Around 50 per cent of the critical mineral blocks (around 20 of the 38) are near finalisation. And Ola Electric and Vedanta being among the two probable front runners for lithium and PGE (platinum group of elements) blocks, Mines Ministry officials aware of the discussions, told businessline.

According to the official, the “strike rate” - bids received as against mines put up for auction – has ranged from 30-40 per cent across three tranches of auction.

From the first tranche of 20 blocks, seven progressed to the second with finalised bidders, while another seven moved to the third tranche. The second tranche of 18 blocks has around 7 to 8, are “nearing finalisation”.

“The average strike rate is around 30 per cent. And a 50 per cent will be seen as a major positive, considering these are new age minerals where the processing technology, for most, are still under-development in India,” the official said.

Fourth round of critical mineral auctions, covering 20-odd blocks, are expected either in June or July.

Fertiliser mineral blocks continue to be among the most popular ones, in terms of queries generated.

Response so far

Beginning November 2023, there have been three rounds of critical mineral auctions, results of which are awaited. This included minerals like lithium and REE (rare earth elements), nickel, copper, chromium, phosphorite, potash, glauconite, graphite, manganese and molybdenum.

In the first round, 20 blocks were put-up for auction. Of these seven critical mineral blocks received no bids or had less than three qualified bidders. These will be re-auctioned.. Two blocks of molybdenum, in Tamil Nadu, received no bids. Four others attracted fewer than three qualified bidders. A decision on a Gujarat block containing nickel and chromium awaits clearance approvals, that delayed the auction.

Another seven blocks, which were also part of the first tranche, received less than three bids, necessitating their inclusion in the third tranche auction ending in May.

Apart from the lithium block in Jammu and Kashmir, there were six other blocks across minerals like glauconite, graphite, nickel, platinum group elements, potash and titanium and these are located in Bihar, Jharkhand, Tamil Nadu, Uttar Pradesh, and Jammu and Kashmir.

“So if these mineral blocks continue to have less than three bidders in tranche 3, the highest of the two bidders will be considered as the winner,” the official explain.

The second tranche, included potash (extensively used in fertilisers), along with other graphite, glauconite, tungsten, vanadium, REE (rare earth elements), PGE, nickel, cobalt and phosphorite.

The November auctions received 56 bids in all, with Vedanta, Ola Electric, Dalmia Bharat, Shree Cement, NLC India, Coal India, being among the bidders.

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