Piotr Dziadzio, Chief National Geologist, and Mateusz Damrat, Director of PIG-PIB, discuss the national raw materials policy, the government's plans for minerals and the role of the State Geological Survey in renewing the resource base. The interview prepared by the Polish Geological Institute – National Research Institute was published on December 9, 2022 in the Rzeczpospolita daily.

 

In March this year, the Council of Ministers adopted the national raw materials policy. What are the key objectives? How is it being implemented?

Piotr Dziadzio: The national raw material policy aims to ensure the country's raw material security. This includes ensuring access to the necessary domestic and imported raw materials.

An appropriate raw materials policy is crucial not only for the current demand for raw materials, but in particular to ensure a stable future for future generations. Naturally, such an ambitious task cannot be accomplished without cooperation and mutual support from many units. A particularly important role is played by the unit performing the tasks of the State Geological Survey (PSG).

Since 2011, this role has been taken over by the Polish Geological Institute – National Research Institute. The tasks of the service are performed in accordance with its work plan. One of the priorities of the PSG is the recognition of the geological structure of Poland with a view to renewing the country's resource base and determining the resources of mineral deposits. Moreover, an important task of the Polish Geological Survey is to maintain geological databases and the National Geological Archives, where all geological information derived from the survey of the geological structure of the country is kept.

Piotr Dziadzio, Undersecretary of State in the Ministry of Climate and Environment, Chief National Geologist, Government Plenipotentiary for the National Raw Materials Policy, PhD in the discipline of earth and environmental sciences in the field of geology

What other tasks does the State Geological Survey carry out?

Piotr Dziadzio: PSG carries out numerous tasks in the field of geothermal energy, among other things. These make an important contribution to the development of the use of this energy source. Thanks to various geological surveys, we have the opportunity to develop high- and low-temperature geothermics in Poland. In the end, it is planned to map the entire territory of our country in this way.

It is also worth noting that the results of geothermal research to date are of great interest to local authorities. Between August 2021 and August 2022, as many as 218 preliminary geothermal opinions were prepared at request of municipalities. These opinions were free of charge and intended to determine the geothermal potential in the municipality concerned so that it would know that before applying for example to the "Making thermal water available in Poland” programme.

One of the tasks of the PSG is the annual preparation of the “Balance of Mineral Resources in Poland”, which contains the most important information on the state of mineral resources, their distribution, development and production volumes. The knowledge provided is particularly important for the proper functioning of the domestic mining industry.

The PSG also undertakes other tasks, including field work such as geophysical surveys intended to locate mineral resources, also the critical ones.

When it comes to our mineral resources, quite contradictory statements are often heard in the media. Some say that Poland is a real mineral eldorado, but there are those who argue to the contrary. What is it really like?

Mateusz Damrat: Although Poland is a country that is quite rich in mineral resources, not all raw materials are in abundance. Domestic and proven reserves of the energy resources that are so important today – crude oil and natural gas – can meet respectively up to 4 and 30 per cent of our needs.

On the other hand, we are one of the richest countries in the world when it comes to copper and silver ores. We have more than 3 billion tons of them. In 2021, we were the largest producer of these metals in Europe.

We also have a great abundance of chemical raw materials, in particular rock salt, with reserves of just over 112 billion tons. We also have significant indigenous sulphur reserves of around 500 million tons. Neither do the ceramics, construction, cement and lime or glass industries have to worry about a lack of raw materials. Our reserves of rock minerals are really considerable. Among rock minerals in Poland, the most important are crushed and block stones, clay minerals for construction ceramics, as well as sand and gravel aggregates.

It is also important to mention our important energy raw materials, which are varieties of coal. Hard coal reserves in the Upper Silesian and the Lublin Basins amount to some 65 billion tonnes. We have large quantities of lignite – more than 23 billion tonnes in 91 deposits, but it is only exploited in eight of these.

Regarding the needs of our economy, we are in short supply of some metallic raw materials – zinc, lead, molybdenum, tungsten and iron ores. In conclusion, our economy, despite having significant resources of various raw materials, is to some extent dependent on import, as is the case with most world economies.

Mateusz Damrat, Director of the Polish Geological Institute – National Research Institute (PIG-PIB), PhD in the discipline of Earth and Environmental Sciences in the field of geology

The resources in question are those that we are confident of – they have been documented. However, we still have projected, prospective resources which suggest that some of them, such as crude oil, may be 420 million tonnes rather than 21. Similarly, there could be as much as 1,775 billion cubic metres of natural gas instead of 143 billion. Why such huge differences and can we already take these figures for granted today?

