How sustainable practices can drive inclusive growth in modern business

India's mining sector is on the brink of a transformative journey toward sustainability and technological innovation. As the world increasingly prioritizes sustainable development and environmental stewardship, India's mining industry must embrace these principles to ensure its long-term viability and global competitiveness. The joint report by EY and the Federation of Indian Mining Industries (FIMI) presents a comprehensive strategy for transforming the sector into a model for innovation, sustainability, and global leadership.

Evolving global and Indian mining landscapes

Globally, the mining industry is experiencing rapid technological advancements in mining, increasing demand for minerals, and a pressing focus on sustainability. The sector must align with sustainable development goals (SDGs), necessitating minimized environmental impacts and equitable benefit distribution. Significant investments, approximately US$1 trillion over the next 15 years, are required to support the energy transition and meet global carbon emission targets. This immense financial commitment underscores the importance of sustainable practices and innovative technologies in shaping the future of mining.

In India, the mining sector is rich in diverse minerals but faces substantial challenges, including stringent environmental regulations and slow technological adoption. However, initiatives like 'Atmanirbhar Bharat' aim to enhance self-reliance by maximizing domestic mineral utilization and boosting coal production. The initiative emphasizes reducing import dependency and promoting indigenous production, which can be pivotal in addressing the sector’s challenges.

Digital transformation in mining is essential for improving efficiency and sustainability. Technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), and Machine Learning (ML) can revolutionize mining operations, enabling predictive maintenance, real-time monitoring, and data-driven decision-making. These advancements not only enhance productivity but also ensure safer and more sustainable mining practices.

Sustainable mining in India is increasingly vital, driven by environmental, social, and economic imperatives. The industry is focusing on reducing greenhouse gas emissions, adopting renewable energy in mining, and integrating circular economy principles. Companies are investing in green energy solutions and improved waste management to align with global standards, ensuring the sector's long-term viability and social license to operate.

Environmental, Social, and Governance (ESG) principles are becoming central to mining operations. Companies strive for higher standards of environmental stewardship, social responsibility, and governance. Transparent reporting, ethical business practices, and active community engagement are critical for managing risks, enhancing reputation, and ensuring regulatory compliance. These principles not only improve operational efficiency but also build trust and credibility among stakeholders.

Transforming mining operations through advanced automation and strategic mineral investments

Mining automation in India is revolutionizing the sector by enhancing operational efficiency, safety and productivity. The adoption of digital technologies improves safety by reducing human exposure to hazardous conditions. Remote monitoring and control of mining operations minimize the need for personnel to be present in dangerous environments, thereby reducing the risk of accidents and improving overall safety standards.

The demand for new minerals, particularly those critical for renewable energy technologies and electric vehicles, is rising. Strategic investments in minerals like lithium, cobalt and rare earth elements are crucial for supporting the global energy transition. These minerals are essential components in batteries and other technologies that drive the shift towards a low-carbon economy.

Promoting sustainability through zero waste mining and collaborative innovation

Zero waste mining aims to minimize waste generation and maximize resource efficiency through innovative practices, creating a circular economy within the sector. By reprocessing and reusing waste materials, the industry can reduce its environmental footprint and enhance sustainability. For example, the extraction of valuable minerals from mining waste not only reduces waste but also generates additional revenue streams.

Collaboration, innovation, and eco-friendly mining practices are key to the sector’s long-term viability and environmental stewardship. By embracing these strategies, India’s mining sector can achieve sustainable growth, setting new benchmarks for excellence on the global stage. The report emphasizes the need for a collaborative approach involving government, industry and communities to drive the transition towards sustainable and technologically advanced mining practices.