India’s Lloyds Metals and Energy Limited (LMEL) has acquired a majority 80 percent equity stake in mining equipment manufacturer Thriveni Earthmovers and Infra Limited (TEIL), to enhance efficiency and the costs of its own mining operations, company sources said on Thursday, July 3.
TEIL is also a mining contractor in the coal and iron ore sectors.
The acquisition of TEIL offers several strategic advantages for LMEL and is expected to significantly reduce LMEL's iron ore mining costs, thereby enhancing overall cost efficiency. Furthermore, this integration is anticipated to substantially boost LMEL's consolidated financials by adding significant revenue streams, LMEL said.
TEIL's established operations will enable LMEL to explore new mining opportunities both within India and internationally. The long-term, contract-based business model of TEIL also provides LMEL with a stable, scalable, and predictable outlook for its future operations, it added.
LMEL is engaged in in iron ore mining, direct reduced iron (DRI) production and power generation, operating three verticals of sponge iron, mining and power generation in the western state of Maharashtra.
In June this year, the company was granted a new environmental clearance to ramp up the capacity of its Gadchiroli iron ore mine in Maharashtra to 55 million mt per year.