Communication from the Commission to the European Parliament and the Council - The raw materials initiative : meeting our critical needs for growth and jobs in Europe {SEC(2008) 2741}
Date: 2008-11-04
Institutions: European Commission
Subjects: commodity price, economic and social cohesion, economic development, employment policy, raw material, sustainable development

EN 

EN 

   EN 

 
COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 4.11.2008 
COM(2008) 699 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT AND THE COUNCIL 

The raw materials initiative — meeting our critical needs for growth and jobs in Europe 

{SEC(2008) 2741} 

EN 

   EN 

 
 
  
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT AND THE COUNCIL 

The raw materials initiative — meeting our critical needs for growth and jobs in Europe 

Introduction 

Raw materials are essential for the sustainable functioning of modern societies. Access to and 
affordability  of  mineral  raw  materials  are  crucial  for  the  sound  functioning  of  the  EU's 
economy.  Sectors  such  as  construction,  chemicals,  automotive,  aerospace,  machinery  and 
equipment sectors which provide a total value added of € 1 324 billion and employment for 
some 30 million people (annex 1) all depend on access to raw materials.  

While  the  rising  costs  of  energy  and  the  high  dependence  of  the  EU  on  energy  imports  is 
already high on the political agenda, comparable challenges regarding certain non-energy raw 
materials have not yet received full attention. On the one hand, the EU has many raw material 
deposits.  However,  their  exploration  and  extraction  are  facing  increased  competition  for 
different land uses and a highly regulated environment, as well as technological limitations in 
access  to  mineral  deposits.  On  the  other  hand,  the  EU  is  highly  dependent  on  imports  of 
strategically important raw materials which are increasingly affected by market distortions. In 
the case of high-tech metals, this dependence can even be considered critical in view of their 
economic value and high supply risks. At the same time, a significant opportunity exists for 
securing material supplies by improving resource efficiency and recycling.  

Securing  reliable  and  undistorted  access  to  raw  materials  is  increasingly  becoming  an 
important factor for the EU’s competitiveness and,  hence,  crucial  to  the  success  of  the 
Lisbon Partnership for growth and jobs. The critical dependence of the EU on certain raw 
materials  underlines  that  a  shift  towards  a  more  resource  efficient  economy  and  sustainable 
development1 is becoming even more pressing. It is therefore appropriate to develop a more 
coherent EU policy response as suggested by the Council in May 2007.2 This Communication 
is  a  first  step  towards  this,  building  on  an  in-depth  analysis3  by  the  Commission  and  the 
results  of  a  public  consultation4  in  2008.  It  should  also  help  the  EU  to  form  a  common 
approach  in  the  international  discussion  on  raw  materials  which  has  been  addressed  at  the 
United Nations5 and by the G86.  

While this Communication focuses on non-energy minerals, the underlying analysis and the 
proposed measures, in particular with regard to trade distortions of third countries, apply to a 
high degree to other non-energy raw materials (such as wood), which are faced with similar 
supply constraints and threats to competitiveness as a result of market distortions. 

1 
2 
3 
4 
5 
6 

Sustainable development covers economic, social and environmental aspects. COM (2005) 658. 
10032/07. 
Commission Staff Working Document on extraction within the EU - SEC(2007) 771. 
http://ec.europa.eu/enterprise/non_energy_extractive_industries/raw_materials.htm 
World Investment Report 2007. 
The G 8 has put forward recommendations underlining the need for sustainability and transparency in 
the area of raw materials exploration and exploitation.  

EN 

2 

   EN 

                                                 
1. 

ANALYSIS OF SUPPLY AND DEMAND OF NON-ENERGY RAW MATERIALS  

1.1. 

The  supply  situation  in  Europe  ranging  from  self-sufficiency  to  high  import 
dependence  

The  EU  is  self-sufficient  in  construction  minerals,  in  particular  aggregates,  and  is  a  major 
world producer of gypsum and natural stone. The availability of aggregates from regional and 
local  sources  is  essential  for  economic  development,  in  view  of  logistical  constraints  and 
transport  costs.  The  EU  is  also  the  world’s  largest  or  second  largest  producer  of  certain 
industrial  minerals,  though  it  remains  a  net  importer  of  most  of  them  (annex  2,  table  1). 
However,  the  EU  is  highly  dependent  on  imports  of  metallic  minerals,  as  its  domestic 
production is limited to about 3% of world production (Annex 2, figure 1 and table 2).  

