Hightlights
- Turkey and China signed an MoU to collaborate on rare earth minerals.
- The agreement aims to enhance mining technologies and strengthen ties.
- Initiative aligns with the global energy transition and growing mineral demand.
The nation of Turkey and China on Wednesday inked a memorandum of understanding (MoU) in a bid to collaborate in the field of rare earth elements and mining. Officials from both countries involved with this deal identified natural resources as bringing together the two countries, one the predominant processor of rare earth elements, the other with significant deposits and the crossroads between Europe and Asia.
The deal was included in an Energy and Natural Resources Ministry bulletin.
Ironically, Turkey’s Natural Resources Minister traveled to China on Tuesday for talks on nuclear cooperation and mining.
Energy and Natural Resources Minister Alparslan Bayraktar (opens in a new tab) signed the deal along with his Chinese counterpart Wang Guanghua (opens in a new tab). The signing of this MOU symbolizes the parties’ efforts to tighten up collaboration in the mining and natural resources sector.
“We believe this MoU will serve as a legal framework and represents an important turning point that will further strengthen mining collaboration between the two nations,” Bayraktar said.
The only media to report this thus far is Daily Sabah, a Turkish pro-government daily newspaper published in Turkey. It’s owned by the Turkuvaz Media Group (opens in a new tab).
So, what’s behind this deal?
While showing a symbolic alignment between Turkey and China, this deal serves as a significant framework and platform for the two nations to identify collaborative opportunities in critical minerals in both nations, as well as others that might join in. A key goal: encourage joint efforts in mining technologies and digitization. Mr. Bayraktar went on the record “We aim to advance our cooperation in all areas of mining, especially regarding critical minerals, and hope that the agreement will soon lead to concrete projects.”
According to Turkey’s Bayraktar, surging demand for rare earth elements in this energy transition becomes a clear reason for tightening up the relationship.
Undoubtedly there is money to be made with the greening of economies and anticipated demand for electricity, and Turkey is banking, apparently, that China represents a serious pathway forward.
What’s the impetus for both China and Turkey to tighten up the relationship?
Turkey already collaborates with China on energy-related topics. Numerous Chinese companies have invested in Turkey, and that this deal was the result of several intensifying discussions involving mining. As reported in Daily Sabah (opens in a new tab), President Recep Tayyip Erdoğan and Chinese President Xi Jinping expressed commitment to exchange cooperation in energy as well as mining during their talks on the sidelines of the Shanghai Cooperation Organization (SCO) Leaders’ Summit in Astana, Kazakhstan, in July.
Are the Chinese moving in to ensure Turkey aligned with their sphere of Rare Earth Exchange influence?
This could very well be the case. For example, Rare Earth Exchanges reported that Turkey recently disclosed substantial rare earth mineral reserves, pointing out that the nation at the crossroads of Europe and Asia was actively seeking to develop, utilize and monetize the resources.
China undoubtedly hears the call to intervene.
Reported in Daily Sabah, the Turks went on the record:
“We invite Chinese firms to invest in our country, explore and extract resources, and bring them into our economy,” he said, emphasizing the importance of adding value to these minerals for sustainable development.
Guanghua echoed Bayraktar’s views, stating that mining holds great potential for cooperation between the two countries and that China is committed to developing “mutually beneficial, win-win” partnerships in this area.
Attending a Conference in China
Separate and apart Mr. Bayraktar showed up and presented at the International Mining Conference (opens in a new tab) in China’s northern port city of Tianjin, underscoring the importance of critical minerals in the global energy transition. Bayraktar said that the demand for these minerals should grow fourfold by 2040, and this would contribute to helping the world achieve the Paris Climate Agreement (opens in a new tab), as noted by the International Energy Agency (IEA). At the conference Mr. Bayraktar discussed mineral affordability, at least ostensibly emphasizing the need to support international development in low and middle income countries, something that Western interests may understand in a different way.
“Unfortunately, current supply and investment plans for many critical minerals are not sufficient to meet the rapidly accelerating growth of solar panels, wind turbines, and electric vehicles. From this perspective, strong international and regional cooperation in this area is becoming increasingly important,” the minister noted.
At the conference, the Turkish minister mingled with ministers representing Zimbabwe, Congo, and Tajikistan seeking more collaborative relationships.
Daniel
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