Euromines Annual Report 2016 Foreword

People have been investing in and professionalism and that is due Europe for millennia. Indeed. But to the quality and dedication of Europe always changes, sometimes our Secretariat led by Dr. Hebestreit very quickly. Today our industry has and outstanding efforts from our to respond to new uncertainties, members both individually and not to defend itself but rather, to collectively. supply over 500 million Europeans in a very uncertain world. But as you will read, we can only succeed by working together. With Some of you will have heard me our trading partners, our suppliers question audiences, asking if they and customers, other industries, themselves had invested in mining academia, trades unions and in Europe. Why? Because we all civil society. In short our industry invest through pensions, funds must belong to more people, be and other savings, and yet few recognised as of value and as part people seem aware of where that of Europe’s future and its hope. money actually goes. In Canada As we reach more people and for example there is a different demonstrate our sustainability, tradition, one of active investing in integrity and essential role in mining by households, supported Europe, we will prosper. by fiscal incentives linked to exploration and development. So After all rocks don’t lie! popular mining investment is seen as normal rather than "new". In I commend this Annual Report participating in new EU projects to you. I remain honoured to be toward its existing trading partners Euromines President and to have a such as Canada and Latin America small part in such valuable work. Euromines is trying to encourage greater information, dialogue and investment both in and for, Europe.

We do so from a recognised position of knowledge, reliability Mark Rachovides Contents 1. A Continent of Potential 6 Strategic importance of raw materials 8 Europe in a global context 9 Addressing future sustainable supply 12 Changing from critical resources to strategic resources 13 2. Essentials for Europe’s Industrial Renaissance 14 Staying competitive 16 Inward investments 17 Supporting exploration 18 Providing value and employment 19 Involving all stakeholders on national and regional level 20 Creating overseas partnerships 21 Changing the image of the industry 22 3. Transition to Industry 4.0 24 The EIP - delivering innovation across the sector 26 The EIT on Raw Materials – seed money for education training and start-ups 27 Growing R&D investments 28 European Technology Platform on Sustainable Mineral Resources 28 The EU-funded VERAM Project 29 4. High Legal Standards and Transparency 30 Enhancing implementation and capacities 33 Working towards investment security and attractiveness 34 An economical pursuit of energy efficiency 35 Continuing environmental protection and restoration 36 Prioritizing Health & Safety 38 Euromines in Brief

Who we are What we do Why we do it Euromines is the recognized Euromines is the primary interface Euromines provides members with representative of the European between the European Mining early warnings of policy change. metals and minerals mining industry and the European The association also stimulates industry. Our members’ main authorities and international or policy debate, articulates what’s objective is to promote the industry intergovernmental bodies. The needed and creates opportunities and maintain their relations with association works to establish to secure those needs. At the European institutions at all levels. common industry positions and same time, Euromines seeks to Euromines provides services to initiatives, enhance constructive protect and maintain the industry’s its members with regard to EU dialogue on areas of European reputation so that members can policy and forms a network for and international policy affecting stay in business. cooperation and the exchange of the industry and assert the information throughout the sector industry’s views and positions. within Europe. The association also As an advocate for the industry, supports contacts with the mining Euromines promotes the benefits Euromines Representativity community throughout the world. and societal value of both its in Industrial Minerals in % of EU production activities and its investments. Euromines Representativity in Metals Mining in % of EU production Euromines members are diverse, Barytes 100% National Associations, large and Bauxite 100% small companies who, within Potash 100% Europe and in other parts of the world, provide jobs to more than Chromium 100% Fluorspar 100% 350,000 people. Their activities and operations produce more than Gold 100% 42 different metals and minerals. Magnesite 95%

Iron Ore 100% For some metals and minerals, Bentonite 85% Europe is the world’s leading producer. Silver 100% Sulphur 72%

Titanium 100% Talc 54%

Copper 95% Graphite 50% Euromines Representativity in other Minerals Tungsten 85% in % of EU production Mica 40%

Nickel 80% Uranium 100% Salt 33%

Zinc 75% Slate 100% 14% Feldspar

Lead 55% Coal 50% 13% Kaolin

Bismuth 53% Aggregates 42% 12% Diatomite Euromines Vision & Mission

Euromines’ Vision for the European extractive industry A viable and responsible extractive industry, which provides the essential economic, social and environmental assets for society’s sustainable development.

Euromines’ Mission ▪▪ To promote a sustainable and prosperous extractive industry in Europe through operational excellence; ▪▪ To serve as a network for cooperation and for the exchange of information throughout the sector; ▪▪ To foster contacts with the mining community internationally to achieve its objectives; ▪▪ To participate in European and international policy-making.

Euromines Steering Committee Mark Rachovides - President Eldorado Gold Corporation Thorsten Diercks - Vice President Vereinigung Rohstoffe und Bergbau Roman Stiftner - Vice President Austrian Mining and Steel Association Leif Boström - Member LKAB Minerals Ingmar Haga - Member Agnico-Eagle Pierre Heeroma - Member Boliden Sebastia Isart - Member Iberpotash Mikael Schauman - Member Lundin Mining Beata Staszków (until June 2017) - Member Polish Copper Employers Association Marek Swider - Member Designate KHGM Polska Miedzy

Euromines Team Corina Hebestreit - Director Johannes Drielsma - Deputy Director Petros Maraboutis - Coordinator BAT Veronika Sochorova - Communication Manager Mirona Coropciuc - Environment, Trade and Energy Manager Kasia Palaczanis - Public Relations Manager Azi Bairami - Office Manager Chapter 1 A Continent of Potential

"Striving for a viable and responsible extractive industry, which provides the essential economic, social and environmental assets for society’s sustainable development."

page 8

Chapter 1 A Continent of Potential

Strategic importance of raw materials

Domestic production of raw implementation of the European materials is an essential part of Innovation Partnership on Raw the EU economy. It provides Materials: the EIP Scoreboard. a reliable supply of inputs to The scoreboard tries to assess the many downstream industries situation of the industry in Europe (e.g. automotive, chemicals, and provides a basis for identifying and electronics manufacturing). future challenges. The Scoreboard Domestic extraction of construction provides a comprehensive set minerals has increased since the of indicators on both primary 1970s, allowing the EU to remain and secondary raw materials. It more or less self-sufficient. However, highlights the need to address domestic extraction of industrial the EU’s growing skills shortage, minerals stagnated in the 1980s, innovation needs and its import- and for metals — in spite of an dependency, providing some exponential increase in demand valuable information for policy — it has even decreased slightly. decisions. On the other hand, Eurostat data show that the EU processes more raw materials than it extracts. This difference can be explained “The supply and affordability of raw materials are of strategic importance for the future of the European economy and society. by imports and recycling. For With the European Innovation Partnership, the raw materials industrial minerals Europe is often community has taken important steps towards increased security self-sufficient or is even exporting. of supply and a more circular economy.” Looking more closely at metal Commissioner Elżbieta Bieńkowska mining, it can be seen that several metallic raw materials are mined in the EU. Indeed, the EU has the potential to increase the Euromines welcomes and supports current production and start new further work on the European production units. Nevertheless, Innovation Partnership on Raw domestic extraction of metals is Materials and insists on a continued largely insufficient to meet the EU’s long-term EU approach to raw raw materials demand. materials to allow for Europe’s economic development and In July 2016, the EU published recovery. its annual report on the Euromines Annual Report 2016 ∙ chapter 1 ∙ A Continent of Potential ∙ page 9

