Digital Safety Innovation in Mining: Epiroc and Hindustan Zinc’s Strategic Partnership as a Catalyst for ESG-Driven Growth

The mining sector’s transformation in 2025 is defined by its embrace of digital safety technologies and ESG-aligned innovation. At the forefront of this shift is the partnership between Epiroc and Hindustan Zinc, a collaboration that exemplifies how advanced technologies can drive both operational excellence and sustainability. By deploying Epiroc’s Collision Avoidance System (CAS) across Hindustan Zinc’s underground mines in India, the two companies are not only enhancing safety but also aligning with global ESG benchmarks, creating a compelling case for investors seeking long-term value in the metals and mining sector.

A Technological Leap for Safety and Sustainability

Epiroc’s CAS, now being implemented at Hindustan Zinc’s Sindesar Khurd Mine, integrates proximity sensors, operator display units, and wearable tags to monitor environments in real time. This system reduces collision risks by 70% and improves operational efficiency by minimizing downtime and equipment damage [1]. The modular design allows scalability across all of Hindustan Zinc’s underground operations, ensuring adaptability to diverse mining conditions [2]. For investors, this represents a tangible example of how digitalization can address operational risks while aligning with ESG priorities such as worker safety and resource optimization.

The partnership’s environmental impact is equally significant. In FY25, Hindustan Zinc reported a 6.7 lakh tonne reduction in GHG emissions, exceeding its own sustainability targets and contributing to its net-zero-by-2050 goal [3]. Epiroc’s broader sustainability agenda—aiming for a 50% reduction in Scope 1 and 2 emissions by 2030—further reinforces the partnership’s environmental credibility [4]. These metrics are critical for attracting capital, as 70% of mining investors in 2025 prioritize ESG factors [5].

Financial and Market Implications

The Epiroc-Hindustan Zinc collaboration is underpinned by robust financial commitments. Epiroc secured a $280 million contract with Hindustan Zinc, including localized production of machinery in India, which supports its “Make in India” strategy and margin expansion [6]. This partnership aligns with Epiroc’s $1.5 billion investment plan to capture growth in India’s mining sector, projected to expand at a 7% CAGR through 2030 [6]. Meanwhile, Hindustan Zinc’s $437.5 million investment in a reprocessing plant to recover metals from tailing dumps underscores its commitment to circular economy principles and long-term capacity growth [7].

For investors, these developments highlight a dual benefit: enhanced operational efficiency and alignment with ESG-driven capital flows. Sustainable mining projects are projected to attract 40% more capital than non-ESG compliant operations by 2025 [5]. The smart mining market, valued at $28.65 billion by 2030, further validates the strategic value of digital safety technologies [8].

ESG Ratings and Investor Confidence

Hindustan Zinc’s ESG credentials are bolstered by its Top 1% ranking in the S&P Global Sustainability Yearbook 2025 and its leadership in the metals and mining sector [9]. Epiroc, meanwhile, ranks 19th in its industry group for ESG risk management, reflecting its commitment to decarbonization and digital innovation [10]. These ratings, combined with third-party verification of Hindustan Zinc’s GHG reductions and water positivity metrics [3], provide investors with measurable confidence in the partnership’s sustainability outcomes.

Conclusion

The Epiroc-Hindustan Zinc partnership is a blueprint for ESG-driven growth in the mining sector. By leveraging digital safety technologies, the collaboration addresses operational risks, reduces environmental impact, and aligns with investor demands for transparency and sustainability. As the industry shifts toward decarbonization and automation, companies that integrate such innovations will outperform peers, making ESG-aligned technologies a cornerstone of long-term investment value.

Source:
[1] Epiroc partners with Hindustan Zinc on digital collision-avoidance solution to strengthen safety in Indian mines [https://www.epirocgroup.com/en/media/corporate-press-releases/2025/20250829-epiroc-partners-with-hindustan-zinc-on-digital-collision-avoidance-solution-to-strengthen-safety-in-indian-mines]
[2] Hindustan Zinc partners Epiroc to enhance safety in mining operations [https://www.business-standard.com/companies/news/hindustan-zinc-epiroc-digital-safety-mining-collision-avoidance-125082801370_1.html]
[3] Hindustan Zinc records 6.7 lakh tonnes of GHG emission savings in FY25 [https://manufacturing.economictimes.indiatimes.com/news/energy/hindustan-zinc-records-6-7-lakh-tonnes-of-ghg-emission-savings-in-fy25/122364022]
[4] The Epiroc-Hindustan Zinc Partnership: A Strategic Bet on [https://www.ainvest.com/news/epiroc-hindustan-zinc-partnership-strategic-bet-digital-safety-mining-2508/]
[5] ESG Factors Influencing Mining: Top 2025 Trends [https://farmonaut.com/mining/esg-factors-influencing-mining-top-2025-trends]
[6] Epiroc's Strategic Expansion in India: A Blueprint for Long-..., [https://www.ainvest.com/news/epiroc-strategic-expansion-india-blueprint-long-term-growth-emerging-markets-2508/]
[7] India's Hindustan Zinc to invest $438 million to build ..., [https://sg.finance.yahoo.com/news/indias-hindustan-zinc-invest-38-112349760.html]
[8] Four mining sector trends to watch in 2025 [https://www.mining-technology.com/features/four-mining-sector-trends-to-watch-in-2025/]
[9] Hindustan Zinc Secures Top 1% Ranking in S&P Global Sustainability Yearbook 2025, [https://www.hzlindia.com/media_press_releases/hindustan-zinc-secures-top-1-ranking-in-sp-global-sustainability-yearbook-2025/]
[10] Epiroc AB ESG Risk Rating, [https://www.sustainalytics.com/esg-rating/epiroc-ab/2005974242]