Distribution of Key Natural Resources Across the World

Is Natural Hydrogen the fuel of the future?

Context: For India, an economy in growth mode with aspirations to reach net-zero emissions by 2070, the exploitation and use of Natural Hydrogen offers a potentially game-changing opportunity.

Relevance of the Topic: Prelims & Mains: Hydrogen as a fuel: advantages; resource distribution; technologies for extraction and harvesting Hydrogen. 

Hydrogen Fuel

  • Hydrogen is the lightest and the most abundant element in the universe.
    • On Earth, it is found in compounds like water or hydrocarbons. It must be created and stored before it tends to be utilised.
    • Natural hydrogen also occurs as a free gas in geology, produced by processes such as serpentinisation (the interaction of water and iron-containing rocks), radiolysis of water by radioactive rocks, and from organic matter at depth.
  • Hydrogen Fuel: Presently, Hydrogen fuel is produced by splitting water (H₂O) into its components: hydrogen (H₂) and oxygen (O₂). The hydrogen gas can be used to power fuel cells, which generate electricity through a chemical reaction between hydrogen and oxygen, releasing only water vapour as a byproduct. 
  • If harvested in a sustainable manner, natural Hydrogen may provide a clean and potentially low-cost fuel to satisfy the world’s increasing energy needs with a considerable reduction in carbon emissions as well. 

How is Hydrogen Extracted?

  • Currently, the majority of hydrogen is manufactured from natural gas through an energy-intensive and polluting process. 
  • Green hydrogen can be made using renewable electricity, however, is still prohibitively expensive and would require vast amounts of wind and solar power to work out at scale.
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Hydrogen Reserves: 

  • The presence of Hydrogen in coal mines points towards generation from underlying organic matter.
  • Active mountain ranges with tectonic activity, such as the Pyrenees, Alps, and Himalayas, are being considered as areas for geological hydrogen production. 
  • The fact that Helium co-exists with Hydrogen in a few reserves points towards some geological processes, such as radiolysis, playing a role in its generation. 

Hydrogen Reserves in the World:

  • Hundreds of hydrogen seeps have been catalogued globally in various countries, including Australia (Eyre Peninsula and Kangaroo Island), the US (Kansas, Nebraska), Spain, France, Albania, Colombia, South Korea, and Canada. 
  • An estimated tens of trillions metric tonnes of Hydrogen may be available in geologic stores. If even just 2% of these reserves are commercially exploitable, they would provide about twice as much energy as all the earth’s provable natural gas reserves —enough to meet projected hydrogen demand (500 million tonnes per year) for around two hundred years. 

Hydrogen Reserves in India

India’s Hydrogen demand is projected to grow from six million tonnes per year (Mt/year) in 2020 to over 50 Mt/year by 2070 to support its net-zero target. The natural hydrogen reserves are likely present in favourable geological structures like:

  • Hard rock formations of diverse ultramafic/mafic and basaltic assemblages
  • Andaman and Himalayan ophiolite complexes
  • Greenstone volcanic-sedimentary sequences in cratons (Dharwar, Singhbhum)
  • Sedimentary basis (for example, in Vindhyan, Cuddapah, Gondwana and Chhattisgarh), basement rocks with fractures
  • Areas where active hydrothermal systems as represented by hot springs exist.

Challenges in Exploration and Excavation of Natural Hydrogen: 

Natural Hydrogen exploitation and exploration is not easy. It has technical, logistical, economical, and safety-related challenges. 

  • Accurately locating and quantifying underground hydrogen reserves is the primary challenge. Unlike oil and gas, for which well-established exploration techniques exist, natural hydrogen exploration is still evolving. 
  • Development of efficient and cost-effective extraction technology for natural hydrogen. While modifying current gas industry practices associated with well drilling and extraction facilities, one must consider hydrogen’s specific properties, including its small molecular size and high diffusivity.
  • Hydrogen extraction also involves specific safety issues as opposed to hydrocarbons because of its high diffusivity and reactivity. 

Approaches under-development for Hydrogen Excavation: 

  • Production of hydrogen by drilling and flowing water into rock and then transporting the hydrogen to the surface for collection. 
  • Injecting water with dissolved carbon dioxide into iron-containing rocks that could potentially lead to carbon sequestration as limestone, while simultaneously producing hydrogen.

Also Read: Hydrogen as an alternative fuel: Explained 

A comprehensive geological study is essential in India, considering critical factors such as the quality, extent, thickness, accessibility, and hydrocarbon generation potential of the source rock; size and viability of hydrocarbon accumulations; potential losses during migration; and the accessibility of the area for exploration and development.

Case for Direct Cash Transfers

Context: With state governments increasingly disbursing ‘freebies’, debates have emerged regarding their economic implications on fiscal discipline. While RBI has raised concerns on rising revenue expenditure, the role of government in redistribution of resources cannot be overlooked.

Relevance of the Topic: Mains: Direct Cash Transfers, Subsidies and Freebies- Impacts

Role of the State in Redistribution of Resources

  • As defined in public economics, the role of the state is to bring about effective redistribution of resources. 
  • The principles of taxation envisages a progressive tax structure where the more affluent pay higher taxes. 
  • The revenue earned is used in social welfare and in building social and economic infrastructure. 

