Coal India enters iron ore mining with Odisha block win

• CIL secures Gadadharpur iron ore block marking its entry into the iron ore mining sector in Odisha
• Acquisition strengthens Coal India’s diversification strategy

Coal India Limited (CIL), the country’s largest coal producer, has marked its entry into the iron ore mining business after successfully winning the auction for the Gadadharpur Iron Ore Block in Odisha at premium of 114.05%.

The block, located in Kendujhar district, spans approximately 2.0 square kilometres and is estimated to contain around 257.98 million tonnes of iron ore resources at a 45% Fe cut-off, according to the mineral block summary. The deposit has an average iron grade of about 58.5% Fe, making it a significant medium-to-high grade iron ore resource.

The acquisition represents a major milestone in CIL’s ongoing diversification strategy as it expands beyond coal into other critical minerals. The move is expected to strengthen the company’s long-term growth prospects while supporting India’s increasing demand for iron ore from the steel sector. Other companies in the race were AM/NS India, JSW Steel, Rungta, Shyam and Jindal Steel India, as per sources.

Industry observers said CIL’s entry into iron ore mining aligns with the government’s broader objective of enhancing domestic mineral production and ensuring raw material security for infrastructure and manufacturing.

Following the successful auction, CIL is expected to complete statutory clearances and execute the mine development plan before commencing production. The project is likely to contribute to employment generation and economic development in the region while adding a new revenue stream for the state of Odisha.

With this acquisition, Coal India takes a significant step toward transforming itself into a diversified mining company, complementing its dominant position in the coal sector with a presence in one of India’s most strategically important mineral commodities.

Notably, CIL is the single largest coal producer in the world and recorded total production of 768 mnt in FY’26.