MINING AHEAD!

The emerging demand for critical minerals, coupled with the continued growth prospects of iron ore and coal is expected to drive the growth of Indian mining sector in the coming years. Construction Times presents the emerging trends.

India is the second-largest producer and consumer of coal globally, and the country surpassed the one-billion tonne mark in coal and lignite production in the fiscal 2024. As per the latest reports, India is the fourth-largest producer of iron ore with a production of 274 million tonnes in FY24. Technology has played a major role for the miners in achieving these figures over the years. However, there is still way to go for the Indian mining sector for better efficiency and sustainability by adopting advanced technologies and innovative solutions.

Emerging trends

India’s mining sector is undergoing continuous transformation, supported by policy reforms, technological innovations, and a strategic focus on critical minerals essential for various industries.

Recognizing the strategic significance of critical minerals such as lithium, cobalt, and nickel, the government has initiated exclusive auctions for mining leases and composite licenses covering 24 critical minerals. This move aims to enhance exploration efforts and reduce India's reliance on imports.

The Union Budget for 2025-26 emphasizes modernizing the mining sector through key policy and regulatory reforms. Notable initiatives include the introduction of a State Mining Index, a Policy on the Recovery of Critical Minerals, and the standardization of mining practices for minor minerals. These measures aim to enhance efficiency, transparency, and sustainability in the sector.

Technology trends

The adoption of new technologies is significantly propelling the growth of India's mining industry by enhancing operational efficiency, safety, and sustainability. According to Vinay Kumar, Director (Technical), NMDC Limited, technological advancements such as automation, data analytics, and digital infrastructure are transforming traditional mining practices, leading to increased productivity and reduced environmental impact. NMDC is at the forefront of this technological shift as he adds, “The company has established a 'Transformation and Innovation' vertical to spearhead technological advancements in mining. This strategic initiative aims to propel NMDC into a future marked by advanced technologies and enhanced operational efficiencies.” NMDC is leveraging pioneering technologies such as drone-based exploration, vision enhancement systems, transport surveillance, and rapid wagon loading mechanisms.

Arun Misra, CEO & Whole Time Director, Hindustan Zinc, adds, “Hindustan Zinc is at the forefront of integrating advanced technologies to enhance efficiency, safety, and sustainability in its mining operations. Initiatives include the deployment of battery-powered electric vehicles (BEVs) to replace traditional diesel vehicles, implementation of Mobile Miner technology, and the use of drones, IIoT sensors, AI/ML, and cloud technology to achieve our 'Mines of the Future' vision.” 

The demand for mining equipment is set to grow in the coming years as Sharwan Agnihotri, Head – Mining & Export Business, HD Hyundai CE (India), highlights, “India still imports a significant amount of iron ore, highlighting the growing need for domestic mining, which, in turn, will drive demand for mining equipment. This sector requires large excavators above 50 tons, and we are evaluating the feasibility of entering this segment. At the same time, we aim to strengthen our presence in the below-50-ton category by offering greater value to customers and expanding our market share.”

Green initiatives in mining

Mining is perhaps one of the most impacted sectors by the environmental regulations due to the amount of pollution and other ecological issues that may arise out of mining activities. So, it is imperative for the mining companies to adopt new methods and latest technologies that minimise the environmental impact and various kinds of pollutions due to mining activities. Use of advanced equipment and digital technologies can reduce the impact of pollution in mining. Companies are investing in green energy solutions and improved waste management practices to align with global environmental standards. According to Kumar, the integration of circular economy principles, such as zero waste mining, is becoming increasingly vital, aiming to minimize waste generation and maximize resource efficiency. 

Challenges and opportunities

The mining industry is currently facing several challenges that impact its operations and long-term sustainability. These challenges need to be addressed through a multifaceted approach, integrating technological advancements, strategic planning, and effective management practices. Indian mining industry faces significant challenges in mineral exploration, despite India's vast geological potential, exploration activities have been limited. The government through the recent mining policy reforms has tried to scale down these challenges, encouraging private investment and modernizing the exploration process.

In spite of these challenges, mining is expected to excel in the coming years due to various policy measures taken by the government and the growing need for minerals to meet the demands from manufacturing and infrastructure sector. Specifically, strategic significance of critical minerals in the upcoming scenario will play a major booster in the mining sector. These positive trends coupled with the increased adoption of advanced technologies will pave the way for a transformation in Indian mining sector.

Siddharth Chaturvedi, General Manager, Marketing, Tata Hitachi, observes, “Mining is experiencing significant growth, and it plays a pivotal role in meeting the goals set for power generation. Steel, a crucial component in infrastructure, depends on iron ore, and as the demand for steel increases, mining in iron ore will continue to expand. Similarly, cement, an essential ingredient in infrastructure and concrete, requires limestone, driving the growth of mining in that sector as well. For infrastructure to thrive, industries such as steel, cement, iron ore, and aluminum must grow in tandem. There's no question that these industries must expand to support the nation's infrastructure development.”

These positive trends coupled with the increased adoption of advanced technologies will pave the way for a transformation in Indian mining sector.