India: Iron ore production commences from BPSL’s Netrabandha, Rungta’s Chandiposi, Pureibahal mines in Odisha

• Netrabandha Pahar mine produces 0.29 mnt of iron ore ROM in Apr’26
• ROM output from Chandiposi stands at 106 t, Pureibahal at 16,400 t in Apr

JSW Steel’s subsidiary Bhushan Power and Steel Ltd (BPSL) has commenced iron ore production from the Netrabandha Pahar (West) iron ore block in Odisha, nearly nine years after securing the mine through the Odisha mineral block auction held in May 2017. The mine was won at a substantial premium of 87.15% during the early phase of India’s iron ore mine auctions.

Production from the mine started in April, with total run-of-mine (ROM) output reaching around 0.29 mnt during the month, indicating the beginning of operational ramp-up at the asset. The commencement assumes significance for BPSL and JSW Steel as the group continues to strengthen raw material integration amid continued volatility in Odisha merchant iron ore premiums and tightening availability of high-grade material in the domestic market.

Located near Bhaliadihi village in Koira tehsil of Sundargarh district, Odisha, the Netrabandha Pahar (West) block contains total geological iron ore resources of around 17.265 mnt, including approximately 15.765 mnt of high-grade ore (55% Fe cut-off) and 1.5 mnt of low-grade ore. The quality profile of the block remains favourable compared to several medium-grade deposits in the region.

As per the mineral block summary, high-grade lump ore carries a Fe content of around 63.46%, while blue dust grades are reported at nearly 67.4% Fe, supporting its suitability for blast furnace and pellet feed applications. Powdery ore grades are also reported near 59.6% Fe, strengthening the mine’s commercial attractiveness. Currently, the mine has an environmental clearance (EC) capacity of 2 mnt per year.

Meanwhile, Rungta Mines Limited has also commenced iron ore production from its newly auctioned Pureibahal and Chandiposi mines in Odisha from 20 April. During the month, Chandiposi mine produced around 106,000 t of ROM, while Pureibahal reported 16,400 t of ROM output. Both mines have annual production capacities of 1 million tonnes (mnt) each and were secured in FY’22 Odisha auctions at high premiums of 113.1% and 124%, respectively. The commencement of these auctioned mines indicates a gradual rise in captive and merchant ore availability in Odisha, which could support raw material security for steelmakers amid volatile domestic iron ore market conditions.