India: Shree Shyam Mineral Corporation bags Khara A and B block in Chhattisgarh iron ore mine auction

• Resource-rich Khara block attracts premium of 165.05%
  
  
• High-grade ore comprises 0.85 mnt of total resources
  
  

Shree Shyam Mineral Corporation emerged as the highest bidder in the Khara A and B Iron Ore Block auction by quoting a premium of 165.05%, reflecting strong competition for iron ore assets with sizeable reserves and favourable ore quality. Located in Chhattisgarh's Kabirdham district, the Khara A and B block is spread across around 301 hectares, comprising Block-A of 100.779 ha and Block-B of 200.221 ha, making it a strategically important mining asset in the region.

The block hosts total geological resources of around 1.9 million tonnes (mnt) of iron ore, including high-grade, medium-grade, low-grade, and float ore deposits. Of the total resources, nearly 0.85 mnt comprise high-grade ore, highlighting the commercial attractiveness of the mine. The average iron ore grade in the block remains strong, with Khara Block-A high-grade ore containing around 65.03% Fe, while Khara Block-B high-grade ore carries approximately 65.58% Fe. Medium-grade ore in Block-A contains around 63.14% Fe, whereas low-grade ore in Block-B averages 56.37% Fe. The presence of float ore with an Fe content of nearly 63.79% further enhances the overall mineral potential of the block.

The aggressive premium quoted by the company indicates growing industry confidence in long-term steel demand and the strategic importance of securing captive iron ore resources amid tightening merchant supply availability.