INP-WealthPk

Pakistan’s Rare Earth Elements Await Exploitation

February 17, 2022

By Faiza Tehseen ISLAMABAD, Feb. 17 (INP-WealthPK): Pakistan’s economy can hugely benefit from the exploitation of Rare Earth Elements (REEs), which the country possesses in huge quantities. As per geochemical analysis, Pakistan has at least 12 out of 17 REEs in varying potential. However, the country occupies only 2-5% share in the overall business scale of REEs. It is estimated that Pakistan has about $50 trillion worth of deposits of rare earth elements in its natural crypts. It is to note here that global REE reserves are estimated at 116 million tonnes. Deposits of REEs in Pakistan are found in Khyber Pakhtunkhwa, Gilgit-Baltistan and Balochistan, especially along the China-Pakistan Economic Corridor route. An in-depth exploration study is, however, badly needed to explore the real quantitative size of REEs in the country. The Cumulative Annual Growth Rate of REEs is forecast to increase by 4% till 2027 worldwide. During 2021, the consumption of REEs was around 150 kilo tonnes. For the said period, market is segmented by elements like cerium, neodymium, lanthanum, dysprosium, terbium, yttrium and scandium, and other elements for multiple industrial applications. Geographical sources from Asia Pacific, Europe, South America and Africa were considered for the forecast. REEs are a part and parcel of multiple industries like ceramics (6%), glass (7%), phosphorous (2%), polishing (12%), metallurgy (8%), batteries (8%), catalysts (245%), magnets (23%) and others (10%). China is the major supplier of REEs globally, fulfilling 85% of multisectoral needs. United States imported nearly 80% of rare earth elements from China in 2019. In near future, Asia Pacific region is going to be the main supplier of REEs. As Pakistan lacks funds and technical know-how to exploit its potential in REEs, it can let other countries do that. Taj Muhammad, a geologist at the Pakistan Minerals Development Centre (PMDC), explained to WealthPK in an interview that Pakistan contains vast amounts of earth treasures, but their exploration is nowhere to be seen. “If exploited to their full potential, REEs can turn our economy around.” Taj Muhammad said though the departments concerned have done proper documentation of these elements like collecting details of the dominant REEs, their quantity, total deposits, mining feasibility patterns, exploration activities are yet to be launched. Dr Sajjad Ahmad, Director General of Geological Survey of Pakistan (GSP), told WealthPK that as REEs are the basic energy-providing ingredients in electric cars, their exploitation can truly aid Pakistan’s efforts to gradually increase the number of electric vehicles on the roads. “REEs’ other uses are immense as they are used in electronics, automotive, aircraft engines, specific batteries, magnets, lasers, high-strength alloys, super conductors, storage disks, optic fibres, defence, signal amplifiers, etc.” The GSP director general said Prime Minister Imran Khan’s commitment to tapping the mineral potential of Pakistan and encouraging the minerals’ local processing for value-addition will also go a long way towards exploiting the country’s REE wealth.