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Title of topic: Change in consumption pattern of minerals in India

By Professor Nivedita Pathak


Module 01

Minerals are the base of all industries.

Even some agricultural-based products like paper and textile require
minerals or mineral-based chemicals at various stages of production.


The machines required for their production are made essentially out of iron
ore and other minerals. Thus, minerals and mineral deposits are at the
foundation of industrial development in any country.


http://www.youtube.com/watch?v=FMhfpOS5RbM
In India, overall material consumption has remained low. However, metal
ores and industrial minerals use grew by 8.6 per cent each year over the
period from 1998 to 2008, which indicates that India is entering a rapid
acceleration phase in its transition to an industrialized economy.
http://www.youtube.com/watch?v=heXW_aZCZUM
http://www.youtube.com/watch?v=AmGs1_PfOIw minerals in india

In this module, the following topics will be covered:
(Slide for below)
1) Scenario of mineral consumption in India
2) Changing consumption pattern in India
3) Current and future dimensions of Indias resource requirements
4) Solutions to the crisis involving mineral supply
Module 2
Scenario of mineral consumption in India
Consumption of materials can be measured at a number of points; in the
production process including at extraction, at beneficiation, at production of
a refined product, at the point of processing to basic shapes (semi-
manufacture), at manufacture of final goods, or at the point of sale to
consumers. The most common point of measurement is at the point of
production of refined product. When measured at this point consumption is
referred to industrial consumption or apparent consumption. Industrial
consumption measures the material consumed (or produced) by a
country's industrial sector. If a country either exports or imports large
amounts of final goods, industrial consumption may differ from final
consumption by consumers.
http://www.youtube.com/watch?v=70cSJhphVMI

Mineral Production in India

http://www.youtube.com/watch?v=t2HHLCOsmuA
India is an important consumer of commodities, ranking fifth in overall
energy use and third largest consumer of coal.


It ranks 7th or 8th for aluminum, tin and zinc consumption, as well as global
steel production, and 11th for copper.



In agriculture it has a much greater presence, being the largest consumer
of sugar and tea, and the second largest consumer of wheat, rice, palm oil
and cotton. India has also sharply increased its fats and oils consumption,
indicating some shift in food preference.

India consumes less than 3 percent of the worlds metals, and consumes
little more than 10 percent that of China despite its GDP being 1/3 the size
of Chinas.

However, its growth of metal consumption has been relatively high,
increasing at an average rate of 7 percent since 1992. It ranks within the
top 10 consuming countries for tin (7th) and aluminum and zinc (8th), and
is the 7th largest steel producer but produces less than 4 percent of the
worlds steel and little more than 10 percent that of China.
Trends in Value of Mineral Production, Exports & Imports

India produces essentially all of its iron ore needs, and exports about half of
its iron ore output.



India is the worlds fifth largest energy consumer, but uses less than 4
percent of the worlds primary energy.

Energy demand has grown at a rate of 4.6 percent, but has remained
moderate in recent years.



India uses coal for more than half of its energy needs, and is the worlds
third largest coal consuming country. However it uses only 7 percent of
global output. Coal demand grew an average 4.1 percent between 1990
and 2003, while electricity generation grew at a rate of 6.2 percent.

India is the sixth largest oil consuming country, but consumes less than 4
percent of the worlds oil.

Indias oil demand grew at an average rate of just over 5 percent over the
1990-2005 period, also below the pace of economic growth.

India consumes a sizeable share of many agriculture commodities because
of its large population. It is the largest consumer of tea and sugar, and the
second largest consumer of wheat, rice, cotton and palm oil. Growth rates
in most of the agriculture commodities have been fairly moderate. Only
palm oil and to a lesser degree, soybean oil, have experienced more rapid
growth, and are also likely due to changing eating patterns and rising
incomes.

India is a large net importer of copper, lead, nickel and tin. India is a net
exporter of zinc and iron ore, and therefore benefits from the higher prices
of these commodities.
In energy, India imports a larger share of its oil to satisfy its energy needs,
but its volume is considerably smaller.

It is also a modest net importer of coal. That said, India is important as an
incremental importer of both fuels, but was not a major factor in the recent
rise in these prices.

In agriculture, India is a large importer of soy oil and palm oil, and a
moderate importer of wheat. For fats and oils, India could have a major
impact on prices because of the change in food preferences and rapid rise
of imports. For a number of other commodities, India is a net exporter, e.g.,
sugar, rice, maize, tea and coffee.


India has been a much smaller consumer of main metals and did not figure
significantly in the recent rapid rise of metals prices. Indias growth of total
main metals increased from 4.5 percent to 7.0 percent over the two periods
noted above, but this was mainly due to the increase in aluminum
consumption which rose by 8.0 percent p.a. between 1999 and 2005. The
growth of most other metals was lower over this period.

India accounted for less than 9 percent of the growth in world energy
consumption during 1990-2003. Much of its increase was also for coal,
representing 19 percent of the growth in global consumption.

India is becoming a larger net importer of coal, partly because its reserves
are of poorer quality coals that generate excessive amounts of ashand
other particulate matter.

