MINEX Forum

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  • Aurubis to invest € 330 million in precious metals processing and environmental protection at the Hamburg site, expanding project pipeline to € 750 millionb

    Aurubis to invest € 330 million in precious metals processing and environmental protection at the Hamburg site, expanding project pipeline to € 750 millionb

    Aurubis AG, a leading global provider of non-ferrous metals and one of the largest copper recyclers worldwide, has approved additional, comprehensive investments, with a focus on its Hamburg site. At its most recent meeting, the Supervisory Board endorsed two new projects at the North German plant for a total of € 330 million. These include around € 300 million earmarked for a new precious metals processing plant, the Precious Metals Refinery (PMR). Combined with current facilities, it will create a new, integrated high-security area for the processing of precious metals at the site. Aurubis is also allocating around € 30 million to further augment environmental protection, and announced the second stage and significant expansion of the Reducing Diffuse Emissions (RDE) system used in primary copper production.

    Aurubis investing in security for precious metals processing

    The new precious metals processing plant is slated to come online at the end of 2026. Precious Metals Hamburg comprises the entire precious metals processing chain in one closed security area. In addition to upgrading plant and precious metals security and occupational safety, Aurubis is raising the bar with the innovative process technology and systems engineering involved in the project. The newly developed metallurgical process leads to higher efficiency, which will considerably reduce throughput times for materials containing precious metals and lower operating costs by around 15 %. With this new plant, Aurubis is significantly expanding production capacity in precious metals and laying the groundwork for additional growth strategy projects.

    Doubling capacity: expanding the system to reduce diffuse emissions

    An € 85 million filter system in primary copper production has been reducing diffuse emissions at the Aurubis Hamburg site since 2021. The project involved closing roof openings on the building housing the primary smelter and connecting them to a new, high-performance filter system. The system suctions off and cleans diffuse emissions, or dust, then redirects residual quantities to the production cycle, and has already lowered the diffuse emissions discharged from primary copper production by 40 %. The new expansion stage will double the system’s efficiency to 80 %. This augmentation of the filter technology represents another significant drop in the fine particulate matter released, already below the threshold level today. Since 2000, the Aurubis Group has invested about € 830 million in environmental protection measures for copper production, achieving the highest sustainability standards in the industry.

    “By endorsing these comprehensive investment projects at its most recent meeting, the Supervisory Board affirmed its support for the Aurubis growth strategy and for strengthening our core business,” Aurubis CEO Roland Harings explained. “We are making an important contribution to sustainable, environmentally friendly, and innovative metal production with these projects.”

    We are making an important contribution to sustainable, environmentally friendly, and innovative metal production with these projects.

    Roland Harings

    Chief Executive Officer

    Implementing project pipeline lays the groundwork for a state-of-the-art smelter site in Hamburg

    These new projects combined with previously approved projects, some of which are already in progress, mean that Aurubis is currently investing a total of over € 750 million in its Hamburg plant. This includes four flagship investments:

    The first is the increased extraction of carbon-free industrial heat. In the future, the roughly € 100 million project could prevent up to an additional 100,000 t of CO2 per year, roughly five times more than the first stage.
    Second is the Complex Recycling Hamburg (CRH) project with an investment volume of € 190 million. It will give Aurubis the capacity to process around 30,000 additional t of recycling material and internal, complex smelter intermediary products on a larger scale starting in 2025.
    In spring 2024, Aurubis will take new anode furnaces online that can use hydrogen instead of natural gas in the reduction process in the future, a third key step in setting the stage for the transition to carbon neutrality. The around € 40 million investment could potentially prevent around 5,000 t of CO2 per year with the exclusive use of hydrogen.
    And fourth, the largest routine maintenance shutdown in the history of the Aurubis Hamburg plant is scheduled for the spring. Aurubis is investing around € 95 million in positioning its Hamburg smelter even more robustly for the future.

    “All these projects represent a powerful commitment to the Aurubis Hamburg site, which is central to the success of our smelter network. We’re investing a total of € 750 million in our core business, in recycling activities, and in environmental protection and plant security: The new processing area for precious metals takes security to a completely new level. We are acting quickly, decisively and with resolve – all the takeaways from the most recent criminal activities directed against Aurubis have been incorporated into the plant’s design. And by expanding our filter system for diffuse emissions, we are also intensifying our leading position as a sustainable multimetal producer,” Roland Harings explained.

