ME Elecmetal’s Circular Business Model: Closing the Loop on Global Sustainable Mining

Across the global mining value chain, companies face increasingly complex challenges that go beyond production efficiency. These include addressing social and environmental responsibilities, optimizing resource efficiency, and minimizing operational impacts. Key priorities include the responsible management and reduction of waste, extending the useful life of materials and equipment, accelerating the transition toward electromobility, and reducing the carbon footprint across the entire supply chain. Together, these challenges directly influence not only productivity and profitability but also the industry’s ability to achieve sustainable mining practices, generate long-term social and environmental value, and maintain a strong social license to operate.

In this context, ME Elecmetal’s customers seek more than individual products—they expect Integrated Solutions that align with evolving market demands and international sustainability standards. ME Elecmetal delivers this through a comprehensive approach that combines sustainability, efficiency, and traceability to minimize environmental impacts, reduce the generation of liabilities, and maximize the efficient use of resources and materials throughout the production cycle. This integrated vision is essential for building a responsible, resilient, and future-ready mining industry, capable of meeting the challenges of both today and tomorrow.

Grounded in the principles of the circular economy, ME Elecmetal’s business model delivers Integral Solutions that combine innovation, performance, and environmental responsibility. This approach is structured around four core lines of work, each designed to maximize resource recovery, extend product life, and reduce environmental impact throughout the mining value chain.

  1. Special Steel Production: ME Elecmetal manufactures high-performance wear parts for grinding and crushing mills, as well as components for earth-moving equipment. The company operates strategically located foundries in Rancagua (Chile), Duluth and Tempe (USA), Changzhou (China), Callao (Peru), and Johannesburg (South Africa). Each facility operates
    under detailed Circularity Maps that guide material recovery and reuse.

    • Internally, metallic raw material is continually recycled through the return of in-house scrap that never leaves the plant.
    • Externally, recovery models are implemented with both direct and indirect customers, and to a lesser extent, selected third parties.
      (In China, the process focuses on full traceability of recovered materials sourced from verified metal suppliers.
  2. Grinding Media: Through ME Long Teng, a joint venture with a leading Chinese manufacturer, ME Elecmetal produces high-quality grinding media that meet the highest performance and sustainability standards. Together, both companies are developing CO₂Lite™, an innovative line designed to significantly reduce carbon emissions while ensuring global supply reliability.
  3. Collaborative Manufacturing Partnerships (CPS): ME Elecmetal strengthens its circular ecosystem by partnering with strategic manufacturers and industry collaborators. These partnerships expand the company’s capacity to develop circular solutions at scale, ensuring consistent quality, efficiency, and sustainability across regions.
  4. Digital Solutions for Mining Operations: Complementing its physical products, ME Elecmetal offers digital early-warning and monitoring services that optimize equipment performance and prevent unplanned downtime. These tools integrate operational intelligence into the mining process—extending equipment life, improving reliability, and supporting data-driven decision-making for a more efficient and sustainable operation.

“The Circular Business Model demands a holistic vision—one that spans from sourcing raw materials to establishing customer agreements that enable the recirculation of what was once considered scrap. It also involves developing innovative solutions to recover and repurpose waste, transforming it into new resources. This approach engages our teams at every stage of the process, all united by the conviction that it is possible to advance toward a more sustainable and responsible mining industry.”

— Manuel Maureira, Deputy Manager of Circularity at ME Elecmetal South America

ME Elecmetal is committed to delivering maximum value to its customers through an operational model designed to achieve Full Circularity by 2050. This milestone represents the recovery and reuse of 100% of the company’s plant waste and full traceability of all raw materials—including 95% metallic feedstock and 5% ferroalloys.

Through this commitment, ME Elecmetal aims to:

  1. Scale its circular business model globally

  2. Contribute to the elimination of environmental liabilities

  3. Generate long-term value for customers, communities, and shareholders

To advance circularity across its operations, ME Elecmetal is implementing a series of initiatives that integrate technology, process innovation, and customer collaboration:

  • ME PolyFIT® Plant: Manages the separation of steel and rubber using specialized reactors. The recovered steel is reused in production, while rubber is converted into oil, gas, and carbon black—all of which are reintegrated as valuable resources.

  • Footprint Alliance (Nogales, Chile): A pilot plant dedicated to scrap recycling and grinding media recovery, designed to minimize waste and strengthen circular practices across the mining value chain.

  • Repair Centers (Rancagua and Antofagasta, Chile): Specialized facilities that extend the life cycle of mining machinery and components, reducing material consumption and contributing to operational efficiency.

  • Waste Recovery under the Clean Production Agreement (APL):  At ME Elecmetal’s Rancagua plant, 77% of waste generated was successfully recirculated, marking significant progress toward the company’s commitment to industrial sustainability.

  • Sustainability Certificates: Since 2024, ME Elecmetal has issued Environmental Product Declarations (EPDs) for its own products. These certificates allow customers to measure the circularity of their purchases, assess their carbon footprint reduction, and determine how many greenhouse gas (GHG) emissions are avoided through ME Elecmetal’s Integral Solutions.

ME Elecmetal continues to strengthen the integration and globalization of circular practices across all its operations, ensuring that sustainability principles are embedded throughout the value chain. This global approach also helps address Scope 3 emissions for customers, making circularity more effective, measurable, and impactful across shared sustainability objectives.

Thanks to the successful implementation of the Clean Production Agreement (APL) at the Rancagua plant, ME Elecmetal achieved a 77% waste recirculation rate, marking a significant step forward in its ongoing commitment to industrial sustainability and continuous improvement.

Through its Circular Business Model, ME Elecmetal continues to redefine how the mining industry approaches sustainability—transforming waste into value, extending the useful life of materials, and driving innovation across every stage of the process. By fostering collaboration, digital integration, and continuous improvement, the company is advancing toward its goal of achieving Full Circularity by 2050. This long-term vision reflects ME Elecmetal’s unwavering commitment to building a more efficient, responsible, and sustainable mining industry—creating lasting value for customers, communities, and the planet.

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