Economy & Market
The New Age of Mining
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11 months agoon
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Sustainable mining is redefining how India sources the backbone of its cement industry — responsibly, efficiently, and transparently. ICR explores how innovation, regulation, and community partnership are shaping the next era of mining for a low-carbon future.
India’s vast mineral endowment underpins not just its industrial ambitions but also some of its most carbon-intensive sectors — and yet, the current paradigm of extraction is increasingly unsustainable. In the cement sector alone, limestone mining is critical: about 97 per cent of the limestone produced in India is of cement grade. According to Market Review of Cement Sector, JSW report, India’s cement production rose to 426.29 million tonnes in FY 24, an increase of 8.90 per cent year-on-year, placing ever greater demand on quarrying operations. The Indian Cement Industry Analysis, IBEF states that with this scale of extraction, the environmental consequences are mounting, compelling the industry and regulators alike to rethink mining practices.
The environmental toll of conventional mining — deforestation, soil erosion, disruptions to hydrological systems, dust pollution, and biodiversity loss — is no longer a future risk but a present reality. A study by Mongabay-India tracking Indian coal-mining regions from 1994 to 2022 found that mining had reduced forest cover by 7.32 per cent to 17.61 per cent, and shrunk water bodies by 5 per cent to 10 per cent in many zones. Moreover, water pollution in several mines has often exceeded permissible norms: between 2013 and 2018, eight out of 28 studied mines were found to breach Bureau of Indian Standards limits. These are cautionary signals for sectors deeply reliant on mined materials — like cement — that sustainability cannot remain an afterthought states Assessment of Environmental Impact due to Mining Activities, PRS India.
Alongside environmental imperatives, there is growing social, regulatory, and economic impetus pushing the mining industry toward transformation. The mining sector currently contributes about 2.5 per cent to India’s GDP states the Mining 2025 – India, Chambers practice guide. Meanwhile, ESG norms, community expectations, and climate goals demand that mining operations align with sustainable development principles. As India charts its path toward Net Zero by 2070, the cement industry must engage not only in low-carbon kiln technologies but also in sustainable sourcing of its raw materials. In this article, we explore how sustainable mining — in policy, practice, and innovation — can become a foundation rather than a constraint for India’s
cement future.
Environmental footprint of traditional mining
Traditional mining leaves a deep and lasting scar on the natural environment, often in ways that transcend the boundaries of the lease area. Vegetation is cleared, soil structure is disrupted, and topsoil is often lost irreversibly. According to a recent spatial-analysis study, mining areas in one region expanded from 0.00 per cent in 1991 to 8.97 per cent in 2021, while vegetation cover in the same region fell from 40.17 per cent to 31.20 per cent over the same period according to the ‘An assessment of environmental impacts in mining areas’ report, 2024. In mineral-rich states like Odisha, districts such as Rayagada and Koraput have each lost more than 20 km² of forest cover between 2001 and 2019 due to expansion of mining operations. According to the ‘Mining impacts on
forest cover change in a tropical forest’ study such deforestation not only reduces biodiversity and habitat, but also undermines ecosystem services such as carbon sequestration, soil retention, and local
climate regulation.
Pankaj Agarwal – National Mines Head, Shree Cement says, “Sustainable mining means responsibly extracting resources with minimal environmental impact, while ensuring long-term ecological balance and community well-being. As the cement industry moves toward carbon neutrality, mining must transform through clean energy adoption, electrification, and digital innovation to reduce emissions and boost energy efficiency. Embracing alternative raw materials and circular economy principles will lessen reliance on virgin resources, while integrating carbon capture technologies will help close the emissions loop. Responsible land use, biodiversity protection, and community engagement will ensure mining supports both environmental and social sustainability. In this evolving landscape, mining becomes a key enabler of a greener, more resilient cement industry.”
“Responsible mining is not just about extracting resources, it’s about safeguarding ecosystems, empowering communities and ensuring that every step we take today builds a more sustainable tomorrow. At every stage from exploration to rehabilitation, we must embed environmental stewardship, ethical governance, and social accountability into our operations. This is not only a moral imperative but also a strategic one, ensuring long-term value for all stakeholders” he adds.
The environmental burden extends well beyond land cover changes. Water quality and hydrology are frequently disrupted by sediment runoff, acid mine drainage, and leachates carrying heavy metals and suspended particulates. According to a report by PRS India, Assessment of Environmental Impact due to Mining Activities and its Mitigation, 2021, during 2013–18, pollutants in eight out of 28 studied mines exceeded limits prescribed by the Bureau of Indian Standards. Furthermore, in the state of Karnataka, a 2025 assessment of granite quarrying in Ramanagara district found that surface and groundwater around quarry sites showed evidence of contamination, declining groundwater levels, and increased turbidity. Together with dust emissions, noise, vibration from blasting, and slope failures in overburden dumps, these impacts impose health risks on local communities and degrade ecosystems over a broad footprint.
Limestone mining and the cement industry
Limestone is the principal raw material in cement manufacture — indeed, more than 95 per cent of India’s limestone output is consumed by the cement industry. According to a report by JSW, Market Review of Cement Sector, about 97 per cent of the limestone produced in India is cement-grade. Over the past few decades, India has witnessed a surge in limestone extraction to support a rapidly growing cement sector. The Status of Limestone Mining and Cement Industry in India report notes that production increased more than five-fold from 23.8 million tonnes in 1970-71 to over 127 million tonnes by 1999-2000, and this upward trajectory has continued since. As the demand for infrastructure, housing, and urban development accelerates, pressure on limestone quarries intensifies — raising the stakes for mining that is both efficient and ecologically sensitive.
However, the method of extraction — typically opencast or open-pit quarrying — brings with it several environmental challenges that are especially pronounced in limestone mining for cement. Blasting, crushing, and hauling generate large volumes of dust and suspended particulates, which degrade air quality in surrounding habitations and ecological zones. According to a study published in Atmospheric Chemistry and Physics assessing environmental impact, limestone quarrying releases considerable suspended particulate matter and contributes to carbon and other air pollutant emissions. Furthermore, the process of overburden removal and bench formation alters landforms and disturbs soil structure and drainage patterns, increasing susceptibility to erosion and reducing soil fertility in adjacent lands.
