SUPPLY OF RAW MATERIALS

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SeCuRING GeRMANY‘S AND euROPe‘S

SuPPLY OF RAW MATeRIALS

Strategy Paper of the CDU/CSU Parliamentary Group

Decision from July 6

th

2010

Presented on the Occassion of the Congress on Raw Materials,

July 7

th

2010 in Berlin

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Raw materials are indispensable for modern industrial and service so-cieties. A secure supply of raw materials at affordable prices is thus of vital importance for Germany and Europe. Rising energy prices and the recurring gas conflict between Russia and Ukraine have revealed Germany’s and Europe’s dependence on oil and gas imports to everyo-ne and placed this issue squarely on the political agenda. Comparable challenges regarding the supply of non-energy raw materials have not yet received the same attention – although the supply risks, especial-ly in the case of several high-tech metals, are higher than in the case of oil and gas.

The supply situation is likely to permanently remain tight, for due to the transformation of numerous developing countries into emerging economies the demand for raw materials will remain high or even in-crease in the future. Moreover, there is a growing risk of raw material conflicts in many producing countries, fuelled by internationally une-qual access to these resources as well as by a new geography of trade attributable to the rise of the emerging economies.

Securing raw material supplies is first and foremost the task of the raw material processing industry itself. The responsibility of the state is li-mited to creating the political, legal and institutional framework for an internationally competitive raw material supply. It must work within in-ternational bodies – especially within the EU, the OECD and the WTO – to bring about the greatest possible liberalisation of global markets. Parallel to these endeavours it can provide flanking support for spe-cific activities by companies. In view of the mounting global challen-ges, flanking measures by the Federal Government and the European Commission will take on ever greater importance. In addition to mea-sures to secure access to raw materials, other important steps to red-uce dependence on imports include boosting resource efficiency and optimising material cycles to increase the supply contribution from re-cycling of scrap and waste materials.

Continuing dependence on raw material imports

Germany is not a resource-poor country. Its demand for gravels, sands, stones, soils, potassium salt and rock salt is completely met from do-mestic deposits. As in other EU Member States as well, however, some raw material deposits have been “planned over” through the designati-on of protected areas and allocatidesignati-on of land to other uses and are thus inaccessible to raw material exploitation.

In the case of most other raw materials, the German economy is either significantly or entirely dependent on imports. Prime examples include copper and iron ore, which – together with other metallic raw materi-als that must be imported – are indispensable for a multitude of sec-tors ranging from aerospace technology and automobile manufactu-ring to electrical engineemanufactu-ring and the electronics industry. Energy raw materials, metals (ores and metals for the primary processing stage) and non-metals with a total value of 126.7 billion Euros were impor-ted in 2008.

In addition to these primary raw materials, our economy also requires substantial quantities of so-called secondary raw materials, i.e. scrap and waste materials that are more energy efficient to recycle and reu-se. Within the EU, the demand for secondary raw materials has mean-while risen to between 40 and 60 percent of input for metal produc-tion.

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One major consumer of raw material imports is the industry of such importance to our economy: the export industry. Roughly 80 percent of the raw materials imported by German companies from abroad are re-exported in refined form.

Germany is also highly dependent on imports of so-called high-tech metals such as cobalt, platinum, titanium and rare earths. These stra-tegic raw materials are indispensable for key technologies and hence for our country’s technological future. They are increasingly essential for the development of technologically sophisticated products as well as for the shift to sustainable production and environmentally friendly products in areas such as electromobility.

Fundamental changes on the global markets – availability of raw materials

While it is an incontrovertible fact that the resources of the Earth’s crust are finite, in principle there are sufficient mineral resources to meet global demand – also in the long term. The high price volatility observable on the raw material markets since the turn of the millenni-um is not, as is often erroneously assmillenni-umed, attributable to the exhau-stion of raw material deposits. The static reserves-to-production ratio (RPR) for chromium, for instance, is 600 years, and the RPR for the platinum metals is still as high as 190 years. Nevertheless, the pri-ces of these and other metals with mid-range RPRs are highly vola-tile. The market turbulence is the result of an imbalance between sup-ply and demand.

