Home Press Release The Sandur Manganese & Iron Ores Limited lists on NSE

The Sandur Manganese & Iron Ores Limited lists on NSE

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The Sandur Manganese & Iron Ores Limited lists on NSE

Intends to get into hot metal production and downstream value-add products

Vision is to augment its product portfolio while building internal capabilities to materialize the long-term goal of the Company to set up a steel plant

National, 7 September  2023: The Sandur Manganese & Iron Ores Limited (“SANDUR” OR “SMIORE“ or “the Company”) India’s highly integrated and diversified commodity producer with a rich heritage and nearly seven decades of experience in systematic, safe and scientific mining; listed on the NSE at the listing ceremony to mark the commencement of trading. Guided by its rich legacy, SMIORE has continuously adapted to better align itself with the vision of an integrated and sustainable future. 

The momentous occasion was marked by the presence of Bahirji Ajai Ghorpade, Managing Director; Hemendra Laxmidas Shah, Independent Director; Mohammed Abdul Saleem, Director (Mines); Uttam Kumar Bhageria, Chief Financial Officer & Chief Risk Officer; and Bijan Kumar Dash, Company Secretary & Chief Compliance Officer among others. The management team, employees, shareholders, investors and well-wishers also attended the Listing Ceremony through the live streaming, which was available on the Company’s YouTube channel.

SANDUR proposes to enhance manganese ore production from 0.28 to 0.58 MTPA and iron ore production from 1.60 to 4.50 MTPA. SANDUR has partnered to set up a hybrid renewable power plant (42.9 MW) in a SPV with Renew Power, which was commissioned in June 2023 and will cater to the increasing energy requirement to expand Ferroalloys operations in FY24. The Company expects all further approvals by Q2FY24 from respective authorities to ramp up production to the new maximum permissible limits. Once the production ramps up, we will be focussing on downstream operations.

Bahirji Ajai Ghorpade, Managing Director of SMIORE, said, “Today marks a historic moment for all of us as we gather here to celebrate the listing of our Company, ’The Sandur Manganese & Iron Ores Limited’, on the National Stock Exchange of India. This occasion is a testament to our collective efforts, unwavering commitment, and the remarkable journey we have embarked upon. From our humble beginnings in 1954, we have grown over the last seven decades to become a significant player in the metals and mining industry, thanks to the hard work and dedication of our employees, the trust of our shareholders, and the support of all our stakeholders. This listing is a reflection of the value we have created over the years and the potential that lies ahead.”

Ghorpade added, “As we step onto this broader platform of the stock exchange, we are well aware of the responsibilities and opportunities that come with it. We pledge to continue upholding the highest standards of corporate governance, transparency, and ethical practices. Our commitment to sustainable development and environmental responsibility remains steadfast. To our shareholders, I express my sincere gratitude for your continued belief in our vision. This listing is a result of your faith in our journey, and we are committed to delivering value that enhances your investment.” 

Referring to the future, Ghorpade said, “Going forward, the Company intends to get into hot metal production and downstream value-add products, with the aim of having the maximum possible integration within all our business segments, which shall position SMIORE as a formidable force in the industry. Expanding and enabling Coke production is strategic to the Company’s vision to augment its product portfolio while building internal capabilities to materialize the long-term goal of the Company to set up a steel plant.” He added, “Energy conservation and adoption of cleaner energy have been core to the sustainable development framework of the Company. Recently, the Company has installed solar-based devices with an aggregated installed capacity of 42.9 MW to replace a part of our total requirement of non-production electricity.”

ABOUT THE SANDUR MANGANESE & IRON ORES LIMITED

SMIORE was established in the year 1954 under the visionary leadership of Murarirao Yeshwantrao Ghorpade, under the aegis of Yeshwantrao Hindurao Ghorpade, with a mission of scientific development and mining of Manganese and Iron Ores. Murarirao Yeshwantrao Ghorpade took on the mantle to achieve his father’s dream which led to the beginning of an era. Currently, the descendant of the Royal Family, Bahirji Ajai Ghorpade who is the Managing Director of the Company is spearheading the business of the Company.  Over the decades, the Company’s operations have expanded to cover mining, downstream facilities of ferroalloy, coke and energy. The Company believes in integrating across its value chain and consolidating its business, to ensure that the Company adds value in each stage and the operations are complementary to each other.  The Company is a private sector merchant miner and commodity producer with an operational track record spanning nearly seven decades. The cornerstone of its business still lies in environment friendly, systematic, safe and scientific mining. The Company is one among the largest Manganese Ore miners in India. At present, the Company’s operations span over three business segments i.e., Mining (Manganese & Iron Ores), Ferroalloys and Coke & Energy. Together, these assets work in conjunction with each other to leverage the benefits of being an integrated Company in the metals and mining industry. 

More information on: https://www.sandurgroup.com/investor

For more information kindly contact:

Bijan Kumar Dash, Company Secretary & Chief Compliance Officer – 9448497985

Notes to the Editor

Background of the Operations

  1. Mining

Mining operations are the mainstay of the Company, and it is engaged in the mining of Manganese Ore and Iron Ore, from its mining leases located in Sandur, Ballari District of Karnataka. These mining leases have been operated by the Company since its inception in 1954. At present, the Company has 2 mining leases with a cumulative lease area of 1,999 HA, valid up to 31 December 2033. These leases are estimated to have a total reserve to the tune of 17 MT of Manganese Ore and 105 MT of Iron Ore. It has a production capacity of 0.58 MTPA for Manganese Ore and 4.50 MTPA for Iron Ore.

