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Sustainable Mining in India’s Cement Industry

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Pukhraj Sethiya and Kundan Singh present an analytical outlook on how the Indian cement industry is approaching sustainable mining, exploring the guiding frameworks, facing challenges and utilising digital tools.

India’s cement industry, second only to China in scale, is a backbone of national infrastructure and housing development. With over 700 million tonnes per annum (MTPA) of installed capacity and around 450 MTPA production in FY 2025, the sector accounts for nearly 8 per cent of global cement output. Limestone, the principal raw material, is sourced largely from shallow, land-intensive mining operations.
However, this dependence on primary extraction raises pressing concerns: land degradation, water stress, emissions, and community displacement. As India commits to net-zero by 2070 and global supply chains increasingly demand ESG compliance, cement-linked mining must undergo a transformation towards low-carbon, resource-efficient and socially inclusive practices.
This article provides an analytical view of sustainable mining in the cement sector, covering frameworks, barriers, digital enablers, consulting roles and global benchmarks shaping the industry.

Defining sustainable mining in the cement ecosystem
Sustainable mining is not merely about compliance—it is about optimising resource use while safeguarding ecological and social systems. In cement-linked mining, it implies:

Resource efficiency
o Moving beyond simple limestone extraction by minimising waste and optimising blasting, haulage, and processing.
o Integrating secondary raw materials (e.g., fly ash, slag, red mud) to reduce dependence on virgin limestone and extend the mine’s life.
o India’s clinker-to-cement ratio of ~0.70 (lower than the global average of 0.74) demonstrates progress, but further reduction is possible through blended cements.

Environmental stewardship
o Preventing soil erosion and biodiversity loss through scientific mine planning and phased reclamation.
o Water recycling, rainwater harvesting, and mine-pit water use are critical given that the cement sector is one of the top 10 industrial water consumers in India.
o Repurposing mine dumps for solar installations or afforestation can offset emissions and create alternative land value.

Community engagement
o Beyond CSR, sustainable mining emphasises creating resilient local economies.
o Employing local communities in ancillary services (transport, catering, non-critical supplies) promotes shared value and reduces operational risks from social unrest.

Regulatory compliance
o Adherence to evolving environmental clearance (EC) conditions, Mine Closure Plans and labour laws is non-negotiable.
o Global investors increasingly view non-compliance as a reputational and financing risk.

Post-mining land use
o Mine closure should not result in abandoned pits but in planned transitions—industrial estates, recreational parks or even water reservoirs that benefit surrounding regions.

Consulting: enabling sustainability-linked profitability
Mining companies often face a false dichotomy between sustainability and profitability. Consulting firms help realign strategies by quantifying the business case for sustainability.

  • Materiality Assessments: Identifying ESG factors most relevant to mining (e.g., water scarcity in Rajasthan, dust emissions in limestone belts of Chhattisgarh).
  • Life Cycle Costing: Demonstrating savings from energy-efficient crushers, conveyor systems over trucking or water-recycling plants.
  • Integrated ESG in Mine Lifecycle: Embedding sustainability from exploration (site selection) through design (haul road optimisation) to closure (reclamation).
  • Regulatory Navigation: Guiding companies through multi-layered frameworks—MoEFCC clearance, DGMS safety standards, and international benchmarks (GRI, TCFD, SBTi).
  • Cultural Transformation: Enabling leadership to cascade ESG values into operational metrics (e.g., tonnes CO2 per tonne clinker, water used per tonne mined limestone).

Such interventions convert ESG from a cost centre to a competitive advantage, directly improving investor confidence and market positioning.

Digital tools and financial modelling as enablers
Digital transformation in mining is no longer optional—it is a differentiator. When integrated with financial modelling, these technologies provide decision-makers with quantifiable sustainability outcomes.

GIS and remote sensing

  • Enables precise resource mapping, monitoring land-use changes, and real-time compliance tracking.
  • Concept of ‘Borehole to Boardroom’ allows linking geological data directly with management dashboards.

Mine planning software + fleet management

  • Optimises pit design, reduces haul distances,and cuts diesel consumption (a major cost and emission source).
  • Fleet automation and dispatch systems can reduce fuel use by 10 per cent to 15 per cent.

IoT monitoring

  • Real-time sensors track air quality (dust), water discharge, and noise, ensuring early intervention before regulatory breaches.

AI and predictive analytics

  • Prevents equipment failures, reducing downtime and energy wastage.
  • Optimised blasting and grinding reduce overburden movement and electricity use.

Digital twins

  • Simulating various mining approaches allows assessment of both environmental outcomes and financial viability.
  • Enables stress-testing against future carbon prices or water-scarcity scenarios.

When combined with financial modelling, these tools demonstrate that upfront sustainability investments can yield long-term financial gains through reduced operating costs, risk mitigation, and enhanced funding access.

