The U.S. manganese alloy industry is "in jeopardy" from the Environmental Protection Agency's revised national emission standards for hazardous ai r pollutants, according to Eramet Marietta Inc.

The updated rules for the ferroalloys industry effective June 30 include revisions to particulate matter standards for electric-arc furnaces, metal oxygen refining processes, and crushing and screening operations. They also expand the requirements to control fugitive emissions from furnace operations, tapping, casting and other processes.

Marietta, Ohio-based Eramet and silicomanganese producer Felman Production LLC have two years to comply with the new rules, while new ferroalloy producers must be fully compliant before starting operations, according to an EPA notice in the Federal Register.

The new rules "will have an impact on the domestic steel industry as well as our manganese ferroalloy industry," an Eramet spokeswoman said in a statement.

"Fundamentally, even though the EPA has made some efforts to improve their initial proposal, the final rule remains based on a risk analysis that does not employ the best available science and incomplete cost/benefit analysis and continues to place the remaining domestic manganese alloys production in jeopardy," the spokeswoman said. "While the rule is now final and we must quickly make critical decisions regarding the future of our operations, we hope to continue our dialogue with those in government who are committed to implementing a workable rule."

Facilities covered by the rules must have a system designed to capture 95 percent or more of the process fugitive emissions.

Eramet said it was reviewing the background details used by the EPA to mount a possible legal challenge. "EPA officials assured us during the process that (its) intention was to establish a reasonable rule that addressed the mutual interests of protecting the environment and public, as well as the economic sustainability of our industry and its ability to come into compliance. While progress has been made with the EPA in meeting the former, we remain concerned that the latter is not in balance," the Eramet spokeswoman said.

Eramet's capital costs to upgrade its facility will total about $25.4 million, while annualized costs will be about $5.6 million, according to an EPA estimate.

The agency estimated that Felman's Letart, WVa., facility will incur total capital costs of $14.9 million and annualized costs of around $2.1 million. "In total, these costs could lead to an increase in annualized costs of about 1.9 percent of sales, which serves as an estimate for the increase in product prices, and a decrease in output of as much as 10.1 percent," the EPA said.

The EPA's cost estimates are slightly higher than those presented when the rules were discussed in October (amm.com, Oct. 23).

Felman, a subsidiary of Miami-based Georgian American Alloys Inc., declined a request for comment

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