‘Blocks identified for first offshore mineral auctions by govt.’

Last Updated26/07/2024

The introduction of the National Critical Minerals Mission is set to address the entire supply chain of critical minerals, from domestic production to recycling, in line with the vision of an Atmanirbhar Bharat
Of the 10 offshore mineral blocks due for auction in the first tranche, seven will be poly-metallic nodules and crusts in the Andaman Sea, and three lime mud blocks off the Gujarat coast.
The blocks contain critical minerals like cobalt and nickel, he said, key to manufacturing low-carbon tech that generate, store, and transmit clean energy.

The 10 blocks are located in India’s Exclusive Economic Zone (EEZ). Composite licenses for determination of mineral resource quantity, exploration and commercial production and off-take will be granted through the auctions.
“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 cobalt and nickel, will support clean energy and steel manufacturing”.
India was readying for its first-ever offshore mineral auctions, FM Nirmala Sitharaman said in her Budget speech. The Budget proposed enhanced allocations for the Geological Survey of India (GSI), Indian Bureau of Mines (IBM) and National Mineral Exploration Trust (NMET) to boost exploration, sustainable mining practices, and comprehensive exploration projects.

“The ₹1,300-crore allocation for GSI will improve geoscience data collection and strategic planning, while ₹135-crore for IBM will enhance regulatory efficiency and environmental protection,”he said.
The ₹400-crore allocation for NMET will accelerate mineral exploration, potentially leading to the discovery of new resources and encourage start-ups and MSMEs. Also proposed is the waiver of Customs Duty on 25 critical minerals, and blister copper.

The elimination of import duties on 25 critical minerals, alongside reductions for two others, will reduce costs for the industry, attract investments in processing and refining and support the growth of downstream industries.
It will also shield India from import reliance and supply risks owing to global geo-political turbulence. The zero import duty on blister copper will stabilise the supply chain for copper refiners, crucial for industries such as electronics and construction.