Nama - English by Maaden - Saudi Arabian Mining Company

Ma’aden bi-annual sustainability periodical

Issue one September 2015 - 1436H

Sustainability... Our Path to Excellence Saudi Phosphate: From Jalamid Mine to India’s Farms Ma’aden Uses Treated Wastewater for Gold Operations Turaif Women Enter the Business World From Wa’ad Al Shamal Gate

General Supervisor Waleed Al Shaikh Director of Corporate Communication ShaikhW@Maaden.com.sa Editor in Chief Aqeel M. Alonazi AlonaziAM@maaden.com.sa Consulting Committee Ahmed Ajabnoor Abdulghafoor Al-Dubaisi Mishal Al-Mutairi Darko Kulas Khalid Al-Shariff Abdulrahman Al Sum Naser Saleh Al Washmi We welcome your comments and suggestions which can be sent to the editor in chief, Aqeel Alonazi: AlonaziAM@maaden.com.sa Ma’aden Head Office P.O. Box 68861 Riyadh 11537 Kingdom of Saudi Arabia Tel.: +966118748000 Fax: +966118748300 A limited number of copies of this periodical were printed in line with Ma’aden’s efforts to conserve resources and protect the environment. However, you can download an electronic version of Nama bi-annual periodical from Ma’aden’s website: http://www.maaden.com.sa The reproduction or reprinting of any part of this periodical must have the express permission of the publisher, who reserves the right to initiate legal action against any violation.

Published by Alef international on behalf of Saudi Arabian Mining Company Ma’aden

info@alefinternational.com

Ma’aden Sustainability Goals Ma’aden is constantly striving to be a world class mining enterprise and a leading industry player within the Kingdom of Saudi Arabia, and the best way to achieve that goal is through sustainable practices. Which is why Ma’aden takes great pride in approaching every business decision it makes through the lens of sustainable development. It is not enough to simply be the best this quarter or this year. Ma’aden seeks to remain the best for generations to come and inspire others to think and act sustainably as well.

To accomplish this, Ma’aden has set 5 goals for itself. 1. Pro-actively drive sustainable development in all Ma’aden does. 2. Establish Ma’aden as a leader in sustainability among industrial companies in Saudi Arabia. 3. Conduct business ethically and responsibly. 4. Achieve excellence in environment, health and safety (EHS) by striving to achieve an injury and illness free environment while properly managing our environmental footprint. 5. Engage with our host communities to foster socioeconomic development and maintain the social license to operate. Although these goals are long term and far

reaching, we will make significant progress on all of them in the coming year. By the end of the fourth quarter of 2015, we hope to achieve diamond level two on our environmental health and safety management system, which means attaining two international certificates; OHSAS18001 and ISO14001. We will also have completed, installed, and trained staff on our new EHS and IHS management software, which we will then use to do an intensive assessment on the quality of the EHS management at our affiliate companies. In this periodical, you can see how these goals are taking shape in the everyday operations of our businesses, and how they are affecting the local communities. On p. 8 we present you a historical overview of the implementations of sustainability in global mining industry. On p. 16 we show you how products made in the arid deserts of Arabia are helping grow crops in the farmlands of India. On p. 24 we follow the treated wastewater pipeline from Taif to our gold mining operations in the Central Arabian Gold Region. We will show you how Ma’aden is impacting local communities and positively

inspiring women to take the initiative and start thier own business on p. 34. We are proud of all these achievements and we want to share them with you. We hope that they will inspire others to think and act sustainably in their own lives. In the coming issues of the periodical, Ma’aden will continue to bring you stories of the challenges and rewards along its journey to become a leader of sustainability in the Kingdom.

3 Issue one | September 2015

Khalid Al-Mudaifer President and CEO

CONTENTS Issue one September 2015 - 1436H

06 Sustainability... Our Path to Excellence

08 Regaining Reputation

24 Ma’aden Uses Natural Engineering to Treat Wastewater

14 Local and International News

5 Issue one | September 2015

Issue one | September 2015

Saudi Phosphate Fertilizers Contribute to Global Food Security

30 Conserving Resources Through the World’s Largest Treated Wastewater Pipeline

34 Turaif Women Enter the Business World From Wa’ad Al Shamal Gate

37 New in the World of Sustainability

Issue one | September 2015

those we serve. We realize that it is within our power to make this impact a positive one, and without a doubt we provide many benefits to our communities, partners, and shareholders. We recognize the importance of securing a just society, a strong economy, and a healthy environment for future generations. Sustainability is not a luxury, it is a human need and a shared value that Ma’aden is working to develop as an integral part of the Ma’aden culture. On our path to excellence Ma’aden has adopted a sustainability strategy that secures sustainable growth for both the company and the communities it serves. Ma’aden has developed sustainability initiatives and activities designed to improve Ma’aden’s performance and benefit the Saudi economy. Ma’aden’s concept of sustainability goes far beyond mere concern for the environment. It extends to creating job opportunities and training our work force, preserving the health and safety of our employees and the communities in which we operate, making responsible use of the natural and human resources of our communities, improving the efficiency of power and water consumption, decreasing our environmental footprint, managing waste through avoidance, reuse and

recycling, optimizing our use of raw materials, improving operational efficiency, providing quality products to best serve our customers, and empowering small and medium sized enterprises. Ma’aden recognizes the vital role played by small and medium sized enterprises in achieving economic development and spreading the culture of free enterprise among Saudi youth, who now form a majority of the population in the Kingdom, a percentage which will only increase with time. To support small and medium sized enterprises, Ma’aden works on developing the best methods to empower small investors to help grow and diversify the Saudi economy. The faster these companies grow and recruit more youth, the greater their impact will be on the national economy. At Ma’aden, we understand our responsibility to the communities in which we operate. Our

sustainability efforts will act as a road map to secure better futures for these communities. Ma’aden pledges to go beyond the basic requirements by adopting a policy of initiatives and activities that benefit both society and the environment. Throughout this periodical, Ma’aden seeks to set an example for sustainability practices and draw awareness to the necessity of sustainable thinking in every aspect of our lives. We are proud of what we have been able to achieve so far through sustainable practices, but we still have much more to do. Sustainability, after all, is not an end goal, but an ongoing process to secure a better future for ourselves, our children, and the world long after we are gone. Engineer Khalid bin Saleh Al-Mudaifer President and CEO

Sustainability... Our Path to Excellence Train the Workforce

Sustainability is not an abstract definition, it is a series of tangible actions that improve the society we live in, mitigate our impact on the environment, and make optimum use of resources.

