By Dr. Amit Tripathi
A lot has been mentioned in current occasions about the value of the group of seventeen metals collectively referred to as Rare Earth Elements or REE. The value of these metals for the financial and strategic safety can’t be a lot overstated. China has international dominance in REE mining processing, worth addition technologies as nicely as international REE provide lines. China’s demonstrated capacity and willingness of employing its dominance in REE towards attaining its strategic objectives combined with the current show of belligerence in the Indo Pacific has the international neighborhood concerned. Recent upgrading of the QUAD as a prospective strategic alliance is a step by the concerned international neighborhood to guard against expanding Chinese assertiveness.
As its membership grows, it is attainable that the QUAD may perhaps morph into an Indo-Pacific Territorial Organization akin to a NATO alliance against the former USSR.
It has been a decade of Senkaku island confrontation and the consequent Chinese REE provide squeeze on Japan, the US, Japan and its NATO allies have been speaking of diversifying REE provide chains away from the locations of Chinese influence. These efforts are most likely to get a enhance after the discussions of QUAD head of states begins translating into strategic initiatives.
India is in a position of becoming the big player in this space and be a big supplier in the international REE provide chain. According to a US Geological Survey report China has about 37 % of identified international REE reserves but produces about 60 per cent of international REE. India has about 6 % of international REE reserves and produces a miniscule 1 % of international provide. India nevertheless, has an very higher possibility of discovery of new deposits along its coastline and tough rock carbonatites that exist all more than the peninsula.
India is, for that reason, in a special position of providing comfort of generating “non-Chinese” REE ore that could command a “reliable supplier” premium in the western higher-tech electronics and defense market. Large tracts of the Indian Ocean coastline from East Africa to Myanmar, Thailand, Indonesia, and Australia are also host to wealthy REE containing mineral sands. These sands are enriched in REEs by way of continuous weathering and attrition of REE wealthy rocks more than millions of years.
Availability of such trusted raw material sources would naturally inspire setting up of downstream industries of refining, worth addition, manufacture of Rare Earth Permanent Magnets, and other higher worth and higher technologies goods. Reliable domestic provide of these goods would be a big attraction to additional higher worth industries such as electronics, defense, electric autos, and quite a few other people. One can only consider the enhance this would provide to Make in India and Atmanirbhar Bharat initiatives!
The way forward is multifold for India. Recent adjustments in the Indian mineral policy initiatives have struggled, in particular in the higher worth metals space, with converting the mineral prospective to tangible mineral production. A dominant opinion in the geological neighborhood is of the opinion that the policy of income maximization although auctions is a big bring about of this sustained imbalance. Globally mineral discoveries are completed by compact businesses referred to as junior explorers. Indian policy initiatives have been significantly less than profitable in producing a fertile ecosystem for this sector. Globally, various big economies have effectively premised big elements of their development on miner exploration. Such examples of confirmed track record of results can be a template for a progressive mineral exploration policy reforms in India. Rapid progressive movement in mineral exploration policy may well incentivize enhanced exploration investment in the private sector and pave the way for fast mineral discoveries. Mineral exploration is a higher-threat small business, and the international trend is for governments and Geological Surveys to withdraw from investing public funds into such higher-threat sectors although producing a policy substrate for compact entrepreneurs to succeed. Even big mining corporates have globally scaled down their exploration division and are largely focused on acquisition of these compact juniors to strengthen their resource inventory. India, with its big land mass, nicely created geological information and hugely educated geologists, and fantastic infrastructure has all the components offered to be naturally profitable.
While domestic reforms are awaited, Indian businesses can be encouraged to type such junior exploration enterprises in the Indian Ocean Region to prospect for REEs and feed worth added goods into Indian market place. Most governments in this area have mining and exploration friendly policies and welcome investment. India has robust historical, cultural, small business and Diaspora hyperlinks in this area that has created more than centuries of trade and migration. No other nation enjoys such a special strategic network anyplace in the globe. This is a special strength that can be leveraged to meet the vital metal specifications of the nation. Indian businesses are currently leveraging these hyperlinks and goodwill for present trade and small business promotion and the exact same can be made use of for securing REE concessions in the area by Indian businesses.The Indian Diaspora have prominent enterprises and an fantastic network in the host countries’ government, administration, enterprises and frequently personal and handle big element of domestic enterprises and inland provide chains. This is how India’s soft energy and capabilities diverge from China. It is attainable to correctly leverage this type of compact scale, diversified pre-current, private sector, trade and cultural networks as soft energy against Chinese centralized and command program exactly where most Chinese enterprises are suspected to covertly report to the Chinese Communist Party and hence project a significantly less than benign aura of cash and tough energy. Traditionally the Indian expat networks have been wary of dealing with the government, nevertheless, more than the final two decades, with sustained networking help Indian missions have constructed a substantial goodwill inside these Diaspora networks. Within the exact same time frame the use of Chinese tough energy and capturing assets as nicely as economic bullying has developed a backlash. Hambantota, Djibouti, Maldives and Gwadar are extremely a lot a reminder of what may well take place with the Chinese financed model. Public and governments of the Indian Ocean Region are now conscious of these dangers and welcome private sector led Indian investment.
In the Indian Ocean Region, the mineral market largely exists in the private sector although the governments favor to keep in a regulatory function. REEs for that reason, would largely be explored, mined, processed, and created in the private sector. Unlike in India, most other jurisdictions treat REEs like any other mineral. Mineral exploration rights, and even the detailed mineral inventory info is largely in the private sector and government databases are frequently archival and outdated. Government to Government initiatives would for that reason meet only with partial results.
Leveraging the big private sector networks of Diaspora and cultural soft energy ties with help and encouragement by the government has a prospective to produce a massive and diversified provide chain network not just in the REE space but more than the whole spectrum of strategic metals safety for India. Indian missions in the Indian Ocean Region appreciate a massive goodwill in the Diaspora and have a prospective to lead, coordinate and encourage such networks. Engaging with the handful of Indian owned businesses that are currently operating in this space and supporting them would be a big step in strategic metals safety for India.
(The author is Director, MPXG Exploration Pvt Ltd. And has spent various years exploring for minerals in the Indian Ocean Region. He has more than two decades lengthy encounter of working in varied policy jurisdictions globally. Email: [email protected] Twitter: @geoamit Views expressed are private and do not reflect the official position or policy of TheSpuzz Online.)