1. European Commission Enterprise and Industry The EU Raw materials strategy Presentation for the Working Party on Euro-Mediterranean Industrial Cooperation 15 November 2011, Brussels European Commission Enterprise and Industry

2. European Commission Enterprise and Industry Structure of the presentation Raw materials Challenges on commodity and raw materials markets Raw materials potential of selected PanEuroMed countries EU Raw materials strategy Critical raw materials Fair and sustainable supply of raw materials from global markets Fostering sustainable supply within the EU Boosting resource efficiency and promoting recycling Way forward

3. European Commission Enterprise and Industry Raw materials Non-energy, non-agricultural raw materials Including metallic minerals, industrial minerals, construction materials, wood, natural rubber Primary and secondary raw materials

4. European Commission Enterprise and Industry Commodity markets challenges Commodity markets displayed increased price volatility in recent years At the heart lies a series of changes in global supply and demand + short term shock in key commodity and raw material markets Markets are experiencing the growing impact of finance The Commission has put forward an ambitious program to increase the integrity and transparency of commodity derivatives markets Further improvements in the transparency and accessibility of information on the physical commodity markets are necessary

5. European Commission Enterprise and Industry Raw materials challenges Continued growth by emerging countries will keep pressure on demand for raw materials Demand also increasingly driven by demand for new technologies EU highly dependent on imports of important raw materials which are increasingly affected by market distortions Potential in Europe, but exploration and extraction face increased competition for different land uses and a highly regulated environment

6. European Commission Enterprise and Industry In its Communication of 2 February 2011 the Commission proposes a new integrated strategy which outlines actions in the area of non-energy, non-agricultural raw materials It further pursues and reinforces the 3 pillar-based approach of the Raw Materials Initiative: 1) Fair and sustainable supply from global markets 2) Foster sustainable supply of raw materials from EU sources 3) Boost resource efficiency and promote recycling EU Raw materials strategy

7. European Commission Enterprise and Industry Critical raw materials

8. European Commission Enterprise and Industry Critical raw materials

9. European Commission Enterprise and Industry Rare Earth Elements 9

10. European Commission Enterprise and Industry Critical raw materials Monitor issues of critical raw materials to identify priority actions Update list of critical raw materials at least every 3 years Policy actions not limited to critical raw materials exclusively

11. European Commission Enterprise and Industry Raw materials potential of Middle East countries of the EuroMed group Turkey plays the stronger role in production of metals and industrial minerals: ca. 7% of world chromite production, ca. 2% of steel production and 2.5% of world cement production. Israel, Jordan, Lebanon and Syria are among world leading producers of phosphate and potash (together 7 and 14 % of world production respectively). Steel and gypsum production of these countries is relatively small, with Turkey behind region's largest and providing ca. 1% of world output.

12. European Commission Enterprise and Industry Raw materials potential of African countries of the EuroMed group Tunisia is a significant producer of phosphate rock and phosphate- based fertiliser. In phosphate rock - world's 5th in 2009 with 4.4% of world supply. Other mineral commodities produced in Tunisia include aluminum fluoride, cemen, common clays, gypsum, iron and steel, iron ore and lime. 43% if its phosphate rock exports went to Poland in 2009. Algeria produces iron and steel; precious metals such as gold and silver; and industrial minerals, including barite, bentonite and other clays, cement, crushed stone, gravel, gypsum, helium, limestone, marble, nitrogen fertilizer, phosphate rock, pozzolan, quartz, salt, and sand. Furthermore, the country has large deposits of unexploited minerals, including celestine, diamond, manganese, quartz crystal, rare-earth minerals, tungsten, and uranium

13. European Commission Enterprise and Industry Raw materials potential of African countries of the EuroMed group Egypt is a significant producer of cement, direct-reduced iron (DRI). In 2009 Egypt was the worlds 11th ranked cement producer and accounted for 1.5% of the worlds cement production. The country was the worlds seventh ranked producer of DRI and accounted for 4.5% of the worlds total production. Additionally, Egypt produced aluminum, barite, basalt, bentonite, coke, construction sand and gravel, dolomite, feldspar, ferroalloys, granite, gypsum, ilmenite, iron and steel, iron ore, kaolin, limestone, manganese, marble, phosphate rock, quartz, salt, sandstone, secondary copper, silica sand, talc, and vermiculite. Morocco possesses about three-quarters of the worlds estimated reserves of phosphates. It was the worlds third ranked producer of phosphates after China and the United States and controlled one-third of the international trade in phosphates and their derivatives. Morocco was continuing to develop its phosphate derivatives sector. These mineral commodities and products were Moroccos leading foreign exchange earning sector and accounted for about 35% of foreign trade. As a result, the mining industry continued to play a key role in the national economy. In 2009 Morocco produced 17% of the worlds output of phosphate rock, 6% of the worlds output of barite, 2% of the worlds output of cobalt, 2% of the worlds output of fluorspar, and 1% of the worlds output of lead.

