Centre Approves Major Expansion of Iron Ore Mining in Maoist-Affected Gadchiroli

Gadchiroli, Maharashtra – June 8, 2025:
The Union Environment Ministry has given a major boost to mining activity in Maharashtra’s Maoist-affected Gadchiroli district by recommending environmental clearance for the expansion of iron ore output at Lloyds Metals and Energy Ltd.’s Surjagarh mine — from 10 million tonnes per annum (MTPA) to 26 MTPA.

The decision, cleared by the Ministry’s Expert Appraisal Committee (EAC) on non-coal mining, comes just weeks after the ministry approved the diversion of over 900 hectares of dense forest and the felling of over 100,000 trees for the company’s ore-washing plant in the region. The washing plant is aimed at enhancing ore quality for steel production by removing impurities.

Ecological and Legal Context

The Surjagarh mining lease lies deep within the ecologically sensitive Bhamragad Reserve Forest, part of a contiguous stretch of forest land between Maharashtra and Chhattisgarh. This region is home to a wide variety of wildlife and tribal populations. The EAC’s clearance includes strict conditions for compliance with wildlife conservation norms and mandates the implementation of a wildlife management plan in coordination with the forest department.

“The project proponent shall implement the recommendations of the wildlife conservation plan in letter and spirit… Periodic monitoring of flora and fauna should be continued in the 10 km radius of the project,” the EAC minutes stated. The committee stressed the forest’s role as an uninterrupted wildlife corridor, likening it to a “natural highway” for animal movement.

Despite the green light, the EAC acknowledged ongoing legal proceedings in the Nagpur bench of the Bombay High Court concerning earlier project expansions. It reminded Lloyds Metals to strictly adhere to environmental and safety regulations, regardless of court outcomes.

A Region of Conflict and Controversy

The mining project is located in a region known for both its rich mineral reserves and persistent Maoist insurgency. Although Lloyds received the mining lease in 2007, operations only began in 2016 and were soon disrupted by violence. In one of the worst attacks, Maoists torched 69 trucks and 3 earthmovers at the mine site in December 2016. Earlier, Lloyd Steel’s Vice President Jaspal Singh Dhillon was killed in a suspected Maoist attack.

The project has also faced resistance from tribal communities citing forest and land rights. In 2022, the Maharashtra Pollution Control Board filed a complaint against Lloyds for continuing operations after the 2007 environmental clearance had expired. The company pleaded guilty and was convicted under the Environment Protection Act, 1986.

Despite these setbacks, the company secured another clearance in 2023 to expand capacity from 3 MTPA to 10 MTPA — this time under a "violations category" after the earlier breaches.

Strategic Push for Industry in Gadchiroli

The mining expansion aligns with the Maharashtra government and Centre’s broader push to industrialize Gadchiroli — a tribal-dominated, underdeveloped district with high Maoist influence. Officials view infrastructure and industry as tools for development and counterinsurgency, though critics argue that fast-tracking such projects can undermine ecological integrity and indigenous rights.

The Surjagarh lease, spanning 348 hectares, is valid until May 2057. With this latest approval, Lloyds Metals and Energy is poised to become a major player in India’s iron ore supply chain, though challenges related to security, ecology, and social consent remain unresolved.