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Key Enabling Factors for Mining, Metals and Cement Industry https://cjdarcl.com India is seeing a phenomenal rise in infrastructure development and automotive production leading to growth in demand for the metals, mining, and cement industry in India. The Government of India through the Union Budget has also been incentivising and providing policy support to both - infrastructure development and the metals, mining, and cement industry. The Growth Potential for Mining, Metals and Cement Industry As of FY22, the number of reporting mines in India was estimated at 1,425, of which reporting mines for metallic minerals in the metal and mining industry were estimated at 525 and non-metallic minerals at 720. The major mining states in India are Andhra Pradesh, Jharkhand, Orissa, Rajasthan, Karnataka, Madhya Pradesh, and Maharashtra. According to the Indian Bureau of Mines (IBM) preliminary statistics, the total growth from April-July 2022–23 over the same time in the previous year increased by 6.1%. India became the 2nd largest producer of aluminium in the world in FY21 while India is the world's second-largest coal producer and cement producer as of 2021. The Government of India has also launched key policy initiatives. The National Mineral Policy, launched in February 2019, has ensured improved regulation and enforcement, better transparency, balanced social and economic growth, and sustainable mining techniques. The policy grants industry status to mining activities and boosts private-sector funding. The policy also enables the facilitation of the merger and acquisition of mining companies, enticement of private sector involving exploration, and permit to the transfer of mineral corridors created specifically for metals and mining leases. The government is also exploring ways to accelerate exports in this sector. While cement, coal, steel, and aluminium have seen an increase in demand due to various factors, copper is expected to remain high in demand. The decarbonization of metals like nickel, cobalt, and lithium used as raw materials for rechargeable batteries is also seeing a spurt in demand. The green logistics transitions increase the demand for metals and minerals that are needed to produce wind turbines, solar panels, electric vehicles, battery storage, and other electronic equipment. Metals such as copper, lithium, and vanadium, are central to green technologies and energy generation and storage. Operational Risks and Way Forward for the Metals, Mining and Cement Industry Given the huge growth trajectory, this industry must ensure that operations are run more efficiently. There are frequent breakdowns leading to downtime risk. Challenges are at every stage of the production process, from raw materials sourcing to operations, and energy management finished product quality. Therefore, to dissolve these supply chain gaps, CJ Darcl owns or leases, a fleet of tip trailers that are dedicated to particular mining zone where they pick up the iron ores from the mines and source it to the market or other destinations increasing the operational efficiency in the logistics industry. Given the nature of work, EHS (Environment, Health, and Safety) is paramount. Emerging regulations pertaining to Green House Gas (GHG) emissions, carbon tax and ESG (Environmental, Social, and Governance) are also adding to the operational challenges. Technology and digitalisation are being imbibed by most large producers across operations, from improving operational efficiencies to driving strategic data-driven decision-making. Integrated demand planning tools, sales force automation and e-supplier platforms are also some of the technology being implemented. This sector is characterised with physical risks to manpower involved in manual extraction. Technology and automation like satellite communication, IoT, automated truck hauls etc. are being used to make the process safer. The use of drones for real-time asset monitoring and inventory count is also becoming popular. It helps in reducing the time and labour that goes into monitoring while significantly increasing the accuracy levels. Embracing new-age technologies in an integrated manner across the value chain can unlock managing variability, enhancing productivity, optimising resources, and delivering sustainable savings in better ways. Companies need to bridge the gap between strategy and execution to create the ‘Intelligent Mines and the Plants of the future’. Supply Chain and Logistics in the Metals, Mining and Cement Industry The industry is also facing many challenges in supply chain and logistics due to inadequate infrastructure and visibility. The industry is in remote locations close to the mines and quarries, leading to additional freight costs. Companies need to intensify their efforts to boost efficiency, resiliency, and transparency in their supply chains. Demand variability, persistent supply constraints, and price volatility continuously impact supply chains. Companies need to be agile to quickly scale up and deliver when the demand is high and then could just as quickly scale back when the demand is low. Connecting the mine to the market means the movement, storage and blending of materials across the mine. Because of this interconnectivity, any stoppage throughout the material handling chain will have negative impacts on productivity and profits. This is one industry where the logistics are most challenging, requiring more complex logistic operations involving any combination of road, rail, barge and coastal or deep-sea freight. Specialised heavy equipment and handling facilities, safety standards to handle and move the freight and planning and operations teams are prerequisites to the movement of cargo in the metals, mining, and cement industry. Despite these challenges, CJ Darcl looks forward to coming up with its advanced specialization of containers to avoid damage, breakage, and spoilage. To ease the movement of cargo, it facilitates its clients with the infusion of 42’ containers which enables them to carry long products like Pipes, Bars etc. Dwarf containers to make cost-effective rail solutions for lightweight cargo, Top Openable containers for glass product movement and other specialized containers – 22’/ 24’/ 25’ etc. as per client’s cargo suitability. For warehousing and storage, CJ Darcl Logistics offers a multi-user warehousing facility by assigning dedicated freight corridors (DFC) to its clients therefore enhancing its operations making them cost-effective and achieving real-time deliveries therefore eliminating the voids in supply chain management. Logistics control tower solution offers traceability and visibility across the supply chain including performance monitoring of transportation partners and it also reduces the turnaround time. It can bring greater visibility across the entire organisation—from raw materials and supplier inventories to customer orders, production status, transportation (inbound, outbound, and inter-company) and supply chain logistics. A control tower can also perceive and respond to critical situations such as equipment failure, inventory shortages, transportation issues or manpower issues. CJ Darcl Logistics for better transparency uses technology like SAP and TMS for keeping the track of the real-time movement of the cargo. |
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