On November 28, 2024, the Ministry of Mines, Government of India, will kick off the first-ever auction of mineral blocks in India's offshore areas. This is a major step forward in India’s efforts to explore and develop undersea mineral resources, which are located in areas like its territorial waters, continental shelf, and exclusive economic zone (EEZ).
India’s EEZ covers more than 2 million square kilometers, and it is rich in valuable minerals. These minerals are essential for India’s economic and strategic growth. With increasing demand for minerals like cobalt, nickel, rare earth elements, and polymetallic nodules—used in high-tech products and green energy technologies—India aims to develop its own sources of these minerals to reduce reliance on imports and make its supply chains more secure.
In August 2023, India’s Parliament changed the law governing offshore mineral exploration, making auctions the official method for allocating mineral blocks. This update is meant to make the process of granting licenses for exploration and extraction more efficient and transparent.
The first auction will include 13 carefully selected mineral blocks in the Arabian Sea and Andaman Sea. These blocks contain valuable minerals such as construction sand, limemud, and polymetallic nodules, which are important for building infrastructure, manufacturing advanced technology, and supporting the green energy shift.
The official launch of this initiative will be led by Union Minister of Coal and Mines, Shri G. Kishan Reddy, and Union Minister of State for Coal and Mines, Shri Satish Chandra Dubey.
This auction marks a new chapter in India’s journey to tap into undersea mineral resources. The government aims to encourage private companies to participate in the process and use advanced technology to explore these resources. This move is part of India's broader goal to use its resources more sustainably and become more self-reliant. By developing these offshore minerals, India hopes to strengthen its economy, boost its green energy sector, and position itself as a leader in the global market for critical minerals.(PR)