APERAM SOUTH AMERICA

ARCELORMITTAL AÇOS LONGOS

ARCELORMITTAL TUBARÃO

CIA. SIDERÚRGICA NACIONAL - CSN

GERDAU AÇOMINAS S.A.

GERDAU AÇOS ESPECIAIS S.A.

GERDAU AÇOS LONGOS S.A.

SIDERÚRGICA NORTE BRASIL S.A. - SINOBRAS

THYSSENKRUPP CSA - CIA. SIDERÚRGICA DO ATLÂNTICO

USIMINAS

VALLOUREC & SUMITOMO TUBOS DO BRASIL - VSB

VALLOUREC

VILLARES METALS S.A.

VOTORANTIM SIDERURGIA S.A.

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Brazil Steel Institute

Associated Companies

STEEL | Building a Sustainable Futurewww.acobrasil.org.br/site/english

Av. Rio Branco, nº 108 - 29º Andar - Centro - Rio de Janeiro - RJ - CEP: 20040-001

Phone: (+55 21) 3445-6300 - Fax: (+55 21) 2262-2234 - E-mail: acobrasil@acobrasil.org.br

It was created in 1963, to promote competitiveness of

Brazil steel industry and perform several activities such

as studies, researches and representation in private and

public forums. Throughout these years, the Institute has

always been engaged with sustainable development

within the country and social demands, as shown in its

actions for sustainability, based on economic, social and

environmental principles.

Steel Production

Manufacturing

Pre-consumer steel scrap

100% recyclable

Post-consumer steel scrap

100% recyclable

Use

Reuse and remanufacturing

Steel recycling

Raw material extraction

CHARCOAL SUSTAINABILITY PROTOCOL THE LIFE-CYCLE OF STEELENVIRONMENTAL PERFORMANCE IN 2014

Charcoal Sustainability Protocol, an initiative by Brazil Steel Institute and its

associated companies, was launched in 2012. There are 8 commitments in this

protocol, and one of which is to present all activities performed on annual

basis, as follows:

Protocol Commitment

1. To operate within the principles of sustainable development and in full compliance with the legislation, considering environmental, social and economic aspects in an integrated and harmonic manner.

5. To establish partnerships with the Government Authorities in order to develop programs for raising social and environmental awareness among charcoal suppliers;

6. To conclude, within 4 years, full compliance of forest stocks with the respective production demands by means of own plantation or outsourced plantation, provided in accordance with the legal requirements.

7. To act with the Government to continue the development and implementation of technologies regarding impounding and burning of gases produced during the process of charcoal production, aiming at reducing greenhouse gas emissions.

8. To present, in a regular basis, the development of those aforementioned actions in the Sustainability Report of the steel industry.

2. To act with the production chain towards eliminating practices and activities that violate labor rights or cause damage to the environment.

3. To only maintain commercial relationships with companies in full compliance with all legal, social and environmental requirements.

4. To require, as per the legislation in force, all relevant documents from producers of charcoal and derived products.

Permanent commitment of steel companies during their operations, as well as full compliance with legal requirements and sustainability principles during production of steel, requiring from their suppliers a sustainable production of raw materials and inputs.

Steel industry took a big step towards the development of a social and environmental awareness program with charcoal suppliers, with the development of the Booklet on Charcoal Sustainable Production.

The Booklet addresses four fundamental themes: health and safety, legal forest, environmental and working conditions.

In 2014, 93% of the total amount of charcoal used in steel production by Brazil Steel Institute members came from own planted forests or outsourced planted forests, in accordance with legal requirements.

Preparation of a working plan to develop a technology regarding impounding and burning of gases produced during the process of charcoal production, in pilot phase.

Activities performed during 2014 are presented in this publication.

Preparation, in progress, of ABNT technical standard providing guidance for a Sustainable Production of Pig Iron by Charcoal, addressing environmental, social and labor aspects.

Government authorities, universities, NGOs, pig iron and steel producers were invited to participate in the preparation of such standard.

Performed actions 2014/2015

The Brazilian steel industry invests in the generation of its own energy, by

reusing of gases generated in production process in thermal power stations

or hydroelectric plants. In 2014, 53% of the energy consumed in plants

was self-generated (being 43% from thermal power stations and 10% from

hydroelectric plants).

Steel is the world's most

recycled material. It may be

continuously recycled without

losing its quality.

9.6 million tons of steel scrap

were recycled in 2014.

Throughout 2014, the companies of this industry invested R$ 1.2 billion

in environmental protection programs. These initiatives involve energy

preservation, recirculation of water and steel recycling programs.

Brazil Steel Coproducts Center, created in Brazil Steel Institute promotes actions for

technical qualification and adding value to steel co-products, in order to foster its use in many

applications.

The most recent measures and outcomes are:

Publication of ABNT NBR 16364:2015 Standard for application of aggregate steel as

sub-base and base.

Fiscal reclassification of steel steel slag in NCM 2517.20, as macadam of blast furnace

slag, of other slags or similar waste.

Development of a study, along with DNIT, for application of aggregate steel as base and

sub-base in experimental stretches.

energy

investments Blast furnace and steel slags are used to produce cement, road pavement and other

applications. The dusts and sludge collected in pollution control systems are recycled in the

process, replacing a portion of raw materials, therefore decreasing the consumption of

non-renewable resources.

* including pellets

Charcoal244 10³ t

Raw materials from internal sources

Coke9.013 10³ t

Sinter31.590 10³ t

Charcoal1.381 10³ t

Pig Iron26.018 10³ t

Internal Scrap2.969 10³ t

Recirculated freshwater6 billion m³

95% recirculation

Electricity(own power generation)

10.121 mil MWh

Crude Steel33,9 million t

Coproducts22 million t

19% from hydroelectric power plants

81% from thermal power

plants

Pig Iron1.656 10³ t

Iron ore*41.601 10³ t

External Scrap 6.646 10³ t

Collected Freshwater294.488.873 m³

Purchased Electricity8.843 mil MWh

Coal / Anthracite 14.342 10³ t

Coke2.589 10³ t

842.000 haof reforestation

(own)

387.000 haof Preservation

Areas (legal and volunteer)

Raw materials from external sources

Brazil Steel Industry

2014

Steel Production Park:

29 Plants (14 Integrated and

15 Semi-integrated) Controlled

by 11 groups

Net Sales:

R$ 72,8 billion

(US$ 31,1 billion)*

Taxes Paid:

R$ 16,3 billion

(US$ 7,0 billion)*

Installed Capacity:

48,8 million t/year of

crude steel at the end of 2014

th9 Producer in World Ranking

Production (t crude steel):

Brazil = 33,9 million t

World = 1.665,1 million t

2,0% (Brazil/World)

Latin America = 65,4 million t

51,8% (Brazil/Latin America)

Productivity:

355 t/employee/year

(*) Conversion at the monthly average

rate for Dollar.

Workforce:

Own workforce = 71.473

Sub-contracted workforce = 50.666