Lloyds Metals and Energy Ltd announces joint venture with Mandovi River Pellets Pvt Ltd

Lloyds Metals and Energy Limited (LMEL) has unveiled a strategic partnership with Mandovi River Pellets Private Limited (MRPPL) through a formal "Bilateral Contract." LMEL is embarking on a long-term arrangement with MRPPL, focusing on the supply of iron ore and pellets, as stated in the official notification. This pact, signed by both parties, will come into effect starting October 2023 and extend for the next 10 years. LMEL's objective is to optimize and maximize the value derived from its iron ore reserves and mining operations. Currently, the mines operate at a capacity of 10 million metric tonnes per annum (MMTPA), with a lease that extends until the year 2057.

LMEL to initiate modern Pellet plant: LMEL has outlined plans to construct a state-of-the-art pellet plant in Konsari, Gadchiroli, over the next 2-3 years. This plant will have a capacity of 2 x 4 million metric tonnes (MMT), making it one of India's largest and most cost-effective merchant pellet plants. LMEL is set to acquire technology from Newfer GmbH for this endeavor. Additionally, LMEL will actively participate in the enhancement of MRPPL's pelletization plant in Goa by offering technological support to improve manufacturing processes and increase production capacity.

MRPPL- The pelletization plant, currently operating at a 2 MMTPA capacity in Goa, holds the distinction of being the oldest in India and the third such facility globally. LMEL will ensure a consistent supply of iron ore to this plant for the production of high-grade pellets. Moreover, LMEL will actively participate in marketing the plant to expedite its commissioning and safeguard against potential future bottlenecks. The high-grade pellets produced and sold by LMEL and MRPPL will be exclusively branded as "LMELPEL," pronounced as "EL-Mel-Pel." Regarding the transaction of raw materials and pellets between the two parties, LMEL and MRPPL, the pricing for these transactions will be determined on an arm's length basis.