Andrea Ferrari D’ Appolonia S.p.A.

1. Sustainable Exploitation of Materials Resources:Future Challenges and Opportunities in Raw Materials along the whole Value Chain Andrea Ferrari D’Appolonia S.p.A.

2. RawMaterialswhat are wetalkingabout • From the Mineral extraction to the final products the transformation is achieved via a number of steps

3. RawMaterialswhat are wetalkingabout • From mine to market, 4 to 8 different steps can be identified • Market 1 to 3 steps 1 step Manufacturing Companies • Mining & Extraction Traders & Distributors Refiners & Processors 1 to 3 steps 1 step

4. Challenges: Materials and the Criticality if • Something can go wrong in almost every step along the value chain • Lack of availability of a specific raw material for the needed use • WHAT

5. RawMaterialswhat are wetalkingabout

6. Challenges: Scarcity and Criticality • How much is still left? • When will this mineral run out? • Mineral scarcity: not about depleting existing stocks but about the amount of extraction that becomes profitable under existing market conditions • Reserves are to be intended in dynamic and not in static way related to mainly three parameters: • The technical/economical feasibility of the extraction, influencing and influenced by the final market price • The exact knowledge where resources are located • The political dimension, giving rise to barriers, distortion of free market dynamics and finally tightening supply, making mineral scarcity no longer a trade-issue but an issue of strategic interest

7. Challenges: Scarcity and Criticality • Criticality is a parameter related to a series of factors affecting the possibility to industries of developed Countries to access Raw Materials applied in high technology or green economy • EC Raw Materials Initiative, July 2010

8. Challenges: Scarcity and Criticality • economy applications • EC Raw Materials Initiative, July 2010

9. Challenges: Scarcity and Criticality • Economic causes • Increasing demand (population x wealth) • Increasing use of water and energy • Non-transparent, imperfect markets • Physical causes • Steep demand increases for hi-tech • Many critical metals are byproducts • Geopolitical causes • Unevenly distributed • Strategic behaviour rising economies • EU-27 strongly dependent on import of Raw Materials

10. Challenges: Sustainability of Supply • Many challenges, as identified from the Strategic Research Agendas of the ETPs, are relating to issues associated with Raw Materials • Sustainability of supply is turnkey aspect, associated to availability of raw materials for technical applications • Challenges in the field of Raw Materials are priorities for SRAs and European initiatives

11. Challenges: Sustainability of Supply • ETP SMR (Sustainable Mineral Resources) Nov-2011 • Metals for strategic energy technologies • Strategic Ambition 1: exploration and inventory of resources • Strategic Ambition 2: mineral extraction from land and sea bed deposits • Strategic Ambition 3: mineral processing; new ore and concentrates processing technologies • Strategic Ambition 4: metallurgy/metals recovery • Strategic Ambition 5: recycling

12. Challenges: Sustainability of Supply • Water ETP / 2010 • Sustainable water management for industry • Closing the water cycle. • WATERBORNE / May 2011 • need for sophisticated mechanised support to exploit the sub-sea environment to greater and greater depths, deep-sea mining operations

13. Challenges: Sustainability of Supply • PhotovoltaicsSRA / 2011 • Development of high throughput, energy conversion efficient optimized processing for production of solar cells • ERTRAC (European Road Transport Research Advisory Committee) Oct 2009 • The availability and cost of non-renewable resources critical to road transport will drive recycling and development of alternative technologies

14. Challenges: Sustainability of Supply • ENIAC (European Nanoelectronics Initiative) 2010 • Sustainable and Efficient Energy Generation • Reduction of Energy Consumption

15. Challenges correlated to Megatrends ECONOMY AND POLITICS MEGATRENDS SOCIETY AND DEMOGRAPHY MEGATRENDS BIOSPHERE MEGATRENDS NEW TECHNOLOGIES

16. Economy and PoliticsMegatrends Green energy Improved manufacturing processes Waste-energy-food-water management CO emissions reduction Growth of mineral demand - need to R&D in this field Asian aviation growth Cloud computing Water management 2

17. Society and demographyMegatrends New Internet technology Drone wars Clinical enhancement Intelligent Highways and New Urban Mobility Solutions Human machine interface Energy Saving Attitude Intelligent Buildings / Domotic

18. BiosphereMegatrends Climate Change Shortage of Drinking Water Soil Erosion and Desertification Increasing Environmental Pollution Environmental Technologies Shortage of Oil

19. RelevantChallengesin the Future Framework • Analysis of the Megatrends provides a clearer vision on the mutual influence between our everyday actions and the long terms global consequences • Decision makers are given the opportunity to gain overview on the implications on the chain of materials – products – wastes into the more complex aspects of the global process value chain • Concepts like recycling (closing the materials circle) and substituting (alternative cycle) are integrated in future frameworks

20. Opportunities: Exploration - MiningResources • Building a Pan-European 3D geological mineral resource model • DeepSeaMining • seafloor mining tools • waste material management • hyperbaric effects • local pre-treatment of material • Ultra DeepMining • underground drones or robots • machine concentrating several unit operations • backfilling

21. Opportunities: Processing • Increase materials efficiency and transformation capacity • hydrometallurgy • pyrometallurgy • flexible processing and refinement • tailings management • Water Management • integrated water management and purification • CO2-free thermal metals production • capturing CO2 streams inside the process • alternative processes • alternative energies

22. Opportunities: RecyclingResources • Integration of different technologies for high efficiency extraction of precious and critical raw materials from wastes • Mineral residuals • Spent Catalysts • WEEE • Urban mining • Collection logistics organization • Regional and Country level legislative support

23. Opportunities: Substitution • Focussed on Critical Raw Materials • REE • PGM • Tungsten, Indium, Beryllium, graphite ... • Hi-tech solutions • Value-chain evaluation of the relevant cost-effectiveness • Uncertainty of resources and modification of the scenario induced by substitution itself

24. Challenges – Opportunities:Value-Chainimplications Materials Products Wastes

25. FacingChallenges: developmentofOpportunities • European Raw Materials Strategy • Launched 2008 • Updated February 2011 • Non-energy, non-agricultural raw materials • Recommendations (2010): • Updated data on raw materials • Increase supply by stimulating recycling and substitution • Active mining policy • Secure supply byinternational diplomacy aimed at free trade

26. FacingChallenges: developmentofOpportunities • 4 (out of 7) Flagship Initiatives are related to Raw Materials strategy • An industrial policy for the globalisation era • An agenda for new skills and jobs • Resource Efficient Europe • Innovation Union • Turning Research into new and better services and products • Integrating technology, processes, best practices, standards... • Novel concept: European Innovation Partnership • EIP announced 29th February 2012

27. FacingChallenges: developmentofOpportunities • Speeding up breakthrough innovation • By bringing actors together across research and innovation • Across the whole value chain • Non-technology aspects • Improving RM knowledge database • Promoting resource efficiency • Promoting international collaboration

28. Thanksforyourattention andrea.ferrari@dappolonia.it