Jindal Steel secures second iron ore block in Odisha; shares rise

Summary

Jindal Steel and Power (JSPL) has secured two iron ore blocks in Odisha within 48 hours, strengthening its captive resource base as it expands steelmaking capacity at its Angul complex.

BHUBANESWAR, March 12, 2026 — Jindal Steel and Power has emerged as the preferred bidder for the Rengalaberha North-East Extension and Nuagan West iron ore block in Odisha following a state auction, days after winning the Thakurani A1 block.

Shares of JSPL rose about 3% on Thursday, closing at ₹1,226.30 on the National Stock Exchange, as investors responded to the company’s expanding raw material base.

Reserves and quality

The newly secured Keonjhar district block is estimated to hold roughly 38 million tonnes of iron ore. Company disclosures indicate a significant portion comprises high-grade fines and lumps with iron (Fe) content near 60%, while overall average grade remains commercially viable.

To win the block, JSPL offered a 111.15% premium over the benchmark price, underscoring strong competition among integrated steel producers for domestic ore assets.

Strengthening captive supply

The acquisition follows JSPL’s win earlier this week for the Thakurani A1 block, which holds over 50 million tonnes of estimated reserves and was secured with a 101.20% premium.

Both blocks were part of a tranche of mineral assets auctioned by the Odisha government in late 2025.

Industry analysts say the additions support JSPL’s long-term raw material needs, particularly as reserves at its Tensa mine are expected to decline over the next few years.

Operational timeline

Commercial production from the newly acquired blocks is expected to take time, as development requires environmental, forest and regulatory approvals.

Industry estimates suggest a lead time of around three years before production begins. The resources are expected to support JSPL’s Angul plant expansion from 9 million tonnes to 12 million tonnes annually.

Why this matters

• Raw material security: Captive ore reduces exposure to market volatility.
• Expansion support: Additional supply underpins JSPL’s Angul growth plans.
• Industry competition: High premiums reflect strong demand for domestic mineral assets.

FAQs

Q1. Which mines did JSPL win?

The Rengalaberha North-East Extension/Nuagan West block and the Thakurani A1 block in Keonjhar district.

Q2. How large are the reserves?

Around 38 million tonnes at Rengalaberha and over 50 million tonnes at Thakurani A1.

Q3. Why is Fe content important?

Higher Fe grades improve furnace efficiency and reduce processing costs.

Q4. What premiums were paid?

111.15% for Rengalaberha and 101.20% for Thakurani A1.

Q5. When will production start?

Typically within about three years, subject to approvals.

Q6. How did markets react?

JSPL shares rose roughly 3% following the announcement.