Create Jobs

Empower SMEs

Improve Health and Safety

Increase Efficiency and Conservation

Make Quality Products

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There are different points of view regarding the correct definition of sustainability. The simplest definition is: a form of business management that balances economic, environmental and social aspects in order to achieve success for the company, its shareholders, and society as a whole without damaging the social or physical environment in which it operates. But sustainability is not an abstract concept. It is a series of tangible actions that improve the society we live in, mitigate our impact on the environment, and make optimum use of the resources we have been given. For Ma’aden, sustainability means a better way of life. The nature and volume of Ma’aden’s activities in the Kingdom means that we have a significant impact on all aspects of life in the communities we work in and on

Regaining Reputation

A Historical Perspective on How Sustainability Became a Game-Changer for the Global Mining Industry

Remember the movie ‘Avatar’ that hit global cinemas in 2009-10? The powerful tale of a greedy mining conglomerate seeking to destroy an indigenous people to grab their mineral-rich land moved millions of people and perhaps turned a whole generation against the mining industry. The film focused on the most hated aspect of an already maligned industry, from India to Guatemala: that of the “social license” to operate.

The Development of Sustainable Practices in the Mining Industry

1992 Earth Summit in Rio De Janeiro

The mining and minerals industry represents one of the most intense and visible ironies of our times. The industry is the bedrock of a multitude of modern products that we use in our daily lives. The sheer scale and the physical challenges of extracting from under the earth – huge excavations, massive engineering feats, the challenges of working underground to mention a few – should naturally evoke admiration and respect for the people, technology and end-results. Yet, the industry has been widely despised over a good part of the last century. Carrying historical baggage consisting of community displacement, deforestation and environmental damage including pollution of air, soil and

1994 Berlin Guidelines issued

water, industrial tragedies and greed, is the industry in a position to regain the respect it once had? Will it be able to turn around and claim its legitimate place in supporting economic and social development?

Panacea The answer is a definite ‘yes’. If every mining and minerals player in the world commits to the well-found principles and practices of sustainability, the industry would be in a strong position to reclaim its lost glory. Today, sustainability has become an allencompassing umbrella concept that includes social and fiduciary responsibility, safety, good governance, environmental

protection, fair treatment of labor, social and community license, and the scale of resource consumption. Which leads one to conclude that sustainability is the panacea for most of the industry’s reputational issues. Sustainability has become the inescapable buzz word for all industries, but more importantly, companies that are adopting proven and emerging sustainability practices – complete with tools to measure achievements – are scoring big in terms of performance and reputation. Industry reports indicate that the negative perceptions of the mining sector have begun to shift. In 2013, the World Gold Council commissioned an in-depth study of

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The sheer scale and the physical challenges of extracting from under the earth – huge excavations, massive engineering feats, the challenges of working underground to mention a few – should naturally evoke admiration and respect for the people, technology and end-results.

The industry’s corporate responsibility performance has moved in a positive direction over the past decade.

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2001 Forming of the ICMM

1999 Berlin II Guidelines issued

global stakeholder perceptions about the industry’s challenges. The findings showed that the industry’s corporate responsibility performance has moved in a positive direction over the past decade; the industry also scored high ratings on issues such as workplace safety, local employment, treatment of employees and contribution to economic development. However, stakeholders felt that mining companies should do more for local communities through community engagement and environmental management. Sustainability, as the word implies, is also about surviving the industry’s challenges now and in the future. According to the study, the stakeholders listed the environment, community, competition for and scarcity of resources (water, for example) as the most important challenges for the gold mining industry in the next 20 years.

Historical milestones The Earth Summit of 1992 in Rio de Janeiro marked the major turning point in projecting sustainability as an integral part of the world’s development agenda, and encouraging the business sector (and others) to conceive new approaches and programs. The summit sowed the seeds of the “triple bottom line” which expanded the conventional accounting and reporting framework to incorporate the social and environmental impact and performance of a business along with its financial performance. In later years, this concept was supplemented by corporate governance. A 2007 study from FBDS (Brazil Foundation for Sustainable Development) traces the development of sustainability in the mining sector back to early efforts in corporate social responsibility, the UN Environment Program (UNEP) and the 1994 Berlin Guidelines and

the Berlin II Guidelines of November 1999. “These pilot guidelines and their updated successors provide general guidance for sustainable management in the mining industry. The guidelines address the following at all stages of a mining operation: mining and sustainable development, regulation, environmental management, voluntary undertakings, community development, and artisanal mining,” says the study. In 1998, the world’s leading mining and metals companies got together to launch the Global Mining Initiative (GMI) in partnership with the World Business Council for Sustainable Development (WBCSD), International Institute for Environment and Development (IIED) and the Mining Minerals and Sustainable Development (MMSD)

2000-2002 Mining and Minerals Sustainable Development Research project

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The 10 ICMM Principles

2002 Toronto Declaration

2012 MMSD+10 report issued

2007 FBDS (Brazil Foundation for Sustainable Development) study

initiative. The objective of the initiative was to chart the mining industry’s role and contribution as the world transitioned to a model of sustainable development. The MMSD delivered a lasting impact on the global mining industry when it released its report titled Breaking New Ground. For one, its vigorous process that consisted of global consultations, studies and analysis ensured that its recommendations were strong and grounded in reality. Secondly, the mining sector leaders threw their might behind the initiative, committing to adopt the new agenda to strengthen the industry’s role in sustainable development. The GMI concluded with the now famous Toronto Declaration of 2002 by the newly formed International Council on Mining and Metals (ICMM), “driven by a shared desire to enhance the contribution that mining and

metals can make to social and economic development.” The declaration really broke new ground by stating that participants had discovered many shared values including the realizations: • successful mining and metals processing operations require the support of the communities in which they operate; • respect for these communities and a serious engagement with them is required to ensure that mining and metals processing are seen as beneficial for the community and the company; • successful companies will respect fundamental human rights, including workplace rights, and the need for a healthy and safe workplace; and • successful companies will accept environmental stewardship responsibilities for their facility locations.

