Mines Ministry launches India's first tranche of offshore mineral block auction

New Delhi: Union Minister for Mines G Kishan Reddy launched on Thursday India's first tranche of mineral blocks auction in offshore areas. A total of 13 offshore mineral blocks have been put up for auction, including three construction sand blocks off the coast of Kerala, Arabian Sea, three Lime-mud blocks off the coast of Gujarat, Arabian Sea and Polymetallic nodules and crusts (containing Cobalt, Nickel, etc) off Great Nicobar Islands, Andaman Sea. "This landmark event is a major step forward in India’s journey to explore and utilise its extensive offshore mineral resources within its Exclusive Economic Zone (EEZ)... These minerals are critical for infrastructure development, high-tech manufacturing and the green energy transition," said the Ministry of Mines.

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Launching the auction process, Reddy lauded the beginning of a new chapter in India's quest for energy transitionand net zero, "For the first time in India, the auction of offshore mineral mines has been launched. This is a historic moment as it will herald a new chapter of mineral mining in offshore areas."

"Mining sector will now contribute towards a developed nation. India will now be part of a select league of nations that are exploring and producing minerals from offshore areas," he added. The minister said that the demand for critical minerals is going to increase many-fold and India is making all efforts to become a leading player in global critical minerals market. He said that India is going to launch the National Critical Mineral Mission soon to strengthen supply chains of critical minerals in India.

Royalty rates kept minimum, commercially viable blocks put up for auction: Secy

Mines Secretary VL Kantha Rao, in his address, elaborated on the efforts made by the Geological Survey of India (GSI) for exploration of mineral resources in the seabed during the last 40-50 years. GSI has identified about six lakh square kilometres of offshore area having potential for offshore mining. "Potential has been established for mineral mining in offshore areas. And we now want to bring in the private sector. Royalty rates have been kept at minimum. And we have chosen blocks are commercially viable," Rao told stakeholders at the launch event.

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 that the government is fully committed to supporting and facilitating the offshore exploration and mining activities in the country.

"We are planning to do two-to-three roadshows in India and overseas after today's launch," Rao added.

Offshore mineral block auction: Tender docs sale to begin from Dec 3

The commencement of sale of the tender document of offshore mineral blocks will begin from December 3. Prospective bidders can submit their bids by the end of February 2025.

With a pivot towards energy transition the world over, countries are looking to develop the critical mineral industry. These minerals are called critical because they are used in the manufacturing of green energy technologies. Currently, most of the supply chain in the critical mineral industry is concentrated in China. India, which does not have large reserves of critical minerals, is looking to mine what is available and also acquire critical mineral assets abroad to ensure availability of these minerals from diverse sources in the future.

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