Editorial #1 Tapping into Kazakhstan’s rare earths potential
Tapping into Kazakhstan’s Rare Earth Potential: A Strategic Imperative for India
Context
India’s heavy reliance on China for rare earth imports and the shifting geopolitical landscape, particularly after the U.S. regime change, underscore the need for diversification in securing critical minerals.
Introduction
The global transition toward clean energy technologies has significantly heightened the demand for rare earth elements (REEs). India, the world’s third-largest carbon emitter, is scaling up its renewable energy ambitions, making rare earths essential for sectors like electronics, defense, and clean energy. Although India ranks fifth globally in rare earth reserves, it remains dependent on China for over 60% of its imports due to a lack of advanced extraction and processing capabilities. Amid increasing supply chain vulnerabilities and security concerns tied to China’s dominance, India is exploring alternative sources, including partnerships with the U.S., Latin America, and Africa. Kazakhstan, a close ally with abundant rare earth resources, emerges as a viable and strategically significant partner.
China’s Monopoly and Associated Risks
China holds a commanding position in the global rare earths market, possessing over one-third of the world’s reserves and accounting for 70% of global production. This dominance extends to India, which relies heavily on Chinese imports to meet domestic demand.
- Supply Chain Risks: China’s history of leveraging rare earth supplies for geopolitical advantages has raised alarms.
- Disruptions in critical mineral supplies, including antimony, underline the fragility of global supply chains.
- China’s ban on rare earth extraction technologies in 2023 further solidifies its monopoly.
- Geopolitical Ramifications: The Ukraine conflict and reduced Russian ore exports have exposed the risks of concentrated supply chains, prompting nations, including India, to seek diversified sources.
Kazakhstan: A Strategic Partner
Kazakhstan, with its rich rare earth reserves and growing technological capabilities, offers an alternative to China’s dominance.
- Resource Wealth: Kazakhstan holds 15 of the 17 known rare earth elements and hosts globally significant deposits of strategic minerals like tantalum, niobium, and scandium.
- Growing Expertise: The country has advanced extraction agreements with Japan and Germany and is expanding partnerships with the U.S., South Korea, and the EU.
- Strategic Focus: President Kassym-Jomart Tokayev’s vision of rare earths as Kazakhstan’s “new oil” reflects the country’s ambition to become a major player in this sector.
India-Kazakhstan Synergy
Kazakhstan’s rare earth potential aligns with India’s renewable energy and resource security goals.
- Technological Potential: Kazakhstan’s investments in advanced metallurgical plants and technologies complement India’s plans to increase mining output by 400% in the coming decade.
- Renewable Energy Targets: India’s commitment to achieving 500 GW of renewable energy by 2030 underscores the importance of rare earths like dysprosium.
- Collaborative Frameworks: Initiatives like the ‘India-Central Asia Rare Earths Forum,’ proposed during the second India-Central Asia Summit, aim to strengthen bilateral cooperation through joint ventures, skill development, and technology sharing.
Challenges and Way Forward
Despite the promise, several hurdles remain:
- Technological Gaps: Both India and Kazakhstan lack cutting-edge extraction and processing technologies.
- Connectivity Issues: India’s direct trade routes with Kazakhstan face logistical challenges.
To address these issues, India must:
- Facilitate joint ventures to develop rare earth processing capabilities.
- Invest in connectivity projects like the International North-South Transport Corridor.
- Promote private-sector participation through favorable policies and incentives.
Conclusion
India’s collaboration with Kazakhstan in the rare earth sector could enhance resource security, reduce dependence on China, and accelerate the transition to clean energy. By fostering bilateral partnerships and leveraging regional frameworks, India can not only secure critical minerals but also strengthen its geopolitical and economic ties with Central Asia. The proposed India-Central Asia Rare Earths Forum provides a timely platform to realize this vision and address shared challenges effectively.
Editorial 2: Pushed through
Pushed Through: Evaluating the Ken-Betwa River Interlinking Project
Context
Mega projects must be evaluated critically to ensure they are not driven solely by political expediency, especially when ecological and socio-economic considerations are at stake.
Introduction
The Ken-Betwa River Interlinking Project, inaugurated by Prime Minister Narendra Modi, aims to address water shortages in the Betwa basin by transferring water from the supposedly surplus Ken basin. With an estimated budget of ₹44,605 crore, the project seeks to support agriculture and settlements in the drought-prone Bundelkhand region. However, the project has raised significant concerns over its environmental impact, legal compliance, and sustainability, sparking debates about its long-term viability.
Key Features of the Project
- Scope and Budget: The project involves constructing the Daudhan Dam within the Panna Tiger Reserve to redirect water from the Ken basin to the Betwa basin for agricultural and domestic use.
- Government’s Claims: The project is justified on the grounds that the Ken basin is water-surplus while the Betwa basin faces acute water scarcity.
- Controversy: Critics argue that the project prioritizes political objectives over ecological and economic considerations.
Approval Amid Controversy
- Hasty Clearance: Despite pending deliberations in the National Green Tribunal (NGT) on its environmental clearance, the Union Cabinet approved the project in 2021.
- Bypassing Expert Opinions: Concerns raised by members of a Supreme Court-appointed committee and environmental experts were overlooked.
- Lack of Transparency: The government has withheld hydrological data, citing national security concerns linked to the Ganga basin.
Environmental and Legal Concerns
- Damage to Ecologically Sensitive Areas:
- The Daudhan Dam will lead to the destruction of lakhs of trees within the Panna Tiger Reserve, threatening its fragile ecosystem.
- The construction violates stringent environmental laws protecting such areas.
- Long-Term Sustainability:
- Studies indicate that both the Ken and Betwa basins experience concurrent floods and droughts, raising doubts about the project’s effectiveness.
- Changing rainfall and sedimentation patterns in the subcontinent could exacerbate water scarcity in the future.
Questioning Government Claims
- Water Surplus and Deficit: Experts argue that the Betwa basin’s water deficit stems from its extensive irrigated cropland, not natural scarcity. Any increase in water demand in the Ken basin could result in shortages for both regions.
- Political Motivation: The project’s timing, coinciding with elections in Uttar Pradesh, suggests an attempt to gain political mileage rather than address genuine water management concerns.
The Way Forward
The Ken-Betwa project, while promising agricultural and water benefits, appears to be driven by short-term political considerations rather than sound ecological judgment.
- Reassess Priorities: The government must address expert concerns and ensure adherence to environmental laws.
- Sustainable Alternatives: Maintaining environmental flows, improving water management practices, and leveraging affordable solutions for replenishing the Betwa basin should be prioritized.
- Transparent Decision-Making: Sharing hydrological data and fostering public debate can enhance credibility and accountability.
Conclusion
The Ken-Betwa River Interlinking Project embodies the tension between development and environmental preservation. While it promises to alleviate water scarcity and support agriculture, its ecological impact and sustainability remain questionable. The government must strike a balance between developmental aspirations and ecological prudence, ensuring that projects like these do not compromise the future of fragile ecosystems and local communities. Addressing expert feedback and incorporating sustainable practices will be crucial to achieving long-term success and equity.
