Govt Launches 9th Critical Minerals Auction With 20 Blocks

The Ministry of Mines has reported that 64 of the 100 unique critical and strategic mineral blocks offered during the previous eight rounds of e-auctions have been successfully auctioned.

The ministry launched the ninth auction tranche alongside the third round of Exploration Licence (EL) blocks in Goa on Nov 5, aiming to strengthen India's mineral security and support domestic manufacturing.

The latest round offers 20 critical and strategic mineral blocks across Chhattisgarh, Rajasthan, Telangana, West Bengal, Madhya Pradesh, Maharashtra, Andhra Pradesh and Bihar.

The blocks contain minerals such as rare earth elements (REE), vanadium, gallium, titanium, graphite, potash and glauconite.

These resources are important for electric vehicles, renewable energy technologies, defence equipment, aerospace, electronics and advanced manufacturing.

The government has also introduced 11 exploration blocks across Gujarat, Rajasthan, Telangana, West Bengal, Maharashtra and Madhya Pradesh.

These blocks target minerals including copper, vanadium, rare earth elements and potash.

The exploration licence framework, introduced through the Mines and Minerals (Development and Regulation) Act, allows private companies to participate in exploring 29 critical and deep-seated minerals before mining operations begin.

The initiative seeks to expand domestic exploration capabilities and reduce dependence on imported mineral resources.

To improve participation, the government notified the Mineral (Auction) Third Amendment Rules on Oct 16.

The amendments reduced the minimum number of technically qualified bidders required in the second auction round for Part D minerals from three to two.

Letters of Intent will also be issued automatically through the Unified Mining Portal, simplifying procedures for successful bidders.

Critical mineral blocks offered through Composite Licences and Mining Leases will follow a two-stage ascending forward auction.

Successful bidders will be selected based on the highest revenue-sharing percentage quoted.

Exploration Licence blocks, meanwhile, will follow a descending reverse auction, with the lowest quoted percentage of future mining revenue determining the winner.

The changes aim to improve auction efficiency, encourage private investment and strengthen India's supply chain for strategically important minerals.

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