Europe European (EU36 countries) mine production of selected metals as world percentages: in a global context Metal % world EU36 countries with > 1 % of world output in 2014 Chromium 19.4 Turkey (13.7 %), Finland, Albania Within the EU, mined raw materials include base, precious and Silver 8.1 Poland (5.0 %), Sweden specialty metals. Yet despite the Zinc 7.3 Ireland (2.1 %), Sweden, Turkey existence of operating mines, domestic production is largely Titanium 6.6 Norway (6.6 %), insufficient to meet the EU’s growing demand for certain Lead 6.4 Poland (1.5 %), Sweden, Turkey metals and minerals. However, Copper 5.5 Poland (2.3 %), plentiful amounts of unexploited EU resources offer sizeable potential Tungsten 2.9 Spain (1.2 %), Austria for increased domestic production, depending however on the policy Nickel 2.8 Greece (1.0 %), and legal framework conditions. Gold 1.9 Turkey (1.0 %),

Certain European countries are Iron 1.7 Sweden (1.1 %), major producers, but the majority of European countries depend In the table ‘Europe’ is defined as the 28 EU countries, the EU associates Norway and chiefly on imports from other Switzerland, and the EU candidate countries Albania, Iceland, Macedonia, Montenegro, Serbia and Turkey; this group of 36 countries is for convenience referred to as ‘EU36’. continents. Source: European Mineral Statistics, BGS, 2016

European (EU36 countries) production of selected industrial minerals as world percentages: Industrial mineral % world EU36 countries with > 2 % of world output in 2014 European production of industrial Feldspar 59.5 Turkey (30.1 %), Italy, Spain, France minerals supplies a fairly high proportion of the continent’s Kaolin 32.6 Germany (16,5 %), UK, Turkey, Czech Republic requirements, but there are cases Salt 19.5 Germany (3,9 %), Netherlands, France of several minerals, where the EU production is dominated by one Diatomite 19.5 Denmark (5,2, %), France, Turkey, Spain, Germany country only while the majority are still mostly dependent on imports. Bentonite 17.9 Greece (6,2 %), Turkey, Germany

Gypsum 20.3 Turkey (5,5 %), Italy, Spain

Talc 13.9 Finland (4,6 %), France

Potash 12.0 Germany (8,0 %), Spain

% Magnesite 11.6 Turkey (5,5 %) 8 Mica 11.1 France(5,9 %), Finland Europe's Share of World Barytes 5.4 Turkey (3,7 %) Mineral Fluorspar 5.4 Spain (2,2 %) Production

In the table ‘Europe’ is defined as the 28 EU countries, the EU associates Norway and Switzerland, and the EU candidate countries Albania, Iceland, Macedonia, Montenegro, Serbia and Turkey; this group of 36 countries is for convenience referred to as ‘EU36’.

Source: European Mineral Statistics, BGS, 2016 Euromines Annual Report 2016 ∙ chapter 1 ∙ A Continent of Potential ∙ page 10

World mineral production Total mineral production by Continent 2014 (excl. bauxite) total: 17.434.662.951 metr. t 59% 8% 7% 15% 6% 5% > > > > sia > A frica A E urope merica > merica O ceania A A atin L N orth

Source: World-Mining-Data, Federal Ministry of Science, Research and Economy, Vienna 2016

World GDP and total mineral production – 1995 to 2014 (1995 = 100) Total mineral production (excl coal) World GDP (PPP, current prices)

Demand of minerals from OECD % countries has remained fairly 800 constant since 1995 (at around 3 million metric tonnes per annum), % but rising demand from emerging 700 countries – especially China – has ensured a substantial increase % in total metal consumption. 600 Total world GDP in current prices increased by about 140% from 1995 to 2015, while the value of 500% metallic minerals produced rose much faster, by no less than 470% between 1995 and 2014.1 400%

1 Role of mining in national economies, % third edition, ICMM, 2016 300 200% 100 % 2 011 1996 2014 2012 1995 2013 1997 2010 1998 1999 2001 2007 2006 2005 2009 2002 2003 2004 2008 2000

Sources: SNL database and World Bank It is reasonable to assume that continued high rates of growth for at least a subset of the world’s poorer countries could be an ongoing stimulus to sustain the significant growth in metal demand for many more years, even though demand from OECD countries remains flat.

Studies have consistently demonstrated that metal demand increases quickly when per capital incomes reach 5,000 to 10,000 USD per capita. Populous countries such as India and China will cause dramatic effects on metal demand when they reach this developmental stage. Only a prolonged global economic recession or an environmental disaster could stop this overall growth in demand. It will continue despite economic fluctuations that cause peaks and troughs in short- run demand. World GDP and total mineral production – 1995 to 2014 (1995 = 100) Nickel Zinc China’s recent slower growth Tin Aluminium may have worried market Copper Iron ore commentators, but the economy Lead is still expected to grow by 6 to 7% per annum – and from a much higher base, with its total GDP % having quadrupled since 2000. 200 Thus, a still high growth rate is being applied to a much bigger total % economic base that is shifting more 180 towards consumption as prosperity rises and spreads. 160 % China is not the only country growing rapidly. Any diminished growth from China could be % balanced by more rapid growth 140 of demand from India and other Asian and African economies % approaching the critical $5,000– 120 $10,000 per capita income level.2 100 % 2 Role of mining in national economies, third edition, ICMM, 2016 80% 2017 2016 2019 2018 2021 2024 2025 2023 2020 2022

Sources: SNL database and World Bank Euromines Annual Report 2016 ∙ chapter 1 ∙ A Continent of Potential ∙ page 12

Addressing future sustainable supply

A global exchange on raw The three events "6th EU-US-Japan materials issues remains important Trilateral Conference on Critical since the EU will both continue to Raw Materials", “Towards a World be dependent on raw material Forum on Raw Materials" – FORAM, imports on the one hand and enjoy and the “Development Minerals: exports of mining products, related Transforming a Neglected Sector machinery and technology on the in Africa, the Caribbean and the other. Pacific” organised in 2016, as well as Euromines membership in ICMM Global cooperation also allows and BIAC provided possibilities to the EU to compare policies address this issue. and create partnerships which can be beneficial to all by fostering economic growth and technological development. Photo: © LKAB Euromines Annual Report 2016 ∙ chapter 1 ∙ A Continent of Potential ∙ page 13

