Posted on 03 Dec 2024
The Indian government has launched the first auction of mineral blocks in the country’s offshore areas, in a bid to become a “leading player” in the global critical minerals market.
Kallanish understands the first tranche of the auction featured 13 mineral blocks across the Arabian Sea and Andaman Sea. Of this, seven blocks were of polymetallic nodules and crusts containing critical minerals such as cobalt, manganese, and nickel; and three blocks each of construction sand and lime mud. They are located off the coast of the Great Nicobar Islands (Andaman Sea), off Kerala (Arabian Sea), and off Gujarat (Arabian Sea), respectively.
India’s Exclusive Economic Zone (EEZ), spanning over 2 million square kilometres, holds significant mineral resources needed for the green energy transition, as well as for infrastructure development and high-tech manufacturing. By exploring and developing its undersea mineral resources, the nation aims to reduce its import dependence and stabilise its supply chains, according to a statement by the Press Information Bureau (PIB).
G Kishan Reddy, minister for mines called the auction a “historic step” in “exploring and harnessing undersea mineral resources within the country’s maritime zones.”
“As India embarks on this new frontier of undersea mineral exploration, it will strengthen its industrial and green energy sectors while establishing itself as a global leader in critical minerals,” the minister adds.
He expects the mineral blocks to play a key role in securing critical resources for sectors such as infrastructure, electric vehicles, and renewable energy, furthering India’s journey towards “self-reliance” and the energy transition.
Typically, offshore construction sand is used for making concrete, while lime mud is used in the cement, steel, and construction sectors. Polymetallic nodules, on the other hand, host critical minerals needed for the energy transition.
Bidders have until the end of next February to submit their bids.
Deep-sea mining is highly contested, with opponents warning of detrimental impacts on the environment. The industry’s potential economic benefits have also been questioned. Conversely, proponents argue it can help meet the increasing demand for critical minerals as the world transitions to clean energy.
Source:Kallanish