Approaches of Redistribution of Resources: 

  • Social Infrastructure development:
    • One form of redistribution is by creating hospitals, schools, roads, irrigation facilities, etc. which benefits people. 
    • Normally, these facilities would not be used by people in the higher income groups, and hence there is matching of expenses with the beneficiaries.
  • Subsidies:
    • The other approach to redistribution is through the subsidy schemes. These include subsidies on food, fertilizer, housing loans, etc.
      • Loan waivers help farmers when crops fail. 
      • Subsidised meals in certain States benefit street vendors, drivers, etc. 
      • Freebies like cycles, laptops and sewing machines have been given to girls/women to empower them.
    • These forms of transfers have helped improve the living standards of people.
  • Cash Transfers:
    • The PM Kisan Samman Nidhi scheme gives ₹6,000 a year to every farmer. 
    • MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act, 2005) programme gives employment for 100 days at an average wage of around ₹250 a day. 
    • Free power and irrigation is given to farmers by State governments. 
    • Cash transfers to women are also done in some states. (E.g., Mukhyamantri Majhi Ladki Bahin Yojana, Maharashtra)
Case for Direct Cash Transfers

Arguments Supporting Cash Transfers:

  • Multiplier Effectson the Vulnerable Groups:
    • Consider the case of cash transfers to women or free travel facilities.
      • Socially, women have been empowered with such transfers and are able to lead a more dignified life. 
      • Free transport encourages women to take up jobs and girls to attend school. 
  • Increases Consumption Expenditure:
    • The free food scheme (PMGKAY) of the Central Government releases considerable resources of the poor population, which they can use for buying other goods. 
    • As per NSSO Household Consumption Survey, people were spending less on food and moved up the ladder. This was possible as basic food was provided by the government. 
    • Even in the case of the PM Kisan scheme, the cash given is used exclusively for consumption. 

Also Read: RBI asks States to sustain Fiscal Prudence 

Way Forward: Balancing Welfare and Fiscal Responsibility

  • Targeted allocation: To ensure benefits reach the most deserving segments.
  • Conditional cash transfers by linking handouts to social objectives, such as education and employment.
  • Fiscal Prudence: By monitoring expenditures to prevent unsustainable fiscal deficits.

Also Read: Do new schemes ahead of elections amount to ‘voter bribes’? 

Freebies, if well-targeted and fiscally sustainable, can serve as effective redistribution tools. Governments must balance welfare spending and capital investments to ensure inclusive and sustainable development. 

India State of Forest Report 2023

Context: Recently, the Ministry of Environment, Forest and Climate Change has released the ‘India State of Forest Report 2023’ (ISFR 2023). The report shows a marginal gain of 156 sq. km in forest cover, and a sizable increase of 1,289 sq km in tree cover since 2021.

Relevance of the Topic: Prelims: Key facts about the India State of Forest Report (ISFR). 

What is the India State of Forest Report?

  • The India State of Forest Report is a biennial report published by the Forest Survey of India (FSI), an organisation of the Ministry of Environment, Forest & Climate Change.
    • FSI monitors India's forest and tree resources through periodic assessments and presents the findings in its biennial report.
  • The first State of Forest report was brought out in 1987. The current report, ISFR 2023 is 18th in the series. 

Key Terms:

  • Tree cover: It is defined as all tree patches of size less than one hectare occurring outside the recorded forest area. This covers trees in all formations, including scattered trees.
  • Forest area: It denotes the legal status of the land as per the government records, whereas the term 'forest cover' indicates the presence of trees over any land.
  • Forest carbon stock: The amount of carbon that has been sequestered from the atmosphere and is now stored within the forest ecosystem, mainly within living biomass and soil, and to a lesser extent also in dead wood and litter.
  • National Forest Inventory: A systematic approach to generate national level estimates on growing stock, forest area and other forest resources parameters by doing regular inventory in selected sample districts in a cycle of two years.
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Key Findings of ISFR 2023: 

  • The Forest and Tree cover of India is 8,27,357 sq km which is 25.17% of the geographical area of the country, consisting of:
    • 7,15,343 sq km (21.76%) as forest cover.
    • 1,12,014 sq km (3.41%) as tree cover.

For the first time, India’s green cover has exceeded the 25% threshold. Of this, 49.57% (4,10,175 sq km) is classified as dense forests.

  • Increase in tree cover and forest cover:
    • Sharpest growth ( 0.5%) in tree cover (from 2.91% in 2021 to 3.41% in 2023)
    • Marginal growth in forest cover (0.05%) since 2021.
      • Between 2003 and 2013, forest cover increased by 0.61%, from 20.62% to 21.23%. 
      • In the next 10 years, it grew by only 0.53% to 21.76%.
  • Total mangrove cover is 4,992 sq km in the country.
  • Total bamboo bearing area is 1,54,670 sq km. (an increase from 2021).
  • Total carbon stock in the country's forest is estimated to be 7,285.5 million tonnes (an increase of 81.5 million tonnes as compared to 2021).
  • India’s carbon stock has reached 30.43 billion tonnes of CO2 equivalent; which indicates that as compared to the base year of 2005, India has already reached 2.29 billion tonnes of additional carbon sink as against the target of 2.5 to 3.0 billion tonnes by 2030.

Rankings of States & UTs:

  • Top four states showing maximum increase in forest and tree cover: Chhattisgarh (684 sq km) > Uttar Pradesh (559 sq km) > Odisha > Rajasthan.
  • Top three states showing maximum increase in forest cover: Mizoram (242 sq km) > Gujarat > Odisha.
  • Area wise top three states having largest forest and tree cover: Madhya Pradesh (85,724 sq km) > Arunachal Pradesh > Maharashtra.
  • Area wise top three states having largest forest cover: Madhya Pradesh (77,073 sq km) > Arunachal Pradesh > Chhattisgarh.
  • In terms of percentage forest cover with respect to total geographical area: Lakshadweep (91.3 %) > Mizoram (85.3 %) > Andaman & Nicobar Island.
  • 19 states/UTs have above 33% of the geographical area under forest cover.
    • According to the National Forest Policy of 1988, 33% of India’s geographical area is required to be forests.
  • 8 states/UTs: Mizoram, Lakshadweep, A & N Island, Arunachal Pradesh, Nagaland, Meghalaya, Tripura, and Manipur have forest cover above 75%.
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Types of Forests:

  • Forests: Irrespective of land use or ownership, tree patches measuring 1 hectare or more with a minimum canopy cover of 10% are counted as forests in India. 
  • Dense forests: Areas with a canopy density of 40% and above are considered dense forests
  • Open forests: Areas with canopy density of 10-40% are open forests (OF). 
  • Very dense forests: Since 2003, areas with at least 70% canopy density have been classified as very dense forests (VDF).