    The Supervisory Board also approved an investment volume increase to € 740 million for the construction of the Aurubis Richmond plant in the US, to which leasing obligations will be added. Additional design and infrastructure requirements, adjustments for inflation, and increased complexity in implementation necessitated the expansion.

    Investing in decarbonization: Aurubis nearly doubles the largest in-house solar park in Bulgaria, adding an additional 18 MWp

    The company also confirmed plans to expand its solar park at the Aurubis plant in Bulgaria. With an investment volume of just under € 15 million, the company is almost doubling the output of the existing plant and the third stage currently under construction, adding 18 MWp (megawatt peak) for a total of almost 42 MWp. Once complete, the entire solar park will generate roughly 55,000 MWh of electricity per year, covering over 10 % of the Bulgarian plant’s needs. As such, the multimetal provider is upgrading what is already the largest in-house solar park in Southeast Europe today. Taken together, all stages of the solar park will generate enough electricity to power 15,000 four-person households, or the equivalent of a small city. Aurubis will be preventing around 28,000 t of CO2 emissions per year. The approved expansion stage is anticipated to go online in mid-2025.

  • UK left vulnerable by government inaction on critical minerals, MPs warn

    UK left vulnerable by government inaction on critical minerals, MPs warn

    The UK has been left “vulnerable” over its dependency on China for critical minerals needed to make key everyday items such as smartphones, British lawmakers said in a report on Friday.

    The Foreign Affairs Committee, a cross-party panel of parliamentarians, highlighted the fallout from the UK’s dependence on the world’s second biggest economy for rare metals such as lithium and cobalt.

    “The UK’s critical minerals supply chains are vulnerable due to our continuing dependence on autocracies – in particular China – and the inaction of successive UK governments,” the report concluded.

    Entitled “A rock and a hard place: building critical mineral resilience”, the study described critical minerals as possessing “strategic significance to the UK”.

    It added they were “essential” to the nation’s “economic security and to meeting… climate change targets”.

    The report follows the government’s launch last year of the UK’s first critical minerals strategy aimed at improving security of the key commodities

    The committee criticised “the government’s decision not to assess the vulnerabilities and dependencies in the UK’s industrial supply chains before producing” the strategy.

    It called on the Conservative government, led by Prime Minister Rishi Sunak, “to publish specific targets for priority sectors and to provide a more detailed implementation plan”.

    Committee chair Alicia Kearns, a lawmaker within Sunak’s party, noted that “from F35 fighter jets to the batteries in our phones, critical minerals are the building blocks of many modern technologies.

    “They are integral to every-day living, the green transition and our nation’s defence.”

    But she added that the UK needed “to confront the weakness created by our dependency on a single state: China. These minerals power modern life and if China pulls the plug, we will all pay the price”.

    Outside the UK, the European Union last month agreed a plan to secure its own supply of critical raw materials, as Brussels seeks to reduce its dependence on other countries, notably China.

    Brussels is particularly concerned about falling behind during the transition to cleaner technologies that rely on the critical minerals.

    China is widely seen as having already made great strides because of its access to raw materials, while the United States has poured billions into subsidies for green tech.

    Critical raw materials, including rare metal tungsten, are needed to make the most of the electrical products consumers use today.

  • EU sets critical mineral goals, but faces struggle to hit them

    EU sets critical mineral goals, but faces struggle to hit them

    The European Union (EU) has set targets to dig up, recycle and refine lithium, cobalt and other metals it needs for its green transition, but a shortage of new money, crippling energy costs and local opposition could put them beyond reach.

    The bloc will likely need to find ways to trim demand, find substitute materials and forge partnerships that break China’s stranglehold on mineral supplies.

    The Critical Raw Materials Act (CRMA), due to enter force in early 2024, says the bloc should mine 10%, recycle 25% and process 40% of its annual needs of 17 key raw materials by 2030.

    The materials are essential for vehicle batteries, wind turbine magnets and other clean tech products the EU wants to manufacture. The CRMA aims to reduce the bloc’s reliance on China, which dominates global mineral processing and has already threatened EU supply with export curbs.

    Studies forecast recycling will be limited until 2035-2040, when metals re-enter the market as scrap.

    Researchers from Belgian university KU Leuven concluded in a 2022 report that the period to 2030 will be the most challenging for metal supply, highlighting risks for copper, lithium, nickel, cobalt and rare earth elements.

