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Home Home - Analysis
Arctic Minerals - New Frontier in Resource Scarcity

Arctic Minerals – New Frontier in Resource Scarcity

Anela DoksoBy Anela Dokso25/02/20252 Mins Read
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The Arctic region, known for its harsh environment, is emerging as a critical area for mineral production, responding to the increasing global demand for essential minerals supporting the low-carbon energy transition.

The Arctic contributes notably to the global supply of several critical minerals. Most prominently, it provides over 10% of global palladium, platinum, and nickel production. These minerals are essential for various high-tech applications, including the manufacturing of catalytic converters and electronics. The geographical expanse of the Arctic, largely encompassing parts of Russia and Canada, significantly influences its potential to produce critical minerals.

A primary consideration for the Arctic’s mineral potential is its geography—characterized by remote locales, extreme weather, and permafrost—which complicates extraction and reduces feasibility. Infrastructure development in the region is costly and time-consuming, deterring rapid expansion of mining activities. Existing mines and reserves, predominantly located in Russia, account for much of the Arctic’s contribution to mineral production. Russia’s Arctic regions are especially crucial due to extensive mining operations that inform the country’s role as a dominant supplier of minerals such as nickel and platinum group metals.

Russia remains the dominant producer in the Arctic, with the largest operations for critical minerals like nickel, platinum, and palladium. Reserves in Russian territories suggest substantial growth potential, although geopolitical considerations and infrastructural challenges pose hurdles to development. Canada provides significant contributions through nickel mines, while Finland and Sweden have emerged as notable producers of chromium, phosphorus, and rare earth elements, reflecting the broader mineral stratification within Arctic nations.

Future Mineral Production

For the Arctic’s contribution to mineral supply to grow substantially, several conditions must be met. Advances in technology, increased capital availability, and supportive state policies are pivotal. Furthermore, environmental and social factors, including indigenous rights and ecological preservation, necessitate careful navigation to advance the region’s mineral production goals.

Global competition and market demands will significantly dictate the pace and scale at which Arctic mineral resources are developed. The current projections suggest modest additions to the global mineral supply by the Arctic in the immediate future, with substantial contributions potentially emerging beyond 2034, contingent on geopolitical, economic, and technological developments.


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