India's Ministry of Mines set to auction over 100 critical mineral blocks

New Delhi: The Ministry of Mines said on Thursday, 22 Dec that it will be conducting a pre-bid conference for the first tranche of the auction of critical and strategic minerals on Friday, 22nd December, at Dr. Ambedkar International Centre in hybrid mode. This comes in the wake of the initial announcement made in February wherein it had called for bids for over 100 critical mineral blocks for bidding.

The Minister of Mines Pralhad Joshi then revealed plans during the National Geoscience Data Repository (NGDR) portal launch, stating that alongside onshore minerals, offshore reserves would also enter the auction.

"Before February next year, we're bringing forth more than 100 blocks containing vital minerals for auction; these blocks are prepared and awaiting," Joshi affirmed. Additionally, he mentioned, "Around 15 offshore blocks will be up for auction in March."

This announcement arrives on the heels of India's recent commencement of the auction process for 20 critical mineral blocks, notably including the 5.9-million-tonne lithium reserves in Jammu & Kashmir's Reasi district. The combined value of these 20 blocks was estimated at Rs 45,000 crore.

Joshi emphasized the necessity of augmenting critical mineral reserves, stating, "India is now recognized as the World Factory. The transition away from China is rapidly unfolding. We must be equipped to supply crucial minerals to companies establishing themselves in India."

The pre-bid conference on Thursday was aimed at the initial auction tranche of critical and strategic minerals. This conference seeks to facilitate discussions and query resolutions for industry players, potential bidders, and stakeholders.

Scheduled following the launch of the first tranche auction on November 29, which includes 20 critical and strategic mineral blocks in eight states and union territories—Bihar, Chhattisgarh, Gujarat, Jharkhand, Odisha, Tamil Nadu, Uttar Pradesh, and Jammu and Kashmir—the forthcoming auction encompasses minerals like Glauconite, Graphite, Potash, Nickel, Platinum Group Elements (PGE), Lithium, Rare Earth Elements (REE), Molybdenum, and Phosphorite.

These minerals play pivotal roles in manufacturing high-tech devices such as wind turbines, solar panels, and electronic gadgets like smartphones and tablets, along with applications in military hardware. Recognizing the urgent need to diversify mineral supply chains due to China's dominant position and geopolitical tensions, the Ministry aims to break this near-monopoly, ensuring a stable supply chain.

Overall, this critical mineral block auction aligns with the Ministry's objective of achieving self-sufficiency in the domain of critical and strategic minerals, solidifying the nation's autonomy in this pivotal sector.