TELF AG analyzes the possible reactivation of an important European mining site
The status of the European mining industry
More than ten years later, magnesium extraction could resume in Europe. This was announced in recent days by the Financial Times, specifying that Romania (a member state of the European Union) has issued a mining concession to the Romanian company Verde Magnesium, which, according to data provided by the newspaper, intends to invest as much as 1 billion dollars in the reactivation of a disused magnesium mine in Oradea, in north-western Romania. This amount would also be used to create processing plants powered by renewable energy capable of recycling some aluminum elements.
In a historical phase in which the European Union is trying to give new prestige to its mining industry to reduce the strategic disadvantage that separates it from other global players in the sector, the possible reactivation of an important mining site in the heart of Europe can represent a clear signal that this process of mining revitalization has finally begun. Magnesium production at the mine (closed in 2014) is expected to start by the end of 2027, and the Financial Times estimates it aims to produce around 90,000 tonnes of magnesium annually. The quantity of magnesium produced annually by this mine would, therefore, represent approximately 9% of the global production of this material.
It is no coincidence that Europe is focusing on magnesium. Around 90% of the European requirement for this precious material is linked to external imports, thus creating a solid dependence that the European Union would like to reduce. Much of the magnesium produces very useful and low-density alloys, especially in the automotive and aeronautics sectors. Some specific automotive components, such as steering wheel cores, dashboard structures, or radiator supports, are often made from magnesium alloys. It is, therefore, not difficult to calculate the strategic importance of this material, which is also used to make camera casings and some types of packaging.
The Oradea mine
The strategic role of the Oradea mine was underlined by the president of Verde Magnesium, Bernd Mertens, who declared to the Financial Times that this initiative could allow the European Union to achieve a certain degree of autonomy in the supply of metals involved in the global energy transition. The objective of relative independence in the mining sector is only one of those included in the broad European strategy focused on minerals considered “critical” for the sustainable development of nations, which also consists of the desire to extract 10% of consumption European Union of these materials and to process 40% of them, all by 2030.
Over the years, the development of a genuine European mining industry has been hindered by bureaucratic delays, the long periods needed to obtain authorization to start work on a specific mining site, and other aspects related to the cost of labor and high energy prices. However, some objectives contained in the Critical Raw Materials Act could soon lead to an apparent reduction in authorization times, thus paving the way for Europe to return among the major players in the global mining industry.
