Download Raw Materials Strategy - EU perspective on translating mineral

Raw Materials Strategy
- EU perspective on
translating mineral resource
wealth into sustainable
development
Malwina Nowakowska
Raw materials, Metals, Minerals and Forest-based Industries Unit
DG Enterprise and Industry, European Commission
Brussels, 15-16 October 2012
Euromed Workshop on Raw Materials
Challenges on raw
materials markets
• 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
• Mining Potential in Europe, but increased
competition for different land uses and a
highly regulated environment
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Critical raw
materials
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EU Raw Materials
Initiative
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
area of non-energy, nonagricultural raw materials
•
connecting EU external and
internal policies
•
launched Nov. 2008
•
reinforced Feb. 2011
level playing field
in access to resource in
third countries
Integrated strategy
•
based on three pillars
•
Ensure
Foster
Boost
sustainable
supply
from European
sources
resource
efficiency
and recycling
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Critical raw materials
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Approach
• 41 raw materials analysed
• Time horizon: 10 years
• Pragmatic, transparent
approach
• Key indicators
¾ economic importance
¾ supply risks
¾ environmental country risks
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Outcome
5,0
Rare Earths
4,5
4,0
PGM
3,5
Supply Risk
3,0
Germanium
2,5
Niobium
Magnesium
Gallium
Antimony
Indium
2,0
Fluorspar
Barytes
1,5
Tungsten
Beryllium
Graphite
Cobalt
Tantalum
1,0
0,5
Diatomite
Talc
0,0
3,0
4,0
Perlite
Clays
5,0
Magnesite
Rhenium
Lithium
Limestone
Borate
Gypsum
Bentonite
Silica
Silver
Copper
Feldspar
Titanium
Tellurium
Iron
6,0
7,0
Economic Importance
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8,0
Chromium
Vanadium
Molybdenum
Manganese
Zinc
Nickel
Aluminum
Bauxite
9,0
10,0
Revising the list of
critical raw materials
9
Update list of critical raw materials at least every 3 years
9
Technical work to start in September 2012
o
Expanded scope
o
Fine-tuning methodology
9
Work to be completed by September 2013
9
Adoption of new list by Commission end 2013
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Pillar 1 – fair and sustainable supply of raw
materials from global markets
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Raw Materials
Diplomacy
EU raw materials diplomacy with a view to securing access to raw
materials through strategic partnerships and policy dialogues with
partners such as:
•
•
•
•
•
•
Latin America
United States
Japan
China
Greenland
Russia
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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
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Development policy
• Sustainable supply needs and development goals => creating winwin situations to translate resource wealth into sustainable growth
• The African Union Commission and European Commission
established a bilateral co-operation on raw materials within the
context of the Joint Africa-EU Joint Strategy 2011-2013 with
focus on three areas:
1. Governance
2. Investment
3. Geological knowledge/skills
• Recent deliverables of this cooperation:
• High Level Africa-EU conference on Raw Materials, Brussels,
January 2012
• First capacity building workshop on Mining Taxation, Addis Ababa,
December 2011
• Presentation of recommendations of the Mining Taxation Workshop to
the AU Mining Ministerial expert meetings in December 2011
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High Level Africa-EU
Conference on Raw
Materials
•
22 African countries represented at the conference and in working groups
•
Recommendations of the joint work in expert groups will feed into the
implementation of the Action Plan
• Underlined the importance of transparency in improving governance both with regards of payments and contracts with responsible
• Competitive and open tendering process, transparency of contracts
and strengthening administrative capacity of governments and
parliaments in contract negotiations are crucial to improve governance
• EU and AU should facilitate the exploration of mineral resources potential in
Africa by fostering the co-operation between the European and African
geological surveys
• The importance of continuous development of geological skills and
increasing own training capacity of African partners in providing this training
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Mining Taxation
Workshop
African and European specialists in mining gathered at Joint AU-EU Workshop
“Transforming Mineral Wealth Into Sustainable Development” delivered
following recommendations to the AU Conference of Ministers of Mines of the
African Union:
•
Adoption of national mining visions: Resource-rich African countries are
encouraged to adopt a national mining vision, including in its tax regime, which
strikes the right balance between increasing domestic revenue collection and
retaining investors. They should align their national policy with the African Union
Mining Vision.
