The EU Raw Materials Initiative

- Critical Raw Materials for the EU -

Trans-Atlantic Workshop
Rare Earth Elements and Other Critical Materials for a Clean Energy Future Boston, 03 December 2010

European Commission Enterprise and Industry European Commission

Enterprise and Industry

Antje Wittenberg
Metals, Minerals, Raw Materials
RMI | A. Wittenberg | 03.12.2010 | 1/26

Main challenges
EU highly dependent on imports of important raw materials (metals and industrial minerals) which are increasingly affected by market distortions

Still potential in Europe (self-sufficient supply

for construction materials, potential for other raw materials), but exploration and extraction

face ongoing increasing competition for different land uses and a highly regulated environment

European Commission Enterprise and Industry

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The Raw Materials Initiative

Ensuring access to raw materials from International Markets under the same conditions as other industrial competitors

Integrated strategy based on three pillars

Right framework conditions within the EU in order to foster sustainable supply from European sources
European Commission Enterprise and Industry

Boosting resource efficiency and recycling to reduce the EU's consumption of primary raw materials

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Trade policy actions

1st pillar

Challenging unjustified trade distortive measures Bilateral negotiations on export restrictions Raising awareness

Trade Annual Activity Report 2009

European Commission Enterprise and Industry

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Development policy

1st pillar

agreement African Union Commission / European Commission in Addis Ababa, June 2010, to launch a bilateral co-operation in three areas:
Governance Infrastructure Geological

/ investment

knowledge / skills

Based on African Mining Vision and EU Raw Materials Initiative

European Commission Enterprise and Industry

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Access to land
Promote the exchange of best practice in land use planning and administrative conditions for exploration and extraction Encourage better networking between national geological surveys to increase the EU's knowledge base

2nd pillar

Develop guidelines the compatibility between Natura 2000 and extractive activities
European Commission Enterprise and Industry
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Promote research

2nd pillar

Under FP7 new funding opportunities have recently been created for projects on:
Advanced

underground technologies for intelligent mining of critical raw materials

Substitution

Coordination

of activities in Member States in the area of the industrial handling of raw material

European Commission Enterprise and Industry

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Efficiency & recycling

Huge potential of EUs Urban Mines Tackle illegal shipment of waste to third countries through a more harmonised enforcement of Waste Shipment Regulation Develop best practices in the area of collection and treatment of key waste streams Develop eco-design measures aimed at fostering more efficient use of raw materials in products
European Commission Enterprise and Industry

3rd pillar

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Increase resource efficiency

The Commission plans to publish a Roadmap on how to move towards a resource efficient Europe by summer 2011.

3rd pillar

The roadmap will set out specific resource efficiency objectives, and how to meet them, based on actions up to 2020 with a time perspective of up to 2050.

European Commission Enterprise and Industry

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Define critical raw materials

European Commission Enterprise and Industry

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Methodology
41 raw materials analysed Time horizon: 10 years A pragmatic approach Three main aggregated indicators

economic importance supply risks environmental country risks

European Commission Enterprise and Industry

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41 raw materials analysed

Aluminum Bentonite Clays (incl. kaolin) Feldspar Graphite Limestone Manganese Perlite Rare earths (REE) Silver Tellurium Tungsten Zinc
European Commission Enterprise and Industry

Antimony Beryllium Cobalt Fluorspar Gypsum Lithium

Barytes Borates Copper Gallium Indium Magnesite

Bauxite Chromium Diatomite Germanium Iron ore Magnesium Niobium

Molybdenum Nickel Platinum Group Metals (PGMs) Rhenium Talc Titanium Vanadium Silica sand Tantalum

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Economic importance
Importance for economic value chain and emerging (key) technologies Renewable energy: solar cells, wind turbines Energy efficiency: hybrid and electric cars, LED lighting, batteries Electronics: flat screens, mobile phones Aerospace: light weight alloys
European Commission Enterprise and Industry

