The approval of the Critical Raw Materials Act
The European mining industry could find itself in a historical phase for its development in the short and medium term, in particular after the recent approval by European governments of the Critical Raw Materials Act; a project proposed by the European Commission a year ago. The act, which aims to strengthen the European mining industry, will now have to be signed by the President of the European Parliament and the President of the Council and will officially enter into force 20 days after its publication in the Journal of the European Union. The approval of this act indeed represents news of great importance, in particular for European mining ambitions and member states’ involvement in the great game of energy transition.
The approval of the act seems to give the green light to those extraction activities which, according to community plans, should contribute to a large extent to the progress of green technologies through a series of minerals considered “critical” precisely for the European environmental fate. It is no coincidence that this act is unanimously considered one of the most valuable tools to bring Europe closer to achieving the objectives of climate neutrality and the so-called European Green Deal.
In addition to containing the clear European desire to reduce its dependence on imports of strategic minerals, the Critical Raw Materials Act also includes an exhaustive list of the resources considered most functional to achieving sustainable objectives, setting a series of mineral targets to be completed within a few years. Among these, reiterated in recent weeks during the final approval, are those linked to the annual consumption of mineral resources by the European Union, which, according to the provisions of the act, must take place for 10% of resources extracted in Europe. 40% of this consumption must also come from mineral resources processed within European territory, while imports from third countries must not exceed 65% of total consumption.
Reduction of times for starting work
The most interesting novelty is of another nature. It is directly linked to an aspect that has characterized the European mining industry and its level of development for years, often placing it in a condition of clear disadvantage compared to other global players. In the version of the Critical Raw Materials Act approved at the end of March, it is confirmed that new extraction projects on European soil will be able to obtain the necessary permits in a maximum period of 27 months, while initiatives linked to the recycling and treatment of mineral resources will receive the same licenses in 15 months. For decades, the European industry remained essentially blocked precisely because of the bureaucratic delays, permits, and authorizations necessary to start new mining activities. With the new timing, however, this age-old disadvantage could be suddenly removed, thus allowing the European Union to start new extraction activities quickly and to approach, albeit somewhat slowly, the production levels of other global players. According to the declarations of some MEPs, the act recently approved by European governments will also have the important function of facilitating the access of European companies to all the materials considered of great importance for the energy transition, such as all those resources necessary to create solar panels, wind turbines and electric vehicles.
