Coal India has won its first iron ore mining block, marking the state-run coal giant's entry into a new sector.

The company secured the Gadadharpur iron-ore block in the eastern state of Odisha through a competitive auction, Odisha's director of mines and geology, Rohit Kumar Lenka, said Thursday.

The block holds an estimated 258 million tonnes of iron-ore resources, according to commodities consultancy BigMint.

The win comes as India's iron ore sector expands rapidly. BigMint projects the country will produce between 340 million and 345 million tons of iron ore in the 2026/27 fiscal year, up from roughly 316 million tons a year earlier.

India is the world's second-largest crude steel producer, trailing only China.

Odisha is one of India's most important mineral-producing states. Rising iron-ore output there is expected to support planned steelmaking capacity additions, along with growing infrastructure and construction demand nationwide.

Details on Coal India's development timeline for the Gadadharpur block remain unclear.