Challenges and trends of the metal mining industry in Europe Corina Hebestreit 1
Membership: EU 28 Austria Bulgaria Czech Rep. Finland France Germany Greece Ireland Netherlands Poland Romania Slovakia Spain Sweden Turkey UK Percentage of different materials in Euromines (EU 25 +3) construction minerals 2% dimension stones 11% industrial minerals 27% coal 15% metals 27% 2
Additional information: www.euromines.org 3
Minerals: how much do we use? A CAR contains up to 1-15 kg of minerals in rubber (talc, calcium carbonate), plastics (talc, calcium carbonate, kaolin, wollastonite), glass, casting (bentonite, silica, wollastonite) and 1 tonne of metals 5% of PAINT is made of minerals calcium carbonate, sand, plastic clay, talc, bentonite, diatomite, mica GLASS contains up to 1% minerals silica, feldspar, borate Up to 5% of a sheet of PAPER is made from minerals calcium carbonate, talc, kaolin, bentonite CERAMICS contain up to 1% minerals feldspar, clay & kaolin, talc, sand A family HOUSE contains up to 15 tonnes of minerals Cement (clay, calcium carbonate, gypsum), plaster & plasterboard (gypsum), glass, paint, ceramics, tiles, etc. and tonnes of 4 metals
Prices of oil Brent on world market USD/barel 9 8 7 6 5 4 3 2 1 I/ X/ VII/1 IV/2 I/3 X/3 VII/4 IV/5 I/6 X/6 5
Prices of copper on world market USD/t 1 9 8 7 6 5 4 3 2 1 I/ I/1 I/2 I/3 I/4 I/5 I/6 I/76
Prices of nickel on world market USD/t 45 4 35 3 25 2 15 1 5 I/ I/1 I/2 I/3 I/4 I/5 I/6 I/7 7
Prices of lead on world market USD/t 2 18 16 14 12 1 8 6 4 2 I/ I/1 I/2 I/3 I/4 I/5 I/6 I/7 8
Prices of zinc on world market USD/t 5 4 5 4 3 5 3 2 5 2 1 5 1 5 I/ I/1 I/2 I/3 I/4 I/5 I/6 I/7 9
1 Comparison of world prices 13, 1 64 4259 1725 1338 621 6,34 6,3 9 1.1. 26 6,39 427 127 156 152 5 328 5,76 4,3 7 1.1. 25 5,97 417 18 74 1665 2321 6,19 3,1 7 1.1. 24 4,67 343 75 422 71 153 6 4,79 28,7 1.1. 23 233% 13,93 4,52 $/ozt silver 16% 668 276 $/ozt gold 32% 345 768 $/tonne zinc 213% 1575 54 $/tonne steel 228% 379 568 $/tonne nickel 225% 5225 1462 $/tonne copper 128% 7,91 2,55 $/MMBtu natural gas 194% 58,64 19,9 $/barrel oil Brent 27/ 24 11.2. 27 1.1. 22 unit commodity
GLOBAL EXPLORATION 27 Billion USD 9 8 7 6 5 4 3 2 1 1995 1997 1999 21 23 25 27 Projected Sources: RMG, MEG. 11
GLOBAL EXPLORATION For many resources Europe has still much to offer, but investment in exploration and new technologies are lagging behind. Source: RMG, MEG. 12
New mining investments announced globally Source: Raw Materials Data, Stockholm, Sweden January 27. 13
Mine investments by region 26 Source: Raw Materials Data, Stockholm, Sweden January 27. 14
Major Exploration and Mining Projects in Europe 15
EXPLORATION IN THE NORDIC COUNTRIES MEUR 14 12 Projected 1 8 6 4 Sweden Norway Greenland Finland 2 1999 2 21 22 23 24 25 26 27 Sources: RMG est., Geological Surveys in each country, 26. 16
Chinese demand as % of global demand 45% 4% 35% 3% 25% 2% 15% 1% 5% % Aluminium Alumina Copper Nickel Zinc Iron Ore Finished steel Stainless Steel Platinum 2 21 22 23 24 25E Source for charts: IISI, WBMS, AME, Brook Hunt, Johnson Matthey, CRU 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Chinese consumption growth as a % of world growth 23-25 Aluminium Copper Zinc Nickel Iron Ore Finished Steel 17
Net trade in non-energy minerals 1999-24 2,, -2, Billion -4, -6, 1999 2 21 22 23 24-8, -1, -12, Year Industrial minerals Other industrial minerals Aggregates Metallic minerals 18
7% of European manufacturing industry depends on extracted substances 35% 5% 3% Locally Extracted ressources Extracted imported Agricultural and fishing Recycled Transporting cement from China to Europe adds 1.9% to the CO2 emitted by transport alone. This assumes Chinese production and emissions are at European production standards. 3% Data on Manufacturing activity in EU 25 Source: Ministry of Industry, France (23) Sustainable growth of Europe will heavily depend on locally 19 extracted substances