**Canopy density: It is the percentage of an area that is covered by the crowns of trees. It's also known as forest canopy density (FCD) or crown cover. Canopy density is a key indicator of a forest's health and is used to assess the forest's condition and potential management actions.

Concerning findings of the Report: 

  • ISFR-2023 shows that 3,913 sq km of dense forests (an area larger than Goa) have disappeared in India in just two years since 2021.
  • India has witnessed the complete destruction of 24,651 sq km (more than 6.3%) of its dense forests in the two decades since 2003. 
  • The bulk of this loss has been offset by the rapid transformation of 15,530 sq km of non-forested or scantly forested land to dense or even very dense forests (during 2003-2023).
  • However, this offset has been accomplished through Plantations, because natural forests do not grow this fast.
image 163

Conundrum of Dense forests:

  • Areas under plantations-as-dense-forests are expanding as the disappearance of natural dense forests becomes routine.
  • Large swaths of Open forest (OFs) become Moderately dense forest (MDFs) in the last decade owing to better management. At the same time, plantations are supplementing these natural gains to keep the extent of India’s dense forest cover stable.
  • Though, India’s dense forest cover has grown by 6% during 2003-2023. Experts question such an increase as they were brought through a series of unexplained revisions of data presented in ISFR adding a total of 20,232 sq km of dense forest to the inventory.

Plantations as Natural Forest – Issues and Implications:

  • Plantations usually have trees of the same age (and often the same species), are vulnerable to fire, pests and epidemics.
  • Plantations often act as a barrier to the regeneration of natural forests which are more biodiverse, perform a wider range of ecological functions, and support numerous species.
  • Old natural forests stock a lot more carbon in their frame and in the soil. In 2018, the United Nations Framework Convention on Climate Change (UNFCCC) flagged India’s assumption that plantations reach the carbon stock level of existing forests in just eight years.
  • Plantations are frequently promoted for their rapid growth which can achieve carbon targets faster. However, plantations are often harvested more readily, defeating climate goals in the long term.

India applies for Afanasy-Nikitin Seamount & Carlsberg Ridge to the International Seabed Authority

Context: Recently, India has applied to the International Seabed Authority for license to explore two regions in the Indian Ocean. These regions are (i) Afanasy Nikitin Seamount and (ii) Carlsberg Ridge.

Afanasy-Nikitin Seamount

  • It is a 400 km long and 150 km wide region located southeast of Sri Lanka in the Central Indian basin.
  • This region is located around 3,000 km away from the Indian coast.
  • The region is rich in cobalt, copper, manganese and nickel.
  • There are volcanic seamounts here at depths of 500-2000 m that formed around 80 million years ago when dinosaurs lived.
  • Named after a 15th century Russian merchant, who documented his travels to India.
  • Cobalt rich crusts form when metal ions in the water react with oxygen to form oxides and get deposited on the slopy top portion of the seamount over millions of years.
  • There is significantly high concentration of cobalt in 800-2000 m depth where oxygen levels are significantly low.
  • ANS has been also been claimed by Sri Lanka as its territory under different rules.

Carlsberg Ridge

  • Northwestern limb of Indian Ocean Ridge system.
  • Carlsberg ridge defines tectonic plate boundary where Indian and Somalian plates are moving away from each other.
  • Depth of 1800-3600 m.
  • Seismically active and has recorded major earthquakes.
  • Region has magma flowing out of earth's interior or ocean crust.
  • Seawater falling through cracks of ocean rocks interacts with magma and is spewed out through hydrothermal vents.
  • Plumes have sulphides rich in minerals such as zinc, copper, manganese, cobalt, gold, silver and rare-earth and platinum group elements when then get deposited on the seafloor.
  • Indian researchers have recorded chemical and temperature signatures in this region which could help identify the probable location of vents.

Current marine mining rights with India

India is the only country which has two exploration licenses from the International Seabed Authority for exploration in the Indian Ocean Region. Currently, India is licensed to explore two regions in the Indian Ocean.

  • Central Indian Ocean Basin: India has 75,000 sq. km. exploration license in the Central Indian Ocean Basin Region
  • Rodriguez Triple Junction: Located in southern Indian Ocean where three tectonic plates namely, African Plate, Indo-Australian Plate and Antarctic Plate meet near Mauritius. Also known as Central Indian (Ocean) Triple Junction (CITJ). This triple junction is named after the island of Rodrigues which lies 1,000 km from this.

