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Document 52008IE1206
Opinion of the European Economic and Social Committee on the Non-energy mining industry in Europe
Opinion of the European Economic and Social Committee on the Non-energy mining industry in Europe
Opinion of the European Economic and Social Committee on the Non-energy mining industry in Europe
SL C 27, 3.2.2009, p. 82–87
(BG, ES, CS, DA, DE, ET, EL, EN, FR, IT, LV, LT, HU, MT, NL, PL, PT, RO, SK, SL, FI, SV)
3.2.2009 |
EN |
Official Journal of the European Union |
C 27/82 |
Opinion of the European Economic and Social Committee on the ‘Non-energy mining industry in Europe’
(2009/C 27/19)
On 17 January 2008, the European Economic and Social Committee, acting under Article 29(2) of its Rules of Procedure, decided to draw up an own-initiative opinion on
Non-energy mining industry in Europe.
The Consultative Commission on Industrial Change, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 24 June 2008. The rapporteur was Mr Fornea and the co-rapporteur was Mr Pop.
At its 446th plenary session, held on 9 and 10 July 2008 (meeting of 9 July), the European Economic and Social Committee adopted the following opinion by 135 votes to one with 10 abstentions.
1. Conclusions and Recommendations
1.1 |
The main pillars for the future security of raw materials supply in Europe are: domestic supply, international supply, capacity building and resource efficiency.
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1.2 |
The European Economic and Social Committee urges the Commission and the Member States to work on the following recommendations (see paragraph 3.2 for detailed recommendations):
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2. Overview of the Sector
2.1 |
Minerals are essential for development and therefore for our quality of life and the creation of sustainable communities. Non-energy minerals (3) are basic materials for our daily life: a house contains up to 150 tons of minerals incorporated in: cement, clay, gypsum, calcium carbonate, composite materials, glass, paint, ceramics, tiles and tons of metals; a car contains up to 150 kilograms of minerals in rubber, plastics, glass and more than one ton of metals; 50 % of paints and paper are made from minerals; glass and ceramics also contain up to 100 % minerals (4). Mineral planning ensures that societal and economic needs as well as the extraction and processing impact on people and environment are managed in an integrated way by considering the whole life cycle of the mine/quarry from the very beginning of the extraction process, and to include closure and after-closure care in the planning process. In the light of globalisation and intensified competition on the raw materials' markets, the strategic value of the mining sector is constantly increasing. As far as extraction technology is concerned, Europe has become a world leader, but this should be consolidated with a view to for future developments. |
2.2 |
Today, 70 % of the European manufacturing industry depends on extracted substances, while the EU 27 is currently facing a large-scale restructuring of the mining industry and the price of metals on the global market is rising steadily. In order to tackle this trend, European industrial policies have to take into consideration the fact that security of supply and demand for raw materials should prevail in the context of free market forces. |
2.3 |
The European Non-Energy Extractive Industries provide jobs for 295 000 employees in about 18 300 companies, with a turnover of EUR 45.9 billion, and include many SMEs (5). The sector promotes environmental responsibility and sustainable development through its member organisations and is committed to corporate social responsibility. |
2.4 |
Many Europeans do not recognise the importance of mining, but in future, the sustainable growth of Europe will depend heavily on locally extracted substances, while the high demand for minerals coming from countries such as China and India will have a real potential to affect security of supply for the EU (6). In the context of a global approach, these regions tend to capture the lion's share of raw materials and financial resources, and the result of this is industrial restructuring and investment relocations on an international scale. |
2.5 |
In order to deal with globalisation and climate change, the EU's Energy Policy for Europe and Integrated Mining Policy are vital strategic elements. This was acknowledged from the very beginning of European construction (7). As the Member States are committed to supporting the EU's efforts to promote renewable sources of energy and the efficient use of energy, it is important to understand that this can only be achieved if European industries have safe access to non-energy minerals, primarily base and high technology metals and minerals which are vital to ‘green economies’. Changing patterns of behaviour, energy efficiency and renewable sources of energy have resulted in more technologies and more R&D activities. It is a recognised fact that technological equipment incorporates large quantities of metals, a large proportion of which is made up of rare and precious metals, which, as we must realise, are almost unavailable in Europe (8). |
2.6 |
The European Economic and Social Committee welcomes the proposal from the European Commission to publish a Communication in 2008 on improving sustainable access to raw materials. The Communication should recommend feasible, realistic and helpful actions through which the industries may gain improved sustainable access to resources. This is of particular importance as the industries are facing important supply challenges:
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2.7 |
