Mines Ministry to Launch the First-ever Tranche of Auction of Mineral Blocks

The Ministry of Mines will launch the first-ever tranche of auction of mineral blocks in the offshore areas of India on 28th November 2024. This landmark initiative marks India’s entry into the exploration and development of undersea mineral resources within its offshore area.

The offshore area of India includes the territorial waters, continental shelf, exclusive economic zone (EEZ), and other maritime zones of India.

India’s Exclusive Economic Zone (EEZ) of over 2 million sq. km. holds significant mineral resources. Offshore minerals are vital to securing India’s strategic and economic interests.

With the rapid global shift towards technologies reliant on high-demand minerals, such as cobalt, nickel, rare earth elements (REE), and polymetallic nodules, India must develop diverse mineral sources to reduce dependence on imports and stabilize its supply chains.

 

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In August 2023, the Parliament amended the Offshore Areas Mineral (Development and Regulation) Act, 2002, mandating auction as a mode of allocation of mineral blocks in the offshore areas. This amendment allows the government to streamline the grant of production leases and composite licenses for the exploration and extraction of these resources.

This first tranche includes 13 carefully selected mineral blocks spanning across the Arabian Sea and the Andaman Sea, featuring a mix of construction sand, lime mud, and polymetallic nodules. These minerals are critical for infrastructure development, high-tech manufacturing, and the green energy transition.

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