- Block holds 83 mnt of iron ore resources with average grade of Fe 59%
- Mine contains 0.7 mnt of manganese ore reserves, with average grade 17% Mn
AM/NS India has emerged as the preferred bidder for the Barpada South Iron and Manganese Ore Block in Odisha, quoting a premium of 120.35%. The acquisition is expected to strengthen the company’s long-term raw material security as it pursues capacity expansion and greater backward integration.
The block, spread across around 180 hectares, is located in Koira tehsil of Sundargarh district within Odisha’s mineral-rich Bonai-Kendujhar Belt.
According to the mineral block summary, Barpada South contains 82.93 million tonnes (mnt) of iron ore resources at a 45% Fe cut-off, with an average grade of 59.19% Fe.
Of the total resources, around 71.47 mnt comprises iron ore with over 55% Fe, averaging 60.61% Fe. The remaining 11.46 mnt falls in the 45-55% Fe category. The block also contains around 0.70 mnt of manganese ore resources with an average grade of 16.60% Mn.
The mineral block has been explored up to the G3, or preliminary exploration, level and has been recommended for mining lease auction.
The location of the block within the Bonai-Kendujhar Belt could provide strategic advantages for raw material sourcing. However, mining operations can commence only after the successful bidder obtains the required statutory, forest and environmental clearances.
The high premium quoted for the block also underscores strong competition for access to captive iron ore resources in Odisha, particularly among steelmakers seeking to reduce long-term exposure to external raw material procurement.
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