Rare earth elements as critical raw materials: Focus on international markets and future strategies

Supply of some critical raw materials by European industry is becoming more and more difficult. After the case of natural textile fibres, in particular cotton, and timber, over the last few years the problem of rare earths (REs) availability has also risen. The 97% of the global supply of rare earth metals (REMs) is produced by China, that has recently done copious cuts of its exports, apparently in order to protect its environment. This fact has greatly increased the REs prices, causing tension and uncertainty among the world hi-tech markets. Many of these materials, in fact, have very few effective substitutes and low recycling rates too. In addition, their natural reserves of rare earths are concentrated in a small number of countries (China, Brazil, US, Russia, Democratic Republic of Congo). REMs are a group of 17 elements particularly used in many new electronic and advanced components: such as fuel cells, mobile phones, displays, hi-capacity batteries, permanent magnets for wind power generation, green energy devices, etc. Many analysts foresee much more requests in the next decades.     

How to evaluate raw material supply risks—an overview

Some strategic raw materials do have an extremely unsecure supply situation. Several working groups around the world have made criticality assessments for metallic raw materials to analyze the driving impact factors for this instability. However, the influences on raw material availability are manifold and therefore criticality assessment methods are very heterogeneous. Here we give an overview about the differences and similarities of supply risk evaluation in 15 criticality assessment methods. We take the example of Indium, which has been rated in 60% of these criticality studies, and show which data base is used for supply risk evaluation. Our results show a lack of consensus about which indicators give reliable information for raw material supply risk and how these indicators should be aggregated. We anticipate our essay to be a starting point for more justified indicator selection and weighting in criticality assessments.     

The raw material supply of the European Community : The importance of secondary raw materials

The availability and security of raw materials supply have taken on a new political dimension within the last few years. These issues influence the economic and political rank of nations, affecting their independence, their standards of living and the competitive position of their industries. The importance of raw materials supply will continue to grow, for both the developed industrial and the developing countries. The European Community depends on external sources for 50–100% of most of its raw materials. Although the degree of dependence varies considerably from commodity to commodity, sources are not diversified enough to guarantee supply. Yet 1700–2000 million tons of waste are generated annually in the Community, containing substances of potential value—including metals, glass, rubber, textiles, oil, plastics—of which 70– 80% are tipped. This represents a loss of materials as far as they could be reused economically. This article argues that efforts should be made to recover and reuse the maximum possible of these resources to reduce the Community's dependence on, and improve its security of, raw materials supplies, and to lower the balance of payments burden.     

New mercantilism: A perspective on how politics is shaping world metal supply

The major countries consuming metals tended historically to be also the major countries producing them. It was in their interest to promote mine development to provide low cost raw materials. Over the past fifty years, the share of global production accounted for by consuming countries has declined and producers and consumers of metals have been slowly moving into separate camps having distinct and differing interests. As a consequence of this, governments of producing countries have become more focused on how to maximise the benefit of metal extraction to their economies rather than on how to supply cheap raw materials; a tendency which has found expression in resource nationalism. Governments of consuming countries have in response become increasingly concerned about the implications of this tendency to their economic development and some countries, most notably China, have adopted robust policies to secure their supplies. Through their actions to influence capital flows within the mining industry and to force metals trade into channels which better serve their national interests (a process characterised here as ‘new mercantilism’), metal producing and metal consuming countries are reshaping global supply.     

Oil spills on other commodities

This paper examines the effect of crude oil prices on the prices of 35 internationally traded primary commodities for the 1960–2005 period. It finds that the pass-through of crude oil price changes to the overall non-energy commodity index is 0.16. At a more disaggregated level, the fertilizer index had the highest pass-through (0.33), followed by agriculture (0.17), and metals (0.11). The prices of precious metals also exhibited a strong response to crude oil price. In terms of individual commodities, the estimates of the food group exhibited remarkable similarity while those of raw materials and metals gave a mixed picture. The implication is that if crude oil prices remain high for some time, as most analysts expect, then the recent commodity price boom is likely to last much longer than earlier booms, at least for food commodities. The other commodities, however, are likely to follow diverging paths. On the methodological side, the results show that price indices, while providing useful summary statistics, they need to be supplemented by individual commodity analysis.     

