The Future of Metal Mining Industry
The Future of Metal Mining Industry
In terms of steel and alumina production and conversion costs, India has a slight advantage
Due to its advantageous position, export potential can grow along with the rapidly expanding Asian markets. According to estimates, there were 1,425 reporting mines in India as of FY22, of which 525 reported for metallic minerals and 720 reported for non-metallic minerals.
The expansion of the mining sector is crucial for the overall industrial development of a country since minerals are priceless natural resources that are crucial raw materials for key industries. The abundance of various metallic and non-metallic mineral deposits in India provides a strong foundation for the expansion and development of the nation's mining industry. India is mostly self-sufficient in terms of mineral fuels like coal and lignite as well as metallic resources like bauxite, chromites, iron ore, and lignite. The sector has the potential to have a substantial impact on GDP growth, foreign exchange profits, and provide end-use industries with a competitive edge by supplying vital raw materials at competitive prices, including those in the building, infrastructure, automotive, and electrical sectors, among others.
Growth is being fueled by an increase in automotive and infrastructural construction. The sectors' expansion is also being aided by the power and cement industries. The demand for iron and steel is anticipated to remain strong given the high growth expectations for the residential and commercial building industry.
Current Opportunities for Metal Mining Industry
The current chance to profoundly alter how we move is the consequence of developments in three key areas: regulation, consumer behaviour, and technology.
Regulation. Incentives and rules have been implemented by governments and towns to hasten the transition to sustainable mobility. Global regulators are setting stricter pollution targets. The European Union unveiled its "Fit for 55" programme, which aims to coordinate climate, energy, land use, transportation, and taxation policies in order to cut net greenhouse gas emissions by at least 55% by 2030. The Biden administration also unveiled a target of 50% electric vehicle (EV) usage by 2030. Most governments are also providing EV subsidies in addition to such mandates.
consumer conduct. Alternative and environmentally friendly modes of transportation are becoming more popular, which is altering consumer knowledge and behaviour. Inner city trips with shared bicycles and e-scooters have risen 60 percent year-over-year and the latest McKinsey consumer survey suggests average bicycle use (shared and private) may increase more than 10 percent in the post-pandemic world compared with pre-pandemic levels (See also "The future of micromobility: Ridership and revenue after a crisis," July 2020). Additionally, consumers are growing more open to options for shared mobility. According to a survey, more than 20% of Germans claim they already use ride-sharing services (6% do so at least once per week), which can help cut down on emissions and car miles travelled.
Technology. As they develop new concepts for electric, connected, autonomous, and shared mobility, industry players are accelerating the pace of innovation in automotive technology. More than $400 billion in investments have been made in the sector over the last ten years, with about $100 billion of them coming in since the beginning of 2020. Electrifying mobility, linking vehicles, and autonomous driving technologies are the main focuses of all of this funding (see also "Mobility's future: An investment reality check," April 2021). These technological advancements will aid in EV cost reduction and establish electric shared mobility as a viable substitute for automobile ownership.
DEVELOPMENTS/ INVESTMENTS
The following are some recent investments and advances in the metals and mining industry:
India's mining GDP climbed from Rs. 739.90 billion (US$ 8.98 billion) in the fourth quarter of 2020 to Rs. 913.03 billion (US$ 11.09 billion) in the first quarter of 2021, according to data from the Ministry of Statistics and Programme Implementation (MOSPI).
When compared to the level in December 2021, the mining and quarrying sector's index of mineral output for the month of December 2022 was 107.4, an increase of 9.8%.
The production of coal, refinery products, fertilisers, steel, electricity, and cement industries were the main drivers of the composite index of the eight core industries in FY23 (through December 2022), which was 152.2.
The metallurgical sector received US$ 17.09 billion in FDI between April 2000 and September 2022, followed by the mining ($ 3.405 billion), diamond and gold jewellery ($ 1.219 billion), and coal production ($ 27.73 million) sectors.
ArcelorMittal-Nippon Steel will invest Rs. 60,000 crore (US$ 7.3 billion) in February 2023 to increase its Hazira steelmaking capacity from 9MT to 15MT annually.
At its headquarters in Hyderabad, NMDC inked a contract in February 2023 for joint research on "Feasibility Studies for Preparation of Fused Magnesia from Kimberlite Tailings" with CSIR-IMMT, Bhubaneswar.
Electric engines will power passenger cars in the future
The second half of 2020 was the turning point in the adoption of passenger electric vehicles (EVs), when EV sales and penetration accelerated in important areas despite the COVID-19 pandemic-related economic crisis. This innovation was first seen in Europe, where legislative requirements including tighter emissions limits for OEMs and large consumer subsidies allowed EV adoption to reach 8%.
The cessation of sales of vehicles with internal combustion engines (ICEs) has been debated for 2021. Several nations have proposed accelerated schedules for ICE sales bans in 2030 or 2035, and new regulatory targets in the European Union and the United States aim for an EV share of at least 50% by that time. A number of OEMs have announced their plans to discontinue developing new ICE platforms and models, and many more have established a deadline for the end of ICE vehicle production. With more than 45 percent of car buyers considering an EV, consumer attitudes have also changed in favour of sustainable mobility.
Final words
We are progressing towards decarbonizing the transportation industry, and electric vehicles are on the horizon, but more must be done. The pace of the industry's evolution is unmatched. Involving players in the energy, infrastructure, mobility, and automotive industries, it is also spanning industry boundaries. Despite being a significant challenge, it offers both established businesses and newcomers a great chance to play a key part in developing new, multi-billion-dollar sectors and jobs. Integrating sustainability with economic viability will need the use of cutting-edge technologies and well-planned mobility transformations. Europe may become a global role model due to its diverse mobility landscape, emphasis on sustainability, and established technological leadership.
Furthermore, By implementing significant legislative efforts, the Indian government has also contributed to the growth of the country's mining and metals industries. In February 2019, the government established the National Mineral Policy, which has since strengthened regulation and enforcement, increased transparency, balanced social and economic growth, and sustainable mining practises. The policy elevates mining operations to an industry category and increases support for the private sector.
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