New Delhi, Aug. 17 -- Coal India Ltd is set to bid for more iron ore mines, depending on whether the blocks are financially viable, as the country's largest coal miner seeks to secure raw material for a planned pelletization plant, two people familiar with the matter said.

The move follows Coal India's emergence earlier this month as the top bidder for the Gadadharpur iron ore block in Odisha, marking its entry into a sector dominated by public-sector peer NMDC Ltd. Coal India will pay the Odisha government a premium equivalent ​to 114.05% of the value of ​minerals dispatched from the block, Mint reported on 6 August.

A pelletization plant converts fine iron ore into small, stronger pellets that can be used as a raw material...