Lloyds Metals Expands Iron Ore Mining in Maharashtra

The Union Environment Ministry’s Expert Appraisal Committee has recommended environmental clearance for Lloyds Metals and Energy Ltd. This approval allows the company to more than double its iron ore output at the Surjagarh mine in Maharashtra. The output will increase from 10 million tonnes per annum to 26 million tonnes per annum. This decision comes amid the Maharashtra government’s efforts to boost industrialisation in Gadchiroli, an area historically impacted by Maoist violence.
Environmental Clearance Process
The Expert Appraisal Committee reviewed the project and granted clearance with specific conditions. These include compliance with a wildlife management and conservation plan. The mine site is located within the ecologically sensitive Bhamragad Reserve Forest. The committee emphasised the importance of protecting local wildlife and maintaining ecosystem integrity.
Impact on Local Wildlife
The Bhamragad Reserve Forest is crucial for maintaining biodiversity. It serves as a corridor for wildlife movement. The EAC brought into light the need for periodic monitoring of flora and fauna within a 10 km radius of the mining project. Recommendations from the wildlife conservation plan must be implemented in consultation with the forest department.
Historical Context of the Mine
The mining lease for Surjagarh was granted in 2007 for a period of 20 years, later extended to 2057. Although operations began in 2016, they faced interruptions due to Maoist activities. The mine has been a target for violence, including attack in 2016 where numerous vehicles were destroyed.
Legal Challenges and Compliance Issues
The EAC’s approval comes despite ongoing legal challenges against earlier expansions of the mine. The Nagpur bench of the Bombay High Court is currently hearing petitions related to these issues. In December 2022, the Maharashtra Pollution Control Board filed a complaint regarding the mine’s operations after its initial environmental clearance expired. Company officials were convicted for these violations.
Recent Developments in Maoist Activity
Maoist insurgency in Gadchiroli has been declining due to state and central government operations. The elite anti-Naxal commando force C60 has played role in reducing violence. Recent events indicate a shift in local dynamics, with some Maoists surrendering to authorities.
Future Prospects for the Mining Project
The expansion of the Surjagarh mine is expected to contribute to the local economy. The project aims to produce higher-quality iron ore for steelmaking. The company received a prior environmental clearance to increase production from 3 million tonnes per annum to 10 million tonnes per annum in 2023, despite being classified under the ‘violations category case’.