Changing from critical resources to strategic resources A strategic approach to economic for and from the current economic to turning waste into resources, development is based on two situation. Considerable work still which is also a theme of the EU’s key elements: natural and human needs to be done to turn this Circular Economy Policy. However, resources and ensuring well-being into a truly strategic approach. access to resources can currently in our societies. Access to both will Partnerships between producer be constrained by legal hindrances be vital if the EU wishes to ensure and user countries in the EU in the form of negative legacies the well-being of its population and therefore should be forged with such as environmental liabilities maintain its standard of living in the greater urgency. linked to accessing old sites and coming decades. their materials. Thus, the potential The concept of circular for revitalising older mining regions Different nations have defined economy seeks to provide a and providing new resources “strategic” differently and holistic approach to resource remains underdeveloped. the EU has hitherto limited its management by strengthening the Such legal hindrances need considerations deliberately to idea of making the best of natural to be reconsidered in today’s “critical” resources, an review capital, but it does not yet include circumstances. An integrated assessment which was carried out the concepts of Material Banks approach to a new mine and by the Commission in 2016 with the and the temporary use of land old waste management is the assistance of Euromines and other with its return to future use. This is of optimal and most economic organisations. It has conducted growing importance when closing and environmentally sound way several studies in order to identify current and future mines and forward. the EU’s mineral potential in making use of old waste disposal terms of primary and secondary sites. resources. Most of the currently available criticality assessments Whilst in the past the prevention have been based on an analysis of waste in general was a priority of the availability of raw materials issue, the focus should be turned Chapter 2 Essentials for Europe’s Industrial Renaissance

"Promoting a sustainable and prosperous extractive industry in Europe through operational excellence."

Chapter 2 page 16 Essentials for Europe’s Industrial Renaissance

Staying competitive The EU‘s Economic Policy is network of raw-materials supply essentially for economic growth – is essential for manufacturing and rightly so. The EU still has not industries to produce their tradable recovered from the recessions in goods and services. Providing 2008 and 2011 and has seen a better conditions for mining in widening competitiveness and Europe can decrease dependency innovation gap open up between on imported raw materials and itself and its major trading partners. therefore make the EU a stronger, more reliable trading partner. Free Mining, being subject to its and fair trade should be promoted own economic cycles, has and all legislative proposals also been affected by the properly assessed for undesirable crisis and is equally in need of impacts on raw material supply, policy measures to ensure that recognising both geological and it contributes as much as it can social conditions in each Member to renewed growth in Europe. State properly in order to improve Mining already helps ensure the access to raw materials for all. employment of some 30 million people in Europe. The still strong Comprehensive EU and national demand for metals and minerals industrial policies are needed that arising from the emergence of address resources, technology, new industrialised economies in manufacturing, expertise, indeed other parts of the world means all steps in the value chain in order that mining - as a sector - is even to achieve “Industry 4.0”3. Such a better placed to provide the strategy needs to be supported kind of investment, jobs, training, with evidence-based policies - not government revenues, valuable driven by principles but by impact materials, wealth creation and assessment. These strategies need tradable goods that the EU policy to be developed in a global is looking for. context and anticipate other nations’ policies. The EU should no longer sacrifice economic or strategic interests for the sake of ″free trade″ only, but should insist on free and fair trade 3 Industry 4.0 is the current trend of automation and data exchange in manufacturing - particularly in the area of raw technologies. It includes cyber-physical systems, the Internet of things and cloud computing. materials. Creating a more solid The term "Industrie 4.0" originates from a project in the high-tech strategy of the German and predictable and sustainable government, which promotes the computerization of manufacturing. Source: Wikipedia Euromines Annual Report 2016 ∙ chapter 2 ∙ Essentials for Europe’s Industrial Renaissance ∙ page 17

Joint Declaration for an ambitious EU industrial strategy In April 2017 158 industrial sectors across Europe called for an ambitious industrial strategy for the EU which still is the cradle of manufacturing industry and has been at the forefront of industrial revolutions and technological innovations. The EU industry employs over 34 million people across all Member States, in supply chains comprising hundreds of thousands of SMEs and larger suppliers. The European manufacturing industry has tremendous capacity for innovation, boasts a skilled workforce and has earned a reputation for quality. Between 2000 and 2014, the share of manufacturing in total EU output fell by 3.5 percentage points in nominal value-added terms, from 18.8% to 15.3%, while 3.5 million jobs were lost in manufacturing only between 2008 and 2014. At the beginning of his mandate, European Commission’s President Jean-Claude Juncker identified reindustrialization of Europe as one his top priorities and confirmed the objective of increasing the share of industry in European GDP to 20% by 2020. Therefore we, the European manufacturing industry called on the European Commission to reaffirm its commitment to reaching the target of 20% of GDP from industry, with a realistic timeline; to propose an Action Plan to tackle the challenges that the industrial sectors are facing, in the framework of a Communication that would include concrete steps and milestones; and to commit to implement this Action Plan in a timely manner and regularly report on progress. The EU Raw Materials Strategy and the European Innovation Partnership were well under way to address the investment and competitiveness of vital raw material supply for the EU’s manufacturing industry by trying to raise awareness across Member States and the general public, but also by trying to improve the access to and investments into raw material projects inside the EU but also outside of the EU. Inward investments

Mining in Europe makes it possible Europe’s high-tech mines serve as Whether we want to access to meet the EU’s minimum demand examples to other facilities in the primary or secondary raw materials, for metals & minerals to upgrade world in terms of safety, energy access to risk capital will remain a and maintain infrastructure; efficiency and general operating challenge and could be facilitated ensure that urbanisation is efficiency. Yet, the mining by a European investment facility resource-efficient; deploy new industry’s ability to contribute to for exploration, mining and waste sustainable technologies; care for an economically stronger Europe management operations. the increasing number of elderly is currently being constrained by people, and connect with growth Europe itself. Access to deposits, markets outside of the EU through skilled labour and competitively exports. Additionally, it can and priced energy are some of the does enable provision of health, things we expect European child-care, housing and energy economic policy to deliver – for the supplies to its host communities. long-term good of the European Union.

“We, as an industry, invest hundreds of millions into a project that will produce jobs, taxes, infrastructure and a future to many communities where there was at best sheep previously. Is that not value?” Mark Rachovides, President of Euromines Euromines Annual Report 2016 ∙ chapter 2 ∙ Essentials for Europe’s Industrial Renaissance ∙ page 18

Supporting exploration

Looking at mineral exploration activities, data suggest that the EU’s minerals potential is under-explored and under- exploited. Mineral exploration is an important step in the mining life cycle because it contributes to the discovery of potential new deposits and the opening of new mines. Yet there is still a low level of investment, despite of the mineral potential in the EU. Furthermore, in recent years, investment in metallic minerals exploration has steadily decreased, both in the EU and globally. This is mainly due to prices, a lack of incentives and access to risk capital, not due to lack of exploitable resources.

