India’s Lloyds Metal and Energy Limited (LMEL) has commissioned a 4 million mt per year pellet plant at Konsari, in the western state of Maharashtra, and an 85-kilometre iron ore slurry pipeline connecting its Hedri mine to the new plant, a company statement said on Monday, June 23.
These projects are expected to significantly enhance LMEL’s integrated value chain, optimize logistics, and reduce production costs, it said.
The construction of the pellet plant started after receiving environmental clearance in November 2023, and was completed over a period slightly longer than the originally planned 18-month timeline. Despite this, the project is considered a world-class development and ranks among the largest single-configuration pellet plants in India, the company said.
Designed to convert iron ore fines into high-quality pellets for steelmaking, the Konsari plant complements the company’s existing mining operations and aligns with its planned capacity expansions. It is expected to drive margin improvement in the medium term by enabling value addition and better resource utilization.
In addition, the 85 km slurry pipeline, the first of its kind in western India, has been built in record time. It creates an environmentally sustainable and cost-efficient transportation link between the Hedri mine and the Konsari plant. By reducing reliance on road transport, the pipeline is set to slash internal freight costs and lower the company's carbon footprint, while ensuring smoother material movement, LMEL said.
With the operationalisation of the new pellet plant, LMEL’s total pellet production capacity stands at 10 million mt per year and 0.34 million mt per year direct reduced iron (DRI) production along with 2 million mt per year pellet production in alliance with Mandovi River Pellets. It also has captive power plants with a combined capacity of 34 MW.