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Sustainable mining is an essential element

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Anurag Bagaria, Director – Sales & Mining Head, KK Bagaria Group and Anurag Bagaria Group, discusses the restrictions on mining, the efforts his company is taking in reducing environmental impact and the collaborations that are on cards with cement companies to achieve net zero goals.

Tell us about the key materials that are mined for the cement industry?
There are a lot of minerals mined and manufactured by us for the cement industry. We majorly mine high calcium limestone which helps give their product quality and strength. We are located in central India at Katni, Madhya Pradesh which is a hub for cement manufacturing. All major cement plants have their manufacturing units here and we have witnessed the growth and commissioning of a couple of plants every year like ACC Cement, four units of Birla Cement etc.
For the cement industry, we also mine the laterite stone, which is rich in Al2O3. They use it to derive a certain grade of bauxite for their manufacturing process. We also mine hydrated lime or quicklime, as a raw material for the cement industry.
For the energy needs of the cement industry, they burn coal in their furnaces. Coal mining is 95 per cent under the Government of India. Our role as miners is to procure the required grade of coal from the government and supply the same to cement plants.
We are also the manufacturer of high alumina fire bricks which are used in furnaces, ramming mass and castables in the cement plants.
Usually, the mining volumes are in lakhs of tonnes. However, it depends on the permissions from the government agencies like the Mining Ministry of India and the environment department.

Tell us about the state-of-the-art machinery and equipment used.
We use the best machinery and equipment for our work at the mines. JCB’s, poclain excavators, levelers, diesel excavators with bucket, wheel loaders, backhoe loaders, bulldozers, dump trucks, tippers, graders, rock breakers, vibratory compactors, cranes, fork lifts, dozers, off-highway dumpers (20T to 60T), drills, scrapers, motor graders etc., are the various machinery that we for our end-to-end mining process.

What is the role of automation and technology in your mining process?
Yes, automation plays an important role in the mining process. Our mining, over the past 65 years, has been significantly labour intensive. However, now we have moved over to the use of machinery and equipment in the work process.
We have retained our labour forces as they have contributed greatly to the mining work and we believe in giving employment to them. It is a strong belief that if one hires the right person for the job then they make the functionality of technology, machinery and equipment better, making them more productive and efficient.

How do you incorporate sustainability in your mining process?
We incorporate sustainability into our mining process by using renewable energy sources, such as solar and wind power, to power our operations. We also use water recycling systems to reduce water consumption and minimise our environmental impact. Additionally, we use advanced technologies to reduce our carbon footprint and minimise our waste output. Finally, we strive to ensure that our operations are conducted in a responsible manner that respects the local environment and communities. Sustainable mining is an essential element.

What are the challenges in protecting the environment and running the business?
We cannot say that protecting the environment is a challenge because according to government rules and norms, mining has a lot of restrictions in the forest areas. The government only sanctions 250 metres of forest land for mining.
Also, to ensure that there is no loss of green in the forest, we have a plantation drive. In our time as miners, we have planted around thousands of trees over a period of time. We maintain around 6000 cows, which not only is good for the environment, but they also provide for the vermi compost that helps better grow the trees.
We strongly believe in a green planet and are aware of the rising carbon situation. As an organisation, our endeavour is to plant as many trees as we can and bring that amount of oxygen to the environment, thus contributing to the protection of our planet.

How do you think depleting reserves impact the supply of these minerals?
The lowering of mineral reserves shall surely impact the industries and it has been a topic of conversation and concern amongst those who use minerals as their primary source of products. It is for these reasons that sustainable mining has gained popularity and is a means to maintain these reserves.
As the reserves of limestones and other minerals are depleting, it can have a significant impact on the supply of these minerals to cement players. This could lead to an increase in the cost of production, as they may have to source these minerals from more expensive sources. It could also lead to a decrease in the availability of these minerals, which could lead to a shortage of supply and an increase in prices. This could have a negative impact on the cement industry, as it could lead and with time and due to new technology materials, which are treated as low grade limestone are also being used with plants by installing washers and other machines which help in increasing their grade.
For example, earlier high silica limestone is not used in the manufacturing process now we wash the material due to which the silica percentage decreaseds, so it could be used for cement manufacturing.