The supply of raw materials is global, tightly interlinked network and is thus exposed to a wide range of influences that can be controlled only to a limited extent by any one state (with the assistance of national car-tel authorities, for instance), much less by any one company. Market disruptions can have a variety of causes. They usually do not manifest themselves in a complete interruption of raw material supplies but rat-her in delivery delays, concentration processes in the mining sector, with negative consequences for competition, or instability in produ-cing countries, which can lead to the abrupt loss of entire production sites. Market disruptions also, however, occur when – as has been ob-servable in the past – raw material demand unexpectedly soars as a result of rapid growth in developing and emerging countries or revolu-tionary technological advances cause demand to peak or plummet. The potential for disruption is particularly great where no (or no rea-dily available) substitutes exist for scarce and expensive raw materi-als. There is no substitute for chromium in stainless steel, for instance, nor for cobalt in wear-resistant alloys, nor for indium in liquid crystal displays in flat-panel screens, nor for neodymium in powerful perma-nent magnets.

In addition, there is competition for certain raw materials between va-rious economic sectors. Tantalum, for instance, is needed for electrical engineering, steel refining and surgical equipment; platinum is essen-tial for the chemical and automotive industries.

The high volatility of raw material prices in recent years has been lar-gely attributable to misjudgements on the part of the market players, especially the mining companies. One initial misjudgement was that technological innovations were not anticipated (in time). A prime ex-ample was the sharp rise in the demand for and price of tin as a re-sult of the switch by the electrical and electronics industry to

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lead-free solders, which require a higher percentage of tin. The impact of new technologies on raw material demand demonstrates the power of technological change to shape developments. A study1 commissioned

by the Federal Ministry of Economics and Technology and conducted by the Institute for Future Studies and Technology Assessment (IZT) in cooperation with the Fraunhofer Institute for Systems and Innovation Research (ISI) explored the question of how future industrial uses of emerging technologies will influence raw material demand and upon which raw materials such innovations will depend in particular. In the case of some of these high-tech raw materials, demand in the year 2030 is estimated to be many times the amount of current global pro-duction. By 2030, for example, the demand for gallium and neodymi-um induced by foreseeable technological innovations will be six and 3.8 times higher, respectively, than their total present worldwide pro-duction. Demand drivers for gallium are thin-layer photovoltaics and high-speed integrated circuits, for neodymium the aforementioned high-performance permanent magnets. Information on which innova-tions will trigger a boom in demand is strategic information for raw materials companies, for it enables them to adjust their production ca-pacity in time to meet future needs.

The second misjudgement concerned the breakneck development of the Chinese economy and its insatiable appetite for raw materials, which caught many market players by surprise. It is above all due to China that the annual growth rate of the global economy, which ave-raged a moderate 3.8 percent for years, has risen to five percent since 2004. Driven by China’s robust economic growth, the raw materials super cycle of the past five years has reached a magnitude heretofore unseen in modern economic history. The recent global economic and financial crisis admittedly caused prices for most metallic raw materi-als to drop but only, however, to levels that are comparatively high for a global economic crisis and from which they are already starting to rise again.

While developments in China were the primary trigger of the most re-cent raw materials boom, which lasted from 2003 until the economic and financial crisis of 2008/2009, they were not its sole cause. The boom was also attributable to the cyclical investment behaviour typical of the raw materials sector. While India is not yet playing a major role as a buyer on the raw material markets, given the swift pace of Indian economic development it is undoubtedly just a matter of time before it will. Thanks to the vote of confidence given to Prime Minister Singh’s reform-oriented government in the May 2009 parliamentary elections, India remains on the path of reform. China and India were the only si-zeable economies to still post significant growth rates in the crisis year 2009, namely eight and five percent respectively. This year, too, their growth rates will lie well above those of the Euro-Atlantic area. The high and – following a temporary decline in 2008/2009 – again rising raw material prices are not the result of a supply shock but rat-her the consequence of high demand driven by strong global econo-mic growth and, to a certain extent, by speculation.

1 IZT/ISI, Rohstoffe für Zukunftstechnologien. Einfluss des branchenspezifischen Rohstoffbedarfs in rohstoffintensiven Zukunftstechnologien auf die zukünftige Rohstoffnachfrage, Schlussbericht, 15 Mai 2009. (Final report published in abridged form on 2 February 2009 as “Raw materials for emerging technologies. The influence of sec-tor-specific feedstock demand on future raw materials consumption in material-intensive emerging technologies”)

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For the future it can be assumed that the growth of India and other emerging economies will have a noticeable impact on the demand for raw materials. The success of less developed regions of the world in closing the economic gap is desirable and the prerequisite for a peace-ful future. Catch-up development on the part of poor countries will in-evitably push global economic growth above the longstanding average of the past. But even if future annual economic growth again declines to an annual rate of 3.8 percent, global economic performance in the year 2030 will already be 2.4 times the figure for 2006. This will un-questionably have a strong impact on future raw material demand. Demand for mass raw materials (so-called commodities) with a broad spectrum of uses such as iron, steel, copper and chromium is apt to be driven more strongly by global economic growth in the future, whereas demand for high-tech metals such as gallium, neodymium and indium will more likely be driven by technological advances. In the case of the platinum metals, tantalum, silver, titanium and cobalt, both drivers will likely have a similar impact on demand.

