Nagpur | Nov 03, 2017: Lloyds Metals and Energy Limited (LMEL) has resumed iron ore mining operations at the Surjagarh area of Gadchiroli district, said a source related to the development. The work was stopped for the rainy season, as rains often hamper mobility in the remote district.
Due to Naxalites' threat mining takes place under police protection at Surjagarh. Around 200 strong force is deployed in the area to ensure safe transport of iron ore from the mines. Even as the company had secured the lease in 2007, it could not start mining due to Naxal threat. The rebels had also killed an officer of vice-president's rank in 2013. Mining could only start in April last year under police protection.
The company is at present undertaking only surface mining. It also has plans to start a sponge iron plant in the district. Iron ore which is the raw material will be sourced from the Surjagarh mine.
However, in order to start the plant, the company needs to have an assured supply from the mine first. At present only surface mining is done. To get sizeable quantity advanced machinery will have to be deployed for excavation, the source said.
The proposed iron ore plant at Gadchiroli will need at least 50,000 tons of iron ore a month. Unless the security and continuation of operations is confirmed it would not make business sense to start the plant said sources.
The company also has a sponge iron plant at Ghuggus in neighbouring Chandrapur district. It is mainly run on pellets made out of iron ore fines. Pellets are an alternative to iron ore as raw material. The material procured from open market. The Ghuggus plant does not depend on the Surjagarh mine.
(Source: https://timesofindia.indiatimes.com/)