In the era of declining prices clubbed with weak demand, the new tax regime in the mining sector in India in the form of District Mineral Fund (DMF) or National Mineral Exploration Fund (NMEF) may pose additional threats for the survival of the already ailing mineral and metal industry. This necessitates the need for continuous improvement in the technology as well as developing disruptive technologies or adopting the state of the art technologies in every facet of the metal business. This will also help companies to show their commitment towards environment and societal issues to ensure securing social license to operate.
There is an urgent need to provide a creative culture across mineral and metal industry to support the generation of new ideas and its diffusion into products, processes and services with focus on:
1. Encouraging research and development for environmental friendly technologies & systems
2. Augmenting technical skills
3. Enabling access to expertise
4. Strengthening system-wide capabilities and exploiting complementaries
5. Improving frameworks for innovation, including regulation and standards
6. Facilitating collaboration through exchange and dialogue about innovation
The most important factor from a commodity market point of view is that technology-driven cost reductions would help drive prices lower on a structural basis and keep prices low for an extended period.
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