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Mining Sector Can Gain 15 per cent Efficiency Via Digitalisation

2025-09-01

India’s mining and metals sector could boost efficiency by 10 to 15 per cent through digitalisation and automation—achieving gains comparable to those previously pursued through import safeguard duties. This was the key insight shared by industry leaders at FICCI’s second Conference on Automation, Digitalisation & Technology Integration in Mining & Metals, coinciding with the release of the joint FICCI–CRISIL report “Intelligent Mines & Metal Plants.”

With global competitiveness tightening and sustainability benchmarks rising—especially ahead of the European Union’s impending carbon border adjustment mechanism—executives stressed that digital transformation is no longer optional.

Nagendra Nath Sinha, former Steel Ministry Secretary and now MD at Rodic Digital & Advisory, underscored that intelligent use of technology is a strategic necessity:

“Efficiency gains of 10–15 per cent can be achieved—similar to what was once expected from safeguard duties—through advanced digital transformation.”

The report highlights a surge in demand for coal, iron ore, bauxite, zinc, and critical minerals such as lithium, copper, cobalt, and nickel. These trends are being driven by infrastructure expansion and the global push for energy transition. However, resource depletion, environmental concerns, and price volatility pose persistent challenges, necessitating urgent technological adoption.

Sanjay Singh, Director of Strategy and External Relations at Jindal Steel and former Steel Ministry Secretary, noted that India’s steel demand is projected to nearly double by 2030.

“Sustainable, low-emission steel production must be prioritised through AI, robotics, and automation, until scalable solutions like green hydrogen are realised.”

Arun Misra, CEO of Hindustan Zinc and Executive Director of Vedanta Ltd, added that genuine digitalisation should go beyond visual dashboards:

“True digitalisation delivers real-time, actionable insights—such as predictive drilling and GIS-based mine boundary management—that can transform operations.”

Key enabling technologies discussed at the conference included artificial intelligence, IoT sensors, robotics, data analytics, and low-code platforms. Safety-focused tools such as driver fatigue monitors and slope stability radars were cited as immediate impact applications.

Speakers also cautioned that leadership ownership is essential for success. Sinha emphasised that transformation cannot be relegated to IT departments alone:

“CEOs and top management must actively lead, monitor, and remove implementation barriers. Upskilling the workforce is critical so technology is embraced, not feared.”

Pankaj Satija, Executive-in-Charge at Tata Steel and Co-Chair of FICCI’s Mining Committee, concluded that:

“Technology must unite people, assets, and processes, and expand its reach into environmental performance. Continuous evolution in adoption and skills is vital.”

The FICCI–CRISIL report presents the sector at a strategic crossroads—where integrated technology can drive significant productivity gains, operational resilience, and environmental responsibility. The way forward, it states, lies in aligning digital innovation with leadership vision and workforce empowerment.

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