New Delhi, Aug. 6 -- State-owned Coal India Ltd (CIL) has launched a gambit to diversify into iron ore mining after emerging as the top bidder for a key mining block in Odisha. This marks the coal behemoth's entry into a highly competitive sector dominated by its public sector peer, NMDC Ltd.

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

In a stock exchange filing post market hours on Thursday, Coal India confirmed it is the preferred bidder for the Odisha block and that the auction premium was 114.05%.

The development comes ...