India set to kick off its first offshore mineral auction: Mines Secretary | News
India is set to kick off its first-ever offshore minerals auction within months, with 10 blocks up for grabs, Mines Secretary VL Kantha Rao announced on Wednesday during the Federation of Indian Mineral Industries (FIMI) event.
“We are ready with 10 blocks on both the east and west coasts of India. These blocks will include sand, lime mud, and
polymetallic nodules,” Rao said, emphasising the government’s preparedness for the auction.
He encouraged the industry to study the exploration reports of these blocks and bring in interested domestic and international players.
The Geological Survey of India (GSI) has identified polymetallic nodules, also known as manganese nodules, along with sand and gravel in offshore areas. Polymetallic nodules primarily contain iron, manganese, nickel, copper, and cobalt.
Moreover, offshore regions serve as reservoirs of sand and gravel, crucial for construction, beach nourishment, and land reclamation projects. Additionally, rare earth elements have also been discovered beneath the sea.
Offshore minerals are found in all three large bodies of water — the Indian Ocean, Arabian Sea, and Bay of Bengal — that surround the Indian peninsula.
Embarking on its offshore expedition, India is poised to explore its vast exclusive economic zone (EEZ), covering around 2.37 million square kilometres (915,057 square miles). This zone stretches 200 nautical miles (370.4 kilometres) from the baseline of India’s territorial waters.
As India ventures into offshore mining, the nation’s obvious geological potential (OGP) is anticipated to expand beyond its existing 6.88 lakh square kilometres notably.
Critical mineral exploration
The secretary also provided updates on the ongoing exploration of critical minerals by Khanij Bidesh India Ltd (KABIL), a joint venture of three public-sector undertakings — National Aluminium Company, Hindustan Copper, and Mineral Exploration Company.
In Argentina, KABIL has started non-invasive exploration on three of the five blocks allocated to it. “Within two years’ time, KABIL will complete non-invasive exploration, after which they will seek drilling licences,” Rao said. Mining activities in Argentina are expected to commence in about two years. India in January signed an agreement to acquire five lithium mines in Argentina.
KABIL has established a presence in Argentina and Australia and is actively negotiating with several countries abundant in critical minerals, such as Bolivia and Chile. It is likely to establish its presence in Zambia too.
Consulting firm EY has submitted exploration reports on critical minerals in Australia, which are currently under review by the government.
Coal India Limited (CIL) is also conducting exploration of critical minerals, including lithium, copper, and nickel, in Chile.
Domestic exploration
On the domestic front, Rao highlighted that several public sector undertakings (PSUs) and private firms are actively involved in exploration efforts. “Hindustan Zinc, Tata, and PSUs like NTPC are either engaging or setting up their own exploration units,” he added.
The launch of offshore mineral auctions and intensified exploration efforts align with India’s push for securing critical minerals and supporting its growing industrial and energy demands.
First Published: Sep 18 2024 | 3:29 PM IST