How do you envision your collaboration with the cement industry in the coming years?
I envision our collaboration with the cement industry to focus on developing innovative solutions to reduce the environmental impact of cement production. This could include exploring new technologies and materials to reduce emissions, developing more efficient production processes, and finding ways to reuse and recycle materials. Additionally, I believe that our collaboration should focus on educating the public about the importance of sustainable cement production and the benefits of using sustainable materials.

-Kanika Mathur

Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

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Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.

Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.

He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.

The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.

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Concrete

Cement Prices to Stay Flat in Q2 FY27 as Costs Squeeze Margins

HDFC Securities warns monsoon slowdown and higher fuel costs

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HDFC Securities has said the cement industry is unlikely to register a sequential increase in prices in Q2 FY27 as monsoon-related demand moderation coincides with rising fuel and packaging costs that will squeeze margins. The brokerage observed that price gains remained modest, with increases of two to three per cent quarter-on-quarter across regions, and noted subdued offtake in May with improvement in June as a delayed monsoon supported construction activity. The brokerage added that modest pricing gains so far have been insufficient to offset the input cost escalation.

The report stated that input cost pressures intensified in Q1 FY27 owing to the West Asia conflict, which pushed up coal and pet coke prices and is expected to keep fuel costs elevated, with a likely peak in Q2 FY27. It assessed that total variable costs, including packing, could rise by around Rs 150 per t quarter-on-quarter and that lower offtake and seasonal operating deleverage could further raise operating expenditure by about Rs 50 per t quarter-on-quarter.

Overall, cement prices were estimated to remain flat in Q2 FY27 as monsoon-led demand weakness offsets limited upside in realisation, and rising fuel costs alongside seasonal deleverage were expected to compress industry margins by over Rs 100 per t quarter-on-quarter to below Rs 880 per t. The brokerage indicated that the combined impact of energy inflation and higher packing expenditure would be the principal drivers of margin contraction in the near term. HDFC Securities projected a recovery in margins in H2 FY27 should the West Asia turmoil subside and energy and packing costs cool off.

The brokerage expressed optimism on long-term demand fundamentals and said improving realisation together with an anticipated cost cool-off should support a margin rebound from H2 FY27 onward, underpinning favourable industry prospects over the medium term. Its outlook rests on monsoon normalisation and a decline in imported fuel prices in the second half of the fiscal year.

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Concrete

Dalmia Bharat Begins Rs 31 Bn Green Cement Unit in Kadapa

New Andhra Pradesh plant to add 9.6 MTPA cement capacity by FY28

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Dalmia Bharat Limited recently laid the foundation stone for its second manufacturing unit at Kadapa in Andhra Pradesh. The company will invest Rs 31 billion in developing the next-generation integrated cement manufacturing facility.
The foundation-laying ceremony was attended by Nara Lokesh, Andhra Pradesh Minister for Information Technology, Electronics and Communications, Real-Time Governance and Human Resources Development, along with Puneet Dalmia, Managing Director and Chief Executive Officer, Dalmia Bharat, senior government officials and company representatives.
Scheduled to be commissioned by the third quarter of FY28, the Kadapa unit will become Dalmia Bharat’s largest integrated manufacturing facility in southern India. It will have a clinker production capacity of 6.1 million tonnes per annum and a cement manufacturing capacity of 9.6 million tonnes per annum.
The facility is designed to produce what the company describes as one of the world’s greenest cements. It is also expected to generate approximately 1,000 direct and indirect employment opportunities while supporting local MSMEs, transporters, contractors and service providers.
Lokesh said the investment reflected Dalmia Bharat’s confidence in Andhra Pradesh and aligned with the state’s objective of promoting sustainable industrialisation, job creation and technology-led economic growth.
Puneet Dalmia said the project represented the company’s long-term vision of developing low-carbon cement manufacturing assets. He added that the facility would establish new benchmarks in operational efficiency and sustainability while supporting India’s infrastructure and environmental goals.
Dalmia Bharat will also expand its regional community development programmes in education, healthcare, skill development and welfare through its DIKSHa and Gram Parivartan initiatives.
The company currently has an installed cement manufacturing capacity of 54.7 million tonnes across 19 manufacturing units in 12 states. It is also the first cement company globally to commit to the RE100, EP100 and EV100 initiatives.

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