    The CRMA aims to speed up granting of project permits, which for a mine should be within 27 months, from a potential 10 to 15 years now, but other obstacles remain.

    Eurometaux, Europe’s association for non-ferrous metals, says Europe has potential, but needs cheaper energy and EU financing, pointing to funds on offer in the US, Canada or Japan.

    The EU has loosened state aid rules and plans to spend €3-billion ($3.3-billion) to boost battery production, but the sums are dwarfed by the $369-billion of green subsidies in the US Inflation Reduction Act. A European Sovereignty Fund has been mooted, but since dropped.

    Industry groups say prioritisation of US over EU projects by the likes of Nyrstar in gallium and germanium recovery and Jervois Cobalt in mining and refining highlights the gap.

    Meanwhile, higher EU higher energy costs have forced widespread idling of electricity-intensive metal smelters – EU aluminium production fell 35% in 2022 and has dropped further this year.

    EU has plans to reform its electricity market, but this will take time to guarantee affordable renewable energy.

    In mining, repurposing some existing sites might yield critical raw materials that were considered to be waste, according to Lawrence Dechambenoit, global head of external affairs at Rio Tinto, the world’s second-largest mining company.

    But for lithium, he said, Europe urgently needed new mines.

    Eurometaux says identified projects could meet almost 40% of EU supply by 2030, but a number are uncertain.

    These include Portugal, which has delayed auctioning of mining licences for battery-grade lithium and is now mired in a corruption scandal and Serbia, which revoked licences in 2022 for Rio Tinto’s $2.4-billion lithium project.

    Nicola Beer, the German liberal who steered the CRMA through the European Parliament, is more confident on the three targets.

    “I get calls from countries asking what they can do, which I take as a positive sign,” she said.

    However, she also points to what she calls the “fourth leg of the chair” – innovation to minimise material use or find substitutes. As an example, she passes round a black disc made from wood that can serve as graphite in batteries.

    One effective move would be a shift to more modest electric vehicles with smaller batteries. Julia Poliscanova, a senior director at campaign group Transport & Environment, says this could cut lithium and nickel demand by a quarter.

    Niclas Poitiers, research fellow at Bruegel think-tank in Brussels, says Europe’s ultimate aim of being a clean tech leader may be better served sourcing minerals from reliable allies and concentrating on higher-end products such as batteries, rather than ‘on-shoring’ mineral production.

    “The base of our wealth is that we focus in manufacturing the most value-added parts and we outsource the things that are not high value-added. And this is something that is very difficult to change,” he said.

    The CRMA does stress a need to diversify imports.

    The European Union has indeed signed multiple partnerships from Argentina to Zambia and hopes its 300 billion euro Global Gateway infrastructure investment scheme will entice resource-rich countries keen to diversify their economies and also reduce their own dependence on China.

    “It’s a win-win proposition,” Poitiers said.

  • Glencore to publish updated climate transition plan in March

    Glencore to publish updated climate transition plan in March

    Diversified miner Glencore plans to publish an updated Climate Action Transition Plan, as well as to report on its progress against its industrial emission reduction targets and ambitions, in March.  The group on December 13 revealed that 30.25% of shareholders voted against the approval of the company’s 2022 Climate Report, while only 29.2% voted in favour of its next Climate Action Transition Plan, during the miner’s last annual general meeting (AGM) on May 26.

    The company has undertaken a review of its Climate Action Transition Plan, following the commitment made at the 2021 AGM. Glencore sought investors’ views on expected changes in the updated plan during the consultation period.

    “This process . . . has given us valuable insights into the evolution of shareholders’ views and voting approach on our progress and updated transition plan, representing a wide cross-section of shareholders who voted in different ways on these climate-related resolutions.

    “We have reflected carefully on the feedback received and will continue to engage with shareholders and other stakeholders, as well as monitor external developments. Insights from this engagement have been and will continue to be factored into our internal deliberations,” Glencore said.

    The company said its climate strategy was an important area of focus for its shareholders, and that there continued to be broad support for its climate strategy, which seeks to maintain resilience to the risks and opportunities of the evolving energy transition while maintaining focus on progressing towards the ambition of achieving a net-zero total industrial emissions footprint by 2050, assuming a supportive policy environment.

