Lloyds Metals and Energy Limited (LMEL) has achieved a landmark milestone by securing Environmental Clearance (EC) from the Ministry of Environment, Forest and Climate Change, Government of India, for the expansion of its iron ore mining capacity to 55 million tonnes per annum (MTPA). This development, dated 25th June 2025, marks a pivotal step in India’s ambition to become Atma Nirbhar (self-reliant) in core sectors and has the potential to transform the mineral-rich region of Gadchiroli into a national steel hub.

This clearance follows the company's board decision taken on 8th December 2023, and reflects a long-anticipated move towards enhancing India’s raw material security in the steel sector.

India’s Largest Iron Ore Mine

With the EC now in place, Lloyds Metals’ mine in Gadchiroli will become the largest iron ore mining operation in the country, surpassing many private and state-owned players. The massive scale — 55 MTPA capacity — is not just a number; it is a strategic step towards ensuring long-term ore availability for both internal use and potential third-party supply. This is expected to be a major enabler for steel producers across India, especially those investing in the Vidarbha region of Maharashtra.

Key components of the project include:

• 26 MTPA (max) mining of Hematite ore in the initial years for direct sale.

• Ramp-up to 55 MTPA to include 45 MTPA of BHQ (Banded Hematite Quartzite).

• Progressive shift from Hematite DSO to beneficiated ore once beneficiation plants go operational.

Sustainable Mining Practices

Lloyds has embedded sustainability into its mining blueprint. The mining operation will deploy:

• Battery-operated HEMMs

• Electrically powered machinery

• LNG-based transportation

• Renewable energy integration

This ensures not only lower carbon emissions but also sets an industry benchmark for green mining operations in India.

These sustainable practices make LMEL’s project a model mine—one that can serve as a template for other Indian and global mining operations.

World-Class Beneficiation Facility

A significant part of this expansion is the iron ore beneficiation complex being developed at Hedri:

• A Pilot Plant of 5 TPH is already operational.

• The pilot facility is successfully yielding ore with more than 66% Fe content and over 35% recovery.

• The final Concentrate will serve as a high-grade feed for pellet and sinter production.

With low levels of impurities (gangue), the beneficiated ore will ensure cleaner and more efficient steel production, aligning with India’s environmental and industrial goals.

Strategic and Financial Advantages for LMEL

The project aligns with Lloyds’ forward integration strategy, where iron ore mined is not just sold, but transformed into value-added steel products. This strategy helps LMEL gain:

• Cost leadership by reducing dependency on external raw material suppliers.

• Improved EBITDA margins through vertical integration.

• Stronger market position in India's emerging steel sector.

In addition, in-house iron ore access will shield the company from volatile global iron ore prices, improving financial predictability and investor confidence.

Regulatory Timeline and Next Steps

While the EC is now granted, the company must obtain the Consent to Operate (CTO) from the Maharashtra Pollution Control Board (MPCB) before starting enhanced operations. This application has already been submitted and is expected to be approved shortly.

Once all regulatory clearances are finalized, production will commence under the new 55 MTPA capacity, propelling LMEL into a leadership position in India’s iron and steel ecosystem.

Statements from Leadership

Mr. Balasubramanian Prabhakaran, Managing Director, remarked:

“This milestone is a testament to the unwavering support of the local communities and the government's confidence in Lloyds Metals' capabilities. It reflects not only our commitment to responsible mining and community upliftment but also the tireless efforts of our dedicated team.”

He also emphasized the alignment of the project with national goals such as Make in India and transforming Gadchiroli into a Steel City.

Mr. Rajesh Gupta, Managing Director, added:

“This expansion is not merely a growth initiative but a reflection of our ambition to redefine industry benchmarks. 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 scalable and efficient operations look like in the Indian steel industry.”

Conclusion

The Environmental Clearance for Lloyds Metals & Energy Ltd is not just a regulatory formality—it is a strategic inflection point. The expansion to 55 MTPA iron ore capacity is set to reshape India’s mining industry, drive regional development, enable cost-efficient steel production, and contribute to the country's industrial self-reliance goals.

As the steel sector evolves rapidly, particularly in the Vidarbha-Gadchiroli belt, LMEL’s proactive expansion, backed by technology, sustainability, and strategic foresight, places it among India’s most forward-looking mining and steel enterprises.

The benefits will be long-lasting—not just for the company and its investors, but for local communities, downstream industries, and the Indian economy at large.

For more updates and documentation, visit the official company website at www.lloyds.in or contact via lloyds_ir@lloyds.in.

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