India: Shyam Metalics commissions 1.5 mnt/year iron ore beneficiation plant in Odisha

• Higher-grade iron ore feed expected to support pellet production
• Move reflects growing trend of backward integration among steelmakers

Shyam Metalics and Energy Ltd (SMEL) has commissioned a 1.5 million tonnes (mnt) per year iron ore beneficiation plant at Sambalpur, Odisha, with an investment of INR 150 crore. The facility is designed to upgrade low-grade iron ore into higher-grade concentrate, improving the quality and availability of feedstock for the company’s downstream pellet and steel operations.

Brij Bhushan Agarwal, Chairman and Managing Director, Shyam Metalics and Energy Limited, said, “Commissioning of our 1.5 mnt/year facility marks a transformative milestone for Shyam Metalics. This INR 150 crore facility is already delivering on its operational promises — maximising the value of our raw material base, lowering overall production costs, and immediately strengthening our bottom line.”

The development is expected to strengthen SMEL’s integrated operations by increasing captive concentrate availability for its 6 mnt/year pellet capacity for both Sambalpur and Durgapur plants. Better-quality feedstock will help reduce dependence on externally procured material, improve pellet quality, and support more stable operations. The added pellet output will, in turn, benefit the company’s 2.97 mnt/year DRI capacity, where pellets serve as a key raw material.

Shyam is currently procuring raw material from Odisha- and Maharashtra-based miners for pellet and DRI manufacturing.

For the wider market, the investment reflects a growing trend among integrated steelmakers to secure raw material supplies through backward integration. With iron ore quality varying across mines and input costs remaining elevated, beneficiation plants are becoming increasingly important for converting lower-grade ore into value-added feedstock.

The plant is equipped with water- and energy-efficient beneficiation technology, helping improve resource utilisation while reducing waste generation. Although the commissioning is unlikely to have a significant impact on domestic pellet supply in the near term, it is expected to enhance Shyam Metalics’ raw material security, improve operational flexibility, and support margins through lower feedstock costs and higher captive utilisation.