TFP Bureau, New Delhi, Nov 28, 2023: In a historic move aimed at bolstering the nation’s economy, fortifying national security, and advancing clean energy goals, the Ministry of Mines is gearing up to launch the inaugural tranche auction of critical and strategic minerals on November 29, 2023.
Union Minister of Coal, Mines, and Parliamentary Affairs, Shri Pralhad Joshi, will officiate the commencement of the critical minerals auction process. This groundbreaking initiative involves the auction of twenty blocks strategically positioned across the country, with far-reaching implications for India’s future economic landscape and energy transition endeavors.
Critical minerals play a pivotal role in the country’s economic development and national security. The potential vulnerability arising from a limited supply or concentration of extraction in specific countries underscores the importance of securing these resources domestically. Essential minerals like lithium, graphite, cobalt, titanium, and rare earth elements (REE) form the bedrock of technologies integral to the future global economy.
India’s commitment to achieving 50% of cumulative electric power installed capacity from non-fossil sources by 2030 is a driving force behind the surge in demand for critical minerals. This ambitious energy transition plan is expected to spur the adoption of electric cars, renewable energy projects, and battery storage systems, further intensifying the need for these minerals.
Critical and strategic minerals, often met through imports, find applications across diverse sectors such as renewable energy, defence, agriculture, pharmaceuticals, high-tech electronics, telecommunications, and transportation.
The amendment to the Mines and Minerals (Development and Regulation) Act on August 17, 2023, marked a crucial step by designating 24 minerals as critical and strategic. This empowered the Central Government to prioritize the auction of these minerals, ensuring that the revenue generated from auctions benefits state governments. Rationalization of royalty rates for critical minerals, including Platinum Group of Metals (PGM), Molybdenum, Glauconite, Potash, Lithium, Niobium, and Rare Earth Elements, has further incentivized participation in auctions.
The sale of tender documents is set to commence on November 29, 2023. Interested parties can access details of the mineral blocks, auction terms, timelines, and more on the MSTC auction platform at http://www.mstcecommerce.com/auctionhome/mlcl/index.jsp)from 6 p.m. on the same day. The online auction will follow a transparent two-stage ascending forward auction process, with eligible bidders selected based on the highest percentage of the value of mineral despatched quoted by them.
