First offshore mineral auctions: Seven poly-metallic nodules and three lime mud blocks identified, says G Kishan Reddy

Of the ten offshore mineral blocks due for auction in India under the first tranche, seven will be poly-metallic nodules and crusts located in the Andaman Sea, and three are blocks of lime mud located off the Gujarat coast, said G Kishan Reddy, Union Minister of Mines.

According to him, the mineral blocks contain critical minerals like cobalt and nickel, which are key to manufacturing low-carbon technologies that generate, store, and transmit clean energy.

These ten blocks are located in the country’s Exclusive Economic Zone (EEZ). Composite licences - for determination of mineral resource quantity, exploration and commercial production & off-take - will be granted through these auctions.

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“The auction of the first tranche of offshore blocks under the Offshore Areas Mineral (Development and Regulation) Act, 2002 will expand our capabilities and opportunities tremendously. Tapping into offshore mineral resources, particularly critical minerals like cobalt and nickel, will support industries like clean energy and steel manufacturing,” Reddy said.

“Seven blocks of poly-metallic nodules & crusts are located in Andaman Sea, 3 blocks of lime-mud are located off the Gujarat coast,” the Minister said.

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Union FM Nirmala Sitharaman mentioned during her Budget speech that India was readying for its first-ever offshore mineral auctions.

The Budget has also proposed enhanced allocations for the Geological Survey of India (GSI), the Indian Bureau of Mines (IBM), and the National Mineral Exploration Trust (NMET) to bolster exploration activities, promote sustainable mining practices, and support comprehensive exploration projects.

“ The Rs. 1,300 crore allocation for GSI will improve geoscience data collection and strategic planning, while the Rs. 135 crore (allocation) for IBM will enhance regulatory efficiency and environmental protection,” Reddy said.

According to him, the ₹400 crore allocation for NMET will accelerate mineral exploration, potentially leading to the discovery of new resources, and encourage startups and MSMEs in the sector.

Also proposed is the waiver of customs duty on 25 critical minerals and the elimination of customs duty on blister copper.

The elimination of import duties on 25 critical minerals, with reductions for two others, will reduce costs for industries reliant on these minerals, attract investments in processing and refining, and support the growth of downstream industries, Reddy said.

It will also shield the country from elevated levels of import reliance and supply risks owing to global geo-political turbulence.

 Additionally, the zero import duty on blister copper will stabilise the supply chain for copper refiners, crucial for industries such as electronics and construction, and enhance the global competitiveness of Indian copper products.

“The Budgetary proposals and allocations reflect the Prime Minister Narendra Modi’s of an Atmanirbhar Bharat and will propel India into becoming a $5 trillion economy,” the Minister said.

According to Reddy, the proposed launch of the National Critical Minerals Mission (NCCM) will address the entire supply chain of critical minerals, “from domestic production to recycling including acquisition of critical mineral assets abroad”.

It will also address issues of trade and market access, scientific research and technology development in various stages of the critical minerals value chain, building expertise and a skilled workforce in this domain, and recycling critical minerals.

“The move will incentivise the Indian industry to develop recycling capacity in the country for the separation and production of critical minerals from secondary sources through recycling,” he said.