european commission enterprise and industry the eu raw materials strategy presentation for the...

European CommissionEnterprise and Industry

The EU Raw materials strategy

Presentation for the Working Party on Euro-Mediterranean Industrial Cooperation15 November 2011, Brussels



Structure of the presentation

Raw materials

Challenges on commodity and raw materials markets

Raw materials potential of selected PanEuroMed countries

EU Raw materials strategy Critical raw materials Fair and sustainable supply of raw materials from global

markets Fostering sustainable supply within the EU Boosting resource efficiency and promoting recycling

Way forward


Raw materials

Non-energy, non-agricultural raw materials

Including metallic minerals, industrial minerals, construction materials, wood, natural rubber

Primary and secondary raw materials


Commodity markets challenges

Commodity markets displayed increased price volatility in recent years

At the heart lies a series of changes in global supply and demand + short term shock in key commodity and raw material markets

Markets are experiencing the growing impact of finance

The Commission has put forward an ambitious program to increase the integrity and transparency of commodity derivatives markets

Further improvements in the transparency and accessibility of information on the physical commodity markets are necessary


Raw materials challenges

Continued growth by emerging countries will keep pressure on demand for raw materials

Demand also increasingly driven by demand for new technologies

EU highly dependent on imports of important raw materials which are increasingly affected by market distortions

Potential in Europe, but exploration and extraction face increased competition for different land uses and a highly regulated environment


In its Communication of 2 February 2011 the Commission proposes a new integrated strategy which outlines actions in the area of non-energy, non-agricultural raw materials

It further pursues and reinforces the 3 pillar-based approach of the Raw Materials Initiative:

1) Fair and sustainable supply from global markets

2) Foster sustainable supply of raw materials from EU sources

3) Boost resource efficiency and promote recycling

EU Raw materials strategy


Critical raw materials


Rare Earth Elements

9


Critical raw materials

Monitor issues of critical raw materials to identify priority actions

Update list of critical raw materials at least every 3 years

Policy actions not limited to critical raw materials exclusively


Raw materials potential of Middle East countries of the EuroMed group

Turkey plays the stronger role in production of metals and industrial minerals: ca. 7% of world chromite production, ca. 2% of steel production and 2.5% of world cement production.

Israel, Jordan, Lebanon and Syria are among world leading producers of phosphate and potash (together 7 and 14 % of world production respectively). Steel and gypsum production of these countries is relatively small, with Turkey behind region's largest and providing ca. 1% of world output.


Raw materials potential of African countries of the EuroMed group

Tunisia is a significant producer of phosphate rock and phosphate-based fertiliser. In phosphate rock - world's 5th in 2009 with 4.4% of world supply. Other mineral commodities produced in Tunisia include aluminum fluoride, cemen, common clays, gypsum, iron and steel, iron ore and lime. 43% if its phosphate rock exports went to Poland in 2009.

Algeria produces iron and steel; precious metals such as gold and silver; and industrial minerals, including barite, bentonite and other clays, cement, crushed stone, gravel, gypsum, helium, limestone, marble, nitrogen fertilizer, phosphate rock, pozzolan, quartz, salt, and sand. Furthermore, the country has large deposits of unexploited minerals, including celestine, diamond, manganese, quartz crystal, rare-earth minerals, tungsten, and uranium


Raw materials potential of African countries of the EuroMed group Egypt is a significant producer of cement, direct-reduced iron (DRI). In 2009

Egypt was the world’s 11th ranked cement producer and accounted for 1.5% of the world’s cement production. The country was the world’s seventh ranked producer of DRI and accounted for 4.5% of the world’s total production.

Additionally, Egypt produced aluminum, barite, basalt, bentonite, coke, construction sand and gravel, dolomite, feldspar, ferroalloys, granite, gypsum, ilmenite, iron and steel, iron ore, kaolin, limestone, manganese, marble, phosphate rock, quartz, salt, sandstone, secondary copper, silica sand, talc, and vermiculite.

Morocco possesses about three-quarters of the world’s estimated reserves of phosphates. It was the world’s third ranked producer of phosphates after China and the United States and controlled one-third of the international trade in phosphates and their derivatives. Morocco was continuing to develop its phosphate derivatives sector. These mineral commodities and products were Morocco’s leading foreign exchange earning sector and accounted for about 35% of foreign trade. As a result, the mining industry continued to play a key role in the national economy. In 2009 Morocco produced 17% of the world’s output of phosphate rock, 6% of the world’s output of barite, 2% of the world’s output of cobalt, 2% of the world’s output of fluorspar, and 1% of the world’s output of lead.


