Michael BenderMercury Policy Project/Zero Mercury Working

GroupMontevideo, Uruguay

22-23 April 2009

USA Mercury Supply and Trade Context Policy Deliberations Highlights of New Export Ban Law Estimated Cost of Above Ground Mercury

Storage

USA Government Stockpile Sales of Hg halted since mid 1990s even

though no longer needed To be discussed in detail by Dennis Lynch

Civilian Sources Byproduct generation from industrial gold

mining (currently about 100-125 MT annually) Recycling of wastes and products (currently

about 80-100 MT annually) Decommissioning of mercury chlor-alkali

plants Imports of calomel and mercury

2003 2004 2005 2006 2007 2008

Imports 46 92 212 94 67 150

Exports 287 278 319 390 84 900

Net Exports

241 186 107 296 17 750

Increased attention to mercury emissions from industrial gold mining

Increasing mandates to recycle mercury products

Significant reduction in number of mercury cell chlor-alkali plants (but after 2009, only 4 plants left)

Decreased demand due to phase-out of mercury use in product manufacturing

2005 Top 5 Countries Netherlands, Guyana, Mexico, India, and Spain

2006 Top 5 Countries Netherlands, India, Viet Nam, Spain,

Singapore 2007 Top 5 Destination Countries

Viet Nam, Peru, Colombia, Singapore, Guyana

Trends leading to mercury exports expected to continue

EPA estimates 7,500-10,000 MT of mercury from civilian sources will require storage over next 40 years

Estimate is based on expert opinion, since EPA does not require reporting of mercury supply, use, or trade

Federal government creates interagency task force to obtain information and review policy options Expert stakeholder panel formed and meets

four times from May-September 2007 to provide input

No recommendation formally emerged; process overtaken by action in Congress

Congress enacts the Mercury Export Ban Act of 2008 with support of NGOs and state governments

Federal government mercury stockpile can never be sold or placed into commerce, effective immediately

Beginning January 1, 2013, the export of elemental mercury is prohibited

EPA must submit a Report to Congress within one year on mercury compounds and whether export ban should be extended to cover them

Limited exemption from export ban available Requires submission of petition to EPA and

opportunity for public comment on the petition Must prove receiving country wants the mercury

and has no other supply available Must prove mercury will be used and managed

in a manner protective of local and global public health

Must prove export of mercury is consistent with international obligations

Each petition limited to three years and 10 MT

Federal government must establish a site that can be used for long-term management of mercury from civilian sources

Government authorized to charge a fee for this service

Private company may also develop a site Any facility must be licensed under

hazardous waste law

US EPA TOTAL 40-YEAR STORAGE COST ESTIMATES FOR A GOVERNMENT FACILITY OPERATOR

(2006 DOLLARS)

7,500 METRIC TONS 10,000 METRIC TONS

Total Project Costs (undiscounted) $78.9 - $99.8 million $98.3 - $126.0 million

Net Present Value of Total Costs $25.6 - $30.0 million $30.6 - $36.4 million

Annualized Costs $1.9 - $2.2 million $2.3 - $2.7 million

Annualized Costs per pound $0.116 - $0.136 $0.104 - $0.124

US EPA SUMMARY OF ESTIMATES OF TOTAL STORAGE COSTSPRIVATE FACILITY

FOR 40 YEARS (2006 DOLLARS)

TOTAL COST ESTIMATES RENT SCENARIO BUILD SCENARIO 7,500-Metric Ton Scenario

Total Project Costs (undis.) $59.5 - $144.2 mil $50.0 - $137.7 milNPV of Total Project Costs $18.5 - $39.9 mil $17.8 - $41.0 mil Annualized Costs $1.4 - $3.0 mil $1.3 - $3.1 milAnnualized Costs per pound $0.084 - $0.181 $0.081 - $0.186

10,000-Metric Ton Scenario

Total Project Costs (undis.) $69.8 - $183.9 mil $57.3 - $174.9 mil NPV of Total Project Costs $21.3 - $50.9 mil $20.0 - $51.9 mil Annualized Costs $1.6 - $3.8 mil $1.5 - $3.9 mil Annualized Costs per pound $0.072 - $0.173 $0.068 - $0.177

Assume Perpetual Storage 6.2% - 7.5% + 4.8% - 6.6% +