Excluding coal, India accounted for 8 percent of the growth in the worlds
non-coal energy demand, including 11 percent of incremental global oil
use. Although India consumes a much smaller volume of oil it relies on oil
for a greater share of its energy use. Its average growth is of 5 percent.
India alsoaccounted for 7 percent of the global increase in electricity
generation.

By 2050, Indias economy isprojected to grow between 58 percent and 100
percent, on the same basis. India would bethe worlds third largest
economy at market exchange rates, and tied for second with theU.S. when
measured at PPP. On a per capita basis, income in India in 2050 will be 27
percent, of the size of U.S. per capita incomes in PPP.


Module 3
Changing consumption pattern in India
Structural changes in a society also lead to transformations in consumption
patterns and lifestyles, which then impact resource consumption patterns.
India is witnessing dynamic transformations due to its rapid economic
growth, which is characterized by five main interlinked factors. These
factors act as drivers of demand and have a strong impact on resource
consumption. These drivers of demand are:
I. Growing population
II. Expanding industrial and service-related production
III. Rising (average) income
IV. Growing middle class and/or expanding cohort of middle class
V. Increasing urbanization
Growing population
India has the second largest population in the world, with 1,224 million
people (2010). It has the highest population growth rate amongst the BRIC
countries.. By 2025, India will become the most populated country in the
world. This increase in population would lead to a sharp rise in absolute
consumption levels, and hence the need for improving resource efficiency
will assume great importance. Due to the high saving potential in populous
countries, and the opportunity of changing the development path towards a
resource-efficient economy, addressing resource efficiency in India makes
perfect sense.


Expanding industrial and service-related production
Although the agricultural sector is still dominant in terms of employment,
the industrial and in particular the servicesectors are increasingly
contributing to employment and to GDP. In 2000, the agricultural sector still
contributed nearly one-fourth of GDP, but its share fell to around 14% in
2011 [UNStat, 2013]. In contrast, the service sector is contributing
increasingly to GDP, accounting for 58% in 2011. Some Indian companies
in the IT and IT-related service sector, and also in other sectors such as
pharmaceuticals, are among the worlds leading companies. These
companies are contributing increasingly to rising income and growing
employment in the Indian economy.

Rising (average) income
India has demonstrated faster and more stable growth than most other
countries with an average GDP growth rate of 8.28% in the period
from200405 to 20112012, India has been considered an emerging
economy [Ministry of Finance, 2012]. In 2010, IndiasGDP ranked fourth
after that of the USA, China, and Japan (World Bank, 2012). Per capita
income (at constant200405 prices) increased by a remarkable 81.5%
between 1990 and 2005. However, the average per capita income ofRs.
37,851 (at constant 200405 prices) was still low in 2011 [Reserve Bank of
India, 2011].

Growing middle class
Given the past growth rate in India, it can be assumed that this economic
growth will continue to lift people outof poverty and that real incomes will
continue to rise in the country. Rising incomes worldwide drive consumer
behaviour accompanied by high resource consumption. This holds true in
particular for a rising middle classas observed in India.The Indian middle
classhad doubled in size over the decade 20012010, growing from 5.7%
of all Indian households in 2001/02 to 12.8% of all households in
2009/2010. The Indian middle class will be the third largest consumer in the
world by 2020, with a share of 13% of world consumption, and will be the
largest consumer by 2030, with a share of 23% of world consumption
[Kharas / Gertz, 2010]. By 2050, it will have the largest middle class in the
world [Kerschner / Huq, 2011].


The middle class has the most significant impact on the consumption
patterns of a country since it enjoys considerable purchasing power.
Typical energy-intensive consumer products and services, such as cars
and dwellings, are available for, and affordable by, those with middle-class
incomes.

In an emerging economy with a large cohort of the middle class, overall
consumption patterns will change dramatically and become resource
intensive. A society with a majority of poor people is not able to purchase
typical consumer products or services because the main concern is the
struggle to survive. In such a society, the consumption of resources is very
limited, and people tend to be more efficient in their resource use as they
value these far more than people in a more affluent society. If resources
are more affordable, their valuation might decrease and their wastage
might increase, as can be observed in the Western throwaway mentality.


Increasing urbanization

Besides witnessing a trend of rising population, India is also facing
increased urbanization, similar to the situation in other emerging
economies. Indian cities are already home to roughly 340 million people,
and by 2030, there will be an estimated 590 million people living in cities
(40% of the estimated population of India). Cities, which accounted for
around 58% of Indias GDP in 2008, will account for nearly 70% of GDP by
2030 [McKinsey Global Institute, 2010]. India has eight metropolises with
more than 5 million inhabitants: Mumbai, Delhi, Kolkata,
Chennai,Bangalore, Ahmedabad, Hyderabad, and Pune.
However, compared to the BRIC countries, India had a relatively low
percentage of urban population (31%) in 2010. Indias urban growth rate
has remained high since then, and is expected to continue to be so until
2050. The migration trend from rural to urban areas creates huge pressure
on infrastructure, housing, and other goods and services, which, in turn,
leads to a larger demand for resources in cities. At thesame time, cities
also have the potential to use resources efficiently since urban density
means that there is a high concentration of people, money, and goods.
Hence, efficient distribution and reuse mechanisms can be developed and
implemented.

