Post on 03-Jan-2016
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% +