"This is a time of introspection. Issues such as increased mechanisation, emphasis on protection of environment, stringent social demand on safety at workplaces, large scale introduction of information technology in mining industry, more difficult geo-mining locales and cost considerations pose serious challenges to the mining industry in India," he said.
Mukherjee was addressing a function here after giving away National Safety Awards (Mines).
He said mining industry occupies an important position in the national economy as it not only employs over one million persons but also produces basic raw materials for many industries, including the core sector.
"The mineral sector contributed five per cent of our national GDP during 2010-11. The industrial climate of the country and the overall economic scenario is undergoing substantive change which, I hope, will also result in the mining industry benchmarking itself to global efficiency parameters through improvements in efficiency, productivity, safety and health standards," he said.
Mukherjee said coal should occupy a "predominant position" as the country will have to rely more on it to meet its developmental needs and vast requirement of energy.
India has about 118 billion tonne of proven coal reserves as of April 1, 2012, placing it amongst the top five countries with large coal reserves. At the present level of production, these reserves could last for around 200 years.
Mukherjee said as of now, coal meets around 52 per cent of the total energy requirement in the country.