The Ministry of Mines, Government of India, is set to launch the maiden tranche of auctions for mineral blocks located in the offshore areas of the country on November 28, 2024. This historic initiative marks India’s foray into harnessing undersea mineral resources within its maritime zones, encompassing the territorial waters, continental shelf, exclusive economic zone (EEZ), and other designated offshore areas.
India’s EEZ, spanning over 2 million square kilometres, harbours significant untapped mineral resources critical to the nation’s strategic and economic security. As global industries pivot toward high-demand minerals such as cobalt, nickel, rare earth elements (REE), and polymetallic nodules for cutting-edge technologies and green energy solutions, this auction represents a decisive step to diversify India’s mineral sources, reduce reliance on imports, and stabilize supply chains.
In a significant move, the Parliament amended the Offshore Areas Mineral (Development and Regulation) Act, 2002, in August 2023, introducing auctions as the mandatory method for allocating offshore mineral blocks. This regulatory reform facilitates streamlined production leases and composite licenses, paving the way for efficient resource exploration and extraction.
The inaugural tranche comprises 13 strategically selected blocks in the Arabian Sea and the Andaman Sea, featuring a rich mix of construction sand, limemud, and polymetallic nodules. These resources are vital for infrastructure development, high-tech manufacturing, and advancing the green energy transition.
Union Ministers G. Kishan Reddy and Satish Chandra Dubey will officiate the launch of this groundbreaking initiative. The Ministry of Mines envisions this development as a transformative chapter in India’s mineral exploration journey, unlocking immense economic and strategic opportunities. By fostering private sector participation, deploying advanced technologies, and streamlining regulations, the initiative reinforces the government’s commitment to sustainable resource management and self-reliance.
India’s bold entry into undersea mineral exploration is poised to strengthen its industrial and green energy sectors while establishing the country as a global leader in critical mineral resources.