One distinctive feature of metallic raw materials production is their fre-quent occurrence together (“association”) in ores. If ore production rises due to higher demand for a certain metal, larger quantities of other metals associated with it will be produced as well, and vice ver-sa. The extremely scarce metal indium, for instance, is recovered as a by-product of aluminium ore (bauxite) and zinc.

In the case of several metals such as platinum, indium and neody-mium, supply security is deemed critical for three important reasons. Firstly, these are strategic raw materials for our industry. Secondly, not only is our dependence on imports very high, but the number of sup-plier countries is very small. And, thirdly, there are presently no sub-stitutes for these raw materials.2 China is the largest producer of

nu-merous high-tech metals but is increasingly utilising them in its own emerging high-tech industries. Beijing has already imposed export re-strictions on many of these metals, which is especially serious in cases such as neodymium, where China presently accounts for 97 percent of global production and hence effectively has a monopoly on global extraction.

New risks as a result of distorted global markets

The most important extraction areas for many high-tech metals lie in China, Africa, South America, Russia and Australia. Some of these countries and regions are economically or politically unstable; others are characterized by considerable government influence on the eco-nomy.

Emerging economies are increasingly pursuing strategies that in ef-fect secure their own raw material processing industries privileged and cheaper access to domestic raw material deposits and place foreign competitors at a disadvantage. More than 450 export restrictions for more than 400 different raw materials have meanwhile been identified by the EU.3 In addition, several emerging economies are seeking to

ob-tain privileged access to resource-rich countries. In the past few years,

2 In the year 2000, for example, the mobile phone boom triggered shortages in the supply of tantalum. Such (temporary) bottlenecks can be expected more often in the future. 3 Among the most important countries to have taken such steps are China, Russia, Ukraine,

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for example, China has participated in a number of large-scale projects to exploit raw material deposits in Africa.4

A typical feature of a raw materials boom is an increasing concentrati-on and vertical integraticoncentrati-on of companies within the mining and proces-sing sectors. Continuation of this development can lead to restraints of competition and thus to higher (oligopoly) prices.

More than 50 percent of the important raw material deposits lie in countries with a per-capita income of less than ten U.S. dollars per day. For many of these poor raw material exporting countries, their re-source wealth has proved to be a “curse”. The phenomenon of pover-ty despite resource wealth can be explained by macroeconomic con-ditions (“Dutch Disease”) as well as political and institutional short-comings (bad governance). There are, however, two laudable excep-tions: Chile and Botswana.

More than half of global raw materials production occurs in coun-tries classified by the World Bank as politically unstable or extreme-ly unstable. In the case of metallic raw materials, over 60 percent of production stems solely from unstable or extremely unstable coun-tries, and the entire global production of several metal ores stems from countries that fall in these categories. The political risk that the-se countries could ceathe-se to function as suppliers due to military con-flicts, terrorism or the nationalisation of raw material sources is rela-tively high, above all in central Africa.

Establishment of supply security in globalised markets

Boosting material efficiency and resource productivity

The critical dependence of German and European industry on certain raw materials highlights the urgency of more efficient use of primary raw materials and increased recycling of scrap. Action must hence be taken to promote resource efficiency, recycling and substitution of raw materials as well as increased use of renewables. One important step is to support processes for the recovery of small amounts of raw ma-terials from complex products. There is also a need for greater invest-ment in efficient recycling technologies for cost-effective recovery of secondary raw materials that are comparable in quality to primary raw materials. In the case of metals, for instance, secondary raw materials are the only significant domestic source of supply. Recycling also im-proves energy efficiency, above all in metal production, for the proces-sing of secondary raw materials requires considerably less energy in-put than the processing of primary raw materials.