Institutional framework conditions — national minerals policies, data on mineral endowments, environmental regulations, public acceptance, etc. — can either impede or expedite the development of mining operations. The policy framework and regulatory structure in particular are important factors that affect the EU’s attractiveness to mining operations. Frequently updated or new legislation, changing requirements impacting cost structures, as well as at times weak implementation are obvious deterrents to investors. The sound-proofing of administrative procedures would be recommended. Attracting investment for exploration in Europe is one of the key objectives of the EU-Canada study launched by the Commission on an investment facility (see next page). A Euromine's Quick Guide provides potential investors with short, readable summaries of EU/International Investment Agreements Euromines Annual Report 2016 ∙ chapter 2 ∙ Essentials for Europe’s Industrial Renaissance ∙ page 19

Providing value and Value added by raw materials sector in the EU employment Manufacture of wood and of products of wood and cork, Taken together, the raw materials except furniture industries in 2012 provided EUR 280 300 billion of added value and more Manufacture of paper and paper products than four million jobs. However, the economic importance of the raw materials sector goes far 200 Manufacture of other non-metalic mineral products beyond the economic activities strictly related to the extractive and processing industries. 100 Manufacture of basic metals

Mining and quarrying

€ billion 0 2 011 2012 2010 2009 2008

Looking at the metals value Jobs by raw materials sector in the EU chain alone, the secure supply of raw materials is essential for jobs in downstream manufacturing 5 sectors. These include the Manufacture of wood and of products of wood and cork, production of fabricated metal except furniture products, electronics, and 4 machinery and equipment. It is Manufacture of paper and paper products estimated that more than 11 million jobs are affected, equal to 40% of 3 the jobs and value added from the EU’s entire manufacturing sector. 2 Manufacture of other non-metalic mineral products If the EU wishes to maintain this employment, it needs to ensure 1 Manufacture of basic metals that the sector can expand in Europe. For competitive and technical reasons the sector Mining and quarrying Million jobsMillion 0 needs to automate as much as possible, which may mean job 2 011 2012 2010 2009 losses. Hence, it will be possible to 2008 maintain this vital element of the EU economy only if mines can be EIP Scoreboard 2016, based on data from Eurostat, retrieved on 20 May 2015. Value extended, new mines opened and added at factor cost from the Annual detailed enterprise statistics for industry, code sbs_na_ind_r2. Number of employees from Industry by employment size class statistics the whole supply chain kept and (NACE Rev. 2, B-E), code sbs_sc_ind_r2. extended in Europe. Euromines Annual Report 2016 ∙ chapter 2 ∙ Essentials for Europe’s Industrial Renaissance ∙ page 20

Involving all stakeholders on a national and regional level In 2016 Euromines and its members continued their efforts to involve stakeholders at all levels through conferences and national industrial roundtables.

Official Conference of the Slovak material policies. Hence, it is felt organizations: Euromines, Euracoal, Presidency to the European that addressing national, regional IndustriAll Europe, the European st nd Union: 21 - 22 November 2016, and local questions by stakeholder Commission and numerous Bratislava consultations in Member States is national high level partners from the best way forward: Euromines academia, geological surveys, Euromines continued its tradition to therefore supported the European Non-Governmental Organisations hold conferences in cooperation Economic and Social Committee and civil society. with the EU Presidencies. The with an initiative in 2015 and 2016, theme of this year’s conference encompassing: The various national Roundtables was “Sustainability of Mineral were conducted in: Resources and the Environment”. ▪▪ An active dialogue on national The conference and and regional economic policies ▪▪ 2015: Spain (March), Slovakia accompanying exhibition procured and their relevance for raw ma- (April), Romania (June), Finland a high level of participation from terials supply issues; (September), and Slovakia, Poland and the Czech ▪▪ Stimulating engagement with ▪▪ 2016: Portugal (April), Ireland Republic with more than 100 a diversity of stakeholders and (May), Poland (June), Czech participants. governmental institutions; Republic (November), Belgium ▪▪ Encouraging transparency and (November), The conference addressed the understanding of current chal- ▪▪ There is a need for a medi- EU’s adopted policy of the Circular lenges such as the limitations of um-term action plan until 2030 Economy by which a more holistic current and future supply and and a long-term one till 2050. approach should be taken to discussion of possible solutions. This action plan needs to ad- managing resources and related dress the following challenges: wastes. Throughout the whole life ▪▪ security of raw material supply cycle improved efficiency in the including the definition of base use of resources needs attention. “We need to praise and load, specific requirements for demonstrate the success enabling technologies and ad- In addition to the mineral resources stories and then spend dressing economic resilience; we extract and the resources money to bring others up ▪▪ addressing the energy/climate we farm, human resources to the same level. You change nexus including devel- have to point out the are important components in opment of clean technologies, countries that are strong achieving our goals. This is why in certain areas such as sustainability of regions facing we believe such conferences are regulation, why they are closures of coal mines, and extremely valuable. Advances strong, and then engage ensuring of raw materials for in research and technology and with countries that aren’t alternative energy generations in management practices need so good to identify the and uses. key areas in which they to be disseminated. The EU’s could improve and enjoy BAT documents and many other the same success.” Member States consider the EU’s governmental or industrial best mineral resources potential as a practices guides help us to bring Mark Rachovides, President factor of economic development. of Euromines the latest knowledge to the wider It is therefore necessary to define community and drive progress. an integrated approach to this sector, covering the economics, social and environmental issues, Cooperation with the European The Industrial Roundtable Series of as well as the definition of a legal Economic and Social Committee 2015 and 2016 was organized by and institutional framework for the the European Economic and Social effective exercise of the various It is in the nature of the EU that Committee’s (EESC) Consultative activities. Member States, and sometimes Commission on Industrial Change even regions, are the key-holders (CCMI) in partnership with to industrial and supporting raw relevant European and national Euromines Annual Report 2016 ∙ chapter 2 ∙ Essentials for Europe’s Industrial Renaissance ∙ page 21

Creating overseas partnerships

At the end of 2016 Euromines thereby support a continuous became actively involved in and structured cooperation two major international projects between the EU and Latin America, financed by the European reinforcing the dialogue, promoting Commission. cutting edge technologies, strengthening business, institutional and academic ties and opening Canada new business prospects, thus leading to win-win situations EU-Latin America The general objective of the first between the two strategic Mining project “Feasibility Study for an partners. On the basis of an ad- EU-Canada Mineral Investment hoc, comprehensive analysis of the Exploration Facility” is to support the Raw EU and Latin-American extractive Materials Initiative objective of sectors, the MDNP will be designed Convention & guaranteeing access to a secure to enable spaces for networking, and sustainable supply of Raw information gathering and Trade Show Materials for the EU industry. exchange of best-practices. The feasibility study, which will encompass associated events In April 2018, the Mining Exploration 10 – 12 April 2018 and stakeholder dialogue, should and Trade Show Conference analyse the current state of play of (METS) www.mets2018.eu will be Madrid, Spain co-operation between the EU and organized for the first time in Madrid Canada on the mining sector and for all interested stakeholders. EU related technology and services. and Latin American partners will It should then conclude how to be able to meet in person, gather Find out more at better promote and structure first-hand information, engage this co-operation and whether in discussions and promote their www.mets2018.eu this could be achieved through technologies, companies and the establishment of a mineral organizations. investment facility (MIF) between the EU and Canada, examine all This action is embedded in the Raw Funded by METS 2018 is part of options within the context of the Materials Initiative (first pillar) and the European Union the MDNP project EU-Canada relationship in the in the Strategic Implementation field of raw materials, and make Plan of the European Innovation a proposal on the best design Partnership on Raw Materials (third of a potential MIF. The project pillar). The leader of the Consortium was awarded to Ernst & Young, is Projekt-Consult, joined by with MAC and Euromines as Euromines, Zabala, and DMT. subcontractors. The extensive benefits of these partnerships make these Latin-America international projects essential to the ongoing success of mining The aim of the second project as a European industry as well “EU-Latin America Mineral as for meeting the current and Development Network Platform” future mineral needs of European MDNP is to bring together, building citizens. Indeed, they will further our on existing multilateral cooperation, endeavours to properly contribute all relevant stakeholders from to the wellbeing of our people entities and disciplines linked to the as we nurture our businesses and non-energy extractive industries organizations. in the EU and the participating Latin-American countries. It will Euromines Annual Report 2016 ∙ chapter 2 ∙ Essentials for Europe’s Industrial Renaissance ∙ page 22

