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India put on auction 21 critical mineral blocks across nine States valued at ₹83,000 crore; while a Kolkata-registered mine development operator, Maiki South, won the country’s first ever lithium block at Kathgora in Chhattisgarh.
- Also read:India annuls 14 of 18 blocks of critical minerals that were put up for bids earlier this year
Of the 21 mineral blocks put on auction on Monday, 11-odd are new ones and 10 of them are “second attempts” that is blocks from previous tranches which did not get any or less than the mandatory three bidders.
India has been auctioning critical mineral blocks since November as part of efforts towards a clean energy transition.
Fresh blocks
The fresh 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 of elements, phosphate and rare earth elements (REE). The “second attempt” blocks – in Andhra, Arunachal, Chhattisgarh, Karnataka, Maharashtra and Tamil Nadu – cover minerals like tungsten, vanadium, graphite, glauconite, cobalt and nickel.
According to GK Reddy, Union Minister for Mines, the plan would be ensure operationalisation of these blocks “at the earliest”. It is expected that it will take 2 to 3 months for the auction process to be completed.
“These auctions are a key in India switching over to green energy and reducing its import bill across minerals like lithium, copper and others,” Reddy said, adding that more critical mineral blocks are being identified and will be put of for auction, post determination of their commercial viability.
Chhattisgarh Lithium Block Awarded
Licence for India’s first-ever lithium block (in Chhattisgarh) was awarded to Maiki South Mining which quoted an auction premium of 76.05 per cent. The company obtained a composite licence; will start exploration activities to determine the quantity of reserves and other details before it starts commercial mining.
“Our initial reports show there is commercial viability in the block,” a senior Mines Ministry official said.
Other Preferred Bidders Named
Meanwhile, preferred bidders for five other critical mineral blocks – put up for auction in the first tranche – were also declared. These include four graphite and manganese ore blocks and one for phosporite.
Sagar Stone Industries, which won the Uttar Pradesh phosphorite block having a reserve of 19.09 million tonnes (mt), quoted an auction premium of 400 per cent.
A senior Ministry official said the block had substantial reserves for a mineral where India is import dependent. “Used primarily in the fertilizer industry, the bids made present a valid business-case,” the official added.
Agrasen Sponge Private Ltd won two graphite and manganese ore blocks – both in Odisha - quoting premium of 70 per cent and 80 per cent-odd respectively. Reserves identified are at 0.91 mt and 3.66 mt, respectively.
The value of these three blocks with identified reserves is pegged at ₹3,200 crore.
In case of the graphite block in Tamil Nadu, Dalmi Bharat Refractories won the bid quoting around 45 per cent premium. Reserves are yet to be determined here.
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