I was honoured to be a panel expert at the FT Mining Summit in London, for a discussion on ‘Bridging the strategic and the technical: Lessons learnt and pitfalls to avoid when constructing a new mine’. I was joined by esteemed experts, and an audience of finance, industry leaders and policymakers.Here I discuss some of the key points to come out of this valuable conversation on the current challenges facing the mining sector, as we strive to build a low carbon value chain for Critical Raw Materials in Europe.
The need for speed in a rapidly changing world
What I found fascinating, but unsurprising, was that a discussion on the strategic and technical aspects of building a mine kept coming back to the mega trends that are shaping geopolitics today. Namely, supply chain security and decarbonisation. Materials matter in this era more than ever, and so does where they come from. Conflict in Ukraine and the Middle East, and fear of Chinese dominance, is creating a surge in demand for new mines and processing capacities. This is putting increased pressure on industries and governments as they vie to secure Critical Raw Materials (CRMs) – to build batteries, to feed the world and to defend nations.
As Björn Jonsson, Global Business Line Manager at ABB put it, “To do the [energy] transition from a fossil-based society, we need a lot more mines. But what I see now with the Critical Raw Materials Act coming in Europe and similar in other places, at least when talking to the politicians, they have understood that we need more metals and minerals, and also, geopolitics have accelerated it.”
The problem of permitting
We all agreed that it’s not about a lack of metals and minerals. We have those in abundance – in places like southwest Norway, where Norge Mineraler is developing an integrated CRM value chain. From investigative drilling in 2020, to recently finishing our pre-feasibility study, receiving a JORC Report and extraction rights, we are in a strong place to get things moving swiftly. The problem in many countries is permitting.
As Mikko Keto, Group CEO, FLSMidth explained, “We see countries moving fast in Central Asia, certain African countries, Saudi Arabia. But I still see too little happening in Europe. Permitting is slower than ever. I think from discovery to the building of a mine on average 18 years or thereabouts, it’s slower than ever. I don’t see that changing anytime soon, and that is actually quite disappointing. More new capacity is coming from elsewhere where we see the faster development of big mining than in Europe.”
Does the EU need to do more?
The conversation, therefore, quickly moved on to the might of the EU – and its ability to accelerate progress. There’s commitment there, of course – seen with strategies like the Critical Raw Materials Act, aimed at developing and ensuring European access to secure and sustainable CRM supply chains. The CRMA was approved in record time and sets a two-year limit for permitting; something we hope can be implemented in Norway, too. Government and local municipality initiatives are also key.
Alison Atkinson, Projects and Development Director Anglo-American, differed in her opinion on this: “I think the EU, CRMA Act, really does help in terms of broadening the request for and the drive for the development of these projects wherever they are. I think it’s helping to find the route through those that actually address the questions they have from their voters and from the local and regional perspective.”
Powering sustainable future mines
The panel discussion then moved on to what a future mine will look like, given the technological leaps and bounds we are witnessing – against a prerequisite of being as sustainable as possible. Norway, for example, has one of the highest standards and requirements for sustainability.
Sustainability is an integral part of our planning. Being in Norway with its renewable electricity will leapfrog our ability to provide carbon neutral material. And this needs to ricochet down the value chain. Electrification comes hand in hand with digitalisation – soon, if I wanted to manage our mining operation from this room, I could. It’s quite amazing.
ABB’s Björn Jonsson had some interesting thoughts on the power supplies of future mining operations. In his view: “It’s important to look at the impact this has. 4 to 7% of greenhouse gas emissions come from the mining industry. And let’s say electrifying one single mining truck reduces emissions that will take around 46,000 trees and so on. When you just think about that, that’s massive. It’s a forest. Steps towards all-electric mining are really important. It makes a difference.”
Turning challenges into huge opportunities
The panel discussion ended on the need for people to drive these technologies, and the dearth of talent that could unfold as the industry progresses. Another hurdle that must be overcome in the industry, as it builds low carbon CRMs value chains and addresses the geopolitical mega trends that are shaping our economies. But with challenge comes great opportunity and Norge Mineraler is privileged to be developing our mine in Norway – a country that has a long tradition of mining and metal production and processing industries. It also has great experience of exporting Critical Raw Materials, giving it a resounding endorsement as a secure supplier to Europe for decades to come.
