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Time Business News
3 days ago
- Business
- Time Business News
Bulgaria's Industrial Future: Hristo Kovachki Advocates
In a series of recent interviews, Bulgarian businessman and energy expert Hristo Kovachki has outlined a vision for Bulgaria's economic revitalization – centered around reindustrialization, technological renewal, and the strategic extraction of rare metals from domestic coal resources. His remarks come at a time when both Bulgaria and the European Union are navigating the twin challenges of climate transition and global competitiveness. Kovachki's central thesis is clear: Bulgaria must break away from its service-dominated economy and re-establish itself as an industrial and technological player in the European and global landscape. 'A sustainable and successful economy cannot be based solely on the service sector,' he notes, pointing out that nearly 70% of Bulgaria's GDP comes from services, while industry contributes less than 30%. While acknowledging Bulgaria's demographic challenges, Kovachki rejects the notion that the country is 'too small' for such ambition. 'We are a classic Central European country, strategically located, and a full member of the European Union. We should stop underestimating our potential,' he insists. One of Kovachki's most noteworthy proposals is the development of a rare metals industry in Bulgaria, particularly through the extraction of valuable elements from coal and coal byproducts. This is not an entirely new idea on the global stage – U.S. companies have already begun exploring this field – but Kovachki sees unique potential for Bulgaria. 'Rare metals like those found in coal ash and mining byproducts are among the world's most valuable resources, crucial for the advancement of clean technologies and industrial innovation,' he explains. In his view, Bulgaria's lignite coal, often dismissed as a relic of the past, could become the raw material of the future. This vision aligns closely with the European Commission's Clean Industry Pact, which emphasizes sustainable production, reduced raw material dependency, and greater circularity. Kovachki points out that Europe already recognizes the strategic importance of critical raw materials like antimony, a metal recently thrust into the spotlight due to reduced exports from China. His suggestion: Bulgaria could contribute to this European supply chain through innovative recovery technologies. Importantly, Kovachki's ideas fit well within the EU's broader strategy for green growth and industrial resilience. The Clean Industry Pact and the European Critical Raw Materials Act both prioritize the development of local supply chains, circular use of resources, and new technologies for decarbonization – all principles echoed in Kovachki's proposals. Rather than viewing decarbonization as a burden, Kovachki sees it as a 'driver of growth,' particularly when paired with industrial policy. 'This sector can place Bulgaria on the global economic and geopolitical map,' he says, underscoring the opportunity for research, innovation, and job creation. His approach is not in opposition to the Green Deal, but rather complementary – suggesting that legacy energy resources like coal, when used innovatively, can support Europe's clean transition. Kovachki also draws inspiration from international developments, particularly U.S. efforts to maintain industrial leadership and innovation. He refers to the return of 'economic common sense' and the strategic role of industry under American policy as a positive model, noting the significance of strategic partnerships, including those between Bulgaria and the U.S. His call to action includes welcoming international companies to explore and invest in Bulgaria's rare metal potential – a move that could boost both domestic capabilities and global integration. From an editorial standpoint, Kovachki's proposals offer a pragmatic and well-aligned vision for Bulgaria's role in the 21st-century economy. They do not seek to dismantle EU policies, but rather leverage them more effectively. His belief in the industrial future of Bulgaria is grounded in both global trends and local opportunity. Crucially, the emphasis on technological reinvention, sustainability, and strategic resource use aligns with the EU's competitive goals. The extraction of rare metals from coal byproducts is an area ripe for innovation, and if supported with a national strategy, could transform regions traditionally dependent on coal into future-facing hubs of green industry. In this sense, Kovachki's vision is not only about economic diversification – it's about turning challenges into assets. His approach underscores the importance of looking forward, not back, while maximizing the resources and strategic advantages already present within the country. 'A country that only trains service staff cannot lead global developments. Countries with strong industries and new technologies set the agenda.' 'Rare metals may turn coal – once seen as a fuel of the past – into a resource for the future.' 'Bulgaria should not see itself as small. We are a medium-sized European country with strategic importance.' As the EU intensifies its efforts to secure critical materials, lower emissions, and boost industrial competitiveness, voices like Hristo Kovachki's offer grounded and constructive perspectives on how member states like Bulgaria can actively participate – and even lead – in this transformation. TIME BUSINESS NEWS
Yahoo
23-05-2025
- Business
- Yahoo
Stockpiling strategic materials key to 'remilitarisation of Europe'
