Lloyds Metals and Energy Limited (LMEL), a major iron ore miner and direct reduced iron (DRI) producer based in India, has taken a strategic step to increase strength in the mining sector. The company has acquired Thriveni Earthmovers and Infra Pvt. Ltd. (TEIL), a mining contracting firm, for 79.82 percent for a consideration of 70 crore rupees (approximately USD 8.4 million).
The acquisition was approved by LMEL's board of directors in December 2024 and the necessary clearance from the Competition Commission of India was obtained in May. With this transaction, TEIL officially became a subsidiary of LMEL.
TEIL is an experienced contractor operating in the extraction of many minerals, especially iron ore and coal. The addition of the company's operations to LMEL means not only an increase in operational capacity for Lloyds Metals. It also aims to significantly reduce costs and improve profitability in iron ore mining.
The integration is also expected to have a positive impact on LMEL's financials. TEIL's contract-based business model will strengthen LMEL's consolidated balance sheet by providing the company with regular and predictable revenue streams. In addition, TEIL's existing projects and field experience will make it easier for LMEL to evaluate new mining opportunities within India and internationally.
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