Lloyds Metals Gets Green Light to Expand India’s Largest Iron Ore Mine to 55 MTPA

Lloyds Metals and Energy Ltd has received environmental clearance from the Ministry of Environment, Forest and Climate Change for the expansion of iron ore mining capacity to 55 million tons per annum (MTPA), thus securing its position of operator of the largest iron ore mine in the country.

The expansion in the Gadchiroli district of Maharashtra is perceived as the strategic way forward for the steel ecosystem of India. LMEL shall start with an initial 26 million tonnes per annum of hematite ore (Direct Sale Ore) and progressively ramp-up to include Bhq (banded hematite quartzite) production of 45 million tonnes per annum for a total of 55 million tonnes per annum. This will help secure long-term raw materials for several forthcoming steel plants in the area.

In alignment with sustainability, LMEL is moving toward the operation of beneficiated ore, battery-operated heavy equipment, LNG-powered vehicles, and renewable energy sources. Also under construction is one of the largest iron ore beneficiation complexes in the world in Hedri. The pilot plant is already giving positive results, achieving a yield of over 35% and an iron content of more than 66%.

The expansion brings a great opportunity to enhance LMEL’s cost and EBITDA margins by reducing dependence on external ore supplies. It is also a forward step toward their objective of pellet and steel production. However, the full-scale operation is still awaiting the Consent to Operate from the Maharashtra Pollution Control Board.

After the June 26 announcement, LMEL’s stock rose by 2%, trading at ₹1,533 per share at 12:10 pm. Having gained 12.6% over the last month, the stock is currently down 23% year-to-date.

Meanwhile, LMEL reported revenue of ₹1,182.66 crore for Q4 FY25, down 23.5% year-on-year. Profit after tax fell nearly 27% to ₹202.47 crore. For the full fiscal year, however, the company posted a 2.24% increase in revenue at ₹6,626.31 crore, with PAT rising to ₹1,449.3 crore from ₹1,242.93 crore in FY24.

Lloyds Metals is active in sponge iron, power, and mining, and is now closely watched after securing this critical green nod.