Apart from primary raw materials, the EU relies heavily on secondary raw materials. The use 
of  recycled  scrap  has  increased  significantly  in  recent  decades  and  now  represents  40%  to 
60% of input to EU metal production. However, access to scrap is becoming more difficult in 
Europe;  over  the  past  8  years,  EU  imports  of  non-ferrous  and  precious  metal  scrap  have 
dropped nearly 40%, while exports are up more than 125%, resulting in shortages and price 
rises. A similar trend can be observed for exports of ferrous scrap. One of the reasons for this 
is that many end-of-life products do not enter into sound recycling channels but are illegally 
shipped outside the EU, resulting in a loss of valuable secondary raw materials and negative 
environmental impacts. 

The EU is highly dependent on imports of “high-tech” metals such as cobalt, platinum, rare 
earths,  and  titanium.  Though  often  needed  only  in  tiny  quantities,  these  metals  are 
increasingly essential to the development of technologically sophisticated products in view of 
the  growing  number  of  their  functionalities.  The  EU  will  not  master  the  shift  towards 
sustainable  production  and  environmental-friendly  products  without  such  high  tech  metals. 
These  metals  play  a  critical  role  in  the  development  of  innovative  “environmental 
technologies”  for  boosting  energy  efficiency  and  reducing  greenhouse  gas  emissions. 
Hydrogen-fuel based cars require platinum-based catalysts. Electric-hybrid cars need lithium 
batteries and rhenium super alloys are an indispensible input for modern aircraft production 
(Annex 2, table 3).  

There are three main reasons why some of these materials, such as platinum and indium, are 
particularly  critical:  first,  they  have  a  significant  economic  importance  for  key  sectors, 
second,  the  EU  is  faced  with  a  high  supply  risks,  associated  with  e.g.  very  high  import 
dependence  and  a  high  level  of  concentration  in  particular  countries,  and  third,  there  is 
currently a lack of substitutes. The EU already experienced a supply crisis in 2000, when the 
boom in mobile phones has led to a sudden demand for tantalum. Such events can be expected 
to  occur  more  frequently  due  to  the  multiple  uses  of  these  materials,  and  temporary  supply 
bottlenecks can no longer be excluded. 

China, Africa, South America, Russia and Australia are all leading suppliers of such high-tech 
raw  materials  to  Europe  (Annex  3).  The  fact  that  some  important  raw  materials  sources  are 
located  in  parts  of  the  world  that  do  not  have  a  market-based  system,  and/or  are  politically 
and/or economically unstable poses particular risks.  

As long term market prospects will create conditions that are favourable to new mining and 
recycling projects all over the world, it is important for the EU not to miss the opportunity to 
make more of its domestic capacities or develop substitutes. Although there are examples of 

EN 

3 

   EN 

new mining initiatives being taken in Sweden, Finland and some new Member States, there 
are  still  constraints  in  implementing  the  current  EU  and  national  regulatory  framework  that 
jeopardise  the  future  development  of  the  EU  extractive  industry.  As  the  non-energy  raw 
materials  sector  is  confined  to  operate  at  locations  which  possess  known  and  commercially 
viable deposits of minerals, strategies are necessary to safeguard access to these deposits for 
future use. 

Strategies to enhance resource efficiency, recycling and reuse are important to address social 
and  economic  development  in  a  context  of  restricted  access  to  resources  and  high  import 
dependency. The advantage of recycling is that it contributes to energy efficiency, particularly 
in  the  case  of  metals  where  production  on  the  basis  of  secondary  raw  materials  (scrap)  is 
significantly more energy efficient compared to primary raw material.  

Big economic opportunities exist if a range of barriers to further developing recycling markets 
are overcome7. Barriers include a lack of information about the quality of recycled materials 
and significant search and transaction costs as it is particularly difficult for buyers and sellers 
to find each other, or even know of each other's existence. Another barrier is inadequate waste 
management  and  collection  systems  across  Member  States.  For  example  for  aluminium 
packaging,  rates  can  vary  between  30%  and  80%  recycling  across  different  Member  States. 
This  gives  an  indication  of  the  untapped  potential  for  material  efficiency  gains  in  the 
economy. 

1.2. 

The EU faces fundamental changes on the global markets  

From a global geological perspective, there is no indication of imminent physical shortage of 
the  majority  of  raw  materials  in  the  world.  However,  geological  availability  does  not 
necessarily  mean  access  to  these  raw  materials  for  EU  companies.  In  fact,  fundamental 
changes in global markets are threatening the competitiveness of European industry.  