Mateusz Damrat: If we want to talk responsibly about Poland's current raw material resources, we should only rely on the documented reserves, i.e. those proved by geological surveys, for which we know both, the quantity and quality of the deposit. However, even these resources are overestimated in relation to those that can be extracted.

Of course, in assessing the overall resource potential, reference can be made to the inferred and prospective resources, but note that these are subject to significant estimation error and need to undergo further multi-stage verification. Estimating these resources is based on indirect premises, primarily on the search for analogues to well-identified geological structures in other areas. Both are unconfirmed resources with a very high exploration risk involved, for which it is difficult to definitively assess the part that is technologically feasible and profitable to extract.

We need to recognise that the extraction of minerals from deposits is only justified if they are found in high concentrations, at sufficient depth and bound to rocks or minerals from which they are relatively easy to liberate. Feldspar, for example, contains a great deal of sodium and is, along with quartz, the primary component of the lithosphere, but no one extracts sodium from it, even though it may contain several percent of it. Without taking this important aspect into account, we could wrongly assume that in Poland, as in most countries, all the elements of the Periodic Table are present. However, this is of no real significance, as the exploitation of only some of them is profitable.

Does this also apply to the titanium, vanadium and iron deposits found in northern Poland in Suwałki region?

Piotr Dziadzio: We know that there are accumulations of these elements there. The reserves of iron ore, titanium and vanadium in Suwałki region amount to around 1.3 billion tonnes, metallic iron to 388 million tonnes and titanium to 97.7 million tonnes. According to the recoverability criteria adopted in 1996, the resources identified were classified as non-recoverable due to their low metal content, mainly vanadium, and the considerable depth of the deposits. Since they are located more than a kilometre below the earth's surface in crystalline rock exploiting them today would require huge financial outlays.

Resources of "Krzemianka" and "Udryń" vanadium-bearing titanomagnetite ores were documented in the 1970s. At that time, it was established that rocks at a depth of 800-2300 metres with a certain concentration of useful elements could be exploited in the future. However, the exploitation of mineral resources should always be assessed in terms of broad economic benefits, which does not mean exploitation at any cost without regard to nature conservation. Another complication is the discovery of other, more easily accessible, cheaper to exploit and large reserves of these elements in the world.

I believe that in view of the changing conditions and the situation regarding the supply of raw materials, we should – and we are planning to – review the existing recoverability criteria, i.e. the limit values of a resource’s parameters to classify it as being recoverable.

Poland wants to reach for mineral resources of the Atlantic. What are we looking for at the bottom of the ocean? What have we managed to achieve in this area?

Piotr Dziadzio: Deposits of polymetallic minerals at the bottom of the oceans are a future-oriented source of raw materials. For that reason, Poland has been cooperating with other countries for many years under the International Seabed Authority (ISA), as well as the Interoceanmetal Joint Organization. We have rights to land in the Atlantic Ocean – on the Mid-Atlantic Ridge – and we are also one of six members with rights to land in the Pacific Ocean in the Clarion-Clipperton Zone. By participating in the work of the ISA, Poland will have the opportunity to carry out research on these plots and thus have priority in the exploitation and use of the resources discovered.

At the bottom of the oceans, we are mainly looking for polymetallic nodules in the Clarion-Clipperton Zone or polymetallic sulphides found on the Mid-Atlantic Ridge.

Poland has already organised the first scientific and research cruises. The most recent one took place in late August and early September this year aboard an American research vessel. The cruise was attended by representatives of the Polish Geological Institute, the Ministry of Climate and Environment, the Institute of Geological Sciences of the Polish Academy of Sciences, the Institute of Oceanography of the University in Gdańsk, the Adam Mickiewicz University in Poznań and Maritime University of Szczecin. Apprentices from Tanzania and Bangladesh also took part in the cruise, as part of an agreement with the ISA. The research covered the entire area covered by the Polish exploration license. These and subsequent studies will deliver a geological analysis of the contracted area and allow for planning of future activities.

Can we still hope to discover new mineral deposits? Which areas are most promising in terms of occurrence of new mineral deposits?

Mateusz Damrat: We can certainly hope for the discovery of new deposits, but probably not as ground-breaking as in the last century. Please note that our current resource base is a result of large-scale exploration work carried out in the late 20th century. Unfortunately, we no longer anticipate such spectacular discoveries of new deposits, for the simple reason that the geological structure of the country has been fairly well surveyed in recent decades.

Some prospects for the discovery of polymetallic deposits exist in the Silesian Voivodeship, where the "Myszków" deposit has already been documented, as well as in the Sudetes and the Fore-Sudetic Block. However, no as significant resources as the copper and silver deposits exploited today by KGHM can be expected.

