Lloyds Metals Gets Green Nod To Raise Iron Ore Output To 55 Mtpa

Lloyds Metals and Energy Ltd. on Wednesday said it has secured environmental clearance from the government to increase iron ore mining capacity to up to 55 million tonnes per annum.

In an exchange filing, the company said the expanded mining operations will support cost-efficient and sustainable steel production, ensuring long-term raw material security for captive consumption and possible third-party supply.

Initially, Lloyds will extract up to 26 million tonnes per annum of hematite direct sales ore. The ramp-up to 55 million tonnes will include up to 45 million tonnes of banded hematite quartzite. As its beneficiation plants become operational, the company plans to replace direct sales ore with beneficiated ore.

The in-house availability of iron ore is expected to improve cost structures and support Lloyds Metals’ EBITDA margins. The expansion will also play a strategic role in shaping the steel ecosystem in Gadchiroli, Maharashtra, where a number of companies are entering the sector.