Jindal Steel has secured a major iron ore block in Odisha with estimated reserves of nearly 38 million tonnes, strengthening the company’s access to critical raw materials for its steel production operations.
The company emerged as the preferred bidder in a state government auction for the Rengalaberha North-East Extension and Nuagan West iron ore block, committing a 111.15% premium over the base price during the bidding process.
The block contains a mix of high-grade and lower-grade iron ore, with a significant portion consisting of high-grade fines and lumps with iron content of around 60%, making it suitable for direct use in furnaces as well as for sinter and pellet production.
Securing the mine is expected to enhance the company’s raw material security and backward integration strategy, reducing dependence on market purchases while supporting the expansion of its steel manufacturing capacity.
The acquisition also comes as the steelmaker continues to expand its mining portfolio in Odisha to support growing demand from its steel plants, particularly as production capacities increase in the coming years.
Industry observers note that access to captive iron ore resources is increasingly important for steel producers, helping stabilize input costs and ensuring a consistent supply of raw materials for large integrated steel operations.
