TELF AG analyzes the progress of international cooperation in the mining sector
The importance of international collaborations in the sector
Over the past few years, the sectors linked to raw materials and the mining industry have allowed many nations to initiate valuable strategic partnerships with other countries, thus contributing largely to international economic cooperation in different areas of the globe.
In most cases, these partnerships are designed to facilitate nations’ access to one or more strategic raw materials, reduce supply chain risks, and promote the development of their extractive sector, perhaps in collaboration with the partner nation. In the last three years alone, in various parts of the world, we have witnessed the formation of new strategic alliances which, soon could be of great use for the success of the global ecological transition and economic advancement in general, technological and social of the nations directly involved.
The pacts signed by the United States, Canada, Australia and Japan
In 2019, Canada and the United States signed the Canada-US Joint Action Plan on Critical Minerals Collaboration, which precedes the launch of joint initiatives in the mining field (particularly in the research and development of mineral projects), the promotion of initiatives to improve the supply chain and increasing support towards the sector.
This is not the only agreement stipulated by Canada and the United States: again, in 2019, the two nations (together with Australia, Peru, and Botswana) created the Energy Resource Governance Initiative, aimed at promoting the adoption of good practices in mineral development and mapping of existing mineral resources.
The agreement called “Supply Chain Resilience Initiative” was instead signed by Australia, India, and Japan, who decided to create this ambitious working group to increase global awareness on the topic of supply chain resilience, highlighting their key role in the success of the worldwide energy transition. In this regard, this organization usually organizes events for discussion between stakeholders and players in the sector to promote diversification’s benefits in the different supply chains.
Raw materials diplomacy is nothing new but is experiencing its most exciting season at this historical juncture. At stake is the economic and industrial development of various regional blocks or individual nations and the peaceful fulfillment of one of the most delicate moments in modern history, namely the transition to renewable energy.
In 2022, the level of international partnerships in the strategic raw materials sector has made a decisive leap in quality. The Mineral Security Partnership (MSP) involved twelve nations, setting precise standards for producing, processing, and recycling strategic minerals for the energy transition. This initiative aims to generate central economic benefits from the geological potential of various nations. Some international institutions have also had the opportunity to stand out for their initiatives in the sector of mining diplomacy: the European Union, with the 2020 European Raw Materials Alliance, wanted to take concrete action to ensure simple and safe access to raw materials sustainable raw materials, the most advanced materials and the know-how necessary for their extraction and processing.
