By Qamar Bashir
In 2022, the global trade in strategic minerals surged to an estimated $405 billion, marking a significant upsurge from $285 billion in 2010. China led the export chart with $125 billion, followed by Australia, Russia, Canada, and Brazil. As for imports, China remained the frontrunner, followed by the United States, Japan, South Korea, and Germany. These minerals play a pivotal role across industries, including electronics, defense, and aerospace. Forecasts indicate an ongoing surge in demand, driven by advancements in electric vehicles and renewable energy technologies.
The race for control over strategic and rare earth elements has become an intense
global pursuit, marked by nations leveraging military, economic, and soft power to
secure these invaluable resources. A marking shift in global dynamics was also
observed during the recent summit between Chinese President Xi and US President
Joe Biden. Unlike the traditional discussions surrounding arms trade or economic
rivalry, the focal point centered was semiconductors. These components, highly
prized in today's technology landscape, have overshadowed the value of precious
commodities like gold and silver. In 2020, while the total global gold demand
reached $241 billion, it paled in comparison to the $405 billion strategic mineral
trade. Remarkably, the semiconductor trade eclipsed both, signifying the escalating
importance of these components in the global economy. Semiconductors surpassed
the value of gold trade to a record-breaking $556 billion, exhibiting a remarkable
26.9% surge from the preceding year.
Semiconductors represent the bedrock of modern electronics, distinguished by
their unique electrical characteristics. Their ability to conduct and resist electricity,
akin to both metals and insulators, is pivotal for the functioning of transistors, the
fundamental units of contemporary electronics. These semiconductors pervade
virtually every electronic device, encompassing smartphones, computers, tablets,
cars, and an array of industrial applications, spanning robotics, automation, and
medical equipment.
Their significance extends beyond functionality to the very structure of electronics.
Over recent decades, semiconductors have driven the remarkable miniaturization
of electronic devices, yielding smaller, faster, and more potent electronics. This
evolution has underpinned groundbreaking advancements in various fields,
propelling emerging technologies like artificial intelligence, the Internet of Things
(IoT), and autonomous vehicles. As these innovations continue to burgeon, the
indispensability of semiconductors amplifies.
Economically, the semiconductor industry stands as a colossal force, galvanizing
global growth and innovation. The industry's contribution is staggering, generating
trillions of dollars in economic activity annually, further solidifying its pivotal role
in the global economy. Notably, beyond economic realms, semiconductors play a
crucial role in safeguarding national security, constituting vital components in a
spectrum of applications including communications, radar systems, and guidance
systems.
Rare minerals serve as crucial components in semiconductor production, catering
to an array of semiconductor applications. Elements like Indium, Gallium,
Germanium, Selenium, Tellurium, Antimony, Arsenic, Bismuth, Hafnium,
Scandium, and Yttrium play pivotal roles in diverse semiconductor functionalities.
The question arises: does Pakistan possess strategic minerals like rare earth
elements and radioactive deposits? The resounding answer is yes. Pakistan
showcases a diverse array of seventeen rare earth mineral deposits, featuring
Scandium, Erbium, Europium, Neodymium, and more, according to the Geological
Survey of Pakistan (GSP).
These deposits, found in regions such as Koga, Swat, and Malakand Agency,
present vast potential for applications spanning oil refineries, rare-earth magnets,
nuclear batteries, and lasers. Furthermore, the GSP's discoveries of Pakistan's
inaugural radioactive minerals in places like Baghal Chur in Dera Ghazi Khan and
Reko Diq in Balochistan, alongside strategic minerals in the Sonmiani area,
underline the nation's rich resource wealth.
The significance of these rare earth minerals and radioactive elements transcends
mere monetary value. Their pivotal roles in nuclear energy, healthcare, and
technological innovation remain paramount. Their trade serves as a cornerstone in
ensuring energy security, driving healthcare advancements, and propelling cutting-
edge technologies that shape modern infrastructure and sustainable energy
solutions. While estimated to possess approximately 2% of the world's REE
reserves, Pakistan currently falls short of major producers like China, Australia,
and Russia.
