Department of Science and Technology has released a report “Critical Non-Fuel Mineral Resources for India’s Manufacturing Sector - A Vision for 2030”, regarding the status of minerals and respective strategies for sustainable future.
This report presents a list of critical minerals and impact on manufacturing sector and competitiveness, directly arising from supply constraints (including recycling potential, substitutability, etc.) associated with these minerals. It also focuses on criticality associated with critical minerals for needs in key sectors such as defence and space technology.
According to the findings, India will be short of critical minerals necessary for developing clean-energy applications, infrastructure for its solar mission and for manufacturing high-technology products in the future.
The study identifies 12 minerals out of 49 that were evaluated as ‘most critical’ for India’s manufacturing sector by 2030. These are beryllium, chromium, germanium, limestone, niobium, graphite, rare earths, rhenium, strontium, tantalum and zirconium. Other minerals like limestone and graphite, while currently abundantly available in India, are deemed ‘critical’ because extractable resources could be scarce in the future.
For others, the report says, India is 100 per cent import-dependent for seven out of 12 identified critical minerals and does not have any declared resources for them, except light rare-earths (found along with monazite sands) and beryllium. Rare earths are a group of 17 minerals necessary for making everything from nuclear reactors to flat-screen televisions, and, China currently controls 94 per cent of their global supply. The country will be heavily dependent on China and US in the coming years to source these materials for its manufacturing sector.
Global Demand
The global demand for minerals has increased steadily over the last 50 years, and it is likely that demand will continue its upward trend in response to the rising global population, burgeoning prosperity and consumerism of BRIC economies as well as the exploding demand for modern rare-mineral intensive technologies.
Mineral consumption has diversified through time in conjunction with technological advances. With time the unique chemical properties of a growing number of elements of the periodic table have been utilised for innovative and efficient uses. Modern cars, flat screen televisions, smart phones and a variety of day to day utility products rely on range of materials such as cobalt, lithium, antimony, molybdenum, copper, gallium etc. These minerals have gained prominence in recent years. Securing the supply of these, to satisfy exponential demand for these minerals in a sustainable fashion, has become a major challenge to many resource dependent countries.
Domestic Demand
In India, minerals are critical inputs to industry and will play a pivotal role in the success of the Make in India campaign. The demand for a diverse range of mineral resources in India is proliferating due to rising population, changing lifestyles, pursuit of new and sustainable technologies and environmental concerns. Today, with increase in demand, every mineral is susceptible to supply constraints. India needs to stay committed to achieve optimal utilisation of India’s mineral resources through scientific, sustainable and transparent mining practices, geo-scientific exploration and the associated research and development.
Non-fuel minerals and make in India program
In India, the growth of domestic manufacturing has not been able to match the rapid growth in the demand for consumer goods and technology-enabled products, neither in scale nor in terms of diversity.
The Make in India program is well timed to provide the necessary impetus for domestic manufacturing. However, a thriving industrial base needs a steady supply of raw materials and must anticipate future demand.
The level of understanding of the demand for non-fuel minerals is not prevalent. The notion of ‘strategic minerals’ or ‘critical minerals’ is relatively new to policy makers in India as compared to other major economies of the world.
Critical minerals
The total number of 49 non-fuel minerals is identified mainly on the basis of their economic contribution to the manufacturing sector. Their economic importance and supply risks have been evaluated criticality. Economic importance is an indirect measure of the quantum of use of a mineral in a particular sector. Even if a mineral is used in small quantities, in a high-value-add manufacturing sector it can be more critical as compared to a mineral used in large quantities in a low-value-add manufacturing sector.
Most critical minerals for the year 2030
Metals/minerals considered are:
Chromium, Beryllium, Germanium, Limestone, Niobium, Graphite, Rare earths, Rhenium, Strontium, Tantalum and Zirconium.
These minerals are considered as strategic because of the following main reasons:
1. Substitutes are limited or lead to a loss of properties and are often subject to the same constraints (e.g. production is concentrated in a few geographies).
2. As many of these can only be produced as a by-product of base metals extraction, potential for accelerating production / supply on standalone basis is very limited.
3. Inconsistent mining regulations, legislative regimes and environmental risks for many of these minerals
4. Continued advances in technology development – there is a swift increase in demand for metal intensive technology such as LCD screens, hybrid cars, wind turbine magnets, hi-tech defence applications and various other applications in modern economy. Most of these scientific advances require key mineral inputs. These applications are critical to the end product.
