India gears up for critical mineral auctions amidst global interest

10 Oct 2023 CW Team

India's mining regulations underwent a significant change in July, allowing private miners to explore critical minerals such as lithium, aiming to bolster exploration efforts. These reforms are particularly vital for auctioning lithium blocks recently discovered in Jammu and Kashmir and Karnataka. State-run enterprises have actively sought global mineral resources, while energy giants like Coal India and NTPC are strategically planning their entry into the mining sector to access these essential materials. India's commitment to securing critical mineral assets is further demonstrated by the establishment of Khanij Bidesh India, a joint venture involving three government-owned companies. This venture primarily focuses on regions like Australia and South America.

In September, reports from Reuters, citing sources, indicated that the auction for Jammu and Kashmir's lithium reserves would take place in the coming weeks. India's search for lithium, a vital component in electric vehicle batteries, led to the discovery of its first lithium deposits in Jammu and Kashmir in February, estimated at 5.9 million tonnes. Although official comments from the mines ministry were lacking, a government official mentioned overseas miners expressing interest in the upcoming auction.

Additionally, KABIL (Khanij Bidesh India), a state-owned joint venture, was in the final stages of securing lithium blocks in Argentina. Discussions with the Chilean government were also underway, albeit in early stages, to secure lithium blocks, as per sources cited by Reuters.

India, a major greenhouse gas emitter, has been actively engaging in international agreements to secure key minerals in resource-rich countries like Australia, Argentina, and Chile, reflecting its commitment to addressing the nation's mineral needs.

The Indian government is set to initiate the auction process for crucial mineral mines within the next few weeks. Earlier in August, plans were revealed regarding the auction of approximately 100 critical mineral blocks in India. Mines Secretary Vivek Bharadwaj disclosed that the identified blocks encompass minerals like nickel, lithium, cobalt, platinum, and rare earths, all set to be auctioned. Bharadwaj stated that the legal framework is in place, and the tender seeking bids are expected to be released by December, with auctions slated to commence three months later. India's mining regulations underwent a significant change in July, allowing private miners to explore critical minerals such as lithium, aiming to bolster exploration efforts. These reforms are particularly vital for auctioning lithium blocks recently discovered in Jammu and Kashmir and Karnataka. State-run enterprises have actively sought global mineral resources, while energy giants like Coal India and NTPC are strategically planning their entry into the mining sector to access these essential materials. India's commitment to securing critical mineral assets is further demonstrated by the establishment of Khanij Bidesh India, a joint venture involving three government-owned companies. This venture primarily focuses on regions like Australia and South America. In September, reports from Reuters, citing sources, indicated that the auction for Jammu and Kashmir's lithium reserves would take place in the coming weeks. India's search for lithium, a vital component in electric vehicle batteries, led to the discovery of its first lithium deposits in Jammu and Kashmir in February, estimated at 5.9 million tonnes. Although official comments from the mines ministry were lacking, a government official mentioned overseas miners expressing interest in the upcoming auction. Additionally, KABIL (Khanij Bidesh India), a state-owned joint venture, was in the final stages of securing lithium blocks in Argentina. Discussions with the Chilean government were also underway, albeit in early stages, to secure lithium blocks, as per sources cited by Reuters. India, a major greenhouse gas emitter, has been actively engaging in international agreements to secure key minerals in resource-rich countries like Australia, Argentina, and Chile, reflecting its commitment to addressing the nation's mineral needs.