Transition & Minerals – why cant the West get it right?

Written By: Tshepo Magagane

The West has never had to build up:

1. Without extracting resources violently from the developing world

2. Without a post war build out whereby taxes where jacked up to 90% or so

Take Germany – just going around in circles (and not learning anything from Russian gas or shutting down nuclear)

1. Previous Chancellor once said to German institutions “work with these guys to unlock new projects” and we just spun wheels around “mining is difficult” “Africa is difficult”

2. Then allocated a bn euros to KfW from fiscus – nothing came from that

3. Current Chancellor just fighting local politics now

4. Populations that think “food come from the supermarket” – how do you get a mandate to own resources

5. Lack of continuity as different admins come in – you cant have a 10yr plan let alone a 20yr one, which you need

And in these institutions, it is a question of INCENTIVES

1. Largest German OEM – strategy team going “give us tomorrow to go for final approval” and tomorrow coming back  “procurement has vetoed it, they want the metal for this order book

2. EU Raw Materials Week – super senior at EIB going “we will only finance the best projects” – I remember the Glencore Head just giving his this side eye

3. You simply look at the person on the other side of the table and go “what is it in this for them…they can just collect their salary” – reality of life

It is not convoluted – the  West has simply never had to build itself up in peacetime or paying market prices.