While material consumption in industrialized countries has remained at high
levels during the past few decades, therelatively less industrialized
countries are also increasingly emerging as large consumers of materials.
Global material useincreased sharply from around 35 billion tonnes in 1980
to more than 67.8 billion tonnes in 2009.Out of these 67.8 billion tonnes of
renewable and non-renewable materials used globally, India consumed
around7.1% or 4.83 billion tonnes while hosting around 14% of the global
population. If India continues theimpressiveeconomic development of the
past few decades, it will more than triple its resource demand until 2030,
using asmuch materials as all the OECD countries combined consume at
the present time.
Material productivity is usually measured as gained income per used tonne
of materials. Currently,India is gaining 716 dollars2 per tonne of consumed
materials. During the last three decades, India increased itsmaterial
productivity by nearly 2.9% per annum starting from a very low level (to
compare: material productivityincreased by an average of 2.3% each year
during the past three decades in all Asian countries). If India continuesto
make improvements in material productivity, it could gain around 1,306
dollars per tonne of consumed materialsin 2030.


Module 4
Current and future dimensions of Indias resource requirements
India is one of several developing countries taking off, competing with the
other emerging economies and with high-consuming industrialized
countries to gain access to more resources. Generally, all countries
increase pressure on the natural environment, ignoring natural limits and
being incapable of distributing advantages and burdens internationally in a
fair way other than the manner in which the market mechanism currently
does. In other words, the sustainable use of natural resources is back on
the international development agenda, and India has to prepare itself for
the future. India is at a crossroads: should it emulate the traditional
development model with its principles of extraction and high levels of
resource use at any price, or should it adopt a smarter model with its
principles of responsible mining and resource efficiency?
1. Rationale and approaches for efficient use of natural resources
India should look at resources in a comprehensive way, and seek to
improve the efficient use ofenergy, raw materials, and other natural
resources, must have more options for further economic
development, becomemore competitive, reduce dependence on
imports, and help mitigate other environmental and social problems.
The key is to address the business dimension of using
materials,energy, and water, and of processing food. Given that
resources have a and price expectations are generally upwards,
businesses do have incentives to undertakemanufacturing at the
lowest possible material costs.It may be assumed that a majority of
manufacturing companies have strong incentives to engage in efforts
to savematerial purchasing costs. They need to make resource
efficiency a core element of their strategy and business models.Early
barriers are lack of attention, information deficit, absence of financing,
and uncertainty about future demand. Many of these early
improvements will be on-site at the level ofindividual companies and
at the level of incremental process innovation, rather than address
the entire life cycle ofproducts or material flow systems.

Given that most business operations are value chain oriented, it is
increasingly good management to monitor the flowof materials along
value chains and to establish material stewardship where by-products
could be reusedand recycling offers tangible benefits. The resource
nexus offers potential benefits of reducing operating costs through
improved internal management of water, waste, energy, materials,
carbon, and hazardous materials in an integratedmanner. Indeed, this
can and should be combined with efforts to reduce environmental
impacts. While these strategieswill improve the return on capital,
other strategies can improve growth and contribute to better risk
management

2. Past and current material requirements in India
Indias material consumption in the past few decades exhibits a
pattern typical of countries during the developmentprocess from an
agrarian or solar energy-based society to an industrial or fossil fuel-
based society where usually theconsumption of non-renewable
materials increases, in particular the consumption of minerals and
metals required forbuilding infrastructure and the consumption of
fossil fuels for energy supply. India can be considered as a country in
the first stages of transformation, with a high share of
biomassconsumption, reflecting the high share of the rural population
working in agriculture. Typically, thedemand for minerals and metals
is exceptionally high when countries construct large parts of their
infrastructure.
This is currently happening in India where not only buildings, but also
the transportation, communications, andsupply infrastructure have
been built up in a short period of time. Industrialized countries that
already possess massiveand advanced infrastructure mostly have
high levels of consumption of fossil fuels (depending on their main
energysources), but a medium level of consumption of minerals and
metals, required for the maintenance of their builtspaces.

Per capita consumption of materials in India has changed during the
past few decades. Per capita consumption of materials remained at a
low level of less than 3 tons per capita a year, and even fell slightly
between 1961 and 1980. This is evidence of the fact that population
size increased at a faster rate than therate of absolute material
consumption. Thereafter, per capita consumption of materials grew
faster than populationsize. Also, per capita consumption of biomass
declined, while consumption of non-renewable materials increased,in
particular non-metal minerals. Per capita consumption of materials in
India is still low compared to the rest of the world. With an average of
4.2 tons per capita, India ranked 151st out of 193 countries in the
world in 2009, consuming less than half of theglobal average of
around 10.0 tons.The greatest increases can be found in the
consumption of non-metal minerals, while the absolute consumption
ofbiomass has stagnated.