Changing the image of Public perception of the efforts of various types of company to behave respon- the industry sibly towards (2012)

Public acceptance is another Do companies make efforts to behave responsibly towards society in our country? factor that greatly affects mining Average values for the EU* by type of company - Eurobarometer survey companies’ operations. Data show that public acceptance of extractive activities in the EU is low Food production and agriculture as compared with other economic sectors, which is partly due to the past performance of the sector, but also to the continued political Retial and supermarkets support for the service industry which should not have neglected the existing industries whilst promoting new ones. Information and communication Perceptions of mining may vary technologies across Member States, but data show that compared with countries outside of the EU, overall trust Clothes and shoe manufacturing towards the extractive industries within the EU is relatively low (below 50 %). Pharmaceutical

Construction

Chemical

Financial and banking

Mining and oil and gas industry

Yes No Not applicable Don't know

* EU average coresponds EU 27 since the survey took place before Croatio joined the EU.

Source: EIP Scoreboard 2016, JRC analysis based on data from the (2013) Flash Eurobarometer 363 Euromines Annual Report 2016 ∙ chapter 2 ∙ Essentials for Europe’s Industrial Renaissance ∙ page 23

Factors such as environmental a Mineral of the Month as well Newsletters/Quick Guides impacts, highly-publicised as an Event of the Month that accidents and the NIMBY effect connect raw materials to current These publications reach beyond (not in my backyard) contribute events. In 2016 the website was the Euromines member base and to a negative perception of the redesigned, and in 2017 it was connect with an external audience effects of mining activities and adapted for mobile devices. that is relevant to raw materials overshadow the benefits. extraction.

Yet public opinion plays a major Social media The Quick Guides provide generic role in influencing government information about the issued policy. Legislators can’t feasibly Data show that the development legislation relevant to the mining prioritize agendas that will make of smartphones and emergence industry and providing positions non-energy extraction efforts of social media are changing on policy topics that are currently plausible, safer, more efficient or how people receive news and under discussion. The current list of more sustainable if their citizens are communicate with each other. publications is as follows: closed off to any and all expansion. There is an extremely limited number of ways to connect with ▪▪ A Quick Guide to a Sound Na- To help the general public the general public, but social tional Minerals Policy understand how far-reaching the media is one of them. It is also an ▪▪ A Quick Guide to EU/Interna- benefits of mining within the EU effective and affordable choice. tional Investment Agreements are, Euromines is taking action in a ▪▪ A Quick Guide to an Attrac- number of ways. It is nearly impossible to connect tive Investments Framework for with the general public (those Mines and Quarries who have no direct or professional ▪▪ A Quick guide to Community “Before It’s Yours, We Mine It” connection to the mining industry) Development without a presence on social ▪▪ A Quick Guide to Socio-eco- This slogan and campaign media. This is especially true for nomic Analysis of a Mining/ connects raw materials extraction younger generations who make Quarrying Project to the many ways it shapes up more than half the population ▪▪ A Quick Guide to the EU – Can- our daily lives. Among other and will be the source of future ada Free Trade agreement communication tools this slogan employees and innovators in the was used as the title to a book mining industry. that was published by Euromines in 2016. The information presented Social media is also an affordable is relevant to a broader audience way to engage in two-way and can help to shake public communications with the wider perceptions of mining. This slogan stakeholder community that permeates all efforts to connect includes investors, industry analysts, with the general public. community organizations and the media. To reach both types of audiences, we have continued the EUmining.org Euromines accounts on Facebook, Twitter and LinkedIn, and we have In addition to the main Euromines. initiated EUmining accounts on org website, we have launched Facebook, Twitter and Instagram. EUmining.org to help improve the image of the mining industry and draw clear connections between the raw materials mined in the EU and the products and “Good performance in health and safety, good performance in research and development, in innovation and in general infrastructure where they end up. corporate sanity, deserve more attention from the public than It is highly visual and written in a simply demands for better margins and cheaper input prices for conversational manner that is more consumer goods.” easily readable and appealing to the general public. Among Mark Rachovides, President of Euromines other things, the website features Chapter 3 Transition to Industry 4.0 "Serving as a network for cooperation and for the exchange of information throughout the sector." page 26

Chapter 3 Transition to Industry 4.0

The EIP - delivering innovation across the sector

The European Innovation support from national RTD funding Partnership (EIP) is a new approach will be crucial to deliver innovation to EU research and innovation. across the sector. By bringing together actors from across the entire value chain, The importance of the EIT it aims to streamline efforts and Raw Materials cannot be accelerate the market take-up of underestimated since it brings innovations that address the main together an otherwise fragmented challenges being faced in the EU. community that has been under pressure in the economic crisis Under current circumstances, and which can deliver enhanced the Europe 2020 target on R&D education and training as a vehicle is unlikely to be met by 2020. to improve competitiveness and European research and innovation business creation. are held back by fragmentation and inadequate framework conditions. There is not enough collaboration between the public and private sectors and “Industry 4.0 is already having a major impact and will continue to the innovation gap is widening do so. In the future, we’re looking at fully automated mines. That in Europe. Innovation stimulus in won’t happen right away – it will be a gradual process – but the lower levels in some mines in Europe are already being managed the mining sector, e.g. funding of from above.” research on mining techniques, will continue to be important after Corina Hebestreit, Director of Euromines 2020. Investments into mining sector technologies are long-term by definition.

The continuation of EU support under Horizon2020 and its successive programmes as well as Euromines Annual Report 2016 ∙ chapter 3 ∙ Transition to Industry 4.0 ∙ page 27

The EIT on Raw Materials – seed money for education training and start-ups

The European Institute of Its vision is to turn the challenge of education), and across the whole Innovation and Technology (EIT) raw materials dependency into raw materials value chain. The KIC has supported a Knowledge a strength for Europe. Its mission consortium consists of more than a Innovation Community (KIC) is to boost the competitiveness, hundred partners from all parts of on Raw Materials. This KIC is growth, and attractiveness of the value chain. The operational committed to increasing innovation the European raw materials implementation takes place in capacity, competitiveness, and sector via radical innovation and six regional hubs jointly delivering sustainable growth in Europe in the entrepreneurship by integrating Europe-wide coverage and area of raw materials, and does multiple disciplines, diversity, providing a strong basis for global so by strengthening collaboration and complementarity along the cooperation. Quite a number of across the entire value chain, from three sides of the knowledge Euromines members are involved in exploration to recycling. triangle (research, industry, and these activities.

