Government unveils 10 new mineral sites and exploration incentives to boost critical minerals mining
The Ministry of Mines led by G Kishan Reddy has launched the fourth phase of auctioning critical mineral blocks across India, with the aim of boosting production of scarce commodities essential for clean energy and technology. As part of this effort, 10 new exploration sites holding critical minerals have been identified and offered to mining companies. Additionally, 11 blocks that previously received no bids are being re-offered with the hopes that revised terms will attract more participation.
This latest auction phase brings the total number of critical mineral blocks tendered out so far to 48. While the initial rounds saw some successes such as contracts being granted for lithium and graphite sites, many blocks also failed to attract the minimum 3 bidders required. However, the ministry remains committed to tapping the country’s potential for critical resources and has rolled out new incentives to encourage exploration spending.
Under the new scheme, licence holders exploring blocks can apply to have up to Rs 20 crore reimbursed for qualifying expenditures on activities such as surveys, drilling and sample analysis carried out within three years. This aims to offset risks that previously deterred companies from investing heavily to map out deposits, with no guarantee of eventually winning mining rights.
Securing supplies of materials needed for technology has become a pressing issue worldwide. With over 100 potential sites so far mapped within India, the series of auctions forms part of efforts to develop domestic sources and boost self-reliance. Should incentives and outreach efforts prove effective, several of the re-offered blocks may finally see winning bids that advance this important national priority.
