Govt launches 2nd part of critical minerals auction worth Rs 30 lakh crore

The mineral blocks that were put for auction include graphite, vanadium, nickel, rare earth elements, PGE, cobalt etc

The Union mines ministry on February 29 launched 18 critical and strategic mineral blocks in the second tranche of an auction, with the resources being valued at about Rs 30 lakh crore.

The mineral blocks that were put for auction include graphite, vanadium, nickel, rare earth elements, PGE, cobalt etc. These blocks are spread across states including Andhra Pradesh, Arunachal Pradesh, Chhattisgarh, Maharashtra, Rajasthan, Tamil Nadu etc, said Prahlad Joshi, union minister for coal and mines.

In the second round of auction, the government will grant 17 composite licenses and  one mining lease. "The indigenous mining would lead to reduction of imports and help in availing minerals necessary for energy transition, overcoming supply chain issues," added Joshi.

He flagged that the third round of auction is expected post the Lok Sabha elections.

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The move comes as India looks to strengthen the domestic supply of raw materials required to support its shift to green energy. Last month, 20 critical mineral blocks, spread across the country in states including Bihar, Odisha, Uttar Pradesh, Chhattisgarh, Jharkhand, Tamil Nadu and the union territory of Jammu and Kashmir, were auctioned.

Commenting on the first round of auction, Joshi said, "More than 180 people have purchased the bid document, many stakeholders are participating."

The ministry has handed over 20 blocks to states for the auction of exploration licenses. "Five states have showed readiness to do the first auction of exploration license in the country. We are expecting that to begin in the next 10-15 days," said VL Kantha Rao Secretary, Ministry of Mines.

Meanwhile, the government also approved royalty rates for mining of 12 critical and strategic minerals. The minerals include Beryllium, Cadmium, Cobalt, Gallium, Indium, Rhenium, Selenium, Tantalum, Tellurium, Titanium, Tungsten, and Vanadium, according to a statement released by the ministry.

"The rates are at reasonable level to encourage more participation," Joshi said.

Further, financial grants were awarded to six startups. The startups include Ashvini Rare Earth, Saru Smelting Pvt Ltd, Caliche Pvt Ltd etc.