Mining and Steel Industries Surge Towards Sustainable Future

URGENT UPDATE: The global mining and steel industry is undergoing a monumental transformation as it pivots towards sustainability and automation. New reports from BIS Research reveal that the industry, valued at $875.7 billion in 2024, is projected to skyrocket to $1.45 trillion by 2035, registering a remarkable CAGR of 4.63%.

This rapid shift is driven by critical decarbonization efforts, advanced technologies, and geopolitical changes that are reshaping the sector. Countries like India are ramping up steel production, aiming to triple their capacity to 500 million tonnes by 2047. The Indian government is fast-tracking mining auctions and implementing policies to enhance self-sufficiency in raw materials.

Globally, initiatives such as China’s Belt and Road Initiative and the U.S. Bipartisan Infrastructure Law are fueling demand for steel products crucial for infrastructure projects like roads and bridges. With 70% of steel consumed in construction, the demand surge is set to continue well into the next decade.

In a significant shift toward greener production methods, traditional blast furnaces are being replaced by Electric Arc Furnaces (EAFs) and Direct Reduced Iron (DRI) processes. For instance, H2 Green Steel in Sweden is developing one of the world’s first large-scale green steel plants powered entirely by renewable hydrogen, targeting an annual capacity of 5 million tonnes with nearly zero emissions. Additionally, British Steel has unveiled a £2 billion initiative to transition its Scunthorpe plant to EAFs by 2027, aiming for a carbon intensity reduction of over 75%.

Australia is also making strides with a $636 million “Green Iron Fund” launched in 2025 to establish a hydrogen-powered steel facility in Whyalla. This positions Australia to compete in the global low-carbon steel market.

On the mining front, the Fourth Industrial Revolution is in full swing. Companies are harnessing AI, IoT, and autonomous vehicles to enhance efficiency and safety. Notably, Rio Tinto’s Gudai-Darri mine in Australia utilizes digital twin technology and 5G connectivity, leading to a 30% reduction in downtime and a 15% increase in ore recovery, according to their 2025 ESG performance report.

The steel sector is also witnessing a renaissance in scrap metal usage, with EAFs prioritizing recycled materials over virgin iron ore. Europe is actively regulating scrap trading to bolster domestic production of green steel. A recent study indicates that the EU must triple its scrap collection and sorting capabilities to achieve its climate-neutral steel targets.

Meanwhile, the geopolitical landscape is heating up around essential minerals like nickel and cobalt, crucial for green steel and electric vehicle batteries. Indonesia has emerged as a key player, attracting over $20 billion in Chinese investment following its 2014 raw ore export ban, establishing the Bahodopi Industrial Park as a leading nickel refining hub.

As the mining and steel industries evolve, the integration of automation, decarbonization, and strategic resource management will be pivotal. Investments in AI-driven exploration and hydrogen-based metallurgy are redefining competitiveness in a carbon-constrained landscape. Industry leaders must align their capital expenditures with green technologies to thrive in this new era.

Stay tuned for more updates as these sectors continue to innovate and adapt to meet the challenges of sustainability and efficiency. The future of metals is not just about strength — it’s about intelligence and sustainability.