Critical mineral block auction: Reddy launches 4th tranche; offshore blocks to be auctioned within 100 days

Along with the launch of the 4th tranche of the auction of critical and strategic minerals, the government also announced the winners for the first tranche of auctions.

New Delhi: Minister for Mines G Kishan Reddy and Minister of State (MoS) for Mines Satish Chandra Dubey launched the 4th tranche of the auction of critical and strategic minerals on Monday in New Delhi. This latest tranche includes 21 blocks of critical minerals. Out of these 21 blocks, 11 are fresh blocks, spanning six states: Arunachal Pradesh, Chhattisgarh, Jharkhand, Karnataka, Rajasthan, and Uttar Pradesh. These blocks contain a variety of minerals including Graphite, Glauconite, Phosphorite, Potash, Nickel, PGE, Phosphate, and Rare Earth Elements (REE). Additionally, 10 critical mineral blocks are offered as “second attempt” blocks from previous tranches of auctions. These 10 blocks are located in Andhra Pradesh, Arunachal Pradesh, Chhattisgarh, Karnataka, Maharashtra, and Tamil Nadu and contain important critical minerals like Tungsten, Vanadium, Graphite, Glauconite, Cobalt, and Nickel.

Addressing a press conference on the occasion, the Union Minister announced that the Mines Ministry has planned to launch the first tranche of auctions for offshore mineral blocks within the first 100 days of the formation of the new government.

Winners of the First Tranche of Critical Mineral Blocks Auction Announced

During the event, successful bidders for the six blocks put up during the 1st tranche of critical mineral mine auctions were also announced. Agrasen Sponge Private Limited secured two Graphite and Manganese Ore blocks in Odisha, Kundan Gold Mines Private Limited obtained a Graphite mine in Odisha, Dalmia Bharat Refractories Limited won a Graphite mine in Tamil Nadu, Sagar Stone Industries acquired a Phosphorite mine in Uttar Pradesh, and Maiki South Mining Private Limited bagged a Lithium and REE Block in Chhattisgarh.

Reddy Hands Over Certificates to 2 New Private Exploration Agencies

The Union Minister of Coal and Mines also handed over certificates to two newly Notified Private Exploration Agencies (NPEAs) during the program. This aligns with the aim to increase the pace of exploration in the country and to bring advanced technology to mineral exploration. The MMDR Act, 1957 was amended in 2021 to allow the notification of private exploration agencies (PEAs) to undertake exploration operations without a prospecting license. With the notification of these two private agencies, the total number of NPEAs has increased to 22. To date, 31 projects for different commodities have been taken up by the NPEAs from the NMET fund, amounting to approximately Rs 35.23 crore.

Recognizing the paramount importance of safety, economy, speed, and efficiency in extracting mineral resources and converting them into viable economic alloys and metals, the Ministry of Mines has been funding research and development projects (R&D projects) of many research institutions in the mining and metallurgy sector since 1978. The Union Minister handed over sanction letters of grant funds to 24 R&D institutes and 10 start-ups, totaling Rs 12.37 crore and Rs 11.26 crore, respectively.

Further, Reddy also announced a scheme for partial reimbursement of exploration expenses for Exploration Licence holders. Under the scheme, exploration expenditure of up to 50 percent of the cost, subject to an upper limit of Rs 20 crore, will be reimbursed. The provision for an exploration license was introduced through an amendment to the MMDR Act in 2023. A total of 20 blocks for Exploration Licences were handed over to various states including Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Telangana, Uttar Pradesh, and the Union Territories of Jammu & Kashmir and Ladakh. The state governments of Karnataka and Rajasthan are the first to notify the auction of Exploration Licenses. Currently, auctions for nine exploration licenses are notified by various states. The scheme for partial reimbursement of exploration expenditures will encourage junior mining companies to participate in auctions for exploration licenses and will help build a strong exploration ecosystem in the country.