  1. Manganese Ore (0.58 MTPA) 

Since its inception in 1954, the Company has owned and operated the largest Manganese Ore mines in the private sector, along with sizeable Iron Ore reserves located in Sandur Taluk, Ballari District of Karnataka State. The mining operations have won multiple accolades and awards for setting unprecedented standards in safety, sustainability and innovation for nearly seven decades. Among other mentionable recognition, the Government of India has successively awarded the Company with the highest standards of safety awards for many years. These awards acknowledge the Company’s focus on safety norms and the working conditions of the mineworkers and its endeavour to make its operations accident-free with zero incidents. 

The Company’s Manganese Ore is known for its low phosphorus content (below 0.05%). It has the unique reputation of being one of the finest grades, low phosphorus metallurgical ores used in blends for producing ferroalloys and steel. A part of the Company’s mined ore is used captively in ferroalloy operations, and the rest is sold in domestic market. Today, the Company has estimated reserves of about 17 MT of Manganese Ore.  The Company is permitted to mine Manganese Ore up to 0.58 MTPA, as per the parameters prescribed by the Hon’ble Supreme Court. The Company is engaged in semi-mechanized Manganese Ore mining operations.  

The Company’s mines are well-connected to two railway sidings – Swamihalli (SMLI) and Sunderambencha (SDMG) on the Swamihalli – Hospet BG Line. Further, to facilitate movement of the product directly to the railway siding, the Company is currently setting up a Downhill Conveyor to transport the ore in a pollution-free and environment-friendly manner. 

  1. Iron Ore (4.50 MTPA) 

The Company is mining Iron Ore from its vast reserves of 105 MT. The Company’s fully mechanized Iron Ore mining operations generate internal efficiencies and ensure better workplace safety and compliance to environmental protection norms. The Company is one of the few mining lessees in India with a consistent track record of receiving 5-Star Rating Awards from its inception for its systematic and safe mining operations from the Government of India. The Company’s Iron Ore mining operations are also vital to future downstream integrations, especially in manufacturing steel. 

The Company is permitted to mine Iron Ore up to the 4.50 MTPA, as per the Environmental Clearance obtained for the mining lease. It primarily produces iron ore, with 56% – 58% Fe grade. Our Company has definite Iron Ore reserves of 105 MT for future mining operations. 

ii. Ferroalloys 

The Company began its journey in the Ferroalloys business in 1966, shortly after it was listed on BSE Limited. The Company commissioned an Electro Metallurgical plant at Vyasankere, Karnataka, in 1968 and began its operations. This unit is equipped with Italian and Norwegian submerged electric arc furnaces which are utilized to produce Ferroalloys. 

In 1977, the Company had set up two additional 20 MVA furnaces venturing into the production of Ferroalloys such as Ferromanganese, Ferrosilicon and Silicomanganese.

By the year 1980, the Company’s metal & ferroalloy plant was recognized as one of the finest metallurgical plants of the country and gained prominence for supplying good quality low-phosphorous pig iron to the Indian foundry industry, especially for the quality-conscious automobile industry, and ferroalloys to SAIL and other steel plants in India and overseas.

Due to inadequate supply of power from the State Electricity Board, and unviable rates, our Company’s ferroalloys operations became unviable in the late 90’s and had to be shut temporarily for about 10 years. Later, the Company established a 32 MW thermal power plant to meet its power needs. In FY21, to further address the cost-feasibility of power generation, the Company commissioned a Coke Oven Plant with Waste Heat Recovery Boilers (WHRB) which produces electricity as a byproduct. This helped to address the power supply issue, while also addressing the upcoming Coke demand for the Hot Metal plant.

The primary product produced by the Company is Silicomanganese, and other products could include Ferromanganese and Ferrosilicon. Currently, the existing production capacity of the Company is 95,000 TPA/ 1,25,000 TPA (Silicomanganese/ Ferromanganese) (Existing capacities are used primarily to produce SiMn/FeMn, hence capacity calculations are as per SiMn/FeMn. However, the Company plans to add new products, hence actual capacities may differ as per the product-mix.) 

III Coke and Energy (0.5 MTPA Coke oven plant & 32 MW Waste Heat Recovery Boiler) 

The Company strives for fully integrated operations with a vision to achieve self-sufficiency and optimum operational efficiency through forward and backward integrations. It is this philosophy that guided the Company to set up a captive thermal (coal-based) power plant and further expansion of coke production using newly added coke oven plants. The Company is conscious of the massive power requirements in ferroalloy production and other downstream operations and contemplated switching to cleaner energy sources to arrest adverse environmental impact.

The Company completed its coke oven expansion in FY21 with the commissioning of two coke oven units. The Coke Oven plant is the most recent addition to the Company’s operations. It consists of 4 batteries and has a cumulative capacity of 0.5 MTPA. 

With these plant expansions, the Company has enabled a feasible power generation set up to support Ferroalloy operations. It has also enabled downstream integration of Coke for future steel expansion.

Additionally, two Waste Heat Recovery Boilers (WHRB) with a cumulative capacity of 32 MW have been set up to generate cleaner energy during the production of industrial coke.

By setting the coke oven plant with integrated Waste Heat Recovery Boilers (WHRB), the Company has taken major steps towards producing metallurgical coke and generating cleaner energy for the power requirement of ferroalloy manufacturing operations. 

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