Assessing the long-term supply risks for mineral raw materials—a combined evaluation of past and future trends

This paper develops a method for identifying and assessing long-term supply risks for mineral raw materials. The method is based on a combined evaluation of past and future supply and demand trends. By analysing raw material boom and bust cycles over the past 50 years, we have quantified indicators and defined benchmarks for identifying critical market situations. By applying the method, risks for supply shortage may be identified at an early stage. In addition, a numerical evaluation model has been developed for better comparison between various mineral raw materials. Compared to other assessment methods this method uses specific benchmarks for each raw material to better assess supply risks. The method is embedded within a systematic and comprehensive analytical approach.     

Taxing virgin natural resources: Lessons from aggregates taxation in Europe

The objective of this review paper is to analyze the efficiency of environmentally motivated taxes on virgin raw materials. We analyze both the economic-theoretical foundations of virgin natural resource taxation, and the empirical experiences of aggregates taxes i.e., taxes on, for instance, gravel, rock, stone, etc. in three European countries. These include Sweden, Denmark and the United Kingdom. The theoretical analysis indicates that taxing natural resource output or use typically represents a ‘second-best’ policy alternative, which can be used when, for instance, the monitoring of non-point source emissions is difficult or efficient property rights regimes cannot be established. The empirical analysis shows that the European aggregate taxes have assisted in reducing virgin resource use in spite of the relatively low own-price responses. However, generators of recycled materials typically have few incentives to enhance their waste sorting activities in the presence of a tax on virgin materials. Unless additional policies to increase the supply of recycled materials are implemented, supply will not increase much even in the presence of high demand. Finally, although second-best taxes are sometimes motivated by the desire to keep administration costs low, they could come at the cost of improper incentives and of limited policy legitimacy.     

From landfill to water,land and life: The creation of the Centre for stone materials aimed at secondary processing

This paper focuses on the creation of a Centre for the recycling of stone materials. The Centre will be able to offer a range of activities amongst which is the improvement of the production chain of the Orosei Marble district in Sardinia, Italy. Several companies operate within the marble producing area, specializing in both quarrying and stone processing. They have formed a Consortium in order to rehabilitate an area of more than 17 ha. The restoration will be carried out through an environmentally sustainable procedure. The area was previously used as a landfill for waste deriving from marble quarrying and processing. At that time unshaped blocks of various sizes (which are unsuitable to block-cutter sawing), waste deriving from both block sawing and slab/strip cutting (such as broken slabs, strips, tiles) and microfine dust from filter presses of water treatment plants were representing an environmental problem. The local administration was struggling to find new areas which could be used for landfills, resulting in an additional cost for the landfill, ultimately affecting the variable production costs. The project involves the building of a venue to be used for temporary storage, treatment of wastes produced by both quarrying and primary processing, in order to make them suitable as secondary raw materials. The project also deals with the catch basin hydrology of the area involved in the project, the building of a multifunctional centre, the landscaping and other environmental features such as vehicle traffic and slopes greening.     

European aggregates production: Drivers,correlations and trends

Aggregates constitute the biggest branch of mining by production volume and the second in value, after the sector of fossil fuels. Their close connection with the construction industry places them among the most used materials worldwide, second only to water. Despite its significance, the sector suffers from the non-systematic register of production data, resulting in weakness to study the main features affecting the sector’s structure and future capacity. The paper focuses on the aggregates production in 26 European countries. Data from available sources are gathered and combined for a 10-year period (1997–2006), as an effort to provide a clear view of the major attributes of this vital industrial sector. Through a thorough analysis, the main drivers in aggregates production are revealed and existing correlations and trends are identified. New findings are also presented, for example the significance of GDP from construction and the strong connection of aggregates production per capita with the residential building sector.     

