Raw material security is an important topic on the 14. Asia-Pacific Conference of German Business. Manuela Kasper-Claridge in conversation with the Chairman of the Federation of German Industry, Ulrich Grillo.
DW: Why is the topic of raw materials so important for Southeast Asia?
Ulrich Grillo: Of course, Southeast Asia has many raw materials and raw materials are becoming increasingly scarce, even if the supply is currently good. Due to the increasing industrialization of Southeast Asian countries, more raw materials are needed. Germany as an industrial nation does not have its own resources, so we are natural partners to discuss this topic.
DW: Which raw materials are scarce?
We had an enormous hype about rare earths 4 or 5 years ago. Like many other things, this has eased, but all non-renewable raw materials will become scarcer in the longer term. Rare earths can become that again at some point, but also zinc or ore - ultimately all raw materials that cannot be produced again.
DW: Is there any attention for this topic in Asia?
The attention is there. In Germany for four or five years, here in Southeast Asia it may not be that big, but I want to point out above all that we need fair, free trade and that we are all in the same boat. The raw material-owning countries as well as the raw material processing countries and that we can support each other. We have to approach this in a spirit of partnership so that it doesn't turn out as you see it in Indonesia, for example: there are now delivery stops for 65 raw materials in order to keep them in the country. Delivery stops and tariffs must be removed. Germany hardly has any metallic ores. Energy transition or electromobilization - all of these topics are of course only conceivable with the appropriate raw materials.
DW: Do Germans today consume significantly less raw materials than five years ago?
As with everything that is expensive or scarce, we will of course use as much technology as possible in order to use less. The subject of "urban mining" is very important, ie recycling. Between 50 and 60 percent of the metals used in Germany are now made from scrap metals.
DW: There are now countries like Korea, which organize the commodity trading state. What do you make of it?
The procurement of raw materials and securing the procurement of raw materials is still a matter for the industry and not the state. That's why we founded the so-called "Commodities Alliance" in Germany, where 12 companies joined forces to deal with this topic. On the other hand, we also need politics, we need the state. Germany has recognized the topic, and Mrs. Merkel and Mr. Gabriel have picked it up. Several resource partnerships have been signed with countries, such as Peru, Kazakhstan and Mongolia to exchange commodities. But it is also about the exchange of technologies and training, so that the economic development in the respective countries progresses.
DW: Germans provide know-how and have more security for it?
We need the raw materials and we help on the spot to build up production and, of course, in the training.
DW: If the region of Southeast Asia is growing very fast, more raw materials will be used. Could prices then rise?
That's exactly the point. Consumption will increase and if new deposits are not found, commodities will be scarce again. The only question is when.
The interview was conducted by Manuela Kasper-Claridge
Ulrich Grillo is also the boss of the raw material processor Grillo Werke.
Source: http://www.dw.de/rohstoffe-haben-wieder-knapp-haben/a-18077162
