Michael Bender Mercury Policy Project/Zero Mercury Working Group Montevideo, Uruguay April 2009

 USA Mercury Supply and Trade Context  Policy Deliberations  Highlights of New Export Ban Law  Estimated Cost of Above Ground Mercury Storage

 USA Government Stockpile  Sales of Hg halted since mid 1990s even though no longer needed  To be discussed in detail by Dennis Lynch  Civilian Sources  Byproduct generation from industrial gold mining (currently about MT annually)  Recycling of wastes and products (currently about MT annually)  Decommissioning of mercury chlor-alkali plants  Imports of calomel and mercury

Imports Exports Net Exports

 Increased attention to mercury emissions from industrial gold mining  Increasing mandates to recycle mercury products  Significant reduction in number of mercury cell chlor-alkali plants (but after 2009, only 4 plants left)  Decreased demand due to phase-out of mercury use in product manufacturing

 2005 Top 5 Countries  Netherlands, Guyana, Mexico, India, and Spain  2006 Top 5 Countries  Netherlands, India, Viet Nam, Spain, Singapore  2007 Top 5 Destination Countries  Viet Nam, Peru, Colombia, Singapore, Guyana

 Trends leading to mercury exports expected to continue  EPA estimates 7,500-10,000 MT of mercury from civilian sources will require storage over next 40 years  Estimate is based on expert opinion, since EPA does not require reporting of mercury supply, use, or trade

 Federal government creates interagency task force to obtain information and review policy options  Expert stakeholder panel formed and meets four times from May-September 2007 to provide input  No recommendation formally emerged; process overtaken by action in Congress  Congress enacts the Mercury Export Ban Act of 2008 with support of NGOs and state governments

 Federal government mercury stockpile can never be sold or placed into commerce, effective immediately  Beginning January 1, 2013, the export of elemental mercury is prohibited  EPA must submit a Report to Congress within one year on mercury compounds and whether export ban should be extended to cover them

 Limited exemption from export ban available  Requires submission of petition to EPA and opportunity for public comment on the petition  Must prove receiving country wants the mercury and has no other supply available  Must prove mercury will be used and managed in a manner protective of local and global public health  Must prove export of mercury is consistent with international obligations  Each petition limited to three years and 10 MT

 Federal government must establish a site that can be used for long-term management of mercury from civilian sources  Government authorized to charge a fee for this service  Private company may also develop a site  Any facility must be licensed under hazardous waste law

US EPA TOTAL 40-YEAR STORAGE COST ESTIMATES FOR A GOVERNMENT FACILITY OPERATOR (2006 DOLLARS) 7,500 METRIC TONS 10,000 METRIC TONS Total Project Costs (undiscounted) $ $99.8 million $ $126.0 million Net Present Value of Total Costs $ $30.0 million $ $36.4 million Annualized Costs $1.9 - $2.2 million $2.3 - $2.7 million Annualized Costs per pound $ $0.136 $ $0.124

US EPA SUMMARY OF ESTIMATES OF TOTAL STORAGE COSTS PRIVATE FACILITY FOR 40 YEARS (2006 DOLLARS) TOTAL COST ESTIMATES RENT SCENARIO BUILD SCENARIO 7,500-Metric Ton Scenario Total Project Costs (undis.)$ $144.2 mil $ $137.7 mil NPV of Total Project Costs $ $39.9 mil $ $41.0 mil Annualized Costs $1.4 - $3.0 mil $1.3 - $3.1 mil Annualized Costs per pound $ $0.181 $ $ ,000-Metric Ton Scenario Total Project Costs (undis.) $ $183.9 mil $ $174.9 mil NPV of Total Project Costs $ $50.9 mil $ $51.9 mil Annualized Costs $1.6 - $3.8 mil $1.5 - $3.9 mil Annualized Costs per pound $ $0.173 $ $0.177 Assume Perpetual Storage6.2% - 7.5% +4.8% - 6.6% +