Water dynamics and hydrology are also affected by limestone mining, particularly in regions with fractured carbonate bedrock. De-watering and drainage of aquifers, runoff laden with suspended solids and fines, and changes in surface water flow paths can all strain local water resources. In the East Jaintia Hills of Meghalaya, for example, studies have documented observable declines in water availability, contamination of streams, and deterioration of water quality in limestone mining zones sates the ‘Changes in Soil Quality in Limestone Mining Area’ study. Similarly, open-cast mining in Tilakhera, Chittorgarh district (Rajasthan) showed degradation in soil organic carbon, pH, and other fertility indicators up to a depth of 4.5 m beyond the mine boundaries states ‘Impact of open cast Limestone mining activities on soil quality status’. These hydrological and geochemical perturbations often persist long after mining operations cease, complicating restoration efforts.
Ramesh Kumar Ajmera, Founder and Director, Balaji PrimeSteel says, “Water, one of mining’s most critical resources, is being conserved through closed-loop recycling, advanced filtration and dry tailings processing, minimising both consumption and pollution. Meanwhile, waste is no longer just a liability: tailings can be dry stacked and reused in construction, steel slag and fly ash are fed into cement production, and bioleaching extracts residual metals from mine waste. Real-time monitoring with IoT sensors, geographic information system (GIS) and blockchain ensures transparency, ethical sourcing, and early detection of violations. Even post-closure, drones, bioremediation and digital land planning support ecological restoration. While high costs and skill gaps slow adoption, technology ultimately acts as both shield and sword—reducing harm while driving efficiency and profitability in mining’s low-carbon future.”
Given the scale and criticality of limestone supply, the cement industry must embed sustainability into its upstream mining operations. Efficiency in resource usage — such as optimising blasting protocols to reduce waste and flyrock, reclaiming and reusing mine water, preserving topsoil for rehabilitation, and planning quarry layouts to minimise ecological disruption — are no longer optional extras, but essential. A robust Environment Management Plan tailored for limestone quarries, with rigorous monitoring of dust, water, noise, and biodiversity, becomes a baseline expectation states the ‘Environmental Hazards of Limestone Mining and Adaptive Practices’ report. In the subsequent sections, we will examine how technology, rehabilitation, regulation, and innovation can together reimagine limestone mining not merely as an enabler for cement, but as a driver of sustainable industrial development.
Technology-Led mining: digitalisation and automation
In recent years, mining operations have begun to embrace digital transformation in a way that reshapes the entire value chain — from exploration and planning through extraction to monitoring and rehabilitation. According to a report by PwC, Transforming India’s Mining Landscape with Autonomous Technology, autonomous mining integrates operational technology (e.g. automated drilling, haul trucks, and control systems) with information technology (data connectivity, analytics, remote operations) to progressively reduce human presence in high-risk zones and enhance precision. In India, the deployment of IoT sensors, AI algorithms and remote control systems is enabling real-time monitoring of blasting, slope stability, dust levels, and equipment health, thereby optimising energy use and lowering downtime states the EY – Transforming India’s Mining Sector through Sustainability and Innovation report.
Prasanajit M, Founder and Managing Director, Shanvi Resources says, “For Shanvi Resources, sustainable mining means profit with proof — measurable ESG outcomes built into every tonne. Data and technology are central to this vision: live orebody models, smart drilling, and analytics-led operations help cut dilution, fuel, and water use, transforming sustainability from a cost centre into a control variable. To the cement industry, the message is clear — co-design your quarries with your miners. Align raw-mix needs, haulage energy, water management, and land rehabilitation from day zero, because shared KPIs deliver both a lower clinker factor and a lower environmental footprint.”
The results of automation and digitalisation are already noteworthy in global practice, and Indian mining firms are beginning to catch up. According to the Automation and Digitalisation Insights 2024 report, over 60 per cent of surveyed mining professionals have confirmed deployment of automation technologies such as autonomous vehicles and remote operating centres, especially in large scale operations. These technologies reduce exposure of workers to hazardous environments, improve operational consistency, and open the way for predictive maintenance and prescriptive optimisation of workflows. Moreover, the use of digital twins and industrial IoT platforms is showing promise: for example, a 2025 study demonstrated how a prototype system combining IoT sensors with a digital twin layer optimised equipment deployment and process throughput in traditional mining setups states the Industrial IoT and Digital Twin in Mining study. The integration of such technologies in India’s cement-linked limestone mining can yield gains in safety, efficiency and environmental control — provided capital investment and skill development go hand in hand.
Afterlife of mined lands
Once mining operations wind down in a quarry, the ‘afterlife’ of that landscape becomes as important as its active years. The objective of reclamation and rehabilitation is to restore ecological function, make the land safe and stable, and wherever possible repurpose it for productive use (like agriculture, forestry, or recreation). According to a report by FIMI, States’ Best Practices in Mining, 2025, several Indian states have begun mandating comprehensive mine closure and post-mining land use plans as part of their lease conditions. Effective reclamation often begins before closure: stacking and preserving topsoil, contouring benches and slopes, installing drainage, and planting pioneer species to check erosion. In India, bio-reclamation efforts by coal/lignite PSUs have resulted in 10,942 hectares being brought under green cover over FY 2019–20 to 2023–24, with 23.64 million saplings planted in and around mines according to a report by the Ministry of Coal.
“Overburden is systematically stacked and used for backfilling or land reclamation. We also plant trees in reclaimed areas, so the land regains its natural balance over time. Compliance is non-negotiable now. We stay aligned with all statutory norms and so that their concerns are addressed beyond just legal requirements” says Anurag Bagaria, Managing Director, KK Bagaria Group.
Yet rehabilitation is no mere matter of planting trees. In limestone mining regions, success depends on matching appropriate germplasm, soil amendments, moisture retention strategies, and long-term monitoring. The Post-mined Land Rehabilitation in India catalogue highlights that more than 50 tree, shrub and grass species have been trialed across different climatic zones, but the choice must suit local soil and rainfall regimes. In highly weathered or rocky overburden zones, techniques such as compost mixing, mycorrhizal inoculation, and vetiver hedges have often been used to stabilise slopes and shield against erosion states the Post-mined Land Rehabilitation in India catalogue. In limestone quarries specifically, legacy studies have shown that a combination of rainwater harvesting structures, soil ameliorants, and strategic planting of grasses and shrubs can yield self-sustaining vegetation even in complex substrate conditions.
