Government Cancels Auction of 11 Critical Mineral Blocks Due to Poor Response
The government has called off the auction of 11 critical mineral blocks in the fourth round, citing a lack of sufficient interest. According to the annulment notice, no bids were received for four blocks, while the remaining seven blocks had fewer than three technically qualified bidders.
The four blocks, which include tungsten and glauconite, are situated in Chhattisgarh and Arunachal Pradesh. The notice stated, “Since there were nil bids received… the auction process for four mineral blocks stands annulled.”
Critical minerals like cobalt, copper, lithium, nickel, and rare earth elements are essential for clean energy technologies such as wind turbines and electric vehicles. However, due to the limited number of technically qualified bidders, the auction process for the seven other mineral blocks has also been cancelled.
This is not the first time auctions have faced poor responses. Earlier, the government cancelled the auction of three critical mineral blocks in the third round, 14 in the second round, and 14 in the first tranche. So far, 24 critical and strategic mineral blocks have been successfully auctioned out of the 48 offered across four rounds, including four mining leases and 20 composite licenses, according to the Ministry of Mines.
India’s Focus on Critical Minerals
To address the growing demand for critical minerals, India plans to launch a Critical Mineral Mission next year. This initiative aims to secure vital resources for green energy and advanced technologies. The mission will involve collaboration among the government, industry, and research institutions, with a focus on acquiring overseas assets, particularly lithium and cobalt in Australia, and boosting domestic mining through auctions and promotional roadshows.
India also seeks to attract international investors with high-profile roadshows and plans to strengthen its position on the global mining map. As nations race to secure critical minerals like lithium and cobalt, these resources are increasingly seen as the foundation of the 21st-century economy.
Rising Demand for Critical Minerals
According to the World Bank, the production of critical minerals such as lithium and cobalt will need to rise by nearly 500% by 2050 to meet the growing demand for clean energy technologies. Similarly, the International Energy Agency predicts that the demand for these minerals will increase at least 30 times by 2040 due to the growth of electric vehicles and battery storage systems.
Critical minerals also play a pivotal role in the semiconductor industry, which powers devices from smartphones to electric vehicles. As India strives to become a global hub for semiconductor manufacturing, projected to reach a $1 trillion market by 2030, ensuring a stable supply of materials like silicon, cobalt, and rare earth elements is critical.
About The Author
