Preliminary findings _OECD field visits to ten regions in the TSI EU mining regions.pdf

Preliminary findings from OECD field visits for the project: Enhancing EU Mining Regional Ecosystems to Support the Green Transition and Secure Mineral Raw Materials Supply.

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PRELIMINARY FINDINGS
OECDMISSIONS TO EU
MINING REGIONS
23 May 2024
DG-Reform-OECD TSI EU mining regions project

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TSI DG Reform-OECD Enhancing EU mining regions
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•Flagship EU project for the Industrial Ecosystems in the EU the Directorate-
General for Structural Reform Support (DG Reform)
•Based on EU regions Thematic Partnership on Mining
•Kick-off meeting 22 September
Goals:
•Improve policy coordination and enabling factors to address the priorities of
mining regional ecosystems.
•Promote sustainable mining practices, including circularity.
•Enhance the narrative on mining and identify good practices.
•Strengthen the role of regions in implementing the CRMA

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Global Outlook

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China dominates downstream and midstream global
EV battery supply chain
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Geographical distribution of the global EV battery supply chain, 2023
Note: Li= Lithium, Ni: Nickel, Co= Cobalt, Gr= graphite
Geographical breakdown refers to where the production occurs.
Source:IEA (2024),Global Critical Minerals Outlook 2024, IEA, Paris https://www.iea.org/reports/global-critical-minerals-outlook-2024,
Licence: CC BY 4.0

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Prices of critical minerals back to pre-pandemic levels,
as supply grows faster than demand
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Mineral price developments
Annual average demand and supply growth rates between 2021
and 2023 for selected minerals
Notes: Supply growth rates are based on refined output. In the right-hand chart, base metals include iron, aluminium, zinc and copper. Battery
metals include lithium, nickel, cobalt, graphite and manganese. Rare earth elements include neodymium, praseodymium, dysprosium and terbium
Source:IEA (2024),Global Critical Minerals Outlook 2024, IEA, Paris
https://www.iea.org/reports/global-critical-minerals-outlook-2024, Licence: CC BY 4.0

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Demand for minerals would double in the most
conservative transition scenario.
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Mineral requirements for clean energy technologies by
scenario
Expected supply from existing/announced projects is getting closed to
2035 supply needs for global climate goals
Source:IEA (2024),Global Critical Minerals Outlook 2024, IEA, Paris
https://www.iea.org/reports/global-critical-minerals-outlook-2024, Licence: CC BY 4.0

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Global policy developments of producer countries
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•Guidelines: an African Green Minerals Strategy which will aim to guide African countries as they consider
how to exploit their raw materials.
•Public funds for strategic minerals investment: Brazil’s fund for exploration, Australia’s new USD 1.3 billion
fund for investment/financing extraction and processing projects, and Canada’s Cad 1.5 billion for
innovation on critical minerals manufacturing and recycling projects.
•Ensuring national and local benefits : Mexico’s 2022 Mining Reform to streamline the mining permitting
and strengthen environmental actions, Chile’s update of the Mining Royalty Law in 2023. with a mining
royalty for the exploitation of copper and lithium to distribute economic benefits.
•Export restrictions to increase national supply: China on gallium and germanium related items, Indonesia
on nickel and bauxite, Nambia and Zimabwe on Lithium.
•Permitting processes to increase domestic mining production: US’ Permitting Action Plan and EU’s Critical
Raw Materials Act (CRMA)
Source:IEA (2024),Global Critical Minerals Outlook 2024, IEA, Paris https://www.iea.org/reports/global-critical-minerals-outlook-2024,
Licence: CC BY 4.0

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Field visits to the 10 EU
mining regions

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Some milestones about the field visits to the
regions
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✓37 days with about 450 stakeholders
–10 field missions
✓26 Municipalities
✓12 Mines visited
✓16 peer reviewers

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Fact-finding missions to the regions
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Applied OECDdatatoolkit to the 10 regions
0
50
100
150
200
250
AlentejoOrebroCentral GreeceAndalusiaCentral
Portugal
KainuuNorth KareliaLapland Central
Ostrobothnia
Oulu
Community Economic Environment
OECD average
•Correlation between economic
and community well-being:
Regions with strong economic
performance, like Oulu and Orebro,
also exhibit high levels of
community well-being.
•Contrasting economic and social
patterns: There is significant
variation in economic and
community well-being across
regions, highlighting diverse
economic conditions and social
cohesion levels.
•Variable environmental impact:
Lapland, Alentejo, Oulu or Kainuu
show good environmental
performance (in GHG per capita).
Note: The figure reflects composed index of well-beingdimensions according to the OECD toolkit to measure regional well-being .
Economic dimensioniscomposedby indicators: economic diversification, unemployment, employment growth and innovation
Community dimension is composed by indicators: gender balance, population growth, share of young population, death rate, and education level.
Environment: change of green land cover, anomalies in soil water content and greenhouse gas, (GHG) emissions from the mining supply chain and the electricity generation
Source: OECD data toolkit to measure Mining Regions Well-being. https://oecd-main.shinyapps.io/mining-regions-wellbeing/
Composed indicators to measure mining regions wellbeing (2020)

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Mining municipalities have different stories
to tell
Rural municipalities hosting mining operations and other nature-related activities (tourism)- e.g. Sotkamo and Kitiila- experienced better population
dynamics than the regional average

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Preliminary findings

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Covering different parts of the mineral value chain
Mining
Processing/
downstream
R&D
Upstream global
services
Oulu
North Karelia
Orebro
Orebro
North Karelia
Kainuu
Andalusia
Andalusia
Central Greece
Central
Osthorbotnia
Lapaland
Andalusia
Lapaland
Kainuu
Kainuu
Alentejo
Central
Osthorbotnia
Central Portugal
Alentejo
Main assets of each region
Deposits
All
Portugal Centro

