2023 Letter from the CEO
29 Jul 2024
Letter from the President and CEO
Thank you for taking the time to view our 15th annual Sustainability Report. Your interest demonstrates we care about many of the same things – balancing our social, economic and environmental responsibilities not only for today but also for generations to come.
If you are familiar with Doe Run, then you know we are a mining and metals company that produces a variety of mineral concentrates, and recycles lead metal and alloys primarily from spent lead batteries. Our products support the domestic lead battery industry, as well as international metal production.
2023 was a pivotal year for Doe Run. We continued to face challenges related to supply chain delays and equipment shortages that impacted our production. We also faced significant external challenges, such as accelerated inflation driving up costs of materials we use in our business and depressed commodity pricing that negatively affected our product margins.
Despite these challenges, our employees pulled together and, with their hard work, perseverance and ingenuity, we leveraged many opportunities to help us support the energy storage revolution already on our doorstep.
Positioning Doe Run for the Future
In the past couple of years, there has been a growing recognition in Washington, D.C., that, as a nation, we cannot depend on foreign sources to provide the minerals and metals we need to support our economy. While we continue to strive to align our interests with the government, we still see an anti-mining sentiment in some areas and an expansion of federal regulations that impact our industry. However, there have been some positive developments, including several funding opportunities, introduced by the federal government, supporting the battery industry and the upstream sectors of material processing and mining. In 2023, Doe Run submitted two white papers requesting government funding assistance for mineral-related projects under the Defense Production Act (DPA). Title III of the DPA provides unique economic authorities to mitigate industrial base risks and expand U.S. production capabilities to promote national defense.1
Based on these submittals, in late summer, at the request of the U.S. Department of Defense, Doe Run submitted a formal application for governmental funds to help build a hydrometallurgical demonstration plant utilizing our proprietary technologies to recover cobalt and nickel from our mineral concentrates. We are pleased that our submission was approved, and a final agreement was executed in early 2024. Read more about our plans to support domestic critical mineral production here.
Missouri Mining and Recycling Supports the Battery Industry
Enabling domestic recovery and processing of minerals, such as cobalt, nickel, copper, lead, lithium, zinc, antimony and tin, is vital to U.S. national security and supports alternatives to petroleum-based energy sources. Because many of these alternatives are intermittent (wind and solar), and do not necessarily create the energy when it is most needed, significant battery capacity is needed to store renewable energy for later use. In order to produce these batteries domestically, the U.S. will require a significant increase in mineral recovery and processing capabilities. Thankfully for the U.S., Doe Run should be able to contribute a significant amount of material that domestic battery manufacturers will require.
Batteries provide direct or reserve power for a variety of products, from small personal electronic items like cell phones and laptops to enormous grid-scale backup power systems. Lead-based batteries are most frequently deployed to support transportation, whether to start vehicles with internal combustion engines or to provide emergency power for electric vehicles (EVs). Energy-dense batteries, like those seen in small electronic devices or that power the drivetrain in EVs, contain several minerals, including nickel, cobalt, lithium and zinc. While most electronic devices and large EV batteries are not recycled, 99% of lead batteries in the U.S. are recycled. Doe Run proudly recycles nearly 8 million lead batteries a year, returning lead metal and plastics to use in future lead batteries and other products.
Doe Run’s role in supplying mineral products from mining and recycling is vital to addressing the overall energy needs of society. Our mines, along with others in the state, currently position Missouri as ninth in the U.S. for mineral production, with greater than $3 billion in nonfuel mineral commodities.2
According to the Critical Minerals and Materials for Advanced Energy Tech Hub (CM2AE), a consortium led by Missouri University of Science and Technology, “Missouri has a clear and distinct advantage with known mineral resources of cobalt, nickel and rare earth elements.” In fact, CM2AE estimates that the known mineral reserves for cobalt in Missouri could capture 100% of the North American demand for cobalt’s use in battery manufacturing. Doe Run is pleased to be a partner in the CM2AE consortium to advance investment and development in Missouri’s cobalt and nickel resources. Learn more about the importance of cobalt here.
But cobalt and nickel are just a small portion of the total amount of minerals Americans consume. According to the Mineral Education Coalition, the average American born in 2023 will require 3.07 million pounds of minerals, metals and fuels in their lifetime. On an annual basis, this represents 40,209 pounds of new minerals necessary for products we use in our daily lives.
As countries replace fossil fuel dominance with renewable energy sources, the need for battery energy storage will dramatically increase. The International Energy Agency predicts renewable energy markets will grow to 440 gigawatts of capacity globally, with solar capacity representing two-thirds of the projected increase.3 Almost half of all new renewable energy capacity comes from China. This percentage is projected to reach 55% in 2024. For these reasons, it is easy to understand why China is acquiring vast amounts of mineral resources.4
Although the U.S. has its own significant mineral resources, our struggle has been competing with parts of the world where environmental regulation, labor standards and wages are significantly weaker than those of the U.S. This makes producing domestic minerals economically challenging on a comparative basis. Still, we believe increased collaboration between industry and well-placed government incentives will give the U.S. the capability to meet many of its mineral needs in a manner that protects communities, the workforce and the environment.
Planning for the Future
In 2023, we were pleased to receive mineral lease modifications from the Bureau of Land Management (BLM) authorizing the expansion of our underground mine workings. This will extend the life of our mines for years to come, thereby supporting jobs and the $715 million annual economic impact Doe Run has on the region.
However, like many similar industries, we face challenges recruiting the next generation of skilled trade workers. We have been successful in partially addressing this through a partnership with the Missouri Department of Economic Development and their Missouri One Start Job Retention Training Program. Our new workforce development program enables our employees to expand their knowledge and skill set to provide greater mobility within our organization. Learn more about how we are bridging the gap here.
We also work to inspire the next generation to consider our industry through various outreach efforts, including hosting an annual event at the Missouri Mines Historic Site and Museum in Park Hills, Missouri. Additionally, we provide free underground mine tours to those 12 and older annually during Old Miners’ Days, held the first weekend in October in Viburnum, Missouri. These experiences help children and their families learn about the importance of minerals and perhaps spark an interest in a future career with us. Learn more about all our industry has to offer by visiting the National Mine Association’s website to see a video on industry jobs.
These glimpses into our operations also show our neighbors how much we value safety. In 2023, Doe Run employees participated in over 34,000 hours of training, which contributes to working safely day after day. Many of our sites continue to achieve multiple years without lost-time accidents. Our safety data is available here.
Ultimately, what I am most proud of are the people who work for Doe Run. I see many of them throughout the year during impromptu visits, meetings or when we volunteer together at community events. We have intelligent, versatile, resilient employees with the desire and grit to do tough jobs the right way. In many ways, those who work in heavy industries like mining and metal production are unsung heroes, providing the essential products that drive our lifestyles. They are not invisible or unsung to me, and I appreciate what they do to make this a vibrant company and strong country every day.
As you review our Sustainability Report, I invite you to share your comments or reflections with me via this survey link. I value your opinions.
Sincerely,
Matthew D. Wohl
President and CEO
1 Office of the Assistant Secretary of Defense for Industrial Base Policy.
2 U.S. Geological Survey, 2023, Mineral commodity summaries 2023: U.S. Geological Survey, 210 p., https://doi.org/10.3133/mcs2023 Figure 4.
3 https://www.iea.org/reports/renewable-energy-market-update-june-2023/executive-summary
4 https://www.iea.org/reports/renewable-energy-market-update-june-2023/executive-summary