European security and defence were high on the agenda at the EIT RawMaterials Summit, held in Brussels from 13 to 15 May. With escalating geopolitical tensions surrounding Europe and within the continent itself from the ongoing Russia-Ukraine war, securing critical raw materials (CRMs) for defence applications is more important than ever. However, the consensus is that Europe is lagging far behind. Allard Castelein, special representative for raw materials strategy at Netherlands' Ministry of Economic Affairs, stated: 'A deep concern I have is whether there is a full appreciation of the urgency and what it takes to move from A to B.' He was speaking during a panel entitled Geopolitical Dynamics in Securing Europe's Defence Supply Chains on 14 May. Castelein asserted that the 2030 targets of the European Critical Raw Materials Act (CRMA) are 'out of reach'. These aim to ensure that 10% of the EU's annual demand is met through domestic extraction, 40% through domestic processing and 25% through recycling within the EU, as well as limiting dependency on a single third country for any individual CRM to no more than 65%. The CRMA lists 34 materials, of which 17 are considered 'strategic': bauxite, bismuth, boron, cobalt, copper, gallium, germanium, rare earth elements for permanent magnets, lithium, magnesium, manganese, graphite, nickel, platinum group metals, silicon, titanium and tungsten. The panellists spotlighted the importance of graphite in aircraft, submarines, tanks and missiles, for which Europe is heavily dependent on China. Of the CRMA's 47 strategic projects, 11 cover graphite extraction, recycling, substitution and processing. Institutions like the European Investment Bank (EIB) have a role to play in financing, as EIB vice-president Nicola Beer explained. 'The bank is already engaged with about 60% of the strategic projects under the CRMA. Part of the complex challenge is working on specific challenges of every raw material separately, with a special emphasis on defence.' Emanuel Proença, CEO of Savannah Resources, told Mining Technology: 'Europe absolutely needs a footing in CRMs and defence is a key opportunity.' Savannah is developing the Barroso lithium project in Portugal, which has been designated as a strategic project under the CRMA. The company is currently working towards completing the definitive feasibility study and submitting it for the final, confirmatory phase of the environmental licence by the end of 2025. Efforts by industry and regulators aim to address the 'fragmentation in the EU's defence industrial base', as outlined by last year's Draghi report on EU competitiveness. As the CRMA includes a soft request for national stockpiles, the report recommends a definition of mandatory EU-wide stockpiles to 'provide some certainty of supply'. The quantities of strategic materials needed for defence are small, confirmed Benjamin Gallezot, Interministerial Delegate for Supplies of Strategic Minerals and Metals at the French Prime Minister's Office, as he emphasised the importance of stockpiling. 'In 2023, the French Government adopted a specific legal framework which makes stockpiling mandatory for companies that are active in defence and for all production activities to be redirected to defence in times of emergency,' he stated. 'You cannot take a chance on defence, and stockpiling is a no-brainer.' In agreement was Joaquim Nunes de Almeida, director of DG Grow, which works to develop and implement EU policies that support businesses. 'We are talking about small quantities and projects that will be uncommercial forever. The state and public sector has to be able to subsidise these as we calculate what the remilitarisation of Europe means in terms of CRMs.' Gallezot confirmed that France is supplying the Netherlands with CRMs. 'Stockpiling is a European matter, not just a national question, but within member states, commercial stockpiles also help in a crisis to increase defence applications.' The CRMA requires large EU companies to become aware of strategic material supply risks and create appropriate mitigation strategies to be better prepared in case of supply disruptions. For defence-related manufacturing, this includes robotics, drones, rocket launchers, satellites and advanced chips. Joining the other panellists was Oleksandr Kubrakov, adviser to Ukraine's Ministry of Defence, who explained the country's tough position. 'In recent decades, the Ukrainian mining industry has been focused on short-term projects as there was no political stability for longer-term foreign investments,' Kubrakov said. While calling for NATO membership, Kubrakov added that as Ukraine is currently in an accession process to join the EU, 'it is time to act again. European companies could participate in projects at feasibility stages right now.' Going forwards, Krzysztof Galos, Undersecretary of State in Poland's Ministry of Climate and Environment, asserted that Europe's CRM list must be continually updated to meet the evolving needs of the defence sector. The list is reviewed and updated by the European Commission every three years, allowing for additional reviews upon request from the European Critical Raw Materials Board, based on monitoring and stress testing. 'There is no use having a defence industry without having resilient industrial activity. The two must be brought together,' concluded Castelein. "Stockpiling strategic materials key to 'remilitarisation of Europe'" was originally created and published by Mining Technology, a GlobalData owned brand. 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