1.2.1.  Availability and price development for raw materials 

The  international  metal  and  mineral  markets  follow  a  cyclical  pattern  based  on  supply  and 
demand  (Annex  4,  figure  1).  From  the  beginning  of  the  present  century,  a  strong  and 
unforeseen surge in demand, essentially driven by strong growth in emerging economies, led 
to a tripling of metal prices between 2002 and 2008. In particular China accounted for more 
than 50% of the growth in world consumption of industrial metals between 2002 and 2005. 
While the current effects of the financial crisis are leading to a slow down of the growth of 
global demand for raw materials, it is expected that the growth levels of emerging countries in 
the  future  will  maintain  high  pressure  on  raw  materials  demand.  While  exploration 
expenditure  has  recently  been  increasing  (Annex  4,  figure  2),  the  speed  and  scale  of  the 
increase  in  demand  is  generally  expected  to  result  in  supply  lagging  behind  demand,  a 
phenomenon described by economists as a super cycle. 

1.2.2.  New industrial strategies and risks of disfunctioning global markets 

Increasingly, many emerging economies are pursuing industrial strategies aimed at protecting 
their resource base to generate advantages for their downstream industries. This is apparent in 
the  proliferation  of  government  measures  that  distort  international  trade  in  raw  materials. 
These  include  export  taxes  and  quotas,  along  with  subsidies,  price-fixing,  dual  pricing 

7 

Improving Recycling Markets, OECD (2006). 

EN 

4 

   EN 

                                                 
systems,  and  restrictive  investment  rules.  Over  450  export  restrictions  on  more  than  400 
different  raw  materials  (e.g.  metals,  wood,  chemicals,  hides  and  skins)  have  been  identified 
(Annex 4, table 1). China, Russia, Ukraine, Argentina, South Africa and India are among the 
key countries involved in applying such measures, while in many cases also benefiting from 
reduced or duty-free access to the EU market for related finished products, placing many EU 
industrial sectors at a competitive disadvantage. 

Emerging  countries  are  also  pursuing  strategies  towards  resource-rich  countries  with  the 
apparent  aim  of  securing  privileged  access  to  raw  materials.  For  example,  China  and  India 
have  substantially  increased  their  economic  engagement  with  Africa  in  recent  years;  in  the 
case of China this includes major infrastructure projects and active involvement in exploration 
and extraction activities in countries such as Zambia (copper), Democratic Republic of Congo 
(copper, cobalt), South Africa (iron ore), Zimbabwe (platinum) and Gabon, Equatorial Guinea 
and Cameroon (timber). 

The supply situation is further affected by an increased concentration at the level of producing 
countries, and further concentration and vertical integration at the level of companies, which 
can  create  problems  of  access  to  raw  materials  (Annex  4,  figure  3,  Annex  5).  For  example, 
just three producing companies now control about 75% of the seaborne trade in iron ore. Such 
developments  can  create  risks  of  less  competition  and  hence  higher  prices  for  downstream 
users.  Downstream  companies  manage  the  risks  by  such  means  as  stock  building  and  long-
term contracts, or apply a strategy of vertical integration with mining companies. 

Over 50% of major mineral reserves are located in countries with a per capita gross national 
income  of  $10  per  day  or  less.  This  creates  new  opportunities  for  these  resource-rich 
developing countries, particularly in Africa (Annex 6), to significantly increase their national 
income since many of them are still facing poverty or slow growth. However some of these 
countries are facing violent conflicts, sometimes fuelled by competition for control of natural 
resources and some lack governance, notably as regards the allocation of resource revenues. 
Furthermore,  these  countries  have  often  difficulties  negotiating  with  foreign  mining 
companies  due  to  asymmetric  information  about  the  value  of  deposits  and  insufficient 
administrative  resources.  In  certain  cases,  questions  have  been  raised  about  companies’ 
practices with respect to environmental protection and labour rights, and in others, concerns 
have arisen as to the impact on countries’ indebtedness of certain public-private contracts. 

2. 

THE POLICY RESPONSE: AN INTEGRATED STRATEGY 

Industrialised  countries  like  Japan  and  the  US  have  recognised  their  critical  dependence  on 
particular raw materials and are pursuing specific policies for safeguarding their raw material 
supply. The US, for example, has defined raw materials that are strategically relevant and also 
maintains a stockpile of raw materials that are crucial for its defence industry. Japan has also 
engaged  in  ensuring  the  critical  access  to  raw  materials  (Annex  7).  Although  some  EU 
Member States are pursuing specific policies, there has been no integrated policy response at 
EU  level  up  to  now  to  ensure  that  it  has  sufficient  access  to  raw  materials  at  fair  and 
undistorted  prices.  It  is  proposed  that  the  EU  should  agree  on  an  integrated  raw  materials 
strategy. Such a strategy should be based on the following 3 pillars:  

(1) 

ensure access to raw materials from international markets under the same conditions 
as other industrial competitors;  

EN 

5 

   EN 

(2) 

(3) 

set the right framework conditions within the EU in order to foster sustainable supply 
of raw materials from European sources; 

boost  overall  resource  efficiency  and  promote  recycling  to  reduce  the  EU’s 
consumption of primary raw materials and decrease the relative import dependence.  

