Ministry of Mines Launches the First Ever Tranche of Auction of Mineral Blocks in the Offshore Areas

Ministry of Mines

Posted On: 28 NOV 2024 8:52PM by PIB Delhi

The first ever tranche of e-auction of mineral blocks in the offshore areas of India was launched by Shri G. Kishan Reddy, Union Minister of Coal and Mines on 28^th November, 2024. This landmark event is a major step forward in India’s journey to explore and utilize its extensive offshore mineral resources within its Exclusive Economic Zone (EEZ).

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

Details of blocks put up for auction:

The event was attended by officials from the Ministry of Mines, other Central Government Ministries and Departments, representatives of embassies/ high commission of Republic of Korea, Indonesia, Netherlands, United Kingdom and Australia, State Governments, industry leaders, public sector enterprises, potential bidders and media houses, marking a historic moment for India’s mining sector.

Shri G. Kishan Reddy, Union Minister of Coal and Mines, termed the launch as a historical moment which added a new chapter in the mines and mineral sector of India. He stated that this occasion is a step towards realising the vision of Prime Minister Shri Narendra Modi of Viksit Bharat. He emphasised that the demand for critical minerals is going to increase many folds and India is making all efforts to become a leading player in global critical minerals market. He said that India is going to launch National Critical Mineral Mission soon to strengthen supply chains of critical minerals in India.

The Minister gave an overview of the reforms brought by the government to increase ease of doing business in the mining sector. He highlighted that 438 mineral blocks have been auctioned after introduction of auction regime in the year 2015. This resulted in the increase of the revenue of the States exponentially. He further emphasized that India’s offshore mining initiative aims to reduce critical mineral imports, foster sustainable mining and enhance capacity-building efforts in the country. He called upon industry stakeholders to come forward for participating in exploration, mining and technology development to make India a global powerhouse in the offshore mining sector

Shri V. L. Kantha Rao, Secretary of the Ministry of Mines, in his address, elaborated on the efforts made by 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 sq. kms of offshore area having potential for offshore mining. He informed that all the exploration data generated by GSI is available in the National Geological Data Repository (NGDR) portal.

Shri Rao mentioned that the Government has prescribed reasonable royalty rates for the offshore minerals to encourage industry participation. The Government has carefully selected the best blocks for auction. 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 support and facilitate the offshore exploration and mining activities in the country.

The commencement of sale of the tender document of offshore mineral blocks will begin from 3^rd December, 2024. Prospective bidders can submit their bids by the end of February, 2025.

Detailed information on the mineral blocks, auction terms and timelines can be accessed on the MSTC auction platform at https://www.mstcecommerce.com/auctionhome/mlcln/. The auction will be conducted online in a transparent two-stage ascending forward auction process, where the highest bid based on the percentage of the mineral value will secure the winning bid.

The Government of India is committed to continuing this momentum by putting more offshore mineral blocks in auction in a phased approach, supporting India’s ambitions for mineral security, technological advancement and sustainable development.

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