Centre Cancels Auction for 13 Mineral Blocks Amid Weak Response

01 Apr 2024 CW Team

The Centre's bid to expedite the acquisition of critical mineral reserves faced a setback as it announced the cancellation of auction proceedings for 13 out of the 20 blocks initially offered. The decision, prompted by a lackluster response from bidders, particularly affects mineral-rich states like Bihar, Jharkhand, Odisha, Tamil Nadu, Uttar Pradesh, and Jammu and Kashmir (J&K).

These blocks encompass a variety of crucial minerals such as glauconite, nickel, chromium, platinum group elements (PGE), potash, copper, molybdenum ore, graphite, and lithium, among others.

Out of the 13 abandoned mines, two failed to attract any bids at all, both located in Tamil Nadu and holding molybdenum reserves. However, the government remains undeterred, as seven of the canceled blocks are slated for rebidding under a fresh round of auctions initiated earlier this month.

This development underscores the significance of the government's push to secure critical minerals. In June 2023, the administration identified 30 minerals deemed critical for the country's strategic and industrial needs, including lithium, graphite, molybdenum, and phosphorous, among others. The ongoing auction process aims to bolster domestic reserves of these vital resources, crucial for various industries ranging from electronics to defense.

Despite the setback, the government remains committed to its objective of strengthening the nation's mineral security. With a second round of auctions underway, efforts are underway to ensure the efficient utilization and exploration of India's vast mineral wealth in alignment with its strategic goals and economic development agenda.

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