The Indian Mining sector is not just as a pillar of economic growth but also a vanguard of sustainability hence all stakeholders have a shared commitment to shaping the future of this sector.
As we navigate through the intricate landscape of mineral extraction, it is incumbent upon us to strike a delicate balance between meeting the burgeoning demands of our economy and downstream industries and safeguarding the delicate ecological equilibrium.
Minerals serve as essential raw materials for fundamental industries, and the growth of the mining industry is vital for a nation’s overall industrial development. India plays a significant role as a producer of crucial minerals, holding 3,527 mining leases covering 40 key minerals and encompassing a total lease area of around 315,986 hectares. India’s mining industry holds the potential to significantly impact the country’s GDP growth. The Indian mining sector contributes approximately 2.2-2.5% to the country’s GDP, employing nearly 1.3 million individuals directly. Thus, this sector is a key player in our country’s employment landscape.
In FY2022–23, the total value of mineral production, (excluding atomic, fuel minerals, and minor minerals), was estimated at Rs 1,18,246 crore, indicating a decline of ~11% compared with the preceding year. Mineral production was reported from 19 states, with bulk production coming from seven states, contributing appx 97% led by Odisha, Chhattisgarh & Rajasthan. Thus, the mining industry is important not only for national economic growth but also plays a critical role in the growth of State GDP.
Mineral exploration is the lifeblood of our mining endeavours. It is not merely about extracting resources; it is about understanding the geological tapestry beneath our feet. As we strive to enhance exploration, we must invest in cutting-edge technologies, from remote sensing to artificial intelligence, to unlock the true potential of our mineral wealth. This will not only boost our economic standing but also ensure the responsible use of our natural resources.
We need to focus on enhancing mineral exploration and production, underscoring the indispensable role of innovation in our industry. Mineral resources, the lifeblood of industrial progress, are finite, and as responsible stakeholders, we must harness the power of technology and collaborative strategies to maximize the efficiency of mineral exploration and extraction processes.
Operations, digitization and decarbonization, represent the transformative wave that is sweeping through the mining industry. We stand at the brink of a technological revolution that has the potential to redefine the way we extract, process, and manage minerals. Also, with increasing demand for critical and energy minerals, we as a nation must fast track our goal of becoming self-reliant by building integrated mining and mineral processing supply chains for these minerals.
The Ministry of Mines has already launched the list of 30 critical minerals and two tranches of their auctions. Domestic exploration and production would help in securing their supplies for forecasted demands providing immunity from supply chain shocks and price fluctuations.
While these are holistic approaches that are integrating into our mineral value chains, the core aspects of financing mining operations, land availability for afforestation, augmentation of logistics infrastructure and conversion of resources into reserves remain at the helm and we must collectively work together for their augmentation to support our journey ahead.
India is witnessing a wave of start-ups, we must harness their potential for technological upgradation, mineral exploration and advanced solutions that will benefit the industry in increasing production and productivity.
The author is Mentor, FICCI Mining Committee
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