India’s mining, metals sector needs technology shift to strengthen supply chains: Report

India’s mining and metals industry needs to improve technology adoption, resource efficiency and supply-chain resilience to remain competitive as cost pressures, lower ore grades, geopolitical risks and decarbonisation reshape the sector, according to a FICCI-KPMG report released on Thursday.

The report, Mineral Extraction to Metals Production: India's Technology Pivot for Competitiveness, said India’s mining and metals sector is entering a key phase of growth, supported by domestic demand, infrastructure expansion and the government’s Atmanirbhar Bharat and Viksit Bharat 2047 goals.

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It said competitiveness will increasingly depend on how efficiently companies use existing resources and convert them into higher-value products, rather than only on production volumes.

"(In this scenario) the sector's future therefore depends not only on how much India can produce, but on how efficiently it can produce, unlock higher value from existing operations, build more resilient mineral supply chains, and create sustainable competitive advantage -- competitiveness is now defined across the end-to-end value chain," the report said.

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The report also called for greater use of low-grade ores, slimes, tailings, scrap and other underutilised materials as feedstock. Such measures can improve resource efficiency and support greater circularity across the sector.

The report was launched by Union Minister of State (Independent Charge) for Science & Technology and Earth Sciences Jitendra Singh at the 3rd FICCI Conference on ‘Digitalization, AI, Automation & Technology Integration in Mining & Metals: Enhancing Competitiveness of the Sector'.

Ranjan Dhar, Co-Chair, FICCI Steel Committee and Director & Vice President - Sales & Marketing, AMNS India, said the industry needs sustained efforts and wider technology adoption to meet India’s long-term development goals.

"There is an immense amount of data available across the industry, and this data can be used to propel ourselves towards efficiencies that can take the industry to the best global standards, not just the best in India," he said.

The industry’s growth targets will add to the need for greater efficiency across the value chain. Steel capacity is envisaged to reach 500 million tonnes, while aluminium production is expected to grow nearly seven-fold and copper demand is projected to more than double by FY2047.

FICCI said India’s global competitiveness will therefore depend not only on the volume of minerals extracted and metals produced, but also on how efficiently the country converts its mineral resources into high-value, resilient and increasingly circular material supply chains.