Exploitation of domestic raw material deposits

In order to secure the supply of domestic raw materials, exploitation of new raw material deposits must be made possible. To this end the Federal Government, together with the legally responsible constituent states (Länder), should ensure that an equitable balance is struck bet-ween raw material extraction and other interests. In the EU, too, a fra-mework must be put in place to permanently secure access to the raw materials available in Europe. Securing a sustainable supply of raw materials from domestic sources also presupposes more knowledge about the deposits existing in the EU. Through greater involvement of the national geological surveys in land use planning – and better

4 In Zambia (copper), DR Congo (copper, cobalt), RSA (iron ore) and Zimbabwe (platinum), for example.

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Europe-wide networking among these institutions – access to raw ma-terials deposits could be kept open for later exploitation.

Strategies for securing imports of raw materials

Securing supplies of raw materials is first and foremost the task of the companies themselves. Companies consequently need a strategy that must begin with the procurement of strategic information on the deve-lopment of their own needs (taking into account technological advan-ces and improvements in resource efficiency), impending raw material shortages and possible price increases. In order to meet their raw ma-terial needs, companies have a variety of instruments at their disposal to secure raw material supply channels, identify and cushion raw ma-terial shortages and price increases, and foster direct communication with raw material producers and suppliers.

One possibility for securing raw material supply channels is acquiring a stake in raw material extraction (reverse integration). This increases a company’s chances of obtaining a given raw material in sufficient quantity and quality at the required time. Acquisition of such a stake, however – not to mention the direct purchase of a raw material de-posit – entails considerable expense. For this reason the Federation promotes projects it considers to be particularly worthy of support or in the particular interest of the Federal Republic of Germany through untied loan guarantees. Projects deemed worthy of support in parti-cular include those that serve to enhance the security of the Federal Republic of Germany’s raw materials supply. The prerequisite is that a supply of the raw materials in question be in the interest of the econo-my as a whole and that they be imported to Germany on the basis of long-term supply contracts with domestic customers.

A realistic option for most companies is to secure their raw materials supply through long-term supply contracts with a mining company, perhaps in conjunction with a partnership agreement. Diversification of suppliers is another classic instrument for spreading risk. Various instruments (OTC forwards, swaps and options as well as broadband strategies) are also available to hedge against short-term increases and fluctuations in raw material prices. However, such hedging instru-ments can only be used for those raw materials for which there is an official reference price (e.g. market price). A further instrument is the cultivation of good business relationships between the partners of a value chain. Through such “good practice” it is possible to prevent crises from threatening the existence of individual partners and at the same time ensure the viability of all.

Reliable access to raw materials that is unimpaired by market distor-tions is an increasingly important precondition for the competitiveness of Germany and the EU.

Due to the high dependence of Germany and the EU on raw materi-al imports, free globmateri-al markets devoid of trade distortions are a fun-damental prerequisite for a secure raw material supply. However, the international raw material markets are characterised to a considerable degree by distortions of trade and competition. Prominent emerging economies such as China are strategically employing trade- and com-petition-distorting measures in order to safeguard their own raw mate-rial supply. Additional trade-distorting measures have been implemen-ted in the wake of the financial market crisis as well. It is up to the EU, in collaboration with the Member States, to use all available

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instru-ments to work for open and functioning global raw materials markets and for equal competitive conditions for all companies.

Political awareness of raw materials issues has unquestionably increa-sed in recent years: The Federal Government has meanwhile made dis-tortions of trade and competition in the raw materials sector the sub-ject of bilateral talks. The European Commission is now utilising the WTO arbitration framework to take action against violations of WTO agreements on raw materials trade. In the context of bilateral WTO ac-cession negotiations, moreover, it is demanding that export restric-tions on raw materials be dismantled.

In order to counter the problem even more effectively, the European Commission proposed as early as 2006 that the WTO rules be sup-plemented to include a prohibition of export duties on raw materials. Due to the ongoing resistance of the developing countries in particu-lar, however, implementation of this proposal has not yet occurred and currently appears rather unlikely.

In light of the difficulty in achieving improvements at multilateral level in the short and medium term, endeavours at bilateral level will take on particular importance.

In bilateral talks with the countries concerned – not only trade talks but also foreign and development policy consultations – the Federal Government and the European Commission must consistently and re-solutely work for the elimination of trade- and competition-distorting measures. These efforts should be coordinated within the framework of a common raw materials policy encompassing trade, foreign and development policy aspects such as the raw materials initiative alrea-dy put forward by the European Commission. Corresponding initiatives are essential at both national and European level and must be effec-tively dovetailed with one another. In short: Germany and Europe need an active and integrated raw materials policy.

