Jindal Steel Wins 50-Year Mining Lease for Roida-I Block in Odisha, Secures 126 MT Mineral Resource
By Shishta Dutta | Updated at: Oct 13, 2025 05:34 PM IST
New Delhi, July 4, 2025: Jindal Steel & Power Limited (JSPL) has secured a significant strategic win by obtaining a 50-year mining lease for the Roida-I Iron Ore and Manganese Block in Odisha. This move is expected to have substantial positive implications for the company.
Strategic Asset with High Reserve Potential
The Roida-I block, located in the mineral-rich Keonjhar District of Odisha, boasts an estimated 126.05 million tonnes of mineral reserves. It also comes with an existing Environmental Clearance (EC) capacity of 3 Million Tonnes Per Annum (MTPA). This acquisition significantly enhances Jindal Steel’s backwards integration, ensuring a stable and self-sufficient supply of critical raw materials like iron ore and manganese, which are essential for its integrated steel production facilities.
Key Mining Block Details
| Particulars | Details |
|---|---|
| Location | Keonjhar District, Odisha |
| Lease Term | 50 Years |
| Block Area | 104.84 hectares |
| Environmental Clearance Capacity | 3 MTPA |
| Estimated Mineral Reserve | 126.05 Million Tonnes |
| Resource Type | Iron Ore and Manganese |
The allotment follows a transparent e-auction held on June 6, 2025, where Jindal Steel emerged as the Preferred Bidder, under the framework of the Mines and Minerals (Development and Regulation) Act, 1957, and the Mineral (Auction) Rules, 2015.
Management Commentary
Pankaj Malhan, Executive Director (Angul), remarked:
“This mining lease is a critical enabler for our long-term vision of self-reliant steel production. With the Roida-I block, we are significantly bolstering our iron ore and manganese supply base, ensuring operational stability, cost efficiency, and support for our growth plans.”
He also highlighted the development as a sign of Jindal Steel’s commitment to Odisha’s economic and industrial advancement through sustainable mining practices.
Strategic Implications for Jindal Steel
The Roida-I mining lease substantially strengthens Jindal Steel’s vertical integration model. This aligns with the company’s broader focus on sustainability and operational efficiency. With global investments exceeding $12 billion, Jindal Steel is actively expanding its production capabilities while simultaneously working to reduce its carbon footprint through cleaner and more integrated operations. This acquisition is a strategic step towards achieving greater self-reliance in raw materials, which is crucial for maintaining competitive production costs and ensuring long-term growth in the steel sector.
How Did the Investors React?
The shares of Jindal Steel opened on a positive note. As of 9:30 AM, the shares were trading at ₹959.50, up by 0.31% or ₹3.00. It remains to be seen how the shares perform throughout the day and at what price they close at the end of the market session.
What’s Next for Jindal Steel?
With the Roida-I mining lease secured, Jindal Steel will begin work on operationalising the block, including scaling up output within the approved 3 MTPA environmental clearance. Investors will track updates on mine development timelines, production ramp-up, and integration into JSPL’s supply chain. The focus will also remain on how this move impacts the company’s raw material cost savings and long-term margin profile. Additional updates on expansion at Angul and other brownfield projects could further influence investor sentiment in the coming quarters.
Company Overview
Jindal Steel & Power Limited is a leading Indian steel producer listed on both BSE and NSE. The company operates across steel, mining, and infrastructure sectors, and has a significant domestic and global footprint. With a strong emphasis on sustainability, Jindal Steel is actively contributing to India’s vision of becoming a self-reliant industrial powerhouse.
REF: https://nsearchives.nseindia.com/corporate/JINDALSTEL_03072025215013_Binder1.pdf
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