Translated version of this PSD: Turkish
Project description and objectives
The EBRD is considering a US$ 20 million long-term loan to Befesa Silvermet Iskenderun Celik Tozu Geri Donusumu A.S. (“BSI”, the “company”) to finance the expansion of a steel dust recycling and Waelz oxide production plant located in Iskenderun. The project will increase the installed electric arc furnace dust (“EAFD”) treatment capacity by more than 80 per cent to 110,000 tons/ year.
Generated by steel mills, EAFD is considered as hazardous waste that needs to be recycled or disposed of in specialised landfills. The project will serve the treatment of EAFD through Waelz technology to produce WOX (secondary zinc) which will further be sold to zinc smelters. Thus the loan will support a commercial solution for recycling zinc from steel dust instead of producing it from limited natural resources. It will have a direct environmental benefit by significantly reducing the amount of hazardous waste sent to landfills.
Befesa Zinc, Europe’s leading steel waste recycler, brings its know-how to Turkey by applying the best available techniques and transferring skills by training the local workforce.
The company produces a high-value product with regional and worldwide demand and the steel-makers benefit by decreasing the environmental and cost liabilities associated with the disposal of the dust. The project is expected to provide a strong demonstration to other potential players on how to plan and implement a commercially attractive recycling business.
Success of the project could have significant demonstration to other countries where the EBRD invests, especially those with a significant concentration of steel production from electriarc furnaces and no stringent regulation on disposal of steel dust.
The project will set new performance standards in the steel recycling sector in Turkey as it represents Befesa’s flagship technology and will outperform market standards by higher yield and lower energy consumption ratios. The project will also contribute to the transfer of know-how and skills to the local labour force.
BSI, established in Turkey, operates a steel dust recycling plant in Iskenderun. The company is fully owned by Befesa Silvermet Turkey S.L. (“BST”) a 51%-49% joint venture organised in Spain between Befesa Zinc S.A.U and Silvermet Inc.
Befesa Zinc S.A.U is currently Europe’s leading recycler of steel waste with steel dust processing capacity of 670k tons/year. Silvermet Inc. is a Canadian company that has been developing the EAFD recycling business in Turkey since 2005.
US$ 20 million long-term loan.
Total project cost
US$ 25 million.
Environmental and social categorisation, impact, and mitigation
Categorised B. Major extension projects involving the chemical treatment of hazardous waste are covered under the indicative list for Category A projects under the EBRD’s Environmental and Social Policy (2008). This project is however categorised B for the following reasons:
(i) this is a brownfield project which involves expansion and modernisation of an existing EU-compliant steel dust recycling plant;
(ii) the project is located in an industrial area;
(iii) the process is based on proven standard technology in the industry which is considered a best available technology (BAT);
(iv) the project is associated with limited site specific environmental and social (E&S) impacts which can be managed via the implementation of targeted mitigating measures; and
(v) similar facilities operated by the client within the EU have proven to have no significant E&S impacts.
Currently BSI does not have a formalised EHSS management system in place but an integrated management system is under development, and the company plans to apply for OHSAS 18001, ISO 9001, ISO 14001, ISO 14064-1 certifications within 2015.
The current emissions from the facility comply with Turkish and EU standards. With the implementation of the proposed project, recovery rate of zinc is expected to increase by 30 per cent. The refurbishment will also enable improvements to the facility and its modernisation. Another direct benefit of the project will be the reduction of the amount of hazardous waste sent to landfills.
The local Environmental Impact Assessment (EIA) process for the project is ongoing. An EIA Application file was submitted to the Turkish Ministry of Environment and Urban Planning in August 2014 and a draft EIA report was submitted in October 2014.
BSI will prepare a plan to address the terms of employment during the period when the facility is closed down for refurbishment. It will be agreed with the EBRD.
An Environmental and Social Action Plan (ESAP) has been developed to address the identified issues and will be agreed with the client before the project is approved by the EBRD’s Board of Directors. The main actions in the ESAP include the following areas:
Certification for ISO 9001, 14001, OHSAS 18001 and ISO 14064;
Implementation of a monitoring plan;
Development of a human resources policy and procedures;
Development of a plan for the employment terms for the six months standstill period;
Development of an internal grievance mechanism;
Improvements to health and safety procedures and practices;
Renewal of environmental permits and licences;
Improvement of raw material storage area, hazardous waste storage areas and hazardous material storage area;
Conducting an asbestos survey;
Comply with the requirements of the Turkish Soil Pollution Control Regulation, which will come into force in June 2015; and
Adaptation of the SEP including external grievance mechanism.
The project will be monitored through annual E&S reports. Monitoring visits will be carried out if deemed necessary.
Marta Deprit Garcia (Befesa)
For business opportunities or procurement, contact the client company.
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Text of the PIP