German firms eye joint investing in commodity sources
* German firms study investment in foreign projects
* Aim is to ensure supplies
* Kazakhstan, Mongolia first focus
HAMBURG, Sept 21 (Reuters) - Germany's national industrial association BDI is studying a project in which German companies would invest jointly in foreign commodity projects to ensure raw materials supplies, it said on Wednesday.
It is examining whether joint investment in commodity supply projects by German companies is feasible, the BDI said.
In October 2010, Germany's government approved a new commodity supply strategy that included encouraging development of partnerships with producer countries at a time of rising global competition for raw materials.
"Ever more countries are undertaking targeted policies to secure their raw materials supplies," the BDI said. "It is clear that we cannot rely on the market alone."
Direct shareholdings by German companies could help secure essential raw materials at a time of intense competition for commodities, the BDI said.
At the German government's suggestion, the BDI said it is examining investment in Kazakhstan and Mongolia. German and Kazakhstan agreed a commodity partnership in May.
The European Union said on Sept. 16 it would decide in coming months whether to start stockpiling materials that are critical for its industrial and high-tech production.
Of particular concern to the EU are rare earths, commodities used in high-tech industries, global demand for which is expected to double by 2016. Their supply is currently dominated by China, which is restricting exports, citing resource depletion and environmental protection.
Meanwhile, a separate report from Germany's Manager Magazin on Wednesday said the BDI plan involved creation of purchase options for a range of commodities by German industry. The investment requirement over the coming five to ten years could reach 1 billion euros ($1.37 billion), it said.
At the centre of attention was coking coal for the metal industry, tungsten and rare earths largely required by the electronics industry, the magazine said.
German car giant Daimler (DAIGn.DE) and specialty chemicals group Evonik are interested in taking part and have already said they will make investments, the report said. But electronics giant Siemens(SIEGn.DE) has no interest, the report added.
The companies declined to comment to Reuters. ($1 = 0.730 Euros) (Reporting by Jens Hack, Matthias Inverardi, Jan Schwartz, Michael Hogan; Editing by Anthony Barker)
* Aim is to ensure supplies
* Kazakhstan, Mongolia first focus
HAMBURG, Sept 21 (Reuters) - Germany's national industrial association BDI is studying a project in which German companies would invest jointly in foreign commodity projects to ensure raw materials supplies, it said on Wednesday.
It is examining whether joint investment in commodity supply projects by German companies is feasible, the BDI said.
In October 2010, Germany's government approved a new commodity supply strategy that included encouraging development of partnerships with producer countries at a time of rising global competition for raw materials.
"Ever more countries are undertaking targeted policies to secure their raw materials supplies," the BDI said. "It is clear that we cannot rely on the market alone."
Direct shareholdings by German companies could help secure essential raw materials at a time of intense competition for commodities, the BDI said.
At the German government's suggestion, the BDI said it is examining investment in Kazakhstan and Mongolia. German and Kazakhstan agreed a commodity partnership in May.
The European Union said on Sept. 16 it would decide in coming months whether to start stockpiling materials that are critical for its industrial and high-tech production.
Of particular concern to the EU are rare earths, commodities used in high-tech industries, global demand for which is expected to double by 2016. Their supply is currently dominated by China, which is restricting exports, citing resource depletion and environmental protection.
Meanwhile, a separate report from Germany's Manager Magazin on Wednesday said the BDI plan involved creation of purchase options for a range of commodities by German industry. The investment requirement over the coming five to ten years could reach 1 billion euros ($1.37 billion), it said.
At the centre of attention was coking coal for the metal industry, tungsten and rare earths largely required by the electronics industry, the magazine said.
German car giant Daimler (DAIGn.DE) and specialty chemicals group Evonik are interested in taking part and have already said they will make investments, the report said. But electronics giant Siemens(SIEGn.DE) has no interest, the report added.
The companies declined to comment to Reuters. ($1 = 0.730 Euros) (Reporting by Jens Hack, Matthias Inverardi, Jan Schwartz, Michael Hogan; Editing by Anthony Barker)
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