3. Future material requirements
The structural changes faced by India as an emerging economy rising
population, rising industrial and service-relatedproduction, rising
middle class, rising income, rising urbanization will change the
resource demandsignificantly in the country. The need for food,
water, energy, minerals, and metals will clearly increase in the
comingdecades.To estimate Indias future resource demand in detail,
the overall patterns of resource use during the development process
are useful but not sufficient. In addition, one has to make several
further assumptionsabout the past dynamics of Indias material use
and also take into account the dynamics and consumption levels
inother countries as references. In order to assess the spread and
dimension of the future demand of Indias material requirements, one
can distinguishthree different scenarios. A pessimistic scenario
envisages a slowdown in economic growth; the ineffectiveness
ofpoverty reduction strategies, resulting in high population growth;
and a depleting resource base because of theabsence of
technological improvements in production techniques. In contrast, an
optimistic scenario assumes a veryrapid process of catching up, with
economic production of two-digit growth rates, as observed in China;
and a rapidreduction of poverty, resulting in low population growth. In
between the two extremes is a third scenario, which usesprojections
of economic development made by the Government of India, linked to
some improvements in povertyreduction. In order to assess the
nature and scope of the required materials, no resource constrains
will be assumed inthe optimistic and medium scenarios.
Module 5
Where will the materials come from?
Like most countries, India meets most of its demand for resources
domestically. Currently, around 97% of all materialsconsumed are
extracted within India, while only 3% are net imports. Thus, India is, on the
whole, self-sufficient (butnot with regard to all materials).In the light of
increased material consumption in India, and also globally, a key question
arises: from where shouldthese materials be sourced? Materials come
either from domestic resources, or can be imported as rawmaterials or as
finished goods. Both sources have advantages as well as limitations, as
described in thefollowing paragraphs.
1. Increased exploitation of domestic sources:
Due to insufficient exploration, it is not known if India could satisfy its future
demand domestically. India has a land mass of around 1.8 million sq. km.
However, only 3% of this landmass has been mapped geo-physically and
4% has been mapped geo-chemically.
The technical constraints include lack of effective technologies for
underground mining and for the extractionof by-products. As a result, huge
amounts of resources remain unexploited. Many of Indias mineral reserves
lie under dense forests and some are located in the watersheds of its
rivers,which are also inhabited by indigenous communities. Mining activity,
over the years, has led to large-scaledestruction of forests, to displacement
of millions, and to loss of livelihood for many. Owing to deteriorating socio-
environmentalconditions, opposition of tribes and of other local
communities against mining has increased in thepast few years.
The locations of mineralsresources in India overlap largely with forest
areas. Mining thus leadsto huge loss of forest cover, destruction of
biodiversity, and damage to the natural ecosystem. Around 60% of
coalresources, for instance, are located in forests. Similarly, 61% of current
chromite miningleases are in forest areas. With the rise in the demand for
materials, the need for mining in forest areas will furtherincrease, leading to
far greater destruction of forests, biodiversity, and ecosystems. It is
estimated that the requirement of forest land for coal mining will increase
from 22,000 hectares (i.e. 15% of thecurrent total land requirement) to
73,000 hectares (i.e. 25% of the projected total land requirement) by 2025.
Mining involves activities like drilling, blasting, excavation, construction of
haul roads, movement of heavy earthmoving machinery (HEMM), etc.,
which results in dust emissions, fugitive emissions of particulate matter
andgases such as sulfur dioxide (SOx), nitrogen oxide (NOx), methane,
carbon dioxide, carbon monoxide, etc. Therelease of greenhouse gas
(GHGs) emissions compounds the problem of climate change. According to
estimates,the minerals industry contributes to around 32% of total GHG
emissions of India. The metals sector contributedabout 122.7 million tons of
CO2 emissions (ibid.). In particular, the iron and steel industry, cement
plants,manufacture of sulfuric acid, and smelting of copper, zinc, lead ore,
etc. are significant contributors of CO2 and alsoSox
Mining also leads to significant degradation of land, which is perhaps the
most serious environmental externalityresulting from the operations. The
problem is compounded because of the emphasis on open-cast mining
inIndia, which causes much greater land degradation than underground
mining. In India, large tracts of land areleft degraded as a result of activities
like excavation, stacking of waste dumps, discharge from workshops,
andconstruction of tailing ponds.In Jharia, in Jharkhand state, for example,
a total of 75.77 sq. km of land has beenaffected due to fire (17.32 sq. km),
subsidence (39.47 sq. km), excavation (12.68 sq. km), and dumps (6.30 sq.
km)
Mining activities also lead to stress on water resources, whose availability
and supply are limited in India. Theynot only use a lot of water, but also
affect the hydrological regime. The major hydrological impact of a large
anddeep open-cast mine is on the groundwater regime of the region. Many
mining regions in the country confront theproblem of overexploitation of
groundwater resources, resulting in the lowering of the water table. The
release ofmining waste into local water bodies leads to water pollution,
which effects local communities. The Damodar Riverin Jharkhand and
West Bengal, for instance, has been severely polluted due to coal-mining
activities. Similarly,mining in the mineral-rich Jaintia Hills district of
Meghalaya has created an acute crisis of drinking water as themajor rivers
in the region have been contaminated and declared unfit for human use.
2. Increased imports
The increase in domestic extraction raises serious questions about
whether, and to what extent, it ispossible, feasible, and advisable to
continue along this path, that is, increased domestic extraction. In the
followingparagraphs, the strategic option, increased imports, will be
analyzed in terms of the challenges and risks itpresents:

