EU calls for new coordinated policy to improve European access to raw materials

The European Union needs a new raw materials policy to boost access to much needed metals such as copper and iron ore because low production levels coupled with high import prices are threatening the competitiveness of European industries, EU officials said Tuesday.

The 27-nation bloc imported 177 million tons of metals in 2004 — a value of €10.4 billion (US$14 billion) — while producing only 30 million tons.

Rising prices resulting from increased global demand, notably from rising economic powers China, India and Brazil, coupled with limited availability of raw materials in Europe has put many European businesses in a tight spot, EU Industry Commissioner Guenter Verheugen said.

"European industries need predictability in the flow of raw materials and stable prices to remain competitive," he said. Verheugen said however, he would not push plans to interfere in world raw materials markets.

World leaders at the Group of Eight summit this week in Germany will discuss the problem and will most likely adopt a resolution suggesting possible sustainable approaches to resolving it, EU officials said.

The European Commission will deliver policy recommendations for improving industry access to metals on June 11, Verheugen said.

The policies will address a variety of factors impacting industry competitiveness, including access to mineral sites, access to land, investment and operating costs, research and innovation, health and safety requirements and the availability of a skilled work force.

Though the policies will address all raw materials, Europe primarily lacks metals. The EU produces only 5 percent of the world's copper, 2 percent of its iron ore, 1.7 percent of its nickel and 8.5 percent of its zinc.