Basic Customs Duty Exempted On Acid Grade Fluorspar

Relevance: GS-3 Indian Economy, Budget 2023

Facts About Fluorite:

• Fluorite is a popular mineral that naturally occurs in all colors of the spectrum.
• Its colors are caused by impurities, with pure fluorite being colorless.
• Fluorite is deposited by hydrothermal solutions from igneous intrusions and can form veins or replacement deposits.
• Synthetic fluorite can also be obtained as a by-product of uranium processing, petroleum alkylation, and stainless pickling.
• By state, Gujarat has the largest reserves (66%) of fluorite, followed by Rajasthan (29%), Chhattisgarh (3%), and Maharashtra (2%).

Facts About Fluorite Grades:

• Two grades of fluorite are involved in consumption and trade: acid grade (acidspar) and sub-acid grade.
• Acid grade contains more than 97% CaF2.
• Sub-acid grade analyzes 97% or less CaF2 and includes Metallurgical (60 to 85% CaF2) and Ceramic (85 to 95% CaF2) grades.
• Sub-acid grade is commonly known as Metallurgical grade (metspar).

Facts and Examples About Fluorite Uses:

1. Feedstock in the Manufacture of Hydrofluoric Acid (HF) and Aluminum Fluoride (AlF3):

• Acid grade fluorite is used as a raw material in the production of hydrofluoric acid and aluminum fluoride.

2. Production of Fluorocarbon Chemicals:

• Hydrofluoric acid is used in the production of a wide range of fluorocarbon chemicals, including hydrofluorocarbons (HFCs), hydrochlorofluorocarbons (HCFCs), and fluoropolymers.
• HFCs are used as refrigerants in air conditioning systems, HCFCs are used as solvents, blowing agents, and fire-extinguishing agents. Fluoropolymers are used in the manufacture of Teflon.

3. Replacement of Chlorofluorocarbons (CFCs):

• Due to environmental concerns, part of the chlorofluorocarbons (CFCs) have been replaced by hydrochlorofluorocarbons (HCFCs).

4. Uranium Tetrafluoride:

• Hydrofluoric acid is used in the manufacture of uranium tetrafluoride, an important ingredient in nuclear fuel and fission explosives.

5. Other Applications:

• Hydrofluoric acid is also used in stainless pickling, petroleum alkylation, glass etching, oil & gas well treatment, and electronics industry as an etcher and cleaner.

Environment Concern:

• Fluoride in Drinking Water

1. Concerns over its use
2. Linked to Fluorosis
3. Permissible limit in drinking water (1.5 mg/l)
4. Methods of Defluoridation

• Fluorine in the Atmosphere

2. Controversy over chlorofluorocarbons (CFCs)
3. Depletion of ozone layer
4. Alternative compounds: HFCs and HCFCs
5. Boost in fluorite consumption expected
6. Phasing out of greenhouse gases
7. Potential persistence for over a century.

World Reserve:

• Total world reserves of fluorite: 310 million tonnes
• Main countries with reserves: Mexico (22%), China (14%), South Africa (13%), Mongolia (7%)
• World production of fluorite in 2018: 5.90 million tonnes (9% increase from previous year)
• Principal producing countries in 2018: China (59%), Mexico (20%), South Africa (4%), Kazakhstan (2%)

Imports:

• The main sources of fluorite imports were China & South Africa (35% each), Thailand (18%), Vietnam, and Morocco (3% each).
• The main sources of aluminum fluoride imports were Mexico (33%), China (27%), UAE (20%), Indonesia (10%), Jordan (5%) and Qatar (4%).
• The main sources of hydrofluoric acid imports were China (81%) and Germany (18%).