Nagpur: Riding on the infrastructure sector demand, Lloyds Metals and Energy Limited (LMEL) — which mines iron ore from Gadchiroli — now plans to launch TMT bars, a key input for building projects. The first finished steel project of the company, which runs the only iron ore mine in Gadchiroli, is expected to reach the markets in over six months, said those who are part of the project. LMEL is eyeing the TMT bar markets in central and southern India.Iron ore, which is the basic raw material, will be sourced from Surjagarh mines in Gadchiroli. The pellets, the next stage in the production cycle, are also being made in the district. The final product — the steel bar — is planned to be made by the company in Ghugus in neighbouring Chandrapur district.LMEL has already begun expansion of the plant in Ghugus and is also building an integrated steel complex at Konseri in Gadchiroli, of which the pellet plant is a part.Steel sector experts say a major push for infrastructure projects across the country has created a demand for TMT bars. “Under the current situation, there is enough space for a new player in the segment. For LMEL, which already has a mine, it comes as a profitable value addition business making an end product from the raw material drawn from its own source,” said Dipen Agrawal, the president of Chamber of Associations of Industries and Trade of Maharashtra (CAMIT) and also a steel businessman.According to a recent stock market filing by LMEL, the company has drawn up an integrated iron ore extraction plan, starting from its mines at Surjagarh, passing through Konseri plant, stockyard in Chandrapur and finally Ghugus plant. The company is developing a pipeline to transport iron ore in slurry, ultimately reaching up to Ghugus plant. The pipeline transport is expected to cut the cost from Rs1,000 to Rs800 a tonne.
