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Standpoint: Securing raw materials

Stefan Eitel

What raw material projects are financed and supported by KfW IPEX-Bank? In an interview with the specialist magazine "Märkte der Welt", Stefan Eitel, Head of the Metals & Mining team at KfW IPEX-Bank, explains two possible ways. The fist is traditional export financing, which requires the mine operator to buy and use machines and equipment from Germany and Europe. The second is closely linked to the off-take agreements for the delivery of extracted raw materials: if the off-takers are German or European companies, financing by KfW IPEX-Bank is possible as well.

But it seems that merely purchasing extracted products will soon no longer be enough. In an interview with "Handelsblatt" Eitel said:

“Particularly when it comes to raw materials for high-tech products, it's about sheer availability, and this is the main challenge of the future for the German and European economy.”

He observes that the attitude of Europe's leading industrial companies has changed. Although the traditional approach of securing the supply of raw materials through long-term supply contracts has worked until now for the German and European industry, he is sceptical about the future due to the steadily growing market power of Asian companies. A possible solution? Solutions range from the direct participation of individual companies in mining projects to the systematic recycling of important raw materials.

Read both interviews by following these links:

"Running the full programme" published in "Märkte der Welt" on 8 August 2019 (available in German only)

"Companies are competing for the raw materials of the future" published in “Handelsblatt” on 29 January 2019 (available in German only)