Need for Deep Sea Mining

  • Import dependence of India on imports for minerals such as cobalt from UK, China and Norway.
  • Plateau of land-based mining: Mining on land has reached a breaking point and is hit by environmental conflicts leading to low-quality production.
  • Importance for energy-transition: Minerals such as cobalt, nickel, copper and manganese can be used to produce renewable energy such as solar and wind power, electric vehicles and EV battery technology. Thus, help reduce greenhouse gas emissions and mitigation of climate change.
  • Strategic importance: Other countries such as China and our neighbouring countries have been showing increasing interest to explore mineral resources in the Indian Ocean Region. This makes India's keen interest in getting marine licenses as strategically important.
image 65

Concerns against Deep Sea Mining

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Deocha Pachami coal mine project

Context: The villagers around the Deocha Pachami proposed coal mining project got an interesting handbill from the Trinamool Congress leadership. The handbill with photograph of Chief Minister Mamata Banerjee says that after the victory in Lok Sabha polls, the Trinamool Congress will ensure a pakka house for the people.

About Deocha Pachami coal mine project

  • Location - Mohamadbazar Community Development Block of Birbhum district, West Bengal, India.
  • It is considered to be the largest coal block in the country
    • Estimated reserves - around 1,198 million tonnes of coal and 1,400 million cubic metres of basalt
    • Geographical area – It spreads over an area of 12.31 sq. km, which is around 3,400 acres.
    • Affected Population - There are around 12 villages in the project area with a population of over 21,000, comprising Scheduled Castes and Scheduled Tribes.

Challenges pertaining to Coal Block

Residents V/S Government

  • Project is facing protests over land acquisition and process involved. About 43% population in the area which falls under the proposed coal mine is inhabited by tribals. Activists insists that under the Forest Right Act,2006 there should be gram sabhas in tribal dominated areas that can only give consent for land acquisition. They allege that the due process has not been followed.
  • In 2022, the State government announced a revised relief & rehabilitation (R&R) package for those willing to give up land where a person having land in the area will get double its market value along with 100% solatium as land cost ( i.e. around ₹13 lakhs per bigha).
  • The State government added that one member of every family will be provided job as junior police constable.

Health Issues

  • Illegal stone quarrying and crushing is being practiced at rampant pace. Doctors in the nearby medical facilities have confirmed the reporting of cases of silicosis in the area.
  • Experts believe that these cases are under-reported due to pressure from owners of quarries and crushers.

SILICOSIS 

  • Silicosis is a long-term lung disease caused by inhaling large amounts of crystalline silica dust, usually over many years.
  • Silica is a substance naturally found in certain types of stone, rock, sand and clay. Working with these materials can create a very fine dust that can be easily inhaled.
  • Once inside the lungs, it causes swelling (inflammation) and gradually leads to areas of hardened and scarred lung tissue (fibrosis). Lung tissue that's scarred in this way doesn't function properly and it becomes a life-threatening disease. 

For further reading

Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (FRA) 
Coal: types, distribution, benefits, challenges, role in industrial location & industrial inertia

China tops list of Critical Mineral suppliers to India

Context: As per the latest government data, India continues to be a net importer in most of the critical minerals and China topped the list of Critical Mineral suppliers to India. 

Relevance of the Topic:Prelims: Facts about Critical Minerals; MMDR Act; Khanij Bidesh India Limited (KABIL); Mineral Security Partnership. 

Major Highlights:

  • In FY 2023-24, India’s net import bill for critical minerals in FY 2023-24 stood at over ₹42,000 crores, with Phosphorus being the highest at ₹15,123 crore.
  • Chinais a dominant supplier of critical minerals to India primarily in categories like ore, waste, scrap and unwrought (raw), metallic or finished product forms.
    • The imports included- cobalt, molybdenum, nickel, potash and glauconite, rare earth elements (REE), tantalum, titanium and tungsten. 
  • Apart from China, India imported critical minerals from other countries. It includes-
    • Gallium and Indium (100% from the US), niobium (Germany and Russia), selenium (Japan), tin (Indonesia), platinum group of elements (UK and UAE), phosphorous (Jordan), vanadium (Germany and Mexico), and zirconium (Indonesia and France).

What are Critical Minerals?

  • Critical minerals are metallic or non-metallic elements that are:
    • Essential for modern technologies, economy and national security, such as electronics, renewable energy, and defense.
    • Subject to disruption of supply chain, often due to limited reserves, geopolitical issues, or complex processing.

Utility of Critical Minerals:

  • Renewable Energy sector: Graphite, Lithium, Cobalt, and Nickel are key components of batteries for electric vehicles (EVs).
  • Defense and Aerospace: Tungsten, molybdenum, and REEs are used in advanced weaponry, fighter jets, satellites, and aircraft.
  • High-Tech Manufacturing: REEs, Indium, and Gallium are used in electronics, semiconductors, and renewable technologies.
  • Agriculture: Fertiliser minerals like potash and phosphate. 
China tops list of Critical Mineral suppliers to India

Global Distribution of Critical Minerals:

  • According to the 2019 USGS Mineral Commodity Summaries report, China is the world’s largest producer of 16 critical minerals. China is responsible for 60% of global production of rare earth elements. 
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Critical Minerals in India:

  • Different countries create their own lists of critical minerals based on their individual needs and strategic considerations. However, such lists mostly include graphite, lithium and cobalt.
  • In 2023, the Ministry of Mines, India classified 30 minerals as critical minerals. 
    • The list comprises 30 minerals including 17 rare earth elements (REEs) and six platinum-group elements (PGE). 
    • Ten minerals on the list are 100% import-dependent, including- Lithium, Cobalt, Nickel, Vanadium, Niobium, Germanium, Rhenium, Beryllium, Tantalum, and Strontium.
  • India relies heavily on imports (mostly from China) for critical minerals. The demand for these minerals may more than double by 2030. 
Critical Minerals in India

Steps taken by the Government of India: 

1. MMDR Amendment Act, 2023:

  • The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) is the primary legislation governing the mining sector in India. 
  • The MMDR Amendment Act, 2023:
    • Empowers Central Government to exclusively auction mining lease and composite licence for 24 critical and strategic minerals (listed in the Part-D of the First Schedule to MMDR Act). 
    • Opened mining of critical minerals to private players which was previously limited to public sector undertakings.
    • To boost exploration, Exploration Licence for reconnaissance and prospecting operations has been introduced for 29 deep-seated minerals.