Pillar 1 – fair and sustainable supply of raw materials from global markets


EU raw materials diplomacy with a view to securing access to raw materials through strategic partnerships and policy dialogues

Raw materials diplomacy


Development policy and sustainable supply of raw materials

Sustainable supply needs and development goals => creating win-win situations to translate resource wealth into sustainable growth

Cooperation under Africa-EU Joint Strategy Union (2011-2013) with focus on three areas:

1.Governance

2.Investment

3.Geological knowledge/skills


Reinforce trade strategy

Develop bilateral dialogues and strengthen ongoing debates (e.g. G20, UNCTAD, WTO, OECD)

Include raw material issues in trade negotiations

Continue to tackle barriers through dialogue, but dispute settlement where justified


Pillar 2 – fostering sustainable supply within the EU


Access to land

Promote the exchange of best practice inland use planning and administrativeconditions for exploration and extraction

► Guidelines promoting the compatibility of NEEI inrelation to Natura 2000 conservation goals

Encourage better networking between national geological surveys to increase theEU's knowledge base

Develop medium to long term strategies to integrate sub-surface components and spatial information into land-use planning

With courtesy by Knauf Gips KG


Best practices – key elements Definition of a National Minerals Policy, based on

sustainable development principles and appropriate legal framework

Legal framework includes mineral acts, a transparent fiscal framework and effective safeguarding of actual and potential mineral resources through land use planning

Setting up of a land use planning policy for minerals that comprises:

a digital geological knowledge base

a transparent methodology for identification of mineral resources

long term estimates for regional and local demand and identifying and safeguarding mineral resources


Best practices – key elements (2)

clear and understandable minerals exploration and extraction authorisation process contributing to the streamlining of the administrative process:

introduction of lead times

permit applications in parallel

one-stop-shop / parallel assessment

Commission proposes to assess with Member States, in full respect of subsidiarity, the feasibility of establishing a mechanism to monitor actions by Member States in this area


Enhancing the EU’s knowledge base

In short term, Commission to assess with Member States, the scope for increases synergies between national geological surveys => increase potential for joint projects

In medium term, any synergies should contribute to improved European raw materials knowledge base, taking into account GMES

Promote research and development in the raw materials value-chain including extraction, processing and substitution


An example: ProMine

Launched in 2009

Budget: € 17 million

27 partners from 11 Member States

Aims to improve the EU’s knowledge base for actual and future deposits

Develop the first ever pan-European GIS-based mineral resources database and a detailed 4D computer modelling system

Assessments and homogenising multi-layer information system within the ProMine-Project building a basis for 3D and 4D modelling.


ProMine - preliminary Findings


Pillar 3 – boosting resource efficiency and promoting recycling


Large potential of EU’s Urban Mines

Review of Thematic Strategy on waste prevention and recycling in 2012

Develop best practices in collection and treatment of waste

Develop ecodesign instruments to promote more efficient use of raw materials and ensure recyclability of products

Recycling and resource efficiency


Strengthen Waste Shipment Regulationprecise and workable inspection standards

technologies for detection, tracking of illegal shipments

examine feasibility of global certification scheme for recycling facilities

assess feasibility of formal EU-level mechanism, building on IMPEL

Recycling and resource efficiency (2)


Need for innovation along the entire value chain of raw materials

Commission preparing a proposal for an Innovation Partnership on raw materials within the Europe 2020 Innovation Union Flagship

Public consultation held from April till June

Potential Innovation Partnership on raw materials


• Need for reinforced cooperation with Member States

•Increase the level of awareness and cooperation at international level

•Promote awareness through annual thematic event: on 26 January 2012 a high level conference on EU/Africa and raw materials in Brussels

Way forward


•Council supports proposed approach in its Conclusions of 10 March 2011

•EP has adopted an own-initiative report on 12 September 2011 which expresses support and provides further political guidance

Way forward (2)


Thank you for your attention !

European Commission raw materials webpage:

http://ec.europa.eu/enterprise/policies/raw-materials

european commission enterprise and industry the eu raw materials strategy presentation for the...

Documents

raw materials demand

nonagricultural raw

secondary raw materials

raw materials initiative

list of critical raw

construction materials

industry slide

raw material markets