Water management is a core pillar of sustainable mining, because without proper control, dewatering, runoff, or contaminated discharges can degrade downstream aquatic systems. According to a report by Saba Shirin et al, Environmental Impact of Mine Water Utilization and Management in Indian Mines, 2018, untreated mine water often exhibits elevated TDS, suspended solids, and abnormal pH levels — risks that demand robust treatment before reuse or discharge. In practice, mines adopt a “zero or minimal discharge” approach, capturing runoff, sedimenting suspended solids, and recycling treated water back into operations. Many mining firms globally now deploy modular treatment systems, reverse osmosis, and constructed wetlands to polish effluent water suitable for dust suppression, process reuse or irrigation states Mining Wastewater Use: Challenges, Opportunities, and Sustainable Approaches, 2023. Crucially, integrating water budgeting in mine planning—forecasting inflows, seepage, and recycling potential—allows operators to reduce freshwater drawdown and maintain ecological flows in surrounding watersheds.
Waste minimisation and byproduct utilisation represent both an environmental solution and a value opportunity for mining in the cement sector. According to a report by EY, Advancing India’s Mining Sector: Strategies for Sustainable Growth, 2024, mining companies are increasingly adopting circular economy principles by converting waste streams into raw materials, backfill, or construction inputs. Tailings, overburden, fines, and quarry dust — often viewed as liabilities — can be converted into blends for aggregates, bricks, or supplementary cementitious materials (SCMs). The Circular Economy in the Indian Extractive Industry article (2025) notes that improved processing and sorting can increase the usable share of mineral output while reducing the volume of residue requiring storage. Some Indian mines already use tailings or reject for backfilling, stabilising dumps, or as road base; others treat wastewater sludge for land application states Mine Waste as Resource: Indian Mining Scenario of Coal, 2021. The challenge lies in ensuring quality, regulatory compliance, transport economics, and consistent supply — but done right, byproduct valorisation transforms a cost centre into a strategic advantage for sustainable mining.
Green initiatives in mining
Energy efficiency and carbon reduction in mining are no longer aspirational goals but strategic imperatives. According to a report by EY, Advancing India’s Mining Sector: Strategies for Sustainable Growth, one of the three core pillars for decarbonising mining in India is energy efficiency, alongside electrification and the shift to decarbonised fuels. By reducing specific energy consumption in mining machinery, optimising haulage routes, and using variable-speed drives and waste heat recovery systems, mines can materially lower their emissions footprint. In India’s broader industrial sector, energy efficiency programmes achieved savings of 53.60 Mtoe in 2023-24, equivalent to roughly 6 per cent of the country’s primary energy supply. When applied to mining operations, similar gains translate to reductions in fuel use, maintenance costs, and greenhouse gas emissions—especially valuable in energy-intensive sectors like limestone and cement feedstock extraction.
Pukhraj Sethiya, India Managing Director, ReVal Consulting says, “The most underrated driver of sustainable mining is community engagement. While technology and regulations often dominate discussions, the long-term viability of mining truly depends on earning and maintaining a social licence to operate. Employing local people, building cooperative supply chains, and ensuring post-mining land use that benefits surrounding communities can significantly reduce operational risks and strengthen social resilience. These practices move sustainability beyond compliance, embedding it in the very fabric of regional development and stakeholder trust. When communities thrive alongside mining operations, sustainability becomes both a moral and commercial imperative.”
“Consulting plays a pivotal role in accelerating ESG adoption by bridging ambition with execution. By integrating ESG principles into mine design, conducting materiality assessments, and quantifying life-cycle impacts, consultants help organisations turn sustainability into a measurable business advantage. They enable miners to navigate complex regulations, access green finance, and enhance investor confidence while improving operational efficiency. As climate risks, investor scrutiny, and global supply-chain benchmarks redefine the economics of mining, sustainability has shifted from being a choice to a strategic necessity. In cement-linked mining, in particular, responsible and data-driven ESG integration is now the true benchmark of long-term competitiveness” he adds.
Biodiversity conservation and supply-chain greening are complementary but distinct fronts in sustainable mining. Mining activities, particularly for construction minerals, have been flagged among the serious threats to local biodiversity through habitat loss, fragmentation, pollution, and hydrological disruption. According to a report by CONBIO / C-Bio (2024) on mining threats in high-level biodiversity conservation policies, the mining of construction minerals causes direct and indirect impacts on biodiversity via erosion, traffic, pollution and water stress. To counter this, mining operations must develop biodiversity action plans, set aside ecological buffers, and use corridors or “green bridges” to maintain habitat connectivity. Meanwhile, the role of green supply chains becomes critical: adopting green procurement, optimising transport logistics, and ensuring traceability of raw materials can reduce emissions and ecological footprints beyond the mine. A study on green practices in Indian mining supply chains observed that firms are increasingly adopting eco-friendly transport, waste handling, and supplier audits as part of a Green Supply Chain Management (GSCM) framework. Together, energy-efficient mining, biodiversity safeguards, and green supply chains form a triad that can lift mining from being seen as a burden to being a contributor to sustainable value creation.
Case studies
To understand how these principles translate into practice, it’s essential to look beyond policy and theory. In the following section, we explore a series of mining case studies that highlight how different organisations—both in India and globally—are integrating sustainability into their operations. From innovative water reuse systems and biodiversity restoration projects to digital mine planning and community-driven rehabilitation, these examples demonstrate that responsible mining is not only achievable but also commercially rewarding.
