Lloyds Metals and Energy has entered into a memorandum of understanding (MoU) with Thriveni Earthmovers (TEPL) to incorporate a new joint venture (JV) company in the state of Maharashtra for carry mining operations in Maharashtra and neighbouring states, but starting with the Iron Ore Mining operations of Lloyds Metals Energy (LMEL).
The iron ore mine of Lloyds Metals and Energy is situated at Surjagarh, Gadchiroli district.
The lease is for an area of 348 ha (860 acre) and has total deposits (proven and probable) of more than 91 million tonne. These reserves are of the grade of approx 63 Fe.
The mine has been operating sporadically since April 2016. TEPL has a revenue of more than Rs 5,000 crore. The company has mined over 30 million tonne of iron ore in 2019-20, as the Developer & Operator (MDO) to various lease owners in Odisha.
Thriveni Sainik (a Thriveni JV) has entered into a MDO for mining of coal for NTPC for their Pakri Barwadih Coal Mining project in Jharkhand.
In the last three years TEPL JV has produced nearly 10 million tonne of coal for NTPC.
Apart from this, TEPL is operating Barite mines, coal mines in Indonesia and has entered into a JV for manufacturing pellets of four million tonne at Bhramani River Pellets with a JSW Group Company in Odisha.
The company also operates an iron ore slurry pipeline. For these operations, TEPL has owned mobile mining asset base of more than 1,600 machines, including loaders (over 250 million BCM PA), Haulers (over 200 million BCM PA) and associated drilling machines, apart from personnel movement machines, weighbridges, central iron ore processing units, etc.
The target of the JV with TEPL is to raise the mining operations of LMEL Surjagarh Mines to one million tonne within 12 months of commencing and three million tonne (rated capacity) in approximately three years.
The MoU also envisages formation of a thinly capitalised JV between LMEL & TEPL. There would be zero capital investments by LMEL for this activity.