Over 20 bidders including captive and commercial iron ore miners are in the fray for two iron ore blocks offered by Odisha for auctions in this financial year. While one block Netrabandha Pahar block is meant for merchant mining, the Kalamang West block is reserved for an integrated steel plant.
The technical bids for these two blocks open today. The shortlisted bidders who qualify the technical bids would be eligible for financial bidding. Some of the big corporate entities- Tata Steel, Jindal Steel & Power Ltd (JSPL), Tata Sponge Iron Ltd, Essar Steel, JSW Steel, Essar Steel and Bhushan Steel are in contention for the competitive bids. Standalone entities like Essel Mining & Industries Ltd, Rungta Mines and Thriveni Earthmovers are also in the fray.
Both the blocks have been explored to the G2 level, meeting the eligibility criteria for auctions under Mineral Auction Rules, 2015.
The Netrabandh Pahar block located in Sundargarh’s Koira sector has geological reserves of 77.25 MnT of which 61.9 MnT are high grade deposits. The total concession area is spread over 139 hectares with forest land making up 112 hectares. The onus would be on the successful bidder to obtain all regulatory clearances.
The Kalamang block, also in Sundargarh district, has 92.97 MnT in iron ore deposits.
Apart from the two iron ore blocks, Odisha is also offering Garramura, a limestone block for auction. Previously, two limestone blocks have gone under the hammer in the state with Dalmia Cement and Thriven Earthmovers emerging as the preferred bidders.
Odisha was also the first state to auction an iron ore block- the Ghoraburhani-Sagasahi block bagged by Essar Steel. Essar Steel has proposed a production capacity of 7.16 MnT pa run of the mine product from the iron ore block. As part of the project, the steel company is also setting up a crushing & screening plant and a beneficiation plant with a capacity of 6.7 MnT pa over an area of 139.16 hectares (ha) at Ghoraburhani, Sagasahi and Kalmang villages situated in Sundargarh district.
The Odisha government has issued the letter of intent to Essar Steel after it emerged as the preferred bidder in the first iron ore block offered for e-auctions in Odisha. The block is at G2 exploration stage and located in Koira sector in Sundargarh district.
Currently, Essar Steel runs a 12 MnT pa iron ore beneficiation plant at Dabuna in Keonjhar district and 6 MnT pa pelletisation complex at Paradeep. The iron ore mine in Odisha is expected to meet 50 per cent of the firm’s pellet making facility at Paradeep.
The pellet produced at Essar Steel’s Paradeep facility is primarily meant for use at its 10 MnT integrated steel plant at Hazira.
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