New Delhi: The Indian Government has launched the country’s first-ever auction of Exploration Licences (ELs) for critical minerals, marking a significant step towards unlocking India's untapped deep-seated mineral resources. Union Coal and Mines Minister G Kishan Reddy inaugurated the initiative in Dona Paula, Goa, alongside Chief Minister Pramod Sawant, signaling a major reform in the sector.
The auction includes 13 exploration blocks spread across multiple states, including Andhra Pradesh, Gujarat, Jharkhand, Maharashtra, Uttar Pradesh, Chhattisgarh, Rajasthan, and Karnataka. The blocks comprise essential minerals such as rare earth elements (REE), zinc, diamonds, copper, and platinum group minerals (PGE). This initiative aims to bolster India’s self-reliance in critical minerals and drive technological advancements in mineral exploration.
Speaking at the launch, Reddy highlighted the transformative changes in India’s mining sector over the past decade. He emphasized that the country has established itself as a formidable player in the global mineral landscape, creating new opportunities for private sector participation. He also noted that the government’s initiatives will foster a faster, more technologically driven, and globally competitive mineral exploration framework.
The ELs grant private companies exclusive exploration access of up to 1,000 square meters per licence, ensuring a transparent and efficient process. Reddy underscored that this new framework will encourage innovation while maintaining a focus on the most promising areas for detailed exploration. The government’s amendments to the Mines and Minerals (Development and Regulation) Act (MMDR) in 2023 have played a crucial role in enabling this reform by introducing a structured mechanism for private sector participation in mineral exploration.
The event also featured a roadshow for the fifth tranche of critical mineral blocks and the launch of the AI Hackathon 2025. The hackathon aims to leverage artificial intelligence (AI) for mineral targeting, reflecting the government’s commitment to technological innovation in the mining sector.
Goa Chief Minister Pramod Sawant welcomed the government’s decision to host the launch in the state and acknowledged the mining sector’s significant contribution to the economy, employment, and industrial development. He emphasized the importance of self-reliance in critical minerals, which are vital for industries such as electronics and renewable energy. Sawant also noted that increased exploration efforts are necessary to tap into the country’s mineral wealth effectively.
Mines Secretary V L Kantha Rao underscored the significance of the auction, noting that some of the minerals currently being imported in their entirety are included in the auctioned blocks. The initiative, he said, is a crucial step toward India’s goal of self-reliance in critical minerals. He further explained that the exploration model allows private companies to conduct surveys and, if successful, gain mining rights for up to 50 years. In cases where exploration does not yield results, the government will bear 50 percent of the associated risk, thereby encouraging private investment in the sector.
The launch of India's first exploration licence auction represents a crucial milestone in the country’s mining and minerals sector. By fostering private sector participation, encouraging technological innovation, and reducing dependency on mineral imports, the initiative is expected to play a vital role in shaping India’s future as a global leader in mineral exploration and resource management.
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