MUMBAI: Deepening its partnership with Lloyds Metals and Energy Ltd, Tata Steel has tapped Brahmani River Pellets Ltd (BRPL) to develop and operate its manganese mines, according to two people familiar with the matter.
The steelmaker has awarded the Joda West mine in Odisha to BRPL and if it achieves the required operational efficiency, Tata Steel could consider awarding its other mines to the company, one person said, requesting anonymity.
BRPL is fully owned by Thriveni Pellets Pvt. Ltd, in which Tata Steel holds a 50.01% stake. The balance in Thriveni Pellets is held by Lloyds Metals.
Tata Steel has a total manganese ore capacity of about 300,000 tonnes a year across its Tiringpahar, Bamebari, Joda West and Khondbond mines. These mining leases are set to expire in 2030, according to BigMint, a commodities market intelligence firm. Manganese ore, a hard silvery-gray metal, is used to improve the strength, hardness and toughness of steel.
“The new MDO for the Joda West Manganese Mines is Brahmani River Pellets Ltd. (BRPL), a subsidiary of Tata Steel (Tata Steel Ltd owns 50.01% and Lloyds Metals & Energy Ltd owns 49.99%). BRPL brings together the mining expertise and operational capabilities of both organizations,” a Tata Steel Spokesperson said in an email response to Mint’s queries.
“Tata Steel works with a pool of registered MDOs, of which BRPL is one. The selection of MDOs is an operating decision and is undertaken in accordance with the Company's procurement process and based on their competitiveness. As Tata Steel continues to expand its mining operations, the Company is leveraging a combination of approaches - own/departmental mining and the MDO model to optimize resources and capital expenditure,” the spokesperson said.
As Tata Steel expands its mining operations, the company is leveraging a combination of approaches—own/departmental mining and the MDO model—to optimize resources and capital expenditure, the spokesperson said.
“The MDO is being pursued through Brahmani River Pellets Ltd (BRPL), a JV of Lloyds Metals & Tata Steel, in which the latter holds 50.01%,” said a Lloyds spokesperson confirming the MDO contract.
Manganese requirement
Tata Steel already meets its manganese requirement internally, said Dhruv Goel, CEO of BigMint. Normal steel also requires some level of manganese alloy, but higher manganese content is needed for specialized grades such as high-tensile and high-corrosion-resistant steel. About 15kg of manganese is used for every one tonne of steel, said Goel.
Tata Steel has stepped up its partnership with Lloyds Metals as it looks to secure access to key raw materials and strengthen its mining and steelmaking operations. The Mumbai-based steelmaker signed a memorandum of understanding with Lloyds Metals & Energy in December to explore mining opportunities in Maharashtra, with a focus on increasing iron ore production, a key raw material for steelmaking.
The partnership extends beyond raw materials and mining. Tata Steel and Lloyds Metals are exploring the development of a greenfield steel plant with a capacity of 6 million tonnes a year in Maharashtra, to be developed in two phases. The proposed project would give Tata Steel a deeper presence in the state while allowing the companies to leverage their combined expertise in mining, iron ore processing and steelmaking.