UPSC Prelims 2025 Q79: Resource-Rich Countries — Explained
Consider the following pairs:
(Country : Resource-rich in)
I. Botswana : Diamond
II. Chile : Lithium
III. Indonesia : Nickel
In how many of the above rows is the given information correctly matched?
- Only one
- Only two
- All the three
- None
Answer: (c) All the three
Statement-wise explanation
- I: correct — Botswana is one of the world's top diamond producers. USGS Mineral Commodity Summaries 2025 puts its gem-quality output at about 18 million carats in 2024, second only to Russia's 21 million carats by volume, and it is usually ranked first by value. Its main mines, Jwaneng and Orapa, are run by Debswana, a joint venture between the Botswana government and De Beers.
- II: correct — USGS (2025) gives Chile the largest lithium reserves in the world at 9.3 million tonnes, out of a world total of about 30 million tonnes. Chile was also the second-largest producer in 2024 at about 49,000 tonnes, behind Australia's 88,000 tonnes. The lithium comes from brine in the Salar de Atacama, and Chile is part of the 'Lithium Triangle' with Argentina and Bolivia.
- III: correct — Indonesia is the world's largest nickel producer. USGS (2025) estimates its 2024 mine output at 2.2 million tonnes out of a world total of 3.7 million tonnes, which is close to 60%. It also holds the largest reserves, at 55 million tonnes. Most of this is laterite nickel from Sulawesi and Halmahera.
How to eliminate
This question mostly tests whether you know the facts, but the wording helps. 'Resource-rich in' is a loose claim. A pair is correct if the country is a major holder or producer of the resource; it does not have to be ranked first. All three pairs are textbook associations: Botswana–diamonds (Jwaneng, De Beers), Chile–lithium (Atacama, Lithium Triangle), Indonesia–nickel (EV-battery supply chains, ore export ban). If you are sure of any two, the question becomes 'is the third a trap?' UPSC's usual trap is to swap in a country's other famous resource, or a neighbour's: Chile with copper, Bolivia or Argentina with lithium, the Philippines with nickel, South Africa with diamonds. None of the three pairs here is swapped, so there is no reason to doubt any of them. Facts to remember: Botswana is No. 1 in diamonds by value, Chile has the largest lithium reserves, and Indonesia is No. 1 in both nickel output and nickel reserves.
Know more
Resource-rich countries and the critical-minerals map
Prelims often pairs a country with the resource that defines its economy. Since about 2022 the focus has moved to critical minerals, which are needed for batteries and clean energy. Lithium and nickel both go into lithium-ion cathodes, which is why these pairs are now topical.
| Country | Resource | 2024 position (USGS 2025) | Key area |
|---|---|---|---|
| Botswana | Diamonds | ~18 Mct gem output; 2nd by volume after Russia, top by value | Jwaneng, Orapa (Debswana) |
| Chile | Lithium | Largest reserves (9.3 Mt of ~30 Mt); 2nd in output (49 kt) | Salar de Atacama brine |
| Indonesia | Nickel | Largest output (2.2 Mt of 3.7 Mt) and reserves (55 Mt) | Sulawesi, Halmahera laterites |
Other pairings that come up in questions:
- Lithium: Australia leads output, mined from hard-rock spodumene. Argentina and Bolivia hold large brine resources.
- Nickel: the Philippines, New Caledonia and Russia are the next-largest sources.
- Diamonds: Russia, Canada, Angola and South Africa. India's Surat cuts and polishes most of the world's diamonds.
- Chile is also the world's largest copper producer. Indonesia is a major exporter of coal and palm oil.
Policy angles:
- Resource nationalism: Indonesia banned nickel-ore exports in 2020 so the ore would be processed at home. Chile's 2023 National Lithium Strategy gives the state a larger role.
- Resource curse: Botswana is the standard counter-example. It used diamond revenue, managed through Debswana, to become a middle-income country.
- India's link: India imports almost all of its lithium and nickel. KABIL is looking for lithium assets in Argentina, Chile and Australia. The National Critical Mineral Mission was approved in January 2025. India is also the world's main diamond-processing hub and chairs the Kimberley Process in 2026.
In the news
In 2024–25, critical minerals were a major policy topic in India. The Cabinet approved the National Critical Mineral Mission on 29 January 2025, and KABIL was looking for lithium assets in Chile and Argentina. Indonesia's President Prabowo was the chief guest at Republic Day 2025, which kept Indonesia, and its dominance in nickel, in the news.
NCERT Concepts to Revise
- Lithium Triangle: Pair II is about Chile. The Lithium Triangle tells you where Chile sits in the world's lithium geography.
- Atacama Desert: Knowing what lies under the Atacama's salt flats helps you judge Pair II.
- Critical minerals: Lithium and nickel in Pairs II and III are critical minerals, which is why this topic was in the news in 2025.
- Resource curse: Botswana in Pair I is the usual case study when the resource curse comes up in questions.