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Vedanta, a leading Indian mining conglomerate, has declared its intention to continue relying on coal as the principal energy source for its extensive mining operations. This announcement comes despite the company's stated commitment to integrate more renewable energy solutions into its operational framework. The strategy highlights the complexities faced by major industrial players in transitioning to greener energy alternatives while maintaining production efficiency and addressing immediate energy demands.

Currently, a significant 70% of Vedanta's energy consumption is fulfilled by coal. However, the company has set an ambitious target to reduce this reliance to between 50% and 60% over the next three to four years. This reduction is envisioned through the strategic deployment of various renewable energy sources, including solar, wind, and hybrid energy models, signaling a gradual shift towards a more sustainable energy portfolio. In addition to these efforts, Vedanta is also channeling investments into the production of low-carbon commodities such as aluminum and zinc, leveraging renewable energy and hydrogen in their manufacturing processes. Although these environmentally friendlier products presently constitute less than 20% of Vedanta's total output, there are definitive plans for substantial production expansion.

Beyond its domestic operations, Vedanta is actively exploring energy transitions in its international ventures. Deshnee Naidoo, CEO of Vedanta Resources, emphasized coal's foundational role, stating, \"Coal will be, for us in Vedanta, the baseload contributor. We are absolutely in production.\" This statement underscores the practical challenges of rapidly phasing out conventional energy sources, especially for high-intensity industrial activities like mining.

A notable initiative is underway in Zambia, where persistent power outages, sometimes lasting up to 20 hours daily, severely impede industrial activities. To mitigate this, Vedanta plans to construct a 300MW power plant, which will be equally fueled by coal and renewable energy, to support the expansion of its mining operations in the region. This dual-source approach reflects a pragmatic strategy to ensure energy security while gradually advancing towards cleaner energy. The company has successfully resumed copper production in Zambia, with its unit achieving an output of 180,000–200,000 tonnes, a level not seen since 2018. The long-term goal is to further increase this output to 300,000 tonnes over the next three years, although a timeline for listing the Zambian unit has not been disclosed.

In India, Vedanta currently has no immediate plans to venture into lithium mining, citing the nation's underdeveloped potential in this sector. This decision contrasts with the global push for critical minerals essential for renewable energy technologies. Furthermore, the Indian Government recently intervened to halt Vedanta's proposed restructuring into four distinct entities. The government raised concerns over the recovery of outstanding dues and accused Vedanta of modifying the demerger scheme after it had already received approval from the Securities and Exchange Board of India, adding another layer of complexity to the company’s strategic maneuvers.

Vedanta’s strategy illustrates the intricate balance large mining entities must strike between ensuring operational continuity, meeting energy demands, and progressively integrating sustainable practices. While coal remains central to its current energy mix, the company's investments in renewable energy and low-carbon products, alongside its efforts in countries like Zambia, highlight a committed, albeit gradual, transition towards a more sustainable future. The company’s trajectory will undoubtedly be influenced by both technological advancements in renewable energy and the evolving regulatory landscape.