Case Gemco Kati: Fostering sustainability and international standards in the Indian mining sector

Various minerals play a key role in the green transition. As the mining sector grows and expands into new areas and regions in India, fostering sustainable mining practices and the circular economy is key.

“Being an exploration company, we will be the first ones to reach the field for a mining company”, says Jijo George, CEO and Director at Gemco Kati Exploration Pvt. Ltd.

“By implementing responsible practices, we try our best to contribute to sustainability. Whether it is engagement with a project-affected community or environmentally responsible practices using advanced geophysics and remote-sensing techniques for more accurate mineral targeting and reducing unnecessary land disturbance, we leave no stone unturned. Efficient planning of resources and reducing waste help portray a better picture in project-affected communities”, he continues.

For example, accurate positioning of the ore deposit enables proper design and planning of mining activities. It also contributes to keeping the footprint as small as possible and minimising the formation of waste rock. Waste rock piles are often immense, and reducing the need for unnecessary processing and transportation also decreases CO2 emissions significantly.

Finnish and Indian know-how combined

Gemco Kati was established in 2010 as a joint venture between Kati Ltd, a Finnish drilling company, and the Indian founders, namely the owners of Gemco, an Indian company specialised in exploration and drilling with over 40 years of experience in the country.

“We have been building a sustainable business in India with a long-term perspective since 2010. During this time, we have witnessed India’s overall development, and naturally, the mining sector has also made progress, advancing systematically toward large-scale operations”, says Matti Rautakoski, Sales and Marketing Director at Kati Ltd.

Based on the long experience and expertise of the two companies, Gemco Kati conducts drilling services mainly for mining prospectors and Indian authorities. Currently, their focus is particularly on minerals such as iron ore, manganese, limestone, gold, and platinum.

“We stand out in India as a ‘hybrid organisation’, in which Indian and European operational models blend to create a distinctive and effective way of working”, Rautakoski adds.

“India’s full potential yet to be realised”

In recent years, the Indian exploration market has experienced strong growth, fuelled by the government’s initiative for systematic exploration and establishment of mineral reserves. The company strives to stand out from its competitors in quality and safety matters, which are much valued by international mining companies.

“The Indian government is actively involved in fostering industry growth, from mineral exploration to the establishment of mining operations. The country is openly embracing new approaches. In many ways, India is a giant whose full potential is yet to be realised. Gemco Kati has a great opportunity to be part of this growth story”, Rautakoski comments.

“India has an ambitious plan to increase mining of metals and minerals to service the increasing domestic demand and reduce imports. We are glad to see that Gemco Kati has established itself as one of the leading professional and quality drilling and exploration companies servicing mining companies in India with international standards”, says Markus Pentikäinen, Senior Investment Manager and Head of Investment Analysis at Finnfund.

Finnfund enabling company’s growth

Finnfund has been financing Gemco Kati since 2016 through loans, supporting the company’s further development and expansion, for example, by adding high-quality rigs and support vehicles to its fleet. Finnfund’s most recent loan of two million euros was provided in 2022.

“We have collaborated with Finnfund for years, supporting Gemco Kati’s growth and development. Finnfund’s support has been invaluable to us, helping guide the evolution of our business. Its role as an enabler of the company’s growth has been crucial”, says Rautakoski.

“During our collaboration, Gemco Kati has established itself in the Indian mining sector as a company that not only inherently understands local conditions and the business environment, but has also contributed to the sector by introducing Finnish expertise in efficient and high-quality work practices. This has been recognised by customers and stakeholders in India, earning well-deserved recognition”, he continues.

“We have collaborated with Finnfund for years, supporting Gemco Kati’s growth and development. Finnfund’s support has been invaluable to us, helping guide the evolution of our business. Its role as an enabler of the company’s growth has been crucial."

Matti Rautakoski, Sales and Marketing Director, Kati Ltd

Drilling plays a vital role in sustainable mining

Drilling plays a crucial role in sustainable mining. For example, through precision, energy efficiency, and careful water management, advanced drilling tools and methods can significantly reduce negative impacts on nature, local wildlife, and communities.

