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This document discusses changing mineral consumption patterns in India. It notes that while India's overall material consumption has remained low, consumption of metal ores and industrial minerals grew rapidly from 1998 to 2008, indicating India is becoming more industrialized. The document then examines trends in India's consumption and production of various minerals and energy resources like coal, oil, and metals. It finds that while India uses a small percentage of global minerals, its consumption growth rates have been relatively high. The changing consumption patterns are driven by factors like population growth, industrialization, rising incomes, and urbanization.
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Research about change in consumption pattern of minerals and other resources in India
Titolo originale
Change in Consumption Pattern of Minerals in India_finalmodifiednew
This document discusses changing mineral consumption patterns in India. It notes that while India's overall material consumption has remained low, consumption of metal ores and industrial minerals grew rapidly from 1998 to 2008, indicating India is becoming more industrialized. The document then examines trends in India's consumption and production of various minerals and energy resources like coal, oil, and metals. It finds that while India uses a small percentage of global minerals, its consumption growth rates have been relatively high. The changing consumption patterns are driven by factors like population growth, industrialization, rising incomes, and urbanization.
This document discusses changing mineral consumption patterns in India. It notes that while India's overall material consumption has remained low, consumption of metal ores and industrial minerals grew rapidly from 1998 to 2008, indicating India is becoming more industrialized. The document then examines trends in India's consumption and production of various minerals and energy resources like coal, oil, and metals. It finds that while India uses a small percentage of global minerals, its consumption growth rates have been relatively high. The changing consumption patterns are driven by factors like population growth, industrialization, rising incomes, and urbanization.
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. 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