India: Lloyds Metals receives approval to expand iron ore mining capacity to 10 mnt/year

Lloyds Metals & Energy has received the consent to establish (CTE) for expansion of its hematite iron ore mine in Surjagarh village of Maharashtra's Gadchiroli district from the current 3 million tonnes (mnt) per annum to 10 mnt per annum. The CTE has also been granted for a crushing and screening plant at the site covering an estimated 348.09 ha.

Initially, mining lease was granted for 20 years on 13 April, 2007 and executed on 3 May. 2007 Further, as per MMDR Amendment Act, 2015, supplementary lease deed for extension of lease period was executed on 3 December, 2021 valid up to 2 May, 2057.

The expansion of production capacity from 3 mnt to 10 mnt will include a total handling quantity of 11.76 mnt/year out of which nearly 10 mnt is ROM, while the rest is waste. The hematite ore is of high grade, Fe64%, and the mine has estimated geological reserves of nearly 88 mnt, with mineable reserves pegged at over 58 mnt.

The iron ore mined will be used for captive consumption as well as sold in the open market to DRI and pellet manufacturers in the region. Lloyds Metals has finalised capacity addition of 72,000 t/year for its DRI Plant at Konsari village in Gadchiroli district to be commissioned in the first half of the current fiscal. The existing capacity of the plant is 270,000 t/year and capacity utilisation is 230,000 t/year.

The company has also received approval to set up 1 mnt/year of pellet manufacturing capacity, a 40,000 Nm3/hr coal gasifier and a 1 mnt coal washery, which will further aid in increasing the throughput for its sponge iron and power plant.

In FY23, Lloyds Metals plans to dispatch approximately 5.5 mnt of iron ore by reducing the stock at the pithead and, going forward, production and dispatch are expected to increase significantly.