According to Mining News Pro -
Worst of global energy crisis may still be ahead, IEA says
A global squeeze on energy supply that’s triggered crippling shortages and sent power and fuel prices surging may get worse, according to the head of the International Energy Agency.
“The world has never witnessed such a major energy crisis in terms of its depth and its complexity,” IEA Executive Director Fatih Birol said Tuesday at a global energy forum in Sydney. “We might not have seen the worst of it yet — this is affecting the entire world.”
The whole energy system is in turmoil following the February invasion of Ukraine by Russia, at the time the biggest oil and natural gas exporter and a major player in commodities, Birol said. Soaring prices are lifting the cost of filling gas tanks, heating homes and powering industry across the globe, adding to inflationary pressures and leading to deadly protests from Africa to Sri Lanka.
Like the oil crises of the 1970s, which prompted huge gains in fuel efficiency and a boom in nuclear power, the world may see faster adoption of government policies that speed the transition to cleaner energy, Birol said. In the meantime, security of oil and gas supplies will continue to pose a challenge for Europe, and also for other regions, he said.
“This winter in Europe will be very, very difficult,” Birol said. “This is a major concern, and this may have serious implications for the global economy.”
The fallout for the global energy sector as the US and allies challenge President Vladimir Putin over the war in Ukraine and seek alternatives to Russian exports have highlighted the need to reduce dependence on fossil fuels, US Energy Secretary Jennifer Granholm told the same forum.
“Our move to clean energy globally could be the greatest peace plan of all,” she said. “We want and need to move to clean.”
Nations need to guard against switching reliance on one dominant energy supplier — Russia — for another in the shift to clean power, Granholm said.
“China has big-footed a lot of the technology and supply chains, and that could end up making us vulnerable if we don’t develop our own supply chains,” she said.
The nation controls about 80% of the global supply chains for solar power, which is set to rise to 95% by 2025, according to the IEA. China dominates much of the lithium-ion battery sector, is a key producer of wind turbines and seeking to quickly build capacity in clean hydrogen technology.
Developments including the US restricting imports of products from China’s Xinjiang region and a long-discussed tax in Europe on the import of goods made with high-carbon energy could help diversify the solar supply chain by creating openings for manufacturers such as India, Martin Green, a professor at the University of New South Wales, said at the conference.
“By building resilient clean energy supply chains, we can protect our economies from the shocks of the next crisis,” Australia’s Climate Change and Energy Minister Chris Bowen said in a speech at the forum. “There is no time to waste.”
Australia joins global critical minerals partnership
PERTH (miningweekly.com) – Australia has joined the Minerals Security Partnership in its quest to develop and secure global supply chains for critical minerals that are crucial to clean energy technology and the global transition to clean energy.
Australia joins the US, Canada, Finland, France, Germany, Japan, the Republic of Korea, Sweden, the UK and the European Commission on this mission.
“The US has taken a strong lead on the new partnership, which will help member countries build links with key markets in our region and globally, and help embed Australia in international critical mineral supply chains and technologies crucial to the global economy,” Minister for Trade and Tourism Don Farrell said.
“The partnership seeks to catalyse public and private investment for mining, processing and recycling projects that adhere to the highest environmental, social and governance standards.”
Minister for Resources and Northern Australia Madeleine King has held a bilateral meeting with US Secretary of Energy Jennifer Granholm to discuss the importance of critical minerals for the transition to clean energy and the manufacture of new battery, solar and electric vehicle technologies, and how to improve cooperation on critical minerals.
“My discussions with Secretary Granholm were extremely positive, and underlined how Australia and the US can work together to further the development of critical minerals and to diversify global supply chains,” King said.
“We agree that ongoing and secure supplies of critical minerals will be crucial to the modern renewable technologies that will ultimately help our two countries, and the world, achieve our net-zero ambitions.”
Granholm added that as the building blocks of clean energy technologies, critical minerals were integral to the US and Australia’s shared climate objectives, and bolstering the diversity of and elevating responsible standards for their associated supply chains was an area ripe for enhanced bilateral cooperation.
“I’m so pleased with the productive conversations I’ve had with Minister King and Australian industry on how to leverage our strengths and resources,” she added.
King and Granholm agreed that officials from the two countries would meet within three months to make further progress on the recently signed Australia – US Net Zero Technology Acceleration Partnership.
Farrell, King and Granholm also attended the signing of a memorandum of understanding (MoU) between Australia’s Arafura Resources and major US company General Electric (GE).
The MoU will see GE progress negotiations to purchase rare earth materials from Arafura’s Nolans project, in the Northern Territory, as a key component of wind turbine renewable energy generators.
Critical Minerals and the Global Energy Transition in Latin America
Latin America holds considerable reserves of critical minerals, sometimes also referred to as future-facing commodities, which will be crucial to the global energy transition. What the development of these resources in Latin America will mean for governments and citizens is uncertain. The global energy transition presents an opportunity that could translate into significant commodities windfalls. The end goal for governments is a well-regulated mining sector that increases public goods and spurs socioeconomic development with minimized social and environmental impacts. Transparency, accountability, and participation will be crucial to achieving this.
However, two major variables could undermine the ability of governments to deliver on this vision. First, most countries in the region face persistent conflicts over natural resource governance, including opposition to mining projects based on environmental impacts, insufficient consultation with affected communities, and inequitable distribution of socioeconomic benefits. Governments have struggled to meaningfully respond to civil society and community concerns and reduce conflict as they face competing pressures, fractured legislatures, and a cacophony of views on mining. These challenges are not impossible to solve through sustained effort and good policy, but it is unclear whether or how governments will be able to address them and, by extension, how overall levels of conflict around mining will evolve.
The second major variable is uncertainty about future demand for the four critical minerals. Demand will depend on factors such as the pace of the energy transition and emerging technological developments (for example, identification of replacements for these minerals in key applications or drastic improvements in mineral recycling processes).
The way these two variables interact will determine which of several scenarios might play out for critical minerals development in Latin America. This report explores these potential scenarios in detail.
Results for Development (R4D) is a leading non-profit global development partner. R4D collaborates with change agents around the world—governments, civil society and innovators—to create strong systems that support healthy, educated people. R4D combines global expertise in health, education and nutrition with analytic rigor, practical support for decision-making and implementation, and access to peer problem-solving networks.
The Brookings Institution is a nonprofit organization devoted to independent research and policy solutions. Its mission is to conduct high-quality, independent research and, based on that research, to provide innovative, practical recommendations for policymakers and the public. The conclusions and recommendations of any Brookings publication are solely those of its author(s), and do not reflect the views of the Institution, its management, or its other scholars. This publication is based on research primarily funded by the BHP Foundation. The findings, interpretations, and conclusions in this report are those of the authors and do not necessarily reflect positions or policies of the BHP Foundation or other donors. Brookings recognizes that the value it provides is in its absolute commitment to quality, independence, and impact. Activities supported by its donors reflect this commitment.