SOURCES FOR EUROPEAN SUPPLY OF MINERALS Euro Mine Expo Conference 2010 Dr. Patrice Christmann Head of the BRGM Mineral Resources Department Tel.: +33 2 38 64 38 11 p.christmann@brgm.fr Nom du service émetteur dimanche 18 novembre 2018 1

Caveat This presentation does not reflect any official position be it European or French. Nom du service émetteur dimanche 18 novembre 2018 > 2 2

A LOOK INTO THE CURRENT EU SUPPLY SITUATION Nom du service émetteur dimanche 18 novembre 2018 3

UE dependence on minerals and metals imports (2009) Data sources: USGS, BGS, BRGM, PGI, WMD Antimony 100% Vanadium Beryllium Phosphate 92% Boron Rhenium 90% Cobalt Nickel 86% Molybdenum Iron 83% Niobium Bauxite 80% Platinum group Zinc Rare Earth Tungsten 76% Tantalum Lead Titanium Copper 74% Germanium Chromium 53%  The import dependency ranges from 53% for chromium, 74% for copper all the way to 100% for metallic ores such as cobalt, tantalum and vanadium. The trends of sharp upward movements in price and high dependency pose competitiveness challenges to the manufacturing industry in general and also raises longer term issues related to security of supply of raw materials. Figures shown on a red background show metals of which China is the 1st global producer Nom du service émetteur dimanche 18 novembre 2018 4

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Chinese investments in the global mineral resources industry (After Van der Wath, Bateman Beijing Axis, « China and Africa: A Global Natural Resources Alliance?, presentation given at Indaba Mining 2010, Cape Town » 2004 Early 2009 Nom du service émetteur Early 2010 dimanche 18 novembre 2018

Current EU supply situation: the main driver Nom du service émetteur dimanche 18 novembre 2018 7

Current EU supply situation: consequences Loss of expertise, both in private and public sectors Lack of perception/ understanding of the issues Lack of investment in the development of the public geological knowledge base on the EU subsurface (with some exceptions) Lack of support to the sustainable development of the mineral resources industry in the developing world Losses of industrial jobs and competitiveness, damage to our economic basis, crisis in the EU Transfer of environmental and social issues from the highly regulated EU sphere to countries who DO NOT have the material and human capacites to regulate the mineral resources industry The recent vote of the EU Parliament for a cyanide ban in EU gold mining, without banning the imports of gold, is a typical case showing political misunderstanding of the issues Nom du service émetteur dimanche 18 novembre 2018 8

Current EU supply situation: consequences International competition for access to mineral resources will continue to grow as the world’s population inches towards the 9 billion mark The EU as such is poorly prepared to face the challenge and its access to resources from outside its borders is far from being granted China will do its best efforts to attract Western industry to China, offering access to resources … to gain access to Western technology, key to Chinese sustainable competitivity Nom du service émetteur dimanche 18 novembre 2018 9

EUROPE’s MINERAL POTENTIAL Nom du service émetteur dimanche 18 novembre 2018 10

EU GEOLOGICAL POTENTIAL: NOWADAYS Nom du service émetteur dimanche 18 novembre 2018 11

KNOWING EU’s GEOLOGICAL POTENTIAL IS A KEY TO EU SECURITY AND ECO-EFFICIENT COMPETITIVENESS … Nom du service émetteur dimanche 18 novembre 2018 12

Europe’s geological potential: general beliefs General belief 1: Europe’s mineral’s industry belongs to the past, there is no more potential General belief 2: If its important, the private sector will take care of it General belief 3: production costs in the EU would be too high to make mining profitable Nom du service émetteur dimanche 18 novembre 2018

Do we know the geological potential of Europe? The location of deposits of economic interest (a very dynamic concept) is determined by the geological history of Europe, For the time being, except for some areas with oil and gas, we only well know the near-surface geology of Europe and the related mineral deposits There so far not even is a 2D public pan-EU Mineral Resources GIS, only heterogeneous information at national/ regional levels, some very difficult to identify and to access. In many countries the public knowledge rests on old data, techniques and concepts Nom du service émetteur dimanche 18 novembre 2018 14

… WHILE EUROPE’s POTENTIAL FOR CRITICAL MINERALS AND DEEP-SEATED, HIDDEN, LARGE-SCALE MINERAL DEPOSITS IS ALREADY PROVEN Nom du service émetteur dimanche 18 novembre 2018 15

