India to Launch First Mineral Auction in 2025
The Ministry of Mines is set to initiate the first tranche auction of Exploration License blocks in March 2025, as announced by Union Minister of Coal and Mines, Shri G Kishan Reddy, during a press conference in New Delhi. This significant move follows an amendment to the MMDR Act in 2023, allowing for the auction of Exploration Licenses for critical and deep-seated minerals. The minister also revealed that states like Assam, Jammu & Kashmir, and Kerala will soon join the mineral auction framework, expanding India’s mineral auction landscape to 17 states.
Expanding Exploration Activities
The Geological Survey of India (GSI) has ramped up its exploration efforts, undertaking 438 projects in the 2024-25 field season, which includes 195 critical mineral projects. This marks a notable increase from the previous season, where 360 projects were conducted, including 127 focused on critical minerals. To enhance efficiency and speed in mineral discovery, GSI has incorporated advanced technologies such as heliborne geophysical surveys, artificial intelligence, machine learning tools, and drone technologies. Looking ahead, GSI plans to initiate 450 exploration projects in the 2025-26 season, with 227 dedicated to critical minerals.
Meanwhile, the Mineral Exploration Corporation Limited (MECL) has reported a 35% increase in exploratory drilling, significantly boosting its operational efficiency. In 2024, MECL also delivered 33 geological reports, contributing to the National Mineral Inventory. Additionally, the National Mineral Exploration Trust (NMET) approved 146 exploration and procurement projects worth ₹712 crore from January 1, 2024, to January 31, 2025. Innovative schemes have been introduced to support mineral exploration, including partial reimbursement of exploration expenses and funding for private exploration agencies.
Enhancing Private Sector Participation & Policy Reforms
In a bid to encourage private sector involvement in mineral exploration, the Ministry of Mines has added 12 new Notified Private Exploration Agencies (NPEAs) in 2024, bringing the total to 28. This expansion aims to foster a more competitive environment in the mining sector. Furthermore, the ministry has relaxed guidelines for exploration in border areas, removing restrictions beyond 20 kilometers from the border and streamlining processes within that distance in coordination with the Ministry of Defence.
These reforms are part of a broader strategy to enhance the mining ecosystem in India, making it more accessible and efficient for private players. By simplifying regulations and expanding the number of authorized exploration agencies, the government aims to stimulate investment and innovation in the sector.
Strategic Initiatives for Critical Minerals
The National Critical Mineral Mission (NCMM) has been approved with a budget of ₹16,300 crore, anticipating an investment of ₹18,000 crore. This mission focuses on enhancing domestic production, recycling, overseas acquisitions, and research and development in critical minerals. Additionally, a new Tailings Policy is set to be introduced, aimed at recovering critical minerals such as Gallium, Tellurium, and Selenium from overburden dumps and tailings, ensuring optimal resource utilization.
These strategic initiatives underscore the government’s commitment to securing critical mineral resources, which are essential for various industries, including technology and renewable energy. By investing in R&D and sustainable practices, India aims to position itself as a leader in the global mineral market.
Expanding the Mining Sector Across States
Since 2024, the government has auctioned 335 mineral blocks, with 106 successfully sold. Notably, first-time auctions were conducted in Telangana, Bihar, and Arunachal Pradesh, broadening India’s mineral auction landscape to 14 states. Assam has also announced blocks for auction, with Jammu & Kashmir and Kerala expected to join the initiative soon.
To facilitate the operationalization of auctioned mines, a dedicated Project Management Unit (PMU) has been established. This unit, comprising four professionals in Delhi and eight in various states, aims to expedite the execution of mineral blocks by monitoring progress, identifying bottlenecks, and coordinating among stakeholders. This structured approach is expected to enhance mineral production and streamline operations across the country.
The Ministry of Mines remains dedicated to fostering a robust and sustainable mining sector through continuous innovation, policy reforms, and collaborative engagement with industry stakeholders. These initiatives are poised to enhance India’s mineral security, stimulate economic growth, and solidify the country’s position as a global leader in mineral exploration and mining.
Observer Voice is the one stop site for National, International news, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.