Portugal and the new geopolitics of mineral resources

Portugal and the new geopolitics of mineral resources: from secondary importance to a pillar of European and global economic security

Luís Martins — President of the Portugal Mineral Resources Cluster (CPMR)
APSM — Portuguese Association for Mining Sustainability

English translation prepared for the Mina da Borralha website from the Portuguese original. This is not an official translation by the author or APSM.

In a world marked by conflict and organised into blocs, mineral raw materials have ceased to be merely a technical matter and have become an instrument of sovereignty. Europe, through the European Commission, has already responded, but action by Member States has been slow to materialise. Portugal has geological potential in critical and strategic resources, companies investing in crucial projects and an excellent geographical location from which to become one of Europe’s leaders. But this will only happen if it treats the mineral resources sector as strategic infrastructure and develops policies based on good governance to support it.

The war in Ukraine has taught a brutal lesson: modern conflicts are also industrial wars. They are won through the capacity to produce, replace and scale up supplies of energy, equipment, technology and mineral raw materials. Rivalry between the United States and China has accelerated export controls and fragmented global supply chains. Recent tensions surrounding Venezuela and oil have once again exposed Europe’s vulnerability to external shocks. Europe and Portugal do not lack these resources or the capacity of businesses and research institutions to develop their value, but without political support this is difficult to achieve. In a world organised into blocs, the rule is simple: whoever controls strategic mineral and energy resources controls economic, industrial and military decisions. This has always been true throughout human history and remains a reality today, more than ever.

The European Union recognised this and responded with the Critical Raw Materials Act (CRMA), a genuine industrial and economic security policy. The regulation sets clear targets for 2030, establishes mechanisms to accelerate progress and directs political attention and financing towards strategic projects within the EU.

In this new landscape, Portugal has a rare advantage: diverse, proven and competitive geology, with resources that Europe needs — lithium, copper, tungsten, zinc, tin and gold — and, above all, concrete projects capable of moving forward.

The question is no longer whether the resources exist.

The question is whether Portugal has the will and the ability to turn geology and mineral resources into economic and industrial power.

COPPER: the metal of electrification — and record prices

Copper is the backbone of global electrification, digitalisation and decarbonisation: electricity grids, data centres, electric vehicles, renewable energy and industrial automation. In recent months, copper prices have reached record highs, reflecting growing structural demand, a shortage of new projects and geopolitical supply risks. Portugal is part of the Iberian Pyrite Belt, one of Europe’s most significant metallogenic provinces, with projects such as Neves Corvo, Aljustrel and Lagoa Salgada. These assets are more than mines: they are industrial platforms with potential for engineering, specialist services, technical training and the export of expertise. They create jobs and wealth in an economically vulnerable area as no other sector does.

TUNGSTEN: the “defence metal” and a critical asset for NATO

Few metals are as strategic as tungsten. Essential for cutting tools, high-strength alloys and the aerospace and defence sectors, it is often described as a “defence metal”.

Like copper and gold, tungsten prices have reached historically high levels, reflecting rising industrial and military demand and the heavy concentration of global supply outside the Euro-Atlantic area.

In this context, tungsten takes on exceptional strategic importance. It is a critical metal for the defence industry, high-performance technologies and Europe’s industrial base, at a time when rearmament and strategic autonomy have returned to the centre of the political agenda. Portugal has a long and recognised tradition of tungsten production and has historically been one of Europe’s most significant countries for this strategic mineral. Today, projects such as Panasqueira and Borralha embody this geological and industrial heritage, reinforcing Portugal’s role as a reliable tungsten supplier against a backdrop of highly concentrated global supply. Located at Europe’s western edge, with institutional stability and full integration into the Euro-Atlantic area, Portugal is uniquely placed to make a credible and lasting contribution to European security of supply and NATO’s collective interests.

LITHIUM: the metal of the energy transition

Lithium is the material foundation of the energy transition. Without lithium there are no batteries; without batteries there are no electric vehicles, energy storage or resilient grids. It is no coincidence that the CRMA placed lithium at the heart of Europe’s strategy and designated projects as strategic, including in Portugal, in Boticas, Montalegre and Estarreja. This means political priority, faster administrative procedures and preferential access to European funding. Portugal’s lithium projects are more than national assets: they are European strategic assets located on Portuguese territory.

GOLD: record highs and economic resilience

In a world marked by geopolitical instability and financial fragmentation, gold has once again reached record prices. In polymetallic projects such as Lagoa Salgada, gold strengthens economic viability, improves bankability and attracts international capital. It is more than a precious metal — it is an instrument of economic resilience. Yet it has been entirely overlooked by successive governments, which appear to ignore the importance of deposits such as Jales/Gralheira, Montemor-o-Novo and Freixo de Numão.

From underground resources to industry: clusters, jobs and wages

The real strategic leap lies not only in extraction, but also in developing industrial clusters and building mineral value chains. Portugal’s copper, tungsten, lithium and gold projects have sufficient scale to:

• Attract European and international financing;

• Establish and retain Portuguese businesses throughout the value chain;

• Create skilled, better-paid jobs;

• Develop metallurgy, engineering, research and development, and technology services for export.

A modern mining and industrial cluster means productivity, higher wages, a stronger tax base and sustainable regional development.

Portugal’s strategic choice

Portugal has three assets that are rare in Europe: an Atlantic location, institutional stability and competitive geology. In a world being reorganised into blocs, these are worth far more today than they were a decade ago.

But the window of opportunity will not remain open indefinitely. The CRMA sets targets for 2030, and the European Commission is already selecting projects, reducing regulatory risk and focusing political attention on countries that can deliver.

If Portugal wants to establish itself as a significant country for critical resources, it must stop treating the mineral resources sector as an occasional concern and start treating it as strategic infrastructure, on a par with energy, ports or telecommunications. The country does not have to choose between the environment and development. It has to choose between:

• Developing responsibly, mitigating and controlling environmental impacts and making the most of social benefits, with robust rules and clear decisions;

or

• Not developing, remaining dependent, paying more and giving up economic sovereignty.

Geology and mineral resources do not change on a human timescale, and they cannot be relocated.

The world has changed and will continue to change, perhaps faster than ever.

And, for the first time in a long while, Portugal’s geology and mineral resources can and should be a political and economic advantage for Europe, provided Portugal knows how to position itself, deliver and lead.