Furthermore, the Commission recommends that an integrated European strategy should, as a 
priority  action,  define  critical  raw  materials  for  the  EU.  In  this  respect,  the  Commission 
proposes, in close co-operation with Member States and stakeholders, to identify a common 
list of critical raw materials. A preliminary assessment suggests a high vulnerability of the EU 
for a number of raw materials (Annex 8).  

2.1. 

First pillar: Access to raw materials on world markets at undistorted conditions  

The EU should actively pursue raw materials diplomacy with a view to securing access to 
raw materials. This includes better and more effective coordination and coherence among EU 
external  policies  (external  relations,  trade,  and  development).  It  also  means  coordination  at 
EU  level  in  the  management  of  EU  strategic  partnerships8  and  policy  dialogues  with  third 
partner  countries,  emerging  economies  and  their  regional  groupings,  following  “mutual 
interest” principles. In particular: 

–  with Africa, by reinforcing its dialogue and actions in the area of access to raw materials 
and  on  natural  resources  management  as  well  as  transport  infrastructure,  within  the 
implementation of the Joint Strategy and Action Plan 2008-2010; 

–  with  emerging  resource-rich  economies  such  as  China  and  Russia,  by  reinforcing  the 

dialogue, including with the view to remove distortive measures.  

–  with  resource-dependent  countries  such  as  the  US  and  Japan,  by  identifying  common 
interests  and  devising  joint  actions  and  common positions  in  international  fora,  e.g.  joint 
projects with the US Geological Survey in areas open to international cooperation. 

Moreover,  the  EU  should  promote  enhanced  international  cooperation.  The  Commission 
will  support  awareness-raising  in  such  fora  such  as  the  G8,  OECD,  UNCTAD,  UNEP9  and 
explore  cooperation  opportunities  with  international  organisations  such  as  the  World  Bank 
and the International  Seabed  Authority. This  includes  dialogues  on  deep  sea  mining,  on  the 
Arctic  region10  and  on  the  security  of  international  trade  routes  for  raw  materials11.  The 
Commission  is  also  committed  to  supporting  respect  for  international  corporate  social 
responsibility  instruments12  and  will  continue  to  support  international  initiatives  to  promote 
transparency in the extractive sector such as the Kimberly Process Certification Scheme and 
EITI. The Commission will also consider a contribution to the enhanced EITI++13. 

8 
9 
10 
11 

12 
13 

EU strategic partners include Brazil, Canada, China, India, Japan, Russia, and US.  
Including the “International Panel for Sustainable Resource Management”. 
The Commission is currently preparing a Communication on the Arctic region.  
The  EU  Maritime  Policy  provides  a  framework  to  promote  Europe's  leadership  in  international 
maritime affairs and address these issues in an integrated and comprehensive manner. 
COM(2006) 136. 
The Extractive Industries Transparency Initiative Plus Plus (EITI++) is a complementary initiative by 
the World Bank to the EITI and seeks to develop national capability to handle the boom in commodity 
prices, and channel the growing revenue streams into fighting poverty, hunger, malnutrition, illiteracy, 
and disease. 

EN 

6 

   EN 

                                                 
In  view  of  its  important  strategic  security  implications,  the  objective  of  a  secure  access  to 
non-energy raw materials should be fully taken into account in the European Security Strategy 
that is currently being revised by the Council. 

Access  to  primary  and  secondary  raw  materials  should  become  a  priority  in  EU  trade  and 
regulatory  policy.  Trade  and  regulatory  policy  can  improve  access  to  raw  materials  in  the 
following ways. 

–  The EU should promote new rules and agreements on sustainable access to raw materials 
where  necessary,  and  ensure  compliance  with  international  commitments  at  multilateral 
and  at  bilateral  level,  including  WTO  accession  negotiations,  Free  Trade  Agreements, 
regulatory dialogue and non-preferential agreements. In this context the Commission will 
reinforce  its  work  towards  achieving  stronger  disciplines  on  export  restrictions  and 
improved regulation against subsidies at WTO level. 

–  The  EU  should  work  towards  the  elimination  of  trade  distorting  measures  taken  by  third 
countries in all areas relevant to access to raw materials. The EU will take vigorous action 
to  challenge  measures  which  violate  WTO  or  bilateral  rules,  using  all  mechanisms  and 
instruments available, including enforcement through the use of dispute settlement. More 
generally,  the  EU  will  act  against  the  protectionist  use  of  export  restrictions  by  third 
countries. In determining its actions, the EU will take as priority those export restrictions 
that pose the greatest problems for EU user industries or give their domestic downstream 
industries an unfair competitive advantage on international markets. 