In addition to indirectly supporting national industrial development and fostering sustainable, responsible business practices in the sector, Gemco Kati is contributing to the development of local economies through jobs, salaries, domestic purchases, and taxes. The company emphasises local sourcing in their purchases, contributing to the development of the entire sector.

“We have always adopted a vendor partner approach with all our vendors. We put effort into training and support MSME vendors in developing their products to meet international standards. Some of our vendors, after constant improvement, have started exporting their products”, George says.

Broad-scale exploration services

In recent years, Gemco Kati has diversified its service portfolio, becoming a company that provides broad-scale exploration services and actively generates geological data.

“We are no longer just a drilling contractor in India; we now have a geological division capable of identifying and developing promising new mineral exploration targets. We plan to continue this work, further expanding our impact in India’s mineral exploration and mining sector while also looking beyond India for new opportunities”, Rautakoski adds.

From 50 kilometres of annual drilling, Gemco Kati has grown multi-fold to 135 kilometres of drilling annually.

“Apart from drilling, we have supported the government in identifying precious minerals hidden at depth, with more than 500 square kilometres under preliminary green-field exploration. This is sure to open up new mines, placing India in a leadership position and making it self-reliant in terms of mineral resources, which is a prime necessity for economic growth”, George says.

"We are glad to see that Gemco Kati has established itself as one of the leading professional and quality drilling and exploration companies servicing mining companies in India with international standards.”

Markus Pentikäinen, Senior Investment Manager and Head of Investment Analysis, Finnfund

Fostering decent jobs and well-being

At the beginning of 2025, Gemco Kati had approximately 430 workers, up from 180 in 2020, and as part of the growing business, the number of employees is also expected to grow. The company plays an important role in providing formal employment and training for their workers, as a vast majority of their workers are low-skilled men with no formal education.

As part of the cooperation, Finnfund introduced the idea of conducting an anonymous survey among employees. The aim of the survey, conducted in 2022, was to give employees an opportunity to provide feedback, for example, about their working environment, health and safety, perception of discrimination, and management skills. In addition, the survey provided an opportunity to gain knowledge about the life quality and living standards, and to analyse the results against international frameworks, such as the UN Sustainable Development Goals (SDGs) and the World health Organisation’s Well-Being Index (WHO-5).

One of the key results was employee satisfaction with their quality of life and work. The average response on the well-being index was an impressive 82 per cent on a scale of 0–100.

“We could identify that the workers were, in general, happy about their work and opportunities in the company. However, during the survey, we identified that a large part of our crew was not sending their kids to school. We had run a campaign among our team to make them understand the importance of education, and we supported them in getting their future generation into mainstream education”, George explains.

“These surveys by Work Ahead have proved to be critical in giving a voice to the workers and in surfacing issues that might otherwise never have come to management’s attention. And we are happy, though not surprised, how Gemco Kati’s management has taken decisive steps in rectifying these issues”, says Juho Uusihakala, Senior Development Impact Adviser at Finnfund.

"One of the aims of these surveys is to provide employees with the opportunity to give feedback directly and anonymously to the company. It's great that Gemco Kati actively utilises the results, and as climate change continues to intensify, bringing more extreme weather events and heat, it is proactively addressing these challenges to ensure its employees have good working conditions now and in the future.”

Lauri Etelämäki, Senior Environmental and Social Adviser, Finnfund

Adapting to climate change

One of the themes was climate change. The survey made it clear that the effects of climate change are already visible, and more than one third (34%) of the workers said their household had already lost buildings, animals, crops, assets or money because of climate change. The company has also adapted its operations to the changing weather conditions.

“The effects of climate change are clearly visible in shifting and extreme weather. It can be felt that the balance has been lost”, George says.

“We have adapted to the changes by providing rest shelters and better facilities to battle heat, which was a major concern in outdoor work. We are further working on adapting operations to extreme monsoon conditions as well”, he adds.

“One of the aims of these surveys is to provide employees with the opportunity to give feedback directly and anonymously to the company. It’s great that Gemco Kati actively utilises the results, and as climate change continues to intensify, bringing more extreme weather events and heat, it is proactively addressing these challenges to ensure its employees have good working conditions now and in the future”, says Lauri Etelämäki, Senior Environmental and Social Adviser at Finnfund.

Published on 13 May 2025