14 January 2025 – Germany likes to paint itself green and sees itself as a pioneer in sustainability and environmental protection. The fact that this green veneer is not as clean as is often claimed becomes clear, for example, with the aluminum raw material bauxite. In addition: nickel is stabilizing, iron ore prices are rising.
Nickel stabilizes, iron ore prices rise
After nickel prices in Asia and Europe stabilized at the level of early December 2024, iron ore prices have also risen in recent days due to brightening sentiment in the Chinese steel industry and have once again exceeded the $100/MT mark. This has led to price increases for important steel products such as HRC since last Thursday.
Aluminum raw material bauxite: Germany’s dirty imports
For years, Germany has sourced the majority of its bauxite requirements from the African state of Guinea. Germany has even secured a loan of over 248 million euros for the expansion of a bauxite mine through the Federal Ministry for Economic Affairs and Climate Action via so-called “guarantees for untied financial loans”, securing 15% of the mine’s annual production. According to the BMWK, guarantees for untied financial loans (UFK guarantees) are an integral part of the German government’s raw materials strategy.
Massive criticism of lending with German participation
The tricky part, however, is that even before the loan was granted by a German bank, there was massive criticism and concerns regarding environmental standards and the human rights situation in the implementation of the project to expand the bauxite mine in Guinea. Including the German Federal Environment Agency.
Non-governmental organizations have been trying to influence the German government for some time now, denouncing the questionable environmental standards and the threatening situation for the health of residents in the surrounding villages. In 2021, the German Green Party also voiced criticism of this lending in a minor question in the Bundestag at the time and called for clarification – especially regarding the forced resettlement of entire villages to allow the mine to continue operating.
Since the Greens have been part of the now failed federal government, nothing has changed on the ground, according to environmental organizations. Germany continues to import the majority of its bauxite requirements from Guinea – even if this has recently declined, but has found a new supplier: China.
Bauxite imports to Germany now from China?
Are there hopes for a change in bauxite imports to Germany? The annual report by the Federal Institute for Geosciences and Natural Resources (BGR) on the raw materials situation in Germany paints a different picture – at least not a good one in terms of the moral guidelines and environmental standards of the green Federal Ministry of Economics.
While the import share of bauxite from Guinea to Germany fell to 71% in 2023, China – which is repeatedly used as a whipping boy for high CO2 emissions, allegedly low prices and a dubious human rights situation – jumped to 15% from a standing start.
We really wonder how the overexploitation of the environment and raw materials, as well as the questionable human rights situation, can be justified by a green minister in the aforementioned ministry. We would also really like to know how it fits together that processed products are repeatedly subject to market protection measures, but the raw materials for them are still gladly taken.
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