    Glencore said the principal areas of interest for its shareholders included a comparison of its targets and ambition to all relevant International Energy Agency scenarios, including net-zero scenarios; understanding progress on industrial emissions reduction between Glencore’s short-term target of 2026 and medium-term target of 2035; and integration of the recently announced acquisition of 77% of Teck’s Elk Valley Resources (EVR) steelmaking coal assets into the climate strategy.

    In response to the constructive recommendations received, Glencore said it would maintain its commitment to reducing its total industrial emissions footprint and report on progress against its targets and ambitions.

    Additionally, the company said it would update its assessment of the resilience of its portfolio and expand its analysis of its targets and ambitions against a range of climate policy scenarios.

    Glencore also said that it would address the climate-related aspects of the proposed acquisition of EVR.

  • Swiss-Canadian lithium project in Bosnia to supply Mercedes, despite community opposition and ESG risks

    Swiss-Canadian lithium project in Bosnia to supply Mercedes, despite community opposition and ESG risks

    Swiss mining company Arcor and Canadian company Rock Tech have signed a partnership agreement that will include the distribution of lithium from Lopare in Bosnia and Herzegovina, and according to their claims supply Mercedes. Despite fierce local opposition. 

    “Lithium carbonate will be mined in an environmentally and socially responsible way at Arkor’s mine in Lopare, Bosnia and Herzegovina, and then Roc Tech will convert it into lithium hydroxide ‘Made in Germany’,” they announced, Klix.ba reported.

    Rock Tech is also building its first facility in Germany to produce lithium hydroxide for the battery and automotive industries from 2026. Among other things, the company has already signed sales contracts with the Mercedes-Benz group.

    In an exploration phase that has been ongoing since 2018, Arkor has confirmed deposits of lithium carbonate as well as boron, potassium and magnesium sulfate in a mine near Lopare. As Nicolas Trend, head of the Board of Directors of Arcor points out, the site is unique in the world in terms of its size and geological structure.

    Estimates are that in the Lopare area there are deposits of 1,5 million tons of lithium carbonate equivalent, 14 million tons of boron, 35 million tons of potassium and 94 million tons of magnesium sulfate.

    Local municipality community and public are against any mining exploration so it remains to be seen how the Swiss and Canadian developers plan to overcome this situation with fierce opposition from local citizens and start further project activities. Also remains the question on how will Mercedes shareholders react on supplier ESG issues on project location. 

  • Boliden plans to restart Europe’s biggest zinc mine in second quarter of 2024

    Boliden plans to restart Europe’s biggest zinc mine in second quarter of 2024

    Boliden is planning to resume wage negotiations next month with around 650 employees at its Tara zinc operation in Ireland with a view to resuming output in the second quarter of 2024, the Swedish miner told Reuters.

    Boliden put its Tara operations on care and maintenance in June due to negative cash flows after prices of the galvanizing meta hit a three-year low on June 1 2023.

    A restart would boost supplies of the world’s fourth most used metal and potentially add to surpluses of refined zinc expected by analysts for next year.

    The Tara mine, which produced 198 000 t of zinc concentrates in 2022, is the largest in Europe.

    “We must address operational challenges at Tara Mines,” Boliden’s spokesman Klas Nilsson told Reuters in an email.

    Nilsson said Boliden will present the plan to the unions in January and seek to reach an agreement with them.

    “If we can reach an agreement by the first week in February, our ambition is to re-open the mine in the second quarter in 2024, assuming that there is no significant deterioration in market conditions.”

    Tara zinc concentrates are mainly used as feedstock for Boliden’s Odda zinc smelter in southern Norway, where the company is aiming to increase its production capacity to 350,000 tons in the second half of next year from 200 000 t, the spokesperson said.

    “We will commence production in the new facilities during the second half of 2024, we have however not communicated the pace of the ramp up and there will of course be a period of ramp up,” Nilsson said.

  • Europe is ‘miles behind’ in race for raw materials used in electric car batteries

    Europe is ‘miles behind’ in race for raw materials used in electric car batteries

    European carmakers have secured less than a sixth of the key raw materials they will need by 2030 to make electric vehicle batteries, according to analysis that highlights the expected scramble for green-tech resources.

    Carmakers have secured contracts for 16% of the lithium, cobalt and nickel required to hit their 2030 electric car sales targets, according to public disclosures analysed by Transport & Environment (T&E), a Brussels-based campaign group.

