Now Reading: Coal India Wins Odisha Iron Ore Block With 114% Premium
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Coal India Wins Odisha Iron Ore Block With 114% Premium
Coal India has emerged as the preferred bidder for the Gadadharpur iron ore block in Odisha, offering a 114.05% premium, Mint reports. The 265.05-hectare block in Keonjhar district has estimated resources of…
The Story in Brief
Coal India has emerged as the preferred bidder for the Gadadharpur iron ore block in Odisha, offering a 114.05% premium, Mint reports. The 265.05-hectare block in Keonjhar district has estimated resources of 258.04 million tonnes. The bid marks Coal India’s entry into iron ore mining, a sector led by public sector rival NMDC. The company confirmed the result in a stock exchange filing but did not immediately respond to Mint’s queries.
The move could add domestic ore supply as India targets 300 million tonnes of steel capacity by 2030. Yet steelmakers have warned that premiums above 100% can weaken the economics of captive mining. Coal India could instead sell the ore commercially to domestic producers.
The Indian Opinion
The easy narrative is that Coal India has found a new growth engine, while the opposing claim is that a 114% premium makes the mine a costly gamble. Both overlook the basic test: whether production and sale of the ore can cover the bid, taxes and operating costs. The block’s 258.04 million tonnes are a resource estimate, not immediate output. Coal India’s future mining plan, realised costs and supply price will show whether diversification creates value or simply shifts public money into another high-priced auction.
Source: livemint.com
This story was synthesised by AI from the source linked above.