–  The  EU  should  ensure  that  any  distortion  in  the  cost  of  raw  materials  resulting  from 
dual-pricing  practices  or  other  mechanisms  in  operation  in  the  exporting  country  is 
addressed and offset in the context of anti-dumping investigations. Increased and effective 
recourse  to  the  Trade  Barriers  Regulation  and  trade  defence  instruments  (safeguard  and 
anti-subsidy)  are  other  means  of  tackling  trade  distortions  in  access  to  raw  materials  or 
their  effects  at  downstream  level,  such  as  exports  of  downstream  products  at  dumping 
prices.  

–  The EU should take appropriate action to ensure that the various trade policy instruments 
including preferential trade agreements and EU Market Access Partnership are applied in a 
manner  consistent  with  the  objective  of  bringing  about  open  and  well-functioning  raw 
material  markets,  in  particular  by  ensuring  coherence  between  the  opening  up  of  the  EU 
market (e.g. tariffs) and restrictive measures taken by third countries.  

–  Besides  external  impediments  to  raw  materials  supply,  the  EU  should  also  keep  under 
review the EU tariff regime with a view to ensuring coherence with developments in EU 
demand for raw materials and in particular assess ways of lowering import restrictions for 
raw materials, including renewables, needed by industry as inputs for other products such 
as  chemicals.  For  renewable  raw  materials,  this  should  be  developed  in  parallel  with 
relevant standards for sustainability and certification. 

–  In  cases  of  anti-competitive  agreements  or  market  concentration,  the  Commission  will 

continue to fully apply the EU's competition rules. 

The  Commission  will  monitor  progress  by  issuing  yearly  progress  reports  on  the 
implementation of the trade aspects drawing on stakeholder inputs as appropriate. 

EN 

7 

   EN 

Many  important  raw  materials  are  located  in  developing  countries  in  Africa  or  in  other 
developing  countries.  There  is  an  obvious  case  for  coherence  between  EU  development 
policy and the EU's need for undistorted access to raw materials in order to create win-win 
situations:  Good  governance,  transparency  of  mining  deals  and  mining  revenue,  a  level 
playing  field  of  all  companies,  financing  opportunities,  sound  taxation  regimes  and  sound 
development practices are beneficial for both developing countries and the EU's access to raw 
materials. Development policies play a relevant role in this respect at three levels:  

A.  Strengthening  States:  economic,  social,  environmental  and  political  governance  is  an 
important  factor  for  development.  Good  governance  also  helps  developing  countries  to 
transform  the  availability  of  mineral  resources  into  the  sustainable  development  of  their 
economies and inclusive growth for the poor. Under the 10th European Development Fund, an 
incentive  tranche  of  2.7  billion  €  is  earmarked   for  countries  according  to  their  governance 
plans14. Many governance plans include either general commitments on economic, financial, 
fiscal  and  judicial  governance  or  specific  ones  on  natural  resources  management  and 
transparency  of  mining  deals  and  of  mining  revenues.15  Part  of  our  assistance  to  these 
countries is focused on capacity building to manage public finances, manage natural resources 
in a sustainable way and negotiations with mining companies. Another significant part of our 
assistance goes to transport infrastructure projects in ACP countries which are indispensable 
for the operation of sustainable mining16. 

We strengthen states by increasing the use of budget support as an instrument to deliver aid. 
This  type  of  aid  contributes  to  the  development  of  sound  public  finances  in  developing 
countries.  Sound  public  finances,  including  revenues  from  mineral  resource  projects,  will 
remain an important requirement for the use of budget support by the EU.  

The EU should continue the dialogue with its partner countries and the international financial 
organizations on further debt reduction. 

B. Promote a sound investment climate that helps increase supply: 

Development policy should also promote a clear legal and administrative framework by:  

–  establishing a level playing field between companies and countries wanting to access raw 

materials; 

–  increasing transparency of mining deals and revenues;  

–  promoting sound taxation systems under which all economic activities – including mining 

activities – contribute a fair share to the revenues of States17; 

Another  measure  that  increases  a  sustainable  supply  of  raw  materials  comes  from  the 
European Investment Bank's lending to mining projects. It will step up such lending above the 
the  inception  of  the  Cotonou  Partnership 
average  annual  amount  of  €140  million  since 

14 
15 
16 

17 

COM(2006) 421, endorsed by the Council on 16 October 2006, Document 14024/06. 
For example, Cameroun has EITI and FLEGT related commitments in its governance profile. 
EU transport infrastructure projects are not concentrated on natural resources, but some can be relevant, 
such  as,  for  example,  the  Western  Corridor  Infrastructure  Project  in  Ghana  consisting  of  port  and 
railroad infrastructure that will allow the transfer of bauxite and manganese to the sea. 
Zambia, for example, has with EU support, moved to a single treasury account to receive all revenues, 
including mining revenues (like Mozambique) and has increased the transparency and progressivity of 
its tax system regime applicable to mining activities.  

