MINERAL RAW MATERIALS ARE THE FUTURE THE IMPORTANCE

MINERAL RAW MATERIALS ARE THE FUTURE – THE IMPORTANCE OF MINING IN EUROPE TO MEET THE DEMAND Roman Stiftner General Secretary of Eumicon Managing Director of Austrian Mining and Steel Association and Austrian Non Ferrous Metals Federation

„NO PRODUCT WITHOUT MINERAL RAW MATERIALS – NO DAY WITHOUT MINERAL RAW MATERIALS“ § Nearly no production that is not based on mineral raw materials or for which at least tools or machines based on mineral raw materials are used to produce them. § Due to their different properties, raw materials are used for very diverse applications. § And the demand for mineral raw materials will grow. © Photos: www. pixabay. com

THE IMPORTANCE OF THE RAW MATERIALS ECONOMY Value added networks § Mining is the beginning of the value chain § Mineral raw materials are extracted in mines § Nevertheless is the influence of mines larger than the pure supplier of raw material for the subsequent production entity

MAIN DRIVERS OF DEMAND OF RAW MATERIALS § World population growth (world's population has doubled over past 50 years) § Growing wealth (GDP has grown tenfold in past 50 years) § § Urbanisation Digitalisation Low-carbon transition Transformation of industry energy use to electricity („Break through technologies“) 4

THE RISE OF SUPERCOMPUTERS IS NOW 5

DIGITIZATION ACROSS THE WHOLE EU ECONOMY Auto. Finance Manufa Media & motive Sector c-turing Healthcare Basic Oil & Retail ICT Technology Entertainment (Amazon) (iphone) (Digital (3 D- (autonomous(E-Health) Materials Gas (Youtube) driving) Currency) Print) Source: Global Center for Digital Business Transformation, an IMD (Lausanne, Switzerland) and Cisco Initiative with Accenture https: //www. accenture. com/de-de/insight-digital-oil-and-gas) Time Page 6

ELEMENTS USED IN THE PRODUCTION OF COMPUTER CHIPS (1980 S) © www. usgs. gov

ELEMENTS USED IN THE PRODUCTION OF COMPUTER CHIPS (1990 S) © www. usgs. gov

increasing complexity of products!! (61 out of 92 elements) ELEMENTS USED IN THE PRODUCTION OF COMPUTER CHIPS (2000 S) © www. usgs. gov

EUROPE'S LOW-CARBON TRANSITION NEEDS MORE RAW MATERIALS § Every conceivable low-carbon product contains raw § § 10 materials in some shape or form, and Europe's low-carbon transition will require even more. Break-through technologies for production of raw materials. . .

RATIO OF GLOBAL MINERAL MINE PRODUCTION © www. usgs. gov 2000 -2009 compared to 1970 -1979

EU 2050 GOALS § EU 2050 goals require breakthrough innovations for low-carbon § § 12 raw materials production The EU’s ambition for a 2050 decarbonised economy will challenge European metals producers to go beyond their already high standards battle of all sectors of industries for “green electricity” foreseeable

WHY IS IT A TOPIC FOR THE RAW MATERIALS ECONOMY? CURRENT (2012) AND PROJECTED (2030) ANNUAL DEMAND OF SPECIFIC RAW-MATERIALS Where will they come from in the future? Source: European Commission, Raw Materials Scoreboard 2016

EU - CIRCULAR ECONOMY – PACKAGE RECYCLING – A SOLUTION? Aim: From pure waste management to circular economy … that does take into account all aspects of life cycle of materials and products: Production and product design via use to re-use, recycling and recovery. Metals are „permanent materials“ – many are endlessly recyclable -- BUT: 14 Quelle: European Parliament

RAW MATERIALS IN THE CIRCULAR ECONOMY § There will always be mineral raw materials, that § are not recyclable, because they are consumed in the § § § production (graphite electrodes in the EAF steel industry) are not recyclable, as they are, processed, part of a product (e. g. iron ore in steel etc. ) are not or hardly recyclable, because they appear in very small amounts in products (e. g. REE etc. ) are not or hardly recyclable, because materials become more and more complex. Nevertheless exactly these mineral raw materials are essential for „green“ materials, products and technologies.

RAW MATERIALS IN THE CIRCULAR ECONOMY Primary raw materials will be necessary also in the future § As recycling alone will not be sufficient to feed the § § demand the supply of primary raw materials will be irreplaceable Therefore it is essential to § not only foster recycling, but § also emphasize the importance of primary raw materials within the circular economy. An adequate Raw Materials Policy is necessary!

CONCLUSIONS § Digital is a clear growth opportunity - value chains might change § § § completely through digitalization Digital will further improve operations – plant design through “Mining 4. 0” Enormous additional demand of electrical energy transformation to the low-carbon economy boosts demand of raw materials. Industry has a leading role in the EU innovation ecosystem. Raw materials must have a priority in the FP 9 innovation program. New type of education and job profiles will be required to transform the industry. Attractiveness of technical education important! Ø The EU raw materials industry is a solution provider for innovation, low-carbon energy and brings added value to the EU! 17

THANK YOU FOR YOUR ATTENTION! GLÜCKAUF! Roman Stiftner General Secretary of Eumicon Managing Director of Austrian Mining and Steel Association and Austrian Non Ferrous Metals Federation Phone: +43 (0) 590 900 3311 roman. stiftner@wko. at