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EU Chemical Rules to Hike Metal Cost, UK Group Says
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UK: April 14, 2005


LONDON - Proposed EU rules governing the use of chemicals in industry will add unnecessarily to the cost of metals products, a British industry group said on Wednesday.


The EU Chemical Directive, or REACH (Registration, Evaluation and Authorization of Chemicals), is designed to protect humans and the environment from the threat posed by carcinogens or other chemicals that have adverse side effects.

The UK Metal Industry REACH Group (MIRG) recently met with members of the European Parliament to lobby for changes in the legislation. The group plans similar meetings with UK MPs after the upcoming British election, set for next month.

"Unless REACH is changed, metals companies will suffer a huge diversion of scarce human and financial resources into activities that add no value (testing) and problems of workability," the group said in a statement.

The group, including manufacturers, re-cyclers, traders and trade bodies, is stepping up efforts to amend EU chemicals legislation that also applies to metals.

"We are concentrating efforts with the UK negotiating team (to the EU) to try and get the text changed," Annelli Gilbert, spokeswoman for the Non-Ferrous Alliance, said.

"The issues for inorganic metals are different from organics," she added.

Companies importing metals into Europe will have to be licensed by the EU under the proposals. Also, they may have to provide toxicological and risk assessment reports to justify trade in certain materials.

The new rules will cover all imports of metals, compounds, alloys and ores, which are deemed to be sub-sections of the chemicals industry.

MIRG said that the unintended consequences of REACH will be the loss of suppliers and competitiveness of EU metals producer and user industries, resulting in more re-location of industry outside Europe.

It said that metals' primary and secondary raw materials should be excluded from REACH, while alloys should be correctly defined and treated.

Also, if a hazardous substance can be adequately managed continued use should still be allowed, rather than substition.

MIRG includes producers Anglo American, Corus, Rio Tinto plc, markets and trade associations such as the London Metal Exchange (LME) and the Minor Metals Trade Association (MMTA), and industry groups Aluminium Federation (ALFED) and Non-Ferrous Alliance.


REUTERS NEWS SERVICE


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