Coal India Limited has been awarded a mining lease for the Gadadharpur Iron Ore Block located in the Kendujhar district of Odisha. The company emerged as the preferred bidder for this G3 exploration stage block, which holds an estimated resource of 288 MT. This acquisition marks a strategic expansion for Coal India in the iron ore sector, with terms including auction premium and lease deed execution within specified periods.
Strategic Iron Ore Acquisition in Odisha
Coal India Limited has been awarded a significant mining lease for the Gadadharpur Iron Ore Block. This strategic acquisition is located in the Kendujhar district of Odisha, a region known for its rich mineral deposits. The company successfully became the preferred bidder for this block, enhancing its mineral resource portfolio.
Key Contractual Details
The terms of the award involve a mining lease with specific conditions. A key aspect is the payment of an auction premium of 114.05% of the value of the mineral dispatched, which is to be paid to the Government of Odisha. The lease deed execution requires the company to become a successful bidder within 1 year, and the final mining lease deed must be executed within 3 years.
Block Potential and Exploration Stage
The Gadadharpur Iron Ore Block is classified as a G3 exploration stage block, indicating significant potential for mineral extraction. It holds an estimated total resource of 288 million tonnes (MT). This development is expected to contribute to Coal India’s future revenue streams and strengthen its position in the iron ore market.
Domestic Award and Compliance
This order/contract has been awarded by a domestic entity, the Government of Odisha. Coal India Limited has disclosed these details as per Regulation 30 of SEBI LODR Regulations 2015, ensuring transparency and compliance with regulatory requirements.
Source: BSE
