The Ministry of Mines, Government of India, is set to embark on a historic journey by launching the first tranche of auctions for mineral blocks in the offshore areas of the country. Scheduled for 28th November 2024, this initiative represents a significant leap forward in the exploration and development of undersea mineral resources within India’s maritime zones.
India’s offshore areas, encompassing the territorial waters, continental shelf, Exclusive Economic Zone (EEZ), and other maritime zones, span over 2 million square kilometres. These areas are believed to hold vast reserves of minerals crucial to India’s economic and strategic interests. The initiative aims to harness these resources to reduce import dependency and stabilise critical supply chains, especially for high-demand minerals such as cobalt, nickel, rare earth elements (REE), and polymetallic nodules, which are essential for high-tech manufacturing and the green energy transition.
In a landmark move in August 2023, the Indian Parliament amended the Offshore Areas Mineral (Development and Regulation) Act, 2002. This amendment introduced auctions as the mandatory mechanism for allocating mineral blocks in offshore areas, facilitating a transparent and streamlined process for granting production leases and composite licenses for exploration and extraction activities.
The first tranche of the auction comprises 13 strategically selected mineral blocks located across the Arabian Sea and Andaman Sea. These blocks contain resources such as construction sand, limemud, and polymetallic nodules—minerals pivotal for infrastructure development, high-tech industries, and sustainable energy solutions.
Union Minister of Coal and Mines, G Kishan Reddy, alongside Union Minister of State for Coal and Mines, Satish Chandra Dubey, will preside over the official launch event of this groundbreaking initiative.
The Ministry of Mines envisions this initiative as a transformative step in India’s mineral exploration journey. By fostering private sector participation, integrating advanced exploration technologies, and streamlining regulatory frameworks, the government aims to unlock the vast economic and strategic potential of undersea resources. This move aligns with India’s commitment to sustainable resource utilisation and achieving self-reliance in critical mineral sectors.
As the global demand for critical minerals surges, this initiative positions India as a key player in undersea mineral exploration. The development of offshore resources is expected to bolster India’s industrial capabilities, support the green energy transition, and enhance its standing as a global leader in the critical minerals sector.
