North Korea’s Mineral Deposits
- Dec 12, 2024
- 2 min read
By: Jimin Oh
For centuries, North Korea made headlines for its enigma, political tensions, and its totalitarian regime. However, under this surface holds treasure that can possibly reshape North Korea’s economic scene: its mineral deposits ranging from rare to abundant..
North Korea is estimated to possess over 200 minerals worth economic value, including tungsten, graphite, coal, as well other rare metals such as gold and silver. According to Korea Resources, North Korea has 5 billion tonnes of iron ore, and the estimate for all its mineral deposits comes to a total of $2.4 trillion, offering a high potential for economic development.
Most notably, North Korea possesses an abundance of rare earth elements (REEs) such as neodymium, dysprosium, and praseodymium, all commonly used for the production of magnets, automotives, electronics, and clean energy. According to The Diplomat, one city of North Korea is estimated to possess six times more of these metals than China – the world’s largest producer of REEs today. The access to these REEs could impact how these elements are distributed worldwide and alter North Korea’s economic situation.
Despite the economic success these minerals could bring, North Korea faces obstacles that hamper bringing these deposits into economic circulation. Geopolitical tension between North Korea and the world makes it difficult for the country to engage in global trade and collaborations. Furthermore, mining REEs often entail environmentally damaging processes, and access to efficient technology to extract these minerals is critical. However, North Korea’s modern technology is not effective enough to mine such resources. North Korea currently lacks the proper infrastructure and advanced machinery, and developing these may not be feasible due to economic restrictions. Additionally, without the expertise of professionals to assess the geography of the land, it becomes difficult to extract these resources sustainably.
Despite this, recent talks with North Korea and other nations–especially with South Korea and the United States–have sparked interest in potentially making these deposits more accessible. Reports suggest that collaborative efforts between North Korea and foreign investors have been undertaken, in which many of these foreign companies are reaching agreements with North Korea to initiate mining projects. However, some foreign investors and companies continue to remain hesitant due to North Korea’s political constraints.
North Korea’s mineral deposits have the potential for economic success, and if unlocked, could provide great resources to the development of new advanced technology. However, the process firstly involves a complex network of problems that would have to be solved before any thoughts of economic transformation could prosper.
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