Sustainable future Since its formation in 2001, ICMM has become the face of sustainability in the global mining industry. Just a year after the Toronto Declaration, ICMM followed up by adopting the well-known 10 guiding principles as the first element of its Sustainable Development Framework for the industry. There has been no looking back since then. ICMM has kept up the pressure and momentum to enable the industry to embrace sustainability. It has done so by providing guidance on diverse industry issues through programs, publications, surveys and by adopting new initiatives. According to ICMM, the 10 guiding principles based on the key issues in the mining industry, are today benchmarked with the standards proposed by a host of international bodies such as the Global Reporting Initiative, the Global

Compact, OECD Guidelines on Multinational Enterprises, World Bank Operational Guidelines, OECD Convention on Combating Bribery, ILO Conventions 98, 169, 176, and the Voluntary Principles on Security and Human Rights. In 2012, IIED undertook a review of achievements over the first decade of the MMSD initiative. The report – titled “MMSD+10: Reflecting on a decade of mining and sustainable development” – found that the industry had made remarkable progress in embracing sustainability. “The past 10 years have seen a valuable increase in the number of standards and best practice guidance, helping stakeholders to understand what sustainable development means. But despite good intentions at the strategy level and examples of good practice, the complexity of situations at the mine site means implementation across

the sector is highly variable. “Questions remain as to whether current verification and reporting regimes are sufficient to meet the needs of key stakeholders – from investors to communities. In a large number of cases, there is little idea of how exactly these should be translated into progress on the ground,” says the 2012 report. Issues and problems may remain, but one thing is clear: the global mining industry of 2015 is a much more enlightened business than the conglomerate depicted in ‘Avatar’. The ever-stronger industry drive for sustainability is likely to ensure that mining can shed its historical baggage as long as the industry and stakeholders work together to ensure that non-compliant companies, if any, are always thwarted in their unsustainable and socially and environmentally damaging designs and isolated from the mainstream.

1. Implement and maintain ethical business practices and sound systems of corporate governance. 2. Integrate sustainable development considerations within the corporate decision-making process. 3. Uphold fundamental human rights and respect cultures, customs and values in dealings with employees and others who are affected by our activities. 4. Implement risk management strategies based on valid data and sound science. 5. Seek continual improvement of our health and safety performance. 6. Seek continual improvement of our environmental performance. 7. Contribute to conservation of biodiversity and integrated approaches to land use planning. 8. Facilitate and encourage responsible product design, use, re-use, recycling and disposal of our products. 9. Contribute to the social, economic and institutional development of the communities in which we operate. 10. Implement effective and transparent engagement, communication and independently verified reporting arrangements with our stakeholders. www.icmm.com

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Local and International Sustainability News 15 United Nations Development Programme

Issue one | September 2015

14 P L A N N I N G F O R I M P R O V E D E N E R G Y ACC E S S A N D P R O D U C T I V E U S E S O F E N E R G Y

ENERGYPLUS Guidelines

UNDP Releases New EnergyPlus Guidelines

Kopernik’s Wonder Women Speeding Up Nature’s Oil in Eastern Indonesia Spill Cleaners

Water Conservation in Saudi Arabia

The United Nations Development Programme (UNDP) released a new report entitled The EnergyPlus Guidelines in conjunction with start of the Second SE4ALL Forum. In a session organized by the UNDP about energy for productive uses, the new EnergyPlus Guidelines were explained. Based on the UNDP’s wide experience in the field of sustainable energy access, the guidelines serve as a toolkit for planning, designing, implementing, monitoring and evaluating energy access programs that promote the productive uses of energy for livelihood improvements. Expanding access to affordable, reliable, modern and sustainable energy will enhance agricultural productivity, spur business activities and create new job opportunities. It is also critical for the provision of essential services, such as health, education, water, sanitation and safety. These in turn contribute to strengthening resilience towards economically and environmentally induced shocks and disasters, including those exacerbated by climate change. The overarching goal of the EnergyPlus Guidelines is to empower the poor, both men and women, and contribute to overall sustainable human development and poverty reduction. To download the report visit: www.eurasia. undp.org/content/rbec/en/home/library/ environment_energy/energyplus-guidelines. html

In a project set up by the non-profit organization Kopernik, more than 500 women in eastern Indonesia are getting the chance to become social entrepreneurs by distributing clean energy products to far-flung rural households. Supported by the Netherlandsbased NGO ENERGIA with funding from the Finnish, Norwegian, Swedish and Australian governments, Kopernik makes clean energy technology such as solar lamps or clean cook stoves available to some of the world’s poorest communities, while at the same time empowering women by creating business opportunities.

