Centre Clears Plan to Double Iron Ore Output at Lloyds Mine in Gadchiroli
In a major development for India’s mining and steel sectors, the Centre has approved the expansion of Lloyds Metals and Energy Ltd’s (LMEL) Surjagarh iron ore mine in Maharashtra’s Gadchiroli district. The decision allows the company to more than double its extraction capacity from 10 million tonnes per annum (MTPA) to 26 MTPA, making it one of the largest non-coal mining operations in the country. The clearance is valid for 30 years.
Additionally, the company has received permission to mine up to 45 million tonnes of banded hematite quartzite (BHQ), expected to yield 15 million tonnes of usable iron ore after processing.
Environmental Safeguards Made Mandatory
The approval, however, comes with strict conditions to address environmental and ecological concerns in the sensitive forested region:
- A Wildlife Management Plan must be implemented, including a 10 km radius monitoring system with camera traps to track wildlife movement and human-animal conflict.
- Transportation of BHQ will not be permitted by road; the company must construct a dedicated slurry pipeline to minimize vehicular impact.
- At least 20% of the vehicles used at the site must run on cleaner fuels such as electric, solar, or CNG.
- All commitments made during the public hearing must be fulfilled within a three-year timeframe.
These measures follow recommendations by a central sub-committee that inspected the site and highlighted the area’s biodiversity and tribal population vulnerabilities.
Maoist Zone, Past Violence, and Legal Scrutiny
The Surjagarh mining zone lies deep in Maoist-affected territory. It has a troubled history, including violent disruptions such as a 2016 incident where trucks and machinery were torched by insurgents. Mining operations, though initiated in 2016, have consistently remained below full capacity due to security concerns and opposition from tribal communities.
LMEL also faced legal scrutiny for past operations without updated environmental clearance. A violation case was registered by the Maharashtra Pollution Control Board in 2022, leading to a revised clearance process that included increasing capacity under the “violation category” last year.
Economic Upside and Strategic Value
Despite its challenges, Surjagarh is rapidly gaining prominence in India’s mineral economy. LMEL has pledged significant investments, including over ₹6,000 crore in capital outlay by FY26. The company is also developing steel and pellet manufacturing infrastructure at Konsari, more than 100 km from the mine site, linking raw material extraction to downstream steel production.
The expansion aligns with both state and national objectives to transform Gadchiroli into an industrial hub. This strategy serves a dual purpose: unlocking mineral wealth and strengthening state presence in a conflict-prone area by integrating economic development with counter-insurgency measures.
Looking Ahead
While the project promises economic gains and employment in a backward region, its success depends heavily on balancing growth with ecological preservation and tribal welfare. The coming years will test whether India can convert mineral abundance into sustainable prosperity without triggering further unrest in one of its most sensitive districts.
