- Auctioned block hosts nearly 38 mnt iron ore resources
- Block comprises both high-grade and low-grade ore zones
Supershakti Mining Private Limited has emerged as the preferred bidder for the Rengalaberha North-East Extension and Nuagan West Iron Ore Block in Odisha, securing the mine at a steep final premium of 114.20% during the latest mineral block auction.
The aggressive bidding highlights the continued strong appetite among mining players to secure long-term iron ore resources in the resource-rich Bonai-Keonjhar belt, despite elevated premiums and volatile steel market conditions.
The Rengalaberha North-East Extension and Nuagan West Iron Ore Block is located in the Joda tehsil of Keonjhar district, Odisha, spread across an area of 84.403 hectares (0.844 sq km), with around 54.4 hectares identified as mineralised land. The block falls within the highly prospective Bonai-Keonjhar iron ore belt, one of India’s key iron ore-producing regions.
As per the Geological Survey of India (GSI) exploration data, the block hosts total geological resources of approximately 37.95 million tonnes (mnt) of hematite iron ore at a 45% Fe cut-off grade, with an average Fe content of 57.87%. Of the total resources, around 28.55 mnt comprises high-grade fines averaging Fe 60.84%, while high-grade lump ore resources stand at approximately 0.19 mnt with average Fe content of 59.97%. Additionally, the block contains nearly 9.21 mnt of low-grade fines grading Fe 48.66%.
The block’s location in proximity to several pellet plants, sponge iron units, and integrated steel producers could further enhance its commercial attractiveness.
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