As far as Poland's hydrocarbon resources are concerned, despite many years of oil and gas exploration, there are still areas that are less well explored and offer the opportunity to discover and document additional resources, including Western Pomerania, Greater Poland and the Carpathians. For the existing hydrocarbon reservoirs, the so-called recovery factor of these reservoirs can be improved, e.g. through enhanced recovery techniques, including the fracturing or injection of displacement gases such as carbon dioxide.

I believe that we should also discuss new reservoir potential in terms of technology development. The development of mining technologies may make it possible to re-access old deposits that are currently uneconomic to exploit, not least because of their great depth. Advances in ore processing technologies also need to be taken into account, which means that more and more, not only of the main raw material, but also of associated elements (such as rare metals, especially those of strategic importance for modern technologies) can be recovered.

Suppose we have an explored, documented deposit. What needs to be done to start exploiting it?

Piotr Dziadzio: There is a long way to go between the discovery of a deposit in a particular area and starting to exploit it.

In today's reality of spatial planning, environmental protection, mining supervision and many other necessary regulations, numerous formal requirements must be met in order to be able to safely and legally exploit the deposit. A license for mineral extraction under the Geological and Mining Law cannot be awarded without the consent of the local government. This consent must be based on the findings of a spatial development plan or at least a study, and the planning process cannot completed quickly.

For a mining project, an environmental impact report must be drawn up and a so-called environmental decision obtained. For large projects, where such a decision is issued by the Regional Directorate for Environmental Protection, and the exploitation might interfere with the natural environment, this process can take several years to complete. A mineral extraction license is therefore only the conclusion of a long formal and legal procedure. Once the license has been granted, the formalities for commissioning the mine will need to be completed.

Modern technologies such as electromobility, digitalisation, Industry 4.0 and the power engineering transitions are increasing the demand for critical raw materials. What exactly are the critical raw materials?

Piotr Dziadzio: Electrical vehicles, the expansion of modern computer networks or green energy cannot be created without the use of special raw materials. Strong demand can result in difficulties in sourcing these materials. Critical raw materials are defined as those that are either very risky to obtain from both primary and secondary sources, or very difficult to obtain with little potential for substitution. There are currently 17 items on the list of critical raw materials for the national economy.

The production of efficient batteries and energy storage is closely related to such materials as lithium, nickel, cobalt, manganese and graphite. Electric vehicle motors or wind turbines require permanent magnets to operate. These are made from rare earth elements. Note that electricity-related technologies consume huge amounts of copper and aluminium, and without securing the availability of these raw materials, it is impossible to talk about the development of new technologies. Technologies using common elements that can replace lithium in batteries, for example, must therefore be developed.

Does Poland have resources of these materials? Do we stand a chance to source them from our deposits?

Piotr Dziadzio: We have some minerals in the country that are on the European list of critical raw materials. We have huge resources of good-quality coking coal. We also have barite and fluorite that we do not currently exploit. We have gallium, germanium, vanadium, tungsten, cobalt in small quantities, which occur as associated substances in polymetallic copper ores and zinc and lead ores. There are indications that other critical minerals are also present in our area. Whether these deposits prove to exist will become clear in a few years' time, following a more detailed geological survey.

The prospects for the presence of critical raw materials in Poland are therefore rather limited. Is there an alternative? How can we source these minerals?

Piotr Dziadzio: The vast majority of strategic and critical raw materials for the Polish economy are imported, so it is vital to seek to create the right framework for cooperation and partnerships to source these raw materials for the Polish economy. Such cooperation has just been initiated within the framework of the national raw materials policy. It involves concluding cooperation agreements between the Polish geological survey and geological surveys of other countries.

Geological information, particularly on mineral deposits, is the starting point for the entire investment process related to the exploitation of natural resources. Specific mining projects are then undertaken based on this information. Poland has already concluded cooperation agreements with the Democratic Republic of Congo, Mongolia, Uzbekistan, Ukraine and the Dominican Republic. Agreements with Argentina, Kazakhstan and Vietnam are also planned. We realise that the areas of the EU's international cooperation in raw materials coincide with ours, which further proves that we have made the right choices. Another important aspect is the raw material substitution and the development of new technologies based on the domestic resources.

One of the areas in the development of clean energy in the country is geothermal energy. What is the geothermal potential of our country and how can we use the geothermal resources?

