The global race for resources in the Arctic

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The global race for resources in the Arctic

Monday, 17 March 2025 | B K Singh

The global race for resources in the Arctic

The Arctic is emerging as a critical frontier in the race for mineral wealth, fossil fuels, and geopolitical dominance. As ice continues to melt at alarming rates, new trade routes are opening, intensifying competition among global powers

There has been increasing competition and conflict in the Arctic region for the exploitation of mineral wealth and fossil fuels. It has environmental consequences such as pollution, habitat destruction, impacts on wildlife and indigenous communities. In the warming world, the melting of ice in the Arctic Sea has been opening many new routes for trade in the region and the use of high-fuel oil in ship propulsion is becoming increasingly common. Diesel vehicles, open biomass burning and the use of high-fuel oil for engine propulsion in shipping are the largest global sources of black carbon, which consists of pure carbon in many linkages and is produced by incomplete combustion of fossil fuel and biomass by wildfires.

It can generate sufficient energy only next to carbon dioxide and Its proximity around ice/ snow sheets and glaciers of Arctic and Antarctica regions can extend the period of snow melting and can result in environmental catastrophes caused by the melting of glaciers and the rise in sea level. Eventually, it contributes to the warming of the planet.

South of the treeless Arctic region, we have the world’s largest forests known as boreal forests covering large portions of Alaska, Canada, Scandinavia and Siberia. These forests have stored huge quantities of carbon and have protected the planet from further warming. Forests are rich in biodiversity and house numerous species of mammals, fish, plants of coniferous and broad leaved species, insects and birds. Studies have revealed that the warming of Arctic and Antarctic regions is three to four times higher than that of equatorial and tropical regions. Boreal forests are thus experiencing more warming than the global average, which in turn is adversely impacting its growth and regeneration.

The northern part of the forests is slowly expanding towards the Arctic region where ice has melted. Studies in Alaska’s Brooks Range have also found that spruce trees have grown and established north of the tree line. Once inaccessible, the southern part has been kept open for commercial logging. The Anthropogenic pressure and wildfires have been causing the degradation of forests considerably. The gain in northern boreal forests is far too low as compared to the loss in the south.

Nearly 15 Million hectares of Canadian forests, constituting approximately four per cent of the geographical area of the country burned in 2023 and researchers found that it released 2371 megatons of carbon dioxide in the atmosphere. This caused a jump in Canada’s ranking of global emissions from 11th in 2022 to fourth in 2023, behind China, the US and India. The new trade routes due to melting ice in the Arctic are seen as an opportunity, which in turn boosts the use of high-fuel oil in ship propulsion causing further warming.

Portuguese-flagged Solong cargo ship collided recently with MV Stena Immaculate in the North Sea off eastern England setting both vessels ablaze and despite great firefighting efforts, it took two days to control the blaze. It caused oil leakage and such incidents have severe environmental consequences, especially threatening aquatic biodiversity.

Ever since February 24, 2022, Russian aggression in Ukraine began, decade-long cooperation between Russia and other Arctic countries on biology and nature conservation has been paused. The suspension of data across the boundary has made it difficult to understand how wildlife and ecosystems are changing during unprecedented warming. 2023 has been the warmest year recorded on the planet and 2024 has further broken this record and registered an average rise in global temperature by 1.56 degrees Celsius above the preindustrial temperature.

Data are also not available to find the impact of permafrost thaw that contains two and half times more carbon than what is already available in the atmosphere.    

The critical and rare earth minerals have applications in over 200 high-tech consumer products namely electric and hybrid vehicles, computer hard drives, flat screen monitors and TVs, cellular telephones, and defence applications like electronic displays, guidance systems, lasers, submarines, radars sonar systems etc.  The quantity used in some of the applications is insignificant, yet it is critical for the functioning of the technology. The magnets made have a relatively insignificant volume of the element as compared to the volume of the product but it is needed for the functioning of spindle motors, and voice coils of desktops and laptops.

Neodymium magnets are made of Neodymium, iron and boron which have the highest strength and can withstand 230 degrees Celsius temperature. Magnets are used in automobiles, computer hard disks and digital cameras. Lanthanum is used for digital and cell phone cameras and also in petroleum refining and steel making. Erbium is used in optical fibre and laser repeaters. Cerium is used in water purifiers and its alloys with other elements are useful for making catalytic converters. Europium, Terbium and Yttrium are used in phosphors that emit luminescence.

The traditional mining of these elements was labour-intensive; with lower wages and duly relaxed environmental laws, China proceeded and developed the infrastructure for extraction and processing of the minerals in a big way leaving the US far behind. China built mines to magnet industries and high-tech countries like the US and Japan had to depend on it. The territorial conflict between China and Japan in 2010 led to China using it as a weapon and putting an embargo on the sale of the minerals to Japan. China dominated the supply chain and even today major chunk of these elements mined outside China also continue to be shipped back to China for separation, refining and magnet production. To bring the US back to dominate the supply chain of rare and critical minerals Donald Trump in his second term as US President has moved to rename the Gulf of Mexico as the Gulf of America, expressed taking over the Panama Canal from Panama and purchasing Greenland from Denmark for strategic reasons.

He has also vowed to end Russian aggression in Ukraine and stop the years-old war early. US Vice President D Vance asked why Ukraine was not thanking the US for billions of dollars in tax-payer-funded aid. Trump also repeatedly brought out that the US has provided $350 Billion worth of defence equipment during the last three years to counter Russian aggression, how Ukraine would pay it back? Though Ukraine President Zelensky was initially hesitant, he has come forward to sign the rare earth deal with the US to pay back the military aid already provided by the Biden administration. Greenland has voted for the central right democratic party vocal against Trump.

The Arctic island holds large reserves of critical and rare earth minerals. It is also home to a US airbase and straddles a strategic route to the North Atlantic. Though Greenland wants independence, Trump has been outspoken about his desire to control the island. In his address to Congress recently he said, “he thought US is going to get Greenland one way or the other.”

In an exclusive conversation with NATO’s Secretary General recently, Trump reiterated that Greenland would be annexed to the US. It is an island of 56,000 people, whose ancestors were colonized 300 years ago by Denmark. Since 2009, the island has been on the path to independence and Denmark controls only foreign and defence policies. Trump has an eye on Greenland’s oil and rare earth resources. 

All these moves in the Trump 2.0 regime are to gain the upper hand in supply chain dominance of rare earth minerals. Russia is also expanding exploration and extraction of oil and gas in Western Siberia and opening new trade routes by cutting the ice, yet to melt in the Ocean.  The race in the Arctic region will surge greenhouse gas emissions at an unprecedented scale.

(The writer is a retired Principal Chief Conservator of Forests, Head of forest force, Karnataka. Views expressed are personal)

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