From mines to megacities: Can green zinc power India’s future? | Trending Commodity Podcast | EP 09

Hi all. Welcome to Business Times trending commodities podcast. Responsible mining practices are positioning India as a resilient and ethical hub in global commodities supply chains, particularly for zinc and silver. By aligning with international sustainability standards, India is transitioning from a traditional exporter of raw commodities to a strategic provider of green and high-poverty metals essential for global decarbonization. Leading Indian producers like Hindu Sun Zing have joined the International Council on Mining and Metals, ICMM, committing to ethical practices, transparency and safety benchmarks that appeal to downstream buyers in Western markets. The launch of Ecosen Asia's first green zinc features a carbon footprint 75% lower than the global average. This allows international steel manufacturers to meet strict scope three emission targets, enhancing Indian exports competitiveness. To tell us more about this, we have with this Mr. Nikhil Raj, Director Sustainable Outcomes Private Limited. Welcome to Business Times trending commodity podcast Mr. Raj. Now we have been hearing a lot about responsible mining. So what exactly is responsible mining and how is it gaining ground? Thank you Mr. Subramani for this question. I think it is going far beyond the traditional notions of mining equal to extraction. I think it's about, you know, producing metals in a way that captures also the other elements essentially addresses the environmental concerns, the social concerns and also the governance related to how the whole production process is there. Right from extraction to the time the metals or minerals are extracted and they are transformed into a state where they can be put to industrial or other business practices. So I mean gradually with the growth and expansion of the industries globally and also in India. I think particularly during the last two or three years if you will find that responsible mining in the wake of the European Union also passing this law that all goods that there are materials inputs that they are important minerals and metals whether it is the steel industry whether it is the automobile industry, the beauty industry. They have been talking about that yes, it has to be mind responsibly. And therefore there is a big push because people have to not sell only on in terms of the price aspect but it is the kind of the quality of production process. And this quality of production process therefore covers the broader and that social environmental and the governance aspect in terms of mining in terms of the Indian economy if you look at it. I mean I personally feel that with the global markets some access is coming, some restrictions coming to particularly during the last six, eight, twelve months, it becomes important that we are a taskwari level of showing our governance and the whole system to be legible enough by the potential buyers. They do not have to keep guessing about how responsible are we and that has to be demonstrated in terms of processes that has to be demonstrated in terms of the governance aspects. I mean in any case in case of any mineral or metal that you talk about. And then there are international bodies, the government has formed the national critical mission, Minrukh's mission, there are international bodies that have also formed their own benchmarks. Would you want if one complies, there is better access to global markets. So how is its importance increasing? See I mean if we're talking in terms of the Indian context, in the Indian context if you look at the latest budget figures, we have a budget estimate of nearly 53 lakh scores and of which roughly 12.2 lakh scores is for capital expenditure and which means a little more than 25% or around 25% and if that be the case, where is the capital going to be spread? It is going to be spent on let's say transport energy, it is going to be spent on infrastructure, the steel companies, etc. And therefore all these metal intensive sectors will drive the growth. And in terms of the metal intensive sectors dependent upon these metals which are lined through Ours and they go through their own processing in the production units. I think the process of gaining attraction, what in the economic terms for individual companies that are doing those mining regardless of the metal or the mineral that will talk about, it will be important that their participation even at the national level. And obviously as I said in the global level, it will happen. Second aspect is but from the economic, there is also the the compulsion that there is a larger opportunity that is coming up that if I do responsible mining, my products will try and enter into new guidelines and therefore business diversification becomes important. So demonstrating in its entirety that a given organization is following the benchmark principles to a great extent and reporting around that in terms of being responsible as far as environmentally concerned or cognizant about the emissions, cognizant about the operations, cognizant about the you know the scope one, two, three guidelines whether it is the downstream companies, the upstream companies, etc. along their supply chains, if they demonstrate, they gain attraction in the domestic market, they gain attraction in the global market and also in the standard business lines, but there is a diversification also because metals