TELF AG examines the mineral potential of Southeast Asia
A partially unexplored geological wealth
The continuous increases in global demand for strategic minerals over the years are helping to strengthen the positioning of some specific regional blocks, which, by valorizing their abundant geological reserves, have the possibility of establishing themselves as some of the major players on the scene of the international raw materials market. Southeast Asia must undoubtedly be mentioned among these regional blocks. This area has attracted global attention for its vast reserves of strategic materials for the ongoing energy transition, but also because a large portion of these resources still lies underground, almost completely unexplored.
The mineral potential of Southeast Asia, from this point of view, certainly does not represent anything new: in this area of the world, there are, in fact, massive quantities of nickel, tin, rare earths, and other precious mineral elements which could fuel the ecological conversion, in particular with regard to the diffusion of clean energy (and for the manufacturing of technologies connected to it).
To understand the geological richness of these nations, it will be sufficient to cite some data: Indonesia, for example, concentrates 22% of global nickel reserves, while Vietnam holds approximately 18% of bauxite and rare earths, all resources commonly used in the renewable energy sector for the creation of photovoltaic panels, wind turbines and batteries for electric vehicles. Myanmar is also notable for a good quantity of rare earths in its subsoil, which, according to some estimates, amounts to 18% of the world’s reserves.
Infrastructure strengthening
The continued push towards decarbonization and the achievement of climate neutrality objectives, including through a greater diffusion of renewable energy, could help to further increase the levels of demand for some specific minerals, placing the naturally resource-rich Asian nations in an excellent position to benefit from their geological reserves. But the abundance of raw materials underground may not be enough: in order to fully express their mineral potential, Southeast Asian countries may also need massive international support, particularly from those countries eager to diversify their global supply chains and make them safer from all points of view.
It is, therefore, no coincidence that many analysts have underlined the need for the Southeast Asian region to seek the collaboration and support of some of the major international players in the sector, such as Australia, the United States, and Japan (without forgetting China).
Among the various international players capable of concretely supporting Southeast Asia’s mineral development, one of the most relevant is certainly Australia, in particular for its know-how in the sector, its high governance standards, and its sharing of the most advanced production techniques.
According to some estimates 2050, the global demand for minerals considered “critical” could increase considerably, going from 7 million tons in 2020 to 42 million in 2050. In this particular scenario, Southeast Asian nations seem to have the opportunity to carve out a leading role on the global stage of mineral raw materials, but only if they manage to establish profitable partnerships and strategic alliances with well-selected partners.