2. Establishment of KABIL:

  • A Joint Venture Company among NALCO, HCL and MECL named Khanij Bidesh India Limited (KABIL) was formed in August 2019. 
  • KABIL's mandate is to ensure India's supply of critical and strategic minerals:
    • Identifying, exploring, acquiring, developing, mining, and processing strategic minerals. 
    • Focus on procuring battery minerals like Lithium and Cobalt.

3. Global Partnerships:

  • India has joined the Mineral Security Partnership with 13 countries, including the U.S., Australia, and Japan aimed to catalyse public and private investment in critical mineral supply-chains globally.
  • India has signed an agreement with Argentina for lithium exploration through KABIL (Khanij Bidesh India Limited).
  • India-Australia has signed the Critical Mineral Investment Partnership for investment in critical mineral projects and for developing supply chains between these two nations.

New royalty rates for strategic minerals

Context: The Union Cabinet approved royalty rates for lithium, niobium, and Rare Earth Elements (REEs). For lithium and niobium a royalty rate of 3%  each has been fixed, while for Rare Earth Elements (REEs), the rate has been set at 1%.

Strategic / Critical Minerals

  • Critical minerals are those minerals that are essential for economic development and national security. The lack of availability of these minerals or concentration of extraction or processing in a few geographical locations may lead to supply chain vulnerabilities and even disruption of supplies.
  • Critical minerals are the foundation on which modern technology is built. From solar panels to semiconductors, and wind turbines to advanced batteries for storage and transportation, the world needs critical minerals to build these products. Simply put, there is no energy transition without critical minerals, which is why their supply chain resilience has become an increasing priority for major economies.

Critical / Strategic Mineral in India and India’s Dependency on Imports

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Lithium

  • It is a soft, silvery metal. It has the lowest density of all metals. It reacts vigorously with water.
  • The most important use of lithium is in rechargeable batteries for mobile phones, laptops, digital cameras and electric vehicles. Lithium is also used in some non-rechargeable batteries for things like heart pacemakers, toys and clocks.
  • Lithium metal is made into alloys with aluminium and magnesium, improving their strength and making them lighter. A magnesium-lithium alloy is used for armour plating. Aluminium-lithium alloys are used in aircraft, bicycle frames and high-speed trains.
  • Lithium oxide is used in special glasses and glass ceramics. Lithium chloride is one of the most hygroscopic materials known and is used in air conditioning and industrial drying systems (as is lithium bromide). 
  • Lithium stearate is used as an all-purpose and high-temperature lubricant. Lithium carbonate is used in drugs to treat manic depression, although its action on the brain is still not fully understood. Lithium hydride is used as a means of storing hydrogen for use as a fuel.

Niobium

  • A silvery metal that is very resistant to corrosion due to a layer of oxide on its surface.
  • Niobium is used in alloys including stainless steel. It improves the strength of the alloys, particularly at low temperatures. Alloys containing niobium are used in jet engines and rockets, beams and girders for buildings and oil rigs, and oil and gas pipelines.
  • This element also has superconducting properties. It is used in superconducting magnets for particle accelerators, MRI scanners and NMR equipment.
  • Niobium oxide compounds are added to glass to increase the refractive index, which allows corrective glasses to be made with thinner lenses.

Rare Earth Elements

  • The 17 rare earth elements (REE) include the 15 Lanthanides (atomic number 57 — which is Lanthanum — to 71 in the periodic table) plus Scandium (atomic number 21) and Yttrium (39). REEs are classified as light RE elements (LREE) and heavy RE elements (HREE).
  • Some REEs are available in India — such as Lanthanum, Cerium, Neodymium, Praseodymium and Samarium, etc. Others such as Dysprosium, Terbium, and Europium, which are classified as HREEs, are not available in Indian deposits in extractable quantities. Hence, there is a dependence on countries such as China for HREEs, which is one of the leading producers of REEs, with an estimated 70 per cent share of the global production.
  • The rare earth elements are used in Electric vehicles. They are used in motors and not the batteries. These EVs consist of a permanent magnet motor. The magnets used in these motors are made with REEs such as neodymium, terbium, and dysprosium.

Imperative for India to formulate national resourcing strategy for critical minerals

What are critical minerals?

  • A critical mineral is a metallic or non-metallic element that has two characteristics: It is essential for the functioning of our modern technologies, economies or national security and. There is a risk that its supply chains could be disrupted.
  • But these supply risks exist due to rare availability, growing demand and complex processing value chain. Many times the complex supply chain can be disrupted by hostile regimes, or due to politically unstable regions.
  • Based on their individual needs and strategic considerations, different countries create their own lists.
  • However, such lists mostly include graphite, lithium and cobalt.

Utility:

  • These minerals are now used everywhere from making mobile phones, computers, batteries, electric vehicles and green technologies like solar panels and wind turbines.
  • Aerospace, communications and defence industries also rely on several such minerals as they are used in manufacturing fighter jets, drones, radio sets and other critical equipment.

Global distribution:

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  • According to the 2019 USGS Mineral Commodity Summaries report, China is the world’s largest producer of 16 critical minerals.
  • China, according to a report on the role of critical minerals by the International Energy Agency, is “responsible for some 70% and 60% of global production of cobalt and rare earth elements, respectively, in 2019. 
  • The level of concentration is even higher for processing operations, where China has a strong presence across the board. China’s share of refining is around 35% for nickel, 50-70% for lithium and cobalt, and nearly 90% for rare earth elements.”
  • It also controls cobalt mines in the Democratic Republic of Congo, from where 70% of this mineral is sourced.