Conclusion
The path toward sustainable mining in India demands more than compliance — it calls for a transformation of intent, policy, and practice. The future will be shaped by how effectively policy frameworks integrate sustainability at every stage of mining — from exploration to post-closure rehabilitation. India’s National Mineral Policy (2019) already lays the groundwork by emphasising environmental and social responsibility, but translating policy into practice requires strong institutional capacity, inter-departmental coordination, and transparent monitoring. Strengthening the Star Rating system for mining leases, expanding District Mineral Foundations for equitable community development, and enforcing stricter Environment Management Plans will help close the implementation gap. Equally vital is aligning India’s mining roadmap with its Net Zero 2070 commitments, ensuring that the extraction feeding core industries such as cement becomes low-carbon, circular, and regenerative.
The next phase of sustainable mining will be defined by innovation and collaboration. Advancements in remote sensing, real-time environmental monitoring, green chemistry for beneficiation, and AI-driven resource modelling are already redefining what “responsible extraction” means. But technological innovation must move hand-in-hand with collaboration — between government, academia, private industry, and communities. Mining companies must work alongside environmental scientists and local stakeholders to design site-specific solutions that balance resource utilisation with ecological and social regeneration. In doing so, India has an opportunity not only to secure the raw materials that fuel its economic ambitions but also to demonstrate how a nation rich in minerals can mine responsibly, sustainably, and with foresight for generations to come.
– Kanika Mathur
Case Study 1
Sustainable Mining – a Case Study in Canadian Practice
D H Steve Zou and Cui Lin, Mineral Resource Engineering, Dalhousie University, Halifax, Canada, present a case study that explores how sustainable practices, regulatory frameworks and community-driven reclamation transformed a Canadian coal mine into a model of responsible mineral development.
The case study begins with a clear definition of sustainability in mineral resource development.
Mining is essential for modern life, but mineral resources are finite and extraction disturbs the land. Therefore, sustainability means extracting resources responsibly, reclaiming disturbed land, and minimising environmental impact. Every tonne of mineral extracted reduces
what is left for future generations, which makes careful planning critical.
Three pillars of sustainable mining
The study frames sustainability around three aspects: (a) maximise recovery of resources without waste, (b) minimise or remove footprints through reclamation, and (c) limit environmental pollution by proper waste management. Achieving these goals requires planning, technology and cooperation among mining companies, governments and engineers.
Responsibilities of stakeholders
Mining companies must avoid the practice of only extracting high-grade ores, leaving behind lower grades. They must also develop comprehensive reclamation and waste disposal plans. Governments play a regulatory role, ensuring compliance through inspections, enforcement, and closure planning. Engineers carry ethical responsibility, ensuring no economically recoverable ores are wasted, and effluents meet environmental standards.
Canada’s regulatory framework
Canada has evolved strong regulations over time. Provincial governments are responsible for mining regulations within their jurisdictions, while the federal government oversees projects affecting Crown land or the environment. For new mines, companies must submit reclamation and closure plans, along with financial assurance, before permits are granted. Inspections by professional engineers ensure compliance, with penalties for violations.
National programmes supporting sustainability
The Mining Association of Canada launched the Towards Sustainable Mining (TSM) program in 2004, requiring members to operate in socially, economically, and environmentally responsible ways. This industry-wide initiative formalised sustainability as a core practice, ensuring alignment with community and regulatory expectations.
Case study overview
The featured case study is of a coal mine located within 300 meters of a residential area. Historical mining in the 1800s and early 1900s had removed much of the high-grade coal and left unknown underground workings. To recover the remaining deposits, modern surface mining techniques were used. Given its proximity to the town, blasting was not allowed, making noise and dust control priorities.
Mining operations and waste handling
The coal seams, dipping 20°–25° and lying within 80m depth, were mined using a modified open-pit method. Operations progressed east to west, with waste rocks from new pits used to backfill older ones. Topsoil was stripped and stored for later reclamation. Waste rock volume exceeded pit capacity, so excess was stored on the southern side, later integrated into reclamation plans.
Progressive reclamation approach
Unlike traditional methods where reclamation happens after closure, this mine carried out progressive reclamation. Once a pit was filled with waste rock, it was topped with soil and sod. This minimised long-term disturbance and reduced environmental risks like acid drainage. By the end of operations, the disturbed land was contoured to match natural surroundings.
Lessons and broader implications
This Canadian case study demonstrates that sustainable mining is achievable through careful planning, progressive reclamation and community involvement. By integrating environmental protection, waste management, and social benefits into the mining lifecycle, the project left behind usable land and community infrastructure rather than scars. It exemplifies best practice, showing how the mining industry can support both present needs and future generations.
Case Study 2
Sustainable Mining in Practice
This case study published in Journal of Cleaner Production, Elsevier, 2024, investigates sustainable mining practices by evaluating how modern mining operations can integrate environmental responsibility, technological innovation and socio-economic benefits.
Mining remains a cornerstone of industrial growth, yet it poses significant environmental and social challenges. The authors focus on sustainable frameworks that balance mineral demand with ecological and community priorities.
Background context
Globally, mining activities are linked to high energy use, biodiversity loss, water contamination, and greenhouse gas emissions. The case study highlights that the mining sector contributes around four per cent to seven per cent of global greenhouse gas emissions, stressing the urgent need for sustainable interventions. The challenge lies in meeting mineral demand for industries like cement, steel and renewables while cutting environmental impact.
Research objectives
The case study aims to analyse integrated approaches that reduce mining’s environmental footprint. Key objectives include waste reduction, energy efficiency, carbon neutrality pathways, and restoration of ecosystems post-mining. The paper positions sustainability not just as compliance but as a core business strategy, shaping competitiveness and long-term viability.
Methodology
The study combines life cycle assessment (LCA), carbon accounting, and field data from Chinese mining operations to evaluate sustainability indicators. Parameters such as energy consumption, CO2 emissions, water use, and land restoration progress were quantified to understand the true impact of mining activities and the benefits of greener alternatives.
Data insights – emissions
Findings show that average carbon emissions from coal mining activities range between 1.4 to 2.6 tonnes of CO2 per tonne of coal produced, depending on depth, technology, and energy source. Electrification of equipment, renewable integration, and efficiency upgrades were shown to reduce emissions by 15 per cent to 25 per cent, proving that measurable reductions are achievable through targeted interventions.
