Lloyds Metals Secures Green Nod for Massive Iron Ore Capacity Hike to 55 MTPA, Set to Become India’s Largest Mine
By Ankur Chandra | Updated at: Jan 16, 2026 01:46 PM IST
Mumbai, June 26: Lloyds Metals and Energy Ltd (NSE: LLOYDSME, BSE: 512455) has achieved a significant regulatory milestone, obtaining Environmental Clearance (EC) from the Ministry of Environment, Forest, and Climate Change (MoEFCC) for expanding its iron ore mining capacity to 55 million tonnes per annum (MTPA). The clearance, granted on June 25, 2025, under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, positions Lloyds Metals to operate India’s largest iron ore mine. This expansion is poised to boost raw material availability for the domestic steel industry significantly.
Project Details and Strategic Phasing
The approved expansion of the Surjagarh iron ore mine in the Gadchiroli district of Maharashtra will be executed in a phased manner to ensure calibrated growth and operational efficiency. The company’s mine design integrates battery-operated HEMMs, electric machinery, LNG vehicles, and renewable energy, underscoring its commitment to sustainable mining practices.
| Phase | Production Plan |
|---|---|
| Initial Years | 26 MTPA of Hematite (Direct Sales Ore) |
| Final Ramp-up (55 MTPA) | Includes 45 MTPA of BHQ (Banded Hematite Quartzite) |
| Long-term Vision | Transition to beneficiated ore post commissioning of the beneficiation plants |
Hedri Beneficiation Complex: A Leap in Ore Processing
To process the BHQ and other lower-grade ores, Lloyds Metals is developing one of the world’s largest iron ore beneficiation facilities at Hedri. Beneficiation is a critical process that upgrades lower-grade iron ore by removing impurities (gangue) and increasing the iron content, making it suitable for blast furnaces and direct reduced iron (DRI) production.
- Pilot Plant Success: A pilot plant with a capacity of 5 tonnes per hour (TPH) has already demonstrated promising results, achieving a 66% Fe (iron) grade and a yield of over 35%. This success de-risks the larger-scale project.
- Full-Scale Development: The full-scale complex is currently undergoing detailed engineering.
- High-Quality Output: The final concentrate from this facility is expected to be high-quality pellets and sinter-feed material with low gangue content, crucial for efficient and environmentally friendly steel production.
Operational and Financial Implications
This significant capacity expansion is set to bring substantial operational and financial benefits to Lloyds Metals and the broader Indian steel industry. Operations at the enhanced capacity will commence upon receiving the Consent to Operate (CTO) from the Maharashtra Pollution Control Board, a process that is currently underway.
| Strategic Benefit | Impact |
|---|---|
| In-house ore supply | Reduced dependency and improved cost structures |
| Integration with downstream operations | Supports pellet and steel production strategy |
| Enhanced EBITDA margins | Owing to lower costs and raw material security |
| Industry-leading efficiency | Driven by low-cost mining, an integrated model, and calibrated capex |
What Did the Management Say?
Balasubramanian Prabhakaran, Managing Director:
“This clearance reflects our commitment to responsible mining and community upliftment. It aligns with the government’s vision to make Gadchiroli the Steel City of India.”
Rajesh Gupta, Managing Director:
“The expansion reflects our ambition to redefine industry benchmarks. With Thriveni as our partner and a robust, low-cost model, we are set for a transformative journey.”
How Did Investors React?
At around 9:40 AM, the shares of Lloyds Metals were trading 0.13% or ₹2.00 lower at ₹1,520.20. It remains to be seen at what price the shares will close at the end of today’s market session.
What’s Ahead?
Lloyds Metals now awaits the Consent to Operate (CTO) to begin full-scale mining at 55 MTPA. Focus will shift to the timely execution of the Hedri beneficiation complex. A successful rollout could solidify its position as India’s largest and most efficient iron ore supplier. Investors will watch for regulatory progress and project milestones.
About Lloyds Metals
Lloyds Metals and Energy Ltd operates in iron ore mining and steel production. With integrated operations and sustainability at the core, the company is emerging as a leader in cost-effective, large-scale mining and value-added steel manufacturing in India.
REF: https://nsearchives.nseindia.com/corporate/LLOYDSME_26062025052816_ReceiptofECIronOre55MTPA.pdf
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