As the global economy increasingly relies on critical minerals for various technological advancements, the inadequacy of merely focusing on access to these resources becomes evident. While securing access to critical minerals is undoubtedly crucial for ensuring supply chain stability, it is equally important to address the broader implications of their extraction, processing, and usage. Environmental degradation, social injustices, and geopolitical tensions often accompany the extraction of these minerals, particularly in regions where governance is weak and regulations are lacking. Therefore, a comprehensive approach that considers not only access but also sustainability, ethical sourcing, and responsible consumption is imperative. Without such measures, efforts to secure access to critical minerals may inadvertently perpetuate existing inequalities and environmental degradation, undermining the long-term viability of global supply chains and exacerbating global challenges.
Tag: GS – 1 Mineral & Energy Resources GS -2 Government Policies & Interventions GS – 3
In News:
A recent article emphasizes that merely possessing access to critical minerals is not enough. The complete cycle, from processing these minerals to manufacturing the final product, also necessitates access to technology.
Understanding Critical Minerals
- Definition
- Critical minerals are indispensable for economic development and national security, with scarcity or concentration leading to supply chain vulnerabilities.
- Dynamic Declarations
- Countries formulate unique lists based on evolving factors such as technologies, market dynamics, and geopolitical considerations.
- Declarations from the US, Japan, the UK, EU, and Canada highlight critical minerals.
- India’s Critical Minerals
- Identification of 30 critical minerals in India based on disruption potential, substitutability, cross-cutting usage, and recycling rates.
- States like Bihar, Gujarat, Jharkhand, Odisha, Tamil Nadu, Uttar Pradesh, Chhattisgarh, and Jammu and Kashmir host these minerals.
Global Dynamics of Critical Minerals
- Rising Demand
- Surge in demand from 2017 to 2022 for critical minerals like lithium, cobalt, and nickel.
- Clean energy technologies will escalate mineral demand fourfold by 2040.
- Policy Responses
- Countries enact policies to diversify mineral supplies, addressing uncertain global chains.
- Regulatory measures adopted in the US, Canada, EU, Australia, and resource-rich nations.
- Geopolitical Concentration
- Certain countries control significant shares of critical minerals, impacting supply chains.
- Geopolitical tensions, like the US-China trade war, add complexity.
Significance of Critical Minerals
- Economic Impact
- Vital for high-tech industries, defense, and green technologies, contributing to job creation and innovation.
- Essential for industrial production and supply-chain networks.
- National Security
- Crucial for defense, aerospace, nuclear, and space applications, ensuring self-reliance.
- Sustainability Goals
- Plays a pivotal role in achieving environmental sustainability.
- Essential for India’s net-zero emissions goal by 2070.
- Industrial Integration
- Identified minerals contribute significantly to various strategic value chains.
- Collaborations, like the Minerals Security Partnership (MSP), enhance mineral security.
Concerns and Challenges for India
- Limited Reserves
- Heavy dependence on imports, with 100% reliance on lithium and nickel and 93% on copper.
- Limited domestic reserves pose vulnerabilities to price fluctuations and supply disruptions.
- Increasing Demand
- Shift to renewable energy technologies and electric vehicles escalates demand, with higher mineral input requirements.
- Geopolitical Dynamics
- China’s dominance in rare earths and processing capacities poses challenges.
- India’s MSP membership excludes certain resource-rich nations.
- Lack of Processing
- Accessing critical minerals is not enough; processing and manufacturing final products require technology.
- The gestation period for such processes is a concern for India’s decarbonization goals.
Steps for Boosting Critical Minerals Availability
- Resource Assessment
- Evaluate domestic reserves and explore sustainable extraction options.
- Develop strategies for a steady supply, considering global risks.
- Financial Support
- Attract public and private investments through financing mechanisms, incentives, and funding models.
- International collaborations and innovative financing can mobilize necessary capital.
- Technological Innovation
- Foster domestic technological capabilities, research and development, and innovation in clean energy technologies.
- Encourage technology transfer, academia-industry collaborations, and ecosystem development.
- Establishing Specialized Bodies
- Consider creating a National Institute or Centre of Excellence for Critical Minerals, similar to Australia’s CSIRO.
- Periodically update critical mineral lists and formulate a strategic approach.
Conclusion
- Recent government actions reflect a proactive approach to secure a stable supply of critical minerals.
- Identification of 30 critical minerals and amendments to mining laws demonstrate efforts to address potential shortages.
- Challenges persist, including global concentration and China’s dominance.
- Overcoming these challenges is crucial for India’s decarbonization journey and achieving net-zero goals by 2070.
| UPSC Previous Year Questions Prelims (2012) Q. Recently, there has been a concern over the short supply of a group of elements called ‘rare earth metals’. Why? 1. China, which is the largest producer of these elements, has imposed some restrictions on their export. 2. Other than China, Australia, Canada and Chile, these elements are not found in any country. 3. Rare earth metals are essential for the manufacture of various kinds of electronic items and there is a growing demand for these elements. Which of the statements given above is/are correct? (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Ans: (c) Mains (2021)Q. Despite India being one of the countries of Gondwanaland, its mining industry contributes much less to its Gross Domestic Product (GDP) in percentage. Discuss. Mains (2017)Q. “In spite of adverse environmental impact, coal mining is still inevitable for development”. Discuss. |
Source: IE
Frequently Asked Questions (FAQs)
1. Why is access to critical minerals alone insufficient for ensuring sustainable resource management?
Answer: Access to critical minerals addresses immediate supply concerns but fails to account for the broader environmental, social, and geopolitical implications of their extraction and usage. Sustainable resource management requires a holistic approach that considers ethical sourcing, environmental impacts, and social justice issues.
2. How does focusing solely on access to critical minerals perpetuate environmental degradation?
Answer: Many critical minerals are extracted through environmentally damaging processes, such as open-pit mining or deep-sea mining, leading to habitat destruction, pollution, and biodiversity loss. Ignoring these impacts in the pursuit of access exacerbates environmental degradation and undermines long-term sustainability goals.
3. What social injustices can arise from prioritizing access to critical minerals?
Answer: Extraction of critical minerals often occurs in regions with weak governance and limited regulatory oversight, leading to exploitation of local communities, displacement of indigenous populations, and human rights abuses. Emphasizing access without addressing these injustices perpetuates social inequalities and undermines ethical sourcing principles.
4. How does the lack of consideration for responsible consumption affect the sustainability of critical mineral resources?
Answer: Focusing solely on access encourages overconsumption and wasteful usage of critical minerals, leading to resource depletion and increased pressure on fragile ecosystems. Responsible consumption practices, such as recycling, reuse, and substitution, are essential for mitigating these risks and promoting long-term resource sustainability.
5. What role does geopolitical tension play in the inadequacy of critical minerals access alone?
Answer: Concentration of critical mineral reserves in geopolitically unstable regions or countries with restrictive trade policies can lead to supply disruptions and geopolitical conflicts. Diversifying supply sources, promoting international cooperation, and investing in domestic production are necessary to mitigate these risks and ensure global supply chain resilience.
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