•
Transparency: African and European countries, and their civil societies should
encourage the mainstreaming of transparency in contract clauses, revenue
collection (taxes, royalties, etc.) and tax administration into the African Peer
Review Mechanism (APRM) with the aim to increase resource mobilization, as well
as to prevent corruption
•
Good governance in mining taxation: African countries are encouraged to
adhere to the three principles of good governance in the tax area (transparency,
exchange of information and fair tax competition) so as to facilitate international
tax cooperation and enhance domestic revenue mobilization.
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•
Efficient and strategic use of domestically mobilized revenues: Promoting
industrial development through the integration of linkages between mineral
resource extraction, infrastructure building and related sectors will help increase
the size of and optimize the use of domestic revenues.
•
Capacity building: Capacity building in domestic resource mobilization in African
countries, should be a high priority, especially with regards to contract
negotiations, tax auditing, transfer pricing and national mining strategies.
•
Country by country reporting and international reporting provisions:
African and European countries should support international efforts leading to the
global adoption of Country-by-Country Reporting provisions
•
Donor support: European and other donors should strengthen in a sustainable
manner their capacity building efforts in African countries on domestic resource
mobilization, particularly in the mining sector
•
Strengthening the Africa Union – European Union Joint Strategy:
European and African countries should strengthen the joint Africa – EU Strategy
and its Democratic Governance and Human Rights Partnership and welcome the
work already undertaken through its Working Group on the Governance of
Natural Resources
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EU in support of
transparency
EU’s commitment to transparency:
• Physical markets transparency (initiative to
increase transparency of commodity markets)
• Transparency of revenues
• Enhance support to Extractive Industries
• Transparency Initiative (EITI) and help developing
countries to implement it
• Promote disclosure of financial information by extractive
sector – proposal to introduce an obligation of disclosure of
payments to governments adopted by the Commission in
October 2011
• Examine ways to improve transparency
throughout supply chain (e.g. conflict minerals)
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Transparency of
payments
The proposal for Country-by-Country Reporting
adopted by the Commission in October 2011 is a
milestone to increase transparency of payments
to governments in the extractive industry
• Help society at large and national supervisory bodies to hold
governments
• Help hold companies to account for revenue payments and
receipts
• Decrease fraud and corruption
• Ensure a more predictable trade and investment
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Supply chain
transparency
• Responsible behaviour by companies operating in conflictaffected or high-risk areas can play a powerful and positive socioeconomic role.
• The EU is committed to examine ways to improve
transparency throughout the supply chain and tackle in
coordination with key trade partners situations where revenues
from extractive industries are used to fund wars or internal
conflicts
• The EU supports the OECD Due Diligence Guidance on
Responsible Supply Chains of Minerals as a tool for
companies to engage in responsible trade of minerals
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Way forward
• Translating the mineral resource wealth into
sustainable development and inclusive economic
growth for Africa is an important element of EU’s
policies and especially its raw materials strategy
• The EU is committed to assist Africa in addressing the
problems related to natural resources management at
all levels: continental, bilateral and regional.
