RACE TO THE BOTTOM

Mining equipment is seeing a surge in sales as pressure mounts on authorities for more precious metals and coal

- Molly R

The metals and mining sector continues to play an important and critical role in the robust growth of global economies. As developing countries modernise quickly and as some industries, such as solar photovoltaics (PV), electric cars, and batteries gain traction, there is a growing need for various metals and minerals worldwide.

Given the quantum of supply of raw materials required to develop these emerging industries, metals and mining sector will be essential to the energy transition. At the same time, this sector is highly carbon-intensive and energy-intensive. Although a lot of companies are moving in the right direction by declaring Net Zero roadmaps, a lot still needs to be done to keep global warming below 2 C.

This objective can be achieved by a variety of solutions, such as optimising operating regimes and utilising new technologies across mining, beneficiation and smelting of minerals, increased use of renewable energy sources, and building new business models based on circularity.

Amit Bhargava, national leader, metals and mining, KPMG in India, said, "Metals and mining, as a sector has never been more relevant, especially in the Indian context. The enhanced stature also implies a greater thrust for the sector to achieve its net zero commitments. There is a global consensus that no/limited tradeoff exists between ESG, and growth performances and that construct should enable the sector to embrace disruptive measures while having organisations institutionalise ESG.