EIT KIC Raw materials - Projects 2016 by activity type By activity – 86 projects .4% .16% .14% .49% .98%

31 1 8 3 6 Internationalisation (D7) Master Education (D3.2) Wider Society Scaling (D3.5) Network of Infrastructure (D4.1) Regional Innovation Scheme (D6) Lifelong Learning (D3.4) PhD Education (D3.3) Up-scaling projects (D4.2) Entrepreneurship Support Services (D5.1) 6.9% 24.42% 8.14% 9.3%

Source: World-Mining-Data, Federal Ministry of Science, Research and Economy, Vienna 2016

2016 was EIT Raw Materials first operational year, where several activities started up. In 2017, there will already be more than 150 projects running covering all activity types and all themes.4 4 Euromines Newsletter, Sustainability of Mineral Resources and the Environment. 2016 Euromines Annual Report 2016 ∙ chapter 3 ∙ Transition to Industry 4.0 ∙ page 28

Growing R&D investments EU statistics do not record exploration expenditure, hence the sector appears to have an overall low R&D intensity sector, which is not true. If these figures were taken into account, the situation would look different. However, even taking just the top R&D investor companies in the raw materials sector, they have almost doubled their annual R&D expenditure since 2003. Between 2003 and 2013, it grew more than twice as fast as public R&D investments.

Facilitating access to risk capital and assisting companies to bring innovations to the markets will be necessary.

EU patent applications in the raw materials sector on the other hand show a decreasing trend. Nevertheless, in 2011, the EU still accounted for 36 % of patent applications filed by the EU, Australia, Canada, Japan, Russia and the USA together.5

5 EIP Scoreboard, European Commission, 2016 Euromines Annual Report 2016 ∙ chapter 3 ∙ Transition to Industry 4.0 ∙ page 29

European Technology The EU-funded VERAM Project Platform on Sustainable The two year VERAM project, To achieve these important Mineral Resources funded under Horizon 2020, started objectives, the VERAM partnership in January 2016 and looks to the includes representatives of all The European Technology Platform future. VERAM is the first and only the major stakeholder networks. on Sustainable Mineral Resources coordination project that links two It will attempt to define different (ETP SMR) is working to enhance European technology platforms targets along a time axis and innovation in the raw materials and two ERA-NETS to develop a identify actions to achieve these. industry in Europe by uniting Vision and Roadmap for European To achieve the vision, the VERAM stakeholders from across the value Raw Materials. partnership will review existing chain to drive forward innovation, foresight studies from various secure the mineral resources VERAM aims to provide an sources, Strategic Research supply, and promote new and umbrella and coordination Agendas of the EU’s ETPs, consult better jobs, while minimising the function for raw materials related with representatives of major related environmental footprint. research and innovation activities stakeholder networks along the The ETP SMR Members act as a across the relevant ETPs and their different raw material value chains, think-tank. Euromines still provides national technology platforms represented by the ETPs, the ERA- the President of the ETP SMR. (while maintaining the flexibility NETs as well as the EIT KIC on Raw and individual visions of each Materials. The European Technology Platform ETP network) as well as with other on Sustainable Mineral Resources related stakeholders across the A successful execution of the is working to develop a roadmap raw materials value chain. This will VERAM proposal will help the for innovation for the future of the increase synergies and facilitate society to address the Societal raw materials sector and supply. uptake of research results and Challenges by a more sustainable First and foremost that’s within innovation across the sectors and and resource-efficient use of raw Europe, but, at the same time, by their value chains. materials and to reap the benefits developing new technologies, of a growing circular economy. products and materials for new applications – and doing so in Vision 2050 Research and innovation a way which is more socially activities in the area of primary acceptable and more resource- The final result of the activities will and secondary raw materials and energy-efficient – we might create a 2030 medium-term vision are currently dispersed between also be able to help foster a and a 2050 long-term Strategic different players and supported by sustainable supply of raw materials Research & Innovation Roadmap a variety of fragmented funding to other parts of the world. for Raw Materials and enable sources both on the EU- as well as collaboration between established on Member States’ level. transnational research and innovation programmes in the area As major impact of VERAM’s of raw materials. efforts it is expected to bring back investors and financing All participants who are members mechanisms into a secure and of various platforms and other sustainable supply of resources. networks will be invited to contribute to the definition of the vision by their own input, but also as facilitators for identifying other key stakeholders who can bring expertise. Chapter 4 High Legal Standards and Transparency "Participating in European and international policy-making." page 32

Chapter 4 High Legal Standards and Transparency

Adapting to climate change goals Occupational health and is one of the key challenges for the safety is also important for social raw materials sector for the future. sustainability. While the raw materials sectors are relatively Data on air emissions suggest exposed to occupational hazards already a decoupling between — accident rates are at the same raw materials production and air level as those of other high-risk pollution and greenhouse gas sectors such as construction emissions. Between 1995 and 2009, — accident rates have been emissions from the production of decreasing since the middle of raw materials in the EU decreased the 1990s. New technologies will by 10-40%. Given that many parts continue to decrease hazards and of the raw materials industry are risks in the sector. energy-intensive, this decrease is a reflection of the economic Further, the EU raw materials sector down-turn, fuel switches and is a world leader in sustainability the increased uptake and reporting. About one third of the effectiveness of energy and air Global Reporting Initiative reports in emission management systems in the raw materials sector are filed by the EU. companies with their headquarters in Europe. Euromines Annual Report 2016 ∙ chapter 4 ∙ High Legal Standards and Transparency ∙ page 33

Enhancing implementation and capacities

Waste from the extractive industry The objective of the newly Its objectives are: provides a challenge and an formed EU Mining Mentor Centre opportunity in times where the EU is to provide to the industry ▪▪ To deliver high quality support is committed to circular economy and other public and private on mine issues (as may be stip- and wishes to secure access to stakeholders high quality expertise ulated by EU or related national raw materials in order to ensure its and support in the area of legislations) including environ- economic growth. It is therefore mine and quarry issues (as may mental management, water important that the EU continues to be stipulated by EU or related management, material recov- follow different avenues in order national legislations). This includes ery for added-value, and mine to improve its waste and land environmental management, closure and site remediation management. Resource efficiency water management, material based on competences with needs to drive recovery of primary recovery for added-value, mine a proven track-record of the and secondary raw materials closure, and site remediation and experts involved. from extracted materials and old aftercare, as well as expertise ▪▪ To deliver solutions for mine clo- mine waste disposal sites, as well on social restructuring and sure and site remediation which as end-of life products. Equally retraining. Mine closure and site are long term and complex pro- important, rehabilitation of old remediation is a long term and cesses. Not only the technical sites and application of modern complex process. Not only the implementation, but also social technologies and techniques need technical implementation, but also and health impacts, safety reg- to ensure the return of the land to social and health impacts, safety ulations, specific legislative ex- society in an adequate condition regulations, specific legislative pertise, etc. are needed to deal for future use. expertise, etc. are needed to be with in this complex process. dealt with in this complex process. ▪▪ The EU Mining Mentor Centre RTD and innovation into new consists of a number of relevant techniques that achieve higher The EU Mining Mentor Centre is and related experts who will environmental, health, and safety capable of providing the necessary cover the whole spectrum of protection has been and needs to competences with a proven track issues and will provide training be supported. In order to achieve record of the experts involved. and consultancy services. better implementation across the EU, efforts need to be made in The vision is to build a European capacity building of all concerned Competence Centre that can give stakeholders. high quality support on these mine issues. Euromines Annual Report 2016 ∙ chapter 4 ∙ High Legal Standards and Transparency ∙ page 34

