Government Launches First Auction of Offshore Minerals with 13 Mines Available for Sale

The government has initiated the first auction round for offshore mineral blocks, offering 13 mines. These include three lime mud, three construction sand, and seven polymetallic nodules and crusts. This move marks India's entry into exploring and developing undersea mineral resources within its offshore territories. These minerals are essential for infrastructure, high-tech manufacturing, and green energy.

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Offshore areas encompass territorial waters, the continental shelf, the exclusive economic zone, and other maritime zones of India. At the launch event, Coal and Mines Minister G Kishan Reddy highlighted that exploring these offshore blocks will enhance India's mineral wealth. He noted that the demand for critical minerals in India is expected to rise significantly.

Critical Minerals Mission

Minister Reddy mentioned that lithium demand might increase eightfold soon. He also announced plans to start a Critical Minerals Mission shortly. Mines Secretary V L Kantha Rao stated that the government seeks partners for exploiting these minerals. He stressed the importance of research and development in this field.

Mines Additional Secretary Sanjay Lohia confirmed that all necessary rules for a successful auction of offshore mineral blocks are in place. He acknowledged the challenge of advancing mining in offshore areas. The ministry aims to conduct two to three roadshows in India and abroad following the launch.

Global Shift Towards High-Demand Minerals

With a global shift towards technologies dependent on minerals like cobalt, nickel, rare earth elements, and polymetallic nodules, India needs diverse mineral sources. This diversification will help reduce import reliance and stabilise supply chains. The Mines Ministry emphasised this necessity.

In August last year, Parliament amended the Offshore Areas Mineral Development and Regulation Act, 2002. This amendment mandates auctions as the method for allocating mineral blocks in offshore areas. It streamlines granting production leases and composite licences for exploration and extraction.

India's venture into undersea mineral exploration aims to strengthen its industrial and green energy sectors. It also seeks to establish itself as a global leader in critical minerals.