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Emerging technologies
Raw material Production 2006 [t] Demand emerging tech. 2006 [t] Demand emerging tech. 2030 [t] Demand/ prod. 2006 Demand/ prod. 2030 Factor

Gallium Indium Germanium Neodymium Platinum Tantalum Silver Cobalt Palladium Titanium Copper

152 581 100 16.800 255 1.384 19.051 62.279 267 7.211.000 15.093.000

28 234 28 4.000 very small 551 5.342 12.820 23 15.397 1.410.000

603 1.911 220 27.900 345 1.410 15.823 26.860 77 58.148 3.696.070

0.18 0.40 0.28 0.23 0 0.40 0.28 0.21 0.09 0.08 0.09

3.97 3.29 2.20 1.66 1.35 1.02 0.83 0.43 0.29 0.29 0.24

22 8.2 7.9 7.2

2.5 2.9 2.1 3.2 3.6 2.7

European Commission Enterprise and Industry

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Emerging technologies
Raw material Antimony Cobalt Gallium Germanium Indium Platinum (PGM) Palladium (PGM) Niobium Emerging technologies
Antimony-Tin-Oxide (~ In-Sn-O), micro capacitors Li-ion batteries, synthetic fuels Semi-conductors, thin layer photovoltaics, IC, WLED Fibre optic cable, IR optical technology Displays, thin layer photovoltaics Fuel cells, catalysts Catalysts, seawater desalination Micro capacitors, ferroalloys

(2)

Neodymium (REE) Permanent magnets, laser technology Tantalum

European Commission Enterprise and Industry

Micro capacitors, medical technology

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Critical raw materials

High supply risks High share of the worldwide production

China (antimony, fluorspar, gallium, germanium, graphite, indium, magnesium, REE, tungsten) Russia (PGM) Congo (cobalt, tantalum) Brazil (niobium, tantalum)

Low substitutability

REE, PGM

Low recycling rates

When used in very low concentrations

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European Commission Enterprise and Industry

Environmental country risk

Ranking of eligible raw materials according to their environmental country risk

Tu

ng

s te

European Commission Enterprise and Industry

e an ng e M a ni t o nt Be ne to d e s sa n L imli caSi

0,10 0,60
PG M Gr ap F lu h i t or e sp ar In di u m Be ry ll i Ni um ob iu m Ga l li u m Ma gn es i um An ti m on y Ge rm an i um Ra se
Va na di um

Zi T C o n c i t an pp ium A lu Nie r m c ke Te in u l l lu m ri u I B a m T ro n an ux ta R h Mitoe lu m B oe n iu ly b de ra t m n e um Co ba l C h L itth r o iu m m M a iu m gn es i te

1,10 1,60 2,10 2,60 3,10 3,60 4,10

REE
re Ea r th

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Risk analysis
Lithium REE

European Commission Enterprise and Industry

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Critical raw materials

5,0 Rare Earths 4,5

4,0 PGM 3,5

3,0 Supply Risk Germanium 2,5 Magnesium Gallium Niobium

Antimony

2,0

Indium Tungsten Fluorspar Beryllium Cobalt Tantalum Magnesite Chromium Vanadium Graphite

1,5

Barytes

1,0 Lithium Limestone Borate Gypsum Bentonite Silica Silver Copper Feldspar Titanium 5,0 6,0 Economic Importance 7,0 Rhenium Tellurium Iron

0,5

Diatomite Talc

Perlite Clays

Molybdenum Manganese Zinc Nickel Aluminum Bauxite 9,0 10,0

0,0 3,0 4,0

8,0

European Commission Enterprise and Industry

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14 critical raw materials

Graphite Fluorspar

Platinum Group Metals (PGM)

Rare Earth Elements (REE)

European Commission Enterprise and Industry

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Recommendations
Two types of recommendations follow-up and further support policy-oriented recommendations
(areas where measures should be undertaken)

European Commission Enterprise and Industry

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Follow up and further support

