India launching its first-ever auction of undersea mineral blocks for mining

New Delhi, Nov 27 The Union Ministry of Mines will be launching the first-ever tranche of the auction of mineral blocks in the offshore areas of the country on November 28, marking a landmark initiative of India’s entry into the exploration and development of undersea mineral resources, according to an official statement released on Wednesday.

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

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, the statement explained.

“As India steps into this new frontier of undersea mineral exploration, it aims to not only bolster its industrial and green energy sectors but also secure its position as a global leader in critical minerals,” the statement added.

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.

Union Minister of Coal and Mines G. Kishan Reddy and Union Minister of State for Coal and Mines Satish Chandra Dubey will officially launch this ground-breaking initiative.

“The Ministry of Mines thrives to mark a transformative chapter in India’s mineral exploration journey, with the potential to unlock vast economic and strategic opportunities. By fostering private sector participation, leveraging advanced technologies, and streamlining regulatory frameworks, this initiative underscores the government’s commitment to sustainable resource utilization and self-reliance,” the statement added.

Source: IANS