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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

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Cement Makers’ Margins To Fall Rs 50-75 Per Tonne Amid West Asia Conflict

Crisil Sees Margins Easing Despite Steady Demand

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Crisil said operating margins of Indian cement manufacturers are expected to decline by Rs 50-75 per tonne (t) this fiscal to Rs 925-950 per t due to higher input costs triggered by the West Asia conflict. The analysis covered 18 cement companies accounting for nearly 90 per cent of India’s domestic cement capacity and noted margins had improved sharply to around Rs 1,000 per t in fiscal 2026.

Crisil noted that the reduction would be driven mainly by higher power and fuel costs, which account for about 30 per cent of total costs, as petcoke and imported coal prices have surged amid geopolitical uncertainties. Freight costs, which account for about a quarter of total costs, are also expected to remain elevated because of higher diesel prices. The impact on profitability is likely to be more pronounced in the first half of the fiscal year before easing commodity prices moderate cost pressures later.

The rating agency said steady domestic demand and strong balance sheets should keep credit profiles stable despite the moderation in margins. Green energy currently accounts for 35-40 per cent of the sector’s total electricity consumption and is expected to partly cushion higher energy costs. Operating cash flows are likely to remain resilient, supported by projected 6-7 per cent growth in cement demand this fiscal.

Crisil highlighted that demand growth will be driven primarily by infrastructure spending, which meets about one-third of sector consumption, and by a nearly 18 per cent higher budgetary allocation for core ministries that should support project execution. Weaker rural housing demand amid pressure on agricultural incomes from a possible below-average monsoon may be offset by improved urban housing demand supported by favourable home-loan rates and a strong pipeline of Pradhan Mantri Awas Yojana-Urban projects. Ongoing capacity additions will keep capital expenditure elevated and may lift net debt to EBITDA to between 1.2 and 1.4 times from around 1.0 time last fiscal, though ratios are expected to remain healthy.

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UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

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UltraTech Cement’s board of directors has approved raising Rs 5,000 crore (Rs 50 bn) through non?convertible debentures issued in rupees.

The finance committee cleared a proposal to issue up to 500,000 fully paid, unsecured, listed, rated, redeemable, rupee?denominated, non?convertible, non?cumulative debentures of Rs 1 lakh each (Rs 0.1 mn each), aggregating to the Rs 5,000 crore programme.

As of June 2026 the firm reported net debt of Rs 15,875 crore (Rs 158.75 bn) and said its capacity expansion projects under execution are backed by capital expenditure of about Rs 17,000 crore (Rs 170 bn) over the next two to two?and?a?half years.

UltraTech spent Rs 9,500 crore (Rs 95 bn) on capital expenditure in financial year 2026 and in April the group crossed 200.1 mn tonnes per annum of domestic grey cement capacity and 205.5 mn tonnes per annum of global capacity.

The chief financial officer indicated the company would take consolidated capacity beyond 242 mn tonnes per annum, with grey cement capacity reaching 212.7 mn tonnes per annum by the end of financial year 2027. He noted the net debt?to?earnings before interest, taxes, depreciation and amortisation ratio stood at 0.87 times as of June 2026 and the company was confident of ending financial year 2027 with the ratio below one time.

In the first quarter of financial year 2026?27 UltraTech’s net profit attributable to owners rose 16.8 per cent year?on?year to Rs 2,599.3 crore (Rs 25.993 bn) and revenue from operations increased 15.9 per cent to Rs 24,648.20 crore (Rs 246.482 bn). The board approval is expected to complement internal cash flows as the company advances its expansion programme.

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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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