ME Elecmetal Drives Forward in Sustainability with Decisive Progress

Across the globe, multiple signals have emerged at both global and local levels, highlighting environmental and social challenges, particularly the effects of climate change. These signals, along with the commitments made by companies in the mining sector, underscore the industry’s immense capacity to positively influence these critical issues. Additionally, regulators and risk evaluators have increasingly demanded greater transparency in the disclosure of Environmental, Social, and Governance (ESG) management. This shift has placed sustainability at the heart of business decisions, empowering companies to set ambitious sustainable development goals and strategically plan and invest in their achievement.

As a result, mining clients and companies across various sectors now require that their purchases and tenders incorporate management practices that address key areas such as:

  • Renewable energy, carbon emissions, and water and waste efficiency management.
  • Health and safety measures for operations, as well as for suppliers and contractors.
  • Increased participation of women, along with other aspects of diversity, equity, and inclusion.
  • Local development, focusing on impact avoidance or mitigation, and understanding the communities affected while fostering timely relationships in areas of influence.
  • Deep knowledge and coordinated management of the supply chain.
  • Strong, transparent, and diverse corporate governance.

This integrated approach to these areas, among others, has driven the global consolidation of the ME Elecmetal Sustainability Strategy. In its initial implementation cycle, the strategy is already enhancing the value offered to customers and fulfilling ME Elecmetal’s goal of being a Partner for Sustainable Mining.

In terms of sustainable development, clients have implemented their own strategies and policies, along with the specific tools necessary to address climate change, biodiversity protection, energy transition, and the circular economy, while also incorporating social and corporate aspects. They have committed to concrete targets for these issues over the coming decades.

Simultaneously, data reveals that the greatest complexities lie within the supply chain. It is precisely in this area that supplier companies, such as ME Elecmetal, aim to add value and collaborate with clients to achieve their sustainability objectives and goals. This involves developing sustainability initiatives based on current, transparent, and evidence-based parameters.

It is common practice for customers to evaluate their suppliers through contracts that incorporate ESG aspects of supplier management. These contracts translate into precise metrics that allow clients to assess performance and track progress towards committed targets, helping to quantify positive developments in critical management areas.

Since its inception in 1917, sustainability has been central to ME Elecmetal through continuous circularity of metallic raw materials, innovation, and collaborative efforts. The company’s journey can be divided into two key phases, with 2001 marking a pivotal moment:

  1. Foundation and Development (1917-2001): This period saw the establishment of Compañía Electrometalúrgica in Chile in 1917, which later became Elecmetal. In the United States, Minneapolis Electric Steel, founded in 1912, reopened in 1917 after a fire and was later expanded with the purchase of Capitol Castings in Tempe. The year 2001 marked the consolidation of Minneapolis Electric Steel by Elecmetal, creating the global entity now known as ME Elecmetal.
  2. Expansion and Diversification (2001-Present): Key highlights of this phase include the acquisition of smelters in Duluth (Minnesota) and Tempe (Arizona), leading to the formation of ME Elecmetal. The company then entered China through a 50/50 joint venture with Long Teng Steel, resulting in ME Long Teng (MELT) and the establishment of a new Grinding Ball Plant in Changshu, China. This was followed by the modernization and expansion of the Rancagua Plant (2009-2012) and the establishment of a fully owned casting plant in Changzhou, China, in 2014. Additionally, a new MELT Grinding Ball Plant was opened in Zambia (2016-2018). In early 2024, ME Elecmetal acquired the Funvesa foundry in Peru and launched the Global Sustainability Committee, initiating the worldwide implementation of ME Elecmetal’s Global Sustainability Strategy.

This expansion and diversification have intensified the focus on sustainability issues, reinforcing the corporate purpose of being a Partner for Sustainable Mining.

The Global Sustainability Committee (GSC) is dedicated to advancing ME Elecmetal’s Sustainability Strategy, aligned with our four core Pillars: The ME Elecmetal Signature, Our People, The Environment, and Value Creation Connections. Our efforts are designed to support and integrate these pillars with our strategic business objectives, encompassing core operations as well as regional and local management initiatives.

Recent Actions:

  • Corporate Task Force: Established and aligned KPIs for disclosure in the 2024-2025 Reporting Plan, embedding sustainability into our core business strategy.
  • People Task Force: Designed a global DEI program based on comprehensive benchmarking.
  • Environment Task Force: Collaborated with the Global Manufacturing Team (GMT) to disclose four key KPIs: energy consumption, metallic raw materials in production and supply, environmental management systems and certifications, and GHG emissions measurement.
  • Commercial Task Force Group: Developed the Sustainability Presentation for Customers, aligned with the 2024-2025 Reporting Plan, leading to ME Elecmetal’s first Integrated Report by March 2025.

 

Progress of Prioritized Initiatives:

The ME Elecmetal Signature:

  • Sustainability fully integrated into business strategy.
  • KPIs incorporated in each pillar task force group.

Our People:

  • Completed global benchmarking on DEI, including results by country and industry.
  • Initiated the global D&I program design process with HR.

The Environment:

  • All plants measuring scope 1 and 2 GHG emissions, with verification planned by end of 2024 (preliminary verification underway in ME Elecmetal China).
  • Conducted global training on GHG Protocol scope 3.
  • Analyzed carbon emissions from metallic raw material processing.

Value Creation Connections:

  • Implemented a detailed 2024-2025 Sustainability Reporting Plan, reinforcing ME Elecmetal’s accountability culture.

“We initiated the Global Manufacturing Team meetings about five years ago. Since then, we’ve built numerous connections and shared extensive knowledge. Now, we’re poised to advance towards more measurable data, fully contributing to ME Elecmetal’s Sustainability Strategy on a global, regional, and local scale.”

— Scott Schudalla, Vice President of ME Elecmetal Manufacturing — North America.

 2024-2025 Sustainability Reporting Plan 

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