India’s Mines Ministry on Thursday launched India’s first-ever tranche of 13 mineral blocks for auction in offshore areas.
This marks India’s entry into the exploration and development of undersea mineral resources within the exclusive economic zone.
The 13 blocks - where composite licences were granted, included three lime mud blocks, three for construction sand and seven for polymetallic nodules and crusts.
The blocks are located off the coast of Gujarat (West Coast of Arabian Sea), off Kerala (West Coast of Arabian Sea) and off Great Nicobar Island (Andaman Sea).
Offshore minerals are located deep within the earth’s crust and are difficult to extract compared to onshore minerals. India’s offshore mineral reserves include gold, diamond, copper, nickel, cobalt, copper, manganese, and rare earth elements.
Auctions will help increase the availability of these minerals in India and reduce dependence on imports.
“The offshore blocks auction will give a boost to India’s quest for self reliance in critical minerals where we are primarily import reliant,” G Kishan Reddy, Union Minister for Mines, said at the launch of the auctions.
The mineral blocks will be ready in the next two - three months, sources said.
According to Rajib Maitra, Partner, Deloitte India, the blocks focuses on critical minerals such as cobalt, nickel and rare earth elements (REE), “which are essential for manufacturing low-carbon technologies that generate, store and transmit clean energy.”
“The offshore auctions will help increase the domestic availability of these critical minerals and reduce dependence on imports,” he said.
In general, offshore construction sand is used for a variety of purposes including to make concrete; while lime mud finds usage in the cement, steel, and construction industry. Meanwhile, polymetallic nodules are mineral formations on the ocean floor that contain valuable metals, such as nickel, cobalt, and manganese. They are also known as manganese nodules or ferromanganese nodules.
“Offshore minerals are valuable towards securing India’s economic and strategic interests. Going forward, we will explore more blocks of critical and offshore minerals,” Minister Reddy said.
The Ministry will also be looking at overseas road shows for tie-ups and investments into processing of such offshore minerals. Roadshows are being looked at counties like Zimbabwe and some other African nations, sources told businessline.
The Ministry would also handhold industry including for tie-ups in processing of these offshore minerals.
Tech partnerships are being explored with countries Indonesia, Korea, Australia, among others.
In August 2023, the Parliament amended the Offshore Areas Mineral (Development and Regulation) Act, 2002, making auctions the mandatory mode for allocating mineral blocks in offshore areas. The amendment enabled the government to streamline the process of granting of production leases and composite licences for resource exploration and extraction.