Mines Ministry to Launch Exploration License Auction

28 Feb 2025 CW Team

The Ministry of Mines will launch the first tranche of the Exploration License auction in March 2025, Union Minister of Coal and Mines G Kishan Reddy announced in New Delhi. This follows the 2023 amendment to the MMDR Act, enabling the grant of exploration licenses for critical and deep-seated minerals through auction. Assam, Jammu & Kashmir, and Kerala will soon join India’s mineral auction regime, expanding the country’s mineral map to 17 states. The Geological Survey of India (GSI) has undertaken 450 exploration projects for the 2025-26 field season, including 227 focused on critical minerals. Advanced technologies like heliborne geophysical surveys, AI/ML tools, and drones are being deployed for faster data acquisition and mineral discovery. Mineral Exploration Corporation Limited (MECL) reported a 35% increase in exploratory drilling and submitted 33 geological reports in 2024. Meanwhile, the National Mineral Exploration Trust (NMET) approved 146 exploration projects worth Rs 7.12 billion over the past year, introducing innovative funding schemes to boost private sector participation. The sector is also witnessing enhanced private involvement, with 28 Notified Private Exploration Agencies (NPEAs) registered by 2024. Policy reforms have relaxed guidelines for exploration near border areas, streamlining the process within 20 km of the border in coordination with the Ministry of Defence. To strengthen data-driven decision-making, GSI is establishing an AI-enabled Data Processing Centre in Bengaluru. The Ministry of Mines also hosted the Mineral Exploration Hackathon in July 2024, promoting emerging technologies for geophysical data analysis. A dedicated Mining Tenement System (MTS) launched modules for real-time price data and mine closure plans in January 2024. The National Critical Mineral Mission (NCMM) was approved with a Rs 163 billion budget and an expected Rs 180 billion investment, focusing on domestic production, recycling, overseas acquisitions, and R&D. A new Tailings Policy is being introduced to recover minerals like Gallium, Tellurium, and Selenium from mining waste. Since 2024, 335 mineral blocks have been auctioned, with 106 successfully awarded. Telangana, Bihar, and Arunachal Pradesh conducted their first-ever auctions, with Assam, Jammu & Kashmir, and Kerala set to follow. A dedicated Project Management Unit (PMU) has been established to ensure faster operationalisation of auctioned mines, supported by professionals in Delhi and state-level teams. The National Mining Ministers’ Conference held in Bhubaneswar in January 2025 focused on state-level performance and best practices. Additionally, the Geological Survey of India will commemorate its 175th anniversary from March 2025 to March 2026 with seminars, outreach programs, and cultural events. These initiatives reflect the Ministry’s commitment to strengthening India’s mining ecosystem through innovation, policy reforms, and industry collaboration, positioning the country as a global leader in mineral exploration and production. (PIB)

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