If We Do Not Lead in ESG Performance, Who Will?: Metso

Q: What strategic importance does North and Central America hold for Metso’s global strategy?
A: North and Central America play a pivotal role in Metso's global strategy, particularly from a volume perspective. This region is home to many of our customers, with operating mines and head offices located in Canada, the USA, and Mexico. Additionally, North America hosts many engineering partners who collaborate with our customers on projects worldwide. While these projects may not be in North America, they are often managed from here.

As the world transitions towards a more carbon-neutral footprint, the automobile industry drives electrification. This shift requires critical minerals, many of which are found in North and Central America. Given the region's concentration of automobile manufacturers, there is a strong interest in developing technologies and securing a robust supply chain within this area.

Metso offers sustainable technologies that support its customers’ energy transition plans. As a leading supplier of equipment and services and given how energy-intensive rock comminution and processing is, our approach to technology and innovation really matters. Central to our sustainability efforts is our Planet Positive offering. These products are more energy and/or water-efficient than benchmark technology. 

Another key piece of Metso's sustainability agenda is minimizing our environmental footprint by reducing impact in our operations, logistics, and procurement. The safety and well-being of our people is critical. 

The world is transitioning towards a more carbon-neutral footprint, with the automobile industry leading the charge towards electrification. This shift requires critical minerals, many of which are found in North and Central America. Given the region's concentration of automobile manufacturers, there is a strong interest in developing technologies and securing a robust supply chain within this area.

Q: What is the importance of the Mexican market for the company’s regional strategy? 
A: Mexico holds significant importance within Metso's North and Central American strategy for two main reasons. Firstly, Mexico boasts a crucial customer base, particularly in copper production. Copper is a vital element for enabling energy transition, not just in automobiles but across the entire energy landscape. 

Secondly, Mexico plays a pivotal role in supporting Metso's operations not only in North and Central America but also globally. The factories in Mexico are integral to Metso's overall supply chain strategy, helping to enhance supply chain robustness and bringing Metso closer to its customer base. 

Q: How challenging is it for Metso to promote the adoption of new technology products in the region? What are the primary concerns of customers when the company offers state-of-the-art technology? 
A: The mining industry is known for being conservative, and for good reason. It requires significant capital investment, and customers take on substantial risks when developing projects. Operational efficiency is paramount, and while customers are open to adopting new technologies, they must ensure that these innovations do not compromise their performance.

Customers are willing to adopt technology that helps them achieve efficiency targets and reduce costs. This requires optimizing operations through digital technologies, data analysis, and new tools. However, these advancements must be sustainable and must not increase risk.

Metso has a strong history of developing products, often in collaboration with customers, to meet their specific needs. Metso also acts as a catalyst, helping customers understand the benefits and risks of new technologies by sharing insights from others who have used similar technologies.

Metso's testing facilities and history of developing new technologies for the industry make it well-equipped to assist customers in adopting new technologies while minimizing risks. While the industry's cautious approach presents challenges, it is not impossible to overcome, and Metso is committed to supporting its customers in this endeavor.

Q: What innovative products did Metso show at PDAC 2024?
A: PDAC is always a fantastic event. Customers bring so much energy around the great projects they have ongoing. Our customers are happy to share the evolution of their projects, and many investors are also present, leading to positive discussions about the industry's direction.

Battery recycling, especially the processing of black mass, is an important topic that will become increasingly prevalent. There are global concerns about electric vehicle batteries ending up in landfills, but our customers, along with us, are developing technologies and facilities to recycle them. We took the opportunity at PDAC to demonstrate our technology for recycling batteries and processing recycled chemicals.

 Overall, our offerings were well received by our customer base. They are all looking for ways to develop projects with the lowest possible environmental footprint and the best possible ESG standards. 

Metso's processes and technologies in the refining space, whether in critical minerals or battery recycling, are among the most environmentally friendly technologies available. Customers have told us that our processes and technologies in this space are world-class and at the forefront of technology.

Q: What kind of infrastructure or expertise supports Metso's aftermarket offering that goes beyond its own equipment?
A: I have a long history with Metso's aftermarket business, spanning almost 30 years, which is a part of the business that is very dear to me.

Metso primarily has two objectives in supporting our customers. First, we provide them with the technology they need to develop and optimize their processes. Second, we support them in extracting the maximum value from that equipment and the process flows. This can only be achieved through high operational efficiency and maintenance standards. To ensure this, they need a strong partner who can provide skills, technology, parts, upgrades, and training to prevent downtime and continuously improve.

Metso has approximately 17,000 employees, with a significant focus on supporting our customers' operating sites through our aftermarket business.

Q: In a world with increasingly strict environmental regulations, how does Metso assist clients in complying with them? How is Metso’s approach applied in Mexico? 
A: From an ESG perspective, Mexican customers face similar challenges to those around the world. They are all looking to improve their carbon footprint. However, Mexico has an additional challenge related to water consumption, as many mines in the country face water scarcity. Therefore, for Mexican companies, it is key to improve their water efficiency.

To address these challenges, Metso focuses on continuously driving its sustainability agenda. Central to these efforts is our Planet Positive offering – products and services that are significantly more energy- or water-efficient than an industry benchmark or a previous-generation product in the market. Our Planet Positive portfolio already includes over 100 products, and we aim to keep expanding and improving this offering to have a Planet Positive product for every part of our customers’ value chain. To achieve this, all our R&D projects must have sustainability benefits. 

Q: What initiatives or product introductions is Metso launching this year? 
A: This year we will continue to expand our Planet Positive portfolio with sustainable technologies and services. The portfolio grew significantly in the past couple of years, with 30 launches in 2022 and an additional 10 in 2023, including new technologies that extend our existing solutions for new customer segments often with a significant digital element. 
 
Recently relaunched in the portfolio is our proprietary lithium hydroxide refining process. It offers a short-cut process concept for spodumene concentrates, a direct alkaline leach process for lithium extraction and solubilization, followed by crystallization of the lithium product. What's great about the technology is that the leaching process is environmentally sustainable - acid and sulfate-free, without undesired crystallized salts or by-products, producing inert and neutral mineral residue for re-use or disposal. There's no need to treat any effluents or build tailing facilities.

Metso focuses on sustainable technologies, end-to-end solutions, and services for the aggregates, mineral processing, and metal refining industries. Metso aims to improve its customers’ energy and water efficiency, increasing their productivity and reducing environmental risks.