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Odisha mineral block auction: Jindal Steel bags Kasia block at 118 per cent premium

JSPL, which was declared as the preferred bidder for Guali iron block in Keonjhar district after offering a highest premium of 144 per cent on March 17, 2020, refused to execute the lease deed.

Published: 20th September 2021 09:14 AM  |   Last Updated: 20th September 2021 09:14 AM   |  A+A-

Jindal Steel and Power

Jindal Steel and Power (File photo | Bloomberg)

By Express News Service

BHUBANESWAR: With the financial bidding for 11 mineral blocks of the State commencing from Saturday, Jindal Steel and Power Ltd (JSPL) has bagged the Kasia iron ore and dolomite block by offering a premium of 118.1 per cent (pc) over the floor price of 95.6 pc.

As many as 13 companies participated in the tender process while seven qualified the technical bid which was opened on August 25. The companies, which had cleared the technical round, were ArcelorMittal, Electrosteel (Vedanta), Essel Mining, JSPL, MSPL, Rungta Mines and Tata Steel.

The Kasia iron ore and dolomite block spread over 194.196 hectare (ha) in Barbil mining circle of Keonjhar district was earlier operated by Essel Mining of Aditya Birla Group.

JSPL, which was declared as the preferred bidder for Guali iron block in Keonjhar district after offering a highest premium of 144 per cent on March 17, 2020, refused to execute the lease deed. The government revoked bank guarantees of JSPL and Shyam Ores Jharkhand Pvt Ltd, winner of Jilling-Langalota iron ore block, for refusing to pay the first installment and execute the lease deed.

The two blocks were later allocated to the State-owned Odisha Mining Corporation (OMC) which has started mining operation within two months of allotment.

Winning Kasia iron ore block came as a relief to the steelmaker as it will ensure its long-term raw materials security to the six MTPA steel plant in Angul district. JSPL with long term supply contract with Sarada Mines was sourcing its iron ore need from Thakurani Mines which went to ArcelorMittal last year.

The steelmaker recently got clearance from the government for expansion of the existing steel plant to 25.2 MTPA by 2030 with an additional investment of over Rs 1 lakh crore. Kasia mine has a total geological resources of 278.04 million tonne of iron ore (having average Fe grade of 63.2 pc) and 0.693 mt of dolomite ore.

The blocks, which are in the auction process, include Kasia, Nadidih (Bico), Nadidih (Feegrade), Teherai, Pureibahal, Chandiposhi, Jumka, Dholtapahar, Netrabandha Pahar (West), Gandhalpada and Karlapat.



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