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Indian steps in this regard:

  • India has set up KABIL or the Khanij Bidesh India Limited, a joint venture of three public sector companies, to “ensure a consistent supply of critical and strategic minerals to the Indian domestic market”
  • Indo- Australia partnership

What are rare Earth Elements?

  • Rare Earth Elements or Rare Earth Metals are a set of 17 chemical elements in the periodic table — the 15 lanthanides, plus scandium and yttrium, which tend to occur in the same ore deposits as the lanthanides, and have similar chemical properties.
  • The 17 Rare Earths are cerium (Ce), dysprosium (Dy), erbium (Er), europium (Eu), gadolinium (Gd), holmium (Ho), lanthanum (La), lutetium (Lu), neodymium (Nd), praseodymium (Pr), promethium (Pm), samarium (Sm), scandium (Sc), terbium (Tb), thulium (Tm), ytterbium (Yb), and yttrium (Y).
  • Despite their classification, most of these elements are not really “rare”. One of the Rare Earths, promethium, is radioactive.Although originally thought to be rare, many of the minerals are actually common in the Earth’s crust.  However, due to the difficulties in extracting the metal from the ore, rare is a fitting term. These elements rarely exist in pure form; they are usually found within other minerals, making them costly to mine.
  • These elements are important in technologies of consumer electronics, computers and networks, communications, clean energy, advanced transportation, healthcare, environmental mitigation, and national defence, among others.
  • Scandium is used in televisions and fluorescent lamps, and yttrium is used in drugs to treat rheumatoid arthritis and cancer.
  • Rare Earth elements are used in space shuttle components, jet engine turbines, and drones. Cerium, the most abundant Rare Earth element, is essential to NASA’s Space Shuttle Programme.

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  • Examining the available data, it is found that China consumes around 104,000 metric tons (MT) of rare earth, which is 67 per cent of the total consumption worldwide.  
  • China is followed by Japan, the US, and the EU with 16 per cent, 13 per cent and four per cent respectively.
  • Data further suggest China controls about 90 percent of global production of rare earth metal while it possesses only 36 percent of the global reserve of this rare metal

India has the 5th largest reservoir and recognised the importance of rare earth back in 1950 and started extracting rare minerals through the establishment of the Indian Rare Earth Limited. India could not, however, make progress in this sector due to several reasons.

Why did India fail?

  • Lack of separate guiding policy to expand the production of rare earth.
  • The Indian rare earth industry keeps on operating on the downstream production process only. 
  • Associated risks
  • High level of technology is required.  
  • failure to promote entrepreneurship in this sector
  • Foreign investors have always kept a distance from this sector. This is mainly because the sector was reserved for the public sector.
  • Stiff competition from China-> Easy to import at much lower prices.

In 2016, a study, supported by the Indian government’s Department of Science and Technology (DST), provides a framework for India to assess the impact of critical minerals including rare earth in the manufacturing sector, considering both economic importance and associated supply risks. The study argues the development of this mineral will also give a fillip to India’s ambitious Make in India plan by enhancing the volume of rare earth production.

Oil reserves in salt caverns: The potential in India

Context: Government-owned engineering consultancy firm Engineers India (EIL) is studying the prospects and feasibility of developing salt cavern-based strategic oil reserves in Rajasthan, in line with the government’s objective of increasing the country’s strategic oil storage capacity.

What are strategic petroleum reserves (SPR)?

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  • Strategic petroleum reserves (SPRs) are stockpiles of crude oil maintained by countries for release in the event of a supply disruption. 
  • For example India currently has an SPR capacity of 5.33 million tonnes, or around 39 million barrels of crude, that can meet around 9.5 days of demand.
  • India’s strategic oil reserves come under the Petroleum Ministry’s special purpose vehicle Indian Strategic Petroleum Reserve (ISPRL).

Locations in India:

  • The country’s three existing strategic oil storage facilities — at Mangaluru and Padur in Karnataka, and Visakhapatnam in Andhra Pradesh — are made up of excavated rock caverns.
  • The country is in the process of expanding its SPR capacity by a cumulative 6.5 million tonnes at two locations — Chandikhol in Odisha (4 million tonnes) and Padur (2.5 million tonnes).
  • So far India stores crude oil in the rock based caverns and not in salt based caverns. 

What are rock based caverns?

  • Rock caverns are mined underground cavities in solid rock deep underground, using conventional mining techniques, and consist of a system of shafts or ramps and drifts, forming cavities, e.g., in granite.

How salt based caverns are different from rock based caverns?

  • Unlike underground rock caverns, which are developed through excavation, salt caverns are developed by the process of solution mining, which involves pumping water into geological formations with large salt deposits to dissolve the salt. 
  • After the brine (water with dissolved salt) is pumped out of the formation, the space can be used to store crude oil.
    • Advantages of salt caverns:
      • The process is simpler, faster, and less cost-intensive than developing excavated rock caverns.
      • Salt cavern-based oil storage facilities are also naturally well-sealed, and engineered for rapid injection and extraction of oil. This makes them a more attractive option than storing oil in other geological formations. 
      • The salt that lines the inside of these caverns has extremely low oil absorbency, which creates a natural impermeable barrier against liquid and gaseous hydrocarbons, making the caverns apt for storage.
      • Also, unlike rock caverns, salt cavern-based storages can be created and operated almost entirely from the surface.
      • Salt caverns are also used to store liquid fuels and natural gas in various parts of the world. They are also considered suitable for storing compressed air and hydrogen.