Data insights – energy and water
The study highlights that traditional coal mines consume about 30–40 kWh of electricity per tonne of coal. Modernisation, including automation and optimised ventilation systems, reduces this figure by nearly 20 per cent. In terms of water, operations averaged 1.2–2.0 m³ per tonne, with closed-loop recycling cutting water demand by up to 50 per cent. These numbers underscore the role of process redesign in sustainability.
Land and ecological restoration
Post-mining reclamation is another focal point. In the case project, progressive reclamation restored over 65 per cent of disturbed land within operational phases, instead of waiting until closure. Vegetation recovery rates exceeded 70 per cent survival in replanted zones, showing how planned rehabilitation can return land to productive or recreational use while mining is still active.
Community and social impact
The study notes that mining companies adopting sustainable practices enjoy stronger community trust. In the featured project, investment in local water treatment and public green spaces created shared value. Job creation was paired with training in renewable and environmental technologies, aligning workforce development with sustainability goals.
Policy and governance
Regulation plays a central role. The authors stress that strict government policies in China—including carbon neutrality targets for 2060—are accelerating the shift toward sustainable mining. Financial assurance for reclamation, environmental audits, and penalties for violations is shaping corporate behaviour.
Conclusion
The case study demonstrates that sustainable mining is practical and beneficial. By integrating emission reduction, water conservation, land reclamation and community engagement, mining can reduce its ecological footprint while ensuring long-term resource availability. The findings suggest that a structured, data-driven approach to sustainability enhances resilience, meets ESG expectations, and sets benchmarks for the global mining industry.
In a research-backed article, Dr SB Hegde examines why carbon-adjusted profitability and LC3 will decide the next set of winners in cement manufacturing.
The Indian cement industry has achieved world-class operational efficiency through lower specific energy consumption, high plant utilisation and a reduced average clinker factor of approximately 67.5 per cent. These traditional measures of operational excellence remain essential. However, they are no longer sufficient. Carbon now carries a measurable financial cost under India’s Carbon Credit Trading Scheme (CCTS) and under European carbon markets. Future leadership will be defined by carbon-adjusted profitability, the ability to generate strong returns while systematically lowering the carbon intensity of every ton sold.
Limestone calcined clay cement (LC3) offers a practical, scalable pathway to achieve this dual objective. By replacing up to 50 per cent of clinker with calcined clay and limestone, LC3 can reduce CO2 emissions by 30–40 per cent while delivering comparable or superior durability performance.
This article examines the technical foundations of LC3, European industrial practices, the emerging Indian carbon market and a concrete roadmap for Indian companies to embed carbon-adjusted metrics and LC3 into daily operations, incentives and commercial strategy.
Limits of traditional operational excellence
For many years, plant performance has been judged primarily by five indicators: specific heat consumption, specific power consumption, kiln and mill utilisation, clinker factor and overall equipment effectiveness. These metrics drove continuous improvement and helped the industry reduce energy use and increase the share of blended cement. Three structural changes have rendered them incomplete as sole measures of success.
First, carbon now carries a real or opportunity cost. Plants that improve volume or lower cash cost while raising or stagnating emissions intensity create a hidden liability that will surface as CCTS trading matures and as green procurement expands.
Second, lower-carbon products such as LC3 and high-performance blended cements are creating differentiated market segments. Customers in infrastructure, real estate and export-oriented construction are beginning to specify embodied-carbon limits.
Third, investors and lenders increasingly treat carbon intensity as a financial risk factor. Traditional KPIs can mask the divergence between short-term cash profit and long-term carbon-adjusted value.
What is carbon-adjusted profitability?
Carbon-adjusted profitability evaluates normal profit after explicit adjustment for carbon performance. A practical expression is:
Carbon-Adjusted EBITDA = Conventional EBITDA – Carbon Cost + Green Premium Income
Carbon cost may be an internal carbon price, the actual cost of purchasing Carbon Credit Certificates under CCTS, or the opportunity cost of high emissions relative to peers. Green premium income arises when customers pay more for verified lower-carbon cement or when the company sells surplus credits. Tracking both conventional and carbon-adjusted profit side-by-side gives management a clearer picture of value creation under evolving market rules.
Table 1. Traditional KPIs versus Carbon-Adjusted Leadership Metrics
Traditional Focus New Leadership Metric Why It Matters
Specific energy consumption Emissions intensity (kg CO2/t cement) Directly linked to future CCTS and CBAM costs
Kiln utilisation Carbon-adjusted contribution margin Reveals true value of incremental volume
Clinker factor Share of lower-carbon products sold (incl. LC3) Measures commercial success of the transition
Power cost per tonne Effective carbon cost per tonne sold Expose hidden liabilities
Absolute EBITDA Carbon-adjusted EBITDA + green premium Aligning profit with future market reality
LC3: Technical foundations and performance advantages
LC3 is a ternary blended cement that typically combines approximately 50 per cent clinker, 30 per cent calcined clay, 15 per cent limestone and 5 per cent gypsum (the classic LC3-50 formulation). The decisive technical advantage is that clay is calcined at 700–850 °C, far below the 1,450 °C required for clinker production. This lower temperature, together with the substantial reduction in clinker content, delivers CO2 reductions of 30–40 per cent relative to ordinary Portland cement (OPC).
Chemistry is synergistic. Calcined kaolinitic clay (metakaolin) reacts with calcium hydroxide from clinker hydration and with limestone to form additional C-A-S-H gel and carboaluminate phases. These phases densify the microstructure, reduce porosity and improve durability.
Field experience shows superior resistance to chloride ingress, sulphate attack and alkali–silica reaction. Early-age strength can match OPC with high-reactivity clays; later-age strengths routinely meet 42.5 and 52.5 grade requirements.
Importantly, LC3 does not require high-purity kaolin. Clays with 40 per cent or even lower kaolinite content can be activated successfully, expanding raw-material availability across India. Calcination can use adapted rotary kilns or dedicated flash calciners, making the technology compatible with existing plant infrastructure and far less capital-intensive than carbon capture.
Economic analyses show that LC3 can be produced at equal or lower cost than OPC in many locations because of reduced energy demand and cheaper clay. Life-cycle assessments consistently report 30–40 per cent lower embodied CO2 per tonne of cement.
