1 / 20

European Policies on Critical Raw Materials, including Rare Earth Elements

Natural Resources GP. European Policies on Critical Raw Materials, including Rare Earth Elements. Vasili Nicoletopoulos Natural Resources GP ERES 2014 1st conference: 4 - 7 September 2014, Milos, Greece Aug 30. Natural Resources GP. Contents. History of CRM in the EU

tate-dennis
Download Presentation

European Policies on Critical Raw Materials, including Rare Earth Elements

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Natural Resources GP European Policies on Critical Raw Materials, including Rare Earth Elements Vasili Nicoletopoulos Natural Resources GP ERES 2014 1st conference: 4 - 7 September 2014, Milos, Greece Aug 30

  2. Natural Resources GP Contents • History of CRM in the EU • Other national CRM initiatives • On recycling • Foreign trade policies on CRM • Chinese CRM policies • WTO • What next? • Open questions ERES 2014 1st conf: 4-7 Sept, 14, Milos, Greece

  3. Natural Resources GP History of CRM in the EU … Raw Materials Initiative [RMI] • Nov ‘08 Communication for Improving Access to Raw Materials in Europe • June ‘13, EC’s Report on RMI implementation: overview of the ongoing initiative, interest for the EU & 3d countries rich in raw materials to collaborate European Innovation Partnership on Raw Materials [EIP] • launched by the EC Nov ‘12 EC Definition of CRM 2010 • CRM analysis 2010: 14 CRM • May 2014, CRM list: 20 CRM, 13 previous – tantalum + 6 new: borates, Cr, coking coal, magnesite, phosphate rock, Si ERES 2014 1st conf: 4-7 Sept, 14, Milos, Greece

  4. Natural Resources GP ..History of CRM in the EU 2010 EU 14 CRM 2014 Criticality Chart ERES 2014 1st conf: 4-7 Sept, 14, Milos, Greece

  5. Natural Resources GP Other national CRM initiatives … Countries’ focus = f ( needs, expertise, geopolitics) Japan: substitution China: processing & metallurgy, environment, tightened export quotas ostensibly to secure internal supply Australia: sustainable mining Canada: exploration S. Korea: investing $300m over 10 yrs for R&D into 40 technologies -- refining, smelting, processing, recycling and substitution Russia: active program on materials stockpiles & export restrictions ERES 2014 1st conf: 4-7 Sept, 14, Milos, Greece

  6. Natural Resources GP …Other national CRM initiatives REE Resource Efficiency & Recycling End-of-life recycling rates for all of REE <1%[UNEP]. In Japan ~ 1/3 of REE for permanent magnets went into new scraps and then recycled. EU’s CRM, including REE: OHF identified recovery opportunities for permanent magnets, NiMH batteries, phosphors [eg. Rhodia’s process for recovery and separation of REE contained in used fluorescent powder]. US: Strategic Stockpiling of CRM Strategic Mineral Advisory Councilencouraging DoD to move away fm stockpiling strategic/CRM from China to creating & nurturingUS-based REE supply chain.SMAC particularly concerned about DOD recommendation that $120.43 million of HREE, which are only produced in China, be added to US stockpiles. ERES 2014 1st conf: 4-7 Sept, 14, Milos, Greece

  7. Natural Resources GP On recycling • Conflict between market forces and the existing regulatory framework • EU could negotiate emergency terms with WTO, setting clear & transparent conditions for export restrictions/duties on wastes of strategic importance • Recycling support: improving collecting infrastructure, creating legal certainty & equal level playing field, removing unnecessary administrative burdens • All individual elements of EU Climate Change Policy should result from consistent energy, raw material and industrial policies J. Zboril, EESC, June 20, ’14 7 ERES 2014 1st conf: 4-7 Sept, 14, Milos, Greece

  8. Natural Resources GP Foreign trade policies on CRM… Industrial Minerals Trading EC, Jul ’13 ‘EU - US Transatlantic Trade and Investment Partnership, Raw materials & Energy, Initial position paper’ • trans-Atlantic trade to be promoted by increasing transparency & predictability of trade deals • first & most important step towards a better [global] governance of trade in raw materials: boost investment, aid production • negotiators to consider incorporating rules inspired by the global Extractive Industry Transparency Initiative [EITI] on declaring payments to governments ERES 2014 1st conf: 4-7 Sept, 14, Milos, Greece

  9. Natural Resources GP …Foreign trade policies on CRM US DoD Urges Assessment of REE Supply Risk July 11, '14 in assessing REE supply risks for the US military industry, showing the strategic importance of these minerals and the will of the US to limit its reliance on China. ERES 2014 1st conf: 4-7 Sept, 14, Milos, Greece

  10. Natural Resources GP Chinese CRM policies… Chinese Export License Systems: REE etc • trade-restrictive measures eg export duties/quotas on key raw materials incl. Sb, bauxite/alumina/aluminium, Co, coke, Cu, fluorspar, In, Pb, magnesite/magnesium carbonate, Mn, Mo, Ni, RE, Au, Sn, W, wood, yellow phosphorus and Zn • unwritten pre-condition of any company: to have their request for a permit evaluated, blocking new FDI in the sector • since 2000, production caps to regulate REE supply & instated an export quota system, Chinese companies (to obtain a licence to export any REE • China's unfair REE export restrictions must be rectified - Chicago Tribune Aug 11 '14 ERES 2014 1st conf: 4-7 Sept, 14, Milos, Greece

