The Ministry of Mines received over 50 bids for the first tranche of its e-auction for critical and strategic minerals, exceeding expectations and highlighting significant industry interest and confidence in the process. This robust response signifies the effectiveness of the government’s initiatives in fostering transparency, competition, and sustainable growth within the mining sector.
Launched in November 2023, the first tranche offered 20 critical and strategic mineral blocks spread across eight states, encompassing a diverse array of minerals crucial for various industries. This included minerals like glauconite, nickel, platinum group elements, potash, graphite, molybdenum, phosphorite, lithium, and rare earth elements. These resources are essential for powering clean energy technologies, electronics, defence applications, and various other sectors.
The auction attracted a wide range of over 180 bidders, indicating widespread industry participation. Established mining companies like Vedanta Ltd and Coal India Ltd, alongside EV manufacturers like Ola Electric, cement producers such as Shree Cement and Orient Cements, and energy companies including NLC India Ltd, Dalmia Group, Rungta Group, and Jindal Power all submitted bids. This diverse representation highlights the cross-sectoral importance of critical minerals and the potential impact of the auction on various industries.
The auction process adhered to a high standard of transparency and efficiency. Tender documents were readily available for purchase online, and bids were submitted through a structured online and offline system, ensuring inclusivity and accessibility for all participating companies. Additionally, the opening of bids was conducted openly and transparently, with representatives from the government and participating bidders present in person. This commitment to transparency helps to build trust and confidence among industry players and the wider public.
This successful auction signifies a significant step forward for India in securing its critical mineral resources. The government’s designation of 24 critical and strategic minerals and its amendment to the Mines and Minerals (Development and Regulation) Act (MMDR Act) pave the way for responsible and sustainable exploration and development practices in this crucial sector. The amendment ensures that the revenue generated from the auctions accrues to state governments, contributing to their development initiatives and promoting regional economic growth.
