MINEX Forum

Tag: Critical raw materials

  • EU Highlights Recycled Materials in Push for Sustainability

    EU Highlights Recycled Materials in Push for Sustainability

    The European Union is intensifying efforts to integrate recycled raw materials into its sustainability strategy, addressing critical challenges in the supply chain for green technologies. Environment Commissioner Jessika Roswall highlighted the underutilization of secondary materials like lithium, cobalt, and copper, which are crucial for the EU’s transition to climate neutrality by 2050.

    The EU’s Critical Raw Materials Act, introduced in 2023, targets 40% domestic production of strategic raw materials by 2030, complemented by streamlined mining permits and high environmental standards. This initiative aims to reduce dependence on China and the U.S. while boosting the EU’s resilience.

    Complementing this, the Clean Industrial Deal—slated for February 26—will outline financial incentives, trade agreements, and measures to curb unfair competition. Proposals include pooling resources and creating platforms for collective purchasing of essential materials. Businesses are pressing for immediate action to secure a sustainable future and maintain global competitiveness.

  • EU Bolsters Lithium Supply with Latin American Partnerships

    EU Bolsters Lithium Supply with Latin American Partnerships

    The European Union is intensifying collaborations with Latin America to secure critical raw materials, particularly lithium, essential for its energy transition. Facing a 12-fold rise in lithium demand by 2030 and 21-fold by 2050, the EU relies heavily on Chile, which supplies 79% of its refined lithium. A trade agreement with Chile, effective February 2025, introduces a chapter dedicated to energy and raw materials—an EU first.

    Additionally, the EU has reached a preliminary deal with Mercosur to lower tariffs and export restrictions. Brazil, the region’s leading supplier of critical raw materials, and other Latin American countries extract 25 of the 34 materials on the EU’s critical list.

    While these partnerships offer economic opportunities, they face environmental and social challenges. Over 40% of environmental conflicts in Latin America are linked to mining activities. Concerns persist about the sustainability of water-intensive lithium extraction, despite EU assurances of provisions for sustainable mining and environmental assessments.

  • Key Barriers in Kazakhstan’s Mining Sector Hinder Investment Climate

    Key Barriers in Kazakhstan’s Mining Sector Hinder Investment Climate

    Barriers within Kazakhstan’s mining sector have been identified as a major hurdle for investment in the country. A recent consultation document on proposed legal amendments highlighted concerns about access to mineral rights, including convoluted regulations and a lack of automation in government services.

    Further issues stem from inconsistencies between mining regulations and other areas of law, such as tax, water, land and environmental legislation. These inconsistencies create uncertainty for mining companies and hinder their ability to meet their licence obligations.

    Regulatory and Procedural Barriers

    • The current regulatory framework for mining lacks clear and efficient procedures, leading to complexities in obtaining and exercising mining rights. This includes inadequate automation of state services, insufficient regulation of state information resources, and overlapping legislation in areas such as ecology, land use, and taxation.

    Legislative Inconsistencies

    • There are inconsistencies between the mining code and other related legislation, such as water, land, and environmental laws. For example, the mining code prohibits operations on certain territories, including those within water fund lands, which contradicts previous legislation and restricts activities like sand extraction from river beds.

    Specific Issues

    • Unclear regulations on the reclamation of mining sites, conflicting provisions with the Civil Code regarding contract and license obligations, and the lack of clear guidelines on servitude payments and compensation for land use are significant issues.
    • The prohibition on mining in certain areas, such as those with high natural methane content without prior degasification, creates operational challenges due to the absence of specific norms and authorities to set these standards.

    Institutional and Administrative Challenges

    • The process of forming the State Fund for Mineral Resources Management is marred by lack of transparency and coordination between state bodies. This leads to inefficiencies in the allocation of mining rights and the management of mineral resources.
    • The requirement for exclusive rights to specific territories is not adequately ensured, leading to conflicts between different mining users.

    Practical Challenges

    • The use of experimental-industrial mining is often abused, hiding industrial-scale extraction under the guise of exploration. This practice undermines the integrity of the exploration phase.
    • The high cost of acquiring machinery for small-scale mining operations is a significant financial burden, suggesting the need for more flexible arrangements such as equipment rental.

    International Comparisons and Recommendations

    • Kazakhstan ranks 56th out of 84 countries in the Investment Attractiveness Index by the Fraser Institute, with negative evaluations in legal, tax, and labor legislation, as well as in geological data quality. To improve, Kazakhstan should analyze and adopt best practices from other countries, engage in consultations with stakeholders, and streamline regulatory processes to enhance transparency and efficiency.

    Addressing these issues is crucial for improving Kazakhstan’s investment climate, particularly in the mining sector, and aligning it with international standards to attract more foreign and domestic investment.