Althoughthe extent of global reserves is not fully known, scientists
estimate that several resources have alreadyreached the highest
level of their extraction or will peak in the next few decades. They
predict that future extractionwould be limited or would be
uneconomical due to, for example, deteriorating ore grades and
increasing effortsrequired to extract the resources in the face of
increasing energy and water prices. Examples are oil and copper.
Many emerging economies are pursuing strategies for promoting their
downstream industries and for preservingtheir domestic reserves for
future use. This is apparent in the proliferation of government
measures that distortinternational trade, especially in raw materials.
These include quantitative export restrictions (quotas), exporttaxes,
reduction or cancellation of VAT rebates, mandatory minimum export
prices, and stringent export licensingrequirements.13 Materials such
as gallium, antimony, cobalt, copper, chromium, germanium, indium,
manganese,molybdenum, nickel, platinum, palladium, rare earths,
tungsten, titanium, and tantalum are all subject to
tradedistortingmeasures.

Even if resources were available from abroad, the question of
affordability is an important factor. Scientists assumethat resource
prices on the world markets will increase further. India as a net-
importing country in physical termshas a negative monetary trade
balance. In the past few years, Indias monetary trade deficit has
increased. If global resourceprices continue to increase, and given
the ongoing weakness of Indias currency, Indias imports will become
evenmore expensive, widening the existing trading deficit even
further.

With regard to an increase in domestic socio-environmental pressure,
increasing imports impliesshifting the environmental burden to a
place abroad. At best, tribes and valuable ecosystems are not
affected, or areaffected to a small extent. At worst, tribes without
rights are affected and ecosystems without any protection
aredestroyed.

While India is, on the whole, still self-sufficient in renewable materials,
it is already import dependent in nonrenewablematerials, in particular
with regard to petroleum and specific minerals and metals. For
example,India imports 70% of its petroleum and 95% of its copper.
With regard to several minerals, India is completelydependent on
importsHowever, high import dependency exposes the country to
geopolitical and geo-economic risks stemming fromchanging
dynamics in the international minerals market, in particular if the
reserves and production areas are concentrated in a small number of
politically unstable countries as the concentration of production in the
hands of a small numberof producing nations may increase the
potential of supply disruption due to local disturbances in the
producingcountries, politically inspired embargoes, or cartel actions
that raise prices by limiting supplies.

Resourcerich nations use their resourcebase as a tool to attain
political objectives. This is evident from the recentincident wherein
the Chinese banned exports of rare earths to Japan in retaliation for
the detainment of fourChinese fishermen whose boat had collided
with Japanese patrol boats.

The decreasing number of competitors, coupled with the growing size
of the remaining firms inthe industry, makes it more likely for potential
market power to exist. Market power may allow a powerful firm ora
group of firms to raise prices opportunistically to take advantage of a
weak buyer. Thus, supply may be prone topressure from the
opportunistic behavior of companies.

Many mineral rich nations are facing violent conflicts because of
competition to control mineral resources,inequitable allocation of
resource revenue, and social and environmental externalities
resulting from miningactivities. Indeed, mining-related conflicts have
become a permanent feature of the political landscape in many
Resource rich countries such as Indonesia, the Democratic Republic
of Congo, and Peru, where encounters betweenmining companies
and local communities are increasingly characterized by public
protest, violent conflict, and thenotable absence of state intervention.

3. Increased material efficiency
Improved resourceefficiency, is one of the most promising options
being promoted in several countries. However, a major challenge in
India is determining how to reduce poverty and improve the quality of
life in a waythat requires as few resources as possible. Using
resources in a more efficient manner would be a major part of such
astrategy.
Resource productivity at a macroeconomic level depends on various
factors. An economy with large resource-intensivesectors such as
mining, construction, and agriculture has usually lower resource
productivity values than an economywith large service and research
sectors, which are, by and large, less resource intensive.
Furthermore, the mix of energysources largely influences resource
productivity; coal as a main energy source is less resource efficient
than, for example,gas or water. Thus, rather than comparing the
absolute levels of resource productivities of various countries,
theimprovements and productivities of sectors should be the focus.
India has shown a remarkablegrowth in resource productivity, with
more than three times the global average. The highest increases can
be observed after Indiabegan its liberalization and economic reforms
in 1991.

National assessments of material productivity have to be analyzed
further in order to understandthe dynamics of this phenomenon. The
next step is usually an analysis of material productivity by sectors. In
India the agriculture and forestry sector has remained the sector
with thehighest direct and indirect material input due to Indias large
agricultural production. However, the construction sectorand the
sector group wood/metal/chemical products hence the main
manufacturing sectorshave been catchingup significantly in the same
period. Both sectors are not only the most dynamic ones in terms of
physical growth, butare also the second and third largest in terms of
material input.