EN 

8 

   EN 

                                                 
Agreement  of  2000,  especially  in  countries  which  are  committed  to  implementing  reforms 
under agreed Governance Action Plans that focus on improved governance and transparency 
in the extractive industries. The Commission strongly supports this objective.  

C. Promote sustainable management of raw materials 

Our development policy also focuses on helping our partner countries improving their social 
and  environmental  standards,  improving  human  rights  conditions,  and  combating  child 
labour,  in  particular  as  regards  the  growing  sector  of  artisanal  and  small-scale  mining  that 
gives a living to about 100 million people. 

2.2. 

Second  pillar:  Foster  sustainable  supply  of  raw  materials  from  European 
sources  

In  order  to  facilitate  the  sustainable  supply  of  raw  materials  from  European  deposits,  it  is 
important  to  have  the  right  framework  conditions  in  place.  Access  to  land  is  a  key 
requirement for the extractive industry, but the area available for extraction in the EU is being 
steadily  squeezed  out  by  other  land  uses.  Furthermore,  in  the  EU  it  is  not  unusual  for  8-10 
years to elapse between the discovery of deposits and actual production. Experience points to 
the  need  to  streamline  the  administrative  conditions  and  speed  up  the  permit  process  for 
exploration  and  extraction  activities.  Member  States  are  increasingly  aware  of  these 
challenges – for example, Sweden has modernised its mining legislation and introduced lead 
times in the permit process.  

The sustainable supply of raw materials based in the EU requires that the knowledge base of 
mineral deposits within the EU will be improved. In addition, the long term access to these 
deposits  should  be  taken  into  account  in  land  use  planning.  Therefore  the  Commission 
recommends that the national geological surveys become more actively involved in land use 
planning within the Member States. In line with the principle of subsidiarity, the Commission 
proposes  to  provide  a  platform  for  Member  States  to  exchange  best  practices  in  the  area  of 
land  use  planning  (such  as  for  example  the  Austrian  Minerals  Plan)  and  other  important 
framework conditions for the extractive industry. 

Moreover, the Commission recommends better networking between the national geological 
surveys to facilitate the exchange of information and improve the interoperability of data and 
their  dissemination,  with  particular  attention  to  the  needs  of  SMEs.  Additionally,  the 
Commission, in conjunction with Member States, will look into developing a medium to long 
term strategy for integrating sub-surface components into the Land service of Kopernikus18, 
which can feed into land-use planning and improve its quality. 

Most of the legislation at EU level relevant to the non-energy extractive industry is horizontal. 
The implementation of the Natura 2000 legislation is of particular relevance for the extractive 
industry. During the public consultation industry raised concerns about sometimes competing 
objectives  between  the  protection  of  Natura  2000  areas  and  the  development  of  extractive 
activities in Europe. Whereas the Commission stresses that there is no absolute exclusion of 
extractive operations within the Natura 2000 legal framework, the Commission and Member 
States  have  committed  themselves  to  developing  guidelines  for  industry  and  authorities  in 
order to clarify how extraction activities in or near Natura 2000 areas can be reconciled with 

18 

Formerly the Global Monitoring for Environment and Security (GMES). 

EN 

9 

   EN 

                                                 
environmental protection. The guidelines are expected to be finalised by the end of 2008 and 
will be based on available best practices. 

To  tackle  the  technological  challenges  related  to  sustainable  mineral  production,  the 
Commission will promote research projects that focus on the extraction and processing of 
raw materials in its 7th Framework Programme (FP7). The European Technology Platform on 
Sustainable  Mineral  Resources  focuses  on  innovative  exploration  technologies  to  identify 
deeply  located  onshore  and  offshore  resources  (including  deep  sea  mining),  and  new 
extraction  technologies  to  maximise  economic  and  environmental  benefits.  The  Waterborne 
Technology  platform  will  undertake  research  for  technologies  that  allow  for  a  future 
sustainable exploitation of the seabed.  

The  extractive  industry  is  an  important  driver  of  economic  growth  in  some  more  remote 
European  regions.  Cohesion  policy  funding,  in  particular  under  the  European  Regional 
Development  Fund,  is  available  to  support  a  range  of  research,  innovation  and  business 
support measures for raw material exploration and exploitation.  

