On November 28, 2024, Shri G. Kishan Reddy, Union Minister of Coal and Mines, launched the first-ever e-auction of offshore mineral blocks in India’s Exclusive Economic Zone (EEZ). This event marks a significant milestone in the country’s effort to explore and utilize its vast offshore mineral resources.
Key Details of the Offshore Mineral Auction:
This first tranche includes 13 mineral blocks located across the Arabian Sea and the Andaman Sea. These blocks contain critical minerals such as construction sand, lime mud, and polymetallic nodules, which are essential for infrastructure development, high-tech manufacturing, and the green energy transition.
| Mineral(s) | Number of Blocks | Location |
|---|---|---|
| Construction sand | 3 | Off the coast of Kerala, the Arabian Sea |
| Lime-mud | 3 | Off the coast of Gujarat, the Arabian Sea |
| Polymetallic nodules and crusts (Cobalt, Nickel, etc.) | 7 | Off the Great Nicobar Islands, the Andaman Sea |
A Historic Moment for India’s Mining Sector
The auction launch ceremony was attended by key officials from the Ministry of Mines, industry leaders, public sector enterprises, and international representatives from countries like the Republic of Korea, Indonesia, the Netherlands, the United Kingdom, and Australia.
Shri Reddy hailed the event as a historic moment, emphasizing the alignment with Prime Minister Narendra Modi’s vision of Viksit Bharat. He noted that the demand for critical minerals will rise significantly, and India is taking strong steps to become a global leader in the critical minerals market. As part of this initiative, the National Critical Mineral Mission will soon be launched to strengthen India’s critical mineral supply chains.
Efforts to Boost the Mining Sector
Shri Reddy highlighted several reforms that have made doing business in India’s mining sector easier. Since the introduction of the auction regime in 2015, 438 mineral blocks have been auctioned, significantly increasing state revenues. He encouraged industry stakeholders to participate in the offshore mining sector, which aims to reduce mineral imports, promote sustainable mining practices, and enhance India’s global mining capabilities.
Exploration Data and Auction Details
Shri V. L. Kantha Rao, Secretary of the Ministry of Mines, spoke about the extensive work of the Geological Survey of India (GSI), which has spent over 40-50 years exploring offshore mineral resources. GSI has identified over six lakh sq. km of potential mining areas in the sea. The data collected by GSI is now available on the National Geological Data Repository (NGDR) portal.
Shri Rao also mentioned that the government has set reasonable royalty rates to encourage industry participation and has carefully selected the best blocks for auction. He urged industry players to actively participate in this landmark auction.
Auction Process and Timeline
The sale of tender documents for the offshore mineral blocks will begin on December 3, 2024. Bidders will have until the end of February 2025 to submit their bids. The auction will be conducted online through a two-stage ascending forward process, where the highest bid based on the percentage of mineral value will win.
Looking Ahead: India’s Mineral Future
The Government of India is committed to continuing the momentum by offering more offshore mineral blocks for auction in a phased approach. This will help strengthen India’s mineral security, technological advancement, and sustainable development goals.
For more details on the auction terms, mineral blocks, and timelines, visit the MSTC auction platform: MSTC Auction.
This historic step sets the stage for India to secure its place as a leader in offshore mineral exploration and sustainable resource management.
