- 217%, 294% premiums show strong demand
- Both blocks have Fe content above 65%
The Chhattisgarh government has recently announced the auction results for two of its prominent iron ore blocks, drawing considerable attention from the mining sector. According to the latest updates, Sagar Stone and Alps Mining Services Private Limited have emerged as successful bidders for the Bhajidongari and Nachaniya iron ore mineral blocks, respectively, in Chhattisgarh.
Sagar Stone secured the Bhajidongari iron ore mine with a remarkable 217% premium over the base value. The mine spans an area of 392 hectares and is estimated to hold 2.07 million tonnes (mnt) of geological iron ore resources. The ore in this block is of high quality, with an iron content (Fe) of 65.83%, making it a valuable asset for steelmakers and related industries.
Meanwhile, Alps Mining Services Private Limited successfully acquired the Nachaniya block, offering an even higher premium of 294%. The Nachaniya mine, covering 200 hectares, has a significant geological reserve of 3.93 mnt with Fe content of 66.57%, indicating excellent quality ore. While these results have been reported, official confirmation from the government is still awaited.
Geographically, both blocks are well-connected and strategically located. The mining areas are accessible from Khairagarh, the district headquarters, via tarred and metalled roads, with a distance of approximately 70 km through Chhuikhadan. This connectivity is expected to facilitate smooth logistics, equipment mobilisation, and transportation of ore once mining operations commence.
The high premiums offered in these auctions reflect the robust demand for high-grade iron ore in domestic and international markets. Investors and steel industry players are closely watching these developments, as they could have a significant impact on regional mining activities and the broader iron ore supply chain in Chhattisgarh.
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