The geological ON THE WAY TO THE FUTURE: THREE WORLD-CLASS The foresudetic basin, Poland – 30.8 Mt resource (31/12/07 data) http://www.kghm.pl/index.dhtml?category_id=260&lang=en Las Cruces, Spain – 1.1 Mt Cu In reserves (31/12/07 data) http://www.inmetmining.com/ouroperations/ mineralreservesresources/default.aspx ON THE WAY TO THE FUTURE: THREE WORLD-CLASS EU CONCEALED DEPOSITS Neves Corvo, Portugal – 1.7 Mt Cu, 3 Mt Zn, 50 kt Sn in resources +  1Mt Cu produced (12/1997 data) http://e-geo.ineti.pt/edicoes_online/diversos/mining_develop/capitulo4.htm Nom du service émetteur dimanche 18 novembre 2018 16

Do we know the geological potential of Europe?: Work in progress OneGeology Europe (http://www.onegeology-europe.eu/) will bring together a web-accessible, interoperable geological spatial dataset for the whole of Europe at 1:1 million scale based on existing data. ProMine will deliver the first ever Pan-European GIS based database on EU known mineral occurrences, already in development within the framework of a BRGM research project and a 3-D model of four of its main metallogenic provinces The two projects are co-funded by the European Commission. Nom du service émetteur dimanche 18 novembre 2018 17

… THE EU CAN BE A VERY GOOD LOCATION FOR INVESTMENT IN MINERAL EXPLORATION AND MINING Nom du service émetteur dimanche 18 novembre 2018 18

The nearby Aitik open-pit copper pit mine, one of the world’s lowest grade operations (0.27% Cu in the reserves). demonstrates that mining is possible and profitable in the EU, with a cash cost of 1.24 $/ lb Cu (market price: 3.12 $ on 15/05/2010) … thanks to technology and engineering dimanche 18 novembre 2018

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EU geological potential: the EU can be a very attractive venue for mining While as a whole Europe’s mineral potential remains MUCH underexplored, there are sharp contrasts about mineral resources development activities across Europe … In 2007 about 160 €/ km2 were invested in mineral exploration in Sweden to be compared with about 125 €/ km2 invested in Australia or about 155 €/km2 in Canada. Finland and Sweden are among the most attractive jurisdictions (Finland: 3rd, Sweden: 12th position) of the 2009/10 Survey of Mining Companies produced by the Fraser Institute, ranking 72 jurisdictions with an active mining industry (4 EU countries) Nom du service émetteur dimanche 18 novembre 2018 21

-2009. Note: projects can be shelved or dormant Number of mineral resources projects, at all stages of development, listed in the MineSearch database developed by the Metals Economics Group (period: 2005 -2009. Note: projects can be shelved or dormant 51 – 60 projects 41 – 50 projects 31 – 40 projects 21 – 30 projects 11 – 20 projects 10 and less projects No data Nom du service émetteur dimanche 18 novembre 2018

EU GEOLOGICAL POTENTIAL: THE FUTURE Nom du service émetteur dimanche 18 novembre 2018 23

The geological map of the future: 3D probabilistic models based on geophysics, borehole observations and geostatistics, depicting a wide range of subsurface parameters (lithologies, mineralisation, energy and water resources, natural hazards …) EarthVision / EvCell model courtesy Dynamic Graphics, Inc. ©. Nom du service émetteur dimanche 18 novembre 2018

CONCLUSIONS Nom du service émetteur dimanche 18 novembre 2018 25

The need for coordinated EU Commission and Member States actions Develop a public EU minerals intelligence on a par with the USGS Develop a public digital EU knowledge base on « Europe beneath our feet » down to 4 km, focused on Europe’s metallogenic province Support the sustainable development of the mineral resources sector in developing countries with a grant-based, ring-fenced, development instrument of 100 M€/year over 10 years Include geology and mineral resources as priority topics in the forthcoming 8th RTD framework programme, in support of the European Technology Platform on Sustainable Mineral Resources Promote sustainable use of natural resources in primary and secondary education curricula Nom du service émetteur dimanche 18 novembre 2018

Thank you for your attention! dimanche 18 novembre 2018