and minerals because of the scarcity of minerals, some of the critical minerals also, there are aspects which are being looked at for alternatives and therefore it is pertinent that mining is seen also as a way for business diversification if it is coupled in a responsible matter. So what is the role Zinc is playing in this? Zinc as I said that in infrastructure process, it goes as an important material in analog target tool level. So one is the industry level and the other is the other primary sector level. So in the secondary sector, it goes as a critical import into let's say galvanization and galvanization of state. Now if one galvanizes, this enhances the length of steam by almost 30 years. These are some of the estimates at least for 30 years you don't need to replace a state and if you don't need to replace a state which means that reduces your carbon footprint, that reduces the emission levels in terms of the upstream companies. So second is that Zinc is also important in terms of the emerging need for alternative energy storage systems and so on. What is happening is that there is a bigger push for conserving energy. Now the recent last few years, at least decade or so globally and in India, particularly in the last two, three years, the renewable solar energy have had a big push. Now if you look at the solar energy, when the sunlight is not there, the solar energy others want to use it, right? And the usage of long storage ageries which could be in the form of where Zinc is used with bromine, etc. Instead of lithium, which is a critical mineral, which is less available, which is in shed supply. India is globally as far as Zinc supplies concern. I mean, if I recall, I was reading one figure that globally, the production is almost in the order of 6000 metric tons and in the producers approximately 6 percent of that. So while not a dominant player, yet not a marginal player. So within the domestic industry, the production of Zinc, and if it is mind responsibly, its usage is seen to reduce the emission levels at all levels. One is both at the also at the operations level. If it is in the process of smilting, which is one of the slayer contributors to the carbon emissions compared to the extraction process. And if one is responsible around that, if one does all the compliance with all those checklist then in the production process. that is reduced in the companies with which it is linked up. It also gives us an opportunity that there is lower replacement, higher life cycle of the inputs where these are used. And therefore, responsible mining in terms of sync. And when I say responsible mining, I would rather go up to responsible mining and production of sync because then it takes care of the entire chain of production. For it reaches the intermediate consumer, that is the production and the infrastructure companies or this steel companies. That is one part. So energy storage and also as you know large where these energy storage can be used when there is less sunlight. And you can shave off those energy that is stored in the sync, bromine or a zinc based battery systems which can last up to 5 to 8 hours. The government of India, private the next 4 to 5 years is understandably going to be producing roughly about 16 gigawatts. But looking at storage of those 16 gigawatts. And if one looks at a kind of usage, at a full usage capacity, it can take care of roughly 5 hours if used at full capacity. So in heavy industrial usage, where even at nights, energy is required, you are less cold dependent, you are less hydro dependent. And you can use the energy that is stored in sync based battery energy storage systems. That's the second part. And that's a major diversification where the zinc industry could potentially look at as in line of business. As another strong line of business, because of also the government of India's commitment and the double push as went for renewable and alternative sources. I think being a student of development economics, one of my areas is also being agriculture. And Mr. Somaramani, I would like you to also look into this aspect of how the production of zinc provides a kind of a low cost sustained supply of fertilizer. And sustained supply of fertilizer, which therefore going goes in as a kind of a micronutrient for the soil, important for almost all crops. Rice wheat maize, they take it because, I mean, if you look at it, soil research and soil sciences, they prove that roughly four out of every 10 plots or three out of every 10 plots in the endogantetic plains, they are told to be zinc deficient. And zinc deficiency means that there is stumping, there is a low yield and therefore, less, there are low price discovery by the farmers. A sustained supply, a responsible supply on a vast scale of zinc, who also means that zinc sulfate is provided to the farmers, which also means that the production of some of the crops, particularly rice wheat maize and apart from that pulses. Pulse is because, you know, we are deficient in pulses. Every second or third year also there is a kind of a climate that pulses and what stabilizing. I mean, now we need approximately 31 million metric tons and one is still covering around 25 million metric tons. So, you are depending upon Canada, Mozambique, Australia and other places, very important. So, and entering into these bilateral negotiations. So, from an agriculture perspective, I also think that a sustained supply of fertilizer, nice dependence upon the