Up-date the list every 5 years and enlarge the scope Improve the availability and quality of statistical information and prepare a Yearbook Carry out further studies, e.g. competition to land use, cradle-to-grave LCAs, emerging technologies Establish a sub-group of the Raw Material Supply Group on criticality
European Commission Enterprise and Industry
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Policy-oriented
Access to primary resources

Land use and permitting in the EU Company exploration as research (fiscal issues) Promote RTD Promote good governance in developing countries

Trade and investment

Maintain and strengthen the EU trade policy, pursue dispute settlement in WTO, engage in consultations Raise awareness in multilateral fora A new EU-wide policy on foreign investment Coherence of EU policies with respect to raw materials
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European Commission Enterprise and Industry

Policy-oriented
Recycling

(2)

Improve collection Prevent illegal exports of End-of-Life products Promote research

Substitution

Promote research

Material Efficiency

Minimise the raw material used Minimise raw material losses

RMI | A. Wittenberg | 03.12.2010 | 24/26

European Commission Enterprise and Industry

The Raw Materials Initiative

Ensuring access to raw materials from International Markets under the same conditions as other industrial competitors

Integrated strategy based on three pillars

Right framework conditions within the EU in order to foster sustainable supply from European sources
European Commission Enterprise and Industry

Boosting resource efficiency and recycling to reduce the EU's consumption of primary raw materials

RMI | A. Wittenberg | 03.12.2010 | 25/26

Thank you for your attention !

References: Report on critical raw materials: http://ec.europa.eu/enterprise/policies/raw-materials/critical/index_en.htm Report on best practices in area of land use planning, permitting and geological knowledge: http://ec.europa.eu/enterprise/policies/raw-materials/sustainable-supply/index_en.htm Natura 2000 guidelines: http://ec.europa.eu/environment/nature/natura2000/management/guidance_en.htm Trade raw materials activity report 2009: http://trade.ec.europa.eu/doclib/docs/2010/june/tradoc_146207.pdf Communication on the EU 2020 Flagship Initiative Innovation Union: http://ec.europa.eu/research/innovation-union/pdf/innovation-union-communication_en.pdf

European Commission Enterprise and Industry

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volume [kg]
1,E+02 1,E+03 1,E+04 1,E+05 1,E+06 1,E+07 1,E+08 1,E+09 1,E+10
European Commission Enterprise and Industry

Crus

NE Extractive Industry EU27

Construction Materials Industrial Minerals Metals

hed stone Gr av Sand el an s d pe Mon bbl e ume s Lim ntal s t one estones aggr e Clay s and gat es shal Calc areo Dolo es us m mi Mar b assive s te le an t d t ra one vert in e Gr Sand anit st o n e Mar b Slat e le an Natu d tr ral b it ume avert ine n / as pha Gr an lt it e tot al Othe Sil ic Gy r che mi ca psum an a sands l and d fer tili anhydrit e ser m Mar b l e ag inerals greg ates Kaol in Chal k Fir ec Kaol lay initi c cl a Prec Abra ys ious sives / sem i- pr e cious Nat ural Bent onit e p st on es (e hosphat e cl . in s Prec ds. diam ious meta onds) ls Ir on tot al (excl . roa sted Mixtu i ron pyr it e r es o f e. g s) sl ag Alum i nium Unr o Nick asted el i Lead ron pyri te , zi nc s and t in Ot he Co r non -f erro pper us m etal tot al

1,E+02

1,E+03

1,E+04

1,E+05

1,E+06

1,E+07

1,E+08

value [tds ]

volume [kg]

EU 2007, Eurostat last up date 09/09/2010

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value [tds. ]

Risk analysis
Clays Zinc

European Commission Enterprise and Industry

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World Metal Price

1995-2010

6.08.2010 accident in a small size Cu-mine, Chile

European Commission Enterprise and Industry

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World Metal Price

1995-2010

European Commission Enterprise and Industry

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R&D - preliminary findings

European Commission Enterprise and Industry

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