Wealth Creation by Mineral Extraction in Europe

by Prof. DSc. Eng. Vladko Panayotov, MEP

December 3rd, 2013 European Economic and Social Committee, Brussels

World trends for Supply and Demand

Raw materials: They are the basis of our modern society!

• Global supply of resources: inherently limited

• Global demand for resources: growing especially when development in countries like India, China etc. accelerates and when world population is growing

• Competition for precious metals and critical raw materials is increasing

It will be increasingly more and more difficult for Europe to secure metals’ supply for its industries in the future.

World Demand for Metals

Prof. Fathi Habashi, Laval University, Quebec City, Canada

The Influence of Flotation

Prof. Fathi Habashi, Laval University, Quebec City, Canada

Wealth Creation by Mineral Extraction in Europe

0

50

100

150

200

250

year

Global consumption of base

metals

Fe

Al

Cu

Zn

Pb

Ni

1988=100%

0.0

100.0

200.0

300.0

400.0

500.0

600.0

year

Global consumption of some

minor metals

Co

In

Sb

Nb

Ga

REO

Cd

1988=100%

Euromines

The Current situation in Europe

• The EU largely relies on the rest of the world for resources like raw materials

• Production costs for metal mining, processing and smelting in Europe

are comparatively high, due to high labour, environmental and energy costs

• Primary resource potential is still existing in Europe but Europe is still

lagging behind for investments in exploration

• Recycling for many metals highly developed, but better regulation could improve recycling in Europe Efficient, low-energy, high-recovery processing technology is needed

The Current Situation in Europe

• Europe depends largely on imports of metals and raw materials

Eurostat 2013

Raw materials

1999 (€ 1000 mln) (%)

2003 (€ 1000 mln) (%)

2008 (€ 1000 mln) (%)

2012 (€ 1000 mln) (%)

Exports 14.5 (2.1) 18.3 (2.1) 32.2 (2.5) 47.5

Imports 38.9 (5.2) 43.1 (4.6) 75.6 (4.9) 80.9

Trade balance

- 24.4 - 24.8 - 43.4 - 33.4

Eurostat

Wealth Creation by Mineral Extraction in Europe

Average yearly investments forecasts in non-ferrous mineral exploration by

regions ($ value on 31/12/07, corrected by the change in the CPI index).

Source: Metals Economic Group, Wikipedia, US Department of Labor Statistics.

The EU’s integrated approach to find

solutions

• Raw Materials Initiative (2008, Updated 2011) – 3 pillars: First pillar: Access to raw materials on world markets at undistorted

conditions Second pillar: Foster sustainable supply of raw materials from European

sources Third pillar: Reduce the EU’s consumption of primary raw materials

• Resource-efficiency Roadmap (2011) 2012 European Parliament Resolution:

41. Recalls that resource efficiency should aim to help the EU boost its technical performance with a view to extracting more from raw materials across the value chain (in the context of mining, processing, refining and recycling);

• New: European Innovation Partnership on Raw Materials (2013)

Tapping the Potential of Mining and Mineral Processing in Europe

• Increased exploration activities will result in new mines

• Secondary resource potential in re-processing of old tailings and mine dumps, metallurgical slags and old waste dumps is still largely unused

Wealth Creation by Mineral Extraction in Europe

Europe is resource-rich!

mercredi 18 mai 2011 Service Ressources Minérales > 10

Lapland (Fe)

Skellefte-Pyhäsalmi (Cu, Zn, Au, Ni, Co)

Bergslagen (Fe, Zn)

Foresudetic basin (Cu, Co, Pt, Re)

Carpathians (Pb, Zn, Au)

Balkans (Cu, Au, Sn)

Irish (Zn)

Iberian Pyrite Belt (Cu, Zn, Sn)

AND KEY METALLOGENIC PROVINCES

Advanced Technologies’ Contribution in Exploration, Mining and Mineral Processing

Foster EU’s mineral potential knowledge base Ex: FP7 Promine project → Nano-particle products from new mineral resources in Europe, including modern geological mapping

Sustainable mining : Further increase resource productivity (Improved ore processing and metal recovery even from low-grade ores) Reduce environmental footprint (mine rehabilitation) Ease EU imports’ dependency Create jobs

Mining waste valorisation Waste = resource

Acid drainage waters

Some dumps of low-grade copper ores

Dump consisting of rich-in-pyrite mining wastes

Piles of slag

Valorization of Mineral Waste: Tailings

Tapping the Potential of Recycling in Europe

• Recycling for many metals is highly developed, but legal situation and markets for used goods drives recyclable materials out of Europe

• Primary resource potential still exists and has to be exploited wisely and fully

Tapping the potential of recycling in Europe

• Complementary nature of mining and recycling: Closing the loop of the value chain

Meeting the demand for metals and minerals

Contributing to resource efficiency

Sources: Eurostat, 2010c and 2010e; Prognos, 2009, in EEA Report No 8/2011, p.19

Tapping the potential of recycling

Urban Mining and Scrap Utilization

20 kg Electrical and Electronic Waste per EU citizen

per year

Recycling provides metals and has the

potential of lower impacts

• Primary source for all rare metals is mining

• Other sources are:

- Recycling of production waste

- Recycling of consumer waste

- Recycling of rare-metal containing residual materials, such as slags, ashes, filter dusts, etc.

Rare Metals

WE HAVE ONLY 1 EARTH! Don’t destroy it!

Thank you for your attention!

Prof. Vladko Todorov PANAYOTOV, MEP

vladkotodorov.panayotov@europarl.europa.eu Tel: +32 228 45384

Mobile: +359 888 207 471