In addition, prohibitions of export restrictions on raw materials must be made the subject of bilateral trade agreements negotiated by the European Commission. Comprehensive elimination of such restrictions must likewise be pursued in negotiations leading to the conclusion of WTO accession agreements.

The political challenges associated with securing non-energy raw ma-terial supplies are manifold and complex; they concern economic and environmental policy as well as foreign, trade and development policy. Today responsibility for many of the aforementioned policy areas lies entirely or partially with the European Commission. In order to secu-re Europe’s raw material supplies, a holistic policy approach is thesecu-re- there-fore needed in which the EU appropriately complements national mea-sures.

At the request of the EU Competitiveness Council, the European Commission commenced development of such a holistic policy ap-proach during the German Council Presidency in the first half of 2007. In November 2008 it submitted a raw materials initiative for meeting critical needs for growth and jobs in Europe that was based on three pillars: securing access to raw materials on world markets at undis-torted conditions, fostering sustainable supply of raw materials from European sources, and reducing the EU’s consumption of primary raw

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materials.5 To secure access to needed raw materials, it strives for

bet-ter management of the existing strategic partnerships6 and manifold

contacts with most of the countries and regional groupings of relevan-ce in this context. In particular, the dialogue with Africa on acrelevan-cess to raw materials is to be reinforced within the framework of the existing action plan. Moreover, the dialogue with emerging resource-rich eco-nomies such as China and Russia is to be reinforced with a view to re-moving distortive measures (such as export restrictions). And, finally, a dialogue is to be pursued with similarly resource-dependent coun-tries such as Japan and the USA to identify common interests and de-vise joint initiatives to strengthen free world trade. In addition, the EU will work to promote enhanced international cooperation and support awareness-raising within the G8, OECD, UNCTAD and UNEP. Another welcome development is the European engagement to address futu-re challenges – such as the issues of deep-sea mining, the Arctic futu- regi-on and the security of internatiregi-onal trade routes for raw materials.7 In

keeping with a holistic approach, the EU will also work through its de-velopment policy to strengthen state structures in many weak raw ma-terial producing countries and support sustainable resource manage-ment. The Federal Government, too, will support partner countries with raw materials deposits of their own in creating the conditions for sustainable and stable development. Through the promotion of clear state control structures, transparency and anti-corruption measures, the foundations will be laid for reliable trade partnerships.8

The aim of both the Federal Government and the EU is to help boost the supply of raw materials by promoting a favourable investment cli-mate. This includes calling on the competition authorities of both the EU and the Member States to more closely follow international con-centration processes in the raw materials sectors in order to prevent corporate mergers and acquisitions from endangering the supply of raw materials at reasonable prices.

The EU raw materials strategy must be resolutely implemented and ef-fectively integrated with the raw materials strategies of the EU Member States. In Germany, the elements of a raw materials strategy presented at the second raw materials conference of the Federation of German Industries (BDI) should be further developed into holistic national raw materials strategy and effectively dovetailed with the EU raw materials strategy. Great attention should be given to this national raw materials strategy throughout the Federal Government.

Many of the measures deemed essential to secure Germany’s and Europe’s raw material supply cannot be implemented at either bilate-ral or EU level but instead only at international level and in coopera-tion with other interested partners. Clearer orientacoopera-tion and better co-ordination of development cooperation endeavours is thus necessary as well as constructive support for international transparency initiati-ves and other measures conducive to sustainable stabilisation and

de-5 Communication from the Commission to the European Parliament and the Council. The raw materials initiative – meeting our critical needs for growth and jobs in Europe. COM(2008) 699 final, Brussels, 4 November 2008.

6 The EU has entered into strategic partnerships with China, USA, Russia, India, Japan, Brazil and Canada.

7 Communication from the Commission on raw materials, COM(2008) 699 final, p. 6 et seq.

8 See in this context the position paper recently published by the Federal Ministry for Economic Cooperation and Development, “Entwicklungsfaktor Extraktive Rohstoffe” (ex-tractive raw materials as a development factor).

