France's great comeback in the mining industry ?

The mining industry has always been a strategic sector for numerous countries around the world. In the 19^th century, thanks to the use of coal and its underground supply, British advanced mechanics foretold the first industrial revolution, and its positive outcome elevated them to a world leading position in various fields. Nowadays, after a second industrial revolution caused by the exploitation of « Black gold » (oil), we can idendify what seems to be the coming of a third industrial revolution driven by materials called “rare earth” elements.

There are 17 rare earth elements, such as promethium, cerium or lanthanum, present in very small quantities compared to some minerals of the likes of iron or bronze, and their properties are outstanding. The uses of these minerals are varied, so much so that each inhabitant of a developed country consumes an average of 17 grams per year through his consumption. Rare earth elements can be found in rockets, military equipment, lasers, digital technologies such as smartphones, tablets or even products called “green tech”; i.e. products related to production of green energy or energy saving technologies - wind turbines, solar panels, or even electric transportation. In a rapidly modernizing and advancing world, these rare earth elements are becoming increasingly crucial to our development. As societies enter the golden age of the green energy transition, those elements are, undoubtedly, coveted by the largest global leaders.

Their use has increased sharply from 80,000 tons in 2000 to 140,000 tons in 2018 -a dazzling 62.5% increase, and consumption is forecast to double again by 2030. Amongst the 140,000 tons, China produces 130,000 tons on its own, more than 90% of the world’s production, and the Chinese Boagang company alone makes up 75% of this production.

However, China is not the only country to have rare earth reserves (i.e. 25% is located in the United States and 15% in Malaysia) and most countries intend to take advantage of their resources to engage in the mining battle.

Mining activities related to the extraction of rare earth elements are however not suitable with environmental standards of developed countries such as the US or France. All activities of this nature were relocated to China or other countries with slightly less abundant resources, such as the Democratic Republic of Congo, after the 1980s. Moreover, the cost of labor being much lower in these countries, companies from developed countries did not hesitate to create joint ventures with other companies from developing countries such as China in order to take advantage of this cheap labor force.

Due to outsourcing, developed countries often lost their mining sovereignty and no longer have means of production for refining rare minerals. For example, the last French company which had the necessary technology to refine rare earth minerals in France was Rhône-Poulenc, and since the 90’s its activities have been relocated to China.

Most countries have become dependent on importing rare earth minerals from China causing sizeable problems, the likes of which could be seen after China’s rare materials embargo against Japan in 2010 after an incident off the Senkaku Islands.

Increasing needs for rare earth elements and the loss of mining sovereignty of multiple countries, prevents them from fulfilling their own needs. What measures can be implemented by a country like France to regain its independence in this highly strategic sector ?

“France relies solely on foreign imports - this comes with consequences on our economy. First off, we need to do everything in our power to reduce our consumption of rare earth elements. But this won't be enough. We will then need to reconsider the case of the French mining industry, even if our each and every need won't be satisfied by our own resources.” said Philippe Saint-Aubin, a member of the French Economic, Social and Environmental Council.

In 2014, Emmanuel Macron launched the “national French mining Company”[1] project, which could have enabled France to make a comeback in the worldwide mining scene, all the while creating a sustainable mining industry and keeping track of their environmental impact. But this was rendered unsuccessful due to the strained economic situation of the two leading mining companies in France - Areva and Eramet. Yet, undeterred, the French President launched the “Gold Mountain”[2] project in 2015 which is intended to become France's largest mine. However, NGO’s and French Guiana inhabitants opposed the project by delaying it.

Emmanuel Macron is pursuing his mining conquest by expanding it to Frances’s oversea territories, and by trying to find a way to re-engage the battle within the mining business. Still, the forecasts are discouraging as European Council is foreseeing a period of at least 15 years for the country to make a comeback, which will leave plenty of time for some exporting countries such as China to extend their already substantial activities.

Mael B.

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[1] « La Compagnie nationale des mines de France »

[2] « Montagne d’Or »

Sources:

Pitron G., 2018, LA GUERRE DES MÉTAUX RARES : La face cachée de la transition énergétique et numérique, 296p

BRGM, 2017, Les terres rares, un groupe de métaux stratégiques, [Online] : https://www.brgm.fr/sites/default/files/dossier-actu_terres-rares.pdf

Capital, 2015, Les terres rares : la France a une carte à jouer dans ce secteur très stratégique, [Online] : https://www.capital.fr/entreprises-marches/les-terres-rares-la-france-a-une-carte-a-jouer-dans-ce-secteur-tres-strategique-1087767

Challenges, 2016, Macron enterre la Compagnie des mines de France chère à Montebourg, [Online] : https://www.challenges.fr/energie-et-environnement/macron-enterre-la-compagnie-des-mines-de-france-chere-a-montebourg_40701

Le Point, 2019, Faut-il rouvrir les mines en France ?, [Online] :  https://www.lepoint.fr/economie/faut-il-rouvrir-les-mines-en-france-24-01-2019-2288585_28.php