In a significant move to revitalize India’s mining sector and promote self-reliance, the government plans to auction critical mineral and offshore mineral blocks, along with granting exploration licenses in 2024. This initiative is poised to have a substantial multiplier effect on economic growth and aligns with the nation’s focus on strategic resource development.
Mines Minister Pralhad Joshi outlined the government’s strategy, stating, “Every few months in 2024, we will bring out a new batch of critical minerals for auction. Not just critical minerals, exploration of deep-seated minerals like gold and copper, as well as offshore areas, are on the priority list.”
In November, the government initiated the first tranche of e-auction featuring 20 mines rich in critical and strategic minerals such as copper, lithium, nickel, and potash. A committee established by the Mines Ministry identified 30 minerals as critical and strategic, emphasizing their economic importance and the supply risk associated with India’s priorities and future energy transition requirements.
The Mines and Minerals (Development and Regulation) Amendment Act, 2023, introduced a new Mineral Concession – exploration license for 29 deep-seated minerals and critical minerals. These include essential elements for technology, manufacturing, and various industries.
To further augment the mining sector, the government is set to finalize rules for the exploration of offshore mineral blocks. The amendments to the Offshore Areas Mineral (Development and Regulation) Act, 2002, pave the way for auctioning production leases for offshore minerals. The Mines Secretary, V L Kantha Rao, mentioned that rules are under development, and auctions for offshore mineral blocks are likely to take place in March or April of the coming year.
Additionally, a new regime for exploration licenses will be introduced, where the government will auction blocks for exploration. This proactive approach aims to encourage private sector participation in the exploration of essential and deep-seated minerals.
As India holds approximately six percent of the world’s rare earth reserves but contributes only 1% to the global output, the amended laws play a crucial role in fostering resilience within critical mineral supply chains.
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