The Madrid Raw Materials Declaration(final, June 15)

Jim O’Brien

President UEPG

Overview of Presentation - 1

Importance of the Minerals Industry for European Society

Industry views on the Raw Materials Initiative (RMI)

Industry messages to the RMI

Aggregates (Crushed stone, Sand & Gravel)

Industry data:◦ 3 billion tonnes◦ 17,000 companies◦ 23,000 locations◦ 400,000 employed◦ €20-25 billion

Industrial Minerals

Industry data:◦ 180 million

tonnes◦ Over 700

locations◦ 80,000 employed◦ €10 billion

Metals and mineral mining

Industry data:◦ 37 million tonnes◦ 80,000 employed◦ €240 billion incl

downstream products◦ 40% of all ores

imported

Non-Energy Extractive Industries

Other minerals-based industry sectors include Cement, Lime, Clay and Gypsum productsIndustry overall employs over one million directly & indirectlyVeritable “engine-room” of the European economyEssential products for societyRaw Materials Supply is crucial Good political support is vital!

Minerals – Essential to Society

Growing Demand for Minerals

Despite recession, demand for most Industrial Minerals demand will grow 20-30% in medium term

Metals demand will grow 50-100% in next 10 years

EU needs better geological and statistical data in all areas

Growing Demand for Aggregates

Aggregate consumption in tonnes/capita increases as GDP/capita growsAggregates demand will grow to 4 billion tonnesStrongest growth in Central & SE Europe

Aggregates Tonnes/capita (vertical scale) versus GDP€000/capita

(horizontal scale)

02468

1012141618

0 20 40 60 80

Recycling is also increasing

About 40% of all EU demolition materials recycled, but that is only 6% of aggregates demandOther Minerals recovered from downstream productsRegulatory, technical and quality issues limit recyclingPredominant future Minerals supply must come from virgin materials (aggregates ~85%)

Overview of Presentation - 2

Importance of the Minerals Industry for European Society

Industry views on the Raw Materials Initiative (RMI)

Industry messages to the RMI

Development of the RMI

Meeting with VP Günter Verheugen in Oct 20072008 Communication “RMI – Meeting our Critical Needs for Growth and Jobs in Europe”Very active industry participation in RMINow continuing with Commissioner Tajani

RMI WG1 on Criticality - 1

Good work done by WG1EU is highly vulnerable to Mineral supply disruption, requires urgent measuresList of 41 critical mineralsSome highly critical, others potentially critical Dynamic situation, need to review every 5 yearsNeed for better statistics

RMI WG1 on Criticality - 2

Aggregates generally available, not Critical But access to local resources is CriticalDocumented in detail in Leoben Review, just completedSame applies to several other Minerals ◦ Including rare high-grade

ores and limestone

RMI WG2 on Best Practices

Good work done in WG2Few MS have Minerals Policies or Land-Use Planning PoliciesMost MS have very slow and complex Minerals Permitting systemsEssential for MS seeking best practice to adopt those practices already proven in other MS

Mineral Extraction & Natura 2000

Minerals Industry supports draft Natura2000 GuidelinesNatura 2000 designation must not a priori exclude existing or new Minerals extraction activitiesMinerals extraction and Biodiversity can and do co-exist in harmony

Mineral Extraction & Sustainability

Minerals sectors actively support Biodiversity

Also strongly committed on◦ Health & Safety◦ Environment◦ Rehabilitation◦ Sustainability◦ Governance

Overview of Presentation - 3

Importance of the Minerals Industry for European Society

Industry views on the Raw Materials Initiative (RMI)

Industry messages to the RMI

EU & National Minerals ChallengesAt EU-level, the RMI now recognises need for longer-term supply of MineralsLack of recognition led to absence of Minerals Policies at EU and national levelsThis deficit in turn led to lack of land-use planning policies and inefficient permittingLack of public understanding of real need for Minerals

EU & National Minerals Policies The RMI needs to promote an EU Policy securing longer-term supply of MineralsEach Member States needs to have a clear, structured National Minerals PolicyAt a public level, it is crucial to ◦ Create an awareness of society’s

dependence on Minerals ◦ Promote a balanced approach in

between minerals development and other land uses

Land-Use Planning Challenges

Minerals are usually not adequately considered in national, regional and local land-use planning Must be based on knowledge of geology, land surface needed and infrastructurePlanning horizon needs to be mid-term and long-term to ensure that access to local resources is really secured

Land-Use Planning PoliciesNational, regional and local land use planning for Minerals needs to take account of:◦ Local geology◦ Potentially sensitive areas (though

such designations must not a priori prohibit extraction activities)◦ The road, rail or waterway

infrastructure for transporting the minerals from the point of excavation to the point of usage◦ For aggregates, access to local

resources is crucial

Permitting System Challenges - 1

Most Member States do not link permitting procedures to land use plansFew have the ideal “one-stop-shop” permitting systems ◦ In many Member States, multi-body

permitting regimes existAuthorisation process is usually complex and very slow Some deficient permitting systems foster illegal operators!

Permitting System Challenges - 2Must be linked to land-use planningSystem should allow efficient and timely permissions, which entails: ◦ Appropriate legislative structure, with

clear authorities and competences◦ Rationalised process ideally through

one authority (as a “one-stop-shop”) ◦ Or well co-ordinated procedures

between authorities, if there are several Time-limited procedures for clarification by all stakeholders of applications

Permitting Requirements - 1

Each Member State should have: ◦ A balanced approach conserving the

environment, but equally recognising the need for Minerals◦ Extraction projects should have the same

importance as other spatial interests Extraction must not be prohibited a priori in protected areasPermission timescales must be proportionate to the capital investment (may be up to 50 years)

Permitting Requirements - 2

Each Member State should have: ◦ fixed timescales by which planning

authorities must come to decisions◦ There needs to be an appeal process at

the highest level - determined by experts in the fields concerned, who can make objective decisions away from politics

In each country, it is useful to provide organisational charts related to land use planning and permitting process

Final Recommendations - 1

The RMI should incorporate all indsutry views into the final Communication at end 2010The RMI should encourage the Commission to implement these conclusions in a timely manner, as appropriate within the MSThere should be regular reviews of implementation over next 5-10 years

Final Recommendations - 2

Politicians can make a real difference in the future of the Minerals sector in ensuring long-term access to resources!Industry is a big employer, a major economic force, producing key products for EURecommendations should be embedded in the EC’s 2020 Agenda & Strategy

Madrid Raw Materials Declaration

Thank you for your attention!Jim O’Brien

President UEPG