Is India Beginning To Get It Right In Metals Mining?

Is India beginning to get it right in metals mining?

India's mining sector is undergoing a major transformation, with more than 95 different minerals being extracted across the country. Around 1,200 large-scale mineral mines are currently in operation, producing a wide range of resources—from iron ore and chromite to precious metals and critical minerals essential for the energy transition. As a UN member, India is committed to the 2015 Sustainable Development Goals. With such a level of development, even not considering their huge coal industry, what evidence is there that companies in India are making progress on environmentally sustainable economic development?

Skarn research highlights Hindustan Zinc as a flagship project embracing innovative decarbonisation strategies:

Net Zero Commitment and Targets

Hindustan Zinc continues to develop its climate-resilient strategies to drive decarbonisation towards achieving Net Zero emissions by 2050 or sooner. The company has secured validated Science Based Targets Initiative (SBTi) targets, making it the first Indian company in the metals and mining sector to secure validated Science Based Targets Initiative (SBTi) targets.

Specific emission reduction targets include:

Reducing 50% of absolute scope 1 and 2 GHG emissions and further reduction of 25% of absolute scope 3 GHG emissions by FY2030 from the base year FY2020

Earlier targets included reducing absolute Scope 1 and 2 GHG emissions 14% by 2026 from a 2016 base-year

Renewable Energy Strategy

The company is aggressively expanding its renewable energy portfolio:

Hindustan Zinc partners with Serentica Renewables to boost round-the-clock renewable energy to 530 MW, covering 70% of its power needs

Hindustan Zinc Limited plans to raise renewable energy contribution to 70% by 2027

Current target: producing 30-35 per cent of its zinc using renewable energy by next year

Low-Carbon Product Innovation

Hindustan Zinc launched Asia's first low-carbon zinc brand, EcoZen, demonstrating the company's commitment to developing sustainable product offerings for industries like automotive, where zinc has significant market share.

Recent Performance

The company has shown strong progress on emissions reduction: Hindustan Zinc recorded 6,70,000 tCO2e greenhouse gas (GHG) emission savings in FY25 surpassing its Sustainable Development Goals (SDG), with GHG emissions intensity reduced by 15 per cent in FY25.

Strategic Approach

The decarbonisation strategy encompasses multiple approaches including renewable energy integration, operational efficiency improvements, circular economy initiatives, and partnerships for advanced technologies. The company's strategy aligns with international frameworks and represents a comprehensive approach to achieving net-zero emissions across its value chain by 2050.

Skarn understands the costs and the risks of decarbonisation in mining. This is decarbonisation in action - essential, forward-looking analysis and data on how major miners are meeting their decarbonisation targets

Our research covers more than 1,700 assets and over 900 companies. Our clients include mining companies, fund managers, financial institutions, project developers, royalty and streaming companies, trade associations, and governments. Assess your company's GHG emissions performance with the independent authority on GHG emissions.