Sandur Manganese Secures Forest Land Lease for Efficient Ore Conveyor

Sandur Manganese & Iron Ores Limited announced on April 9, 2026, that it has signed a Forest Lease Agreement (FLA) for 2.4314 hectares of forest land. This official lease agreement allows the company to proceed with building its critical Downhill Conveyor Pipe System (DCS). The company finalized this lease after receiving final approval for forest land diversion on October 3, 2025.

Project Significance

The new Downhill Conveyor Pipe System is designed for eco-friendly and efficient iron ore transport. It will significantly improve logistics from the Kammathuru Iron Ore Mine to the PMBR (BMM) siding. This upgrade aims to reduce reliance on road transport, lowering costs and environmental impact.

Development Background

Developing the DCS has been a long-term objective for Sandur Manganese & Iron Ores. The company secured the necessary forest land diversion approval from the Ministry of Environment, Forest and Climate Change (MoEF&CC) on October 3, 2025. Plans for this eco-friendly conveyor system connecting the Kammathuru Iron Ore Mine to the BMM siding have been in development since at least 2018, as shown in prior assessments.

What's Next for the Project

With the Forest Lease Agreement now signed, construction on the DCS project can begin. This marks a key step in the company's infrastructure development plans to boost operational efficiency. The project aligns with Sandur Manganese's strategy for sustainable and mechanized transport.

Potential Risks

Investors are watching for the potential impact of a Supreme Court ruling from August 2024 concerning the taxation of mineral rights. While Sandur Manganese has a history of regulatory compliance, this ruling could affect the sector. The company also faced a temporary mining suspension in January 2014 due to a lease expiry, highlighting the importance of keeping leases current.

Industry Context

Sandur Manganese & Iron Ores operates in India's mining sector alongside major companies like NMDC Ltd., Coal India Ltd., and MOIL Ltd. The company is a notable producer of manganese and iron ore.

What to Watch Next

• Construction progress and commissioning of the Downhill Conveyor Pipe System.
• The start of DCS operations and its measurable impact on logistics costs and efficiency.
• Updates on regulatory compliance and land use.
• Financial reports showing the system's operational benefits.