IX. PROJECT CLASS I: Clean Energy Minerals and Ores
Definition:
Construction of facilities involved in the land-based extraction, recycling, processing, and/or refining (including metallisation) of ores or minerals where the product resulting from these processes form part of the supply chain for eligible projects (or eligible parts thereof) under Appendix I, Class A – Type 1: Renewable Energy; Class E – Type 2: Battery Production and Recycling.
Illustrative List:
- Copper
- Cobalt
- Nickel
- Lithium
- Rare Earth Element (REEs)
- Chromium
- Zinc
- Platinum Group Metals (PGMs)
- Aluminium
Standards:
Prior to the development of appropriate standards that Participants will review as part of their future work, Participants will use the common line procedures outlined in Articles 54-59 of the Arrangement to submit a proposal for a clean energy minerals and ores project. This information will be supported by documents which will be filed with the proposal. For projects for extraction, processing and refining of ores or minerals, the proposal shall include the GHG intensity of the output product, calculated in compliance with the GHG Reporting Protocol, taking into account scope 1 and 2 emissions. It shall also include information on what measures have been taken to reduce emissions. For extraction projects, the proposal will include a disclosure of the economic life of the mineral reserve, estimated in accordance with internationally recognized and accepted guidelines in the mining industry and related rationale for the tenor applied. The proposal will further include a description demonstrating evidence that:
- a significant proportion of offtake from the facility will form part of the supply chain for eligible projects (or eligible parts thereof) under Appendix I, Class A – Type 1: Renewable Energy; Class E – Type 2: Battery Production and Recycling; or
- there is in place a legally enforceable undertaking requiring that a significant proportion of offtake will be used as part of the supply chain for eligible projects (or eligible parts thereof) under Appendix I, Class A – Type 1: Renewable Energy; Class E – Type 2: Battery Production and Recycling; or
- the project clearly contributes to the increased supply of minerals or ores that are internationally recognised as essential components to renewable energy, including eligible projects (or eligible parts thereof) under Appendix I, Class A - Type 1: Renewable Energy; Class E -Type 2 Battery Production and Recycling, and where total demand for such minerals or ores is predicted to rise significantly over the next two decades in a scenario that meets Paris Agreement goals.
If the Participants accept the proposal, the project will be reported in standardized form on the OECD website at the date of first draw-down.
Maximum Repayment Term:
22 years