    The world’s two biggest electric carmakers, Tesla in the US and China’s BYD, were significantly further ahead of many of their European rivals in securing access to key raw materials, the researchers found.

    Batteries used in devices ranging from mobile phones to cars are made of precisely controlled combinations of metals. There is a global race to find enough lithium, the lightest metal, but cobalt and nickel are also important in many batteries.

    The analysis suggested carmakers had disclosed agreements that would cover only 14% of the lithium, 17% of the nickel and 10% of the cobalt needed to meet their targets for 2030. The EU and UK will ban the sale of new fossil fuel cars in 2035.

    Julia Poliscanova, the senior director for vehicles and emobility at T&E, said: “There is a clear disconnect between carmakers’ electric vehicle [EV] goals and their critical mineral strategies. Tesla and BYD are way ahead of most European players, who are only waking up to the challenge of securing battery metals now.”

    T&E said Mercedes-Benz, BMW and Hyundai/Kia were the carmakers with large European operations that were lagging furthest behind rivals. Ford, Volkswagen and Stellantis have disclosed plans for battery mineral supply that rival Tesla and BYD.

    Some of the carmakers may have secret deals with mining or refining companies to supply enough minerals, while some are looking at ways of reducing or eliminating the use of expensive cobalt and nickel. Nevertheless, the scale of the undersupply detailed in publicly disclosed contracts suggested carmakers would have to battle to hit their electric targets.

    The analysis tallies with forecasts from the data company Benchmark Mineral Intelligence that demand for some key materials will significantly outstrip supply in the coming decade.

    Benchmark predicts that lithium demand will quadruple by 2030 as China, Europe and then the US move rapidly away from petrol and diesel. However, its forecasts suggest there will be a lithium shortfall of 390,000 tonnes in 2030, compared with global production of 2.7m tonnes. It also predicts shortfalls of cobalt and nickel – part of what it describes as a “great raw materials disconnect” that could limit the pace of the transition away from petrol and diesel cars.

    Caspar Rawles, Benchmark’s chief data officer, said: “In the medium and even the long term, lithium is probably going to be the limiting factor on the rate that the battery industry can scale.”

    Big mining projects usuallytook at least five years to start producing material at scale, and as long as seven years if fundraising was required, Rawles said. That would mean investment decisions would need to be made in the next year or two to increase supply by 2030.

    Poliscanova said it was supply chain strategies that would “make or break the EV transition in Europe, and render some companies obsolete”. However, she added that European manufacturers were ahead of rivals from China and the US in “cleaning up supply chains”. Some mineral suppliers have previously been found to have used child labour, exploited low-paid workers or used environmentally damaging methods.

     

  • Mining Equipment Production and Outsourcing to Serbia: A Strategic Move for Global Mining Industry

    Mining Equipment Production and Outsourcing to Serbia: A Strategic Move for Global Mining Industry

    The mining industry relies heavily on efficient and reliable equipment to extract and process minerals. In recent years, Serbia has emerged as a promising destination for mining equipment production outsourcing. With its skilled workforce, cost-effective operations, and favorable business environment, Serbia has attracted international companies looking to optimize their supply chain and capitalize on the country’s potential. In this article, we will explore the reasons behind the growing trend of outsourcing mining equipment production to Serbia and analyze the mutual benefits for both companies and the Serbian economy.

    1. Skilled Workforce and Technical Expertise:

    Serbia boasts a skilled and adaptable workforce, particularly in engineering and technical fields. The country has a strong tradition of technical education, producing engineers and technicians well-equipped to work in the mining equipment production industry. This ready availability of qualified professionals allows international companies to access a pool of skilled labor, driving efficiency, and expertise in the production process. Collaborations between foreign companies and local talent contribute to knowledge transfer, skill development, and the growth of the Serbian mining equipment sector.

    2. Cost-Effective Manufacturing:

    One of the primary reasons for outsourcing mining equipment production to Serbia is the cost advantage it offers. Serbia provides a favorable cost structure compared to many western countries, including lower labor costs and competitive operating expenses. This cost-effective environment allows companies to optimize their production processes, reduce expenses, and maintain price competitiveness in the global mining equipment market. Furthermore, Serbia offers attractive tax incentives and investment opportunities, making it an appealing destination for international corporations.

    3. Strategic Location and Infrastructure:

    Serbia’s strategic location in Europe provides advantages in terms of logistics and distribution for mining equipment manufacturers. The country lies at the crossroads of key transportation routes, offering easy access to markets in Europe and neighboring regions. Serbia’s well-developed infrastructure, including road networks, rail connections, and access to seaports, facilitates efficient movement of equipment and components. This strategic positioning enables streamlined supply chain management, reduced transportation costs, and increased customer responsiveness.

    4. Supportive Business Environment:

    Serbia has made notable progress in establishing a business-friendly environment that attracts foreign direct investment. The government has implemented reforms to enhance the ease of doing business, resulting in improved regulatory frameworks and reduced bureaucratic obstacles. Additionally, streamlined administrative procedures, reliable utilities, and investor-friendly policies contribute to the overall favorable business climate for mining equipment producers outsourcing to Serbia. The country also collaborates with foreign entities, creating opportunities for technology transfer, joint ventures, and innovation.

    5. Economic Growth and Development Opportunities:

    By outsourcing mining equipment production to Serbia, international companies contribute to the economic growth and development of the country. Foreign investments in this sector result in job creation and reduction of unemployment rates. The transfer of technology and knowledge exchange between international corporations and local suppliers enhance the capabilities of the Serbian mining equipment industry. Moreover, the increased industrial activity stimulates demand for related support services, including maintenance, repairs, and spare parts, creating additional business opportunities.

    Conclusion:

    Outsourcing mining equipment production to Serbia presents significant advantages for international companies seeking to optimize their supply chain and maximize operational efficiency. The country’s skilled workforce, cost-effective operations, strategic location, supportive business environment, and growth opportunities make it an appealing destination for mining equipment manufacturing outsourcing. As foreign investments continue to flow into Serbia’s mining equipment sector, the country stands poised to develop a strong industrial base, foster technology transfer, create employment, and contribute to the global mining industry while driving economic growth and prosperity domestically.

    Prepared by www.serbiansteel.eu

  • Sustainable raw materials for green technologies

    Sustainable raw materials for green technologies

    Euromines President invited European Institutions and Automotive sector to jointly assess the realities of supply of raw materials to European manufacturers. His two statements summarize the past decade approach to raw materials in the EU: “For years Europe was far too complacent in outsourcing pollution – and receiving raw materials for our consumption in return” – and yet “Nowhere else mining is happening at such a high level of environmental protection as in Europe”.

    From the rare earth crisis in the beginning of the 2000s, to the magnesium, gallium and germanium graphite crunch today – the intervals demonstrating European vulnerabilities are becoming shorter. The resulting dependency creates pressure on political leadership in the EU. European Institutions seem to have acknowledged this threat to competitiveness of the European industry. After all, the same materials are critical to achieving Green Deal made in Europe with or values, industry and society. Only by including all these aspects the green transformation can be a successful role model to copy for other countries.

    In 1957, European leaders had the incredible foresight to make war economically impossible and eventually unthinkable. At the heart of it: integrating the production of raw materials across borders of countries, obliging them to work together. Across various economic crises, Europe calibrated a systemic prosperity and comfort by trading, finding allies and ensuring access to energy and non-energy commodities.

    Today EU faces yet another challenge: climate change and the required energy, consumption and production transition, shift the rules of the game to a new level of fierce competition. War has returned to Europe, and it is not a given that allies and rivals alike step in for what Europe decided to outsource. Such increasing exposure is a serious to our prosperity and innovation power to find answers to the gargantuan task of tackling climate change.

    ESG and geopolitical imperatives while maintaining prosperity will depend on a commodity transition: metals and minerals will fuel the planet. The demand increase for metals needed for goods such as e-vehicles and the infrastructure to make this work will be enormous – we cannot even fathom it. This requires bold steps in how we treat and use raw materials: not just specific in form of applications or technologies but systemic across value chains. After all, the sustainability impact of driving an e-vehicle depends on the sustainability performance of the raw materials it is made of.

    European mining emerges as a strategic linchpin for autonomy in green, digital, and defence sectors. It can provide the raw materials needed to make a wind turbine run and a battery to store this electricity, but also serve as a benchmark for ESG standards for imported materials.

    Europe is not alone.

    The EU’s Green Deal is not the only sustainability transition policy – the race for raw materials will intensify even more, scrambling to get access to the most promising deposits. Control over extraction rights and refining capacity will be the defining geopolitical challenge for the decades to come. Europe needs to reckon with this on three accounts:

    Utilize Europe’s Resources: Europe must tap into its promising deposits for critical and strategic materials, utilizing the knowledge and expertise of EU mining companies with minimal environmental impact.

    Build Sustainable Partnerships: Outsourcing to areas with lower regulatory requirements is not an option. Europe must engage in partnerships with allies willing to uphold high standards in environmental, social, and governance issues.

    Circular Economy Integration: Beyond recycling, integrating mining into the Circular Economy concept can minimize primary raw material extraction for other sectors.
    Redefining Raw Material Approaches.

    Raw materials should no longer be considered merely a procurement issue. Confirming this disparity in approaches is the fact that for many sectors, supply of raw materials is sixth or seventh tier on their demand list. Yet, without securing the premium for the ESG criteria in sourcing them, the rift between downstream manufacturing and upstream mining companies will continue to render supply chains fragile, prone to disruptions and impede sustainability and human rights standards.

    Extraction, refining, and manufacturing need to compete on more than “just-in-time” and cheapest prices. This behaviour change is a catalyst to do more in a sustainable way and be honest in how we source and procure raw materials to fulfil our own sustainability ambitions.

    Sustainability is not an externality.

    Internalizing high production standards in upstream and security of supply externalities in downstream industries must go hand in hand to recognize costs and benefits of a sustainable raw materials extraction. Mining as the base of many Green Deal objectives – if done right – decarbonizes entire value chains. LKAB’s pellets are 7 times less CO2-intensive than sinter production and key for decarbonized steel production. Boliden’s Aitik and Kevitsa mines are prime examples of mine electrification -providing low-carbon copper and zinc that are needed for electrification through increased deployment of fossil free electricity.

    The EU raw materials mining industry has all the elements ready – from deposits, environmentally friendly extraction processes to a world-class R&D ambition to further reduce the impact of mining and providing critical and strategic raw materials. To make this happen Europe must act now! The Critical Raw Materials Act is a paradigm shift politically recognizing the benefits of our own backyard. The momentum initiated with the CRM Act must not be slowed down. There is a lot to do if we are serious about our role in the global green transition – starting with the production of our daily-life consumption.

     

  • Norway parliament deal marks major step towards seabed mining

    Norway parliament deal marks major step towards seabed mining

    Norway’s minority government and two opposition parties have agreed to allow seabed mineral exploration in the Arctic region, they said on Tuesday, in a key step towards full-scale ocean mining.

    The deal comes as Norway hopes to become the first country to make deep-sea mining happen on a commercial scale and secure critical minerals and jobs despite concerns over the environmental impact and international calls for a moratorium.

    The amended version of the government’s proposal, which parliament will formally debate on Jan. 4 followed by a vote, sets stricter environmental survey requirements during the exploration phase than originally planned.

    The compromise also gives parliament the final say at a later date on whether to approve full-scale mining based on data gathered from the deep-sea environment during the initial exploration.

    The deal was agreed between the two parties in the minority government – Labour and the Centre Party – and the opposition Conservatives and the Progress Party, securing a comfortable majority.

    Baard Ludvig Thorheim, a member of parliament for the Conservatives, told Reuters the environmental bar for seabed mining had been set fairly high in the amended proposal.

    “We believe, and hope, it will become the international standard for this activity,” he said. “At the same time it is important that it is a framework that is predictable for commercial players, on which we rely on for these activities.”

    He said the parties had hotly debated how to balance the need for environmental requirements against commercial viability for companies seeking to start marine mining.

    “If the demands are too steep and too complicated, there won’t be any interest, but at the same time it is also in these companies’ interest to partake in an activity that has a good reputation and adheres to demands on sustainability,” he said.

    Seabed mining start-up Loke Marine Minerals, which is backed by investors such as oil service company Technip FMC and Norwegian maritime group Wilhelmsen, welcomed the decision.

    “Great day not only for Norway but for the world,” Loke CEO Walter Sognnes Norway told Reuters. “We need to have a fact- based evaluation of deep sea minerals as a provider of critical minerals for the green energy transition.”

    Environmental group WWF, however, said the decision to move forward damaged Norway’s reputation for ocean preservation but added it hoped parliament would eventually block any move to full-scale mining.