The
mining sector in
Jordan is a cornerstone of the national economy, accounting for 19 percent of
Jordan's total exports. In 2019, the sector made up about 7.7 percent of the
Kingdom's GNP — a contribution that is set to increase to 11 percent by 2025.
اضافة اعلان
In 2022, revenues of
the mining sector increased by 120 percent, equivalent to JD845.4 million
($1.192 billion) compared to the same period in 2021.
In Jordan, the
mining industry has competitive advantages. There are abundant natural
resources, the location is favorable, and the Kingdom can offer highly skilled
labor, infrastructure, and political stability.
A budding industryThe global green
mining market is expected to grow significantly in the coming years, with many
major mining companies prioritizing sustainability. And seeing as Jordan has
been ranked as the world's sixth-largest producer and second-largest exporter of
phosphate and its fourth-largest producer and second-largest exporter of
potash, it should also consider the principles of green mining.
In Jordan, the mining industry has competitive advantages. There are abundant natural resources, the location is favorable, and the Kingdom can offer highly skilled labor, infrastructure, and political stability.
The Kingdom needs a
broad strategy and committed legal reforms that set the direction for the
sector and demonstrate the government's focus on scaling up the mining sector
to play a more prominent role in the economy. These strategies must include
considerations of ownership and production, impact assessments on local
communities and ecosystems, and approaches that avoid resource depletion
through an effective circular economy.
Globally, the green
mining market is expected to grow from $11.0 billion in 2022 to $17.6 billion
by 2027. By 2032, it is expected to reach $27.76 billion at a compound annual
growth rate of 9.9 percent.
Not only does green
mining increase a country's ability to benefit from its
natural resources economically, but it also relies on newer, more eco-friendly technologies,
practices, and policies to reduce the environmental footprint of mining and
ensure that minerals are produced and supplied responsibly and ethically.
Global market factorsHowever, it is not
just Jordan that needs to pay attention to the shift toward green mining. The
increasing demand for clean energy technologies means a significant increase in
the production of minerals such as lithium, cobalt, and graphite.
Many factors
affect the market, including the Russia–Ukraine crisis and China's dominance in
the minerals supply chain. China's ascendancy is especially evident on the
processing side. According to International Energy Agency,
China accounts for
almost 90 percent of the processing of rare Earth, more than 60 percent of
cobalt, and nearly 60 percent of lithium.
The
World Bank estimates that the production of these minerals could increase by nearly 500
percent by 2050 to meet this demand. Meanwhile, the world will need more than 3
billion tonnes of green minerals and metals for solar photovoltaics, batteries,
electric vehicle motors, wind turbines, fuel cells, and nuclear reactors to
achieve a below-2°C future.
Not only does green mining increase a country's ability to benefit from its natural resources economically, but it also relies on newer, more eco-friendly technologies, practices, and policies to reduce the environmental footprint of mining
A deeper
understanding of the risks arising from the imbalance between the supply and
demand of critical minerals and the implications of these risks is necessary
and a step toward action.
Geopolitical tension
will increase resource nationalism, reverberating in more restrictive trade and
regulatory policies, limiting access to materials to some countries, and
fragmenting the global economy.
For example, the
amount of lithium required in 2050 for low-carbon energy systems is estimated
to be 965 percent more than the total global lithium production in 2017. Other
minerals, like cobalt,
copper, cadmium, and rare earth elements, will also be
in great demand.
Demand for the
essential commodities for electrification and the renewable-energy-based
economy is growing and, with it, their prices.
The Bank of America,
in a global research report, estimates an investment of $150 billion a year is
needed in global mining to produce the critical minerals needed to transition
to net zero.
Current momentum
So, what is
propelling the market during the forecast period to move toward green mining?
Government regulation and consciousness toward battling climate change and
global warming is a main reason.
But, the escalation
in interest in the context of energy-efficient alternatives and affiliated
technology globally also offers momentum for the market's growth. The World
Resources Institute found that each $1 million invested in green sectors
creates much more employment than in "unsustainable" industries, like
mining.
Investment in
ecosystem restoration creates 3.7 times as many jobs as oil and gas production,
and between 2020 and 2021, employment worldwide in the sector grew by 700,000,
reaching 12.7 million jobs.
So, as the world
becomes more conscious of the need to combat
climate change, countries like
Jordan must consider not only the economic benefits of their mining sector but
also the impact it has on the environment and communities.
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