As is the case for other industries, the growing problem of skills shortage will have an impact 
on  the  future  of  the  European  mining  industry19.  In  addition  there  is  still  limited  public 
awareness  of  the  importance  of  domestic  raw  materials  for  the  European  economy.  More 
effective  partnerships  between  universities,  geological  surveys  and  industry  should  be 
encouraged  to  address  these  challenges.  The  Commission  will  encourage  initiatives  such  as 
the  European  Minerals  Day  2009  and  will  also  foster  the  generation  of  new  high  skills  on 
geology,  earth  observation  and  environmental  issues,  notably  through  the  Erasmus  Mundus 
Minerals  and  Environmental  Programme  (2009-2013)  joint  master  and  doctoral  study 
programmes,  to  help  counter  this  shortage.  As  a  safe  working  environment  is  essential  to 
attract  skilled  personnel,  the  Commission  will  also  support  actions  to  improve  worker 
protection. 

2.3. 

Third pillar: Reduce the EU’s consumption of primary raw materials  

Resource efficiency, recycling, substitution and the increased use of renewable raw materials 
should  be  promoted  in  view  of  easing  the  critical  dependence  of  the  EU  on  primary  raw 
materials,  reduce  import  dependency,  and  improve  the  environmental  balance,  as  well  as 
meeting  industrial  needs  for  raw  materials.  This  should  be  seen  as  part  of  the  transition 
towards  sustainable  production  and  consumption  patterns  and  a  resource  efficient  EU 
economy. 

The  EU  Thematic  Strategy  on  the  Sustainable  Use  of  Natural  Resources20  outlined  a  long 
term  strategy  aimed  at  decoupling  between  resource  use  and  economic  growth.  In  a  recent 
Action Plan on Sustainable Consumption and Production and Sustainable Industrial Policy21, 
the  Commission  aims  to  give  further  impetus  to  resource  efficiency  and  eco-innovative 
production  processes,  to  reduce  dependency  on  raw  materials  and  to  encourage  optimal 
resource use and recycling.  

19 

20 
21 

On the general issue of better anticipation and matching of skills and jobs, the Commission will present 
the “New Skills for New Jobs” Initiative in December 2008. 
COM(2005) 670. 
COM(2008) 397. 

EN 

10 

   EN 

 
                                                 
The  Commission  is  promoting  research  projects  that  focus  on  resource-efficient  products 
and production under FP7. In addition, the Eco-Design Directive22 includes provisions for the 
design  of  resource-efficient  products.  Research  will  also  play  a  major  role  in  developing 
substitutes, in the interests of flexibility in the production process and reduced vulnerability to 
import dependence. Recently, the OECD23 recommended that its members promote resource 
productivity by strengthening their capacity for analysing materials flows. In the EU, the Data 
Centres on natural resources, products and waste will coordinate Member State input. 

The  increased  use  of  secondary  raw  materials  contributes  to  the  security  of  supply  and 
energy  efficiency.  However,  today,  many  end-of-life  products  do  not  enter  into  sound 
recycling  channels,  resulting  in  an  irremediable  loss  of  valuable  secondary  raw  materials. 
There are indications that a significant percentage of all EU waste shipments do not comply 
with  the  rules,  though  the  situation  in  Member  States  varies  considerably.24  This  mainly 
concerns  exports  of  end-of-life  vehicles  and  electronic  equipment,  which  leave  Europe  as 
reusable  products  but  end  up  being  dismantled  abroad.  Furthermore,  the  classification  of 
waste  for  shipment  is  interpreted  differently  by  the  Member  States,  creating  barriers  to  the 
internal market for scrap and hence trade distortions. This is all the more regrettable since the 
physical transport of exported end-of-life products and imported raw materials (derived from 
the  recycling  outside  the  EU  under  less  strict  regulatory  conditions)  leads  to  significant 
environmental leakage.  

In  their  relations  with  third  countries,  the  Commission  and  Member  States  should  ensure 
that the treatment of waste takes place under fair and sustainable conditions. The Commission 
will  work  with  Member  States  to  raise  awareness25  and  ensure  the  sound  and  harmonised 
enforcement  of  the  Waste  Shipment  Regulation  (implementing  the  Basel  Convention),  for 
instance  by  better  specifying  the  criteria  for  denying  export  authorisation  of  end-of-life 
products.  In  cooperation  with  the  Member  States,  it  will  propose  more  effective  control 
mechanisms on waste shipments and release information on illegal shipment flows. 

The recycling of secondary raw materials will be facilitated by the full implementation and 
enforcement of relevant recycling legislation26 as well as by the new provisions in the Waste 
Framework  Directive  on  when  waste  ceases  to  be  waste.  The  Directive  will  also  require 
Member States to meet collection targets for the re-use and recycling of metals, paper, glass 
and non-hazardous construction and demolition waste.  