Material productivity improved in several sectors in India during the
past few years while it stagnated in others. Whilethe value added per
unit of used material remained stable in the agricultural and forestry
sectors, it improved inparticular in the service and business sectors,
followed by the mining and quarrying sector.The potentials of
resource efficiency have by no means been fully exploited as yet.
Thus, evenincremental improvements could lead to quick material
and cost savings for Indias companies. Theseincremental material-
efficiency measures could comprise changed production process
parameters (e.g. temperature,proportioning, shuffling), the
optimization of production processes (e.g. batch sizes, set- up times),
new productionelements or technologies (e.g. cartridges, filters,
application technology), alternative production methods (e.g.
forcoating, grease removing, segregation), as well as the qualification
and training of employees (e.g. team-buildingmeasures, definition of
responsibilities, offering of incentives), etc.
Module 5
Mineral Resources and Sustainability Issues
Our heavy dependence on mineral resources presents humanity with some
difficult challenges related to sustainability, including how to cope with finite
supplies and how to mitigate the enormous environmental impacts of
mining and processing ore. As global population growth continues and
perhaps more importantly, as standards of living rise around the world
demand for products made from minerals will increase
It is difficult to know exactly the future demand for minerals and the size of
future mineral reserves. The remaining life for specific minerals will
decrease if future demand increases. On the other hand, mineral reserves
can increase if new mineral deposits are found (increasing the known
amount of ore) or if currently unprofitable mineral deposits become
profitable ones due to either a mineral price increase or technological
improvements that make mining or processing cheaper. Mineral resources,
a much larger category than mineral reserves, are the total amount of a
mineral that is not necessarily profitable to mine today but that has some
sort of economic potential.
Sustainable Solutions to the Mineral Crisis
Providing sustainable solutions to the problem of a dwindling supply of a
nonrenewable resource such as minerals seems contradictory.
Nevertheless, it is extremely important to consider strategies that move
towards sustainability even if true sustainability is not possible for most
minerals. The general approach towards mineral sustainability should
include mineral conservation at the top of the list. We also need to
maximize exploration for new mineral resources while at the same time we
minimize the environmental impact of mineral mining and processing.
Conservation of mineral resources includes improved efficiency,
substitution, and the 3 Rs of sustainability, reduce, reuse, and recycle.
Improved efficiency applies to all features of mineral use including mining,
processing, and creation of mineral products. Substituting a rare
nonrenewable resource with either a more abundant nonrenewable
resource or a renewable resource can help. Examples include substituting
glass fiber optic cables for copper in telephone wires and wood for
aluminum in construction. Reducing global demand for mineral resources
will be a challenge, considering projections of continuing population growth
and the rapid economic growth of very large countries such as China, India,
and Brazil.
Historically economic growth is intimately tied to increased mineral
consumption, and therefore it will be difficult for those rapidly developing
countries to decrease their future demand for minerals. In theory, it should
be easier for countries with a high mineral consumption rate such as the
U.S. to reduce their demand for minerals but it will take a significant change
in mindset to accomplish that. Technology can help some with some
avenues to reducing mineral consumption. For example, digital cameras
have virtually eliminated the photographic demand for silver, which is used
for film development. Using stronger and more durable alloys of steel can
translate to fewer construction materials needed. Recycling can extend the
lifetime of mineral reserves, especially metals. Recycling is easiest for pure
metals such as copper pipes and aluminum cans, but much harder for
alloys (mixtures of metals) and complex manufactured goods, such as
computers. Many nonmetals cannot be recycled; examples include road
salt and fertilizer. Recycling is easier for a wealthy country because there
are more financial resources to use for recycling and more goods to
recycle. Additional significant benefits of mineral resource conservation are
less pollution and environmental degradation from new mineral mining and
processing as well as reductions in energy use and waste production.
Because demand for new minerals will likely increase in the future, we
must continue to search for new minerals, even though we probably have
already found many of the easy targets, i.e., high-grade ore deposits
close to the surface and in convenient locations. To find more difficult ore
targets, we will need to apply many technologies including geophysical
methods (seismic, gravity, magnetic, and electrical measurements, as well
as remote sensing, which uses satellite-based measurements of
electromagnetic radiation from Earths surface), geochemical methods
(looking for chemical enrichments in soil, water, air, and plants), and
geological information including knowledge of plate tectonics theory. We
also may need to consider exploring and mining unconventional areas such
as continental margins (submerged edges of continents), the ocean floor
(where there are large deposits of manganese ore and other metals in
rocks called manganese nodules), and oceanic ridges (undersea
mountains that have copper, zinc, and lead ore bodies).
Finally, we need to explore for, mine, and process new minerals while
minimizing pollution and other environmental impacts. Regulations and
good engineering practices are necessary to ensure adequate mine
reclamation and pollution reduction, including acid mine drainage. The
emerging field of biotechnology may provide some sustainable solutions to
metal extraction. Specific methods include bio oxidation (microbial
enrichment of metals in a solid phase), bioleaching (microbial dissolution of
metals), bio sorption (attachment of metals to cells), and genetic
engineering of microbes (creating microorganisms specialized in extracting
metal from ore).
Objective:
Structural changes in a society also lead to transformations in consumption
patterns and lifestyles, which then impact resource consumption patterns.
India is witnessing dynamic transformations due to its rapid economic
growth, which is characterized by some main interlinked factors. These
factors act as drivers of demand and have a strong impact on resource
consumption.In India, overall material consumption has remained low.
However, metal ores and industrial minerals use grew by 8.6 per cent each
year over the period from 1998 to 2008, which indicates that India is
entering a rapid acceleration phase in its transition to an industrialized
economy. In this module, the following topics will be covered:
1) Scenario of mineral consumption in India
2) Changing consumption pattern in India
3) Current and futuredimensions of Indiasresource requirements
4) Solutions to the crisis involving mineral supply
Summary:
Over the last two decades, India has witnessed strong economic growth,
mirrored in a gradual shift fromagricultural to industrial and service sector
production, a rising middle class, increasing urbanization, andlarge-scale
infrastructure development, which have contributed to eradicating poverty.
This rapid economicgrowth has been achieved through the extensive
consumption of resources, particularly biotic and abiotic rawmaterials like
minerals, metals, fossil fuels, and biomass. The trends will continue in the
future, and thusdecoupling of resource consumption and economic growth
is required.
FAQs
1. Why are minerals important to Industries?
Minerals are the base of all industries. Even some agricultural-based
products like paper and textile require minerals or mineral-based
chemicals at various stages of production. The machines required for
their production are made essentially out of iron ore and other
minerals. Thus, minerals and mineral deposits are at the foundation
of industrial development in any country.
2. How Consumption of materials can be measured?
Consumption of materials can be measured at a number of points; in
the production process including at extraction, at beneficiation, at
production of a refined product, at the point of processing to basic
shapes (semi-manufacture), at manufacture of final goods, or at the
point of sale to consumers.

