Lloyds Metals Secures EC for 55 MTPA Iron Ore Expansion, Poised to Operate India's Largest Mine
Mumbai, India – Lloyds Metals and Energy Limited (LLOYDSME) announced today, June 26, 2025, that it has received the crucial Environmental Clearance (EC) from the Ministry of Environment, Forest, and Climate Change, Government of India (IA Division). This clearance, granted on June 25, 2025, paves the way for the company to expand its iron ore mining capacity to a massive 55 Million Tonnes Per Annum (MTPA).
The expansion is a pivotal development, set to establish Lloyds Metals’ operation as India’s largest iron ore mine. This increased capacity is expected to significantly enhance raw material security for domestic steel producers and serve as a foundational enabler for the burgeoning steel industry in the Gadchiroli region.
Strategic Mining Roadmap and Sustainability Focus
The company’s mining roadmap outlines an initial phase of 26 MTPA of Hematite (Direct Sales Ore), followed by a ramp-up to 45 MTPA of Banded Hematite Quartzite (BHQ). As beneficiation plants become operational, Lloyds Metals plans to gradually replace Hematite DSO with beneficiated ore.
Sustainability is at the core of the mine’s design, incorporating battery-operated Heavy Earth Moving Machinery (HEMMS), electrically powered machinery, LNG vehicles, and renewable energy sources. This approach aims to set a new standard for sustainable mining initiatives.
Furthermore, Lloyds Metals is establishing one of the world’s largest Iron Ore Beneficiation facilities in Hedri. A 5 Tonnes Per Hour (TPH) pilot plant is already operational, demonstrating promising results with over 66% Fe and a yield exceeding 35%. The concentrate produced post-beneficiation is expected to be world-class pellet and sinter-feed material, characterized by one of the lowest gangue percentages, ensuring sustainable steel production.
Benefits and Management Outlook
The expanded capacity is anticipated to support cost-effective and sustainable steel production, secure long-term ore supply, and firmly anchor Lloyds Metals’ forward integration strategy into pellet and steel making. This in-house iron ore availability is projected to significantly improve cost structures and contribute meaningfully to the company’s EBITDA margins, positioning LMEL as one of the most efficient and cost-effective steel producers in the country.
Mr. Balasubramanian Prabhakaran, Managing Director, commented on the milestone, stating, “This clearance paves the way for us to create long-term value for all our stakeholders while contributing meaningfully to regional development. The Government authorities have been aligned with the long term vision to Make India Atma-Nirbhar & to make Gadchiroli into the Steel City of India.”
Mr. Rajesh Gupta, Managing Director, added, “Our low-cost mining model, combined with planned capex, and our integrated approach with Thriveni, as our partner, will serve as a strong example of what integrated, efficient, and scalable operations can look like in the Indian steel industry.”
The effective commencement of operations for the enhanced capacity will follow the receipt of the Consent to Operate (“CTO”) from the Maharashtra Pollution Control Board (“MPCB”), for which an application has already been submitted.
At the time of the announcement, Lloyds Metals and Energy Limited’s shares were trading at ₹1578.9, down 0.6%.
source: Corporate Announcement
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