Working towards investment security and attractiveness

Dependency on imports from cross-border exploitation and of the extractive industries in the countries outside of the European review minerals database 28 Member States, the European Union is high, and within the standardisation and systemati- Commission must have a full and EU, raw material resources are sation. These activities facilitate complete understanding of what not fully taken advantage of. efficient and effective policy the current constraints are. The European mineral needs are only decision making. goal of the Minlex study is to foster growing, and solutions to supply ▪▪ Fostering network-building for supply security of raw materials insecurity must be found. There are co-management and knowl- within Europe by gathering and currently three EU-funded projects edge co-creation in minerals analysing information on every in progress that are aimed at policy national mining and relevant strengthening national policies on MIN-GUIDE foresees numerous legislation in all 28 Member States. non-energy mineral raw materials. activities (Annual Conferences In 2016 Euromines and its members and Policy Laboratories) and were actively involved in these and tools (Collaborative Spaces) Minatura2020 continue to do so. to create a community of key stakeholders that are engaged Providing a policy-planning and committed to building an framework that comprises the MIN-GUIDE inclusive stakeholder community “sustainability principle” for mining for sustainable minerals policy. as with other land use is the key The MIN-GUIDE project aims Both tools and activities guar- driving force behind Minatura2020. to address supply security by antee the participation and The objective of this project developing a ‘Minerals Policy the exchange of expertise of all is to develop a concept and Guide’. This online guide will stakeholders. methodology for the definition and provide a policy framework subsequent protection of “mineral that promotes innovative and Minlex deposits of public importance” sustainable approaches to tackling in order to ensure their best use challenges in the mining value Minlex is a study aimed at in the future. chain. The project links to the defining a legal framework for European Innovation Partnership mineral extraction and permitting Minatura2020 aims to assess on Raw Materials (EIP) by feeding procedures for exploration and exploitable mineral deposits such back its results into EU policy exploitation in the EU. as known geological deposits, process and supporting outreach abandoned mines and historical activities and community building. A major factor limiting access mining sites in the face of other to minerals is a lack of policies land uses (agriculture, forestry, THREE MAIN OBJECTIVES and complicated mining and/ habitats for fauna and flora, other ▪▪ Providing guidance for EU and or environmental permitting environmental concerns, priorities Member States on minerals poli- procedures. Fewer permits, short for settlements and infrastructure, cy and legislation duration of permits, expensive and etc.). The deliberation between An online Mineral Policy Guide time-consuming procedures for these diverse land uses requires achieves greater transparency both operators and authorities, adequate consideration of the of European and national min- as well as complaints regarding exclusiveness, reversibility, and erals policies. The knowledge re- a lack of transparency have consequences on the surrounding pository outlines the innovation all been problematic in recent areas. potential of those policies and years. There exist cases of highlights good practice exam- unequal treatment on the basis of For the coming two years ples along the whole chain of nationality, administrative barriers Euromines and its members mining activities. to the freedom of establishment, are looking forward to national ▪▪ Facilitating minerals policy deci- unreasonable timeframes and a dialogues on the findings of these sion making multiplicity of administrative "stops" three studies. MIN-GUIDE will profile the Euro- to get an authorization to explore pean Member States minerals or exploit resources. policies, identify the needs for future policy development, To improve the policy and explore legal frameworks for regulatory framework conditions Euromines Annual Report 2016 ∙ chapter 4 ∙ High Legal Standards and Transparency ∙ page 35

A balanced approach to energy efficiency

Emissions Trading System (ETS) same time, alternative measures such as separate policy regimes Euromines welcomed the Europe- for industrial and power generation an Union commitment to reduce sectors and the inclusion of imports greenhouse gas emissions and is in EU ETS should be analysed and prepared to take all necessary further explored. measures to reach this objective. Nevertheless, the whole design of The use of the financing the EU ETS should not undermine mechanisms should be transparent the competitiveness of industry. and clear, and support the Currently the future of the objectives of the 2030 climate and global energy policies remains energy framework. unpredictable and current efforts to put a price on GHG emissions around the world remain fragmented. Both the coverage and carbon price vary significantly between jurisdictions. In such an asymmetric world, the EU mining sector is competing at local, national and international levels, especially in terms of costs. There is legitimate concern that climate action may undermine the international competitiveness of the industry. This will result in losing market share and profit margins to competitors who do not face similar carbon costs abroad.

For our industry, cost increases cannot be passed to consumers precisely because the mining and mineral processing companies compete at a global level and must maintain cost structures comparable to the ones of their international competitors. In this context, a strong industrial base, reliable and fair international competition and unhindered access to raw materials is of key importance for Europe's prosperity and growth.

As long as a global commitment to price carbon is not reached, free allocation at the European level should continue to be the key tool for sectors exposed to carbon leakage as well as financial compensation for the CO2 indirect costs and electricity prices. At the Euromines Annual Report 2016 ∙ chapter 4 ∙ High Legal Standards and Transparency ∙ page 36

Continuing environmental protection and restoration

Keeping the new Circular Economy rolling

The European Commission’s new Communication on Circular Economy is focussed on maintaining the value of resources rather than necessarily reducing their use; explicitly acknowledges the important role that primary raw materials will continue to play; and is structured to reflect the different needs and capacities of sectors when it comes to resource use, waste generation and waste management.

