Synopsis: Sandur Manganese signs forest lease on April 8, 2026, for DCS to link Kammathuru iron ore mine to rail siding, slashing transport costs and boosting efficiency toward 4.45 MTPA output.
Mining Compant has taken a major step forward in upgrading its mining infrastructure. The company signed a Forest Lease Agreement (FLA) on April 8, 2026, to build a Downhill Conveyor Pipe System (DCS) in Karnataka’s Ballari district.
Sandur Manganese & Iron Ores’s Limited’s stock, with a market capitalisation of Rs. 9,758 crores, rose Rs. 202.53, up 4.3 percent from its previous closing price of Rs. 196.92. Furthermore, the stock over the past year has given a return of 48.4 percent. The company signed the FLA with the Deputy Conservator of Forests, Government of Karnataka, Ballari Division. It was registered at the Sub-Registrar Office in Sandur the same day.
The agreement covers 2.4314 hectares of forest land. This land sits in the Deogiri, Swamimalai Forest Block, Sandur Taluk, Ballari District. The Ministry of Environment, Forest and Climate Change had given its final approval back in October 2025.
The DCS will connect Kammathuru Iron Ore Mine to the PMBR (BMM) railway siding. This replaces slower, costlier road transport for ore movement. Therefore, the system is expected to cut costs and reduce environmental impact over time.
The company executed the lease in line with all conditions set out in the October 2025 approval letter. It also follows SEBI’s Listing Obligations and Disclosure Requirements Regulations.
Company Overview
SMIORE is one of India’s top private-sector manganese ore miners. Founded in 1954, the Bengaluru-headquartered company has over 70 years of mining experience. It operates across three core segments mining, ferroalloys, and coke & energy.
Mining alone contributes around 64% of revenue. The company holds iron ore reserves of over 110 million tonnes and manganese reserves of up to 17 million tonnes. It operates two mining leases covering roughly 2,000 hectares in Ballari district.
In 2024, SMIORE crossed a $1 billion market cap. It also acquired nearly 99% of Arjas Steel, moving into specialty steel production. As a result, it is now a fully integrated metals and mining company.
With the FLA now in place, SMIORE can begin work on the DCS. The system will streamline ore movement from mine to rail. Consequently, it supports the company’s push to scale iron ore output toward 4.45 MTPA. The move reflects SMIORE’s broader strategy building efficient, sustainable infrastructure while expanding its production base across Karnataka.
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