Actions and resources (E5-2)
Our circular approach guide our key actions that spans throughout the whole life-cycle of our products. Efforts to enhance resource use and circularity are embedded within Epiroc’s core operations and ongoing development work. Investments in resource efficiency and circularity are integrated into standard business processes and reflected in operational costs and investments, rather than being treated as standalone initiatives. Examples of such activities are circular design principles, lifecycle extension program, and circular business models.
Epiroc provides several circular solutions, with opportunities to expand further. Today’s circular offerings include, for example, Battery as a Service, scheduled maintenance and upgrades, and second-life upgrades of products and spare parts.
Circular design
Our lifecycle approach begins early in the design phase. Eco-design is integrated in our design review process when developing new products. We focus on making our products longer lasting and more energy efficient. This involves designing our machines to be lighter, more durable, and easy to disassemble, facilitating service and upgrades. We prioritize modularity to standardize models and minimize the number of articles.
We are also committed to increasing durability within our consumable assortment. The longer bit life means that fewer bits are required to drill a given number of meters, which in turn means that less raw material and energy is required. This also means less transport and less waste, leading to a smaller environmental footprint. As an example, our drill bits are available with both diamond coated buttons, PCD (polycrystalline diamond), and conventional cemented carbide buttons possible to resharpen. The PCD bits last longer than conventional bits, enabling customers to drill longer without interruption, increasing productivity, efficiency as well as safety for the operator. We are continuously working to increase the life length also for the conventional bits.
Many of our customer contracts are based on meters drilled, which means the longer our products last, the more value they provide to both our customers and us. This gives us a strong incentive to develop durable, long-lasting products. By focusing on longevity, we ensure that our equipment remains efficient and reliable over extended periods. Our portfolio offers several integrated planning and management solutions for intelligent operations – from mine to mill. By understanding the ore body, mining companies can plan and execute the whole mining process more efficiently. Utilizing the knowledge gained during exploration allows customers to drill in a more efficient way, thereby blasting and transporting less waste rock. This leads to higher productivity, lower cost and reduced emissions for the customer.
Materials
Our products consist to a very large extent of steel, which requires a considerable amount of raw material, water and energy to produce. To reduce the need for virgin materials, we actively collaborate with our suppliers to increase our use of recycled metals. Our production sites for rock drilling tools have come furthest thanks to working closely directly with smelters to continuously increase the rate of recycled material. On average, 85% of the steel used in these products is sourced from recycled materials. This enhances circularity and contributes to a lower climate footprint. Compared to virgin steel, recycled steel drastically reduces CO2e emissions, energy consumption and water usage.
Access to critical raw materials like cobalt and tungsten is essential for our cemented carbide buttons. To use these resources responsibly, we use recycled carbide powder from used products that comes from both internal carbide powder production excess and drill bits collected through our recycling program for selected customers. For many of our other products, we purchase more semifinished components rather than raw material so there are intermediaries between us and the smelters, which slow down the shift to recycled materials. That said, we are actively working to increase the use of recycled steel also in components.
We actively collect data to identify parts and materials containing substances of very high concern, such as lead and PFAS, as they can have a negative impact on circularity, see more in E2 SOC & SVHC.
Waste management
The main waste streams come from our production sites and consist of metal scrap, process water, oils and packaging material like wooden pallets. At our production sites, we minimize waste by managing resources carefully in accordance with local regulations and infrastructure. Waste management is part of our ISO 14001 certification and followed up quarterly. When waste is unavoidable, it is sorted into waste streams. Our approach is guided by the waste hierarchy, which prioritizes prevention and reuse over disposal, encouraging to remain materials in circulation. Applying these principles, we promote reuse and recycling as preferred options, reducing landfill and other non-recyclable waste streams. Whenever possible, valuable metals are reused within our own operations or sold back to the smelter. Parts and materials that cannot be reused within Epiroc are reported as waste and include activities such as recycling and incineration.
An achievement during the year was the successful reclassification of ferrous slag from landfill waste to resource by one of our entities. This shift not only reduces environmental impact but also enables materials previously destined for landfill to be reintegrated into the value chain as reusable materials. Other waste reduction activities include local engagement to find alternatives to repurpose the waste, such as turning corrugated cardboard from incoming goods to packing material or converting broken wooden pallets into wood chips.
Use of products
For many years, we have focused on product efficiency and lifetime extension through our service and maintenance offerings to ensure that products and materials remain valuable and are utilized for as long as possible. With well-performed maintenance and service, the availability and productivity of the machines increase, early replacements of parts are limited, and the lifetime of the equipment is prolonged. This not only benefits the environment by reducing the use of materials but also lowers our customers’ total cost of ownership. We offer a range of service agreements and products tailored to meet diverse customer needs. We work in a close relation with our customers for service and maintenance planning, ensuring high productivity, availability and performance of the tools and machines for as long as possible. Our circular machine and component offerings can be found on our circular solutions website which aims to promote and boost demand for our life extension and reuse solutions.
Business models like renting and leasing allow us to maintain ownership and control over the reuse of materials and parts in our products, extend product life and strengthen our aftermarket business. An example of a circular business model is our Batteries as a Service (BaaS). BaaS gives our customers all the benefits of electric power without the need for them to own the batteries. Through BaaS, we take full responsibility for the batteries, monitoring battery performance, and replacing batteries when necessary. This lowers the investment barrier for customers to invest in battery-electric vehicles, and it secures recurring revenue streams for Epiroc. At the end of life, batteries can be repurposed for other vehicles or energy storage, allowing customers to use more of their own installed renewable energy before the batteries are recycled.
The opportunities for improved use of resources are also facilitated by new technology and digitalization. Collecting and analyzing real-time machine status provides, for example, possibilities of improved planning and more efficient service, with pre-maintenance and prolonged machine and component lives. Our customer platform, My Epiroc, offers instant access to machine data, helping to identify service needs and ordering spare parts. Software-based automation functionality is another example of how technology can increase the uptime of machines. By integrating advanced automation solutions, Epiroc ensures that machines operate more efficiently and with fewer interruptions from unexpected breakdowns.
Prepare for second life
We offer customers the option to retrofit, repair and rebuild. Together, we minimize the use of new resources and reduce waste, resulting in lower economic and environmental costs. Our large portfolio of circular offerings includes remanufacturing of components such as axles, rock drills and cylinders. Through our offerings where customers can repair, return, remanufacture and service their products, we reuse as much as 80% of the steel and deliver reused components to the same quality as new. Our midlife services, a service solution that extends machine lifespan by repairing and replacing worn-out components and parts, can provide similar results. During a midlife service, machines can also be upgraded with the latest technology to increase productivity and safety. Machines can also be converted from diesel-powered to battery electric. This not only reuses steel but also lowers carbon emissions.
We offer tailored solutions to collect and recycle used products at drill sites from customers, including both steel and cemented carbide materials. The program has rendered a positive response from our customers. We cooperate with local and regional recyclers to ensure that the metals are effectively reused, reducing the need for international transports. This helps retain valuable resources in the ecosystem while significantly lowering carbon emissions associated with transport.