Challenges facing indian miners
Transitioning to ESG-aligned operations is not straightforward, especially in India. Major roadblocks include:

  • Capital Constraints: Many small to mid-tier miners lack access to low-cost financing for green technologies, unlike global peers where sustainability-linked loans are common.
  • Skill Gaps: A decade-long slump in mining activity has created shortages of skilled manpower, particularly in ESG integration and digital mining.
  • Regulatory Complexity: Overlapping state and central laws cause clearance delays. India ranks poorly on ‘ease of mine permitting’ compared to global peers.
  • Technological Lag: More than 70 per cent of limestone mines still rely on conventional drilling and blasting, with limited adoption of automation.
  • Weak Stakeholder Pressure: Unlike Europe, where consumer preference drives ESG compliance, India’s cement demand is largely cost-driven, lowering pressure on producers to adopt sustainability measures.

ReVal consulting’s ESG integration framework
ReVal Consulting’s approach demonstrates how ESG can be embedded into mining strategy:

  • Early-Stage ESG Screening: Risks identified during exploration reduce future compliance costs.
  • Customised ESG Roadmaps: Action plans aligned with IFC, SBTi, and ICMM frameworks.
  • Innovative Mine Planning: Incorporating low-energy equipment, optimised mine sequencing, and land-efficient layouts.
  • Carbon Accounting and Reporting: Comprehensive measurement of Scope 1, 2, and 3 emissions.
  • Stakeholder Management: Engaging local communities as active partners, not passive beneficiaries.
  • Closure Planning: Designing legacy projects—reclaimed land converted to industrial hubs, eco-tourism parks or renewable energy sites.

This interdisciplinary model ensures that sustainability drives operational, financial and reputational outcomes simultaneously.

Global benchmarks shaping indian mining
Indian miners are increasingly influenced by international standards due to trade and investment flows:

  • ICMM Principles: Provide a framework for ethical mining across 38 global members.
  • SBTi (Science-Based Targets Initiative): Pushes companies to set emissions reductions in line with climate science.
  • TCFD (Task Force on Climate-related Financial Disclosures): Drives climate-risk reporting in corporate governance.
  • GRI and SASB Standards: Ensure comparability in ESG reporting, critical for global investors.

Aligning with these benchmarks improves access to green financing, enhances transparency and strengthens competitiveness in export markets.

Low-carbon mining strategy
Looking ahead, India’s cement-linked mining must align with the nation’s 2070 net-zero target. Strategic shifts will include:

  • Electrification and Renewables: Wider use of electric mining trucks, conveyors and renewable-powered crushers.
  • Smart Mine Design: AI-driven pit optimisation, autonomous haulage and real-time monitoring for efficiency.
  • Circular Mining: Repurposing overburden and tailings into aggregates, bricks or backfilling material.
  • Green Financing: Sustainability-linked bonds and loans increasingly tied to ESG performance indicators.
  • Policy-Led Innovation: Government incentives (e.g., Production-Linked Incentives for green tech), stricter emission caps and possible carbon pricing mechanisms.

Conclusion
For India’s cement sector, where mining is the foundation of operations, sustainability is both an imperative and an opportunity. Transitioning to ESG-driven mining practices is not simply about environmental stewardship; it is about ensuring long-term competitiveness, investor confidence and societal license to operate. With the right mix of consulting expertise, digital adoption, global benchmark alignment and policy support, Indian mining can reposition itself as a global leader in sustainable cement production. The critical question is no longer if mining should be sustainable, but how quickly and effectively the sector can pivot towards that future.

About the author:
Pukhraj Sethiya, India MD, ReVal Consulting, leverages two decades of mining expertise to deliver strategic, sustainable, and impactful solutions.

Kundan Singh, Associate Director and Lead – Management and Strategy Consulting, ReVal Consulting, specialises in strategy, finance, and due diligence across coal, cement, and metal mining.

Concrete

India’s Cement Sector Cuts Energy Use, but Worker Safety Worsens

iFOREST finds efficiency gains alongside water and safety concerns

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India’s cement sector has improved its energy and carbon efficiency, but rising groundwater use in water-stressed regions and deteriorating worker safety remain significant concerns, according to a report by the International Forum for Environment, Sustainability & Technology (iFOREST). The findings also highlighted weak policy implementation and gaps in sustainability reporting.

India, the world’s second-largest cement producer, uses about 2.54 gigajoules of energy per tonne (GJ/t), below the global average of 2.88 GJ/t. However, renewable sources accounted for only 5.1 per cent of the sector’s energy mix, indicating continued dependence on conventional sources.

