India Launches First Offshore Mineral Auction: 13 Mines Up for Sale
India has officially launched its first offshore mineral auction, offering 13 key mineral blocks for sale. This offshore mining auction, held on Thursday, represents a major step in securing critical minerals essential for India’s infrastructure development, high-tech manufacturing, and the green energy transition.
What is on offer in the Offshore Mineral Auction?
The offshore mineral auction covers various vital resources such as:
Three lime mud mines
Three construction sand mines
Seven polymetallic nodules and crusts
The offshore mineral blocks are located in territorial waters, continental shelf, and exclusive economic zone (EEZ) and other maritime zones of India. The move is supposed to push forward India's exploration of sea minerals, crucial for Industrial and technological development.
The Launch of India's Offshore Mineral Auction Coincides with the Growing Demand for Critical Minerals.
Critical minerals include minerals such as cobalt, nickel, and rare earth elements that are crucial in various applications related to renewable energy technologies, electric vehicle manufacturing, and green energy transition. These minerals have attained prime importance with the emergence of sustainable development across the globe.
Demand for lithium, in particular, is projected to surge eightfold. On the other side, India will also not lag behind as it gears up to roll out the Critical Minerals Mission that is meant to focus on developing India's mineral prospecting prowess apart from ensuring supplies in the future.
Spearheading Research and Development in Offshore Mining
R&D is critical to harnessing India's offshore mining resources to the fullest. Mines Secretary V L Kantha Rao said forming strategic partnerships was necessary to efficiently carry out mineral exploration. The government intends to conduct roadshows both within India and internationally to attract international investors in India's offshore mining sector.
Legal and Regulatory Framework for Offshore Mineral Auction
India has established a strong legal framework to support the auction of offshore mineral blocks. In August 2023, the Indian Parliament amended the Offshore Areas Mineral (Development and Regulation) Act, 2002, to make auction the exclusive method for allocating offshore mineral blocks. This will facilitate seamless execution of the grant of production leases and composite licenses for offshore mineral exploration and extraction.
Strengthening India's Position in the Global Mineral Market
As the world shifts to technologies dependent on critical minerals, India's venture into offshore mineral exploration is well thought out. Through harnessing the rich undersea mineral resources of the country, India is looking forward to decreasing its dependence on mineral imports, stabilizing its supply chains, and securing a significant position in the global mineral market.
This is just the beginning of the offshore mineral auction. With the demand for critical minerals set to soar, India is positioning itself to become a leader in the global mineral industry and help drive the future of sustainable technologies.
The offshore mining auction is a key moment in India's march toward its mineral self-sufficiency. This will give India secure access to the raw materials it needs, positioning the country to take on greater prominence in the global value chain, enabling green technologies, and securing its place as the standard-bearer for critical mineral exploration.
Offshore mineral auction; offshore mining auction; critical minerals include mineral blocks of cobalt, nickel, and rare earth elements used in renewable energy technologies to facilitate the green energy transition. Lithium demand is expected to grow as supply from offshore mining resources opens up. Strategic partnerships: Production Leases and Composite Licenses.