Critical Minerals: Domestic Production
Noah Law Excerpts(2 weeks, 1 day ago)
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Noah Law (St Austell and Newquay) (Lab)
I thank my hon. Friend the Member for Bournemouth East (Tom Hayes) for his speech and my hon. Friend the Member for Camborne and Redruth (Perran Moon) for securing this vital debate and for his thorough introduction to critical minerals. I must begin by declaring an interest as chair of the all-party parliamentary group on critical minerals. In my capacity as chair, I hope to champion the UK’s critical minerals sector and encourage the Government to use all economic and educational levers available to support UK domestic production, stimulate growth and ensure that we exploit the sector’s vast untapped potential.
In my constituency of St Austell and Newquay, we are privileged to sit atop the heart of the largest lithium resource in Europe. It is a vital mineral for the green energy transition, as we have heard. For those not familiar with the properties of lithium, it is a key component in batteries that power electric vehicles, as well as being essential for the renewable energy storage that we need. It is key for many other crucial technologies that will be part of our low-carbon future.
The distillation of raw materials in Cornwall, with our unique geology, present an unparalleled economic opportunity not seen since the 19th century when we dominated the global mining market in tin and copper. Let me stress the magnitude of that opportunity and what it potentially means for Cornwall. Lithium mining offers the chance to revitalise that legacy in a way that stimulates Cornwall’s economy and turbocharges our country’s clean energy mission. It is therefore imperative that the Government support the development of this burgeoning sector and work with cutting-edge businesses like Cornish Lithium, which is pursuing environmentally responsible lithium extraction from geothermal waters and hard rock with pioneering technology. By doing so, Cornwall can emerge as a leader in critical mineral production globally, with benefits cascading across local and national economies.
On a broader scale, securing the domestic supply of critical minerals is not just a matter of economic opportunity for local people in my constituency, in Cornwall and beyond; it is a matter of national security. Currently, the UK is over-reliant on imports from nations such as the Democratic Republic of the Congo. Many of the countries in the supply chain sit squarely within either the Chinese or Russian spheres of influence. That dependence exposes us to significant risks, including geopolitical instability, ethical concerns surrounding the supply chains, and the potential for resource monopolies. I suggest that if we are to go globetrotting for our critical minerals, we should trot very carefully indeed and prioritise our domestic powerhouse of production.
Investing in domestic production, especially of lithium, will strengthen our energy security, reduce vulnerabilities and ensure that the transition to renewable energy is underpinned by a resilient and ethical supply chain. Cornwall is uniquely positioned to contribute to this national ambition. We are also able to spread the wealth that will come from a production epicentre in Cornwall across the whole of Great Britain and Northern Ireland.
For the industry to flourish, we must address the skills gap. Institutions such as the Camborne School of Mines, which we have already heard about, and the Truro STEM centre are at the forefront of educating the next generation of workers for the industry. I look forward to the forthcoming investment in Cornwall college in the next year or so, as historically it has been an excellent source of talent for further education. The potential is immense: more than 100 degree-level apprenticeships could be offered at Camborne alone, and a similar number of mineral processing apprenticeships are available in Truro. Each major player in the critical minerals industry forecasts the need to train around 300 staff just in terms of direct employees, not to speak of the vast supply chain required. That makes it ever more crucial that we harness local talent to plug into the supply chain.
To achieve all that, we must provide the necessary resources for the teaching institutions, including incentives to attract and retain skilled teaching staff who may work in very lucrative industries and find it difficult to justify coming back to teach the next generation. The Government should consider additional measures in terms of funding or salary enhancements to ensure that educators are not drawn away by the competitive salaries offered overseas in the industry itself. Further education deserves parity of funding and esteem, given its vital role in growing this vital industry. It is crucial that we align Skills England’s methodology with the reality of emerging industries to capture the nascent but fast-growing demand for skills. A forward-thinking industrial strategy, informed by the business-level and project-level data, is essential to anticipate and meet the needs of the sector.
On our infrastructure challenges—there are many in Cornwall in particular—Cornwall’s potential to lead in the production of critical minerals will be realised only if we address the intertwined challenges of housing, transport and, of course, the grid. Cornwall suffers from a protracted housing crisis, with the proliferation of second homes resulting in a severe lack of affordable housing for local people. The Government’s drive to build social and affordable homes must therefore be accelerated in Cornwall to ensure that our local talent pool, which the industry is so keen to unlock, is not driven out of the region, as so many have been before.
Similarly, transport links must be drastically improved. The woeful state of the road connecting St Austell and Newquay offers a prime example of the difficulties of getting goods, services and people to flow around our county. It is essential that efficient, sustainable transport for workers, businesses and supply chains functions correctly. The current state of our infrastructure is dire. It is a critical component of creating the conditions for success in the sector, so I welcome the Minister’s visit in the spring, when we can go further into the specifics of an investment plan for Cornwall.
Finally, funding remains a significant hurdle for critical minerals exploration in Cornwall. The current funding landscape presents a huge challenge, and the schemes available for smaller projects are far too limited. The gap must be addressed if we are to enable early-stage mineral production projects, for example, and to progress the commercial viability of the small and medium-sized enterprises that will form the backbone of the Cornish mining supply chain. I therefore urge the Minister to consider reforms to the funding structures.
The EIS has been mentioned in the context of supporting critical mineral exploration. It is a great shame that we have some of the world’s finest overseas development export and offtake finance institutions but our ability to support home-grown mining companies with offtake and other specialised financing agreements that support the UK’s energy security is not good enough. By providing tailored financial support, we can unlock the sector’s potential, ensure that domestic supply chains are robust and self-sustaining, and bring prosperity to our proud clay country villages in Cornwall, and to the country more widely.
In leading the debate, my hon. Friend the Member for Camborne and Redruth underscored how vital it is for our national security, energy resilience and climate goals that we secure the domestic production of critical minerals. With its rich mineral resources, skilled workforce and the support of the Government, Cornwall is uniquely placed to succeed in the sector and to be at the epicentre of the critical minerals revolution. By seizing that opportunity, we can not only transform Cornwall into a global hub for sustainable critical mineral production, but inspire a model of regional regeneration that places communities and climate action at its heart. Let us ensure that the rewards of the industry are shared as widely as possible, secure a thriving future for Cornwall and set the standard for the rest of the United Kingdom.