India Auctions 21 Critical Mineral Blocks Valued at ₹83,000 Crore

India has auctioned 21 critical mineral blocks valued at ₹83,000 crore across nine states, with Maiki South, a Kolkata-registered mine development operator, winning the country's first-ever lithium block at Kathgora in Chhattisgarh.

Of the 21 blocks auctioned on Monday, 11 are new, while 10 are "second attempts" from previous tranches that received fewer than the mandatory three bidders. This auction is part of India's ongoing efforts to transition to clean energy, which began in November.

The new mineral blocks span six states—Arunachal Pradesh, Chhattisgarh, Jharkhand, Karnataka, Rajasthan, and Uttar Pradesh—and include minerals like graphite, glauconite, phosphorite, potash, nickel, platinum group elements, phosphate, and rare earth elements (REE). The "second attempt" blocks in Andhra Pradesh, Arunachal Pradesh, Chhattisgarh, Karnataka, Maharashtra, and Tamil Nadu cover minerals such as tungsten, vanadium, graphite, glauconite, cobalt, and nickel.

Union Minister for Mines, GK Reddy, emphasized the importance of swiftly operationalizing these blocks, with the auction process expected to conclude within 2-3 months. "These auctions are crucial for India's transition to green energy and reducing its import bill for minerals like lithium and copper," Reddy stated, adding that more critical mineral blocks will be identified and auctioned post-commercial viability assessment.

Maiki South Mining won the first-ever lithium block with an auction premium of 76.05%, obtaining a composite license to begin exploration before starting commercial mining. "Our initial reports show commercial viability," said a senior Mines Ministry official.

Additionally, preferred bidders for five other critical mineral blocks from the first tranche were announced. Sagar Stone Industries won the Uttar Pradesh phosphorite block with a reserve of 19.09 million tonnes (mt), quoting a 400% premium. Agrasen Sponge Private Ltd secured two graphite and manganese ore blocks in Odisha with identified reserves of 0.91 mt and 3.66 mt, quoting premiums of 70% and 80%, respectively. Dalmi Bharat Refractories won a graphite block in Tamil Nadu with a 45% premium, though reserves are yet to be determined. The total value of these three blocks is estimated at ₹3,200 crore.

HBL