India Unveils E-Auction for Critical Mineral Blocks and Exploration Licences
The Indian Ministry of Mines has officially launched the Ninth Tranche of e-auction for Critical and Strategic Mineral Blocks alongside the Third Tranche for Exploration Licences (EL). The ceremony was graced by Union Minister for Coal and Mines, Shri G. Kishan Reddy, and Chief Minister of Goa, Dr. Pramod Sawant, among other notable dignitaries. This initiative marks a significant step in enhancing India’s mineral security and fostering private sector participation in the exploration of vital minerals.
Details of the Ninth Tranche Auction
The latest auction features 20 critical and strategic mineral blocks available for bidding under the Mineral (Auction) Rules. To date, the government has conducted eight successful tranches, resulting in the auctioning of 64 out of 100 blocks, a commendable 64% success rate. These minerals play a crucial role in powering clean energy technologies, electric mobility, advanced manufacturing, and various strategic industries.
Breakdown of Auctioned Blocks
The blocks up for grabs include a wide range of critical minerals from multiple states:
- Andhra Pradesh: 1 block of Graphite
- Bihar: 1 block of Glauconite
- Chhattisgarh: 5 blocks covering Phosphorite-Limestone, Vanadium, Gallium, Titanium, Rare Earth Elements (REE), Bauxite, Aluminous Laterite, and Glauconite
- Madhya Pradesh: 2 blocks featuring Vanadium, Gallium, Titanium, Bauxite, and Aluminous Laterite
- Maharashtra: 2 blocks with Rare Earth Elements, Rare Metal, Vanadium, Gallium, Titanium, Bauxite, and Aluminous Laterite
- Rajasthan: 3 blocks of Potash and Halite, Tungsten
- Telangana: 3 blocks containing Titanium, Vanadium, Scandium, Gallium, and Aluminous Laterite
- West Bengal: 3 blocks of Graphite, Rare Earth Elements, Rare Metal
Exploration Licence Auction Launched
In tandem with the mineral auction, the Ministry has also inaugurated the Third Tranche of the Exploration Licence auction, facilitating private investment in 29 critical and deep-seated minerals outlined in the Seventh Schedule of the MMDR Act. Previous efforts in this area have seen 11 EL blocks successfully auctioned over the first two tranches.
Exploration Licence Details
The blocks available in this tranche for grant of Exploration Licences are as follows:
- Madhya Pradesh: 1 block of Copper
- Maharashtra: 1 block of Vanadium
- West Bengal: 1 block of Rare Earth Elements
- Rajasthan: 4 blocks involving Potash, Halite, and Rare Earth Elements
- Telangana: 3 blocks of Rare Earth Elements
- Gujarat: 1 block of Vanadium and associated mineralisation
Reforms to Optimize Auction Processes
Recent governmental reforms aim to improve auction outcomes, including updated Mineral (Auction) Third Amendment Rules, 2026. These changes have reduced the required number of Technically Qualified Bidders from three to two for Part D minerals, addressing potential barriers to successful bidding. Future prospects have been streamlined through automatic issuance of Letters of Intent via the Unified Mining Portal, enhancing investor confidence.
Timeline for Bids
The sale of Tender Documents for both auction processes has commenced as of November 5, 2026, and will remain open until January 1, 2027. Bidders must submit their Technical Bid and Initial Price Offer by January 7, 2027. Both types of auctions will employ transparent online systems, allowing for competitive participation.
With these initiatives, the Indian government is vigorously working to bolster the supply of critical minerals, encourage exploration and responsible mining practices, and foster a self-reliant mineral ecosystem in the country.
