India’s largest coal producer is entering iron ore mining to support the nation’s expanding steel sector and transition to cleaner energy, signalling a significant shift in its strategic direction amid broader mineral and energy diversification plans.
Coal India is moving into iron ore mining as India’s biggest coal producer broadens beyond its core fuel business and positions itself for a slower-carbon future. The state-run company said it has been named the preferred bidder for the Gadadharpur block in Odisha, a site it says contains an estimated 288 million tonnes of total resources.
The shift fits a wider plan at Coal India to expand into minerals and cleaner energy as India works towards net-zero emissions by 2070. The company has already secured a graphite block in central India and, over the past six years, has won shareholder approval to enter businesses including critical minerals such as lithium and cobalt, as well as hydrogen and energy storage batteries.
The move into iron ore also reflects the scale of expected demand from India’s steel sector. The country has set a goal of more than doubling steelmaking capacity to 500 million tonnes by 2047, with large producers investing heavily as infrastructure spending and industrial growth accelerate. Wood Mackenzie has estimated that India’s rising steel capacity could push iron ore imports to 40 million tonnes by 2035, roughly four times current levels.
For Coal India, the diversification comes as it contends with high inventory levels and a gradual erosion of coal’s share in the power mix, even though coal still dominates electricity generation in the country. The company said it has one year to meet conditions tied to the Odisha block before being confirmed as the successful bidder, and three more years to complete the mining lease.
The latest move also comes against the backdrop of a broader push by Indian miners to widen their portfolios. Business Standard recently reported that Coal India is planning about ₹1 trillion of capital spending over five years across mining infrastructure, evacuation systems, coal gasification, thermal power and clean energy. In parallel, NMDC, India’s largest iron ore producer, is seeking revenue from non-iron ore assets and overseas mines, while Odisha’s mineral-rich terrain continues to attract steel and mining investment.
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