Centre clears plan to more than double iron-ore output at Lloyds mine in Maharashtra's Maoist-affected Gadchiroli

Indian Express

08-06-2025

The Union Environment Ministry's Expert Appraisal Committee (EAC) on non-coal mining projects has recommended environmental clearance for Lloyds Metals and Energy Ltd. to more than double iron-ore output at its Surjagarh mine in Maharashtra's Gadchiroli district—from 10 million tonnes per annum to 26 MTPA.
The approval — recommended for a region long affected by Maoist violence — comes as both the Maharashtra government and the Centre push to bring more industry into Gadchiroli. It also follows, by just a few weeks, another green light from the Environment Ministry to clear over 900 hectares of forest and cut more than 100,000 trees for Lloyds Metals and Energy's ore-washing plant. That plant will 'clean' the iron ore—removing dirt and other unwanted bits—to produce higher-quality material for steelmaking.
According to the minutes of the EAC meeting held on May 15, the clearance was granted with both standard and project‐specific conditions, including compliance with a wildlife management and conservation plan.
The mine lease lies within the Bhamragad Reserve Forest, an area of hills and plains that's part of a much larger, uninterrupted stretch of woodland running from Maharashtra into Chhattisgarh. In April, a sub-committee of the EAC visited the site and made recommendations on how to protect the local wildlife. They pointed out that because this forest isn't broken up by roads or farms, animals can move freely between different parts of it—like using an open highway through the trees—which helps keep the entire ecosystem healthy.
'Given the ecological sensitivity of the Bhamragad reserve forest, the project proponent shall implement recommendations of the wildlife conservation plan in letter and spirit in consultation with the forest department. Periodic monitoring of flora and fauna should be continued in the 10 km radius of the project,' the EAC said, as per the minutes.
The EAC approved the mine expansion even though several petitions against earlier enlargements are still being heard by the Nagpur bench of the Bombay High Court. They acknowledged these ongoing court cases and reminded the company to follow every environmental law and safety measure exactly as prescribed.
The Surjagarh iron ore mining lease, spread over 348 hectares, was initially granted to the company for 20 years in 2007 and was later extended until May 2057, according to company documents submitted to the Centre. Though the company received the mining lease in 2007, mining operations commenced only in 2016, but had to be halted as it was targeted by Maoists. It also faced protests and agitations from tribal communities over issues of tribal and forest rights.
In December 2016, Maoists torched 69 trucks and three earth movers at the Surjagarh mine in Gadchiroli – one of the biggest arson attacks by Maoists in the region. Before the 2016 violence, Jaspal Singh Dhillon, vice president of Lloyd Steel, was shot dead, allegedly by Maoists.
In December 2022, the Maharashtra Pollution Control Board filed a complaint under Sections 15, 16 and 19 of the Environment Protection Act, 1986, in the Court of the First Class Judicial Magistrate at Aheri, Gadchiroli. Company officials voluntarily pleaded guilty and were convicted, according to ministry and court records.
In the 2021–22 financial year, the mine produced just 3.207 million tonnes of iron ore—85 percent of its permitted 3 MTPA capacity. This shortfall was largely due to Maoist activity and related security concerns in the region.
Maoist insurgency in Gadchiroli has been ebbing gradually owing to operations of the state's elite anti-Naxal commando force C60 as well as operations of the Central forces.
Chief Minister Fadnavis spent the first day of the year in Gadchiroli, where 11 Maoists surrendered before him and he also inaugurated a 32-km long state transport bus service.
An award-winning journalist with 14 years of experience, Nikhil Ghanekar is an Assistant Editor with the National Bureau [Government] of The Indian Express in New Delhi. He primarily covers environmental policy matters which involve tracking key decisions and inner workings of the Ministry of Environment, Forest and Climate Change. He also covers the functioning of the National Green Tribunal and writes on the impact of environmental policies on wildlife conservation, forestry issues and climate change.
Nikhil joined The Indian Express in 2024. Originally from Mumbai, he has worked in publications such as Tehelka, Hindustan Times, DNA Newspaper, News18 and Indiaspend. In the past 14 years, he has written on a range of subjects such as sports, current affairs, civic issues, city centric environment news, central government policies and politics. ... Read More