New Delhi: Thirteen mineral blocks, spread across the Arabian Sea and the Andaman Sea, are up for auction in the first-ever tranche of e-auction of such blocks in offshore areas of India. The event was launched by G. Kishan Reddy, Union Minister of Coal and Mines today. The sale of the tender document for offshore mineral blocks will begin on December 3, 2024. Prospective bidders can submit their bids by the end of February 2025.
The auction will be conducted online in a “transparent” two-stage ascending forward auction process, where the highest bid based on the percentage of the mineral value will secure the winning bid.
The Geological Survey of India (GSI) has identified about six lakh square kilometres of offshore area having potential for offshore mining. The first tranche of the auction aims to explore and utilize India’s extensive offshore mineral resources within its Exclusive Economic Zone (EEZ).
The event was attended by officials from the Central and State governments, industry leaders, public sector enterprises, potential bidders, and representatives of respective embassies and high commissions of the Republic of Korea, Indonesia, the Netherlands, the United Kingdom, and Australia, among others.
This first tranche of the auction included a mix of minerals, such as construction sand, lime mud, and polymetallic nodules and crusts. These minerals are critical for infrastructure development, high-tech manufacturing and the green energy transition.
Details of blocks put up for auction:
Reddy termed the launch “historical” and emphasised that India was making all efforts to become a leading player in the global critical minerals market. He said that India would launch a National Critical Mineral Mission soon to strengthen the supply chains of critical minerals in India.
The Minister gave an overview of the reforms brought by the government to increase ease of doing business in the mining sector. He highlighted that 438 mineral blocks have been auctioned since the introduction of the auction regime in 2015. This increased the revenue of the States exponentially, he claimed. He further emphasized that India’s offshore mining initiative aims to reduce critical mineral imports, foster sustainable mining and enhance capacity-building efforts. He called upon industry stakeholders to come forward to participate in exploration, mining and technology development to make India a global powerhouse in the offshore mining sector.
VL Kantha Rao, Secretary of the Ministry of Mines, mentioned that the government has prescribed reasonable royalty rates for offshore minerals to encourage industry participation. “The government has carefully selected the best blocks for auction,” he said. He requested the industry players to come forward and participate actively in the first-ever auction being launched for offshore minerals in the country. He also assured the government’s support in offshore exploration and mining activities.
The Ministry of Mines stated that the government was committed to putting more offshore mineral blocks in auctions in a phased approach, supporting India’s ambitions for mineral security, technological advancement and sustainable development.
– global bihari bureau
