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Sustainable Mining for the Future

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ICR presents a case for responsible reporting across the mining supply chain.

The importance of mining, in times of sustainability reporting, is rising in stature. The rise of mining output is not waning but growing and the share of construction mineral ore in all of this still remains close to 50% of the entire extractive output. 

It is estimated that the global combined extractive output in mining is going to grow to 167gt in 2060, from the 2019 statistics of 92 gt. Out of this 27% is biomass, 15% is fossil fuel, 9% is metal ores and the balance is non-metallic minerals, bulk of which goes to the construction industry. While sustainability considerations would be driving most of the future growth, most notably, metals will be needed for electric storage batteries (eg. for electric cars), which require aluminium, cobalt, iron, lead, lithium, manganese and nickel but also for other relevant technologies, including those used for the production of wind turbines and solar panels; far greater amounts of metals are needed for clean energy production than the traditional energy production from fossil fuels. Thus the growth in metals for sustainability will offset the drop in extraction that would stem from growth in recycling. 

An overview of the mining sector

Mining for non-metallic minerals, from where the construction industry sources all its inputs, perhaps falls under the ASM (artisanal and small-scale mining), which has still remained labour intensive and suffers from safety issues all across, the developed world and developing, all have the similar challenges to grapple with. Efforts to increase automation, mechanisation and digitisation also come with the fair share of demands from the local community, which can hardly be neglected. While Large Scale Mining (LSM) is moving towards mechanisation and automation with minimum labour resources, the focus is increasingly shifting towards partnerships on supply chains that connect local procurement partners and the community at large to the external markets. 

One of the significant developments has been the shift towards battery-electrification of mobile equipment in the mines to the complete automation of all mining equipment with Net zero targets in focus. There are man-less mines in existence already where underground operations are being orchestrated through battery-electric equipment remotely connected through control systems. The partnerships between mining companies and the mining equipment OEMs is ensuring a smooth transition in this area that will take the use of fossil fuels in mines to a negligible proportion (mostly as consumables) in the near future. This however calls for a skills inventory crossover, that would need larger hand holding with the local government and other institutions as well as the local communities.

Sustainability in mining

The goals of sustainable development in mining would include transparency as a key theme between a large pool of actors that constitute and connect the upstream to the downstream supply chain partners (supplier, trader, smelter refiner, component producer, contract manufacturer, end user, intermediaries, agents and transporters). This would also entail collaboration with governments and across the supply chain to support a circular economy to minimise inputs to waste from the mining process and to increase the reuse, recycling and repurposing of raw materials and products to improve sustainable consumption. The traceability systems also ensure that the level of information that is shared and disclosed along the value chain. They illustrate the chain of custody, which is the sequence of stages and custodians the product is transferred to through the supply chain.

The transparency of reporting across the entire supply chain is at the core of this and this has two parts:

  • Minimise resource use and waste (use of water, energy, land and chemicals and minimise production of effluent, waste and chemicals) and also purpose waste rock
  • Incorporate life cycle thinking (extend responsible sourcing to all suppliers and collaborate to connect the consumer with sustainable raw materials).

India-centric big picture

India as a country has progressed well in SDG Reporting and Sustainable Development in the mining sector that accounts for 2.5% of the country’s GDP. Many of the key companies of the sector are SOEs. India is abundant in natural mineral resources and the country is one of the world’s main producers of iron ore and bauxite. India is the third largest producer of coal, behind the US and China. In construction related extractive minerals, India is the world’s second largest producer. Section 135 of India’s Companies Act on CSR and Regulation for large public companies to produce Business Responsibility Reports, makes it imperative for Large Mining companies (both metallic and non-metallic extractive ones) to be part of the SDG reporting, that cover diverse range of sustainability areas including GHG gas emissions, energy use, stakeholder engagement and labour and human rights. 

In 2011, the Indian Ministry of Corporate Affairs issued the National Voluntary Guidelines on the Social, Environmental and Economic Responsibilities of Business (NVGs). Building on the NVGs, a new guidance entitled the National Guidelines on Responsible Business Conduct (NGRBC) was released in 2018. The new guidance integrates the ‘Respect’ pillar of the United Nations Guiding Principles and the UN Sustainable Development Goals. 

Following other countries, India is also on the path of developing sustainability guidelines for the end-to-end supply chains in the mining sector. This will only ensure stakeholder participation for safety and sustainability in all four stages: profiling, reservation, exploration and departure. For future growth in mining, that will entail coal, iron-ore, bauxite and limestone extraction as the top four mining categories, it is an absolute necessity that focus on SDG reporting is carried through beyond the voluntary reporting mandate to encompass the aspirations of the communities and investors who would be the major beneficiaries of such initiatives. Without their blessings, the growth in these sectors would be mired by distrust and lack of transparency, which remains to be one of the dampeners for sustainable growth in mining. 

Procyon Mukherjee

Concrete

Cement industry sees record growth amid booming construction demand

Glimpses from the 13th Cement Expo in Hyderabad.

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“There’s no waste in India; everything is wealth,” was the thought-provoking idea that came from Dr Mohapatra, DG, NCCBM, as he shared his views on ‘Circular Economy and Sustainability’ at the recently concluded 8th Indian Cement Review Conference. The questions he raised and the ideas he presented were enriched with his decades of experience of working on research, development and analysis of alternative raw materials and renewable fuel for the cement industry. He highlighted the struggles in manufacturing blended cement and the opportunities that are available for its use. Finally, he suggested ways to ensure that each manufacturing plant falls within the gamut of a circular economy.

On his part Dr Sriharsha Reddy, Director, IMT Hyderabad, elaborating on ‘ESG – Green Financing: A new opportunity for the cement industry’, brought to light a number of important issues pertaining to fund procurement through traditional methods and the challenges therein.

