On the planet, global and local signals have emerged based on environmental and social aspects, reflecting the effects of climate change and the commitments made by companies in the mining sector, given their capacity to positively influence these issues. Likewise, both regulators and risk assessors have moved towards greater transparency in the disclosure of Environmental, Social, and Governance (ESG) management, which has placed sustainability at the center of business decisions, along with a strong ability to set ambitious sustainable development goals and strategically plan and invest to achieve them.
In this way, mining clients, as well as companies from various sectors, require in their purchases and tenders the integration of management aspects that address areas such as:
- Efficient management of renewable energies, carbon emissions, water, and waste.
- Health and safety in operations, as well as in suppliers and contractors.
- Greater participation of women, in addition to other aspects of diversity, equity, and inclusion.
- Local development, based on avoiding impacts or at least mitigating them, understanding the communities that eventually receive them, while companies maintain timely engagement within their areas of influence.
- Deep knowledge and coordinated management of the supply chain.
- Strong, transparent, and diverse corporate governance.
The coordinated approach to these aspects, among others, has driven the consolidation of ME Elecmetal’s Sustainability Strategy globally, and in its first implementation cycle, it is already showing improvements in the value offered to clients, fulfilling the purpose of being a Partner for Sustainable Mining.
In sustainable development, clients have initiated their own strategies and policies, as well as the specific instruments necessary to address climate change, biodiversity protection, energy transition, and the circular economy, including social and corporate aspects precisely. Furthermore, they have committed to concrete goals for achieving these issues in the coming decades.
Data shows that the greatest complexities lie within the supply chain, and it is precisely in this space where supplier companies — such as ME Elecmetal — add value and partner with the client to meet their objectives and targets, developing sustainability based on current, transparent, and evidence-based parameters.
It is common practice that, through contracts integrating ESG aspects in supplier management, clients evaluate the companies that provide them goods and services, resulting in precise metrics that allow them to report on their performance and committed goals, thus helping to quantify positive progress in the most critical aspects of their management.
Since the beginnings of ME Elecmetal in 1917, sustainability has been key through the constant circularity of metallic raw materials, innovation, and collaboration among parties, basically in two phases, marking 2001 as the pivotal year:
- Foundation and Development (1917-2001): milestones include the founding of Compañía Electrometalúrgica in Chile, as Elecmetal in 1917. In the United States, Minneapolis Electric Steel was established in 1912, reopened in 1917 after a fire in its finishing areas, and later expanded with the acquisition of Capitol Castings in Tempe. In 2001, the year when Minneapolis Electric Steel was acquired by Elecmetal, the global company we now know as ME Elecmetal was born.
- Expansion and Diversification (2001-Present): highlights include the purchase of foundries in Duluth (Minnesota) and Tempe (Arizona), becoming ME Elecmetal. Then, entry into China through a 50/50 Joint Venture with Long Teng Steel, creating ME Long Teng or simply MELT, while establishing a new grinding ball plant in Changshu, China. Followed by the modernization and expansion of the Rancagua Foundry Plant between 2009 and 2012; and the installation of a new Foundry Plant in Changzhou, China, wholly owned by ME Elecmetal in 2014, accompanied two years later by the opening of a new MELT Grinding Balls Plant in Zambia (2016-18). Finally, in early 2024, the acquisition of the Funvesa foundry in Peru took place, along with the launch of the Global Sustainability Committee, establishing the worldwide implementation of ME Elecmetal’s Global Sustainability Strategy.
It is in the context of this expansion and diversification that sustainability topics have been strongly promoted, under the corporate purpose of being a Partner for Sustainable Mining.
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The Global Sustainability Committee (GSC) was created to coordinate and support the realization of ME Elecmetal’s Sustainability Strategy according to its four Pillars: ME Elecmetal Signature, Our People, Environment, and Value Creation Connections. All of this aligned with strategic business objectives at the central, regional, and local management levels.
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ME Elecmetal’s strategic corporate pillars: Global Competitiveness, Pursuit of Excellence, Integral Solutions, and Sustainability are fully aligned with the objectives of the Integrated Management System, because:
Improves operational efficiency:
reducing duplication of efforts and resources, and facilitating coordination and consistency across all organizational processes.
Ensures regulatory compliance:
facilitating adherence to various regulations and standards, avoiding penalties and improving operations.
Culture of continuous improvement:
promoting it at all levels of the organization, quickly and effectively identifying and addressing potential barriers.
Greater customer satisfaction:
also consistency and quality in the delivery of products and services, a decisive factor for generating new contracts and clients.
Better decision-making:
providing more accurate and consistent data and information, enhancing management’s ability to make informed decisions.
Sustainability based on responsibility:
facilitating the implementation of sustainable and responsible practices, contributing to environmental conservation and community well-being, consistent with the company’s reputation.
“We started the Global Manufacturing Team meetings about 5 years ago and since then we have built many bridges, shared a lot of knowledge; and now we can take the step towards more measurable data and thus fully join ME Elecmetal’s Sustainability Strategy, globally, regionally, and locally,”
2024-2025 Sustainability Reporting Plan
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