Large-cap Mining & Minerals Company Gets Green Nod to Expand India’s Largest 55 MTPA Iron Ore Mine
The stock has gained 12.62 per cent over the past month but is down 23.04 per cent year-to-date.
Lloyds Metals and Energy Ltd (LMEL) has received environmental clearance from the Ministry of Environment, Forest, and Climate Change (IA Division) to expand its iron ore mining capacity to 55 million tonnes per annum (MTPA), making it the largest iron ore mine in India. Following the announcement, the stock rose over 2 per cent on Thursday, June 26. As of 12:10 pm IST, it was trading at Rs 1,533 per share, up by 0.77 per cent. The stock has gained 12.62 per cent over the past month but is down 23.04 per cent year-to-date.
The company’s expansion is expected to provide long-term raw material security to the growing steel industry in Gadchiroli, where several steel units are being developed. Initially, LMEL will begin with 26 MTPA of Hematite (Direct Sales Ore), and later scale up to 55 MTPA, including 45 MT of Banded Hematite Quartzite (BHQ). LMEL also plans to shift from Hematite DSO to beneficiated ore, with a focus on sustainable operations using battery-operated HEMMS, LNG vehicles, and renewable energy solutions.
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In parallel, LMEL is building one of the world’s largest iron ore beneficiation facilities at Hedri. A pilot plant with a capacity of 5 TPH has already demonstrated yields exceeding 35 per cent and iron content above 66 per cent. The beneficiation complex is expected to produce high-quality concentrate suitable for pellet and sinter-feed, supporting the company’s integrated steelmaking strategy.
The expansion is expected to enhance cost efficiency and improve EBITDA margins by securing in-house iron ore supply. This aligns with LMEL’s forward integration into pellet and steel manufacturing. The company is awaiting the Consent to Operate (CTO) from the Maharashtra Pollution Control Board, after which full-scale operations can commence.
In terms of financial performance, LMEL reported revenue of Rs 1,182.66 crore for the quarter ended March 2025, down 23.49 per cent year-on-year. Profit after tax declined 26.92 per cent to Rs 202.47 crore. For FY25, annual revenue increased 2.24 per cent to Rs 6,626.31 crore, while PAT rose to Rs 1,449.3 crore from Rs 1,242.93 crore in FY24.
Lloyds Metals & Energy is engaged in sponge iron manufacturing, power generation, and mining. The stock, part of the mid-cap segment, has seen volatile movements in recent months and is closely watched after the recent environmental clearance milestone.
Disclaimer: The article is for informational purposes only and not investment advice.