Vedanta declared preferred bidder for Punnam manganese block in Andhra Pradesh

New Delhi, 19th September 2025: Vedanta Group, a global leader in critical minerals, energy transition metals, energy, and technology, on Thursday announced that it has been declared the preferred bidder for the Punnam manganese block in Andhra Pradesh. The company participated in the e-auction process conducted by the Department of Mines & Geology, Government of Andhra Pradesh after qualifying in the initial bid stage.

The Punnam manganese block, covering an area of 152 hectares, is currently at the G4 level of exploration, indicating early-stage geological investigation. Vedanta qualified in the initial bid stage and emerged as the top bidder in the final round of the competitive e-auction process.

The allocation stands to further bolster Vedanta’s diverse mineral and metal portfolio including aluminium, zinc, silver, iron ore. This comes close on the heels of securing critical mineral blocks across the country, including rare earth elements, vanadium, graphite and tungsten. The Group is committed to supporting India's ambitions for mineral security, energy transition, and sustainable industrial growth.

Manganese is categorized as a strategic mineral under India’s mining policy due to its widespread industrial applications and essential role in emerging technologies. It is crucial for producing ferro-manganese and specialized steel, electric vehicle (EV) batteries, renewable energy storage systems among others.

Join PSU Connect on WhatsApp now for quick updates! Whatsapp Channel

Read Also : India advances clean energy with Rs. 42,000 crore Nuclear power plant in Rajasthan

India’s Manganese Mining Landscape

India is the fifth-largest producer of manganese ore, with significant reserves found in states like Odisha, Madhya Pradesh, Maharashtra, Karnataka, and Andhra Pradesh. With India importing nearly 60% of its manganese ore requirements, there is a significant opportunity to substitute imports through domestic mining expansion.

India holds substantial manganese reserves of more than 100 years at current production capacity. The opening of new mining blocks presents a transformational opportunity to tap into these reserves and reduce import dependency, enhancing India’s self-reliance aligning with the Make in India and Atmanirbhar Bharat campaigns.

The Indian Bureau of Mines (IBM) estimates that the country possesses over 495.87 million tonnes of manganese ore reserves, with a growing demand driven by infrastructure, manufacturing, and clean energy initiatives.

India’s steel output surged 9.8%, driven by infrastructure and construction booms. The demand for manganese alloys is projected to more than double in the next decade, positioning this strategic mineral as a high-growth commodity. India boasts one of the highest manganese alloys utilization rates globally at 65%, compared to the global average of 51%, underscoring the efficiency and scalability of the domestic market.

Industry experts say government incentives, anti-dumping duties, and safeguard measures are actively supporting the steel and alloy ecosystem, creating a favourable policy environment for mining investments.

Read Also : Vedanta declared preferred bidder for Punnam manganese block in Andhra Pradesh

Global Significance of Manganese

Globally, the manganese market is witnessing robust growth due to its critical use in steel and ferroalloys manufacturing, electric vehicle (EV) batteries, particularly high-performance lithium-ion batteries (e.g., NMC—Nickel Manganese Cobalt), renewable energy storage systems and electronics and specialty alloys.

As nations move toward decarbonization and energy transition, manganese is gaining recognition as a vital mineral for the green economy. The International Energy Agency (IEA) projects a steep rise in demand for battery-grade manganese by 2030, driven by the global shift to clean energy technologies.

Read Also : Vantara Rescue Rangers returns with exciting new edition of wildlife adventure for children