Table 2. Comparative profile: OPC versus LC3-50
Parameter OPC LC3-50
Typical clinker content ~95 per cent ~50 per cent
CO2 emissions (relative) Baseline (≈0.85 t CO2/t cement process + fuel) 30–40 per cent lower
Clay calcination temperature Not applicable 700–850 °C
Key hydration products C-S-H, portlandite, ettringite C-A-S-H + carboaluminates
Chloride & sulphate resistance Good Superior
Production cost potential Baseline Equal or lower in most locations
Infrastructure compatibility Existing High (minor adaptations)
In India, commercial adoption has begun in earnest. JK Cement commenced the first commercial production of LC3 in the Indian subcontinent at its Mangrol plant in Rajasthan in 2025 under BIS standard IS 18189.
By early 2026, approximately 2,000 tonnes had been produced and sold, avoiding an estimated 500 tonnes of CO2. JK Lakshmi Cement followed with commercial launch of its Green PRO LC3 grade from the Jaykaypuram plant. As of mid-2026, two producers are supplying LC3 to the market. The first large-scale infrastructure application is the Noida International Airport (Jewar), where LC3 was used in the runway and a building complex, demonstrating full constructability and performance under demanding conditions. These early volumes are still small relative to national cement demand, but they mark the critical transition from pilot to commercial reality. Companies that scale capacity now will be positioned to capture both CCTS credits and emerging green-procurement demand.
Why the shift is accelerating
According to the World Bank’s State and Trends of Carbon Pricing 2026, direct carbon pricing now covers nearly 30 per cent of global greenhouse-gas emissions and generated more than US$107 billion in public revenue in 2025. The average global carbon price stands at approximately US$21 per tonne, although regional prices vary widely.
In Europe, the EU ETS price has traded near €80–85 per tonen in mid-2026. Free allocation for cement is being withdrawn in parallel with CBAM. European producers therefore face a clear signal: every tonne of avoided CO2 improves both compliance and competitiveness. Holcim has scaled calcined-clay production, including Europe’s first dedicated line at Saint-Pierre-la-Cour (France) and a second line in the Czech Republic (2026). Heidelberg Materials, Cementir (FUTURECEM) and others have commercialised low-clinker calcined-clay blends across multiple markets, showing that carbon-adjusted profitability is already reshaping capital allocation in the world’s most mature carbon market.India’s CCTS is now operational. Binding emission intensity targets apply to 186 cement facilities for FY 2025–26 and FY 2026–27. Average required reductions for integrated plants are modest (around 2.7 per cent by FY 2027), yet the direction is clear.
Trading of Carbon Credit Certificates is expected in the second half of 2026, with early prices likely in the `800–1,500 per tonne range. Plants that outperform targets can sell credits; those that underperform must buy them or face compensation. Cement is well positioned to be a net supplier of credits if clinker factor continues to fall through LC3 and other low-clinker systems.
Way forward for India
India starts from a strong baseline, world-class energy efficiency and a clinker factor already lower than the global average. The next competitive frontier is the deliberate reduction of process emissions through clinker substitution at scale. LC3 is uniquely suited to Indian conditions because suitable clays are widely distributed, the technology fits existing kiln and grinding infrastructure, and the resulting product can meet the performance demands of both infrastructure and building construction.
A practical national pathway contains five interlocking elements:
- Standards and acceptance: Accelerated finalisation and promotion of BIS specifications for calcined-clay and limestone–calcined-clay cements will remove a key barrier to commercial uptake. Alignment with European practice (EN 197-5) can facilitate knowledge transfer and export readiness.
- Supply-chain development: Investment in flash calcination capacity and systematic characterisation of regional clay deposits will secure reliable, low-cost feedstock. Existing rotary kilns can be adapted for initial volumes while dedicated calciners are built.
- Incentive alignment: Part of variable compensation for plant managers, sales teams and senior leadership should be linked to emissions intensity reduction and to the volume of lower-carbon products (including LC3) sold. Without this link, traditional volume and cost targets will continue to dominate behaviour.
- Product-level carbon accounting: Reliable measurement of emissions intensity at the individual cement grade level, supported by third-party verification where required, is essential for both CCTS compliance and credible green claims.
- Demand-side pull: Green public procurement policies that specify maximum embodied-carbon thresholds for major infrastructure projects will create a predictable market for LC3 and other low-carbon cements, accelerating scale and cost reduction.
Companies that treat LC3 as a strategic product line rather than a niche offering will be better positioned to generate surplus Carbon Credit Certificates, capture any emerging green premium, and protect margins as carbon costs rise.
Organisational changes required
Technical capability alone is insufficient. Three organisational shifts are required.
Daily management: Emissions intensity must appear on the same daily and monthly dashboards as heat consumption, power consumption and utilization. Plant reviews should examine both conventional and carbon-adjusted results.
Incentives: A meaningful portion of bonuses for plant heads, technical teams and sales leadership should be tied to lower emissions intensity and successful commercialisation of LC3 and other low-carbon grades.
Commercial approach: Sales teams need clear volume and pricing targets for lower-carbon products, supported by technical service that helps customers specify and place the material correctly. Without commercial pull, excellent technical performance remains under-utilised.
Table 3. Three-stage roadmap to carbon-adjusted profitability
Time Horizon Priority Actions Expected Outcome
Next 12 months Add emissions intensity to plant dashboards; establish internal carbon price; initiate LC3 pilot production and customer trials Visibility and early organisational learning
12–24 months Revise incentive systems; scale LC3 and other low-carbon grades to key accounts; secure third-party verification capability People and sales aligned with carbon goals
24–36 months Embed carbon-adjusted metrics in board reporting and capital allocation; expand calcined-clay capacity Full system integration and competitive advantage
Questions senior leaders should ask
Boards can accelerate the transition by insisting on answers to a short list of questions:
• Is our carbon-adjusted profit improving, stable or declining relative to conventional EBITDA?
• Did recent volume growth improve or worsen our emissions intensity?
• What share of sales already comes from lower-carbon products, including LC3, and what is the trajectory?
• How exposed is our capital expenditure plan to rising carbon costs under CCTS and potential CBAM-related requirements?
• Do our incentive systems still reward only volume and cost, or have they been updated to include carbon performance?