Saudi Arabia is the largest producer of desalinated water in the world, responsible for 18 percent of the total global supply. However, desalination alone will not satisfy the country’s future demands. Therefore, the Kingdom has taken a number of measures to reduce water consumption by increasing efficiency, eliminating waste, and ending unsustainable practices. The government started by ending subsidies to water-intensive crops by 2016, but loss due to leakage is also a major problem for the Kingdom. It is estimated that Saudi Arabia loses between 20 and 30 percent of its water (approximately one million cubic meters per day) before it reaches customers, one of the highest rates in the world. In 2007, the Kingdom launched a program to address leakage and reduce the loss to just five percent. In 2012 the National Water Company (NWC) saved more than 97 million cubic meters in Riyadh, Jeddah, Makkah, and Taif by repairing pipelines. In addition, the NWC is actively campaigning about water conservation and encouraging parents to teach their children about conserving water. You can find a number of tips on NWC’s official website www.nwc.com. sa to reduce your daily water use.

Human methods to deal with oil spills typically involve the use of chemical substances, but the sea has its own self-cleaning abilities. Bacteria naturally appear in the sea wherever there is an oil leak and eat most of the pollution. But once crude oil is spilled in a pristine marine environment, it takes at least one week before such biodegradation processes begin to take effect. Kill-Spill, a EU funded project due to be completed in 2016, is trying to accelerate the natural degradation processes of these microorganisms, turning them into super microorganisms with the capacity to wipe out oil spills at a faster pace. “Our main objective is to come up with new technologies to enhance natural biodegradation carried out by sea microbes by offering microbes everything necessary to eat up all the oil faster,” says project coordinator Nicolas Kalogerakis, professor of biochemical engineering at the Technical University of Crete, in Greece. Normally, and depending on the type of crude oil, natural bioremediation takes about 12 months for light crudes. Kill-spill aims to reduce that by at least half. Until now the project has yet to be tested in real situations, but it is expected to be fieldtested in open sea oil spills from the Eastern Mediterranean to Disko Bay in Greenland soon.

Innovative Components Pave Way for Cheaper Wind Energy The wind power industry is arguably the most mature -- and fastest developing -among renewable energies. But, there is still considerable room for improvement. Although distribution and management are key to the spread of this renewable energy, so is reducing cost. Gamesa, a wind turbine company that leads the European research consortium Windtrust, is working on a project to reduce the cost of windfarms. “We are focusing on further enhancing the design of three key components with high improvement potential: the rotor blades, the power electronics and the wind turbine controller,” says Mauro Villanueva, the project coordinator and director of technology development at Gamesa. Reducing energy costs is not necessarily about making each individual component cheaper. “Although the cost of the enhanced parts will probably be higher, reduced cost of repairs and less downtime will render an increase in the amount of energy produced,” Villanueva notes. “This increase is expected to exceed such costs, thereby leading to an overall reduction of the cost of energy,” he adds. This could also matter for the consumer. “It is important that people understand that all the money invested in research and development is focused towards the reduction of the cost of wind energy, which will hopefully reach the final consumer,” Villanueva notes.

MENA Water Forum 2015 The Annual Middle East and North Africa (MENA) water forum 2015 organized by the Middle East Economic Digest (MEED) was held on 8 -10 June at the Sofitel Corniche in Abu Dhabi, UAE. MENA Water is an initiative that brings the region’s (GCC, Egypt and Jordan) water authorities and engineering consultants together to share exclusive updates on some of the most exciting opportunities and initiatives in the sustainable development of the water sector. This year the Forum’s programs included opportunities to network with specialists in expanded R&D sessions. The event also unveiled the latest water projects in the region for 2015 and beyond including the SWCC’s new desalination projects in Jeddah and Qatar’s Inner Doha Re-sewage Implementation Strategy (Idris).

Ras Al Khair Phosphate Processing Plant

Issue one | September 2015

From Hazm Al Jalamid to Indian Plantations Al Jalamid Mine near Arar A Farm in Haryana, India

Near the northern border of Saudi Arabia, in the highest and coldest part of the country, is the small but lively village of Hazm Al Jalamid. The 50 families who live there take great pride in their centuries old town and its traditions.

Train carrying phoshphate to Ras Al Khair

In the northern Haryana state of India, where monsoon rains flood the land from July to September, is the little farming village of Mali Majra. The farmers there have a long history and traditions of their own.

Saudi Phosphate Fertilizers Contribute to Global Food Security Although these villages are 3,500km apart, and culturally very different, they are linked in a rather unexpected way. Mali Majra’s humid subtropic climate is perfect for growing sugarcane, wheat and rice, but its silty, loam soil could use a boost to increase crop yield and quality. Hazm Al Jalamid is an unlikely source for this boost since its arid, desert climate can’t support crops. But the desert region does contain large amounts of phosphate, a key ingredient in fertilizer.

good plant growth. Unfortunately, repeated harvesting can strip soils of their natural phosphates. Phosphate fertilizers can help replace the lost nutrients and enhance energy transfer between plant cells, which encourages early growth and speeds plant maturity. Diammonium phosphate (DAP) and monoammonium phosphate (MAP) are two of the most widely used phosphate fertilizers in the world, and Ma’aden produces both with raw materials taken from its Jalamid Mine just 26km from Hazm Al Jalamid.

What is Phosphate and How Do We Benefit From It?

From a Rock in the Quarry …

Phosphate occurs naturally in most soils and is one of the key nutrients required for

The journey Ma’aden phosphates take on their way to the farms in Mali Majri begins in

the Jalamid mine. The mine contains a huge amount of phosphate; about 308 million tons. The phosphate is excavated, then transported in a 150-car, 2,800-meter long train that travels 1,392km to the Ma’aden Phosphate Complex in Ras Al Khair Industrial City. At the Phosphate Complex in Ras Al Khair Industrial City, the rock starts its second journey. The 100 tons of phosphate is offloaded from the train for processing. Processing is performed in four stages: crushing the rocks, extracting the phosphate, treatment with sulfur and gas, and finally tinting with black dye. The last stage is connected with the culture of Indian farmers who have used black fertilizer for many years,

17 Issue one | September 2015

India is the largest phosphate fertilizer market in the world

Phosphate fertilizer

Saudi Arabia has 956 million tons of phosphate reserves

Tea field in Munnar, Kerala, India

Mundra Port on the west coast of India in just four days. The first Ma’aden phosphate shipment took place in September, 2011. HE Eng. Abdullah bin Saif Al-Saif, the Chairman of the Ma’aden of Board of Directors, attended a ceremony in India to mark the occasion of Ma’aden’s first foray into the promising Indian fertilizer market. Over the years, Ma’aden’s relationships with Indian companies have grown steadily but new venues for export have also opened up in Asia, Africa, and South America. Ras Al Khair port

and therefore prefer it to other colors of fertilizer. Ma’aden is happy to help them carry on the tradition.

