The Indian Ministry of Mines has initiated the country’s “first-ever” auction of exploration licences in Goa, a significant step in unlocking the country’s untapped critical mineral resources.
This move is expected to foster private sector engagement in the exploration of strategic minerals and enhance India’s mineral self-reliance.
The introduction of exploration licences, under the recently enacted Mines and Minerals (Development and Regulation) (MMDR) Amendment Act, 2023, allows for private exploration for 29 critical and deep-seated minerals.
These minerals, which include cobalt, copper, gold, lithium, platinum group elements (PGEs), rare earth elements (REEs) and silver, are now listed in the new Seventh Schedule of the act.
To facilitate the process, the central Government exercised its powers under Section 20A of the MMDR Act and issued an order on 21 October 2024 to conduct the exploration licence auction.
In the first phase, 13 exploration blocks will be auctioned through a transparent online bidding system, targeting minerals such as REEs, zinc, diamond, copper and PGEs.
This move is expected to expedite the exploration process, boost private sector participation and strengthen India’s mineral security, particularly concerning critical minerals that are essential for the nation’s energy transition and industrial demands.
Furthermore, India is pursuing agreements with mineral-rich nations including the Democratic Republic of Congo (DRC) to secure a stable supply of critical minerals such as cobalt and copper, reported Reuters, citing two sources with direct knowledge of the matter.
Recently, the DRC halted cobalt exports to address a surplus in production and a drop in prices.