3. What is industrial consumption of material?
The most common point of measurement is at the point of production
of refined product. When measured at this point consumption is
referred to industrial consumption or apparent consumption.
Industrial consumption measures the material consumed (or
produced) by a country's industrial sector.

4. How much percentage of worlds metal does India consumes ?
India consumes less than 3 percent of the worlds metals

5. Which metals are largely imported by India?
India is a large net importer of copper, lead, nickel and tin

6. Which metals are largely imported by India?
India is a net exporter of zinc and iron ore

7. Why India needs to import coal?
India is becoming a larger net importer of coal, partly because its
reserves are of poorer quality coals that generate excessive amounts
of ash and other particulate matter.

8. What are the driving factors for changing consumption pattern of
India?
Growing population
Expanding industrial and service-related production
Rising (average) income
Growing middle class and/or expanding cohort of middle class
Increasing urbanization

9. Which factor has the most significant effect on consumption of
resources?
The middle class has the most significant impact on the consumption
patterns of a country since it enjoys considerable purchasing power.
Typical energy-intensive consumer products and services, such as
cars and dwellings, are available for, and affordable by, those with
middle-class incomes.

10. How increasing urbanization leads to increase in consumption
of resources?
The migration trend from rural to urban areas creates huge pressure
on infrastructure, housing, and other goods and services, which, in
turn, leads to a larger demand for resources in cities.

11. What kind of pattern does Indias material consumption in the
past few decades exhibits?
Indias material consumption in the past few decades exhibits a
pattern typical of countries during the developmentprocess from an
agrarian or solar energy-based society to an industrial or fossil fuel-
based society

12. Why thedemand for minerals and metals is exceptionally high in
India?
Thedemand for minerals and metals is exceptionally high when
countries construct large parts of their infrastructure.This is currently
happening in India where not only buildings, but also the
transportation, communications, and supply infrastructure have been
built up in a short period of time.

13. What are the problems associated with mining?
The locations of mineralsresources in India overlap largely with forest
areas. Mining thus leadsto huge loss of forest cover, destruction of
biodiversity, and damage to the natural ecosystem

14. How mining effects climate?
Mining involves activities like drilling, blasting, excavation,
construction of haul roads, movement of heavy earthmoving
machinery (HEMM), etc., which results in dust emissions, fugitive
emissions of particulate matter andgases such as sulfur dioxide
(SOx), nitrogen oxide (NOx), methane, carbon dioxide, carbon
monoxide, etc. Therelease of greenhouse gas (GHGs) emissions
compounds the problem of climate change.

15. What is the most severe effect of mining on the environment?
Mining also leads to significant degradation of land, which is perhaps
the most serious environmental externalityresulting from the
operations. The problem is compounded because of the emphasis on
open-cast mining inIndia, which causes much greater land
degradation than underground mining.

ASSIGNMENT
1. Explain the utility of minerals.
2. How are minerals formed?
3. What are the top minerals found in India?
4. Which minerals are exported and imported in India?
5. Discuss the scenario of mineral consumption in India?
6. What factors influence the consumption pattern of minerals in
India?
7. Is population explosion a factor for changing consumption pattern
of minerals in India?
8. How does increasing income level affect the consumption pattern?
9. Why middle class has the most significant impact on the
consumption patterns of a country?
10. Explain in what ways Increasing urbanization is also
responsible for changing consumption pattern of resources?
11. What are the major environmental issues associated with
mineral resources?
12. Why is society facing a crisis involving mineral supply and how
might we work to solve it?