The options rest with Pakistan to choose one or all of the top three countries which
lead the world in terms of exploration of strategic minerals, rare earth elements and
radioactive elements and possess the technology and know how to use them in
making semiconductors and other high tech products.
China is the world's leading producer of rare earth elements, accounting for over
80% of global production. The country is also a major producer of strategic
minerals such as chromite, tungsten, and molybdenum. China has a well-developed
mining industry and is investing heavily in the development of new technologies
for extracting and processing rare earth elements.
Australia is the world's second-largest producer of rare earth elements. The country
is also a major producer of strategic minerals and possesses a strong mining
industry and is a reliable supplier of rare earth elements and other strategic
minerals to the global market.
Russia is the world's third-largest producer of rare earth elements. The country is
also a major producer of strategic minerals and has a strong infrastructure for
supporting the mining industry.
These three countries are all major players in the global market and are investing
heavily in the development of new technologies for extracting and processing these
minerals playing an important role in the development of new high-tech products.
While Pakistan should explore its options with Russia and Australia, its strategic
alliance with China presents a substantial opportunity to leverage Chinese
expertise and resources in the exploration, production, and utilization of rare earth
elements (REEs), strategic minerals, and radioactive elements.
Collaborating with China will allow Pakistan to benefit from its advanced
exploration and development techniques. Joint efforts in identifying, mapping, and
extracting these resources from Pakistan's abundant reserves can optimize the
utilization of these minerals for technological and industrial applications.
China's advanced production techniques and experience can be shared with
Pakistan, enhancing local capabilities in refining, processing, and manufacturing
products utilizing these elements. This knowledge transfer can stimulate local
industries, fostering innovation and technological progress.
Pakistan can harness China's expertise in utilizing these elements in manufacturing
high-tech products. This collaboration can aid in creating a diverse range of
products, from electronics to clean energy technologies, thus boosting Pakistan's
technological capabilities and industrial diversification.
Leveraging Chinese investments and infrastructure development initiatives can
facilitate the establishment of specialized facilities for processing and utilizing
these elements. This not only supports local industry but also encourages foreign
investments drawn by the potential of these resources.
Engaging in joint research and development initiatives with Chinese institutions
can drive innovation and knowledge exchange. This collaboration can lead to the
creation of new technologies, processes, and applications, fostering a culture of
innovation and advancement in Pakistan.
Whereas seeking collaboration, joint ventures and other such modes of cooperation
with other countries is of paramount importance but at the sametime Pakistan
should develop its own capacity in exploring and utilizing rare earth metals,
strategic minerals, and radioactive elements.
This will however, demand a multifaceted strategic approach. Firstly, substantial
investment in research and development, particularly in cutting-edge exploration
technologies, is crucial. This includes establishing dedicated institutions for
mineral studies and fostering specialized educational programs focused on geology
and materials science. These initiatives aim to equip the country with a skilled
workforce proficient in the intricacies of mineral exploration and utilization, laying
the groundwork for future advancements.
Collaboration forms another critical facet, advocating partnerships with
international institutions to facilitate knowledge exchange and gain insights into
global best practices. Concurrently, forging public-private partnerships within the
country accelerates comprehensive exploration projects and fast-tracks the
development of these resources. Such collaborations pool resources, expertise, and
funding, amplifying the potential for accelerated growth and utilization of these
invaluable resources.
The establishment of a robust regulatory framework remains pivotal, ensuring
responsible utilization while addressing environmental concerns. Transparent and
stable regulations attract investments and maintain sustainable practices, ensuring a
balance between resource exploitation and environmental preservation. Bolstering
infrastructure, including laboratories and refining facilities, further supports
efficient resource utilization, making Pakistan an attractive hub for investment and
technological advancement in this sector.
Moreover, fostering technology transfer agreements, advocating eco-friendly
practices, and raising public awareness solidifies Pakistan's position on the global
stage. These collective efforts not only fortify industrial capabilities but also
position the nation at the forefront of economic growth, technological innovation,
and sustainable development.