  • Kyrgyzstan Paves New Path in Mining Sector with Focus on Critical Raw Materials

    Kyrgyzstan Paves New Path in Mining Sector with Focus on Critical Raw Materials

    Kyrgyzstan is on the verge of a transformative shift in its mining industry, announcing plans to issue licenses for the extraction of critical raw materials (CRMs)—a strategy that seemed improbable just five years ago. This evolution follows extensive political reforms under President Sady Japarov, who has been pursuing new revenue streams since his election in late 2020.

    Traditionally, Kyrgyzstan has depended on mining, especially the Kumtor gold mine, due to a lack of natural gas and oil reserves. The Kumtor mine, near Lake Issyk-Kul, was initially estimated to hold 514 tons of gold but has faced controversies over environmental issues and a cyanide spill in 1998, impacting local communities and tourism.

    Public disapproval of mining activities has intensified, particularly after the 2019 Kyzyl-Ompol uranium mining controversy where nearly 30,000 citizens protested, leading to a moratorium on uranium and thorium mining due to environmental and health concerns. However, as the demand for CRMs increases globally—driven by the European Commission’s call for energy transition and secure CRM supplies—Kyrgyzstan is revisiting its mining prospects.

    In June 2024, Kyrgyzstan’s parliament lifted the uranium mining moratorium, encouraging new exploration nationwide. Amendments in subsoil use and biosphere territories regulations aim to streamline CRM resource development.

    Kyrgyzstan, however, faces obstacles in attracting foreign investment due to a fraught history with international mining companies, notably the Centerra dispute over Kumtor. Yet the government is eager to attract both domestic and international partners, with recent talks involving the Zhicun Lithium Industry Group for lithium mining.

    While mining activities, such as the start of operations at Kyzyl-Ompol, underscore the government’s commitment, environmental concerns persist. Incidents like a glacier damaged by a Chinese coal mining company and a radioactive waste spill have renewed public apprehensions, evoking memories of past controversies. Kyrgyzstan’s shift toward CRM mining raises questions about sustainable development, with hopes to avoid previous missteps and create long-term economic benefits for the country.

     

  • EU Faces Challenges in Critical Raw Material Strategy Amid Global Race for Supply Chain Resilience

    EU Faces Challenges in Critical Raw Material Strategy Amid Global Race for Supply Chain Resilience

    While the Brussels Effect has driven strict regulatory standards for Critical and Strategic Raw Materials (CSRM), Europe may risk falling behind other global players in building a resilient supply base. An analysis by the French Institute of International Relations (Ifri), a Paris-based think tank, evaluates European de-risking policies in the context of international concerns over reliance on a few key suppliers, particularly China.

    China’s export controls on materials like germanium, gallium, and rare earths underscore the risk of critical dependencies as a geopolitical tool. In response, OECD countries are emphasizing national security, strategic autonomy, and the governance of CRM supplies. The EU and the United States have taken steps to diversify their supply chains. The EU’s Critical Raw Materials Act (CRMA), part of the Green Deal, emphasizes sustainability and autonomy, while the US focuses on national security through investments like the Development Finance Corporation (DFC). Japan began addressing CRM dependencies as early as 2010.

    To counterbalance China’s Belt and Road Initiative, the EU and US have increased CRM partnerships since 2021. However, Ifri’s analysis stresses the need for these partnerships to yield immediate, tangible results. Countries in the Middle East are also integrating into CRM value chains, while resource-rich developing nations seek to retain more local value through processing and manufacturing.

    Despite progress, the EU faces financial constraints and public opposition, threatening its strategic CRM goals. According to Ifri, without external financing, Europe risks lagging behind global players such as the US, Japan, and the Middle East in developing a secure CRM base. The race for lithium, nickel, and rare earth elements (REEs), crucial for green energy goals, is reshaping geopolitics and intensifying international competition.

    To meet its target of extracting 10% of annual CRM demand by 2030, the EU must expand its mining and refiningcapabilities. The bloc requires at least ten new mines, 15 processing plants, and 15 recycling facilities by 2030, according to EIT RawMaterials. Public opposition, however, remains a significant obstacle. Sustainable mining expert Peter Tom Jones calls for public education to support modern, eco-friendly mining practices that prioritize environmental, social, and governance (ESG) standards. Nordic countries are seen as a model, with Jones stressing the importance of local CRM mining to reduce reliance on less sustainable sources abroad.

    Jones envisions a future where mining is safe, climate-neutral, and engages local communities as stakeholders. He describes a modern mine worker as one who operates high-tech machinery remotely, symbolizing the shift toward automated, climate-conscious mining that reduces traditional environmental impacts.

  • EU and Uzbekistan ink strategic partnership to secure critical raw materials

    EU and Uzbekistan ink strategic partnership to secure critical raw materials

    The MoU, inked by European Commission Executive Vice-President Valdis Dombrovskis and Uzbekistan’s Minister of Investment, Industry, and Trade Laziz Kudratov, underscores a mutual commitment to bolster cooperation in the realm of CRMs.

