Lloyds Metals and Energy Limited (LMEL) has commissioned a 360,000 tonnes per annum (360 KTPA) sponge iron plant at Ghugus, Maharashtra. The facility, executed on a turnkey basis by Lloyds Engineering Works Limited, received environmental clearance in February 2024, and the first of its two kilns has been fired. Operations are being ramped up in phases.
With this addition, LMEL’s total installed sponge iron capacity has increased to 700 KTPA. The Ghugus plant is intended to support captive utilisation of mined iron ore and strengthen the company’s integrated steel-making operations.
The new unit is the third major project commissioned by the company in the current financial year, following the start of operations of an 85-kilometre slurry pipeline and a 4 million tonnes per annum pellet plant.
“Commissioning the Ghugus plant in just over 18 months from receiving the Environmental Clearance reflects the strength of our internal planning and project execution frameworks. For us, timely execution is not just an operational milestone; it is a strategic lever that enables faster monetisation, operating efficiency, and long-term value creation,” said Rajesh Gupta, Managing Director of Lloyds Metals.
Sponge iron, also known as Direct Reduced Iron (DRI), is a form of iron produced by the direct reduction of iron ore—lumps, pellets, or fines—using a reducing gas (mainly composed of hydrogen and carbon monoxide) derived from natural gas or coal. Its name reflects its porous, spongy structure, which results from the removal of oxygen from iron ore in the reduction process.
Lloyds Metals and Energy Limited operates in the steel and mining sector with activities spanning sponge iron production, pellet plants, and related infrastructure projects. The company has been expanding its integrated capacity through investments in captive ore mining, pipelines, and processing facilities.