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Relevant mineral and mining know-how suppliers
for the EU
Region Production assets (examples)
Lapland: EU’s largest gold producer, single chrome producer, Low CO2 Nickel production
North Karelia: Cobalt potential, mining providers (METSO) and advance mineral and tailings research .
Oulu: Hub of mining education and research capacity
Kainuu: Top Nickel mine in EU, integrated processing for batteries with biological process, uranium recovery.
Central Ostrobothnia:First EU’s integrated high-purity lithium operation.
Central Greece: Largest EU Bauxite producer, mining culture/ quarries
Centro Portugal: 2
nd
largest producer of tungsten in the EU, limestones/ceramics value chain and lithium deposits
Alentejo: Zink producer, and 6
th
largest copper producer in the EU, Marble.
Andalusia: 2
nd
largest copper producer in the EU with a smelter, non-metallic mining production.
Örebro: About 10% of EU Zinc, world-class mining provider(EPIROC)

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Geology •Top suppliers of CM: Copper (andalusia), Bauxite, Gold, Nickel
•Unique mienrals in EU: Chrome,
•Important depostis: Lithium, Paltinium
Education and
Innovation facilities
•Top Universities (Oulu)
•Deconcentrated training (North Karelia, Lapland)
•Initiatives in primary-education (Portugal)
Institutions for mining
Governance and
history
•Addressing environmental liabilities (Andalusia)
•Rehabilitation of mines (Portugal)
•Subnational strategies for mining
•Culture of mining in municipalities (old history and partnerships).
Green infrastructure
and projects
•Integrated projects for clean technologies (Central Ostrobothnia, Kainuu)
•Recycling and circularity initiatives
•Green and competitive energy supply (Finland, Sweden)
Key strengths

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Workforce and availability
of skills
•Shortage of skilled workers for private and public sector (Env. Skills; operators)
•Lack of students in mining (in some regions)
•Lack of accessible training in mining municipalities
•Male dominated sector and education.
SMEs and business
approach in innovation
•Gaps on information and capacity-support to access fund and join projects
•Lack of business approach in innovation projects led by universities
•Incentives for circular economy projects
Permitting/
regulation
•Lengthy/ uncertain permitting prevents investment, innovation, efficient closure.
•Lack of standardization to address appeals and communicate changes
•Classification of waste affects valorization of mining waste
Community engagement,
and misconceptions of
mining
•Old regulation and abandoned mines affect perception
•Exploration projects with deficiencies in communication
•Lack of communication of local benefits, going beyond economy
•Pressures from no-local groups.
Key challenges

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Good practices
Communication
& Env. actions
-Communication project
with workshops (NK and
Kainuu)
-New companies in
charge of old env.
liabilities (Andalusia)
-Museums and outreach
to youth people
(museums-GR, school
games-PT, tiktok-
Andalusia)
Innovation/
circularity
-Reusing old mine
(Oulu-Calliolab, Orebro-
Golf)
-Research on mining
sustainability (NK-GTK
Mintek, Oulu-OMS,
Kainuu-AWE)
-Sustained public-
private collaboration to
connect SMEs (Alentejo
and NK)
Skills
-Delocalised vocational
education with
machinery (Finland)
-Short-tailored technical
courses (Portugal Centro
(Leira), Lapland, NK)
-Mapping supply-
demand of skills (Central
Ost.)
Mining
Governance
-Municipal mining plan
(Lapland)
-One-stop shop
(Andalusia)
-Leveraging ESG for long-
term development
(Orebro-Diversification
Fun, community/sport
infrastructure)

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Policy priorities for National action
Permitting process
-Greater capacity and standardisation to address appeals
-Statements of Geological Institute in permitting.
-Standardise and digitalised approach to evaluate applications
-Clear guidelines for private sector (EIA-tailings, closure)
-Classification of waste mining.
-Coordination across agencies for permitting process (one-stop shop) (e.g.
Andalusia)
Engagement
-Better communication/engagement with local govs. for exploration
projects.
-Enhance promotion of synergies among mining and other sectors
-Support network of mining municipalities.
Strategic vision and investment
support
-
-Better incentives for innovation and co-funding projects
-Involve the Geological Institute in international promotion and innovation
for the sector (e.g. Finland)
-Improve environmental monitoring capacity for mining projects

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Preliminary policy needs at regional level
Communication
& engagement
-Guidelines and better
engagements since
exploration phase
-Early engagement on
closure and transition
plans.
-Common Coms. Project
(beyond economic
benefits)
-Geological Institutions
linked with dissemination
Infrastructure
-Forward-looking land
use plans for future
projects (road usability).
-Deconcentrated
renewable energy (e.g. in
tailings)
-Ensuring Community
infrastructure for
liveability
Innovation/
circularity
-Business approach in EU-
innovation projects
-SMEs in innovation and
circularity (info. &
business dev. platforms)
-Link research with
regional plans.
-Platform for synergies
among companies (inter-
sectorial cooperation)
Skills
-VAT & University
cooperation for skill needs
-Delocalised training
-training outreach with
gender focus.
-Integration of foreign
workers (e.g. reducing
language barriers)
Mining Governance
and Env. aspects
-Agreements with mining
companies on local
priorities (housing, env.
compensation)
-Remediation/rehabilitation
of abandoned mines.
-Strategic view to link
mining with local economy
-Better informed local govs.
on ESG actions

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Next steps
•8-10 October: Dissemination and engagement in 2024 OECD mining regions conference
in Ontario, Canada
•4Q2024: Inter-regional meeting in Bordeaux, France.
•1Q2024: EU representatives and region to discuss advance framework for action
•Summer 2025: Launching results.

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www.oecd.org/fr/regional/mining-regions-cities.htm