Lloyds Metals and Energy Ltd and Tata Steel Ltd have entered into a nonbinding MoU

Lloyds Metals and Energy Limited represented by its MD, Mr. B Prabhakaran has entered in a non-binding MoU with Tata Steel Limited represented by its CEO & MD, Mr. T V Narendran to explore strategic partnership in the areas of raw material mining, logistics, pellet and steel making.

The proposed partnership aims at utilising the natural synergy in the business operations between Lloyds Metals and Tata Steel. The MoU sets out a framework for both companies to evaluate potential cooperation in greenfield steel making projects, iron ore mining, slurry pipeline infrastructure, pellet making in iron ore rich states in India, direct reduced iron production and exports of value-added low carbon iron and steel products among other associated areas of mutual interest. The objective is to utilise the complementary strengths of Tata Steel and Lloyds Metals to promote sustainable and efficient growth in the domestic steel sector.

Under the MoU, both the companies intend to explore the following opportunities in Gadchiroli district of Maharashtra:

1. Cooperation to operate mining concessions and associated infrastructure, with the objective to increase iron ore production and be a prominent player in this growing region developing as the next steel hub in the country.

2. Evaluate potential strategic cooperation of Tata Steel in the existing integrated steel projects being developed by Lloyds Metals.

All proposed initiatives are subject to further detailed evaluation, due diligence, and receipt of requisite internal and regulatory approvals.

Tata Steel has also become a co-owner in Brahmani River Pellet Limited (BRPL), by acquiring a 50.01% stake in the company. This plant operates a 4 MTPA pellet plant in Jajpur, Odisha along with a 212 km slurry pipeline, both connecting a Beneficiation plant situated at Barbil.

Tata Steel is one of the oldest steel companies in the world, with a crude steel making capacity of 35 MTPA, making it the 8th largest steel company in the world. Tata Steel has integrated steelmaking facilities with a diverse portfolio of value added and branded steel products.

Lloyds Metals is a pioneer in mining and metal operations in Maharashtra and currently operates the largest iron ore mine in the country located in Gadchiroli. Along with a focus on producing high quality DRI, pellets and iron ore, Lloyds Metals is now venturing into integrated steel manufacturing positioning Gadchiroli as the emerging steel hub in India.

Shares of LLOYDS METALS AND ENERGY LTD. was last trading in BSE at Rs. 1281.60 as compared to the previous close of Rs. 1239.55. The total number of shares traded during the day was 19510 in over 1517 trades.

The stock hit an intraday high of Rs. 1288.80 and intraday low of 1236.00. The net turnover during the day was Rs. 24602198.00.

Source : Equity Bulls

Keywords

LLOYDSMETALSANDENERGY INE281B01032 NonBindingMoU TataSteel