With global supply chains under great strain, there are serious concerns about Europe's readiness to accelerate its shift to renewable energy technologies – such as wind turbines and solar PV systems, which require large amounts of fossil raw materials to develop.< /p>
As far as the sources of raw materials are concerned, Europe's industry and economy are largely dependent on international markets. Today, critical raw materials are mainly mined in third countries, which also supply Europe. Although the EU has some domestic production for certain critical raw materials, it is still dependent on imports.
The risks associated with the concentration of production are exacerbated – in many cases – by low rates of substitution and recycling. .
In addition, the effects of the pandemic and in particular the disruption of global supply chains, as well as the war in Ukraine, have forced Europe to review its policies for the supply of critical raw materials with the aim of reducing its dependence on third countries and ensuring reliable access to minerals and other elements, which are necessary for the transition to clean energy.
In September 2022, the President of the European Commission, Ursula von der Leyen announced the European Act on Critical Raw Materials, which aims to ensure the Community's access to the necessary raw materials that will enable it to achieve its goals, as well as becoming the first climate-neutral continent in the world.
Among other things, the purpose of the legislative act, which will be debated on March 8, 2023, is to implement strategic projects throughout the supply chain, from the stage of extraction to processing and from processing to recycling, thus creating strategic reserves for raw materials, the supply of which is at low levels
The new action plan will promote a common understanding of which critical raw materials are of strategic importance for both Europe's dual transition to a green and digital economy, as well as for its defense needs. Their economic importance, concentration of supply, strategic applications and projected supply gaps will be considered.
In addition, it will determine the necessary elements for the development of the technologies related to the Green Deal, as well as specific strategic projects, which will be financed by private or public resources.
National competences and powers are not affected by the act, but Member States will probably be obliged to give priority to projects of strategic importance. “The Legislative Content Act on Critical Raw Materials is an ambitious plan as well as an opportunity for Europe to make up lost ground in the global race to secure critical metals and minerals,” said Mr. Mark Rachovides, President of the Cyprus Mining company, Venus Minerals. “As a country with significant copper reserves, Cyprus can also benefit from this development, as the initiative can contribute to reducing the risk of implementing new projects, through a special financing tool,” he added.
“The new EU action plan can also contribute to Cyprus' efforts to harness new technologies to recover important metals from mining waste created decades ago, while strengthening the effort to rehabilitate abandoned mines located in various parts of the island”, he noted.
Mr Rachovides concluded that “the removal of historic mining waste can also free up patches of land that can be used for outdoor and recreational activities as well as industrial, urban and commercial developments. ».
