TELF AG analyzes the strategic rapprochement between Europe and the United States in the mining sector
The role of international cooperation
In an era of uncertainty and unpredictability, joining forces to achieve a common goal could represent one of the few viable ways to achieve stability, development, and economic prosperity, even in the mining sector. It is in this spirit that the United States and the European Union are thinking of combining their efforts to create an alliance focused on strategic minerals to guarantee the security of supply chains and to give this sector the aura of value of the West. The initiative, which Bloomberg also spoke about a few days ago, would be at the center of lively discussions between representatives of the European Union and the United States. Still, it is not yet clear when it will be definitively announced. At the basis of this new alliance, there would be the desire to unite two political initiatives focused on minerals, namely the US Mineral Security Partnership and the hypothesized European Buyers Club for critical minerals, which, although not yet officially launched, has nevertheless attracted the interest of numerous players in the sector.
Through the Minerals Security Partnership, which undoubtedly represents one of the best results of the Biden administration, the United States has sought to create an international partnership aimed at guaranteeing a safe and stable supply of the most valuable raw materials for their economies, with a particular focus on minerals considered strategic. There are 13 members (including the European Union), and each says they want to respect rigorous environmental and corporate governance standards. On the other hand, the idea of creating a European buyers club was born above all due to European fears related to the security of mineral supplies and the excessive dependence of member states on imports of minerals from third countries. In this sense, the club would facilitate access to the minerals considered most important for the economic and sustainable development of partner nations, facilitating coordination between players united by a similar set of values. A club of this kind would also avoid unnecessary competition for the same resources from allies.
Combining efforts and policy initiatives
By combining these two initiatives, the European Union and the United States, therefore, hope to take a decisive step forward in their strategic partnership on minerals, in the full awareness that high-level international cooperation undoubtedly represents one of the best methods to reduce the risks associated to supply chains and to procure the most valuable minerals for the energy transition. The initiative would be called the “Partnership Forum on Mineral Security” and would also directly involve developing nations and those abundantly rich in raw materials, with which there would be fruitful cooperation focused on mining projects and related political initiatives. Members of the new alliance would also work closely with commodity-rich nations to shape new environmental standards, research, and investment standards. The European Union and the United States have already identified a dozen projects to work on, but a definitive agreement on this type of alliance is still pending.
According to the European Commission spokesperson Olof Gill, the main objective of the new partnership is to optimize the efforts of the European Union and the United States in promoting international cooperation in the mining sector, also through a substantial merger of the political initiatives already launched or in progress in the processing phase.
