India has kickstarted its first offshore mineral auction, offering 13 blocks encompassing lime mud, construction sand, and polymetallic nodules. This move aims to bolster domestic mineral resources, crucial for infrastructure, high-tech manufacturing, and green energy transitions.
Govt launches 1st round of auction of minerals in offshore areas; 13 mines on sale (Pic: Pixabay)
New Delhi: The government on Thursday launched the first round of auction of mineral blocks in offshore areas with 13 mines — three lime mud, three construction sand and seven polymetallic nodules and crusts — being put on sale.
The allocation of mines will ensure India’s foray into exploration and development of undersea mineral resources within its offshore areas. These minerals are critical for infrastructure development, high-tech manufacturing and green energy transition. Offshore areas include territorial waters, continental shelf, exclusive economic zone, and other maritime zones of the country.
Speaking at the launch function, coal and mines minister G Kishan Reddy said that the exploration of these offshore blocks will strengthen the country’s mineral wealth. He further stated that the demand for critical minerals is going to rise in india and “we are expecting lithium demand will go up by eight times”, adding, “we are very shortly going to start Critical Minerals Mission”.
Mines secretary V L Kantha Rao said the government is looking for partners in exploiting these minerals. He also emphasised on research and development on these minerals.
“We are keen to do two to three roadshows in India and overseas after today’s launch,” he added.
Mines additional secretary Sanjay Lohia said that all rules required for successful auction of offshore mineral blocks is done. He added that the “challenge for us is that we have to take steps by which we take mining in the offshore areas”.
With the global shift towards technologies reliant on high-demand minerals, such as cobalt, nickel, rare earth elements, and polymetallic nodules, India must develop diverse mineral sources to reduce dependence on imports and stabilise its supply chains, the mines ministry said.
In August last year, the Parliament amended the Offshore Areas Mineral (Development and Regulation) Act, 2002, mandating auction as the mode of allocation of mineral blocks in offshore areas.
This amendment allows the government to streamline the grant of production leases and composite licences for the exploration and extraction of these resources. As the country steps into undersea mineral exploration, it aims to not only bolster its industrial and green energy sectors but also secure its position as a global leader in critical minerals.
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