Coal India Forays Into Iron Ore Mining, Emerges Preferred Bidder For Odisha Block

New Delhi: State-owned CIL on Thursday said it has emerged as the preferred bidder for the Gadadharpur iron ore block in Odisha, marking the country's largest coal miner's foray into iron ore mining. Coal India Ltd (CIL) is mainly engaged in mining and production of coal and accounts for over 80 per cent of domestic output of the dry fuel.

The move further signals the company's broader diversification plan amid a long-term energy transition. The mining lease has been awarded on an auction premium of 114.05 per cent of the value of mineral dispatched.

CIL's entry into iron ore mining aligns with the government's push to boost domestic production of critical minerals and secure raw material supply chains for the steel sector, which is central to the country's infrastructure and manufacturing ambitions.

The block is at the G3 exploration stage with a total resource estimated at 288 million tonnes, CIL said in a filing to the BSE. A G3 exploration stage block is a mineral mining area undergoing preliminary exploration. Its purpose is to zoom in on smaller target zones identified during broad regional surveys, using closer-spaced sampling, mapping, pitting, and initial core drilling to estimate mineral content.

Under the terms, Coal India will have one year to complete the formalities to be declared the successful bidder and up to three years to execute the mining lease deed, the filing said.

The block has been awarded to the PSU by the Government of Odisha, it said. India -- the world's second-largest crude steel producer after China -- is aiming a steelmaking capacity of 300 million tonnes by 2030. Achieving this goal requires a substantial increase in domestic iron ore production to feed expanding blast furnace and integrated steel plants.

CIL is aiming coal production of 815 million tonnes (MT) and supply of 850 MT in the ongoing financial year. Its production grew 8.4 per cent to 50.36 MT in July. The company's cumulative coal supplies during the first four months of FY27 (April-July) rose 6.9 per cent to 262.04 MT -- the highest volume supplied during the period.

The previous record was 259.4 MT, achieved during April-July in 2024-25.