In a landmark move to harness the country’s offshore mineral wealth, the Indian government has launched its inaugural auction of offshore critical mineral blocks. This initiative marks a significant step in exploring India’s vast Exclusive Economic Zone (EEZ), covering approximately 2.37 million square kilometers. The auction features 13 mineral blocks located across the Arabian Sea and the Andaman Sea, with three blocks of construction sand in Kollam, Kerala, three blocks of lime mud in Porbandar, Gujarat, and seven blocks of polymetallic nodules and crusts near Great Nicobar Island.
A Historic Milestone in Offshore Mining
Union Minister of Coal and Mines G Kishan Reddy hailed this initiative as a “historic milestone,” unlocking the potential of offshore mineral resources that have remained untapped for nearly two decades despite the existence of the Offshore Areas Mineral (Development and Regulation) Act, 2002. He emphasized the significance of this auction in paving the way for a robust blue economy, putting India in an elite group of nations engaged in offshore mining. This effort aims to address the growing demand for critical minerals such as lithium, cobalt, nickel, and copper, which are essential for renewable energy systems, advanced technologies, and modern infrastructure.
Diverse Applications of Auctioned Minerals
The minerals up for auction have diverse industrial applications. Construction sand is vital for infrastructure development, serving as a key component in concrete and building materials. Lime mud, rich in calcium carbonate, is widely used in cement production, water treatment, and soil stabilization. Polymetallic nodules and crusts, abundant in minerals like cobalt, nickel, copper, manganese, and rare earth elements, are crucial for manufacturing electronics, batteries, and renewable energy systems such as wind turbines and electric vehicles.
India’s exploration of its offshore reserves is expected to significantly reduce reliance on imports while supporting the nation’s net-zero commitments by 2070. Currently, only one-third of the EEZ has been explored, with the Geological Survey of India identifying several promising areas for mineral extraction. The auctioned blocks were selected for their economic viability, with the goal of diversifying India’s mineral sources and building a more resilient domestic supply chain.
The offshore mining initiative is supported by legislative reforms introduced in August 2023, which amended the Offshore Areas Mineral (Development and Regulation) Act, 2002. These amendments made auctions the sole method for allocating offshore mineral blocks, streamlining the process of granting leases and licenses for resource extraction. This change ensures greater transparency and efficiency, fostering confidence among stakeholders.
Overcoming Challenges and Seizing Opportunities
While offshore mining presents significant technical challenges, such as deep-sea extraction complexities, it offers immense opportunities to expand India’s mineral resource base and technological capabilities. By tapping into its offshore reserves, India aims to strengthen its position in global critical mineral production, ensuring a steady supply of these essential resources for industrial growth and technological innovation.
This initiative not only aligns with India’s vision of a self-reliant economy but also underscores the country’s commitment to sustainable development. As India delves into the depths of its marine wealth, it aims to transform its EEZ into a cornerstone of economic prosperity, technological advancement, and environmental sustainability. With the launch of the offshore mineral auction, the nation sets sail on a journey toward a more secure and self-sufficient future.
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