The Ministry of Mines on Thursday launched the first-ever auction of mineral blocks in India’s offshore areas, marking a significant milestone in the country’s mineral exploration efforts. This initiative will open up the nation’s territorial waters, continental shelf, exclusive economic zone (EEZ), and other maritime zones for resource development, according to the ministry.
India’s EEZ, covering over 2 million square kilometers, is believed to hold vast untapped mineral reserves, including critical materials such as cobalt, nickel, rare earth elements (REE), and polymetallic nodules—minerals essential for high-tech manufacturing, infrastructure, and the global green energy transition.
The mines ministry emphasized the strategic importance of offshore minerals, stating, “Offshore minerals are vital to securing India’s economic and strategic interests.” The growing global demand for minerals like cobalt and nickel makes it crucial for India to diversify its mineral sources, reduce reliance on imports, and strengthen domestic supply chains.
In August 2023, the Indian Parliament amended the Offshore Areas Mineral (Development and Regulation) Act of 2002, making auctions the mandatory method for allocating mineral blocks in offshore areas. This amendment is expected to streamline the process for granting production leases and composite licenses, simplifying the exploration and extraction of resources.
The first tranche of the auction will feature 13 mineral blocks strategically selected from the Arabian Sea and Andaman Sea. These include deposits of construction sand, lime mud, and polymetallic nodules, which are critical for infrastructure development and advanced manufacturing.
Union Minister of Coal and Mines, G. Kishan Reddy, alongside Union Minister of State for Coal and Mines, Satish Chandra Dubey, will officially launch the auction on Thursday. The initiative marks a significant step toward reducing India’s dependence on mineral imports and promoting sustainable resource development.
The move is also part of India’s broader efforts to enhance its technological capabilities, foster economic resilience, and secure its position as a global player in the offshore mining sector.