Coal India Ltd preferred bidder for Odisha iron ore block

New Delhi: Coal India Ltd has emerged as the 'preferred' bidder for the Gadadharpur iron ore block in Odisha's Kendujhar district, marking the state-owned miner's entry into the sector as it looks to diversify its operations.

The company Thursday, informed the stock exchanges that the Odisha government has declared it the preferred bidder for the block, after it quoted an auction premium of 114.05% of the value of mineral dispatched.

The Gadadharpur block is at the G3 exploration stage, or prospecting phase in mineral resource evaluation, and has estimated resources of 288 million tonnes, according to the filing.


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Coal India has one year to fulfil the conditions required to become the successful bidder, while the mining lease deed is to be executed within three years.

The acquisition strengthens Coal India's presence in critical mineral resources as the company seeks to diversify its revenue base amid expectations of plateauing coal demand over the longer term.

The miner has been expanding into non-coal businesses, including critical minerals, thermal power generation, coal gasification, and renewable energy.