To a Port on the Sea… After the phosphate has been treated, it begins its next journey; from Ras Al-Khair Port in Saudi Arabia to the Mundra Port in India. The phosphate fertilizers are transported directly from Ras Al-Khair Industrial City to cargo ships through large pipes. Once onboard the ships, the precious cargo of fertilizer makes its way to ports around the world where it will enrich thousands of farms. The cargo ship bound for India is loaded with 40,000 tons of DAP. It will travel the 1,207 nautical miles across the Arabian Gulf to the

Al Jalamid mine contains 32% of the Kingdom’s phosphate reserves.

From Port to Warehouses… At the port in Mundra the fertilizer is offloaded and packed into huge containers. Each of these containers is ready to be transported by railroad to various parts of India. Haryana is one of those areas. Train cars and trucks carry the DAP another 1,150km; a journey that can take up to 20 days. The journey does not stop when the containers arrive at their destinations via the trains and trucks. Instead, the huge containers are transported to government dealers’ or private merchants’ warehouses. Farmers can come to these warehouses and purchase the fertilizer directly. Because of government subsidies, the fertilizer is offered to farmers at the same price that the merchants and dealers receive.

In the Hands of the Farmer... In the final stage of the fertilizer’s long journey, the DAP reaches the famer, who then spreads it onto the fields where it is mixed with the soil during plowing. This process makes the

Issue one | September 2015

Why India?

Farmers around the world consume

which includes both DAP and MAP

produce and sell or trade the

approximately 14 million tons of

and covers about 60 percent of

rest locally. Only a very small

diammonium phosphate (DAP)

their domestic needs.

percentage is exported.

annually; a number that is growing

Since 55 percent of Indians work

But this does not mean that

every year. India, a major importer

in agriculture, India is a good

Ma’aden only exports to India. In

of all types of fertilizers (second

choice for exploring the impact of

2014, Ma’aden Phosphate exported

only to China), consumes about

Ma’aden’s phosphate fertilizers.

1.16 million tons of DAP worldwide.

one third of the world’s phosphate

Most Indian farmers consume

fertilizers (6 million tons a year),

about 70 percent of what they

21 Tea plantations in morning fog. Munnar, Kerala, India

An Indian farmer

soil ready for planting and usually happens 10 days before the seasonal rain at the end of June. This phosphate is key for Indian farmers. Plants that usually take 70 days to grow will mature more quickly, often by a week or more, and may therefore be ready for harvest after just 60 days. Yield also improves. Farms that typically bring in just four tons of rice each season have seen increases of hundreds of kilograms. The implications of these impressive results go far beyond larger quantities of better food. Families in Mali Majri that were once just subsistence farmers now have surplus crops which they can sell. Larger farms and plantations are also benefiting. They are able to plant large areas of land at

a low cost relative to the revenue they earn from the crops. All this extra food is necessary to help feed the 1.2 billion people living in India today.

What Was Old Becomes New Again Since agriculture has been man’s primary survival method throughout the ages, the relationship between good germination and fertilizers has been known for a long time. Industrial fertilizers first came into use in the 19th century but phosphate fertilizers are relatively new. The phosphate that comes from Ma’aden’s northern area is a new method that enriches diversity. It has beneficial effects for just about every crop commonly used in Indian cooking, from rice and wheat, to tea and spices.

Serving Millions of People It is amazing how these small pellets of phosphate fertilizer can make such a huge impact on the world. As populations continue to boom, and arable land is increasingly used for urban development, food security will become a global priority. In the future, solving food crises will depend more and more on cross-nation solutions like the one that unites the farming village of Mali Majri in India with the mining village of Hazm Jalamid in Saudi Arabia.

Issue one | September 2015

High Quality Sustainable Fertilizer A banana farm

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Phosphate Reserves in the Kingdom = 956 Million Tons

Phosphate fertilized wheat

30%

60% of the world’s phosphate fertilizers are used on seeds rather than established plants.

38%

Make Your Own Hanging Gardens Want to plant a garden but have limited space? You can use empty soda bottles, to create your own vertical hanging garden. Materials: - Empty 2 litre bottles (as many as you want) - Fishing line or clothesline rope - Scissors or a knife - Potting soil - Seeds or young plants - Fertilizer Directions: 1. Clean and dry the 2 litre bottles 2. Cut a hole in the top for the plants to grow out of. 3. Cut a few small drainage holes in the bottom 4. Make 4 holes for the string, 2 at the top of the bottle, and 2 at the bottom. 5. String all of the bottles together with at least

32%

•• •

Al Jalamid Umm Wa’al B6 Waad Al-Shamal Al Khabra

Indian Phosphate Consumption by Crop

a foot between each bottle. 6. Fill the bottles about half way with soil. 7. Add seeds and water. 8. Don’t forget to use fertilizer. 9. Watch them grow!

