Lloyds Metals and Energy share price rose after receiving environmental clearance to expand iron ore mining to 55 MTPA, positioning it as India’s largest.
On Thursday, June 26, the share price of Lloyds Metals and Energy jumped over 2% as it secured the nod for the Iron Ore Expansion. As of 12:10 pm IST, the stock is trading at ₹1,533 per share, up by 0.77%. On a year-to-date basis, the stock is down by 23.04% while in the last month it is up by 12.62%.
Lloyds Metals and Energy Limited (LMEL) announced today that it has received Environmental Clearance (EC) from the Ministry of Environment, Forest, and Climate Change, Government of India (IA Division), to expand its iron ore mining capacity to a maximum of 55 million tonnes per annum (MTPA).
This significant development positions LMEL's mine to become the largest iron ore operation in India, aiming to substantially enhance raw material security for domestic steel producers.
The expansion is strategically important for the burgeoning steel industry in Gadchiroli, where a growing number of companies are establishing steel production facilities. LMEL's mine is expected to serve as a foundational enabler for these downstream industries. The mining roadmap outlines an initial production of 26 MTPA (maximum) of Hematite (Direct Sales Ore). Subsequently, the capacity will ramp up to 55 MTPA, which will include 45 MT (maximum) of Banded Hematite Quartzite (BHQ).
As beneficiation plants become operational, LMEL plans to replace Hematite DSO with beneficiated ore. The mine is designed with sustainability as a core principle, integrating battery-operated HEMMS, electrically powered machinery, LNG vehicles, and renewable energy, aiming to serve as a valuable case study for future sustainable mining initiatives.
LMEL is also establishing one of the world's largest Iron Ore Beneficiation facilities in Hedri. A pilot plant with a capacity of 5 TPH (Tonnes Per Hour) is already operational, achieving desired results with over 66% Fe and a yield exceeding 35%. Based on these positive results, the company is proceeding with the detailed engineering of the Beneficiation Complex. The concentrate produced after beneficiation is anticipated to be world-class pellet and sinter-feed material, which, with one of the lowest gangue percentages, will contribute to sustainable steel production in the future.
This expansion is expected to bring substantial benefits to LMEL, supporting cost-effective and sustainable steel production by ensuring long-term ore security for both captive use and potential external supply. It firmly anchors LMEL's forward integration strategy, enhancing its plans for pellet and steel making.
The in-house availability of iron ore is projected to significantly improve cost structures and contribute meaningfully to the company's EBITDA margins. LMEL's integrated approach, cost leadership, and calibrated capital expenditure are set to position it as one of the most efficient and cost-effective steel producers in India. The effective date for the commencement of operations for the enhanced capacity will be after receiving the Consent to Operate (CTO) from the Maharashtra Pollution Control Board (MPCB), for which an application has been made and is expected shortly.
For the quarter ending March 2025, the company reported revenue from operations of ₹1,182.66 crore, reflecting a decline of 23.49 per cent compared to ₹1,545.72 crore in the same quarter of the previous year. The profit after tax also dropped by 26.92 per cent, falling to ₹202.47 crore from ₹277.06 crore in March 2024.
On an annual basis, the company recorded a slight increase in revenue, which rose by 2.24 per cent to ₹6,626.31 crore in FY25 from ₹6,481.01 crore in FY24. Profit after tax improved to ₹1,449.3 crore in FY25 compared to ₹1,242.93 crore in the previous financial year.
Lloyds Metals & Energy is into the business of manufacturing of Sponge Iron, Power generation and mining activities.
Disclaimer: The article is for informational purposes only and not investment advice.
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