other countries, the part of the Middle East countries from where we import fertilizer as well. This is a responsible mining of a zinc, both in the industrial sector, the emerging rising renewable energy sector, energy storage and the agriculture sector, it does have a solid relevance. I mean, in also in terms of food security, as I talked about. Sir, how has India emerged in responsible mining in the global supply chain? And what's a recognition that India scored? You see, one of the things that if you look at responsible mining, one has to, I again go back to some of the basics of responsible mining. And that is that one has to rise the risks of operations, carbon emissions, of the environmental degradation, etc. Now, as I said, that zinc is a is when it is, mine, it comes in the form of an ore, only 5% of that, practically. The metallurgy science people say that only about 5% of that is immediately extracted through the particles that are attached to the ore and the remaining or 5% to 10% and the remaining are put in a kind of a sludge or a slurry kind of a thing which they refer as a tailing. That has to be managed responsibly because it is a risk of managing those tail storage. It is an environmental risk, it is a slurry, sometimes leakages can cause deaths, it can cause, you know, other industrial disasters, globally you hear from places in Prasil, etc. But as far as India is concerned, one of the latest things, I think a good thing that has happened that one of its largest producers, the endostons, and climate it recently has been given the membership to the August company of the International Council for Metals and I don't know, ignorance of mining and metals and minerals, so I see a man, I think this is the only Indian company that has the membership to that. So with India, as I said, not being even in a dominant player of saying in terms of volume of culture and also therefore not likely to be a price setter, but it has been a kind of a signal for the global community also that here in India also there are organizations and there are efforts that are being made to live up and comply and clear all the global strict, rigid benchmarks that have been set. So I mean this is a kind of an indicator and appreciation, yes, a pattern the back for the Pakistan saying, but then, you know, as proud citizens, I mean we should also be looking at it that it is a moment also to prove that how can we leverage upon to transfer this to other metals and minerals mining so that we can get the recognition of a similar type and I'm sure that there will be deeper market penetration for the Indian saying for market access and the recognition of its risk of reduction efforts that have been announced recognized. And you know, importantly, this recognition is also an indicator that zinc is being seen as a critical metal which is driving the industrial sector in India in a responsible or zinc, for example, you know, the ICMN members are contributing huge amounts. I mean to the tune of their own reports, they're saying that they too contribute to almost like 36, 34 billion annually to the chances where the companies, the ICMN members are hosted where their operations are. So if that's the case, there is an economic gain for the government of India as well, right? So promoting such companies, bringing them together, making them as the avant-garde organizations and making zinc as an example, but for also other metals and minerals to follow, what also be a kind of a win-win gain both for the private sector as well as the government in terms of trucks, in terms of revenues and also our quality. So it's all about the contribution to the GDP. I mean, if you the tax revenues from a set of members or the mining companies that are doing your money responsibly that goes to increase, obviously our contribution to GDP is increasing. So I mean from that perspective, I look at it that the recognition for the Indian company per se, it is just not innovative for the Pakistan zinc limited, but it is also a recognition that that frames and that positions, you know, the whole critical minerals and metals at the core of the growth narrative when we are targeting about almost like a 7% growth, despite all the global supply chain hiccups that we have been seeing for the last two, three words. And then we have the district mineral foundations and we have almost mobilized more than a lack of rupees. So here is also an opportunity to leverage part of those funds towards the social part around the communities so that the zinc, mining and production continue to be accepted, relevant and it is a win-win again for the local communities as well, not only for the business community. So I think it's also giving a rise to a better need for more better skills there and with the Ministry of Skill Development and Entrepreneurship. A one is also Luang. looking at more skills intensive use of technology in these mining operations, in these melting operations, in the tail-tailing operations and which would require better skills at various levels of skill. So I think that there is going to be a kind of a multi-clar impact in terms of trickering changes in other line-medicineries and departments, not only the mines and minerals are a department. Thank you very much for your insightful views Mr Raj, we hope all listening is a very effective combination. Thank you all for tuning in and we will meet in the next epic sort. This is Subramanimal Kumbhu signing off. Bye all.