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Aluminium|Crushing|Energy|Environment|Fire|Refining|Water|Environmental
Aluminium|Crushing|Energy|Environment|Fire|Refining|Water|Environmental
aluminium|crushing|energy|environment|fire|refining|water|environmental

Decarbonising metal, even only partly, can earn you a price premium

19th June 2020

By: Martin Creamer

Creamer Media Editor

     

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For the first time in its 143-year history, the London Metal Exchange (LME) will be using greenness and cleanness as a trading factor. Aluminium produced with clean electricity will receive a low-carbon halo, and aluminium produced with the usual fire and brimstone will occupy an inferior rung. Investors have for some time been very demanding about the social – the S – and the governance – the G – of ESG; now they’re being very demanding about the E – environment.

“We’ve now moved to the next great emerging challenge of ESG in metals, which is environmental,” said LME CE Matt Chamberlain. Aluminium is made by crushing and refining bauxite into a white alumina powder and then smelting the white alumina powder into aluminium metal. What’s so different about that process and the processes of every other metal?

Yes, aluminium does use a heck of a lot of electricity, and, no, the LME is not working alphabetically down to zirconium. Nevertheless, producers of all ores and metals would do well to use the sun, wind, fast-flowing water and other sources of zero-emission energy, even if only partly. The LME is not saying no carbon but it is saying low carbon. Those who continue to display a burn-and-emit stubbornness are playing with funding fire.

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Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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