Treating carbon with the same seriousness as energy cost or kiln utilization does not diminish operational excellence; it expands the definition of excellence to match the new competitive reality.
Looking ahead
By 2030 the gap between leading and lagging cement companies will not be decided by who records the lowest specific heat consumption. It will be decided by who delivers the strongest carbon-adjusted profits.
Absolute emissions may still rise as national production grows. That is not the issue. Companies that reduce intensity year after year and successfully sell cleaner products will pull ahead in both domestic and export markets. Those that do not will fall behind, even if their traditional efficiency numbers look strong.
Operational excellence built the Indian cement industry. It remains the foundation. It is no longer the complete picture. Carbon-adjusted profitability is the clearer measure of success.
LC3 is not a distant technology. It is available now. It cuts CO3 by 30–40 per cent, works with existing plants, and is already in commercial production in India. Companies that treat it as a strategic product, not a pilot, will protect their margins and generate tradable credits.
Leaders who act now will place carbon metrics on daily dashboards, link incentives to intensity reduction and LC3 sales, invest in calcined-clay capacity, and build commercial capability to sell lower-carbon products. They will shape the next chapter of the industry.
References
- World Bank. (2026). State and Trends of Carbon Pricing 2026. Washington, DC: World Bank Group.
- International Carbon Action Partnership (ICAP). (2026). India Carbon Credit Trading Scheme – Status and Coverage. Berlin: ICAP.
- Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency. (2025). Greenhouse Gases Emission Intensity Target Rules, 2025. New Delhi: Government of India.
- Scrivener, K., Martirena, F., Bishnoi, S., & Maity, S. (2018). Calcined clay limestone cements (LC3). Cement and Concrete Research, 114, 49–56.
- RMI. (2024). The Business Case for LC3. Rocky Mountain Institute.
- European Commission. (2026). EU Emissions Trading System – Allowance Price Data and Free Allocation Phase-out Schedule. Brussels.
- Holcim. (2025–2026). Scaling Calcined Clay for Sustainable Building – Corporate Updates on European and Latin American Capacity. Zurich: Holcim Ltd.
- LC3 Project / EPFL. (2026). LC3 – A Guide to Best Practices for Scalable, Affordable and Sustainable Low-Carbon Building. Lausanne: École Polytechnique Fédérale de Lausanne.
- Business Today / Industry Reports. (2026). First Large-Scale LC3 Application at Noida International Airport, Jewar. New Delhi.
- NITI Aayog / Industry Analyses. (2026). Roadmap and Baseline Performance Indicators for the Indian Cement Sector. New Delhi.
- Springer / Innovative Infrastructure Solutions. (2026). LC3 Systems: A Review of Chemistry, Performance, Durability and Sustainability toward Market Adoption.
- Cementir Holding / Industry Sources. (2025–2026). FUTURECEM and Related Low-Clinker Technologies in Europe.
- Climate Risk Horizons & Independent Analyses. (2026). Assessment of Emission Intensity Targets under India’s CCTS for Cement and Other Hard-to-Abate Sectors.
- GCCA / TERI. (Various years). Decarbonization Roadmaps for the Indian Cement Industry.
- EN 197-5:2021. Cement – Part 5: Portland-composite cement CEM II/C-M and Composite cement CEM VI. European Committee for Standardization.
Concrete
More Oversight Makes Cement Plants Less Safe
Published
3 hours agoon
August 28, 2026By
admin
Dijam Panigrahi makes a counterintuitive but data-backed argument that routing every sensor alert through human approval does not make cement plants safer.
India’s cement industry has spent the last two years wiring kilns, mills and coolers with sensors and automated control systems, and the safety case for doing so is strong on paper. Contract workers still make up the majority of the industry’s workforce, and fatal accidents remain a recurring problem. The Indian National Cement Workers Federation has noted that around 83 per cent of workers in the sector hold precarious positions, a fact that resurfaced after an oxygen cylinder explosion killed three contract workers at a plant in Chhattisgarh.
Industry tallies compiled by IndustriALL found cement plants recorded at least seventeen accidents in one year with 21 workers killed, and ten accidents the following year with nine killed, most of them contract staff. Automated monitoring, in theory, closes that gap. A sensor never gets complacent and never skips a check because a shift is short staffed.
However, plants that respond by routing every anomaly reading to a person for approval are quietly building a system that fails the same way understaffing does. When operators receive dozens of flagged deviations a shift, most of them minor, they learn a simple lesson: the fastest way through the queue is to approve without reading closely. The safety benefit disappears, not because the technology failed, but because the humans supervising it adapted to the volume.
Why alerts get ignored
A study cited by manufacturing technology publisher Applied SmartFactory found more than 95 per cent of alarms in a semiconductor fab were low priority, and only about 4 per cent ever triggered an action, with just 100 out of 5,000 alarms accounting for 70 per cent of all alarm activity. The mechanism is the same whether the trigger is a vibration sensor or an AI model flagging a kiln temperature swing. Once the ratio of noise to signal crosses a threshold, workers stop treating the system as a decision aid and start treating it as a formality to clear.
The scale of AI deployment underway makes this more than a theoretical risk. Stanford’s 2026 AI Index Report found organisational adoption of AI has reached 88 per cent, even as documented AI incidents rose to 362 in 2025, up sharply from 233 the year before, according to analysis of the report. The Index also found only about a third of organisations have adopted a formal governance framework, with NIST’s AI Risk Management Framework cited by 33 per cent and ISO/IEC 42001 cited by 36 per cent.
Most manufacturers are deploying monitoring systems faster than they are building the judgment for when a flagged event actually needs a person’s attention. In India, plants run by JK Cement have begun pairing CCTV feeds with AI to define safe zones around heavy machinery, a promising direction that still depends on operators trusting and reading the alerts the system generates.
A three-tier model for cement plant
The fix is not less monitoring or more monitoring. It is classifying decisions by risk and by novelty, rather than treating human oversight as a single switch that is either on or off. A workable model sorts factory floor events into three tiers.
The first tier, proceed, covers deviations the plant has seen before that fall within known safe bounds, such as a kiln feed rate adjustment within an established range. These should run without a stop for approval, because routing them to a person only trains that person to click through.