The Food Allergy Risk Management in the EU Labelling Legislation

Food allergy represents an increasing public health issue, and a large number of food control authorities have provided regulations aimed to minimize the risk of allergic reaction for sensitized consumers. The Food and Agriculture Organization of the United Nations together with the World Health Organization established the Codex Alimentarius Commission whose main goal is to protect the consumers’ health. To purse this task the Commission listed the foods and ingredients causing the most severe allergic reactions that should be labelled. It has been reported that some cases of specific foods hypersensitivity display a different prevalence among different Countries. Thus, the European Union drew up a list of mandatory allergens (that must be labelled) longer than that provided by Codex Alimentarius. As a consequence of the complexity of the legal phraseology of the European Union (EU) and/or European Community (EC) the Regulations and/or Directives were differently translated in all EC/EU official languages determining possible misinterpretations of the legislation. Moreover, food labelling regulations were also established with the goal to promote the consumers’ conscious choice about what they eat. Starting from the case of the fermented beverages, we analysed the European legislative scenario concerning the allergen labelling of the last fifteen years, highlighting that mistranslations, misinterpretations and lack of information in the EU Regulations might lead to health and ethical issues.     

Lithium availability in the EU27 for battery-driven vehicles: The impact of recycling and substitution on the confrontation between supply and demand until2050

The adverse impacts of climate change are widely recognized as well as the importance of the mitigation of carbon dioxide (CO₂). Battery driven vehicles are expected to have a bright future, since GHG emissions can be reduced. Lithium-ion (Li-ion) batteries appear to be the most promising, due to their high energy density. Recently, the discussion concerning adequate lithium carbonate (Li₂CO₃) resources is resolved. The current challenge is the needed increase in flow rate of Li₂CO₃ into society to foresee in forecasted demand. This research determines ten factors which influence the availability of Li-ion batteries for the EU27 in the coming decades. They are used in a system dynamics analysis. The results of this research show that undersupply can be expected in the EU27 until 2045 somewhere between 0.5 Mt and 2.8 Mt. Substitution of Li₂CO₃ in other end-use markets and recycling can relieve the strain on Li₂CO₃ supply to some extent. In 2050, 20% of the vehicle fleet in the EU27 can be battery electric vehicles (BEVs). The lack of resources in the EU27 and the geographical distribution of lithium in politically sensitive areas suggest that the shares of lithium available for the EU27 will be less than assumed in this research. The increase in flow rate shows to be the bottle-neck for a transition to (partly) battery driven vehicles in the EU27, at least when Li-ion batteries are used. Focusing on large-scale application of BEVs with Li-ion batteries in order to substantially mitigate CO₂ emissions in transport is a futile campaign.     

Physical and chemical characterisation of metal finishing industrial wastes

In EU countries approximately 150,000 tons/year of galvanic sludges are generated by 4000 industrial units from the corresponding wastewater treatment plants. These sludges are generally classified as hazardous (European Waste Catalogue as adopted in Council Decision 2000/532/CE and as amended by Decisions 2001/118/EC, 2001/119/EC and 2001/573/CE), basically due to the presence of heavy metals. This work attempts to better understand the physical and chemical characteristics of these sludges, by studying 39 samples collected in different Portuguese industries that should represent all kinds of similar wastes independent of their place of generation. Chemical composition and leaching characteristics are given, together with density, grain size distribution, and specific surface area values. Statistical analysis was used for grouping the wastes according to chemical parameters, which might be useful to predict potential reuse as raw materials for different applications.     

