Natural Resources Energy (NREPL), wherein Dorite Tracon, a promoter company of Shyam Metalics and Energy, holds 49% of the economic interest, it added.

The said composite licence for Surjagad 1 iron ore block for iron ore in Angudra, Ramunkal Meta, Puske Meta, Negal Meta village, Etapalli Taluka, Gadchiroli district is spread over an area of 1,526 hectares.

This significant achievement follows NREPL's successful bid in the e-auction process conducted for the said mineral block. As the ‘preferred bidder’ under the established auction rules, NREPL submitted a final price offer of 126.35%, demonstrating its commitment to the project's value, said the firm.

The LOI is valid for a period of 1 year from the date of issuance. During this time, NREPL will fulfill all necessary conditions to secure the final composite license from the Government of Maharashtra.

This project holds immense potential to contribute to the economic growth of the region, generate employment opportunities, and support the nation's infrastructure development, stated in the company’s press release.

B Bhushan, Vice Chairman & MD, Shyam Metalics and Energy, said, “This milestone LoI is a testament to the collaborative efforts between Shyam Metalics through its Promoter Company and Sarda Energy & Minerals. It reinforces our shared vision for growth and development within Maharashtra’s mining sector. We are committed to responsibly utilizing this opportunity to create value for all stakeholders while adhering to the highest environmental and safety standards.”

Shyam Metalics and Energy is a leading integrated metal producing company based in India with a focus on long steel products and ferro alloys. The company is amongst the largest producers of ferro alloys, one of the leading players in terms of pellet capacity and the fourth largest player in the sponge iron industry in terms of sponge iron capacity in India.

The company’s consolidated net profit jumped 89.2% to Rs 127.30 crore in Q3 FY24 as against with Rs 67.27 crore posted in Q3 FY23. Net sales stood at Rs 3,315.29 crore in Q3 FY24, registering a growth of 13.5% year on year.