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Media Backgrounder

September 6, 2001

SULPHUR DIOXIDE EMISSION REDUCTIONS
INCO and Falconbridge ordered to reduce total emissions and ground level concentrations

The Ministry of the Environment has issued Notices of Intent to order International Nickel Company (INCO) Ltd. and Falconbridge Ltd. to reduce sulphur dioxide (SO2) concentrations at ground level, as well as total annual SO2 emissions from their Sudbury area smelters./p>

The following are the key requirements of the draft orders:/p>

• Both companies will have to control their smelters to meet a new limit for average hourly SO2 concentrations at ground level of 0.34 parts per million (ppm), reduced from 0.5 ppm, by April 1, 2002;
• Both companies will assume the operation and maintenance of MOE's Sudbury air monitoring network on January 1, 2003;
• While the companies are being ordered to assume the cost of running the monitoring network on the "polluter-pay" principle, the ministry will continue to audit the equipment and procedures to ensure that the data is sound;
• INCO and Falconbridge must have a public notification system for unfavourable air quality in place by September 30, 2001;
• Reductions in limits on annual SO2 emissions of approximately 34% must be achieved by December 31, 2006;
• The companies must provide annual progress report updates and trends regarding reductions of short-term peaks;
• There will be a six-year review period to evaluate each company's progress in reducing ground level concentrations and the higher concentration "peaks," which occur over a short time in a specific area; and,
• A final report is due by no later than December 31, 2010, including an implementation plan on reducing annual SO2 emissions by a minimum of 50% by 2015.

The draft orders would expire on December 31, 2012.

Previous Orders for INCO and Falconbridge

The first orders issued by the ministry for INCO and Falconbridge were in 1970 and 1969, respectively. These orders imposed restrictions on the allowable daily amount of SO2 that could be emitted by the companies.

In 1978, a new order was issued for INCO which reduced the allowable daily SO2 emissions and required the company to carry out a feasibility study on meeting an average hourly ground level concentration limit as opposed to daily emissions limits.

In 1983, both companies had earlier orders replaced with those that require the companies to meet a 0.5 ppm (parts per million) hour limit of ground level concentrations for the tall stacks and 0.25 ppm for INCO's nickel refinery stack. These orders will remain in effect until the new draft orders replace them.

In 1985, the companies were required to meet an annual emission maximum under a new Acid Rain Regulation. In 1994, the annual maximums under the Acid Rain Regulation were reduced significantly from 685 to 265 kilotonnnes for INCO and from 154 to 100 kilotonnes for Falconbridge.

About SO2 Emissions

Sulphur dioxide (SO2) is a colourless gas with a pungent, distinctive odour. Exposure to high concentrations of SO2 can cause breathing discomfort, respiratory illness and the aggravation of existing lung and heart disease. SO2 can also be chemically transformed into acidic pollutants and fine particles, both of which pose health risks. SO2 is a known contributor to smog and acid rain. Ontario Medical Association studies (June 2001) point out the health effects from smog, including premature deaths, hospital admissions and loss of productivity due to illness.

The Canada-Wide Acid Rain Strategy for Post-2000

The Canada-Wide Acid Rain Strategy for Post-2000 is an agreement with the long-term goal of reducing the emission of acid rain causing pollutants. Ontario was the first province to commit to reducing SO2 emissions, with its commitment to reduce emissions by 50% by 2015. Research indicates this will protect 95% of the province's lakes.

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