  11. Natural Resources GP …Chinese CRM policies… REE Recycling – and Smuggling • June ’14 Preliminary stats: illegal smuggling hidden among 67 REE recycling projects across the country. MIIT urged govt to regulate REE recycling • July ’14, China Mining Association CMA: illegal or unlicensed REO production reached 40,000-50,000 mt in the domestic market, determining a serious oversupply, lowering REE prices • Aug 5, ‘14:  REE purchase by govt result of the pressure from the WTO to lift REE export quotas & attempt to push up prices to revive a market still weakened by illegal mining ERES 2014 1st conf: 4-7 Sept, 14, Milos, Greece

  12. Natural Resources GP …Chinese CRM policies… Aug 5, '14: Approval of formation of North Baotou Steel Rare Earth Group, formed by Inner Mongolia Baotou Steel Rare Earth Hi-Tech and 5 other major producers, major step towards implementing Beijing’s policy of building enterprise groups to regulate domestic market Aug 12, ‘14: Illegal mining in China is to blame for low REE prices, govt official said during 6th Baotou China Rare Earth Industry Forum Aug 26 '14:REE suffering from the not-so-rare capitalist disease of boom-and-bust ERES 2014 1st conf: 4-7 Sept, 14, Milos, Greece

  13. Natural Resources GP …Chinese CRM policies Subsidising REE Environmental and Efficiency Upgrades July 10, 2014: govt decision to subsidise REE producers’ technological upgrades in energy-efficiency, environmental protection, promotion of value-added products Taxation May ‘14: MIIT, State Administration of Taxation & Ministry of Finance considering adjusting againthe REE resources taxChina and the CRM Value Chain National Institute of Advanced Studies, India, Sept ’13 : Chinese enjoy global REE monopoly thanks to US policy oversights, including 1995 permission to buy Magnequench that made China a global player in value chain for REM, alloys, magnets ERES 2014 1st conf: 4-7 Sept, 14, Milos, Greece

  14. Natural Resources GP WTO… June ’09: 1st dispute settlement case on several industrial raw materials by EU, US, Mexico Dec ’09: panel established finding [a] China’s export restrictions on several industrial raw materials in breach of WTO rules, not justified for environmental protection or conservation policy reasons and [b] that China had committed not to levy export duties Mar ’12: US, EU, Japan initiated 2nd complaint re China’s restrictions [export duties, export quotas, minimum export price requirements, export licensing requirements] on export of various forms of REE, W, Mo used in electronic goods ERES 2014 1st conf: 4-7 Sept, 14, Milos, Greece

  15. Natural Resources GP …WTO… Apr ’14: China notified decision to appeal certain issues. China Daily report: ‘Beijing should try & get around the WTO ruling by offering to remove the export quotas on LREE but keep ones on medium and HREE, which have smaller production volumes’. Ministry of Commerce: ‘protecting resources & the environment for sustainable development...no intention of favoring domestic industry through distorted trade’ Aug 7 ‘14: WTO Appellate Body rule in EU’s favor: China’s export restrictions on REE, W, Moin breach of WTO rules. China’s export duties & quotas not justified for reasons of environmental protection or conservation policy. ERES 2014 1st conf: 4-7 Sept, 14, Milos, Greece

  16. Natural Resources GP …WTO Chinese Retaliation? Chinese authorities may deal with the WTO by imposing higher taxes on producers of REE on the basis of the value of minerals, rather than the volume as is the case now. This change will result in higher production and, of course, export prices. But China’s revenge could be longer-term and designed to cause deeper damage. ERES 2014 1st conf: 4-7 Sept, 14, Milos, Greece

  17. Natural Resources GP What next? EC report on the Implementation of the Raw Materials Initiative’ of June 24, ’13: • ‘wide-ranging public consultation on the strategy going well’ • ‘by 2020 actions would include: setting up innovative pilot projects, incl demonstration plants on exploration, mining & processing; finding substitutes for raw materials in short supply; creating a network of research centers on sustainable raw materials management…’ Roskill’s June ‘14 study: • “Terms like ‘risk’ and ‘critical’ are emotive ERES 2014 1st conf: 4-7 Sept, 14, Milos, Greece

  18. Natural Resources GP Open questions Why did China become a monopoly? Where is the downstream REE market located? Why did prices rise and fall – both times dramatically?...and can they rise again? LREE vs HREE Can Lynas and Molycorp survive? What about new projects? Will there be new uses or, on the contrary, will economizing/substitution/recycling diminish demand? Who gains from stockpiling? ERES 2014 1st conf: 4-7 Sept, 14, Milos, Greece

  19. Natural Resources GP Relevant work by Natural Resources GP ‘Rare Earths Worldwide: An Industry and Policy Analysis’, Study, 2011 ‘REE: Light to Heavy?’, Study, 2013 Articles in Industrial Minerals Magazine Presentations in international conferences: Athens, Brussels, Bologna, Budapest, Milan, Osaka, Plovdiv etc ERES 2014 1st conf: 4-7 Sept, 14, Milos, Greece

  20. Thank you very much! Vasili Nicoletopoulos www.naturalresources.gr ERES 2014 1st conf: 4-7 Sept, 14, Milos, Greece

More Related