Factors influencing supply and demand in the EU the minerals industry case Market forces and consumer behaviour which translates into demand of the manufacturing and construction sectors Adverse public perception compounded by NIMBY Policy makers do not perceive minerals link to above sectors and in particular volume proximity effects Regulatory Framework (Could talk at length about complexity of permitting, licenses but we ll focus on) Time required to obtain permits has significantly increased in 4 recent years Access to land more and more problematic [Mining uses (from.5 to.5 of land area of Member States)] 35 3 25 2 15 1 5 197 198 199 2 21 Months for quarrying or mining authorisation IMA-E estimate 2
The European Extractive Industry is committed to reducing its footprint Europe leads in land reclamation practices which are mostly state of the art. To accomplish the reality that mining uses temporarily the land and sustainability is to ensure that at closure of the specific resource after a few decades of use the objective is not to leave a hole in the ground, a hole in the local society and the local economy. Increased resource efficiency can result from extended reuse of extractive wastes [examples overburden from Lignite in Germany, use to building dikes in NL, overburden from bauxite in Greece use as aggregate constructions (revise WMD in light of new Waste Directive)] Permanent innovation in processes and products reducing energy and water consumption Health and safety records subject to continuous improvement programs. 21
Securing access to primary resources: the case for European resources Recommended Policy Actions General Policies 1. Facilitate exploration and extraction by reviewing existing legislation and ensuring better implementation in member states; 2. Develop Guidance for Member States to improve land-use planning, permitting processes and implementation of Environment Impact Assessments; 3. Recognize key role of mineral deposits and provide similar recognition to other natural resource activities such as agriculture, fishing, and management of water; including the Review of Habitats directive and consider the inclusion of access to raw materials as a possible overriding public interest (Article 6 4) 4. Improve mineral planning policies through exchange of best practices in the Raw Materials Supply Group (Commission Expert Group); Facilitate internal market and Cohesion 5. Endeavour to design and implement transportation networks and infrastructure (including canals and railroads) considering the location of EU bulk materials such as minerals. 22
Securing access to primary resources: the case for European resources Recommended Policy Actions Specific policy actions 1. To address legacy issues and public perception create a special funding scheme for rehabilitation of abandoned extractive sites; 2. Provide funds for capacity building of civil servants at local level. This should be addressed to those involved with permitting activity and assessment of impacts. Special emphasis on newer EU Member States. 3. Give official recognition to the European Technology Platform on Sustainable Mineral Resources (ETP SMR) and support its Research and Development efforts. 23
Promote sustainability principles and practices to global mineral sources Recommended Policy Actions 1. Use EU market power to promote appropriate practices so that materials imported are produced in a sustainable manner 2. Foster implementation of European standards in these countries of origin through cooperation 3. Prevent import of unsustainable imports through trade defence mechanisms 4. Establish international panel to promote global sustainability principles and practices bringing together commission officials, NGO s and business people or strengthen the International Forum under the thematic strategy for the sustainable use of Natural Resources by DG Environment and cooperate business, NGO and Commission in DEVELOPING INTERNATIONAL CODE. 24
Thank you! European Association of Mining Industries 12 Avenue de Broqueville B-115 Brussels Belgium www.euromines.org 25