Quiz
1. Consider following statements about Minerals and select the correct
answer
i) Minerals have definite chemical composition.
ii) Minerals are formed by natural process only.
a. i only
b. ii only
c. Both
d. None
Answer. (c)
2. A Non-Ferrous mineral does not contain?
a. Gold
b. Copper
c. Iron
d. Silver
Answer. (c)
3. Which of the following is non-metallic mineral?
a. Manganese,
b. Mica,
c. Chromites,
d. None of these
Answer. (b)
4. Which of the following continent is leading producer of IRON- ORE?
a. Asia,
b. Europe,
c. Africa,
d. Australia
Answer. (b)
5. Consider following statements:
i) Ferrous minerals belong to Metallic minerals.
ii) Non Ferrous minerals belong to Non-Metallic minerals.
Among these which are TRUE
a) i only
b) ii only
c) Both
d) None
Answer. (a)
6. India consumes less than _____% of worlds metal resources:
a) 5
b) 4
c) 3
d) 6
Answer. (c)
7. india uses _____ % of the worlds primary energy
a) 5
b) 4
c) 3
d) 6
Answer. (b)
8. India is the _____largest oil consuming country
a) 5
b) 4
c) 3
d) 6
Answer. (d)
9. India is a large net importer of
a) copper
b) zinc
c) iron ore
d) All of the above
Answer. (a)
10. By 2050, Indias economy is predicted to be worlds ___largest
a) second
b) third
c) Fourth
d) Fifth 8.28%
Answer. (b)
11. Average GDP growth rate of India in the period from 200405 to 2011
2012 was recorded to be
a) 10.11%
b) 8.28%
c) 6.8%
d) 7.9%
Answer. (b)

GLOSSARY
BRIC: An acronym for the economies of Brazil, Russia, India and China
combined.
Export: shipping the goods and services out of the port of a country.
GDP: gross domestic product, the market value of all final goods and
services from a nation in a given year.
Greenhouse gas:A greenhouse gas (sometimes abbreviated GHG) is a
gas in an atmosphere that absorbs and emits radiation within the thermal
infrared range.
HEMM: heavy earth moving machinery
Import: An import is a good brought into a jurisdiction, especially across a
national border, from an external source.
Middle class: a class of people in the middle of a societal hierarchy the
middle class is the broad group of people in contemporary society who fall
socio-economically between the working class and upper class
Mineral:Naturally occurring inorganic solid with a defined chemical
composition and crystal structure.
Mineral conservation:Method of extending the mineral supply that
includes improved efficiency, substitution, reduce, reuse, and recycle.
Mineral recycling:Method of extending the mineral supply that involves
processing used Minerals into new products to prevent waste of potentially
useful materials.
Mineral reserves:The known amount of ore in the world.
Mineral resources:Total amount of a mineral used by society that is not
necessarily profitable to Mine today but has some sort of economic
potential.
Mineral reuse:Method of extending the mineral supply that involves using
a mineral multiple times.
Mineral substitution:Method of extending the mineral supply; involves
substituting a rare nonrenewable resource with either a more abundant
nonrenewable resource or a renewable resource.
Non- Renewable resources: A non-renewable resource (also known as a
finite resource) is a resource that does not renew itself at a sufficient rate
for sustainable economic extraction in meaningful human time-frames
OECD - Organisation for Economic Co-operation and Development
Ore:Rock with an enrichment of minerals that can be mined for profit.
Ore deposit:Location with abundant ore.
Open-cast mine:Type of surface mineral mine which commonly involve
large holes that extract relatively low-grade metallic ore.
Per capita income:Per capita income, also known as income per person,
is the mean income of the people in an economic unit such as a country or
city.
PPP: Purchasing power parity (PPP) is a component of some economic
theories and is a technique used to determine the relative value of different
currencies.
Recycling:Recycling is a process to change (waste) materials into new
products to prevent waste of potentially useful materials, reduce the
consumption of fresh raw materials
Renewable resources: resources which are naturally replenished on a
human timescale such as sunlight, wind, rain, tides, waves and geothermal
heat.
Resource productivity: Resource productivity is the quantity of good or
service (outcome) that is obtained through the expenditure of unit resource.
This can be expressed in monetary terms as the monetary yield per unit
resource.
Rock:A solid coherent piece of planet Earth.
Strategic mineral:Mineral considered essential to a country for some
military, industrial, or commercial purpose but the country must import the
mineral to meet its needs.
Strip mine:Type of surface mineral mine which extracts horizontal layers of
ore or rock.
Surface mine:Mineral mine that occurs at Earths surface.
Sustainability: sustainability is how biological systems endure and remain
diverse and productive.
Tailings:Fine-grained waste produced from processing ore.
Underground mine:Mineral mine that involves a network of tunnels to
access and extract the ore.
Urban areas: An urban area is characterized by higher population density
and vast human features in comparison to the areas surrounding it.
Urbanization: increasing number of people that live in urban areas
Weathering:Ore forming process where soil water in a tropical rain forest
environment concentrates insoluble elements such as aluminum (bauxite)
by dissolving away the soluble elements.
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