The European Economic and Social Committee appreciates the contributions of the Commission's specialists in the Commission staff working document ‘Analysis of the competitiveness of the non-energy extractive industry in the EU’ (9) and emphasises that Europe's capacity to provide its own supply of metallic minerals through domestic extraction is still limited, in spite of the EU's enlargement. |
2.7.1 |
It is possible to improve the security of supply of European industries by further substantial investments in the mining sector of the new Member States with geological potential, using and improving the existing EU assistance mechanisms. |
2.7.2 |
Major mineral resources are available in the Eastern European countries where the geological structure has always allowed for the development of mining activities. However, in these new EU countries, the sector was underfunded by the state, so the situation today does not show the real potential of the non-energy mining industry. From this perspective, it is essential to have private capital invested in these mining companies in order to supply the financial resources which up to now were provided mostly by the state. |
2.7.3 |
In order to secure the supply of raw materials for European industry and to strengthen its competitiveness, it is crucial to address the challenges of an uneven playing field in terms of sustainable supply and access to mineral resources. These challenges need to be addressed at a high level in a comprehensive approach incorporating a wide range of policy areas, such as trade, development, energy, infrastructure and transport, enterprise and consumer policies. |
2.7.4 |
The extractive industry interacts with a series of other industries such as technology and machinery providers, research, consulting, financial and environmental services, etc. (10) This is why an extractive operation usually provides, on average, four times as many indirect jobs as the direct jobs in the region where it is located. The regional growth potential is considerable, particularly in areas where other economic development is difficult. |
2.7.5 |
The European Economic and Social Committee urges the Commission to review the best practices and model operations that exist at Member State level, in order to develop and promote them at EU level by taking into consideration not only the technical issues related to technology, but also Member States' experience in organising geological surveys and mine and quarry management for minerals (11). Internationally, a Resource Endowment Project (12) has been developed which provides guidance and case studies on how the best mineral resources can be used for economic development. Such a case study might also be developed in the EU. |
3. Main pillars and recommendations for the future supply of raw materials
3.1 Domestic supply
3.1.1 |
The limited access to resources, the high administrative burden and the increasing costs for permit application processes result in reduced investment in the EU non-energy industry sector — even in high demand areas. A European raw materials supply policy has to take into account industry and environment policy as well as land-use planning in order to ensure better coordination between national planning competences and the European policy levels. |
3.1.2 |
Some national initiatives on mineral planning for communities and local government can provide good examples of how to manage, in an integrated way, the need of society and the economy for minerals, together with the impact of extraction and processing on people and the environment. |
3.2 |
The European Economic and Social Committee urges the Commission to recommend the following in its proposed Communication: |
3.2.1 |
Improving the legal framework and permitting system (better regulation) through:
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3.2.2 |
Strengthening the compatibility of extraction and environmental protection by:
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3.2.3 |
Reinforcing the mineral intelligence at EU level by:
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4. International Supply
4.1 |
The full impact of globalisation on the demand and supply of mineral resources has not been assessed by the EU or its Member States (18). The European Economic and Social Committee recognises that there are many reasons to import raw materials from outside the EU. However, the fact that imported products may not have complied with European environmental and social standards during the production process could result not only in a loss of competitiveness for the EU economy, but also in the relocation of environmental and social problems. |
4.2 |
The European Economic and Social Committee urges the Commission to recommend the following in its proposed Communication:
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5. Capacity building
5.1 |
European Non-Energy Extractive Industries face a variety of challenges with regard to capacity building, which involves developing existing capacities and establishing new ones. One important component of this is the improvement of the sector's image. However, it is not the only measure that must be taken to attract new and young people, maintain the existing European workforce in this sector and improve their ability to cope with the modernisation of the sector. |
5.2 |
The European Economic and Social Committee urges the Commission to encourage the following in its Communication:
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6. Resource efficiency
6.1 |
The involvement of other sectors active in the process of mineral extraction is vital for resource efficiency. It is stressed that an active extractive industry in Europe is also a driver for the development of world class European technology and service providers. |
6.2 |
The European Economic and Social Committee urges the Commission to recommend the following in its proposed Communication:
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Brussels, 9 July 2008.