5. Dependence on these technologies is increasing worldwide.
China is currently a leading global supplier for six out of the 12 mineral resources identified as critical for India by 2030.
India is 100 per cent import-dependent for seven out of 12 identified critical minerals and does not have any declared resources for them, except light rare-earths (found along with monazite sands) and beryllium thus they are vulnerable to supply/price fluctuations. Keeping the above points in mind, it becomes imperative that India develops a comprehensive policy with regard to the exploration, production, consumption and other issues associated with these minerals.
Critical minerals – 2030
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Key parameters to impact economic importance
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Key parameters to impact Supply risk
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1 Rhenium
|
Super-alloys in aerospace
and machinery uses rhenium
as a principal alloying
element
|
India is currently 100% import dependent, with no declared reserves so far, as it is mainly obtained as a by-product of copper/molybdenite ores.
|
2 Beryllium
|
Current use is exclusively
in the paper sector (very
low value add), in future
finds its use in a diversified
group of sectors
|
Complete import dependency with 99% of global supplies controlled by US and China only. For most of the applications, substitutes are difficult to find.
|
3 Rare earths
(Heavy)
|
a) All the major green technologies
depend on heavy rare earths imparting the special properties to them
b) Extensive applications
within the defence industry
|
India is 100% import dependent, with 94% of global supplies controlled by China. India bears mainly deposits for lighter rare-earth elements (in form of monazite).
|
4 Germanium
|
Decline in its consumption
from steadily growing machine
manufacturing, while gaining demand from high value sectors (electronics and metals)
|
India is likely to continue with 100% import dependency. It is a secondary mineral. Recovered mainly as a by-product of Zinc (also from silver, lead and copper). Recyclability is low and alternative substitutes are a difficult find.
|
5 Graphite
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Diversification of its use
from electronics alone into
other value add sectors
as well
|
Majority of the resources of graphite are unexplored and those identified are of poor grade. Only 5% of declared resources have been translated into viable reserves. India can minimise future risk by carrying out survey and exploration activities to open new mines.
|
6 Tantalum
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Decline in its consumption from steadily growing machine manufacturing, while gaining demand from high value sectors (electronics and metals)
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No declared resource available in India, while 95% of global supplies are controlled by a single country Brazil. Substitutes are difficult to find, whereas recycling potential is also low.
|
7 Zirconium
|
Rising demand from the
high value chemical manufacturing
and electronics
sector
|
75% of domestic resource is already identified as a viable reserve. Although R/P is very high (53 years), but lesser options for substitutes and difficulty in recycling makes it susceptible to high risk.
|
8 Chromium
|
All were identified critical in
the reference year (2011)
as well
|
Major application is in manufacturing of stainless steel for which nearly no substitutes are available at prevailing cost and efficiency. Potential environmental hazard, and has low R/P
|
9 Limestone
|
a) No substitute is available at present for its use in cement manufacturing.
b) Recovery/recycling from cement is less likely, as construction work has a high lock-in period.
c) Import dependency would rise from 0% to 20% if no accretion of reserves happens in coming 20 years.
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Recommendations and potential approach for India
India should develop its own policy response from amongst the following options and should craft an integrated roadmap for mining, production and usage of these minerals.
1. Institutional reforms to aid better analysis: In India, one of the key barriers is the lack of capacity and coordination between existing institutions to plan for the supply of (and to anticipate the demand for) the mineral inputs required for the manufacturing sector. An institutional arrangement that links the requirements of the manufacturing sector with a concomitant strategy for mineral development is vital.
2. Domestic interventions: Enhanced exploration and R&D in mining and mineral processing technologies is mandatory. Supplies of several key elements are unlikely to substantially increase in the coming decades unless there is some big technology breakthrough because it takes a lot to develop mines.
3. Promoting R&D on enhancing recyclability and finding substitutes for critical minerals: India has high production for primary metals, yet no sign of by-product recovery [except tin] is evident so far. This is a lost opportunity, and demands suitable R&D interventions and policy support.
4. International interventions: Strategic acquisition of mines and signing of diplomatic and trade agreements will ensure India’s long term mineral security.
5. Build a national stockpile: Evaluating the option of building a national stock pile for identified materials will not only help to meet supply in case of exigencies but also keep prices under control.