    The strategic partnership delineates several key areas of collaboration:

    • Integration of Sustainable CRM Value Chains: This entails networking, project proposal selection, joint project development, and trade and investment facilitation along the entire value chain.
    • Enhancing Resilience of CRM Supply Chains: Both parties will engage in dialogue to bolster transparency regarding investments, operations, and exports.
    • Mobilization of Funding: Efforts will be directed towards funding projects arising from the partnership, alongside the development of necessary infrastructure, such as clean energy supply.
    • Promoting Sustainable and Responsible Production: The partnership aims to ensure sustainable and ethical production and sourcing of CRMs.
    • Research and Innovation Collaboration: Both entities will share knowledge and technologies related to sustainable exploration, extraction, processing, and recycling of CRMs.
    • Capacity Building: Cooperation will extend to enforcing relevant rules, alongside training and skill development initiatives.

    Moving forward, subsequent to the MoU’s endorsement, the EU and Uzbekistan will collaboratively formulate an operational roadmap comprising concrete implementation actions.

    It will be important to improve the resilience of CRM supply chains and establish a dialogue to enhance the transparency of measures related to investments, operations and exports. Funding needs to be mobilised for projects resulting from the EU-Uzbekistan partnership and for the development of infrastructure, such as the development of clean energy supply.

    Next steps include agreeing on an operational roadmap with concrete steps towards its implementation, as part of the EU’s commitment to establishing mutually beneficial CRM value chain partnerships with resource-rich countries. Uzbekistan has the second-largest reserves of CRMs in Central Asia, boasting significant deposits of various minerals such as copper, molybdenum, and gold. The country’s mining strategy aligns with its ambitions to increase the processing of CRMs for both domestic and international industries, particularly in automotive and consumer electronics.

    In a broader context, this partnership resonates with the objectives articulated in the 2020 Action Plan for Critical Raw Materials and the EU’s external energy engagement strategy. It underscores the EU’s commitment to fostering mutually beneficial CRM value chain partnerships with resource-endowed nations.

    Uzbekistan, boasting the second-largest reserves of CRMs in Central Asia, possesses important deposits of minerals such as copper, molybdenum, and gold. The country’s mining strategy aligns with its aspirations to enhance CRM processing for both domestic utilization and international industries, notably the automotive and consumer electronics sectors.

    This strategic alliance aligns seamlessly with the EU’s Global Gateway strategy, a flagship initiative earmarked for sustainable and high-quality investments worldwide. The strategy aims to address the needs of partner countries, ensuring enduring benefits for local communities. As part of this initiative, the EU aims to mobilize up to €300bn in investments by 2027.

    The EU has already forged raw materials partnerships with several nations, including Canada, Ukraine, Kazakhstan, Namibia, Chile, Argentina, Zambia, the Democratic Republic of Congo, and the Autonomous Territory of Greenland, underscoring its proactive approach to securing critical resources and fostering global partnerships.

     

    Photo © EUROPEAN COMMISSION

  • Europe’s Green Transition Driving Demand for Critical Raw Materials

    Europe’s Green Transition Driving Demand for Critical Raw Materials

    The surge in demand for raw materials is primarily propelled by Europe’s commitment to transitioning to a green economy, with a focus on achieving climate neutrality. This push towards sustainability has been further fueled by Russia’s conflict with Ukraine, prompting a rapid shift away from fossil fuels towards renewable energy sources.

    The European Union (EU) established a methodology in 2010 to identify critical raw materials (CRMs), based on supply risk and economic importance. Materials are deemed critical if they face high supply risks and are economically significant. These CRMs, including lithium and rare earth elements (REE), play pivotal roles in various sectors, particularly in green and digital transitions.

    Lithium, for instance, is indispensable for battery production, with demand projected to skyrocket in Europe and globally. Similarly, REE are vital for manufacturing electric motors, wind turbines, and energy-efficient lighting. However, the EU’s heavy reliance on a few supplier countries, notably China, poses significant supply chain vulnerabilities.

    To address these challenges, the EU emphasizes material efficiency, substitution, and circularity. Circular economy strategies, such as recycling and promoting alternatives, are crucial for reducing import dependencies and ensuring a resilient supply chain for CRMs.

  • Report Urges Increased Circularity in EU’s Critical Raw Materials Market

    Report Urges Increased Circularity in EU’s Critical Raw Materials Market

    A report unveiled by CLG Europe’s Materials & Products Taskforce and the Wuppertal Institute underscores the imperative for heightened circularity within the European Union’s critical raw materials sector. Titled “Embracing Circularity: A Pathway for Strengthening the Critical Raw Materials Act,” the document directly addresses deficiencies in the EU’s Critical Raw Materials Act (CRMA) issued in March 2023.

