India Launches First Exploration Licence Auctions
COAL & MINING

India Launches First Exploration Licence Auctions

The Ministry of Mines launched the first round of auctions under the exploration licence (EL) regime on Thursday, five months after amending the rules to manage EL auctions following delays by state governments.

This initial tranche features 13 blocks spread across 10 states, containing deposits of critical minerals such as gold, copper, diamonds, zinc, rare earth elements (REE), vanadium, and zirconium – essential materials for sectors like electronics, renewable energy, defence, and aerospace.

Among the 13 auction blocks, Chhattisgarh (diamonds), Jharkhand (gold and copper), and Maharashtra (tantalum and zinc) each have two, while Andhra Pradesh (REEs), Arunachal Pradesh (zinc), Gujarat (vanadium), Karnataka (gold and copper), Madhya Pradesh (platinum-group elements), Rajasthan (REEs), and Uttar Pradesh (zirconium) have one each.

The focus on critical mineral exploration will provide investors with vital data on reserves, increasing interest and participation in future auctions. To date, only 24 critical mineral blocks have been auctioned, with several auctions annulled due to low investor interest.

To foster private exploration, the Mines and Minerals (Development and Regulation) Act was revised in August 2023 to introduce the EL regime, aiming to attract junior mining firms.

Under the EL regime, successful licence holders will explore the blocks, and if viable mineral reserves are found, the blocks will be auctioned for mining licences. The EL auctions will follow a reverse bidding process, with the block being awarded to the bidder offering the lowest share of the auction premium payable by the eventual mining licence holder.

To mitigate risks for private explorers, the National Mineral Exploration Trust (NMET) launched a reimbursement scheme in June 2024, covering up to 50% of eligible expenses, capped at Rs 20 crore, for activities like geophysical investigations and drilling.

The Mines Ministry took over the EL auctions in October last year after only six out of 14 state governments, to whom blocks were assigned, initiated the auction process.

The Ministry of Mines launched the first round of auctions under the exploration licence (EL) regime on Thursday, five months after amending the rules to manage EL auctions following delays by state governments. This initial tranche features 13 blocks spread across 10 states, containing deposits of critical minerals such as gold, copper, diamonds, zinc, rare earth elements (REE), vanadium, and zirconium – essential materials for sectors like electronics, renewable energy, defence, and aerospace. Among the 13 auction blocks, Chhattisgarh (diamonds), Jharkhand (gold and copper), and Maharashtra (tantalum and zinc) each have two, while Andhra Pradesh (REEs), Arunachal Pradesh (zinc), Gujarat (vanadium), Karnataka (gold and copper), Madhya Pradesh (platinum-group elements), Rajasthan (REEs), and Uttar Pradesh (zirconium) have one each. The focus on critical mineral exploration will provide investors with vital data on reserves, increasing interest and participation in future auctions. To date, only 24 critical mineral blocks have been auctioned, with several auctions annulled due to low investor interest. To foster private exploration, the Mines and Minerals (Development and Regulation) Act was revised in August 2023 to introduce the EL regime, aiming to attract junior mining firms. Under the EL regime, successful licence holders will explore the blocks, and if viable mineral reserves are found, the blocks will be auctioned for mining licences. The EL auctions will follow a reverse bidding process, with the block being awarded to the bidder offering the lowest share of the auction premium payable by the eventual mining licence holder. To mitigate risks for private explorers, the National Mineral Exploration Trust (NMET) launched a reimbursement scheme in June 2024, covering up to 50% of eligible expenses, capped at Rs 20 crore, for activities like geophysical investigations and drilling. The Mines Ministry took over the EL auctions in October last year after only six out of 14 state governments, to whom blocks were assigned, initiated the auction process.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Vedanta Metal Bazaar Expands to Global Markets

Vedanta Aluminium has expanded its digital e-commerce platform, Vedanta Metal Bazaar, to international markets, enabling overseas customers to order and purchase aluminium products online.The platform will now be available to buyers across Asia, Europe, Africa and the Americas, providing a digital gateway for export transactions with 24x7 access.In FY26, Vedanta Metal Bazaar processed transactions worth nearly $4.1 billion, or over Rs 380 billion, and fulfilled more than 23,000 orders. The platform is also used regularly by more than 550 MSMEs in India alongside large OEM customers.The export ..

Next Story
Infrastructure Urban

Ramky Infrastructure Q1 FY27 Revenue Rises 24.3%

Ramky Infrastructure Limited reported a 24.3% year-on-year increase in consolidated revenue from operations to Rs 471.2 crore for Q1 FY27, compared with Rs 3.79 billion in the corresponding quarter of FY26.Standalone revenue from operations rose 27.5% YoY to Rs 4.51 billion from Rs 3.54 billion, while total standalone income increased 35% to Rs 5.32 billion.Consolidated profit before tax stood at Rs 540.9 million during the quarter. The company highlighted a sharp sequential improvement compared with a pre-exceptional loss of Rs 190.1 million in Q4 FY26.Two of the three projects awarded during..

Next Story
Technology

LTTS Launches AgenticIQ AI Platform for Engineering

L&T Technology Services (LTTS) has launched AgenticIQ, an end-to-end agentic AI platform designed for engineering and manufacturing organisations.The platform is aimed at helping enterprises move beyond isolated AI pilots by enabling autonomous, multi-agent workflows across engineering, product development, manufacturing, industrial operations and customer experience.AgenticIQ is built on LTTS’ Engineering Intelligence portfolio and converts existing engineering capabilities into specialised, reusable AI agents. Its planning-first architecture is embedded into engineering and production ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement