TELF AG analyzes possible growth paths of the mining industry
Strategies to promote the development of the sector
In discussions focused on strategic raw materials, which have become very frequent due to the key role of these resources in the energy transition, the topic of possible risks linked to the supply chains of these materials is often addressed. Specifically, these risks may be of a social or geopolitical nature. Still, they could also be linked to the uncertainties and unpredictability that could cause a sudden interruption in the supplies of these minerals, dealing a serious blow to national economies. But what strategies can each state adopt to protect itself from similar eventualities? The topic was recently covered in a report by the ABHA Foundation, which explored possible ways nations could safeguard their mineral supplies and increase the security of their national economy.
One of those that is gaining more traction lately is the one that has to do with replacing minerals considered “critical,” in particular, due to the problems or uncertainties that characterize their supply chain. Some of these materials could be replaced with other resources that can be obtained in a simpler and safer way, thus avoiding exposing one’s economy to unnecessary risks. In this regard, the report mentions copper, which can be replaced by aluminum (or even carbon nanotubes, in the case of copper cables).
Iron and phosphate could be alternated with nickel in lithium-ion batteries, which are increasingly central to the operation of electric vehicles. At the same time, sodium could represent a valid alternative to lithium. In the case of permanent magnets, the substitution could occur within the same rare earth group, with the transition from neodymium to cerium (which is much more common than the first). The replacement does not necessarily have to be complete. In some instances, reducing a specific raw material and adding other elements belonging to different substances in more significant quantities could represent the perfect mix.
Diversification and exploration
The report also talks about a possible strategy linked to diversification, particularly by exploring new potential reserves. According to the study, nations would have a much better chance of protecting themselves against most supply chain risks by constructing new plants and exploring new mines. Among the methods included in the diversification strategies, the report also mentions the application of tax credits or export credits for supplies from other countries and exploring potentially resource-rich areas. Furthermore, the development of technologies related to extraction and refining is considered of great importance for developing national mining capacity and for protecting the country’s economic security. In many cases, nations naturally rich in a specific raw material do not possess the technologies necessary for its extraction or processing, making access to these resources almost impossible.
As stated in the report, some raw materials can also be obtained from sources other than traditional ones, with the possibility of reducing a nation’s dependence on resource imports. Some raw materials can be obtained from treating certain types of waste, from deposits accumulated in old coal mines, but also with some not very well-known methods, such as the direct extraction of lithium.