Mateusz Damrat: Poland has a significant geothermal potential that should be exploited appropriately. According to geological studies, the most promising areas for the extraction and use of thermal waters include the Podhale region and the area stretching from Szczecin to the edge of the Świętokrzyskie Mountains. The hydrogeological conditions in these areas are well explored on a regional scale which significantly reduces the investment risk. The Sudetes with their foothills have also been fully classified as a prospective area for the extraction of thermal waters. It can therefore be assumed that nearly two-thirds of our country are prospective areas for geothermal development.

In Poland today, we have 63 documented reservoirs of thermal waters, some of which are of medicinal quality. The exploitable resources of thermal water intakes reach just over 6,000 cubic metres per hour.

At present, the thermal water is used in seven municipal and two local heating plants, as well as in dozens of leisure and spa centres. It is interesting to note that thermal waters are also used in our country for fish farming and production of cosmetics, but this is only a fraction of the total intake. Organic farming should also be considered as a promising segment of the national economy for the use of geothermal heat in the years to come. Virtually the entire area of our country at depths of the order of 100-200 m lies within the range of temperatures that are perfectly suitable for use for individual heating based on ground source heat pumps. This is also an important domain for the use of the Earth's heat.

Are there any barriers to the development of geothermal energy use in Poland?

Mateusz Damrat: Thermal water extraction and development projects involve the economic risks inherent in all economic investment projects. The main risk factors are the actual geological and hydrogeological conditions. Despite being relatively well identified on a regional scale, it may turn out that drilling in a particular location will not succeed in capturing water with the expected exploitation performance, particularly the output. It is only after the drilling that the temperature, mineralisation or inflow of the water can be assessed. Drilling is obviously a very costly procedure. Therefore, from the investor's point of view, financial support programmes such as grants or loans offered by the National Fund for Environmental Protection and Water Management are a good way of reducing the risk in geothermal projects. Measures taken in recent years by the Ministry of Climate and Environment and the Fund have virtually eliminated barriers to geothermal development in Poland.

There has been much debate about shale gas production in relation to energy prices, new technology and the need to become independent of Russian gas more quickly. Is Poland able to extract this gas?

Piotr Dziadzio: The extraction of hydrocarbons from reservoirs is possible if certain conditions are met: the reservoir concerned has been documented, which should be evidenced by the results of reservoir tests showing both, the quantity and quality of the raw material available; there are technical means of bringing the raw material to the surface; and it is possible to derive economic benefit from the exploitation. Unless any of these premises are satisfied, it is difficult to speak of exploration success.

Between 2009 and 2015, 72 boreholes were drilled into shale formations in Poland, with a total area of approximately 230 km, half of which were made by Polish companies. More than a dozen so-called hydraulic fracturing treatments were performed to support the extraction process. Attempts to achieve continuous commercial gas flows have not produced positive outcomes, despite the promising initial results.

Geological conditions and technical capabilities were among the main factors that largely attributed to that. According to the investors, the lack of expected results was due in part to the complex geological structure of most of the study area and the greater depth of the prospective levels. The lower thickness of rocks rich in hydrocarbons and low unit content of gas per tonne of rock were also significant factors. Moreover, the "Polish shale" was more plastic than brittle, owing to its thickness, and this factor is extremely important in the process of fracturing and subsequent exploitation.

As a result of the analyses performed at the PGI-PIB, based on all available data, we pointed out that only a few isolated zones in Gdańsk Pomerania, Podlasie and Lublin regions could potentially constitute areas for further exploration. The question whether there is a chance for documented deposits and the future exploitation in these areas remains unanswered. It is worth noting that potentially prospective zones identified by PGI-PIB are found in urbanised areas (Kashubia, Gdańsk Pomerania) and in the marine area of the Baltic Sea, which should be taken into account in terms of land availability.

The Ministry of Climate and Environment is working on legislative changes for the protection of mineral deposits. Why do we need to protect mineral deposits? What does this protection involve?

Piotr Dziadzio: The protection of mineral resources is intended to ensure the security of the resource base for the production of raw materials, access to which is required and necessary for the fulfilment of the state's strategic tasks, such as energy security or stable economic development. It is therefore necessary to ensure access to deposits that are strategic in nature, considering them as a reserve base to ensure that they can be used in the future.

The areas with mineral deposits may, in specific cases, be developed with renewable energy facilities or used for agricultural, forestry, tourism, sports and leisure purposes, with appropriate restrictions on the possibility of locating permanent buildings. The above options for legislative solutions are currently under way in a draft act amending the Geological and Mining Law and certain other acts. Procedures have been proposed to enable the recognition (by means of an administrative decision) of mineral deposits meeting certain statutory criteria as strategic deposits in whole or in part to enable protection against permanent development. 

 

Publication of the article was financed by the National Fund for Environmental Protection and Water Managemen