16%

25%

13% 15%

15% 16%

* Source: International Fertilizer Association

http://www.rosenbaum.com.br/blog/rosenbaum-responde-ldl-48-horta-vertical

•• •• ••

Wheat Rice Corn Fruits and Vegetables Oil seeds Other

Why Ma’aden’s phosphate fertilizers are easier to apply and more effective than other types of fertilizers: 1. Compact Molecular Structure: Without a compact molecular structure, pellets disintegrate too easily. This can lead to storage problems, erratic distribution, and can cause nutritious material to leech into the soil too quickly. 2. Fertilizer Content: Phosphate fertilizer can be mixed in different concentrations and with different components to make it the ideal fertilizer for each particular soil or crop. 3. Low Humidity: Phosphate fertilizer is easy to store in dry conditions that prevent humidity, which leads to agglomeration, or clots that harden and become impossible to spread effectively. 4. Even Molecular Distribution: Ma’aden takes great care in assuring that the volume of phosphate in each pellet of fertilizer is consistent to allow for easy dispersal. 5. Low Density and Volumetric Mass: The weight of each pellet of fertilizer affects the time needed for dispersal. Pellets that are less dense will move through the fertilizer dispersal machine less quickly, ensuring that fields are not over-fertilized and providing a more even fertilizer spread. 6. Speed of Solubility in the Soil: Diammonium phosphate is highly soluble in the soil, as compared to other fertilizers, making it a popular choice for Indian farmers.

Nature Provides the Key

Wastewater Treatment and Re-use at Ras Al Khair Sustainable development has come a long way since it first became a corporate buzzword in the early 1980s. Since then, our understanding has evolved from merely conservation and environmental protection to a recognition that sustainable solutions are mutually beneficial for industries, consumers, and communities.

Water is at the heart of all Ma’aden’s activities at Ras Al Khair Industrial City, which includes the largest integrated aluminum complex in the world, making it the perfect choice to pioneer a new system to help manage water scarcity there.

The Challenge: Water Scarcity Most industrial companies have used and re-used treated wastewater in their plants for years as a way to recycle water and save money. So, in 2010, when Ma’aden and Alcoa planned to establish the SAR10.8 billion

aluminum plant in Ras Al Khair Industrial City, they included a high cost system for managing water and wastewater that was an industry standard at the time. However, it soon became clear that the original system would neither be sufficient nor efficient. Operations at the largest integrated aluminium complex in the world needed large quantities of water: about 20,000m3 of fresh water for daily operations and enough potable water for 3,000 workers. Water is scarce in the desert region of Ras Al Khair, and its value and cost continue to

25 Issue one | September 2015

Issue one | September 2015

increase. Desalination of seawater requires extensive power, making it an expensive solution. The nearest water treatment plant is over 150km from the industrial city, which would require the installation of large pipelines, or the time-consuming transportation of water by truck. “The Kingdom’s water management challenge will require additional capital, new tools and mindsets, more cooperation among stakeholders and innovative technologies to better anticipate and effectively respond to one of our most pressing environmental

situations,” said Ma’aden Aluminium President Abdulaziz Al Harbi. Clearly, Ma’aden needed a different solution to its water consumption challenges; one that went beyond the standard treatment of water and wastewater management in the industry. The answer came from a surprising source; nature itself.

The Solution: Natural Engineering The Alcoa-designed Natural Engineered Wastewater Treatment (NEWT) system uses

natural engineering to treat wastewater for re-use, and its deployment in Ras Al Khair is the first use of the technology in Saudi Arabia. NEWT mimics the filtering and cleaning systems found in nature. The nine hectare system makes use of physical, chemical, and biological processes that occur naturally in wetlands to create a naturally engineered wastewater treatment system that is safer, more efficient, and more economical than traditional models. There are three steps to the NEWT

Naturally engineered wastewater is 100 percent recyclable, eliminates water drainage, and conserves water for use in other operations.

residue that needs treatment or removal. The new system is designed to treat 5,000m3 daily, which on average is made up of 1,000m3 of wastewater, 1,800m3 of smelting stage water and 2,200m3 of galvanization stage water. The refinery uses 94 percent of the treated water. The other six percent satisfies the landscape irrigation requirements of the Royal Commission for Jubail and Yanbu.

consumption is roughly half that of a traditional water treatment system. Water consumption dropped by 25 percent, decreasing the demand for desalinated water purchased from the Saudi Saline Water Conversion Company by 5,000m3 per day. Maâ&#x20AC;&#x2122;aden also saved on the cost of construction. A conventional tank-based system would have required an additional 1,000mt of steel for pipes and tank and taken

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Issue one | September 2015

The new system of natural engineering for wastewater treatment has had a great impact. Water consumption dropped by 25%, decreasing the demand for desalinated water purchased from the Saline Water Conversion Company by 500m3 per day.

approach to wastewater management: First: Water used in smelting and galvanization passes through an engineered system to remove solids and oils. Second: The wastewater is then pumped into wetlands, where plants further purify the water. Third: The water is filtered through bauxite remains for sterilization and purification. Fourth: The water is reused in the refinery. Each of these low energy steps are designed to remove organic and inorganic pollutants that could potentially cause environmental harm or illness. The NEWT system produces quality water without chemical additives that can be recycled for use in the refinery and other operations, or for irrigation. In the past, wastewater was simply drained into the surrounding environment. With natural engineering, there is no need for expensive drainage programs because there is no wastewater and only a very small amount of

Results Beyond Expectations The NEWT system has had an even greater impact than the technicians originally estimated. The 100 percent recyclability of treated water means that environmental impact is extremely low and the re-use of treated water decreases the demand for water overall, which, in turn, decreases power consumption and costs. Since the system uses a series of low energy steps for water treatment, power

Environment Benefits New habitat for

wildlife

Water consumption decreased by

25%

No need

Power consumption decreased by

for drainage

50%

Quality water produced

NEWT: Natural Engineering Wastewater Treatment

Step 1: Solids removal and

Step 2: Further purification by

Step 3: Sterilization and purification

anaerobic treatment

plants in engineered wetlands

through bauxite filters.

