Rare Earths Elements (REE) and Responsible Mining: An ESG Roadmap for India
Rare Earths Elements (REE) and Responsible Mining: An ESG Roadmap for India
Rare Earths and Responsible Mining: An ESG Roadmap for India 1
Background: Rare Earth Minerals in the Global and Bharat’s Context 2
China’s Dominance: A Strategic Concern 2
Bharat's Position: Potential vs. Policy Bottlenecks 2
Bharat’s Current Capabilities and Challenges 3
Capabilities: What Bharat Has 3
Challenges: What’s Holding Bharat Back 4
Bridging the Gap: What Bharat Needs to Do 4
Sustainability and ESG Considerations in Rare Earth Development 5
1. Radiation and Toxic Waste 5
2. Water and Energy Intensity 5
1. Tribal and Coastal Communities 6
1. Transparency and Regulation 6
Toward a Circular Economy in Rare Earths 7
List of Rare Earth Elements (REEs) 7
1. Light Rare Earth Elements (LREEs) 8
Major Producers of Rare Earths 9
Now lets understand about end products of REE 9
Phosphors (For Lighting and Displays) 10
Defense and Aerospace Applications 10
Rare Earth Minerals Found in Bharat (Key States) 11
Bharat's Strengths and Challenges 12
Bharat’s Rare Earth Exports – Key Highlights 12
Bharat's REE Export Trends (Recent Years) 13
Conclusion: A Rare Opportunity Demands Responsible Action 14
Background: Rare Earth Minerals in the Global and Bharat’s Context
In the purview of Globalisation and increasing economy, rare earth elements (REEs) are the foundation of modern technological advancement. These 17 elements — though rarely heard of outside scientific circles — are indispensable to the production of electric vehicles, wind turbines, smartphones, medical imaging devices, and advanced defense systems. Their unique magnetic, luminescent, and electrochemical properties make them irreplaceable in many applications.
China’s Dominance: A Strategic Concern
As of 2024, China controls over 60% of global rare earth mining and more than 85% of rare earth refining and processing capacity. This control has raised concern worldwide, especially after multiple instances where China used REEs as a geopolitical tool, halting or reducing exports during trade tensions. Nations like the USA, Japan, and EU members are now trying to overpower China dependency and secure alternative sources.
Bharat's Position: Potential vs. Policy Bottlenecks
We are very fortunate that we are blessed with one of the world’s largest reserves of monazite sands, especially along its southern and eastern coasts. These sands are rich in light rare earth elements like cerium, lanthanum, neodymium, and praseodymium. Despite this natural wealth, Bharat remains a minor player in global REE trade, largely due to:
Regulatory restrictions under the Atomic Energy Act, 1962 (since monazite contains thorium which is radioactive)
We have very Limited processing infrastructure
Lack of private sector participation REE industries due to Atomic Energy Act, 1962
Yet Bharat's growing electric, electronics market and defense modernization plans, the demand for rare earths is expected to soar. If Bharat does not work on the infrastructure for processing own REE, then it will be vulnerable to many outside controls
Sustainability and ESG Imperatives
From an Environmental, Social, and Governance (ESG) perspective, REE mining poses a paradox. These minerals are critical for green technologies like EVs and renewable energy, but their extraction process is intensive and hazardous to the environment, due to radioactive waste.
Bharat must therefore be grounded in sustainable rare earth governance, which includes:
Responsible mining with ecological safeguards
Recycling of Rare Earth Element (REE)
Transparent policies with environment friendly refining technologies
Protection of biodiversity in mining areas
Bharat’s Current Capabilities and Challenges
Capabilities: What Bharat Has
Rich Geological Reserves
Bharat has one of the world’s largest reserves of monazite (~6.9 million tonnes), mainly located in:
Tamil Nadu (Manavalakurichi) | Kerala (Chavara) | Odisha | Andhra Pradesh| Jharkhand | Chhattisgarh |RajasthanIndia Rare Earths Limited (IREL), under the Department of Atomic Energy (DAE), is the primary agency for mining, separation, and initial processing. It has capabilities of extracting cerium, lanthanum, neodymium, and mixed rare earth compounds.
ESG-Aligned Policy Thinking
Bharat has emphasized green technology development and ESG compliance across industries.
New missions like National Electric Mobility Mission, PLI schemes, and Make in Bharat for clean energy components indicate increasing domestic demand for REEs.
Challenges: What’s Holding Bharat Back
Monazite contains Thorium, which is radioactive and governed by the Atomic Energy Act, 1962. This restricts private sector participation and discourages foreign investment in REE extraction and processing.
Bharat currently lacks advanced separation technology, especially for heavy REEs like dysprosium and terbium, which are crucial for high-performance magnets.
Most of the extracted REEs are exported as raw or semi-processed compounds
Absence of Rare Earth Recycling Ecosystem
Geopolitical Lag
Bridging the Gap: What Bharat Needs to Do
We need to amend regulatory frameworks to separate radioactive and non-radioactive REE sectors
We must Build a national rare earth mission integrating mining, ESG compliance, R&D, and green refining
Incentivize REE recycling, especially from solar panels, EV batteries, and electronics
Develop global partnerships for technology transfer and strategic sourcing some thing like International Solar Alliance
Sustainability and ESG Considerations in Rare Earth Development
Now we will focus on type of environment considerations are there in refining of those element
Environmental Considerations
1. Radiation and Toxic Waste
REEs like monazite sands often coexist with thorium, a radioactive element. Poorly managed mining and separation can lead to:
Groundwater contamination | Soil degradation | Long-term ecological harm
2. Water and Energy Intensity
REE processing involves acid leaching, solvent extraction, and high-temperature operations — all these consume significant water and power, and generate hazardous waste.
