Jindal Steel has secured another iron ore mine in Odisha after emerging as the preferred bidder in a government auction for a block containing about 38 million tonnes of iron ore reserves. The acquisition strengthens the company’s raw material base as it expands steel production capacity.
The company won the Rengalaberha North-East Extension and Nuagan West iron ore block located in the mineral-rich Keonjhar district by offering a 111.15 percent premium over the base price during the state government auction. The mine spans roughly 84 hectares and was part of a batch of 12 mineral blocks put up for auction by the state’s Directorate of Mines and Geology in December 2025.
According to sources familiar with the development, the mine contains a mix of high-grade and lower-grade iron ore. Nearly 29 million tonnes consist of high-grade fines and lumps with iron content of around 60 percent, making the ore suitable for direct use in furnaces or for producing pellets and sinter used in steel manufacturing. The average iron content across the deposit is estimated at about 57.9 percent.
Industry analysts say securing captive iron ore resources is crucial for integrated steelmakers to control production costs and reduce dependence on volatile market supplies. The new mine will help support Jindal Steel’s operations at its steel plants, including facilities in Angul, Raigarh, and Patratu.
The latest acquisition follows closely after the company secured the Thakurani A1 iron ore block, which holds more than 50 million tonnes of reserves, further strengthening its mining portfolio in Odisha.
With India’s steel demand rising due to infrastructure expansion and manufacturing growth, access to captive raw materials is becoming a key competitive advantage for large steel producers. Jindal Steel’s latest win highlights the strategic importance of Odisha’s rich mineral reserves in supporting the country’s expanding steel industry.