To boost the reuse or recycling of products and materials at a significant economy of scale 
within the EU, a fair and transparent market is essential, based on agreed minimum standards, 
certification  schemes  where  appropriate,  within  proportionate  legal  framework  conditions. 
The  Action  Plan  (2008-2011)  for  the  Lead  Market  Initiative  on  recycling  will  encourage 
recycling markets through the following measures: legislation, standards and labelling, public 
procurement, financing, knowledge sharing and international action27.  

22 
23 
24 

25 
26 

27 

Directive 2005/32/EC 
OECD Council on Resource Productivity 10 April 2008 - C(2008) 40. 
A  focused  investigation  of  such  shipments  in  2006  showed  that  more  than  50%  of  all  EU  waste 
shipments do not comply with the rules and another 43% involve irregularities. 
IMPEL-TFS enforcement actions I (2008). 
Directive 2002/96/EC on Waste electrical and electronic equipment (WEEE); Directive 2000/53/EC on 
end-of-life  vehicles;  Directive  2006/66/EC  on  batteries  and  accumulators  and  waste  batteries  and 
accumulators; Directive 94/62/EC on packaging and packaging waste, , Directive 2006/12/EC on waste, 
under revision. 
COM(2007) 860. 

EN 

11 

   EN 

                                                 
Renewable raw materials are a scarce resource for European industry, such as the chemical 
and  wood  processing  industries,  due  to  limited  areas  for  cultivation  and  in  some  cases 
potentially  competing  uses.  National  and  EU  policies  for  renewable  raw  materials  have 
potential effects on industrial users. Therefore, the Commission will monitor and report on the 
impact of increased demand for biomass on biomass using sectors28.  

3. 

THE WAY FORWARD 

The  challenges  in  ensuring  a  sustainable  supply  of  non-energy  raw  materials  for  the  EU 
economy  are  multiple,  complex,  and  interrelated.  These  challenges  are  likely  to  persist,  or 
even  increase.  There  is  need  for  a  decisive  European  response  in  order  to  ensure  European 
competitiveness.  Therefore,  the  issue  of  raw  materials  requires  high  level  political  attention 
and  should  be  addressed  in  an  integrated  EU  strategy  that  ties  together  various  EU  policies 
and  promotes  further  cooperation  between  the  Member  States  where  appropriate.  The  three 
pillars  of  the  proposed  strategy  aim  to  ensure  a  level  playing  field  in  access  to  resources  in 
third countries, better framework conditions for extracting raw materials within the EU and a 
reduced  consumption  of  primary  raw  materials  by  increasing  resource  efficiency  and 
promoting recycling.  

The Commission proposes to launch a European Raw material initiative as set out below. 
The  Commission  will  report  to  the  Council  in  2  years  on  the  implementation  of  the  raw 
materials initiative.  

28 

COM(2008) 19 final 

EN 

12 

   EN 

                                                 
The Raw Materials Initiative 

Level of response 
Member 
States 

Industry

EC 

1  Define critical raw materials  

2 

Launch of EU strategic raw materials diplomacy with major 
industrialised and resource rich countries 

X 

X 

X 

X 

X 

Include provisions on access to and sustainable management of 
raw materials in all bilateral and multilateral trade agreements 
and regulatory dialogues as appropriate  

3 

X 

X 

Identify and challenge trade distortion measures taken by third 
countries using all available mechanisms and instruments, 
including WTO negotiations, dispute settlement and the Market 
Access Partnerships, prioritising those which most undermine 
open international markets to the disadvantage of the EU. 

4 

Monitor progress by issuing yearly progress reports on the 
implementation of the trade aspects, drawing, as appropriate, 
on inputs from stakeholders 

5 

6 

Promote the sustainable access to raw materials in the field of 
development policy through the use of budget support, 
cooperation strategies and other instruments 

Improve the regulatory framework related to access to land by: 
- promoting the exchange of best practices in the area of land 
use planning and administrative conditions for exploration and 
extraction and  

- developing guidelines that provide clarity on how to reconcile 
extraction activities in or near Natura 2000 areas with 
environmental protection 

7 

Encourage better networking between national geological 
surveys with the aim of increasing the EU's knowledge base 

8 

Promote skills and focussed research on innovative exploration 
and extraction technologies, recycling, materials substitution 
and resource efficiency 

9 

Increase resource efficiency and foster substitution of raw 
materials 

10 

Promote recycling and facilitate the use of secondary raw 
materials in the EU 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

EN 

13 

   EN