Raw materials are essential for the sustainable functioning of modern societies. Europe is a modern, industrialised region with a high standard of living that necessitates elevated per capita consumption of metals and energy. The EU is highly dependent on import of metallic minerals, as the regions domestic production is limited to about 3% of global production.
The EU, like many other regions, are working to gain insight into current and future supply security of strategic metals including rare earth elements. It is acknowledged that historic availability may not reflect the future deliverability of the metals, which are increasingly influenced political and national-interest issues. Securing reliable and undistorted access to raw materials is an important factor for the EU's competitiveness and, hence, crucial to growth, trade and employment expansion. In addition, European manufacturers and consumers place a high regard on the environmental and social cost metals and energy, and demand clean and efficient supply chains.
In November 2008, the European Commission Enterprise and Industry Body delivered
"COM(2008) 699 : The raw materials initiative --- meeting our critical needs for growth and jobs in Europe" which identifies and addresses resource security issues for rare earth elements and other metals. This communication states:
"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 provide a total value added of € 1 324 billion, employment for some 30 million people all depending 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." "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."
For this and supporting documentation regarding resources in the EU see:
http://ec.europa.eu/enterprise/policies/raw-materials/index_en.htm
- Download COM(208)699 here
- Download the COM(208)699 Staff Working Document here
- Download a November 2008 presentation titled "Security of International Supply" by C Hebestreit (EuroMines) here
- Download a June 2007 presentation titled "Sustainable metal supply in Europe" by P Wehid (European Technology Platform on Sustainable Mineral Resources) here
The concentrated supply of rare earth elements, with greater than 95% of metal currently sourced from China, has resulted in a supply chain for European end-users that is not sufficiently robust when considering high capital investments in modern technologies. Over the last seven years, China has reduced the amount of rare earth elements available for export by approximately 40%, by the application of quotas. Furthermore, export tariffs have increased the cost of rare earth elements to non-Chinese consumers to encourage to raw REE materials to be downstream processed within Chinese borders.
By 2012 China may produce only enough REE ore to satisfy its own booming domestic demand, creating a potential crisis as Western countries rush to find alternative supplies. European and other Western countries risk supply constraints for some highly sought rare earth elements vital to a host of green technologies. Failure to secure alternative long-term sources of would affect the role Europe can play in the manufacture and development of low-carbon, energy efficient and modern medical technology.
Tasman Metals Ltd's exploration project portfolio is uniquely placed in Europe, with the capacity to deliver rare earth metals to European consumers. Scandinavia is the principal mining region in the EU, with strong mining law, low taxes and infrastructure that is "second to none".
