Now Reading: Coal India Wins Preferred Bid for Odisha Iron Ore Block
-
01
Coal India Wins Preferred Bid for Odisha Iron Ore Block
Coal India has emerged as the preferred bidder for the Gadadharpur iron ore block in Odisha, marking its entry into iron ore mining. The company quoted a 114.05% premium over the notified…
The Story in Brief
Coal India has emerged as the preferred bidder for the Gadadharpur iron ore block in Odisha, marking its entry into iron ore mining. The company quoted a 114.05% premium over the notified value, according to its stock exchange filing. The block, spread across 265.05 hectares in Keonjhar district, has estimated resources of 258.04 million tonnes of iron ore.
The move supports Coal India’s diversification beyond coal and the government’s aim of lifting domestic iron ore production. The sector is led by state-run NMDC. Steelmakers, including Tata Steel and JSW Steel, have said premiums above 100% can make captive mining economics difficult. Coal India could instead sell ore commercially to domestic steel producers, according to BigMint chief executive Dhruv Goel.
The Indian Opinion
The easy narrative is that Coal India has found a new growth engine, while the opposing claim is that a 114.05% premium makes the bid reckless. Neither view is complete. The block’s resources are large, but its value will depend on mining costs, approvals, transport and the price at which ore can be sold. The real test is whether Coal India can produce and market the ore profitably, not merely win the auction.
Sources (2): livemint.com, ndtvprofit.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
