Government to initiate auction process for vital mineral blocks this year
COAL & MINING

Government to initiate auction process for vital mineral blocks this year

India is getting ready to initiate the auction process for around 100 critical mineral blocks within the next four months. This move is a part of their strategy to secure local sources of the necessary raw materials for supporting the transition towards green energy.

According to Vivek Bharadwaj, Mines Secretary, the mineral blocks encompass a range of minerals such as nickel, lithium, cobalt, platinum, and also rare earths.

Bharadwaj stated, "The legal framework has been established, and the blocks have been identified." He also mentioned that the tender for bids is anticipated to be released by December, and the auctions could possibly commence three months later.

India is striving to guarantee the security of critical minerals to bolster its objective of positioning the country as a prominent centre for manufacturing batteries and electric vehicles. This endeavour aligns with their aspiration to achieve a net-zero target. Currently, India does not domestically extract crucial materials like lithium, cobalt, and nickel.

In order to encourage participation from both global and local mining entities in this process, the government is devising a plan to reimburse half of the exploration costs, as shared by Bharadwaj. He indicated that it might take companies at least three years to operationalise the mines.

In a recent development, India revised its mining regulations, granting permission to private mining companies to explore certain critical minerals like lithium. This alteration will play a pivotal role in the auction of lithium blocks that have been recently identified in the regions of Jammu and Kashmir, as well as Karnataka.

Several state-owned enterprises have been actively seeking such resources on a global scale. Notable energy companies like Coal India and NTPC are strategising their approaches for mineral extraction. Additionally, Khanij Bidesh India, a collaborative initiative involving three government-owned corporations, has been established with the purpose of acquiring critical mineral assets abroad, particularly in Australia and South America.

Also read: 
SECL signs agreement for maiden open-cast mining
Power Mech Projects wins dual contracts for O&M, Sand Mining Ventures


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India is getting ready to initiate the auction process for around 100 critical mineral blocks within the next four months. This move is a part of their strategy to secure local sources of the necessary raw materials for supporting the transition towards green energy. According to Vivek Bharadwaj, Mines Secretary, the mineral blocks encompass a range of minerals such as nickel, lithium, cobalt, platinum, and also rare earths. Bharadwaj stated, The legal framework has been established, and the blocks have been identified. He also mentioned that the tender for bids is anticipated to be released by December, and the auctions could possibly commence three months later. India is striving to guarantee the security of critical minerals to bolster its objective of positioning the country as a prominent centre for manufacturing batteries and electric vehicles. This endeavour aligns with their aspiration to achieve a net-zero target. Currently, India does not domestically extract crucial materials like lithium, cobalt, and nickel. In order to encourage participation from both global and local mining entities in this process, the government is devising a plan to reimburse half of the exploration costs, as shared by Bharadwaj. He indicated that it might take companies at least three years to operationalise the mines. In a recent development, India revised its mining regulations, granting permission to private mining companies to explore certain critical minerals like lithium. This alteration will play a pivotal role in the auction of lithium blocks that have been recently identified in the regions of Jammu and Kashmir, as well as Karnataka. Several state-owned enterprises have been actively seeking such resources on a global scale. Notable energy companies like Coal India and NTPC are strategising their approaches for mineral extraction. Additionally, Khanij Bidesh India, a collaborative initiative involving three government-owned corporations, has been established with the purpose of acquiring critical mineral assets abroad, particularly in Australia and South America. Also read:  SECL signs agreement for maiden open-cast mining Power Mech Projects wins dual contracts for O&M, Sand Mining Ventures

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