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Euromines Annual Report 2016 Foreword

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Euromines Annual Report 2016 Foreword 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
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