Highlighting his views on carbon capture and its benefits for the cement manufacturers, Saurabh Palsania, Executive Director and Group Commercial Head, Dalmia Cement (Bharat), underscored the need to implement innovative technology and most importantly a proper strategy, in order to revolutionise the efforts towards net zero emissions. “Carbon capture, utilisation and storage (CCUS) is an investment-intensive process that also requires a commitment of time and labour. Keeping all these factors in mind, cement companies need to chart out an effective strategy to incorporate CCUS into their eco systems, ensure purity of the captured carbon and channel it towards predetermined activities for its optimum utility,” he said.


Pratap Padode, Founder & President, FIRST Construction Council,
summarised the challenges faced by the Indian cement industry as well as the growth opportunities it presented for manufacturers in terms of technological innovation and capacity building. He supported his opinions with statistical findings and his in-depth knowledge about the Indian cement and construction industries.

Several discussions from the event highlighted several critical aspects of the cement industry.

ESG – Green Financing: A new opportunity for the cement industry

The cement industry has made progress in reducing energy consumption and power usage, but the challenge now lies in reducing carbon emissions. With breakthrough carbon capture technologies and solar calcination of limestone, the industry can work towards achieving zero CO2 emissions. However, the economic value of carbon capture needs to be explored, with government support through carbon labelling, trading, and green funds. Other solutions such as non-contact grinding and heat recovery from kilns can also be explored to bring emissions to zero. The industry can achieve sustainability and low carbon footprint with digital transformation and well-planned processes. To finance green initiatives, traditional lending institutions such as banks are now considering the economic value of eco-friendly practices. However, long-term loans remain a challenge, and other lending institutions such as venture capitalists and government grants need to be explored.

Demystifying digitalisation and maximising the value chain impact

Digitalisation is crucial in optimising all stages of cement production. Industry 4.0 has provided tools that help determine the desired product quality, which is vital in meeting customer demands. As the importance of ESG continues to grow, digitalisation can help improve processes and reduce environmental impact. Transparency is also key, and a cloud-based platform can facilitate this. Automation at the plant level is vital for both efficiency and safety. However, it is important to remember that profitability is also essential for sustainability. Therefore, implementing digital tools and automation must be done with a focus on achieving profitability without compromising on sustainability.

Innovative supply chain strategies in the cement industry

Innovative supply chain strategies are crucial for the cement industry to remain competitive, with logistics and transportation being at the forefront. Industry experts discussed that the key to cost efficiency lies in innovation in first and last mile connectivity. However, logistics should not be viewed as merely a commercial function, but rather as a technology function. By investing in technology, cement manufacturers can drive the supply chain in a much better way, enabling them to evaluate processes from a revenue angle rather than just cost.

Industry experts also agreed that logistics is the only differentiator a cement company can have today, rather than cost or quality. As such, it is essential for cement manufacturers to explore non-renewable sources of energy to address the energy demand for distribution. Automation is also considered a key element for future logistics solutions. With these innovative strategies in place, the cement industry can increase efficiency and sustainability, which in turn can positively impact the bottom line.
On his part, Gaurav Gautam, Head of Sales, Beumer Group, highlighted the innovations in material handling systems that the is undertaking in order to make the movement of finished products smoother along the supply chain. The company specialises in tailor-made intralogistics solutions that help maximise productivity of cement companies.

Truly, the 8th Indian Cement Review Conference brought the industry together in a informative discussion on thought-provoking ideas and suggestions. The presentation weremade by Jayesh Patil, Assistant Manager, Flow Aids, Martin Engineering; Nischal Basavaraj, Regional Head – South, Liugong India; Sasi M Kumar, Business Development Manager – Cement, ExxonMobil; and S Chakravarti, Managing Director, Ecodea Projects and Control.

The conference was held alongside the 13th Cement Expo and Indian Cement Review Awards 2023. Partners supporting the event included: Presenting Partner: ExxonMobil Lubricants; Gold Sponsor: JK Cement and PhillipCapital India; Silver Sponsor: LiuGong India; Associate Sponsor: Humboldt Wedag India; Presentation Partners: Martin Engineering Company India, Beumer India, and Ecodea Projects & Control; Logo Sponsor: Stotz Gears; and Exhibiting Partners: Toshniwal Industries; TIDC (Murugappa Group), and Ringfeder Power Transmission India.

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Concrete

Solutions to protect concrete against monsoon

Concrete patching compounds for repairing concrete window ledges.

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As the monsoon season rapidly approaches in India, the urgency to address potential damage to the commonly used building material – concrete –intensifies. Weathering and loading can cause cracks and deterioration, impacting both the structure’s integrity and aesthetics and leading to water penetration and reinforcement corrosion. To ensure durability and prevent further damage, it is essential to promptly repair any concrete cracks.

Several structures face a common problem during monsoon season – holes created by water penetration or impact in concrete window sills. These not only affect the window’s appearance and functionality but also pose a safety hazard. Fortunately, various concrete repair compounds are available in India to fill such holes and restore the window sill. Don’t wait until it’s too late –CW researches some of the concrete repair compounds that could help protect concrete structures from monsoon damage:

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Concrete

Heidelberg Materials secures SBTi validation

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The Science-Based Targets Initiative (SBTi) has validated Heidelberg Materials’ new 2030 CO2 reduction targets. The targets have a base year of 2020 and conform to a 1.5°C climate change framework. Per tonne of cementitious material, the producer is now committed to reducing its Scope 1 CO2 emissions by 24 per cent, its Scope 2 CO2 emissions by 65 per cent and its Scope 3 emissions by 25 per cent.

Images Source: Google Images

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