BRUSSELS – Europe’s mining industry is facing a significant challenge in its transition to a greener future: high energy prices. While the European Union (EU) is pushing for a low-carbon economy, the cost of electricity within the bloc is significantly higher than in other regions, potentially hindering investment in electrified mining operations.
Jan Moström, President of Euromines, highlighted the issue, stating, “Europe currently produces 3% of the world’s metals and minerals but utilizes 30%. How can we change that?” The answer, according to industry leaders and policymakers, lies in finding a way to make green mining economically viable in the face of high energy costs.
“Electricity prices are absolutely critical,” explained Rolf Wyns, CEO of the European Federation of Geologists. “If they remain three or four times higher than outside the EU, then companies may not make the investments needed.” This could lead to a reliance on imports for critical materials, undermining Europe’s goal of a resilient and independent supply chain.
A potential solution has been proposed by Euromines in the form of a roadmap that prioritizes electrification, carbon capture, and digitalization. This plan aims to align Europe’s mining industry with the EU’s climate goals while ensuring its competitiveness.
However, Thomas Drmek, representing both the University of Leoben and RHI Magnesita, cautioned that a nuanced regulatory framework is needed to support the scaling of these solutions. He emphasized the need for policies that understand the commercial and operational challenges faced by businesses.
“For captured CO2 to be used in construction materials or other products, there can be no additional costs or regulatory hurdles,” Drmek explained. “Otherwise, it will simply not make sense commercially.”
MEP Professor Maniatis echoed this sentiment, calling for the full implementation of the Draghi Report on European competitiveness, which identifies high energy prices as a key factor hindering the EU’s progress.
Despite the challenges, there is optimism that a green and competitive mining industry in Europe is achievable. Drmek highlighted RHI Magnesita’s success in reducing CO2 emissions and developing innovative technologies for carbon capture and utilization.
“This new Euromines study offers valuable insights and potential solutions,” MEP Maniatis concluded. “With this as a guiding document, we can transition to a competitive and green mining industry.”
The key takeaway is that while the EU’s ambition for a green mining sector is commendable, addressing the challenge of high energy prices is crucial for its success. A collaborative approach between policymakers and industry leaders, with a focus on innovation and supportive regulations, will be essential to achieving a sustainable and competitive future for Europe’s mining industry.
