Lloyds Metals shares in focus after environmental clearance for 55 MTPA iron ore expansion

Shares of Lloyds Metals and Energy Ltd (LMEL) are likely to remain in focus during Thursday's trade after the company announced it has received a crucial environmental clearance (EC) to expand its iron ore mining capacity to 55 million tonnes per annum (MTPA) -- setting the stage for India's largest iron ore mining operation.

In a regulatory filing, LMEL termed the clearance a "defining milestone" in its growth trajectory, underscoring the strategic importance of the project for India's mineral and steel sectors.

"This is a pivotal development not just for LMEL, but also for the broader steel ecosystem emerging in the Gadchiroli region," the company said. The mine will play a key role in securing raw material for existing and upcoming steel-making units in the area.

As part of a well-calibrated roadmap, LMEL plans to initially extract up to 26 MTPA of Hematite (Direct Sales Ore), followed by a scale-up to 55 MTPA, including 45 MTPA of Banded Hematite Quartzite (BHQ). Over time, the company aims to transition from hematite DSO to beneficiated ore, backed by its world-class beneficiation facilities.

The company is already operating a 5 TPH pilot beneficiation plant in Hedri, achieving promising results -- yielding over 66 per cent Fe content and a recovery rate of more than 35 per cent.

Notably, LMEL's mining operations are designed with sustainability at their core, leveraging battery-operated heavy equipment, LNG vehicles, electrically powered machinery and renewable energy sources. This green mining approach is expected to set a benchmark for the sector.

The mine's expansion will strengthen LMEL's forward integration into pellet and steel production, support cost-effective operations and boost EBITDA margins. With assured in-house ore supply, the company is poised to emerge as one of India's most efficient steel producers.

Operations under the enhanced capacity will commence post receipt of the consent to operate (CTO) from the Maharashtra Pollution Control Board (MPCB), which is expected shortly.

Meanwhile, LMEL shares settled 0.27 per cent lower at Rs 1,522.85 on Wednesday.