New Delhi, Aug. 6 -- State-owned Coal India Ltd (CIL) has made a gambit to diversify into iron ore mining after emerging as the top bidder for a key mining block in Odisha.

This also marks the coal behemoth's entry into a highly competitive sector dominated by the fellow public-sector firm NMDC Ltd.

The Gadadharpur block, spread over 265.05 hectares in Keonjhar district, holds estimated resources of about 258.04 million tonnes of iron ore. CIL has emerged as the highest bidder by quoting a 114% premium over the notified value, according to people familiar with the matter.

Coal India is expected to receive the allotment letter from the government within a week. The highest bidder is typically awarded the mining lease, making the post-au...