TELF AG examines the role of strategic partnerships in the mining sector
The strategic role of multilateral cooperation
Many reports and authoritative studies have already had the opportunity to underline the importance of cooperation in the raw materials sector, arguing above all that high levels of regional collaboration, over the next few years, could solve most of the problems experienced by some developing economies in the approach to this important global industry. By broadening the issue to an international level and including possible strategic collaborations between nations located in different parts of the world, it will become much easier to understand how this cooperation could have a key role not only in accelerating the energy transition but also in achieving the climate neutrality and decarbonization objectives set by international institutions.
Many nations already seem to be fully aware of the enormous potential contained in this type of cooperation, which can prove very useful both at a purely local and national level, with the improvement of the economic vitality of the nation, giving at the same time a significant boost to the sustainable development of the planet. A concrete example of this new trend towards international cooperation in the strategic raw materials sector is undoubtedly represented by the idea developed by the G7 members of creating a sort of buyers’ club for strategic resources.
This group (not yet formally established) would aim to facilitate member countries’ access to the most valuable raw materials for the energy transition, thus avoiding the triggering of international auctions between the same nations belonging to the club. This idea was recently discussed in Japan during a meeting of the G7 members focused on climate, in which the partner nations’ energy and environment ministers participated. On that occasion, the conference culminated with the development of a programmatic document called “Five-Point Plan for Critical Minerals Security.” The five points were represented by forecasting the demand and supply of strategic minerals in the long term, developing supply chains responsibly, focusing on recycling and sharing capabilities, promoting innovation in replacement technologies, and preparing for possible supply disruptions.
The initiatives undertaken by China and the European Union
China has also stood out for some very important initiatives in international cooperation in the mining sector. Over the last few years, China has made several alliances with African nations, giving rise to truly promising results. For example, the collaboration between the sub-Saharan African region and China has generated an exchange focused on metals and minerals that is proving mutually beneficial.
The European Union has also shown a keen interest in international cooperation in this sector: from 2011 onwards, when it adopted the Raw Materials Strategy, community institutions began to promote the formation of various strategic alliances and to organize multilateral meetings focused on most discussed topics in the strategic minerals industry, even with non-European countries. Among the latter are Japan, the United States, China, Brazil, and Mexico, each of which have stipulated specific political agreements focused on raw materials.
The value of global cooperation in this sector ultimately lies in its ability to enhance the equitable and sustainable development of mining industries. This allows countries to procure strategic resources with an inclusive and mutually beneficial approach.
