BRICS 2024 Finale: New Members, New Currency against U.S. Dollar, and India’s Wildcard – Ep 3
(Feat. Rare Earth Niobium, China Xi Jinping, Russia Putin, India Modi, Brazil and Middle East)
Following Episodes 1 and 2, this is the final chapter of the BRICS Trilogy.
147. India starts causing trouble.
148. In 2023, India overtook China to become the world’s most populous country.
149. India has a foot in both camps, being part of BRICS (led by China and Russia) as well as U.S.-backed groups like QUAD and the IPEF (Indo-Pacific Economic Framework).
150. India has traditionally followed a non-aligned foreign policy.
151. India is trying to get the best of both worlds by seeking practical benefits from both BRICS and Western alliances.
152. Summits like BRICS are usually just for show, with outcomes decided in advance. Leaders mostly attend for ceremonial purposes.
153. India opposed the first stage of establishing the yuan as a common BRICS currency, which created tension at the summit.
154. As a result, no agreement was reached on a common currency, and the August 2023 BRICS summit concluded with only the addition of new members.
155. Putin wasn’t happy.
156. He canceled his in-person appearance and participated in the BRICS summit via video call instead.
157. Xi Jinping also expressed dissatisfaction with the summit’s pre-agreed outcomes.
158. He skipped the closing ceremony and sent his Commerce Minister to deliver China’s statement.
159. The 2023 BRICS summit ended without any significant achievements, largely due to India’s active role in opposing key decisions.
160. There’s a rare earth metal called niobium.
161. Niobium is used to strengthen steel.
162. By adding just 40 grams of niobium per ton of steel, the strength of the entire batch increases fourfold.
163. Among the 17 rare earth elements, more than 90% of the world’s niobium comes not from China but from Brazil.
164. Brazil’s near-monopoly on niobium is due to its fortunate soil composition.
165. In contrast, China’s rare earth elements are mostly found in hard rocks.
166. To extract these elements, the rocks are blasted with explosives, then dissolved in strong acids like hydrochloric acid.
167. The resulting sludge separates into layers, and after further processing, a mixture of rare earth elements and acids remains.
168. When the acid is evaporated, the rare earth elements are left behind.
169. Producing rare earth elements this way releases huge amounts of pollutants, including sulfuric acid, hydrochloric acid, toxic gases, and waste rock.
170. On average, only about 0.2% of the rock contains rare earth elements, meaning 99.8% of the material becomes waste, called tailings.
171. Tailings often contain residual acids like hydrochloric and sulfuric acid, which are dumped in rivers or left on hillsides, causing water pollution.
172. To produce 1 ton of rare earth elements, about 75,000 liters of acidic wastewater and 12 million liters of toxic gas, including sulfuric and hydrofluoric acid, are generated.
173. The world’s largest rare earth production site, Baotou in Inner Mongolia, has a 230 million-ton artificial lake called Weikuangba to store waste from rare earth mining.
174. Over 56 years, toxic chemicals have accumulated in the lake, and the pollution is getting worse.
175. Just 10 kilometers from Weikuangba flows the Yellow River, known as China’s lifeblood.
176. Some speculate that if Taiwan were attacked, the target wouldn’t be the Three Gorges Dam, but the barrier between Weikuangba and the Yellow River
177. If the toxic water from Weikuangba enters the Yellow River, China’s most important water source would be ruined.
178. The process of blasting and dissolving rocks to produce rare earth elements results in massive amounts of pollution and wastewater.
179. In Brazil, niobium is found in the Araxá region.
180. The soil in Araxá is loose, and niobium is scattered on the surface.
181. Because the niobium is on the surface, there’s no need for blasting or breaking apart rocks to extract it.
182. Workers simply use excavators to scoop the loose soil and send it on conveyor belts to the refinery.
183. Araxá’s niobium reserves are large enough to supply the world for about 200 years, making it impossible for China or other countries to compete.
184. Brazil is hoping to turn its control of 90% of the world’s niobium production into major profits.
185. While China holds 37% of global rare earth reserves, Brazil ranks second with 18%.
186. Saudi Arabia finds it hard to fully abandon the petrodollar system because of its deep ties to the U.S.
187. The U.S. has a history of not standing idle when its core interests are threatened, regardless of whether Democrats or Republicans are in power.
188. While China and Russia appear to be in agreement, other BRICS members have different priorities, which will shape the 2024 BRICS summit.
189. On October 18, 2024, at a forum in Moscow, Putin emphasized that BRICS nations’ GDP has already surpassed that of the G7.
190. Putin highlighted that in 1992, the G7 accounted for 46% of global GDP, while BRICS held just 17%.
191. By 2023, BRICS had overtaken the G7, with BRICS at 37% and the G7 at 29%, and he predicted this gap would widen further.
192. He claimed that the BRICS nations have reached a point where they can achieve economic self-sufficiency.
193. The 2024 BRICS summit, held in Kazan, Russia, from October 22 to 24, concludes today, with Russia as the host.
194. In July 2023, Putin participated in the Shanghai Cooperation Organization (SCO), led by China, and Xi Jinping is set to attend the BRICS summit in Russia.
195. The two leaders will meet again just three months after their last encounter, and during the SCO summit, Putin declared that Sino-Russian relations are at their best in history.
196. With both leaders confidently attending the 2024 BRICS summit, it will be interesting to see what agreements are reached.
Alphazen Insights
This BRICS summit presents two main storylines. First, the new members—Saudi Arabia, Iran, and the UAE—bring fresh dynamics, and any statements on the Middle East could grab global attention.
But the real focus is on the progress toward a BRICS common currency. Will Saudi Arabia and the UAE, both close to the U.S., support this initiative or play it safe? And then, there’s India—the ultimate wildcard. Will it disrupt the talks again? India’s unpredictable role is sure to keep things interesting.
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