The second tier, pause, covers events that are unusual but not yet dangerous, such as a vibration reading trending toward a limit or a fuel blend shifting outside its typical mix. These warrant a brief human check before the system proceeds, giving an operator the chance to apply judgment the model does not yet have.
The third tier, escalate, covers events that are both high risk and unfamiliar, such as a pressure reading combined with a temperature spike that has no close precedent in the plant’s history. These should stop the process entirely and require a decision from someone with the authority to shut down a line.
Who should set the threshold
Where these tiers get drawn matters as much as the framework itself. Threshold setting is frequently handed to the vendor supplying the monitoring software or to a plant’s IT department, both of which understand the technology but not the specific tolerances of a given kiln, mill or line. Operations staff, who know that a particular grinding unit runs hotter under monsoon humidity or that a calciner behaves differently after a refractory reline, are better positioned to calibrate what counts as routine on their own equipment.
Handing threshold ownership to operations does not remove IT or vendors from the process, but it puts the calibration decision closest to the people who live with its consequences on the floor.
Signals that oversight is actually working
A few concrete indicators reveal whether a monitoring setup is functioning as intended or simply providing the appearance of safety. The escalation rate over time is the first: a rate that stays flat or climbs slowly as operations mature is healthy, while one that spikes and then falls sharply often means operators have started overriding the system rather than engaging with it. Time to resolution is the second: escalations that take progressively longer to close suggest fatigue or confusion about ownership, not diligence. The third, and most telling, is how accurate the system’s own uncertainty estimates turn out to be, meaning whether events flagged as high risk actually correlated with real incidents, and whether events waved through stayed incident free. A system whose escalations do not track with actual outcomes trains operators toward the same complacency that unmonitored equipment produces.
None of this argues against automation in Indian cement manufacturing, where a labor structure built on contract work and a track record of serious accidents make better monitoring an urgent need. It argues for treating human oversight as a design problem with three distinct settings, rather than a single
dial turned up whenever a plant wants to look safer on paper.
About the author:
Dijam Panigrahi, Co-founder and COO, GridRaster, is a spatial computing platform for industrial enterprises and manufacturers.
Concrete
The biggest gap arises from inconsistent leadership
Published
3 hours agoon
August 28, 2026By
admin
Anuj Kumar Mathur, Safety Consultant, stresses on the importance of closing the enduring gap between what safety systems say on paper and what actually happens on the plant floor.
Robust safety manuals, certified PPE and digital monitoring systems mean little if the culture on the plant floor does not enforce them. Safety Consultant Anuj Kumar Mathur has spent enough time in high-risk operations to know precisely where that gap opens and why it persists. In this exclusive interaction, he suggests feasible ways to strengthen the safety culture at a manufacturing unit.
Having led safety across high-risk fuel operations, what lessons can the cement industry adopt to strengthen its safety culture beyond regulatory compliance?
Beyond regulatory compliance, the cement industry should embed visible leadership commitment, proactive risk assessment, process safety management, strong contractor control, near-miss learning, and employee engagement to build a resilient safety culture that prioritises prevention, operational discipline and continuous improvement over mere compliance.
As cement plants become increasingly automated and digitally connected, how should organisations redefine their approach to process safety and operational risk?
As cement plants become increasingly automated, organisations should integrate process safety with digital risk management by strengthening cybersecurity, real-time monitoring, predictive maintenance, management of change and workforce competency to ensure safe, reliable and resilient operations.
What are the most common gaps between having robust safety systems on paper and achieving consistent safety performance on the ground?
The biggest gap arises from inconsistent leadership commitment on ground, weak safety culture, inadequate supervision, poor risk communication, insufficient workforce engagement specially, ineffective training and failure to translate procedures into disciplined execution, accountability and continuous monitoring at the operational level.
How can cement manufacturers better integrate contractor safety, leadership accountability and workforce behaviour to build a truly zero-harm workplace?
Manufacturers can achieve a zero-harm workplace by enforcing uniform safety standards for employees and contractors, strengthening leadership accountability, promoting proactive hazard reporting, enhancing competency through continuous training and fostering a culture where safe behaviour is recognised, expected and consistently practiced
What emerging technologies and safety practices do you believe will have the greatest impact on risk prevention in cement manufacturing over the next decade?
Artificial intelligence, IoT-enabled monitoring, predictive analytics, digital twins, wearable safety devices, drones, robotics and advanced process automation will significantly enhance hazard detection, predictive maintenance, real-time risk management, and worker protection, enabling safer and more resilient cement manufacturing.
IoT-enabled monitoring is the use of interconnected sensors and smart devices to continuously collect, transmit and analyse real-time data from equipment, processes and the work environment. This enables early detection of unsafe conditions, equipment failures, or abnormal operating parameters, allowing timely intervention before incidents occur.
In cement manufacturing, IoT-enabled monitoring can be used for:
• Monitoring kiln, crusher, and mill temperatures, pressures, and vibrations.
• Detecting overheating of bearings and motors to prevent failures.
• Monitoring dust concentration, gas leaks (CO, SO2, NOx), and oxygen levels.
• Tracking conveyor belt alignment and condition.
• Monitoring structural health of silos and
storage facilities.
• Tracking worker location and exposure to hazardous environments using wearable devices.
• Providing real-time alerts and predictive maintenance recommendations.
Benefits:
• Early hazard detection
• Reduced equipment downtime
• Improved process safety and reliability
• Lower maintenance costs
• Enhanced regulatory compliance
• Better decision-making through real-time data and analytics
In simple terms, IoT-enabled monitoring transforms periodic manual inspections into continuous, real-time surveillance of plant safety and equipment health.
CarbonStrong Raises Rs 125 Million To Scale Low Carbon Cement Tech
Protect Your Margins
More Oversight Makes Cement Plants Less Safe
The biggest gap arises from inconsistent leadership
The Future of Vertical Material Handling
CarbonStrong Raises Rs 125 Million To Scale Low Carbon Cement Tech
Protect Your Margins
More Oversight Makes Cement Plants Less Safe
The biggest gap arises from inconsistent leadership