3. Biodiversity Risks
Many rare earth reserves are in ecologically sensitive coastal or tribal regions. Unsustainable mining can disrupt habitats and marine ecosystems.
Bharat must invest in:
Clean separation technologies | Responsible mine tailings management | Environmental Impact Assessments (EIA) with strict compliance norms
Social Considerations
1. Tribal and Coastal Communities
Mining areas often overlap with indigenous lands or fishing communities.
2. Health and Safety
Rare earth operations expose workers and nearby populations to radioactive dust, heavy metals, and chemical fumes.
Best practices should include:
Free, Prior, and Informed Consent (FPIC) for affected communities
Strong labor safety protocols and health monitoring
Local employment and capacity building
Governance Considerations
1. Transparency and Regulation
Currently, rare earth extraction in Bharat is governed by outdated frameworks under the Atomic Energy Act (1962).
2. Monopoly and Strategic Control: IREL being the primary operator, there’s limited competition and slow progress in scaling up value-added processing.
Bharat must:
Build a transparent and ESG-compliant policy regime
Encourage responsible private sector entry
Set up a national ESG rating or certification system for critical mineral operations
Toward a Circular Economy in Rare Earths
As global REE demand surges, recycling and urban mining must be prioritized:
Extracting REEs from e-waste, EV batteries, wind turbine magnets, and fluorescent lights
Developing eco-friendly recovery technologies
Promoting Extended Producer Responsibility (EPR) in the electronics and automobile sectors
Know about Rare Earth Elements
Rare Earth Minerals (Rare Earth Elements - REEs) are a group of 17 chemically similar elements that are crucial in the manufacturing of many high-tech products. Despite their name, they are relatively abundant in the Earth's crust, but are rarely found in concentrated and economically exploitable forms, which makes them strategically important and sometimes geopolitically sensitive.
List of Rare Earth Elements (REEs)
Marked in Yellow are the REE place below in Periodic Tables
They are divided into two categories:
1. Light Rare Earth Elements (LREEs)
Lanthanum (La) | Cerium (Ce) | Praseodymium (Pr) | Neodymium (Nd) | Promethium (Pm) – radioactive and rare | Samarium (Sm)
2. Heavy Rare Earth Elements (HREEs)
Europium (Eu) | Gadolinium (Gd) | Terbium (Tb) | Dysprosium (Dy) | Holmium (Ho) | Erbium (Er) | Thulium (Tm) | Ytterbium (Yb) | Lutetium (Lu) | Yttrium (Y) – often grouped with HREEs though not a lanthanide
Applications of Rare Earth Elements
Rare earths are essential in:
Major Producers of Rare Earths
China – Dominates global production (>60%) and refining capacity
USA – Mountain Pass mine in California
Australia – Mount Weld mine
Bharat, Vietnam, Brazil, and Russia also have reserves
Now lets understand about end products of REE
Bharat has significant reserves of several rare earth minerals, especially monazite, which contains many light rare earth elements (LREEs). While Bharat does not dominate global production, it holds a strategic reserve and has untapped potential.
Rare Earth Minerals Found in Bharat (Key States)
Bharat's Strengths and Challenges
Bharat’s Rare Earth Exports – Key Highlights
Bharat exports rare earths to major destination
China – for further refining or industrial use
Japan – for high-tech manufacturing (esp. magnets)
South Korea | USA | Germany
These countries use Bharat exports in:
Electronics, Auto parts, Renewable energy equipment, Glass polishing and ceramics
Bharat's REE Export Trends (Recent Years)
Note: Exact values vary and are not always disclosed due to strategic sensitivity.
Key Takeaways
Reserve potential: Large monazite reserves along coasts and inland, but underutilized.
Import dependency: Heavy reliance on China, especially for metals and processed compounds.
Export focus: Bharat exports compounds, not high-value metals; volumes remain small.
Recent pressures: China's export curbs have spotlighted Bharat's supply vulnerabilities and accelerated domestic policy action.
Opportunity ahead: Map of reserves and trade data underscore the urgent need for investment in local processing, ESG-aligned mining, and strategic autonomy.
Conclusion: A Rare Opportunity Demands Responsible Action
As Bharat Marching towards a $5 trillion economy, its demand for rare earth elements will only intensify. These minerals are the bedrock of our clean energy ambitions, digital transformation, and defense modernization. However, unlike conventional industrial growth stories, the rare earth narrative must be written with foresight, responsibility, and long-term sustainability.
Bharat, has monazite reserves and scientific capabilities and also the potential to emerge as a global alternative.The choice before us is clear: We can either be a raw material supplier in a global value chain controlled by others, or we can become a sustainable and self-reliant hub for rare earth innovation and manufacturing.
With the right policies, partnerships, and a deep commitment to ESG principles, Bharat can transform rare earth minerals from a buried asset into a cornerstone of its sustainable future.
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