Green Moves: Adoption of sustainable mining practices

The mining industry contributes significantly to greenhouse gas emissions, acc­ounting for 4-7 per cent of the total emissions. The government has thus set goals to address the associated environmental concerns. Sustainable mining alternatives are the­refore being adopted by PSUs under the Ministry of Coal. An investment plan of Rs 2,500 billion has been chalked out by the PSUs for clean coal technologies by 2030. They are also focusing on expanding the use of renewable energy sources through their environmental, social and governance (ESG) practices. Other im­portant sustainable development trends in the sector include the deployment of sustainable mining equipment, water and wastewater management in operations, the use of more efficient technologies, and aff­or­estation efforts.

Sustainable mining equipment

The two types of mining – opencast and underground – offer a large market for mining equipment. Opencast mining has been growing more than underground as the latter is more expensive and less sustainable. It contributes around 95 per cent of Coal India Limited’s (CIL) production and around 85 per cent of Singareni Colli­eries Company Limited’s, which are among the key players in the sector. This offers opportu­nity for the use of sustainable mining equipment. To this end, Ko­matsu India has introduced off-highway trucks compatible with bio­diesel be­ing manufactured in Oragadam near Chen­nai. It has also developed diesel-powered machines compatible with B20 biofuel that include excavators, bulldozers, wheel loaders, motor gra­ders and du­mp trucks. This is a big move as it can lead to a substantial reduction in the carbon footprint of the sector. There are also concerted eff­orts being made in research and ex­ploration of alternative fuels to run mining eq­uip­ment. Furthermore, the use of biofuel is inc­en­tivised by the Goods and Servi­ces Tax Council’s recent decision to redu­ce tax rates on ethyl alcohol from 18 per cent to 5 per cent. This would push original eq­ui­pment manufacturers to manufacture and supply mining fleet with biodiesel compatibility.

Recently, there has been a shift to electrification of mining equipment. Companies are increasingly deploying more electric vehicles (EVs) for mining operations. Hin­dustan Zinc Li­mited (HZL) launched passenger EVs for both underground operations and surface mobility for employees in March 2022. It has added el­ectric scooters for its security staff and underground services for mines. These are in addition to HZL’s collaborations for the introduction of battery EVs along with the in-house solar power that will be used for charging EVs. Ex­ploration of hydrogen fuel cells is also under way in the sector.

Shift to renewable energy sources

Among the recent trends in the mining sector is the push to renewable sources of energy at mi­ning sites. Recently, the Indian Bureau of Min­es undertook a sample survey of 293 mines for the installation of renewable energy plants across the mi­ning sites in the country. The total install­ed rene­wable energy plant capacity at these si­tes is 583 MW (wind and solar combined).

In a related development, coal and lignite companies have planned an investment of over Rs 150 billion in 5,560 MW of re­newable energy capa­city to meet the goal of 500 GW of non-fossil energy capacity by 2030. For instance, Neyveli Lignite Corporation of India Limited has ventured into the renewable energy sector through wind- and solar-based power plants. It is the first public sector entity in the country to achieve solar power generation capacity of more than 1 GW. It also aims to ac­hie­ve a total renewable energy capacity of 6,031 MW by 2030. Simi­larly, CIL is developing solar power projects to me­et its en­ergy requirements. It has set a road­map for 3 GW of solar power generation by 2023-24. It also plans to invest around Rs 426 billion in green energy and low-emission infrastructure for fossil fuel mining to achieve In­dia’s net zero targets.

Other sustainable initiatives 

Water resource management is gradually getting better with associated mandates in the sector. These mandates pertain to the processes of water abstraction, re­p­leni­sh­ment, and water qua­lity monitoring. De­w­a­tering limit, bo­re­well water withdrawal limit, and installation of monitoring structures and equipment are the mandates for water abstraction. The manda­tes for water rep­lenishment include the construction of replenishment structures, assessment of reple­nishment quantity, and periodic maintenance auditing. Tech­nology adoption is also being un­dertaken for ensuring efficient wa­ter usage by companies. The operational si­mulation model and real-time data acquisition system that tra­ck the value chain of the mining pro­cess are some of the solutions that have been used. Fur­thermore, many mining wa­s­tewater treatment solutions are being implemented by mining companies. These include precipitation pro­cesses with pretreatment, neutralisation and metal removal, membrane technologies such as nanofiltration and electrodialysis, ion exchange, and concentration technologies.

Another sustainable initiative is the greening of around 2,400 hectares of land by PSUs. The aim is to plant 0.6 million sap­lings of local species in and around coalfield areas. As of June 2022, coal and lignite PSUs have planted more than 100 million trees and saplings. Over 0.1 million se­edlings are being distributed by these co­mpanies among locals along with developing grasslands in mining areas with high-tech cultivation. These initiatives would have a major impact given the large eco­system these companies maintain. In an­other de­velopment, companies are pushing for sustainable mining through ESG initiatives. This is reflected in Ve­da­nta’s commitment to achieving net zero by 2050 by advancing its ESG performance in the sector. Similarly, Tata Steel targets to reduce emissions by around 30 per cent per tonne of crude steel by 2030.

The way forward

The mining industry is making headway in su­stainable practices with systemic changes de­spite being a fragmented sector. An ambitious roadmap is being created by the government to meet the goal of net zero carbon emissions. The Fede­ra­tion of Indian Chambers of Commerce and Ind­ustry and the National Min­eral De­velop­ment Corporation have also stress­ed upon the reduction of 30-40 per cent carbon emissions by mines and the mineral industry by 2030. Going forward, te­ch­nologies such as coal bed methane and surface coal gasification will reduce em­issions, improve the performance of coal mines and decarbonise the sector.

The government has set an ambitious target to augment non-fossil fuel capacity to 500 GW while ensuring 50 per cent energy requirements are met by renewables by 2030. This would re­quire energy storage sy­stems that are critical to integrate solar and wind power into the grid and support the power system.

More­over, there are other targets such as EV fleet adoption. HZL pla­ns to replace its diesel-run vehicles and equipment with battery EVs across its eight mines in the next five years. There is a huge potential for the mining of beaches, minerals and rare earth metals in India. Alth­ou­gh with the entry of the private sector banned in the rare earth metals segment, the onus of driving the growth of the se­gment lies on the government. Further, the lack of in­vestments in re­search and de­velopment to develop sus­tainab­le extraction technologies could de­celerate the pace of sustainable mining.