Tantalum

[sumisu]

Merkel Lacks `Consistent' Energy, Commodities Policy, IW Says
By Rainer Buergin

http://www.bloomberg.com/apps/news?pid=20601100&sid=aGCNRAkOUluY&refer=germany

Aug. 25 (Bloomberg) -- German Chancellor Angela Merkel's government has no clear energy policy, the IW economic institute said, singling out for criticism plans to abandon nuclear power and insufficient action to secure foreign commodity sources.

``What we're missing in the area of government is a consistent energy policy, a consistent energy concept, and, as regards commodities, a clear prioritization of interests,'' IW economist Hubertus Bardt told reporters in Berlin today.

Merkel should raise pressure on governments such as China's that levy taxes on or even ban commodity exports, the institute said. Europe should speak with one voice on energy and commodity issues and push for a removal of trade barriers in bodies such as the World Trade Organization, it said.

The IW report highlights risks faced by the German economy, the world's third-largest and the biggest exporter of goods. It raises pressure on Merkel and the European Union to do more to safeguard the supply of substances needed for the production of stainless steel, jet turbines and fuel cells.

Chromium, molybdenum, niobium, platinum, tantalum and zircon top the list of commodities in ``critical'' supply because they're either controlled by a few companies or countries, will be exhausted in less than 30 years or are difficult to substitute, the Cologne-based IW said.

Fifty-four percent of German companies see the increasing scarcity of commodities as a risk, while 19 percent see it as an opportunity, the IW said, citing a survey it held this year. Nineteen percent said it poses neither risks nor opportunities.

``The problem with commodities isn't so much the physical availability, but rather the access,'' IW institute head Michael Huether said. ``A lack of competition, distorted competition as a result of government action and aggressive strategies by some countries on international commodity markets are serious problems.''

While natural gas exports from the Soviet Union were stable even in the Cold War era, Russia may use its gas reserves ``as a political instrument'' and threaten to limit deliveries, Huether said. In view of growing commodity supply risks, Germany should abandon the planned phase-out of nuclear energy by around 2023, he said.

To contact the reporter on this story: Rainer Buergin in Berlin at [e-mail].

Last Updated: August 25, 2008 08:08 EDT