Bhubaneswar, 04/02/2025: The Odisha government has approved the auction of ten mineral blocks, mainly for iron and manganese ore. This decision comes after more than two years of waiting, as the government was cautious due to high metal prices. The push from the central government seems to have encouraged the state to go ahead with the auction.
The auction will include four iron ore mines: Koira in Sundargarh district, and Roida-1, Putulipani, and Jalahuri in Keonjhar district. The leases for these mines expired in 2021, and they will now be auctioned. Also, the Jhumka-Pathiriposhi West iron ore block in Sundargarh, a new mine, will be available for bidding.
In addition, three blocks with both iron ore and manganese deposits located in Orahuri, Bhanjikususm (Sundargarh), and Roida-D (Keonjhar) are part of the auction. Two virgin bauxite blocks at Karlapat in Kalahandi district and Nunapaimali in Rayagada district will also be auctioned.
Even though metal prices are low right now, the state government was hesitant to auction the mines. However, after pressure from Union Mines Minister G Kishan Reddy during a recent visit, they decided to proceed. The concern was that low bids might result in long-term revenue loss for the state. The government sets minimum prices for the auction based on their valuation of the mines, but bidders might value them differently. The mining sector has been a major contributor to Odisha’s economy since the auction system was introduced after changes to the Mines and Minerals (Development and Regulation) Act in 2015.
