Vedanta Declared Preferred Bidder for Janthakal Iron Ore Mine

Mumbai, July 23, 2025: Vedanta Limited (NSE: VEDL, BSE: 500295) has been named the Preferred Bidder for the Janthakal Iron Ore Mine in Karnataka. This follows a competitive e-auction conducted by the Department of Mines & Geology, Government of Karnataka.

Strategic Acquisition in Karnataka’s Mineral Belt

The Janthakal Iron Ore Mine, located in Karnataka, covers an area of 71.16 hectares and is classified at the G3 level of exploration. This classification indicates that preliminary exploration has taken place, suggesting the block holds potential for further geological assessment.

The e-auction process began under the Karnataka government’s Notice Inviting Tender (NIT) dated 3 October 2024. After successfully clearing the initial bidding stage, Vedanta participated in the live bidding round. They were officially notified as the preferred bidder on 22 July 2025, at 3:17 PM IST.

Next Steps Toward Mining License

Vedanta’s designation as the preferred bidder is dependent on fulfilling several key compliance requirements as per the tender norms. These steps include:

• Submitting a Performance Bank Guarantee.
• Completing all formalities outlined in the Tender Document.
• Securing the necessary governmental approvals, permissions, and clearances.
• Executing the required agreements and deeds with the relevant departments.

The official grant of the mining license will occur once these conditions are successfully met.

Financial Snapshot

Vedanta Limited’s share price closed at ₹455.65 on 23 July 2025 on the NSE. The company’s P/E ratio (TTM) stands at 16.94x, which is slightly higher than the industry P/E ratio of 16.73x. This indicates that the stock is trading at a valuation close to its industry peers. For the financial year ending March 2025, Vedanta reported consolidated revenue of ₹1,41,793 crore and a net profit of ₹1,855 crore. The company’s market capitalisation is approximately ₹1,77,092 crore. Vedanta has a Return on Equity (RoE) of 5.09% and a Debt to Equity ratio of 0.82x as of March 2025. These figures reflect a stable financial position with a manageable debt load relative to equity.

What does The Mining License Mean For The Investors?

If Vedanta secures the final mining license, it could boost the company’s long-term earnings potential by strengthening its raw material supply and reducing dependency on third-party iron ore. This aligns with its vertical integration strategy, improving cost efficiency across its metals business. While near-term financials may not see immediate impact, the Janthakal block adds strategic value to Vedanta’s resource portfolio. With a stable RoE of 5.09% and manageable debt, this acquisition could support improved margins and profitability over time, enhancing investor confidence in Vedanta’s growth trajectory.

About Vedanta Limited

Vedanta Limited is a diversified natural resources company listed on both the BSE and the NSE. The company has interests in zinc, lead, silver, oil & gas, iron ore, steel, aluminium, and power. With a focus on sustainable practices and community development, Vedanta remains one of India’s most prominent resource sector players.

This development aligns with the company’s ongoing strategic initiatives to strengthen its presence in India’s mineral-rich belts and secure long-term resource access.

REF:https://nsearchives.nseindia.com/corporate/VEDL_23072025150532_VEDLSEIntimationIronoreblockKarnatakaPreferredbiddersigned.pdf

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