Strategic petroleum reserves programme: story so far

  • India’s strategic oil reserves are part of the effort to build sufficient emergency stockpiles.
  • Crude oil from the reserves are to be released by an empowered committee set up by the government, in the event of supply disruptions due to a natural calamity or an unforeseen global event leading to an abnormal increase in prices.
  • The International Energy Agency (IEA), a Paris-based autonomous intergovernmental organisation in which India is an ‘Association’ country, recommends that all countries should hold an emergency oil stockpile sufficient to provide 90 days of import protection.
  • In India, apart from the SPR the oil marketing companies (OMCs) have storage facilities for crude oil and petroleum products for 64.5 days — which means there is sufficient storage to meet around 74 days of the country’s petroleum demand.
  • India has also decided to commercialise its strategic petroleum reserves, as part of which the Abu Dhabi National Oil Company (ADNOC) stored about 0.8 million tonnes of crude oil in the Mangaluru strategic reserve. 
  • In the second phase of the programme, the government wants to develop strategic reserves through public-private partnerships so as to reduce government spending and exploit the commercial potential of the reserves.

IBM flags illegal transport of manganese ore in Odisha

Context: The Indian Bureau of Mines (IBM) has recently flagged the issue of illegal transportation of manganese ore leading to massive loss of revenue in Odisha.

About the news

  • In November 2022, the Ministry of Steel and Mines had alerted the Odisha Government about the under-reporting of grades of chromite and manganese ores.  
  • It had recommended the State Government come up with Standard Operating Procedure for preventing loss of revenue due to declaration of higher-grade ores as lower grade.

What is under–reporting?

  • Under-reporting of grades of minerals is a serious issue and causes loss to State exchequer by way of lower collection of various payments such as auction premium, royalty, district mineral foundation funds and national mineral foundation trust. 

Responsibility to frame laws:

  • As per Section 23C of MMDR Act, State Governments are empowered to make rules for preventing illegal mining, transportation and storage of minerals. 
  • It is the responsibility of the State Governments to establish the correct grade of mineral being dispatched and change action premium, royalty and other payments on the correct grade of mineral.
  • As per ule 45(7)(b) and (c) of the Mineral Conservation and Development Rules (MCDR), 2017, the state government can suspend licence / permit in case it is found that the person or the company engaged in trading or storage or end-use submits incomplete or false information in monthly or annual returns – the trading companies have managed to go with impunity without submitting any timely returns.

Odisha's Mineral Resources

  • Odisha is a mineral-rich State having 96.12% of the country’s chrome ore, 51.15% bauxite reserve of India, 33.61% of hematite iron ore and 43.64% of manganese.
  • Manganese ore containing 25% Mn content and below is considered to be low grade and are generally priced much lower. 
  • Auctions are finalised and mines are leased out on the basis of highest bid premium per tonne of ore offered by the private bidders. 
  • The price of ore with less than 25% Manganese content is ₹3,228 while the same for ore containing Manganese content over 46 % is ₹20,407. 
  • If the Manganese ore is low grade, the leaseholders pay lesser royalty to the National Mineral Exploration Trust and District Mineral Fund.

About Manganese:

  • It is a hard, gray-white metal, which is very brittle, and fairly reactive. It is naturally found in a variety of minerals, but never on its own.
  • It  is one of the most common elements in Earth's crust and is widely distributed across the planet's surface. 
  • It is mainly associated with Dharwar system.
  • It is found in the Earth's crust at a concentration of 1000 ppm, making it the 12th most abundant element.
  • It  is an important raw material for smelting of iron ore and also used for manufacturing ferro alloys.
  • It is vital to human and animal life in metabolic functions. 
  • Many alloys containing manganese are used in steel production, glass making, and even to make the aluminium in soda cans thinner and stronger.
  • Odisha is the leading producer of Manganese. Major mines in Odisha are located in the central part of the iron ore belt of India, particularly in Bonai, Kendujhar, Sundergarh, Gangpur, Koraput, Kalahandi and Bolangir.

NALCO-BARC Releases India’s 1st Bauxite CRM

Context: National Aluminium Company Limited (NALCO) has successfully developed a Bauxite Certified Reference Material (CRM) naming as BARC B1201 in joint collaboration with Bhabha Atomic Research Centre (BARC).

About BARC B1201

  • It is a bauxite-certified reference material (CRM).
  • It is the first-of-its-kind CRM in India and the fifth in the world.

What is a Certified Reference Material (CRM)?

  • CRMs are blocks of metal that come with certificates indicating the concentration of their various constituent elements along with their uncertainty levels. 
  • Testing laboratories use CRMs to calibrate measuring instruments, evaluate test procedures and for quality control purposes.

About National Aluminium Company Limited (NALCO)

  • It is a Navratna Central Public Sector Enterprises CPSE, under Ministry of Mines, Govt. of India.
  • It is country’s leading manufacturer and exporter of alumina and aluminium.

What is Bauxite?

  • It is a sedimentary rock with a relatively high aluminium content. 
  • Almost all of the aluminum that has ever been produced has been extracted from bauxite.
  • It does not have a specific composition. It is a mixture of hydrous aluminium oxides, aluminium hydroxides, clay minerals, and insoluble materials such as quartz, hematite, magnetite, siderite, and goethite. 

How bauxite is formed?

  • Bauxite is formed by the thorough weathering of many different rocks. Bauxite may grade into laterite or clay, laterally or vertically.

