Maiden critical minerals block results likely to be announced on Monday | News
Illustration: Binay Sinha
The Centre will announce the results of its maiden round of critical mineral auctions, initiated in November last year, on Monday.
The Ministry of Mines will also launch the fourth round of auctions of around 15 blocks on the same day, Business Standard has learnt.
Results for the seven mineral blocks include graphite, manganese, lithium, rare earth elements, nickel, chromium and phosphorite. These are from the states of Odisha, Tamil Nadu, Chhattisgarh, Gujarat, and Uttar Pradesh.
Union Mines Minister G Kishan Reddy will announce the results.
“The result will come on June 24. Along with the result, more than two dozen blocks of critical minerals will also be put on the bidding block,” a senior government official said.
Mining major Vedanta, Jindal Power, and state-owned NLC India are among the players, who participated in the first tranche of the auction of critical minerals.
In March, the Centre scrapped the auction process for 13 out of 20 blocks offered in the first round due to limited interest from potential investors. The deadline for selecting the remaining seven mineral blocks from the first round was also extended to July 8 from March 11.
The seven blocks to be awarded include the Akharkata Graphite Block, Babja Graphite and Manganese Block, and Biarpalli Graphite and Manganese Block in Odisha; the Iluppakudi Graphite Block in Tamil Nadu; the Katghora Lithium and REE Block in Chhattisgarh; the Kundol Nickel and Chromium Block in Gujarat; and the Pahadi Kalan-Gora Kalan Phosphorite Block in Uttar Pradesh.
The Centre has conducted auctions for 38 critical and strategic minerals. The initial tranche included 20 blocks, while the subsequent tranche had 18. The third round only had seven blocks from the 13 cancelled from the first round.
During the launch of the auction process on November 29, Pralhad Joshi, former minister of coal and the current new and renewable energy minister, had expressed confidence that India would achieve self-sufficiency in critical minerals. He estimated the value of these blocks at Rs 45,000 crore.
However, sector executives had then expressed scepticism regarding India’s ability to achieve self-sufficiency in critical minerals. This is due to lack of clarity on the potential data of the reserves.
According to the United Nations Framework for Classification of Resources, the exploration of minerals is divided into four stages — G4 (reconnaissance), G3 (prospecting), G2 (general exploration), and G1 (detailed exploration).
In addition to the lack of clarity on the reserves, the high cost of investment in exploration has deterred several potential investors from participating in the bidding process.
Most of these minerals are imported from China, which is the leader in global production and supply. With investors failing to bid, experts suggest India could continue to rely on China for securing its raw materials.
India’s dependence on imports of critical minerals such as lithium, cobalt, and nickel poses a significant risk to its green technology transition and energy security, as highlighted in a recent report by ICRA.
According to the report, China dominates the processing and refining of critical minerals, controlling between 65 per cent and 100 per cent of the global capacity to make battery-grade lithium, cobalt, manganese, and graphite.
“This reliance poses a significant risk to the country’s energy security as it strives to meet its net-zero commitments by 2070,” the report said.
> Minerals include graphite, manganese, lithium, rare earth elements, nickel, chromium, phosphorite
> Bidders include Vedanta, Jindal Power, NLC India
> Blocks located in Odisha, Tamil Nadu, Chhattisgarh, Gujarat, Uttar Pradesh
> Fourth round of auctions for over two dozen blocks to be launched
First Published: Jun 21 2024 | 6:35 PM IST
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