Step 4: Water reuse

Treated water is

chemical and residue free

Issue one | September 2015

6 month

shorter construction time

USD 5 million saved in construction costs

Economic Benefits USD

USD 7 million saved in water purchasing costs

million decrease in operating costs per year

benefits of natural engineering prove that what is good for the environment can also be good for the budget, and that truly sustainable solutions benefit everyone.

National and International Recognition

Step one of wastewater treatment at Ras Al-Khair

The NEWT system used at Ras Al Khair has already earned a major Alcoa global award, but Ma’aden hopes it can do more than generate praise. NEWT represents a paradigm shift in wastewater management strategy within the Kingdom and could be advanced by the Saudi environmental regulatory agencies as a Best Available Technology (BAT), which would

encourage other industries and businesses to adopt the strategy. The Ras Al Khair Industrial City is already a showcase for future projects within the Middle East, and the NEWT system is a big part of what makes the facilities so impressive. Ma’aden Aluminium President Abdulaziz Al Harbi said, “We are proud of our accomplishment, and look forward to achieving even more to support a healthier and more sustainable future for society and the planet.”

29 Issue one | September 2015

1,000mt

less in steel used for pipes and storage tanks

six months longer to complete than the NEWT system. NEWT has a big impact on the bottom line as well, saving Ma’aden about USD 5 million from the allocated cost for buildings and construction, and USD 7 million per year on clean water purchasing. The new system is estimated to continue to save about USD 1 million per year in operating costs. Perhaps the greatest benefit has been to the local wildlife. The artificial wetlands which are an integral part of the project are now home to migrating birds and other species who seek refuge in the green oasis. The combined economic and environmental

Water treatment facility

The Midas Touch: Turning Wastewater to Gold

Ma’aden Conserves Precious Water by Constructing the World’s Longest Pipeline for Treated Wastewater

In the world’s most arid place, an industry thirsts for water. Approximately 450km away, wastewater in the city of Taif sits idly in reservoirs at a water treatment plant… it’s a perfect match.

Ma’aden’s gold mines are located in the middle region of the Kingdom, an area with less than 1cm of rainfall a year and very limited underground water resources. Gold mining requires extensive use of water, much more than the desert environment of Saudi Arabia’s Central Arabian Gold Region can supply. Though this may seem like an insurmountable road block, Ma’aden has found a solution that will not only supply the mines with much

Construction of the pipeline

needed water, but also solve a second problem; what to do with the treated wastewater from Taif’s growing population. In September of 2011, Ma’aden approached the National Water Company with the idea of using Taif’s wastewater in place of expensive desalinated water for gold mine development and operations. Reusing the wastewater in the mines not only benefits Ma’aden, but will also help maintain strategic reserves of fresh groundwater and reduce the environmental impact of wastewater disposal. The National Water Company agreed to a 20 year deal, supplying Ma’aden with 13,000m3 of wastewater per day, which is enough to fill five Olympic sized swimming pools. The next step was finding a way to move the water from Taif -- nearly 500km inland -- to the gold mines. In January of 2012, Ma’aden signed an agreement with a local company, Metal Services Trading and Contracting, to build a 450km pipeline to carry the treated wastewater from Taif to Ad Duwayhi and four other mines at a cost of SR464 million. We believe the completed pipeline will hold the record for ‘longest treated wastewater pipeline in the world’. This innovative and environmentally sustain-

Issue one | September 2015

Reduce environmental pollution and noise

Cut costs

Increase production

Issue one | September 2015

Project Benefits

Use local contractors

Reduce road congestion

Benefit local communities and residents

Conserve water

the development of surrounding towns and villages to support the necessary workforce. This will result in a significant increase in job opportunities, both at Ma’aden and through contracts awarded to local service and supply companies. “The pipeline project also shows how investment in the Kingdom’s mining industry can deliver sustainable new infrastructure, jobs and technologies to remote regions and communities that need them most. We estimate that the new mines will create around 1,000 new direct jobs and 5,600 new indirect jobs, significantly raising the incomes of local families and creating new opportunities for education and training.”, said Al Mudaifer. Thanks to Ma’aden’s efforts to find sustainable and environmentally friendly solutions to complex challenges in the mining industry, water that would otherwise have been wasted will now bring new life to this desert area and those who call it home.

Create direct and indirect jobs

Reusing wastewater conserves groundwater and preserves the environment

Taif pipeline

Al Jalamid

Az Zabirah

Al Baitha

Al Ghazalah Riyadh Ma’aden head offices Al Sukhaybarat Jabal Sayid

Bulghah

Al Amar

Ad Duwayhi The Ad Duwayhi Gold Project is located approximately 125km south east of the town of Zalim, 450km east of Jeddah and 450km south west of Riyadh. The Prospect involves an open pit gold mine and milling operations to produce a metal product. It is surrounded with sand wash-covered area partially surrounded by a number of hills rising some 50m above the central basin floor between 950m and 970m above sea level. Ad Duwayhi commercial production will begin in 2015.

Mahd Ad Dhahab As Suq

The pipeline carries treated wastewater to be used in gold operations

Masarrah

Ar Rjum Mansourah

Al Taif

current mines Ad Duwayhi Al Hajar

Project phases finished in process future plan

future mines

33 Issue one | September 2015

able solution is the first instance of the large scale use of treated waste water for industrial purposes in the Kingdom. Khalid Al Mudaifer, President and CEO of Ma’aden, said, “The use of treated waste water is proof of Ma’aden’s commitment to minimizing impacts on the environment.” Not only is the pipeline a smart way to re-use water, it also means there will be fewer large water tankers on the highways, reducing congestion, pollution, noise and transportation costs. Using wastewater for gold production also offers other economic advantages. The pipeline will make it possible for Ad Duwaihy mine to begin operations this year. At full capacity Ad Duwayhi mine is expected to produce 180,000 ounces of gold, or about one third of Ma’aden’s total gold production. The pipeline will also reach As Suq mine, and will make three other prospective mine sites possible for future development: Ar Rjum, Mansourah, and Masarrah. Opening each of these mines will require

Partners of success

MA’ADEN social partnership programs convince Turaif women to start businesses

MA’ADEN has developed social partnership programs to support sustained growth for communities in the vicinity of its projects located in remote areas. These initiatives succeeded in attracting several citizens to benefit from MA’ADEN programs that give priority to local Saudi providers and help them establish their own private businesses and achieve success. These citizens have great stories to tell and helped improve their own welfare, environment, economy and community. NAMA’A newsletter recorded several such stories in the Northern Borders area, namely the Turaif governorate, reflecting the deep relationship between local communities and MA’ADEN. These projects represent great examples of how ambition can breed success.

