Coal India enters iron ore mining in latest push towards diversification

Coal India has emerged as the preferred bidder for Odisha's Gadadharpur iron ore block, marking its entry into iron ore mining as it expands beyond coal

State-run Coal India Ltd (CIL) has entered the iron ore mining business after emerging as the preferred bidder for the Gadadharpur Iron Ore Block in Odisha, marking a key step in CIL's strategy to diversify beyond coal, according to the company's stock exchange filing on Thursday.

 

The Odisha government has declared CIL the preferred bidder for the Gadadharpur block in Kendujhar district through an auction process. The block is estimated to hold iron ore resources of 288 million tonnes. The company has agreed to pay an auction premium of 114.05 per cent of the value of minerals dispatched to the state government.

 

The Gadadharpur block is at the G3 exploration stage, which means it requires further exploration.

 

CIL, the world's largest coal miner, supplies over 80 per cent of India's coal requirement. The move broadens CIL's mining portfolio at a time when the company is pursuing diversification into new mineral segments beyond thermal coal and tapping opportunities in the broader mining sector. In recent years, the company has diversified its operations into other sectors such as critical minerals and renewable energy while also pursuing projects in coal gasification and mineral exploration.

 

Under the auction terms, Coal India must secure the status of successful bidder within one year. The mining lease deed is then required to be executed within three years.

 

The acquisition is expected to strengthen Coal India's long-term business portfolio while supporting domestic iron ore availability, a key raw material for India's steel industry.