In-Principle Approval Granted to Gadchiroli Iron Ore Plant

In-Principle Approval Granted to Gadchiroli Iron Ore Plant

In-Principle Approval Granted to Gadchiroli Iron Ore Plant –

Why in News? 

Recently, the Ministry of Environment, Forest and Climate Change granted in-principle forest clearance for an iron ore beneficiation plant in Gadchiroli district of Maharashtra. This decision has been taken to accelerate mining and industrial development in the region.

Gadchiroli Iron Ore Beneficiation Plant

• Location:
  • This iron ore beneficiation plant will be established in Gadchiroli district of Maharashtra.
  • This district is a backward and Left-Wing Extremism (LWE) affected area of Maharashtra.
  • The proposed iron ore plant is being set up in the Surjagarh region, which is known for minerals like iron ore.
  • The state government has established the Gadchiroli Mining Authority, which will regulate the mineral policy of this region.
• Company:
  • This plant is planned to be set up by Lloyds Metals and Energy Limited, which received the Surjagarh mining lease in the year 2007.
  • Now the company has received in-principle forest clearance from the central government, which will accelerate the project.
• Clearance:
  • On 12 May 2025, the clearance was granted based on the recommendation of the Forest Advisory Committee (FAC) of the Ministry of Environment, Forest and Climate Change.
  • The ministry has permitted land use for the project in three phases —
    • First phase: 300 hectares of land use
    • Second phase: 200 hectares use, after the success of the first phase
    • Third phase: 237 hectares of land use, after review of the previous phases
• Objective:
  • This plant is proposed to beneficiate low-grade iron ore (Hematite Quartzite) extracted from the existing Surjagarh mine.
  • Through the beneficiation plant, impurities will be removed from the mineral to make it high quality, which can be used in the steel industry.
  • Through this, the government’s aim is to ensure planned and maximum utilization of mineral resources.
• Features:
  • Through this plant, it will be possible to extract ore from 348 hectares of mining area, whose lease is valid till 2057.
  • The plant’s ore source will be the existing Surjagarh mines, which will reduce transportation costs and enable efficient use of local resources.

Historical Background of Gadchiroli Mining Area

• The potential of iron ore in the Gadchiroli region was first identified by the famous industrialist Jamsetji Tata in the early 1900s.
  • At that time, this region was considered extremely important in terms of quality and quantity of ore. 
• For a long time, despite the abundant reserves of iron ore in the Gadchiroli region, mining activities remained limited to paperwork.
• Later, Lloyds Metals and Energy Limited (LMEL) was granted a 20-year lease in 2007 for iron ore mining in the Surjagarh region.
  • The company could not start mining work due to continuous opposition, violence, and Maoist activities.
• In 2016, Maoists launched a massive attack in the Surjagarh mining area, in which 69 trucks and 3 earth movers were set on fire. After that, the project was halted for a long time.
• In the last five years, mining activities have gradually resumed. With the support of state and central government security strategies, especially the C-60 Commando Force confidence in the region’s security increased, and the company got the opportunity for implementation.
• Now, in the year 2025, this region is once again moving towards industrial resurgence, where the possibilities of local development and infrastructure improvement have become strong.

Why is the Gadchiroli mining region and beneficiation plant needed?

• Global Importance:
  • Maharashtra’s Gadchiroli district is emerging as a hub for India’s industrial future. This region has such a vast reserve of iron ore that it can push India to the second position globally in iron ore production.
  • The 64% purity iron ore available here is of world-class quality, which significantly reduces the requirement of coking coal.
• Projects:
  • In February 2025, the JSW Group announced the establishment of the world’s largest steel plant in Gadchiroli with a 25 million tonnes per annum production capacity. 
    • This will reduce India’s dependence on imported steel and boost indigenous production.
  • Three major projects — JSW, LMEL, and Surjagarh Steel — are currently ongoing in this region. Once fully implemented, Gadchiroli’s total steel production capacity will reach 33 million tonnes.
• Local Employment:
  • The establishment of mining and beneficiation plants will create thousands of direct and indirect jobs in backward and tribal areas like Gadchiroli. 
  • It will offer better livelihoods, training, and stable income opportunities to local youth.
• Energy Efficient:
  • The high-grade iron ore found in Gadchiroli reduces coking coal consumption in steel production, leading to energy savings and lower pollution.
  • These projects will use technologies in line with Green Industry Policy, ensuring long-term environmental balance.

Gadchiroli Mining Region: Environmental and Social Concerns

• Ecological Crisis:
  • The proposed mining project in Gadchiroli district requires the diversion of 937 hectares of forest land. Along with this, more than 1.23 lakh trees are to be felled, posing a serious threat to biodiversity and ecological balance.
  • This region is densely forested and is among the most environmentally sensitive areas in Maharashtra.
  • Felling such a large number of trees may cause rise in local temperatures, soil erosion, and climatic imbalances.
• Wildlife Concerns:
  • The project extends to parts of the tiger corridor between Tadoba-Andhari and Indravati Tiger Reserves.
  • Its presence in this area will disrupt wildlife movement, negatively affecting the behavior, reproduction, and survival of tigers.
• Compensatory Afforestation:
  • To compensate for deforestation, afforestation is proposed in the Chiplun (Ratnagiri) region. 
  • But this is considered inadequate and non-site-specific to restore the fragmented ecology. The biodiversity and ecological systems of Gadchiroli cannot be recreated in a different geographical area.
• Disagreement of Local Tribal Communities:
  • This project is being opposed by local traditional forest-dwelling communities whose livelihood, cultural identity, and lifestyle are directly connected to the forests.
  • Under the Forest Rights Act (2006), they have rights over the land. The expansion of the project may lead to their social and economic displacement.
  • Tribal communities claim that land acquisition without their full consent violates their constitutional rights.
• Cultural Threat:
  • This project not only exploits natural resources but also threatens the traditional medicine, lifestyle, and spiritual beliefs of tribal communities.

Their dependence on herbs, tubers, and water sources from the forests is part of an ancient knowledge system, which mining projects may destroy completely.