Jindal Steel wins Thakurani-A1 iron ore block with 101.2% premium bid

Summary

Jindal Steel & Power Ltd. has emerged as the preferred bidder for the Thakurani-A1 iron ore block in Odisha, securing the asset with a 101.2% revenue-sharing premium to strengthen raw material supply for its expanding steel operations.

NEW DELHI/BHUBANESWAR, March 11, 2026 — Jindal Steel & Power Ltd. (JSPL) has won the Thakurani-A1 iron ore block in Odisha’s Keonjhar district through an online auction concluded on March 10, according to official results.

The company secured the mine with a revenue-sharing premium of 101.2%, reflecting strong competition for domestic iron ore resources.

Supporting backward integration

The acquisition aligns with JSPL’s backward-integration strategy by helping secure feedstock for its integrated steel plant at Angul, Odisha.

The Angul facility has reached around 9 million tonnes per annum (MTPA) capacity and is being expanded toward 12 MTPA, positioning it among India’s largest single-site steel complexes.

Resource potential and timeline

The Thakurani-A1 block spans roughly 202 hectares and is estimated to contain about 50 million tonnes of iron ore resources. Currently at the G3 exploration stage, the block will require additional exploration, environmental and forest clearances, and infrastructure development before production begins.

Industry estimates suggest a lead time of roughly three years before commercial mining starts.

Strengthening the raw-material pipeline

The latest win follows JSPL’s acquisition of the Roida-I block in 2025, which added significant reserves to its portfolio.

Securing additional captive resources is considered strategically important as some existing mines mature and demand rises alongside planned capacity expansion.

Market reaction

JSPL shares traded marginally higher after the announcement, reflecting investor optimism about long-term resource security despite the relatively high premium paid for the asset.

FAQs

Q1. What does the 101.2% premium mean?

JSPL will pay 101.2% of the benchmark Average Sale Price (ASP) for each tonne mined, as revenue share to the state.

Q2. When will mining begin?

Production is unlikely before three years due to exploration, approvals, and infrastructure development.

Q3. Why is this important for JSPL?

It supports captive supply for the Angul plant and reduces exposure to market price volatility.

Q4. How large is the resource base?

The block is estimated to hold about 50 million tonnes of iron ore.

Q5. What other mines does JSPL operate?

The company operates mines including Tensa and Roida-I in Odisha.