Agricultural landscapes as multi-scale public good and the role of the Common Agricultural Policy

During the last 50 years, the Common Agricultural Policy (CAP) has impacted the evolution of European agricultural landscapes by driving changes in land use and farming practices. We propose a typology characterising the scales relevant for agricultural landscapes management and argue that action is required on three scales: (1) a landscape oriented management at the farm level; (2) the coordination of land managers’ actions at the landscape level; and (3) the conservation of the diversity of agricultural landscapes in the EU. We provide evidence that until now the CAP has mainly focused on the first scale. We also illustrate how agricultural policy could encourage coordinated actions at the landscape- and EU-scales. In particular, we propose policy instruments to coordinate actions of individual land owners (e.g. collective bonus in agro-environmental contracts or support to environmental cooperatives (scale 2)). We also analyse how the recognition and transposition of the European Landscape Convention could promote trans-frontier landscape cooperation in order, not only to conserve high-quality rural landscapes, but also to ensure the conservation of the diversity of EU landscapes (scale 3). This paper provides a knowledge base to support an integrated CAP design in the direction of improved landscape management, as an important component of the EU project towards more sustainable agriculture.     

Fuel poverty and vulnerability in the EU low-carbon transition: the case of renewable electricity

The European Union (EU) and member states alike are following a tradition of addressing fuel poverty and vulnerability at the point of purchase by final consumers by seeking to influence the impact of income, energy price and the built environment on the ability of household consumers to access the energy that they need. By focusing on the conditions of energy transmission in the most rapidly growing renewable electricity sector in the UK – offshore wind – this paper aims to question whether the regulatory socio-technological framing of renewable electricity transmission is reproducing conditions for fuel poverty and vulnerability in the UK. By drawing a comparison with renewable electricity transmission in Bulgaria, this paper argues that the problem might be symptomatic of the EU as a whole. While not arguing against the proliferation of renewable electricity and its importance in meeting the 2020 targets, this paper calls for expanding the scope of fuel poverty alleviation policy throughout the whole renewable electricity supply chain, building on Helm's argument that energy companies at the middle of the supply chain are better suited to deliver fuel policy.     

Amounts of non-fibrous components in recovered paper

Paper and board recycling is now a central issue in papermaking. Understanding of material flows, as a part of the total production chain, as well as, fibrous and non-fibrous component flows needs further clarification. These flows are studied at a European level, with special focus on Germany and Sweden. Non-fibrous components are discussed in terms of a material which hampers the processing of paper and board. Resource-efficiency improvements, in conjunction with economic benefits, are sought and recycling has been able to fulfil both of these. The main drivers to maximize the use of recovered paper in paper and board manufacturing, have been improved over the last decades. These drivers are cost, environmental image and good technical properties to be used as raw material.The increased recycling rate has reduced the quality of the collected paper, produced recycled paper, and replaced virgin pulp. Also, recycling as a process, like deinking, produces large amounts of waste material that has challenges to find proper utilization. These problem areas are addressed in this paper, too.One focus area in the analysis of statistical information is an estimation of the share of non-fibrous components and fibre volumes of paper in Europe (EU) for the year 2010.     

Marine Conservation and Accession: The Future for the Croatian Adriatic

The European Union (EU) is the world’s largest trading bloc and the most influential supra-national organisation in the region. The EU has been the goal for many eastern European States, for Croatia accession remains a priority and underpins many of its national policies. However, entry into the EU requires certain commitments and concessions. In October 2003 the Croatian parliament declared an ecological and fisheries protection zone in the Adriatic. Under pressure the zone was suspended, finally entering into force in March 2008 exempting EU States. There are other marine conflicts between Croatia and the EU, particularly the contested maritime border with Slovenia, and the development of the Croatian fishing fleet in opposition to the Common Fisheries Policy. Conversely, attempts to harmonise Croatian Nature Protection with the EU Habitats Directive, facilitated by pre-accession funding, has galvanised conservation policy. Since 2005 two marine protected areas have been declared, significantly increasing the marine ecosystem under protection. Finally, the development of the Marine Strategy Framework Directive is the latest EU attempt to integrate environmental policy in the maritime realm. This will have an effect not only on member States but neighbouring countries. For marine nature protection to be effective in the region the Adriatic Sea needs to be viewed as a mutually important shared and limited resource not a bargaining chip. Negotiations of the EU and Croatia have been watched closely by the other Balkan States and precedents set in this case have the potential to affect EU expansion to the East.     

