Lloyds Metals and Energy Limited (LMEL) and Tata Steel Limited have signed a non-binding memorandum of understanding (MoU) to jointly explore collaboration opportunities across mining, logistics, pelletisation and steelmaking, according to exchange filings.
Scope of Collaboration
The MoU outlines a framework for both companies to assess synergies in raw material mining, pellet production, slurry pipeline infrastructure, direct reduced iron (DRI) projects and potential greenfield steelmaking units.
The discussions also extend to opportunities in exporting low-carbon iron and steel products, in line with global demand for cleaner industrial output.
A key focus area is Gadchiroli, where LMEL operates India’s largest iron ore mine. Joint efforts could help optimise mining resources, enhance processing capacity and support the development of the region as a large steelmaking hub.
Evaluation of Steel Projects
The companies will examine possibilities for Tata Steel to participate in LMEL’s integrated steel initiatives, including projects involving wire rods, hot-rolled coils and downstream units.
Strategic Context
For LMEL, the partnership comes at a defining stage as it expands from a mining-focused company into an integrated steel producer. Tata Steel brings scale, technological capabilities and extensive operational expertise, with a crude steel capacity of 35 MTPA.
The announcement also notes Tata Steel’s 50.01% stake in Brahmani River Pellets Ltd (BRPL), which operates a 4 MTPA pellet plant in Jajpur and a 212-km slurry pipeline connected to its Barbil beneficiation facility.
LMEL is simultaneously ramping up capacity to 26 MTPA in mining and 12 MTPA in pellets, supported by renewable energy integration, slurry logistics and one of India’s largest EV mining fleets.
Summary
Lloyds Metals and Tata Steel have signed an MoU to explore partnerships across mining, pelletisation, slurry pipelines and steelmaking. The collaboration focuses heavily on Gadchiroli’s iron ore resources and potential joint development of integrated steel projects. The partnership aligns with LMEL’s shift toward full-scale steel production and leverages Tata Steel’s strong capacity and technological expertise.
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