HAMILTON, Canada 

The UN's political affairs chief warned Thursday that the surging global demand for critical minerals is intensifying geopolitical rivalry and destabilizing supply chains.

"The surge in demand for critical minerals is also fueling geopolitical competition and affecting global supply chains," Rosemary DiCarlo told a Security Council meeting on Energy, Critical Minerals and Security.

DiCarlo said the scale of the minerals economy is already vast and growing rapidly.

"In 2023 alone, the trade in raw and semi-processed minerals reached approximately $2.5 trillion," she said, noting that "this represents more than 10% of global trade."

"Demand could triple by 2030 and quadruple by 2040," she warned.

Describing the minerals boom as a potential turning point for developing nations, DiCarlo said: "This dramatic rise in demand is a generational opportunity: to create jobs, diversify economies, and promote sustainable expansion."

However, she cautioned that "mining for these minerals has been linked to human rights abuses and environmental degradation."

Emphasizing that the risks are particularly acute in conflict zones, DiCarlo pointed to the eastern Democratic Republic of Congo, where "more than 70% of global cobalt extraction" takes place, as a flashpoint.

"Control over mineral-rich areas is a major driver of violence and shapes regional political dynamics," she said, adding that "the AFC/M23 (rebel) coalition has reportedly earned more than a million dollars a month from illicit mining and smuggling" since the current crisis began.

DiCarlo further outlined three priorities for conflict-affected states: ensuring that extraction delivers "just and equitable outcomes," strengthening multilateral governance and mineral traceability to "curb illicit flows," and deploying peacemaking instruments to resolve resource disputes.

"It is incumbent on both producing and consuming countries to enact governance and regulatory frameworks to manage these resources responsibly for the benefit of all," she said.

Calling for concerted action by the international community, DiCarlo said "the fair and responsible harnessing of critical minerals can help lift hundreds of millions of people out of poverty. And it can help promote peace."

For his part, US Energy Secretary Chris Wright explained Washington's position on the critical materials.

"It is in the security interest of the United States and our allies to not overly depend on any single country for materials critical to our economies and national security," he said.

"The work we're doing today, especially on the strategic importance of critical minerals and energy, is directly tied to preventing conflict and building a world where countries can cooperate and move forward together," he said.

The US is the chair of the Security Council for the month of March.