Aggregates in England—Economic contribution and environmental cost of indigenous supply

Aggregates represent one of the largest material flows in the UK economy; however, the importance of these minerals in underpinning economic activity is frequently not recognised. Features such as the spatial imbalance between resources and demand centres, exacerbated by changes in demographics and public perception, are placing increased pressure on the planning system to maintain supply. This paper sets out the direct and indirect economic contributions made by the indigenous aggregates industry to the English economy through Gross Value Added and employment sustained. It describes the key role of aggregates in construction activities, assesses the links between infrastructure development and economic growth. In 2005, aggregates extraction directly contributed £810 million of Gross Value Added to the English economy. Primary aggregates are, however, extracted at a cost to the environment and this cost, based on amenity value reduction, is estimated by updating previously published contingent valuation data. Estimates for the costs associated with carbon dioxide emissions are derived from values published by the European Union and, separately, by the UK Government. These two elements combined result in an environmental cost of indigenous extraction of £445 million in 2005. Additionally, an examination of the potential for a significant increase in the level of aggregate imports into England is made and the consequences assessed. This includes an evaluation of shipping costs and port capacity, and concludes that there are significant barriers to any substantial increase in the level of aggregate imports into England. As a consequence, indigenous supply is likely to predominate into the foreseeable future.     

An analysis of future platinum resources,emissions and waste streams using a system dynamic model of its intentional and non-intentional flows and stocks

Platinum is increasingly used intentionally and non-intentionally in several applications. This has raised the concern about its future resources, emissions and losses during its life cycle. On the one hand, increasing platinum emissions might affect human health. On the other hand, the accumulated platinum in mineral waste, soil, landfill sites and construction materials as a result of the emissions, losses and the utilization of secondary materials can be seen as potential resources for platinum. This paper is aimed at (1) analyzing the long term impacts of the use of platinum intentionally and non-intentionally on its future demand and supply, release to the environment and accumulation in mineral waste, soil, landfill sites and construction materials and (2) quantifying the amount of platinum in secondary materials that would be available for platinum future supply. The analysis is carried out on a global level using a system dynamic model of platinum intentional and non-intentional flows and stocks. The analysis is based on four scenarios for the introduction of fuel cell vehicles (FCVs). The results show that platinum demand is increasing overtime in all scenarios at different rates and its identified resources are expected to deplete before the end of the century with or without the introduction of FCVs. The release of platinum to the environment and the accumulation in soil are expected to decrease when conventional ICE vehicles is replaced by FCVs. The amount of platinum accumulated in mineral waste, soil, landfill sites and construction materials by the time platinum is depleted are more than double its identified resources and would be potential resources for platinum that are available in different parts of the world. The methodology presented in this paper can be used in the assessment of other technologies and other metals.     

Extra- and intra-European Union exchanges of recovered materials and products

On the basis of the data Comext from Eurostat, this paper presents 2001 data on the main exchanges (flows) intra-European Union (EU) and with the rest of the world (extra-EU), by countries (for the main countries which are concerned), tonnage and value, by categories of recovered materials and products. A synoptic table is established, the results are summarized, and initial comments are provided. Moreover the evolution from 1995 to 2001 is discussed.The second part of the paper examines what these data tell us:

* whether they are consistent with the main theories of international trade, and which factors explain these exchanges,

* what is the extent of foreign trade of recovered products and materials,

* to what extent the EU appears as ‘an economic entity’,

* and possible effects of the enlargement of the EU.