    Circularity, the report argues, transcends mere recycling and underscores the necessity of effectively retaining materials within the system for extended periods. Critiquing the current CRMA proposal for its inadequate treatment of this aspect of circularity, the report focuses on aluminum (bauxite and magnesium), lithium, and rare earth elements (REE), drawing on evidence-based research and industry case studies to offer actionable recommendations to policymakers.

    Eliot Whittington, Chief Systems Change Officer at CISL, accentuated the potential of a more circular economy in Europe to simultaneously tackle challenges related to key materials and climate change. The report posits that embracing circularity during CRMA negotiations could accelerate the region’s progression toward climate neutrality and strategic autonomy.

    Integral to the green transition, the demand for raw materials profoundly affects the manufacturing of solar panels, wind turbines, and electric vehicles. With 24 materials listed in the CRMA imported from China and concerns regarding the environmental and societal ramifications of domestic mining, the report stresses the EU’s strategic autonomy.

    Advocating for a shift toward a reuse model, the report proposes that a circular economy in the EU could fortify the security of supply for critical raw materials. Prof. Dr. Manfred Fischedick, President and Scientific Managing Director of the Wuppertal Institute, champions a circular economy as a more sustainable alternative to mitigate environmental impact.

    The report’s recommendations encompass a more comprehensive circular approach within the CRMA, advocating for flexibility, forward-looking infrastructure, a coherent European Industrial Strategy, sustainable supply chains, and incentives for green technologies.

  • Kazakhstan-EU Meeting Emphasizes Collaboration on Critical Raw Materials and Green Energy Initiatives

    Kazakhstan-EU Meeting Emphasizes Collaboration on Critical Raw Materials and Green Energy Initiatives

    A gathering convened by the Kazakh Embassy in Belgium on March 5th attracted approximately 60 high-ranking officials from the European Union alongside representatives from the EU business community. Central to the discussions at this significant meeting was the collaboration between Kazakhstan and Europe pertaining to critical raw materials (CRM), green hydrogen, and batteries.

    In November 2022, Kazakhstan and the European Union cemented their cooperation by signing a Memorandum of Understanding on sustainable raw materials, batteries, and renewable hydrogen value chains. This milestone agreement was accompanied by the adoption of a detailed Roadmap for implementation throughout 2023.

    During the meeting, Bolat Akchulakov, energy advisor to the president of Kazakhstan, underscored the strategic significance of the Kazakhstan-EU Memorandum of Understanding. He highlighted its pivotal role in fostering a strategic partnership aimed at collectively advancing the objectives of a green transition.

    Luc Devigne, deputy managing director for Eastern Europe and Central Asia at the European External Action Service (EEAS), lauded the Kazakhstan-EU relationship as a “success story of cooperation.” He reiterated the EU’s commitment to further strengthen this partnership, ensuring the sustainability of supply chains and the mutual achievement of climate change goals.

    As part of the event, Kazakhstan’s national company, Kazakh Invest, delivered a comprehensive report on CRM at its Brussels office. The report highlighted that Kazakhstan currently produces 19 out of the 34 critical raw materials listed by the European Union. Additionally, it was emphasized that Kazakh manufacturers presently supply the EU with beryllium, tantalum, and titanium. Furthermore, there exists untapped potential to explore other raw materials in Kazakhstan, with the prospect of establishing processing plants for nickel, cobalt, manganese, and lithium. This strategic initiative would enable Kazakh enterprises to make substantial contributions to the production of batteries, which are integral components for electric vehicles.

  • Estonia Joins Minerals Security Partnership to Enhance Supply Chain Resilience

    Estonia Joins Minerals Security Partnership to Enhance Supply Chain Resilience

    Estonia has recently announced its participation in the Minerals Security Partnership (MSP), an initiative led by the United States aimed at bolstering the security of critical raw materials. This move is part of Estonia’s strategy to expand its network and attract new industries to the country in the coming years.

    The Ministry of Foreign Affairs underscored the significance of joining the MSP, emphasizing the importance of international cooperation in securing the supply of critical raw materials. With the presence of Europe’s largest rare earth elements processing plant in Estonia, membership in the MSP is seen as pivotal for the development of this sector.

    Jüri Seilenthal, the Director General of the Department for External Economic Policy and International Economic Organisations at the Ministry of Foreign Affairs, stressed the need for Estonia to reduce reliance on external sources, especially in the face of global conflicts. He stated that participation in the MSP is aligned with Estonia’s goal of ensuring access to critical raw materials.

    Ene Jürjens, the Director General of the Natural Resources Department at the Climate Ministry, highlighted Estonia’s expertise in processing rare earth elements, positioning the country uniquely in the global supply chain.