· Without drastic measures, the delocalization could have a potentia impact on a large part of the 33,500 jobs in Spain.

· The sector criticizes the multiple energy policies in Europe, which impede the authentic liberalization of the power market and in the long term doesn’t offer guaranties of supply at competitive prices.

· The industry demands for the compensations contemplated and approved by the European Union, which imply national
governments to subsidize the costs of carbon emissions generated by power providers (the so-called indirect emissions).

· Non-ferrous metals are necessary to keep climate change under control: they are indispensable for technological developments and for energy efficiency optimization, and they can be recycled limitlessly.

Madrid, 29 October 2009. Eurometaux, the Brussels based European association responsible for defending the interests of the non-ferrous metals industry before the European institutions, has met high level representatives
from the Spanish government – which will take over the EU Presidency on 1 January 2010 – to demand urgent measures that will avoid a massive delocalization of this industry to emerging markets.

Without immediate solutions to the most important challenges of this industry – energy prices, competitive access to raw materials, high costs related to indirect
carbon emissions, environmental policies such as IPPC and REACH being the most important ones – the future of an industry that represents 2 per cent of the European GDP and has more than 450,000 direct employees and indirectly
generates over 1 millions additional jobs, will be in danger. In Spain, there’s a potential impact on a large part of the 33,500 jobs.

Javier Targhetta, President of Eurometaux and Atlantic Copper, affirms that, “without satisfying solutions in these fields, the competitiveness of the European
industry will be seriously harmed by the market conditions and regulatory environments in the emerging markets, with dramatic consequences for the future of the industry and the jobs its generates in Europe”.

Non ferrous metals are indispensable to keep climate change under control

The use and recycling of metals are fully consistent with the sustainable development objectives of modern society. Metals such as copper improve the efficiency of the electricity current, resulting in a reduction of power
consumption and carbon emissions. More concretely, the use of premiumefficiency electric motors in the whole European industry would reduce consumption by more than 7 per cent.

Metals can be recycled indefinitely without degrading or losing their properties.

Recycling metals is therefore environmentally beneficial because it reduces waste andbecause it saves energy as the transformation process already took place.

The application of metals is necessary for the development of new technology, and for the application of processes even more efficient and environmentally friendly.

Europe doesn’t have a clearly defined energy policy

The European non-ferrous metals industry demands a common energy market at European level. As the industry’s energy costs amount, as an average, to 35 per cent of its production costs – in the case of aluminium even to 60% -
Eurometaux criticizes the multiple energy policies that exist in Europe, provoking an escalation of prices without securing its supply. Moreover, in Europe there is a clear lack of connections between different countries, what
impedes the transfer of large amounts of power between the countries and creates, as in the case of Spain, authentic ‘power islands’.

In Spain, the situation is even more dramatic since the end of the fixed tariff as of July 2008, which took away the long-term stability that encourages investments and job creation. This situation is of great concern for an industry that needs 11.000 Gwh or 6% of the national power consumption.

“In the long term this cost escalation increases uncertainty and this will refrain the industry from investing. If we continue in the same way, there will be no
future for our industry in Europe”, continues Javier Targhetta.

Indirect emissions will have a cost

The carbon emissions trading market is another of the major challenges of the non-ferrous metals industry. In 2013, the European industry will suffer an increase of the costs related to electricity because power providers will pass on
the costs of their carbon emissions (the so-called indirect emissions). This will cause the Spanish industry an extra cost of between 150 and 200 million euro, which is not sustainable.

According to Javier Targhetta, “if the governments do not apply the compensations contemplated by the European Union, the phenomenon of ‘carbon leakage’ will increase: production will be delocalized to third countries
where costs related to climate change are lower or even inexistent. In this scenario, carbon emissions with origin in Europe might decrease, but at a global level they will remain the same, or might even increase. We must watch that the sustainability policies in Europe do not result in massive job losses without climate taking advantage of it”.

Europe should secure competitive access to raw materials

Access to raw materials is vital for the survival of the non-ferrous metals industry. It is a global market where the European industry needs to import the essential part of its raw materials – more than 20 billion euro in 2008. The
industry meets serious obstacles in its access to raw materials which are necessary for the production, recycling and transformation of metals in Europe, under the form of protectionist measures of third countries. For this reason the industry demands an integrated strategy to tackle the issue of access to raw materials, liberalizing the markets and the mutual lifting of commercial barriers.

“We believe that the non-ferrous metals industry continues to have its place in Europe. Only here do we have the technology and know-how to recycle a large quantity of raw materials. All of the materials we produce have a long life cycle and can be recycled 100 per cent. To maintain this competitive advantage, we think it is absolutely necessary for Europe to tackle the issue of access to raw
materials in an integrated matter and to strive for a global free market without unilateral protectionism”.

The European non-ferrous metals industry at the forefront of environmental technology

Since many years, the European industry is investing heavily in environmentally friendly production technologies and occupies a leadership position in the
implementation of recent European regulation such as IPPC (Integrated Pollution Prevention) and REACH (Registration, Evaluation and Approval of
Chemicals).

The industry has made important investments to adapt itself to these environmental policies, and to use the best available techniques in the production process. Emissions have been reduced to a minimum, and new norms focused on reducing even more the environmental footprint are not
viable, because they would provoke the delocalization of the industry to third countries with less restrictive regulations.

For more information:

www.eurometaux.org

Contact for the press:

Citigate Sanchis
Bart Wauters / Andrea Rodríguez-Miñón
Tel. +34 91 185 77 15 / +34 91 185 77 06
Móvil. +34 607 608 954 / +34 670 407 397
bwauters@citigatesanchis.com
anrodriguez@citigatesanchis.com