“I heard a lot about the project in the city of Wa’ad Al-Shamal, and I wanted to play my part in building it.” Om Abdulaziz Al-Rewaily

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Issue one | September 2015

The development of Wa’ad Al Shamal offers many business opportunities

The city of Turaif

Successful ambition Om Abdulaziz Al-Rewaily was one woman who took a chance and established a small company for renting out trucks in Turaif. She went into a difficult and rough field of business, took great financial risks and eventually achieved success. As with all small governorates, the local social environment does not encourage women to work outside their homes. Nevertheless, Om Abdulaziz broke through the social barrier and entered the business world, worked hard for four years and reaped the rewards of her hard efforts. Om Abdulaziz Al-Rewaily was a forward thinking woman. When MA’ADEN opened a plant in the city of Wa’ad Al-Shamal (translated as Promise of the North) for its mining industries near Turaif, she knew there was a good

opportunity for work. She said: “I’m proud of my role in realizing the gift of the King to the citizens of the north. I heard a lot about the project in the city of Wa’ad Al-Shamal, and I wanted to play my part in building it.” This ambition remained for a long time in Om Abdulaziz’s mind. Despite the difficulties that face any new Saudi businesswoman, she decided to grab the opportunity presented to her. She said: “Thanks to God and my husband who encouraged me, I decided to enter the business world.” Indeed, with the help and support of her husband, she purchased two heavy trucks and rented them out to MA’ADEN for use in its operations. It is worth mentioning that this investment yielded a quick return. After only four years, the project made about SAR 1 million.

These citizens have great stories to tell and helped improve their own welfare, environment, economy and community.

Sculpture welcoming visitors to Turaif

A business started from the trunk of a car

“By nature, Man is afraid of the unknown. But without adventure, you will never know success.” “J” A successful self-made young woman The heroine of our second success story is a young woman who has chosen to identify herself by the initial “J”. She was born in Turaif in 1988 to a poor carpenter. The family home only had two rooms. Her father was a self-made man who did not have much education, but he taught himself and was able to send his only daughter to government schools. Two years ago, she sold her father’s workshop and borrowed some extra money. The main incentive behind this was her desire to open her own commercial project, a small grocers shop at the side of the road near Wa’ad Al-Shamal. At the start of this small project, she hired a young local Saudi man. The shop sold basic necessities, drinks and fast food to Wa’ad Al-Shamal’s visitors such as contractors, hired hands and those visiting Turaif. After 18 months, “J” said her small investment proved sustainable and successful. This success reflected on her family’s standard of living as it led to an increased income and better conditions. The returns from the investment helped pay back the loan quickly and yielded more than SAR 15,000 a month during peak business periods. “J” started another investment to expand her business: a supermarket with four employees located on the premises of a gas station near Wa’ad Al-Shamal. She said she was “very optimistic” about the project. Her investment had three objectives. First, to support her family. Second, to offer new job opportunities to her fellow Saudi citizens in her community. The third was to provide for the needs of Turaif visitors and those working on the huge Wa’ad Al-Shamal project. She added: “By nature, Man is afraid of the unknown. But without adventure, you will never know success. A good idea, with good planning and excellent execution, will yield its fruits in a short time.”

New in the world of sustainability

37 Issue one | September 2015

Issue one | September 2015

The heroine of the third success story is another young woman, who chose to refer to herself by the initial “M”. This young woman was born in Turaif in 1985 and her father died before she was 8. She is the sister to three older brothers and had to leave school when she was 15 to help her mother, who was suffering from a chronic disease. “M” dreamed of finishing her undergraduate studies, but universities were far from Turaif and she was poor so she could not. When the Cabinet of Ministers announced the establishment of the Wa’ad Al-Shamal project for mining industries, “M” wondered how she could benefit from the scheme and establish a successful business without capital. It was a question that kept her sleepless for days and months. Then a brilliant idea crossed her mind. She would use the trunk of a small truck owned by her elder brother. It was a vehicle that had been in a state of disrepair for eight months and was just sitting there parked in front of their house; a useless piece of junk with birds nesting on its hood. She shared her idea with the brother: they would get a loan to fix the truck and then rent it out to contractors and companies supporting MA’ADEN by providing construction materials for establishing the mining industries city or purchasing necessary materials from nearby villages and governorates. And, they went ahead and did it. “M” and her brother have been running this business for one year and three months and it is still going strong. The venture yielded such a large profit for them that her brother was able to get married.

Game On

A new app called GreenPocket challenges users to track their energy usage and compete with friends and family for the lowest consumption. For more info: www.greenpocket.de

Light it Up

You can use an empty bottle, water, and a few capfuls of bleach to make your own sunpowered lightbulb. No electicity is required for this 55-watt bulb. For more info: http://www.instructables.com/ id/How-to-build-a-SOLARBOTTLE-BULB/

Low Flow

Installing a low flow aerator to your sink or shower can reduce water consumption by up to 50% without sacrificing water pressure. These inexpensive devices are easy to install and you may even already have them. To find out, put a 2 qt. saucepan directly underneath your shower stream and count how long it takes to fill up. If it fills in less than 12 seconds, you could benefit from an aerator.