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Informist, Wednesday, Nov. 27, 2024

NEW DELHI – The Union Ministry of Mines will Thursday hold the first-ever auction of mineral blocks situated in the offshore areas of the country, according to an official statement released on Wednesday. This will mark India's entry into the exploration and development of undersea mineral resources. The offshore area of India includes the territorial waters, continental shelf, exclusive economic zones and other maritime zones of the country.

A total of 13 such blocks will be auctioned in the first phase, a statement by the ministry of mines read. These blocks will be spread across the Arabian Sea and the Andaman Sea, featuring a mix of construction sand, lime mud, and polymetallic nodules. 

Earlier, on the sidelines of an event on Nov. 14, Coal and Mines Minister G. Kishan Reddy had said, "India's exploration of critical minerals is going on in full swing...We have asked for approval from the Cabinet to begin offshore mining and are working on finalising the guidelines for it. There are several clearances required. The auction should begin in 2-3 months. We plan to auction about 10 blocks in the first phase."

The government had earlier announced the availability of several offshore blocks for mineral exploration and production. The move is aimed at boosting domestic mineral production and reducing reliance on imports.

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, and polymetallic nodules, India must develop diverse mineral sources to reduce dependence on imports and stabilize its supply chains, the statement by the ministry of mines said. 

"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, Parliament had 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.  End

Reported by Pallavi Singhal

Edited by Akul Nishant Akhoury

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