With this, the company said it stands to become the largest iron ore operator in the country. This development is set to significantly enhance the raw material security for domestic producers, it added.
“The expansion is poised to play a strategic role in the emerging steel industry in Gadchiroli, as the region witnesses a growing presence of companies venturing into steel production. LMEL’s mine will act as a foundational enabler for these downstream industries,” the company said.
Benefits
Lloyds Metals said the mine will support cost-effective and sustainable steel production, ensuring long-term ore security for both captive use and potential external supply.
The expansion will also enhance the company’s plans for pellet and steel making.
Availability of in-house iron ore will significantly improve cost structures and contribute meaningfully to the company’s earnings before interest taxes depreciation and amortisation (EBITDA) margin, it said.
Lloyds Metals said it applied for the consent to operate to the Maharashtra Pollution Control Board, and is expecting to receive the same shortly, following which the effective date of commencement of operations for enhanced capacity would be decided.
Mining Roadmap and Beneficiation
In the initial years, the company will mine 26 MTPA of hematite. The subsequent ramp up to 55 MTPA capacity will include 45 MT banded hematite quartzite, it added.
Gradually, as the beneficiation plants become operational, Lloyds Metals said it would replace Hematite DSO with beneficiated ore.
The company said it is establishing one of the largest iron ore beneficiation facilities in the world in Hedri. A pilot plant of 5 tonne per hour (TPH) has been operational and is achieving the desired results with more than 66% iron and a yield of over 35%. The company said it is progressing on detailed engineering of the beneficiation complex based on these results.
The concentrate produced post-beneficiation, will be world class pellet and Sinter-feed material, it said. With one of the lowest gangue percentages, this will also ensure sustainable steel production in the future, it added.
Shares of Lloyds Metals gained 2.35% to hit an intraday high of ₹1,558 apiece on Thursday, June 26. The stock was trading 0.74% up at ₹1,533.5 apiece at 11.30 am. It has gained 13.6% in the past month, 31% in the last six months and 21.2% this year, so far.
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