Under-Secretary-General Addresses Security Council on Risks and Opportunities of Critical Minerals Development
Critical minerals are increasingly recognized as vital components of the modern economy, driving advancements in technology and energy transition. During a recent Security Council meeting, Rosemary DiCarlo, the United Nations Under-Secretary-General for Political and Peacebuilding Affairs, highlighted the dual nature of the soaring demand for these resources. While they present significant opportunities for development, they also pose risks of geopolitical competition and potential conflict if not managed responsibly.
Critical Minerals and Economic Growth
The demand for critical minerals such as lithium, cobalt, and nickel has surged dramatically, transforming them from limited strategic resources into essential elements for the digital economy. DiCarlo reported that in 2023, the trade in raw and semi-processed minerals reached approximately $2.5 trillion, accounting for over 10% of global trade. This growing market reflects the increasing reliance on these materials for various technologies, including smartphones, electric vehicles, and medical devices. DiCarlo emphasized that the demand for these minerals could triple by 2030 and quadruple by 2040, presenting a generational opportunity for job creation and economic diversification.
However, this rapid growth in demand is not without its challenges. The geopolitical landscape is becoming more competitive as nations vie for access to these critical resources. The potential for conflict arises if countries do not establish effective governance and regulatory frameworks to manage these minerals responsibly. DiCarlo urged both producing and consuming nations to collaborate in ensuring that the benefits of these resources are shared equitably.
Geopolitical Risks and Human Rights Concerns
The increasing demand for critical minerals has also led to heightened geopolitical competition, which can destabilize supply chains. DiCarlo warned that mining activities are often associated with human rights abuses and environmental degradation. She pointed out that over 70% of global cobalt extraction occurs in the Democratic Republic of the Congo, a region where mining practices can exacerbate governance issues and fuel illicit economies. The reliance on cobalt for batteries in smart devices underscores the urgency of addressing these concerns.
In addition to cobalt, other countries like Myanmar and Ukraine are significant sources of rare earths and lithium, respectively. DiCarlo cautioned that irresponsible mining practices in these regions could empower criminal and armed groups, further complicating the geopolitical landscape. The need for responsible governance in resource-rich areas is critical to prevent these negative outcomes and to promote stability.
Strengthening Governance and Multilateral Cooperation
The Security Council possesses various tools to address the challenges posed by the critical minerals market. DiCarlo noted that the Council has previously imposed targeted measures, including sanctions, to combat illicit trade. Panels of Experts have played a crucial role in identifying violations, tracing supply chains, and enhancing the implementation of regulations. Looking forward, she stressed the importance of ensuring that mineral extraction leads to just and equitable outcomes.
To achieve this, strengthening institutions and enhancing governments’ capacity to negotiate fair agreements is essential. DiCarlo also highlighted the need for increased multilateral and regional cooperation to improve governance and traceability in the minerals market. Utilizing UN peacekeeping tools to address resource-related disputes can help foster cooperative relationships among nations, ensuring that the benefits of critical minerals are shared more broadly and sustainably.
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