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Pillar 2 – fostering sustainable supply
within the EU
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Access to land
• Promote the exchange of best practice in
land use planning and administrative
conditions for exploration and extraction
• Guidelines promoting the compatibility of
NEEI in
relation to Natura 2000 conservation goals
• Encourage better networking between
national geological surveys to increase the
EU's knowledge base
• Develop medium to long term strategies to
integrate sub-surface components and
spatial information into land-use planning
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With courtesy by Knauf Gips KG
Best practices
• 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:
9 a digital geological knowledge base
9 a transparent methodology for identification of mineral
resources
9 long term estimates for regional and local demand and
identifying and safeguarding mineral resources
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Best practices (2)
• Clear and understandable minerals exploration
and extraction authorisation process contributing
to the streamlining of the administrative
process:
9 introduction of lead times
9 permit applications in parallel
9 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
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Promote R&D and
innovation
2008
2009
2010
2011
2012
2013
2014
2015
2016
One Geology Europe
ProMine
“Horizon 2020”
Exploration,
extraction,
processing,
recycling and
substitution
ExPerl
ImpactMin
EO-MINERS
EuroGeoSource
Data capture and
analysis for
Exploration.
I²Mine
ERA-MIN
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Case #1: ProMine
• 2009-2013
• Budget: € 17 million
• 27 partners from 11
Member States
• Aims to improve the EU’s
knowledge base for actual
and future deposits
• Develop first ever panEuropean GIS-based mineral
resources database and
detailed 4D computer
modelling system
Assessments and homogenising multi-layer
information system within the ProMine-Project
building a basis for 3D and 4D modelling.
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Pillar 3 – boosting resource efficiency and
promoting recycling
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Waste
• A mobile phone contains today more than 40 different raw
materials, such as cobalt, gallium, platinum and rare
earths elements.
• Nowadays, each citizen in the EU generates around 17 kg
of electrical and electronic equipment waste (WEEE)
annually, a figure which is predicted to rise to 24 kg by
2020.
(EIP Communication-Source IPA (International Platinum Group Metals Association)
Strengthen Waste Shipment Regulation
9 precise and workable inspection standards
9 technologies for detection, tracking of illegal shipments
9 examine feasibility of global certification scheme for recycling
facilities
9 assess feasibility of formal EU-level mechanism, building on IMPEL
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• 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
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Innovation Partnership
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EIP – novel concept
European Innovation Partnership on Raw
Materials
COM(2012) 82 final - 29 February 2012
Objectives:
• Reduce import dependency
• Provide alternatives in supply
• Push Europe to the forefront in raw materials sectors
• Mitigate negative environmental impacts
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2020 targets
• Up to 10 innovative pilot actions, e.g.
demonstration pilot plants → exploration, mining,
processing, collecting and recycling
• Substitutes for at least 3 applications of critical raw
materials
• Network of Research, Education and Training
Centres on sustainable raw materials management
• EU standardised instruments for the survey of
resources/reserves and 3-D geological map
• dynamic modelling of trends: link demand and
supply with reserves and complete LCA
• Pro-active strategy of EU at bilateral and
multilateral level
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Key components
•
•
Technology-focused policy areas
•
WP1 - Exploration, extraction, processing, recycling …
•
WP2 - Substitution, alternative functionalities and
materials
Non Technology policy areas
•
WP3 - Improving Europe's raw materials regulatory
framework conditions, knowledge base and
infrastructure
►
•
WP4 - Improving Europe's recycling regulatory
framework conditions and excellence
►
•
e.g. data interoperability and availability
e.g. public procurement, private initiatives
WP5 - International cooperation
•
Promoting appropriate international cooperation
►
various policy issues possible e.g. geology, research, trade,
competitiveness and investment conditions
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References
Thank you for your attention !
•EU raw materials webpage:
http://ec.europa.eu/enterprise/policies/raw-materials
•EU 2010 Report on critical raw materials:
http://ec.europa.eu/enterprise/policies/raw-materials/critical/index_en.htm
•European Innovation Partnership on raw materials
http://ec.europa.eu/enterprise/policies/raw-materials/innovation-partnership/index_en.htm
•2011 JRC report on critical metals and energy technologies:
http://setis.ec.europa.eu/newsroom/library/setis-presentations/jrc-report-on-critical-metalsin-strategic-energy-technologies
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