Having recognised that EU Product Policy would be one of the main means for the European Commission to implement its Circular Economy policy proposal, Euromines contributed €10K annually to a 2014-16 pilot of the EU’s Product Environment Footprint calculation (PEF), which draws heavily on Life Cycle Assessment (LCA). At the beginning of 2016, two peer-reviewed journal articles5,6 on the current inadequacies of LCA were published reflecting over four years of work with Euromines members, explorers, geologists, economists and LCA experts, including during workshops co-hosted with the Natural History Museum London and the International Council on Mining and Metals (ICMM). Following publication, the European

5 http://link.springer.com/ article/10.1007%2Fs11367-015-0991-7 6 http://www.mdpi.com/2079-9276/5/1/12 Euromines Annual Report 2016 ∙ chapter 4 ∙ High Legal Standards and Transparency ∙ page 37

Commission Joint Research Centre legislation, in particular the meetings in April and September to recognised the issues raised and Environmental Impact Assessment discuss issues for members on either the need to avoid letting the Directive, the Industrial Emission side of release of the first draft PEF’s treatment of natural mineral Directive and legislation on waste, BAT document in June. The draft resources result in poorly-founded including the Mine Waste Directive. contained several gaps in sector- policies. specific sections, for which generic All throughout the ELD BAT were unlikely to be applicable. Revised PEF Guidance, adopted implementation assessment, Euromines members delivered by the EU PEF Steering Committee Euromines claimed that: comments to the draft BAT in October 2016, therefore document before the European recommends comparing a ▪▪ All mining waste management Commission’s deadline. product’s mineral resource activities falling within the scope consumption to the entire content the Mining Waste Directive are Meanwhile, a Task Force of of the Earth’s crust rather than to already covered by Annex III of the Euromines Environment estimates of Mineral Resources the ELD and are therefore sub- Committee supported a and/or Reserves. ject to a strict liability regime European Commission study ▪▪ The scope of environmental on inspection and monitoring liability directive in force is practices for extractive waste Environmental Liability Directive sufficient to cover damage and facilities in Europe and delivered there is no need to extend it to a set of industry messages to the Euromines welcomed the include the mining industry in responsible consultant. The same Environmental Liability Directive the Directive Task Force provided comments (ELD) implementation Report, ▪▪ A fund to cover environmental to drafts of the ICMM’s Tailings published on 14 April 2016 by liability and losses will result in Review report and its Tailing the European Commission. The additional costs and adminis- Governance Framework, adopted assessment confirmed Euromines’ trative burden for the extractive by ICMM member companies at position, concluding that the sector already subject to very the end of 2016. scope of the environmental liability stringent requirements under EU directive in force is sufficient to legislation, without increasing Euromines has also supported cover any damage and there is the uptake of preventive actions voluntary preparation of a no need to extend it to include already taken by our sector. European Handbook on hydraulic the mining industry specifically, as transport and storage of extractive initially suggested. The evaluation Best practice management waste as a guide to European found that the Directive is generally of waste from the extractive practice as well as a European consistent with other parts of EU industries Standard on hydraulic placement environmental law and with the of extractive wastes (prEN 16907-7). relevant international conventions. During 2016, Euromines co- This handbook will be published The Directive is satisfactorily ordinated industry working groups during 2017 and the new European integrated in the EU acquis, to provide input to revision of the Standard is preliminarily scheduled supplementing other environmental BAT document, including two-day for publication early in 2018. Euromines Annual Report 2016 ∙ chapter 4 ∙ High Legal Standards and Transparency ∙ page 38

Prioritizing Health & Safety Health and Safety is a key priority for the sector and 2016 was determined by active participation in the consultations for the three major Commission initiatives:

▪▪ The Commission’s Occupational Health and Safety (OHS) Refit exercise, ▪▪ The amendment of the Chemi- cal Agents Directive, and ▪▪ The amendment of the Carcino- gens Directive. In addition, Euromines held its first Health and Safety Conference in Luxembourg. The OHS refit included extensive stakeholder consultations and, at the end, lead to the conclusions that only a few directives needed reworking.

Chemical Agents Directive – OELs

for NO2, NO and CO

In February 2015, the Commission and the Working Party on Chemicals finalised their proposals for an IOELVs and agreed on the following limits for NO of 2 ppm and

NO2 of 1 ppm.

Photo: © Boliden Due to the current difficulties of the sector to implement such limit values, after long discussions, presentations and argumentations, the Commission agreed to propose for NO, NO2 a Recital and a specific Article in the amendment of the CAD (4th list of IOELs) giving a Moratorium of 5 years for the application of the IOEL in the extractive and tunnelling industry. This was accepted by the Member States on the specificity of the extractive industry, and time was granted to improve technical Euromines Annual Report 2016 ∙ chapter 4 ∙ High Legal Standards and Transparency ∙ page 39

feasibility. Each Member State Euromines Health and Safety The Commission services launched can take advantage of this period Conference in Luxembourg the project in 2010 with an open before revising the national OEL. stakeholder consultation. ESCO The conference was held on has been developed in an open A review will be carried out after 20-21 April 2016 in Luxembourg. IT format, is available for use free 3 years. The Standing Working It attracted over 40 participants of charge by everyone and can Party on the Extractive Industry including representatives be accessed via the ESCO portal. will accompany the process with of national H&S authorities, The first version of ESCO was its work programme and a task policy makers (EC), industry published on 23 October 2013. The force. The first steps in 2017 will be representatives and other classification was revised through a baseline study of the current associations. During the first day the end of 2016. The classification situation and a best practice guide of the event, the presentations was revised through the end of 2016. in implementing the OELs. focused on safety culture. The speakers presented the industry´s The Commission developed a list achievements in modern health of 27 sectors of economic activities Amendment of the EU’s and safety management. On the which all together reflect the Carcinogens Directive (CMD) second day of the conference, European labour market. One of with OELs for respirable crystalline the main theme was health them is Mining and Heavy Industry. silica monitoring. The conference Euromines was part of the Sectoral allowed an interesting exchange Reference Group which developed The European Commission of experiences and discussions. a list of occupations that reflect published a proposal to revise the The outcome will be a publication the labour market of their sector. In CMD in May 2016 and to revise on safety culture in the extractive occupational profiles they record the annexes by adding 24-25 industry in 2017. The Secretariat knowledge, skills, competences substances in two waves. An envisages organizing the second and qualifications that are related impact assessment on possible conference on H&S which will be to each occupation. The group changes was made but the held in November 2017. completed its work and presented potential impact on the minerals to the ESCO board in June 2015 industry is certainly underestimated. which adopted the report and ESCO and the EU-wide made it available for series of At the Dutch Presidency standardisation of professions in professions (for details visit: https:// conference "Preventing work- the extractive industry ec.europa.eu/esco/portal). related cancer" held in May 2016 in Amsterdam, the Commission In order to complement the In the future, the ESCO programme revealed its possible initiative on sector’s efforts in innovation, foresees developing a skills presenting a proposal to introduce the sector needs the necessary programme and an assessment Occupational Exposure Limit knowledge and skills or skilled of the possibilities for harmonising values (OELs) for a third set of 13 workforce. The mining and minerals qualifications. priority chemical agents under sector in particular is already the Carcinogens and Mutagens reported to be suffering from a As a follow-up in 2016, the Social Directive (CMD). significant talent shortage. Dialogue Committee developed an initial plan of establishing a Skills The industry and the unions of ESCO is the multilingual Roadmap for the sector and will many industrial sectors organised classification of European Skills, follow this up in 2017 with a special around the NEPSI agreement Competences, Qualifications and seminar on skill demands and presented many reports and Occupations relevant for the EU training and education schemes studies to prove that good risk labour market and education and across Member States. management prevents an OEL training. ESCO is part of the Europe lower than 0,1 mg/m³. 2020 strategy. www.eumining.org "Before it's yours, we mine it."

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