The President
of the European Economic and Social Committee
Dimitris DIMITRIADIS
(1) See paragraph 3.2.1 for detailed recommendations.
(2) See paragraph 3.2.2 for detailed recommendations.
(3) According to SEC(2007) 771, non-energy minerals are classified as: metallic minerals (copper, iron, silver, etc.); industrial minerals (salt, feldspar, kaolin etc.) and construction minerals. According to IP — 07 — 767, in the case of metallic minerals, Europe's capacity to provide its own supply through domestic extraction is very limited. As an illustration, 177 million tons of metallic minerals were imported into the EU in 2004 with a total value of EUR 10.4 billion, compared to the EU's production of some 30 million tons.
(4) Euromines.
(5) Eurostat.
(6) China's commodity hunger. Implications for Africa and Latin America — Deutsche Bank Research.
(7) Treaty establishing the European Coal and Steel Community, signed in 1951.
(8) This approach can be found in the Fourth Report of the High Level Group on Competitiveness, Energy and Environment, 27 November 2007 and G8 Summit Heiligendamm 6-8 June 2007. The High Level Group on Competitiveness, Energy and Environment provides a platform to galvanise the political commitment required to launch a coherent strategy to facilitate access to raw materials.
(9) SEC(2007) 771.
(10) For example, in modern mining, financial services are very important for the evolution of a mine. Financial products differ depending on the stage: exploration, feasibility stage, mine development, operations, mine closure.
(11) To be seen in existing case studies in Finland, Sweden, the UK and other European countries.
(12) Initiative launched in 2004 by the International Council on Mining and Metals. It seeks to identify good policy practice for mining and metals investments at national/regional and corporate levels within developing countries.
(13) Raw Materials Supply Group is a stakeholder group comprising industry, environmental NGO's, trade unions, Members States and the Commission.
(14) According to Metals Economic Group's eighteenth annual edition of Corporate Exploration Strategies, the high commodity prices have increased the worldwide nonferrous exploration total to US $ 10.5 billion in 2007. The top ten countries with mining exploration budgets are: Canada 19 %, Australia 12 %, US 7 %, Russia 6 %, Mexico 6 %, Peru 5 %, Chile 4 %, South Africa 4 %, China 3 %, Brazil 3 %.
(15) Geographic Information System.
(16) The aim of the spatial development policies, as was defined by The Informal Council of EU Ministers responsible for Spatial Planning held in Potsdam on 10-11 May 1999, is to work towards a balanced and sustainable development of the territory of the European Union in order to achieve economic and social cohesion, conservation and management of natural resources and the cultural heritage, more balanced competitiveness of the EU.
(17) Directive 2007/2/EC of the European Parliament and of the Council establishing an Infrastructure for Spatial Information in the European Community.
(18) At global level, United Nations Conference on Trade and Development has made an assessment on this issue in Part Two of its World Investment Report 2007.
(19) According to Raw Materials Data, Stockholm, January 2008, the total investment in the global mining industry at the end of 2007 was US $ 308 billion. That was up 50 % from 2006, which was in turn up 20 % from 2005.
(20) ETP SMR, web: http://www.etpsmr.org/.