CIL diversifies beyond coal, emerges preferred bidder for iron ore block in Odisha

New Delhi [India], August 7 (ANI): State-owned Coal India Limited (CIL) has emerged as the preferred bidder for the Gadadharpur Iron Ore Block in Odisha's Kendujhar district, as the country's largest coal producer looks to expand its presence beyond its core coal mining business.
In a regulatory filing, Coal India said the Odisha government has declared it the preferred bidder for the iron ore block.
The Gadadharpur Iron Ore Block is currently at the G3 exploration stage and has total estimated resources of 288 million tonnes (MT), according to the filing.
Coal India said the mining lease has been awarded through an auction, with an auction premium of 114.05 per cent of the value of the mineral dispatched to be paid to the Odisha government.
The 114.05 per cent figure represents the auction premium linked to the value of minerals dispatched and is not an upfront acquisition price or the overall value of the iron ore block.
As per the timelines disclosed by the company, Coal India has one year to become the successful bidder, while the mining lease deed is to be executed within three years.
The development marks Coal India's move to strengthen its presence in minerals outside its traditional coal business. The company, a Maharatna public sector undertaking, has been pursuing diversification opportunities beyond coal.
The filing did not disclose the expected investment in developing the Gadadharpur block, the proposed production capacity or a timeline for commencement of iron ore production.
Coal India also clarified that its promoter, promoter group or group companies do not have any interest in the entity awarding the contract and that the transaction does not fall under related-party transactions. (ANI)