The future of raw materials and the primary sector in the age of climate change
No more than 65% of the EU’s annual consumption from a third country is emphasized in the EU CRM Act, the European law on critical raw materials, which together with the EU’s “Net Zero Industry Act” will contribute, as the European Commission, “in strengthening European capacity for net-zero technologies and overcoming barriers to scaling up capacity in Europe”.
The EU CRM Act and the Net Zero Industry Act are part of the pillar of the EU’s Green Deal Industrial Plan, for “a secure and sustainable supply of critical raw materials, while enabling Europe to meet its 2030 climate and digital goals”.
The EU CRM Act sets as conditions for the differentiation of EU procurement the following:
· At least 10% of the EU’s annual consumption for mining.
· At least 40% of the EU’s annual consumption for manufacturing.
· At least 15% of the EU’s annual consumption for recycling.
Action plan of the Ministry of Foreign Affairs
The future of raw materials and the primary sector in the age of climate change was discussed at the 9th Delphi Economic Forum (Delphi Economic ForumIX) – We summarize:
For the next period, we have on our agenda specific steps for the raw materials sector, according to the action plan of the Ministry of Environment, Energy for 2024 and the EU CRM Act, explained Deputy Minister Alexandra Sdoukou:
· First, streamlining of regulatory rules. The Greek Mining Code, despite its relatively satisfactory implementation over the years, needs updating. It counts 50 years of life. The ministry has started working on its modernization.
· Second, shortening the licensing times of mining projects. With the implementation of the CRM Act, all licensing procedures should be completed in approximately two years.
· Thirdly, evaluation of the conditions and rules of mining activity within NATURA 2000 areas, applying the strictest EU rules. I want to be clear here. The mining process must not be developed at the expense of the environment. At the same time, however, a large range of mineral resources is tied up within these areas, with no prospect of exploitation, and indeed in critical minerals such as bauxite.
· Fourth, extensive research is needed to identify and exploit new and particularly critical WMD deposits. Already for this year, we have committed 15 million euros to finance EAGME’s research on critical raw materials.
The Deputy Minister PEN emphasized that “the mining industry is a fundamental sector for the economy and a factor that can make a difference in the green transition and sustainable development. With some world-class reserves, such as bauxite or copper, with a significant advantage in logistics due to our geography, with extroversion and implementation of our Minerals policy, we can do much better.”
Untapped wealth
In Northern Greece, it is estimated that there is a very important untapped mineral wealth, while 10% of its critical raw materials are found in the country’s territory, Christos Balaskas, Vice President, Commercial, Growth & External Relations Greece, Eldorado Gold Corporation, Greece, reminded the Forum : “Greece was late but yes, both our country and Europe as a whole have understood the importance of critical and strategic raw materials. And that is why moves are being made, such as the European Act on Critical Raw Materials, which aim to reduce excessive dependence on third countries. The Greek mining industry can mobilize investments of more than half a billion, with the long-term goal of increasing its contribution to the country’s GDP from the current 3%, despite the geostrategic and energy challenges. Due to the critical technologies required to decarbonize, the demand for critical raw materials is projected to increase dramatically.”
Circular economy
The members of the Association of Mining Companies (SME) “adopted the principles of sustainable development as early as 2006”. The circular economy is already present in the sector, the president of IMERYS GREECE, Athanasios Kefalas, said at the Forum, clarifying, not because it is a “fashion” but because “this is what we need” applying, among other things:
· “Utilization of ‘secondary deposits’, such as the planned recovery of the rare earths scandium and germanium from the by-products of Greek alumina-aluminum metallurgy. In addition to the large amounts of metals needed to support the transition to the Green Energy Age, a number of other minerals are critical to this transition, although this is not as well known. For example, quartz, which is used in the production of photovoltaic cells and chips, and graphite, which is used in electric mobility batteries.”
The president of IMERYS GREECE also spoke about the energy needs of the mining sector, saying: “Having to face a significant increase in costs and therefore a decrease in competitiveness, the support of the European and domestic mining and metallurgical value chain is required, ensuring adequate and acceptable energy costs ».
Inert materials
“Aggregate materials are inextricably linked to the building materials, cement and concrete and construction industry, so we have to see it through the prism of its effects on the Greek economy”, emphasized Dimitris Lianos, Plant Manager at Heidelberg Materials Hellas SA: “Without inert materials there would be no infrastructure, such as highways, ports, buildings, etc.”
Europe needs 3 billion tons of aggregates per year, making it the most used natural resource after water and air, pointed out the president of the Pan-European Aggregates Association (UEPG) Antonis Latouros, asking the question: “The crucial thing is not whether we need aggregates, but more how to source them sustainably and responsibly. Recycling, although necessary, currently covers only 12% of total demand.”
Access problems
The executive president of the Association of Greek Industries, Efthimios Vidalis, argued that “the classification of Critical and non-Critical, which includes priorities, is deceptive. The EU imports 250 million MT per year of non-critical raw materials. A holistic approach to all raw materials is required, the question is a broader long-term perspective.”
High imports
“Europe is at a critical juncture, which will define the green and digital transition”, emphasized the honorary president of the European Association of Mining Enterprises (EUROMINES) Mark Rachovidis: “If we continue to ‘export’ pollution and import raw materials such as today, then our Green Transition cannot prosper. Abandoning European mining for high imports entrenches lower ESG (Environmental, Social and Corporate Governance) compliance in an investment, reduced strategic autonomy and reduced resilience. A vision that includes 20-30 new strategic mining projects in Europe by 2030 will enable a sustainable, responsible and prosperous mining industry aligned with European values.”
Geopolitical advantage
“Unfortunately, the European institutional framework makes mining activity uncompetitive. The European Union must face the matter with seriousness and determination”, said the president of the Association of Mining Enterprises Constantinos Yazitzoglou at the Delphi Economic Forum:
“Greece has significant deposits of raw materials that are currently classified as non-critical, such as industrial minerals and marble. The intense export activity of these branches can certainly be a geopolitical advantage for our country. It is a constant demand of the primary and secondary sector in the EU, to be treated equally with its non-European competitors. The Carbon Border Adjustment Mechanism is a minimal step in this direction. For the mining industry, its implementation will certainly be a step towards improving our competitiveness.”
by Fili Kaitatzis
It was published in Paraskinio newspaper
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