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velopment in resource-rich developing countries. Only through sustai-nable management of their own raw material reserves and the atten-dant revenue streams will the resource-rich developing and emerging countries be able to achieve economic and political stability. Here the task of the international community is to support these countries in their efforts and promote the international exchange of best practices. A notable example in this context are the so-called “national resources funds” such as those already created by Norway and Chile and con-templated by a growing number of other countries (Mongolia and the Central African Republic, for instance). Important criteria for the suc-cess of such funds are an independent management, also to enable ef-fective public control; transparency of revenues and expenditures, in order to counter corruption; and dedication of the proceeds to sustai-nable development. Since many states are not in a position themselves to develop and operate institutions in line with these criteria, they need the support of bilateral sponsors and international organisations (such as a subsidiary organisation of the United Nations or the World Bank). Relevant international consultation and coordination is already taking place in various fora, but this process must be more clearly instituti-onalised through a political mandate. Such national resources funds must not, however, restrict free access to raw materials.

A good example of targeted international consultation and coordina-tion is the “Extractive Industries Transparency Initiative” (EITI), which is politically and financially supported by both the Federal Government and German industry. The essence of this initiative is to ensure that payment flows to public bodies in the area of raw materials extraction, such as licence or concession fees or other considerations, are disclo-sed by the companies involved. The creation of transparency regar-ding payment flows is an important means of combating corruption and promoting good governance. The initiative “Publish What You Pay” pursues similar objectives, whereas the Global Reporting Initiative fo-cuses on the publication of environmental and social data.

In addition to EITI, a number of other initiatives are being pursued at international level to create, with the aid of standards, framework con-ditions conducive to responsible management of raw materials and the revenues accruing from their exploitation.

One such initiative at international level is the International Council on Mining and Metals (ICMM), which was founded by internationally ac-tive mining and metals companies. The ICMM has formulated ten prin-ciples to serve as sustainability standards for its member companies – a first important step towards the creation and implementation of en-vironmental and social standards that should also be dovetailed with other bilateral and multilateral initiatives. In addition to the Kimberley Process Certification Scheme for diamonds, which has existed for qui-te some time, a German initiative has been launched for the certifica-tion of trading chains in the raw materials sector. The Federal Institute for Geosciences and Natural Resources (BGR) has elaborated a con-cept for verifying and certifying trading chains of high-tech and pre-cious metals such as tantalum, tungsten, tin and gold specifically from the artisanal and small-scale mining (ASM) sector. With the aid of a geochemical “fingerprint” unique to each ore, it is possible to identify illegally extracted and traded raw materials. The concept shows how the path of a raw material from the local producer to the industrial con-sumer can be traced and certified on the basis of international envi-ronmental and social standards. With the assistance of the Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ), corresponding

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national certification units in producing countries are simultaneously being developed and strengthened in order to ensure the practical ap-plication of the mechanism and thus close the development cycle. Information on raw materials and their use stems from a wide variety of sources. Better networking of existing institutions could remedy this situation and make suitably processed information available to both mi-ning companies and industrial raw material consumers. The exchange of information between these market players would likely lead to bet-ter coordination of raw mabet-terial supply and demand and thus redu-ce costly volatility on the raw material markets. A welcome develop-ment in this context is the recent announcedevelop-ment of Federal Ministry of Economics and Technology that a new service-oriented raw materi-als agency is to be established at the Federal Institute for Geosciences and Natural Resources to function as a targeted service provider for German industry. The object is to enhance transparency on the raw material markets in close cooperation with industry. As an immediate first step, the BGR will establish a contact point for raw materials is-sues as a service facility for the raw materials processing industry.

Outlook

Raw materials security is no end in itself but rather the crucial prere-quisite for the competitiveness and future viability of the entire indus-trial value chain and hence for prosperity, growth and jobs in Germany and Europe. No one can predict the future development of the raw ma-terials markets. However, in-depth analysis of market drivers and the creation of transparency with respect to basic market data make it pos-sible to identify reliable development trends. The trend now is towards an overall rise in the demand for raw materials. This also harbours a growing risk of geostrategic dependence on the part of Europe, espe-cially in terms of metallic raw materials. The temporary dramatic drop in prices in the wake of the global financial and economic crisis has changed nothing in regard to the fundamental importance of reducing our dependence on raw materials and striving to sustainably secure our raw material imports. Companies, the Federal Government and the EU remain called upon work together to safeguard free access to the raw materials of this world.

Editor: CDU/CSU Parliamentary Group Peter Altmaier MdB Stefan Müller MdB 11011 Berlin

Text: Workgroup Foreign Policy Picture: Markus Hammes

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