Lloyds Metals and Energy Ltd (LMEL) has received a major boost with the Ministry of Environment, Forest, and Climate Change granting environmental clearance (EC) to expand its iron ore mining capacity to 55 million tonnes per annum (MTPA)—making it the largest iron ore operation in India.
Strategic Expansion in Gadchiroli
The expansion pertains to LMEL’s Surjagarh mine in Gadchiroli, Maharashtra, a region fast emerging as a steel production hub. The company plans a phased ramp-up, starting with 26 MTPA of Hematite (Direct Sales Ore) and scaling to 55 MTPA, including 45 MTPA of Banded Hematite Quartzite (BHQ).
Sustainable Mining and Beneficiation Push
LMEL is pioneering green mining practices, deploying battery-operated heavy equipment, LNG vehicles, electric machinery, and renewable energy sources. The company is also developing one of the world’s largest iron ore beneficiation complexes in Hedri, with a pilot plant already achieving 66% Fe content and 35% recovery.
Operational Timeline and Market Impact
Operations under the enhanced capacity will commence after receiving the Consent to Operate (CTO) from the Maharashtra Pollution Control Board, which is expected soon. The expansion is expected to strengthen LMEL’s forward integration into pellet and steel production, reduce raw material dependency, and boost EBITDA margins.
Market Reaction
Despite the milestone, LMEL shares closed 0.27% lower at ₹1,522.85 on Wednesday. However, analysts expect the stock to remain in focus as the expansion unfolds.
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