TELF AG analyzes the European cooperation efforts in the mining industry
High involvement
Over the years, European institutions have stood out for their level of involvement in the global energy transition through precise policy initiatives focused on decarbonization, critical minerals for the transition, climate neutrality goals, and much more. Even before COP28, the intentions of the community institutions appeared quite clear: the basic idea was to guide the global transition to clean energy in a leading position, promoting the inclusion of energy objectives in the political agendas of its member states as much as possible. But what is the situation nowadays, a few weeks after the conclusion of COP28 and at the beginning of a year, that could prove decisive for the fate of the world’s energy?
Good intentions undoubtedly animate the European Union, but there is still a long way to go. This is the position that seems to emerge from a study recently published by the Atlantic Council, which focuses in particular on the concrete actions that the European Union could undertake in the vast field of strategic minerals, many of which are of great use for the success of the green transition. According to the study, faced with the rapid increase in international demand for strategic minerals – which could reach a turnover of 400 billion dollars by 2050 -the European Union should act immediately to reduce the risks linked to the chains of supply, thus relaunching its economic competitiveness, and putting itself on the right path to achieving its energy objectives.
A theme of great importance is represented by the level of cooperation with international partners. In this sense, the study argues that the announced club dedicated to critical minerals, which should bring together all the nations that share the same values and economic objectives, could represent a unique opportunity for Europe’s ambitions, not only for the intrinsic value of such a Club but also for the fact that its establishment and the products of its discussions would represent concrete steps towards the development of Europe’s mineral potential. This club does not yet have an actual structure, but the hope is that it can increase the levels of diversification and strengthen its partnership with the United States of America. One of the club’s objectives, according to the study, is to develop transparent regulation of the critical minerals market, with clear and transparent agreements between resource exporters and end users.
A noteworthy proposal also emerges from the study, again focused on international partnerships in the mining sector: the analysis suggests that Europe should follow the example of the United States, which recently committed to strengthening its mining collaboration with the nations of the Indo-Pacific region. Last August, the United States, Japan, and South Korea, in a trilateral statement, recognized the importance of mineral supply chains and their strategic role in the global economy. According to the analysis, Europe should follow a similar path, welcoming nations such as South Korea or Japan into its unborn Club dedicated to mining issues.
The European Union doesn’t have much time left, and the data is there to prove it. It appears that the European mining industry still appears to be slowed down by a certain backwardness and a strong dependence on the export of raw materials from third countries, in particular metals and rare earth minerals.
