BHUBANESWAR: The state government has received a robust response from domestic and global mining and metal companies to its invitation for bids for 12 virgin mineral blocks.
Official sources said bids have been received for all blocks barring the Garramura limestone block in Nuapada which drew no bidders. The mineral blocks spread across Sundargarh, Keonjhar, Koraput, Nuapada and Balangir districts, include a diverse mix of iron ore, manganese, bauxite, limestone and dolomite resources, catering to the requirements of the steel, aluminium and cement industries.
The auction was notified by the Directorate of Mines and Geology (DMG) on December 4.
“This response reflects strong industry confidence in Odisha’s mineral governance framework and the quality of resources on offer,” a senior state government official said, adding intense competition is expected to translate into higher upfront premiums and long-term revenue gains.
Industry analysts estimate that the current round could generate Rs 25,000-Rs 30,000 crore in cumulative revenue for the state over the life of the mines, driven largely by iron ore blocks with long mine life and high-grade reserves, particularly in Sundargarh and Keonjhar districts.
Iron ore assets emerged as the clear favourites. The Alaghat West iron ore block in Sundargarh, which alone hosts over 133 million tonne of indicated resources has attracted 22 bidders, including Tata Steel, JSW Steel, ArcelorMittal Nippon Steel India, Vedanta, Essar Minmet, Jindal Steel and Rungta Sons.
Similarly, the Rengalaberha North-East Extension and Nuagan West iron ore block in Keonjhar and Thakurani-A1 iron ore block saw participation from most integrated steelmakers. “The auctions come at a time when steelmakers are locking in long-term ore security. That’s why premiums are likely to surprise on the upside,” said a mining sector analyst.
In the aluminium segment, bauxite blocks at Tarhapani (West) and Karnapodikonda in Koraput district have drawn bids from NALCO, Hindalco and Vedanta. Manganese blocks at Kutinga, Patamunda-A and Jajang-A have also attracted multiple bidders, particularly from alloy manufacturers and sponge iron producers.
Cement-grade limestone blocks at Telipadar-Lukapada-Pipalmunda (Balangir) and Tummura limestone and dolomite block (Sundargargh) received moderate interest from cement manufacturers and diversified mining companies, in line with regional capacity expansion plans. The absence of bidders for the Garramura limestone block is being attributed to its relatively small size and limited geological depth.
This is the second tranche of mineral auctions launched by the state after the March 2025 notice inviting tender for eight mineral blocks.