The report assessed 18 cement companies against 107 Business Responsibility and Sustainability Reporting indicators for FY24 and FY25. The companies covered 87 per cent of India’s cement production. Carbon emissions intensity declined from 0.58 to 0.57 tonnes of carbon dioxide per tonne, but total emissions increased 4 per cent to 224.3 mn t, equivalent to about 6 to 7 per cent of India’s overall emissions.

Overall water withdrawal declined 9.5 per cent during the study period, while withdrawals in water-stressed areas, mainly in Rajasthan, increased by more than 20 per cent. Groundwater’s share of withdrawals in these areas rose from 27 per cent to 38 per cent, raising concerns about the sector’s impact on vulnerable water resources.

The sector employs about 228,000 people, including 63 per cent contractual workers, 3.1 per cent women and 0.07 per cent persons with disabilities. Women in key managerial roles earned 26.8 per cent less than men, while median pay for women workers fell 11.1 per cent in FY25 as men’s pay increased. Worker injuries rose 36.5 per cent to 359, and fatalities increased from 17 to 22, with workers accounting for more than 90 per cent of deaths.

iFOREST recommended cement-specific reporting guidance, standardised metrics, mandatory production disclosure and third-party verification. It also called for environmental, social and governance policies to be integrated into business strategies and implemented more effectively on the ground.

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Concrete

Ambuja Cements Expects Volume Growth to Outpace Industry in H2

Ambuja Cements sees stronger trade and institutional demand in H2 FY27.

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Ambuja Cements expects its sales volumes to grow faster than the cement industry during the second half of fiscal year 2027, as it seeks a recovery in institutional demand after a weak first half. The Gautam Adani-owned company is aiming to rebuild volumes while protecting profitability.

The company reported a 90 per cent year-on-year decline in consolidated net profit attributable to owners of the parent to Rs. 1.93 bn for the quarter ended 30 September, from Rs. 17.74 bn a year earlier. The previous year’s profit included a reversal of income-tax provisions worth Rs. 16.97 bn. Revenue from operations rose marginally to Rs. 91.66 bn from Rs. 91.3 bn.

Trade volumes increased 8.6 per cent year-on-year in the September quarter, but weaker institutional sales left overall volumes broadly unchanged. Ambuja Cements expects both trade and institutional sales to turn positive in the third and fourth quarters. Trade sales are made through dealers and distributors, while institutional or business-to-business sales involve bulk supplies to infrastructure developers, government projects and real estate companies.

The company had earlier reduced institutional sales that did not generate adequate returns. It now plans to rebuild the business selectively, while continuing to prioritise trade sales and higher-value products. Trade accounted for 74 per cent of sales in the quarter, up six percentage points from a year earlier, while premium products increased to 37 per cent of trade sales from 35 per cent. Blended cement’s share rose to 82 per cent from 77 per cent.

Ambuja Cements commissioned 4.6 mn t of capacity during the quarter. Another 3.2 mn t at Bathinda in Punjab and Jodhpur has stabilised, with the facilities expected to ramp up in the second half. A further 2.4 mn t facility at Varkala in Bihar is scheduled for commissioning during the period. Higher fuel and logistics costs remain a challenge, while the company has realised a cement price increase of about Rs. 10 per bag in October and is targeting operating costs of Rs. 4,250 per t for the full year.

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Concrete

JK Lakshmi Cement Begins Rs 110 Billion Assam Plant Project

The 2.5 MTPA integrated cement plant is expected to be completed by FY2029.

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JK Lakshmi Cement has recently laid the foundation stone for Project Kamakshi, its first integrated cement manufacturing facility in Assam, marking its entry into Northeast India. The groundbreaking ceremony was held at Umrangso village in Dima Hasao district in the presence of Assam Chief Minister Himanta Biswa Sarma.
The project involves an investment of Rs 110 billion, including the mining lease, and will have an annual cement production capacity of 2.5 million tonnes, supported by a 1 million tonne clinkerisation unit. Scheduled for completion by FY2029, the facility is expected to generate employment for over 2,000 people while catering primarily to the growing Northeast market.
The integrated plant will feature dedicated railway sidings to facilitate efficient transportation of raw materials and finished cement, strengthening supply chain reliability and regional distribution.
Vinita Singhania, Chairperson and Managing Director, JK Lakshmi Cement, said, “”Project Kamakshi is the start of a long-term relationship with Assam and the wider North East. This is a region that is building fast, and it deserves quality cement made close to home. With this plant, we want to bring scale, jobs, and dependable supply to the region. At JK Lakshmi Cement, we believe that building a stronger India goes beyond infrastructure. It is also about growing together with the communities we serve.””
The investment aligns with the company’s strategy to expand into high-growth markets beyond its established presence in Northern, Western and Eastern India. The project is also expected to support regional economic development and infrastructure growth.
JK Lakshmi Cement aims to pursue its expansion plans while working towards its long-term target of achieving net-zero emissions by 2047.

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