Lloyd Metals & Energy Ltd. (LMEL) has received Environmental Clearance (EC) and consent to operate (CTO) for enhancing iron mining capacity to 10 million tonnes (mnt) per annum. The company was earlier awarded a lease for iron ore mines in 2007 at Surjagarh village in Maharashtra’s Gadchiroli district, with an initial capacity of 3 mnt/year. Reassessment of mining reserves is above 180 mnt at present.
Recently, the government has approved the company’s request to enhance iron ore capacity for the mine and granted EC, while the Maharashtra Pollution Control Board (MPCB) has issued the CTO.
The company has commenced mobilization of all necessary equipment and machinery to enhance capacity. In addition, associated projects related to the evacuation of ore to the nearest railhead, as well as facilitating road movement, have also been initiated.
The company has re-assessed its iron ore reserves at existing mines. Initial drilling conducted pre-1972 had pegged the reserves at 90 mnt.
Preliminary reports suggest reserves are above 180 mnt. Further, studies are also being undertaken to evaluate BHQ (Banded Hematite Quartz) quantities. Reserves of BHQ, which can be beneficiated, have an initial estimate of 550 mnt.
These are preliminary studies and the final UNFCC-approved JORC report shall be issued under the aegis of Tata Steel Industrial Consulting Limited soon after detailed study, which is expected by H1FY24.
The company remains confident of mining, handling and selling the total quantity of 10 mnt of iron ore in FY24. It has already demonstrated its execution capabilities both in mining and project execution of its 2*95 tonnes per day sponge iron plant which is scheduled to get commissioned in FY24.
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