Successful auction of strategic mineral blocks in Tranche IV
The Ministry of Mines has successfully concluded the auction of eight critical mineral blocks, launched under Tranche IV of the Auction of Critical and Strategic Mineral Blocks. This achievement underscores the government’s commitment to bolstering mineral security and ensuring the availability of vital resources needed for the nation’s energy transition, sustainable industrial and economic growth.
The auction, conducted under the Mines and Minerals (Development and Regulation) Act, 1957, leverages the Central Government’s authority to grant mineral concessions for key minerals listed in Part D of the First Schedule. This legislative empowerment marks a pivotal step in India’s strategy to secure a steady supply of critical minerals vital for sectors including electronics, defence, and renewable energy.
Following the issuance of the Notice Inviting Tender (NIT) on June 24, 2024, for 21 mineral blocks, the auction attracted strong interest from industry stakeholders. After the evaluation of technical bids, 10 mineral blocks advanced to the second round of e-auction, which included three First Attempt Blocks and seven Second Attempt Blocks. These blocks contain deposits of strategic minerals such as phosphorite, graphite, and vanadium, essential for high-tech and green energy applications. Auction process for the eight blocks have successfully concluded and for remaining two blocks the process will be completed by 2 December 2024.
The Tranche IV auction has marked a beginning for North-East into India’s mineral auction landscape, with four maiden blocks successfully auctioned. Significantly, this tranche features the first successful auction of a tungsten block and two cobalt blocks. These strategic minerals are essential for high-tech, defence, and energy storage applications, and will contribute towards reducing import dependency.
With the successful auction of eight critical mineral blocks under Tranche IV, the total number of successfully auctioned critical & strategic mineral blocks by the Central Government has reached 22. The successful auction outcomes reflect the growing confidence among industry players in India’s mining sector reforms.
