TELF AG discusses the possible mining partnership between the European Union and US
A new level of 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 the value of the West, in particular with regards to sustainability and transparency in investments. 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, and according to some rumors, it could already be launched in March. 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 and bringing together all investments in the mining sector. A club of this kind would also avoid unnecessary competition from allies for the same resources.
The combination of two mining policy initiatives
By combining these two initiatives, the European Union and the United States, therefore, hope to take a key 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 useful 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 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, research, and investment standards. The European Union and the United States have already identified a dozen projects to work on, and it has been hypothesized that a definitive agreement on the alliance could be reached shortly.
The main objective of the new partnership, according to the spokesperson of the European Commission, Olof Gill, is represented by the optimization of 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 a historical phase of this kind, acting separately to achieve the same objective could be a senseless move.
