State-run Coal India has entered the iron ore mining business after being declared the preferred bidder for the Gadadharpur Iron Ore Block in Odisha, marking a significant expansion beyond its core coal operations.
The Odisha government awarded the block through an auction at a premium of 114.05% of the value of mineral dispatched, payable to the state, Coal India said in a stock exchange filing.
Located in Odisha’s Kendujhar district, Gadadharpur is a G3-stage exploration block with estimated iron ore resources of 288 million tonnes. The award gives the country’s largest coal miner its first foothold in iron ore, a key raw material for steel production.
The acquisition is part of Coal India’s strategy to diversify its long-term portfolio by leveraging its experience in large-scale mining, project execution and mineral evacuation. The company has been expanding into businesses beyond coal, including critical minerals and other mining segments.
Under the terms of the auction, Coal India must become the successful bidder within one year. Following this, the mining lease deed is required to be executed within a three-year timeline, according to the regulatory filing.
The preferred bidder status is the first stage in securing the mining rights. Development of the block will follow the completion of the stipulated auction formalities and execution of the lease.
The Gadadharpur acquisition will allow Coal India to establish a presence in the domestic steel raw-material value chain. Its estimated resource base could also support the country’s growing iron ore requirement as steel production capacity expands.