14. European Commission Enterprise and Industry Pillar 1 – fair and sustainable supply of raw materials from global markets

15. European Commission Enterprise and Industry EU raw materials diplomacy with a view to securing access to raw materials through strategic partnerships and policy dialogues Raw materials diplomacy

16. European Commission Enterprise and Industry Development policy and sustainable supply of raw materials Sustainable supply needs and development goals => creating win-win situations to translate resource wealth into sustainable growth Cooperation under Africa-EU Joint Strategy Union (2011-2013) with focus on three areas: 1.Governance 2.Investment 3.Geological knowledge/skills

17. European Commission Enterprise and Industry Reinforce trade strategy Develop bilateral dialogues and strengthen ongoing debates (e.g. G20, UNCTAD, WTO, OECD) Include raw material issues in trade negotiations Continue to tackle barriers through dialogue, but dispute settlement where justified

18. European Commission Enterprise and Industry Pillar 2 – fostering sustainable supply within the EU

19. European Commission Enterprise and Industry Access to land Promote the exchange of best practice in land use planning and administrative conditions for exploration and extraction Guidelines promoting the compatibility of NEEI in relation to Natura 2000 conservation goals Encourage better networking between national geological surveys to increase the EU's knowledge base Develop medium to long term strategies to integrate sub- surface components and spatial information into land-use planning With courtesy by Knauf Gips KG

20. European Commission Enterprise and Industry Best practices – key elements Definition of a National Minerals Policy, based on sustainable development principles and appropriate legal framework Legal framework includes mineral acts, a transparent fiscal framework and effective safeguarding of actual and potential mineral resources through land use planning Setting up of a land use planning policy for minerals that comprises: a digital geological knowledge base a transparent methodology for identification of mineral resources long term estimates for regional and local demand and identifying and safeguarding mineral resources

21. European Commission Enterprise and Industry Best practices – key elements (2) clear and understandable minerals exploration and extraction authorisation process contributing to the streamlining of the administrative process: introduction of lead times permit applications in parallel one-stop-shop / parallel assessment Commission proposes to assess with Member States, in full respect of subsidiarity, the feasibility of establishing a mechanism to monitor actions by Member States in this area

22. European Commission Enterprise and Industry Enhancing the EUs knowledge base In short term, Commission to assess with Member States, the scope for increases synergies between national geological surveys => increase potential for joint projects In medium term, any synergies should contribute to improved European raw materials knowledge base, taking into account GMES Promote research and development in the raw materials value-chain including extraction, processing and substitution

23. European Commission Enterprise and Industry An example: ProMine Launched in 2009 Budget: 17 million 27 partners from 11 Member States Aims to improve the EUs knowledge base for actual and future deposits Develop the first ever pan-European GIS-based mineral resources database and a detailed 4D computer modelling system Assessments and homogenising multi-layer information system within the ProMine-Project building a basis for 3D and 4D modelling.

24. European Commission Enterprise and Industry ProMine - preliminary Findings

25. European Commission Enterprise and Industry Pillar 3 – boosting resource efficiency and promoting recycling

26. European Commission Enterprise and Industry Large potential of EUs Urban Mines Review of Thematic Strategy on waste prevention and recycling in 2012 Develop best practices in collection and treatment of waste Develop ecodesign instruments to promote more efficient use of raw materials and ensure recyclability of products Recycling and resource efficiency

27. European Commission Enterprise and Industry Strengthen Waste Shipment Regulation precise and workable inspection standards technologies for detection, tracking of illegal shipments examine feasibility of global certification scheme for recycling facilities assess feasibility of formal EU-level mechanism, building on IMPEL Recycling and resource efficiency (2)

28. European Commission Enterprise and Industry Need for innovation along the entire value chain of raw materials Commission preparing a proposal for an Innovation Partnership on raw materials within the Europe 2020 Innovation Union Flagship Public consultation held from April till June Potential Innovation Partnership on raw materials

29. European Commission Enterprise and Industry Need for reinforced cooperation with Member States Increase the level of awareness and cooperation at international level Promote awareness through annual thematic event: on 26 January 2012 a high level conference on EU/Africa and raw materials in Brussels Way forward

30. European Commission Enterprise and Industry Council supports proposed approach in its Conclusions of 10 March 2011 EP has adopted an own-initiative report on 12 September 2011 which expresses support and provides further political guidance Way forward (2)

31. European Commission Enterprise and Industry Thank you for your attention ! European Commission raw materials webpage: http://ec.europa.eu/enterprise/policies/raw-materials