Bauxite Used for Aluminum Production

  • The first step is to crush the bauxite and purify it using the Bayer Process.
  • Bayer Process:
    • In this the bauxite is washed in a hot solution of sodium hydroxide, which leaches aluminum from the bauxite. 
    • The aluminum is precipitated out of solution in the form of aluminum hydroxide, Al(OH)3.
    • The aluminum hydroxide is then calcined to form alumina, Al2O3.
  • Aluminum is smelted from the alumina using the Hall-Heroult Process
  • In the Hall-Heroult Process, the alumina is dissolved in a molten bath of cryolite (Na3AlF6).
  • Molten aluminum is removed from the solution by electrolysis.  This process uses an enormous amount of electricity.

Production and reserves

  • In India, Odisha alone accounts for 53% of the country’s resources of bauxite, and it is also found in the states of Andhra Pradesh, Jharkhand, Madhya Pradesh and Maharashtra.
  • Australia is the largest producer of bauxite, followed by Guinea and China.

Lithium Reserves in India

About 5.9 Million Tonnes of Lithium Reserves have been discovered in the Union Territory of Jammu and Kashmir (First in India). It is discovered in the Salal-Haimana area of Reasi District.    

Lithium Distribution:

  • Although lithium is widely distributed on Earth, it does not naturally occur in elemental form due to its high reactivity.
  • According to the US Geological Survey (USGS), there are around 80 million tonnes of identified reserves globally as of 2019.
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  • Argentina, Bolivia, and Chile make up the “lithium triangle.” The three countries, along with Peru, contain about 67% of proven lithium reserves and produce about half of the global supply, according to the U.S. Geological Survey.
  • The Salar de Uyuni salt flat in Bolivia is the world's single-largest lithium resource, and is visible from space

Physical and Chemical properties of Lithium (atomic number 3)

  • It belongs to an alkali metal group, lightest of the solid elements (can float on water). It is soft, white and lustrous.
  • It has the lowest density of any metal.
  • It has high specific heat which is the calorific capacity. Other properties are its enormous temperature interval in the liquid state, high thermal conductivity.
  • It is also found in brine deposits and as salts in mineral springs. 
  • It constitutes about 0.002 percent of Earth’s crust.
  • It is produced by electrolysis of a fused mixture of lithium and potassium chlorides. 

Uses and application of Lithium:

  • Among minerals, lithium offers one of the highest energy-to-weight performance—a lithium-ion battery’s energy density is 260-270 Wh/kg, compared to a lead-acid battery’s 50-100 Wh/kg.
  • Used as a scavenger (remover of impurities) in the refining of such metals as iron, nickel, copper, and zinc and their alloys.
  • Used as an initiator of polymerization in the production of synthetic rubber.
  • It is also extensively used in the production of other organic chemicals, especially pharmaceuticals
  • Lightweight lithium-magnesium alloys and tough lithium-aluminium alloys, harder than aluminium alone, have structural applications in the aerospace and other industries.
  • Most extensive use of Lithium is in rechargeable batteries (cell phones, laptops, e-mobility etc).

Note:  lithium-ion batteries are rechargeable while lithium batteries are single-use.

Benefits of such discovery to India;

  • Decrease imports: As of now, India is importing all its lithium requirements (95% coming from Hong Kong > China > Indonesia > Singapore > Korea).
  • Save foreign exchange: In the near future imports would fall further (saving foreign exchange).In last three years, imports of Lithium and Lithium ion has reduced by 8-10%.
  • Employment: Mining and exploration would further enhance the job creation in the reserve areas.
  • Industrial hub: It would developed battery industry (a sunrise sector) in India.
  • Exports: With development of battery industry, India could enter the global supply of lithium ion batteries (export promotion). It would help India in gaining faster momentum in the electronics and digital devices market globally.
  • Reduce production cost: Replacing expensive imports of lithium with domestic cheaper alternatives would reduce the cost of production in battery industry and make it more competitive.

Potential of Lithium in India:

  • Expected reserves in: Union Territory of Jammu and Kashmir, Mandya and Yadgir districts of Karnataka, Bihar, Chhattisgarh, Himachal Pradesh, Jharkhand, Madhya Pradesh, Arunachal Pradesh, Meghalaya and Rajasthan.
  • India has emerged as one of the largest producer, consumer and exporter of mobiles phones (second largest producer in 2021). Lithium ion batteries are the backbone of mobile phone industries. Domestic lithium would push India further ahead in this race.
  • Government in 2021 approved the Production Linked Incentive (PLI) Scheme for manufacturing of Advance Chemistry Cell (ACC) in the country. The scheme envisages establishing a competitive ACC battery manufacturing set-up in the country (50 Giga Watt hour-GWh). This PLI scheme will facilitate reduction of import dependence of ACC battery.
  • Vikram Sarabhai Space Centre (VSSC) has decided to transfer its own in-house lithium ion (Li ion) cell technology to successful Indian industries and start-ups.
  • The government has allowed 100 percent foreign direct investment (FDI) in electric mobility and encouraged domestic manufacturing of battery packs. Due to this measure, LiB technology has overtaken lead-acid batteries in mobile and stationary applications.

Why is India lagging behind in Lithium?

  • Natural availability of Lithium in India is the least (almost insignificant)
  • Research and exploration in the lithium is at nascent stage. 
  • India has very limited participation in the exploration of lithium. Most of the current exploration of Lithium is conducted as per the Geological survey of India. 
  • Till 2021, i.e. rolling out of production linked incentive, there was no dedicated policy for lithium battery development in India.

Way-forward:

  • Creation of additional demand in the automobile sector.
  • Opening the exploration and mining for the private sector under regulatory framework.
  • Ease of exports of Lithium-ion batteries.