We build circularity
Building circularity is Sandvik Rock Tools way to ensure that raw materials and other resources are used efficiently and sustainably, and that our products are recycled when they reach the end of their life. Building circularity also means working to prolong service life, using recycled materials, designing products, and developing processes that make recycling easier.
The European Parliament defines circular economy, also referred to as circularity, as a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. Circular economy is the opposite to linear economy.
In linear economy, natural resources are turned into products which are ultimately destined to become waste because of the way they have been designed and manufactured.
Sandvik Rock Tools follows four targets in the focus area “We build circularity”:
- Return rate drill bits
- Supply circularity carbide
- Supply circularity steel
- Waste circularity
Return rate drill bits
Key Performance Indicator (KPI) definition
The KPI “Return rate drill bits” is the number of drill bits sold by Sandvik Rock Tools that are returned via the program for recycling.
How do we achieve this?
The drill bit recycling program is a return system where customers return used drill bits to Sandvik Rock Tools for recycling. In 2023 we implemented “opt-out” meaning that customers need to actively choose if they are not to be part of the program. When we get the used tools back, we can separate steel and carbide and put the materials into effective recycling loops.
Result in 2023
Result in 2023 was that 56% of the drill bits we sold were returned, and we almost reached the target for the year of 60%.
Focus in 2024
The growth in number of extraction units in our sales areas continue but unfortunately, we have some challenges related to the logistics of recycled materials that have resulted in a review of our targeted levels. Target for 2024 is set to 60% and for 2025 to 75%.
Supply circularity carbide
Key Performance Indicator (KPI) definition
The KPI “Supply circularity carbide” describes the weight percent of recycled hard material in the carbide used in Sandvik Rock Tools drill bits.
How do we achive this?
Cemented carbide is a key component for Sandvik Rock Tools products and a well-integrated component in our circular sustainability work. Carbide, with the scarce ingredients of tungsten and cobalt is a very important area for recycling. Through our recycling processes we assure effective use of materials and the same high quality as with virgin raw materials. Our recycling processes result in the significant savings of approximately 40% less CO₂ emissions and 70% less energy in comparison with use of virgin raw materials. This aligns with Sandvik Rock Tools’ commitment to running a sustainable business.
Result in 2023
The portion of recycled materials in or carbide reached 53%. This growth come from development both with regards to the design of our grades and development of the circularity at our suppliers.
Focus in 2024
Considering the efforts in improving circularity both at our suppliers as well as from our carbide development teams, we have now set the target for 2024 to 55% and reviewed the target for 2025 to 60%.
Supply circularity steel
Key Performance Indicator (KPI) definition
The KPI “Supply circularity steel” describes the weight percent of steel Sandvik Rock Tools source from scrap-based steel suppliers.
How do we achive this?
Production of steel represent approximately 7% of the total greenhouse gas emissions in the world. Today there are two different ways to produce crude steel: reduction of iron ore in a blast furnace or smelting steel scrap in an electric arc furnace (EAF).
Recycling steel scrap is important when building circularity and the steel recycling process has a lower climate impact then today’s process for reduction of iron ore. Our suppliers using the electric arc furnace process use a scrap intake of between 80-97% and we estimate an average CO₂ reduction from these processes of 67%.
Sandvik Rock Tools sourcing organization has mapped all steel suppliers to find out what type of production process they have. The suppliers were also asked to share their scope 1, 2 and upstream scope 3 emissions with the purpose to create a baseline for the total greenhouse gas emissions from the steel used in Sandvik Rock Tools drill bits.
We work closely with our steel suppliers to make sure that they have ambitious targets and plans to reduce their climate impact. To increase steel circularity, we strive to procure steel from scrap-based suppliers (EAF process route).
Result in 2023
In 2023 we reached and overall level of steel supplied through the scrap based EAF-route of 70% so the target was achieved.
Focus in 2024
To better highlight strong and weak areas, we have decided to make some changes to how we monitor steel circularity. The measures will be split into two areas: one for products produced for the Rock Tools division and one for products produced for other divisions within Sandvik.
The target for Rock Tools products will be 95% for 2024 and will remain at 100% for 2025. We have realised that despite solid plans to increase portion of steel coming from scrap-based sources, reaching 100% for the full year of 2025 is probably unrealistic. However, our plans show that achieving 100% as a running rate at the end of the year is doable through and increased recycled portion throughout the year.
Waste circularity
Key Performance Indicator (KPI) definition
The KPI “Waste circularity” describes how much of Sandvik Rock Tools generated waste that is reused or recycled.
How do we achive this?
The main part of Sandvik Rock Tools waste is production-generated steel scrap. To reduce steel scrap, the most prioritized approach is to prevent it from occurring in the first place. If steel scrap is avoided, the production steel yield is increased. However, Sandvik Rock Tools is also actively preventing the generation of other waste materials, such as waste cutting fluids in CNC machines.
Result in 2023
In 2023, we reached a 96% level considering waste that was reused or recycled so the target level of 91% was achieved with a margin. This was achieved with improved handling and sorting.
Focus in 2024
For 2024 we keep the target of 95%. Focus will be in establishing this high level of circularity with further focus on minimizing waste and further developing efficiency of the current recycling streams.
Grinding
One way to enhance productivity and service life for Rock Tools products is by re-sharpening our drill bits through grinding. It is an upgrade of the bit, which is visualized in the figure below. By regrinding the drill bits regularly, the length of their service life can increase by up to 10 times. Careful maintenance of the cemented carbide inserts in drilling tools improves almost all rock drilling parameters and ensure a more efficient and resourceful drilling experience with reduced operating cost.
Carbide recycling
Have you heard about the Rock Tools Carbide recycling program? It helps create a secure source of scarce minerals, lowers environmental impact, and reduces waste. It is completely free – you even get paid for the collected minerals.
Our recycling program supports Rock Tools goal of building circularity. This is one crucial action that ensures that raw materials are used efficiently and sustainably and that our products are recycled when they reach end-of-life.
