Coal India to bid for more iron ore mines, plans pellet plant

Coal India Ltd plans to bid for more iron ore blocks, focusing on financial viability, as it prepares to build a pelletization plant. The state-owned miner won its first iron ore block, Gadadharpur in Odisha, earlier this month with a premium of 114.05%.

The Gadadharpur block, spread over 265 hectares in Keonjhar, has estimated resources of 258 million tonnes. Coal India's move aligns with the government's target to raise steel production to 300 million tonnes a year by 2030, requiring about 437 million tonnes of iron ore annually.

Experts question the economics. Dhruv Goel of BigMint said a 114% premium may not be viable even with pelletization. Tata Steel and JSW Steel have avoided auctions with premiums above 100%. Coal India will assess viability before bidding for more blocks.