Daily Current Affairs : 30-June-2023

The identification of critical minerals essential for economic development and national security is a significant undertaking by the Indian government. This essay explores the proposals made by the government, the reasons behind this exercise, the three-stage process of identification, the list of 30 critical minerals, and global practices in this regard. Additionally, it examines the domestic and global outreach efforts, the significance of critical minerals, and the challenges India faces in securing a steady supply.

Proposals by the Government

Basis of Identification:

  • Expert team constituted by the Ministry of Mines.
  • Initiative taken by the Planning Commission of India in 2011.
  • Analysis of 11 groups of minerals under various categories.

Trigger for the Exercise:

  • International commitments to reduce carbon emissions.
  • Urgent need to reassess mineral requirements for energy transition and net-zero commitments.
Three-Stage Process of Identification

First Stage: Global Strategies

  • Examination of strategies employed by countries like Australia, USA, Canada, UK, Japan, and South Korea.
  • Identification of 69 critical minerals considered by major global economies.

Second Stage: Inter-Ministerial Consultation

  • Engagement with different ministries to identify minerals critical to their sectors.

Third Stage: Criticality Assessment

  • Derivation of an empirical formula for evaluating minerals criticality.
  • Factors considered: economic importance and supply risk.
List of 30 Critical Minerals
  • Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, PGE, Phosphorous, Potash, REE, Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium, Zirconium, Selenium, and Cadmium.
Specialized Agency and Domestic Strategy

National Institute or Centre of Excellence

  • Need for establishing a dedicated research organization for critical minerals.
  • Similar to Australia’s CSIRO, which specializes in minerals research and development.

Proposed Centre of Excellence for Critical Minerals

  • Role in updating the list of critical minerals periodically.
  • Execution of functions for the development of an effective value chain.
Global Practices

USA: Two-Stage Screening Methodology

  • Early warning screening tool and in-depth supply chain analyses.
  • Consideration of supply risk, production growth, and market dynamics.

United Kingdom: Three Indicators

  • Estimation of production concentration, companion metal fraction, and recycling rate.
  • Identification of 18 critical minerals.

European Commission: Parameters for Criticality

  • Economic importance in end-use applications and value added of EU manufacturing sectors.
  • Supply risk as a significant parameter.
  • Identification of 34 critical raw materials.

Japan and Australia: National Approaches

  • Japan identifies 31 critical minerals, while Australia lists 24 with two additions.
Domestic and Global Outreach Efforts

Survey in J&K by Geological Survey of India

  • Exploration of lithium ore resources in Reasi district.

Establishment of KABIL

  • Joint venture company to secure overseas mineral assets critical to India’s supply needs.

Induction in Mineral Security Partnership

  • India’s inclusion in the US-led collaboration for investment in critical mineral supply chains.
Significance of Critical Minerals for India
  • Essential for manufacturing green technologies, high-tech equipment, aviation, and national defense.
  • Support for sectors such as electric vehicles, fuel cells, wind energy, aviation, and photovoltaic solar technologies.
  • Requirement to develop a national strategy to ensure resilient critical minerals supply chains.
Challenges for India

China Angle

  • China’s dominance in critical mineral supply chains affected by Covid-19-related lockdowns.

Russia-Ukraine Crisis

  • Implications of the conflict on critical mineral supply chains, including nickel, titanium, and rare earth elements.

Supply Chain Disruption due to Power Shifts

  • Changing alliances between countries impacting critical mineral supply chains.
  • Strategic partnership between China and Russia affecting global supply dynamics.

Indispensability for Renewable Energy

  • Increasing mineral requirements for renewable energy technologies and electric vehicles.
  • Reliance on foreign partners due to limited domestic reserves.

Important Points:

  • The Indian government has identified 30 critical minerals essential for economic development and national security.
  • The identification process involved an expert team, analysis of 11 groups of minerals, and consideration of global strategies.
  • The trigger for this exercise was India’s international commitments to reduce carbon emissions and the need for reassessing mineral requirements for energy transition and net-zero commitments.
  • The three-stage process included examining global strategies, inter-ministerial consultation, and a criticality assessment based on economic importance and supply risk.
  • The list of 30 critical minerals includes antimony, cobalt, copper, lithium, nickel, titanium, and others.
  • The government proposes the establishment of a National Institute or Centre of Excellence for Critical Minerals to periodically update the list and develop an effective value chain.
  • Global practices in identifying critical minerals include two-stage screening methodologies in the USA, three indicators in the UK, and parameters of economic importance and supply risk in the European Commission.
  • Domestic and global outreach efforts involve surveys in Jammu & Kashmir, the establishment of the joint venture company KABIL, and India’s induction into the Mineral Security Partnership.
  • Critical minerals are essential for manufacturing green technologies, high-tech equipment, aviation, and national defense.
  • Challenges for India include China’s dominance in critical mineral supply chains, the Russia-Ukraine crisis, supply chain disruption due to power shifts, and the indispensability of critical minerals for renewable energy.
  • India may need to rely on foreign partners due to limited domestic reserves of critical minerals.
Why In News

The Centre has taken significant measures to ensure the steady supply of the 30 identified critical minerals, recognizing their vital role in driving the country’s economic growth and safeguarding national security. Furthermore, extensive research and development initiatives are being pursued to enhance domestic production capabilities and reduce dependency on foreign sources for these essential minerals.

MCQs about Critical Minerals

  1. What was the trigger for India’s identification of critical minerals?
    A. International trade agreements
    B. Economic growth projections
    C. Carbon emissions reduction commitments
    D. Geopolitical tensions
    Correct Answer: C. Carbon emissions reduction commitments
    Explanation: India’s international commitments to reduce carbon emissions prompted the country to reassess its mineral requirements for energy transition and net-zero commitments.
  2. Which country adopted a two-stage screening methodology to identify critical minerals?
    A. India
    B. United States
    C. United Kingdom
    D. Australia
    Correct Answer: B. United States
    Explanation: The United States adopted a two-stage screening methodology involving early warning screening tools and in-depth supply chain analyses to identify critical minerals.
  3. What are the challenges faced by India in securing critical minerals?
    A. Economic instability
    B. Limited domestic reserves
    C. Technological constraints
    D. Political conflicts
    Correct Answer: B. Limited domestic reserves
    Explanation: India faces challenges in securing critical minerals due to limited domestic reserves, which may require the country to rely on foreign partners to meet its needs.

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