Union Coal and Mines Minister G. Kishan Reddy will launch the seventh tranche of auction of critical and strategic mineral blocks today, the Ministry of Mines has announced. The seventh tranche will offer 19 blocks across several States under Mining Lease and Composite Licence and the blocks comprise a diverse basket of minerals essential for sectors such as clean energy, advanced technologies, fertilisers and strategic industries. The ministry said the exercise forms part of a broader effort to secure domestic supplies and support industrial and energy transition objectives.

The auction will be conducted online through a transparent two-stage ascending forward auction process, and the successful bidder will be selected on the basis of the highest per cent of the value of mineral dispatched that is quoted. The ministry described the mechanism as intended to align producer incentives with actual mineral off-take and to ensure market linked realisation for public resources. Officials noted that the digital auction platform will facilitate participation by a wide range of domestic and international firms subject to eligibility criteria.

As of now, the ministry has launched six tranches of auctions and has already auctioned 46 critical and strategic mineral blocks, the ministry added. The prior tranches attracted competitive bidding and contributed to the allocation of resources for projects in renewables, defence supply chains and agricultural inputs. The present tranche is expected to draw interest from companies seeking secured access to minerals required for manufacturing and energy projects.

Participants will be required to comply with statutory conditions of Mining Lease and Composite Licence, including environmental and social safeguards, and to follow the timelines set out in the tender documents. The ministry indicated that transparent allocation through auctions is intended to promote responsible mining, attract investment and support long term strategic planning for mineral development. The auction outcome will be announced after completion of the bidding process and due verification of the highest responsive offers.