals and their by-metals Strong know-how for expanding from copper to multi-metal Looking for synergies between process steps and copper & lead metallurgy Investment in R&D for innovative solutions Moving to Future Complex Metallurgy Copper is the primary metal supporting Aurubis and will also remain a very important metal for Aurubis in the future. Copper concentrates provide a variety of by-metals; copper is therefore the optimal carrier metal of a multi-metal strategy. Thanks to metallurgical expertise and experience in combining process steps, Aurubis is perfectly positioned to exploit the full potential of copper as a carrier of a variety of metals. A good example of this is the connection of copper and lead metallurgy, through which Aurubis is able to efficiently make complex raw materials usable.

Go Circular. Three Case Studies 95,8 Go Circular. Three Case Studies Scrap Water Energy Lünen Pirdop Hamburg Kayser Recycling System Rainwater Treatment Plant Hafencity Heating Project Innovative recycling solutions High multi-metal recovery rates Best environmental standards Innovation developed by R&D Lab testing before commissioning Development of specific solutions Industrial heat for households Thermal energy from H2SO4 process 20 000 tons / y of CO2 prevented

E-waste recycled properly in Europe Go Circular. Opportunities Technology metals Base metals >95% buildings >90% automotive <35% E-waste recycled properly in Europe (2015) For every one tonne of e-waste Europe recycles, two tonnes are a lost opportunity >60% packaging … only if we maximize collection and recycling

Go Circular. Challenges 19.05.2019 20:30 Go Circular. Challenges Non-ferrous metals can fully return to the economic cycle Unlimited recycling without quality losses Preserving natural resources Saving energy European industry needs legally binding norms to enable the Circular Economy Scrap processing standardс like EN 50625 for e-scrap Conflicting policy objectives may impact efficiency: Low-carbon targets Indirect carbon costs in energy prices

Go Circular. Challenges 19.05.2019 20:30 Go Circular. Challenges Solving the fayalite challenge Non-ferrous metals industry produces large quantities of iron silicate (fayalite). Pirdop produces 800 000 tonnes / y Variety of potential implementations in construction Saving natural minerals Saving energy Reducing landfill Wastes of today are resources of the future

Source: Wood Mackenzie, 2018 / own data Taking Care. The Pirdop Example SO2 emissions of copper plants (kg SO2 / t of copper) SO2 emissions of Pirdop plant (kg SO2 / t of copper) Hamburg copper plant 4 Pirdop copper plant 5 Average: European smelters 79 International smelters 99 Pirdop Hamburg Dust emissions of Pirdop plant (g / t of copper) Source: Wood Mackenzie, 2018 / own data One of the most environmentally friendly copper producers in the world today 255 times dust emissions reduction since 2000 25 times SO2 emissions reduction since 2000

To turn the Supply Chain Europe needs a long-term industrial strategy 95,8 The Ultimate Target Manufacturing Consumption Collection Recycling Production To turn the Supply Chain into a Supply Circle Base industry segment Raw materials Europe needs a long-term industrial strategy Waste The issues zone

Green Economy Forum 2018 Base Industry and Transition 19.05.2019 20:30 Green Economy Forum 2018 Base Industry and Transition to Circular Economy Tim Kurth CEO, Aurubis Bulgaria Sofia 7th of December 2018