India launches first-ever auction of offshore mineral blocks worth $18B
India has launched the auction of its first tranche of offshore mineral blocks, marking the country's initial foray into deep-sea exploration. This initiative, with an estimated value of $18 billion, aims to tap into untapped resources within India's Exclusive Economic Zone (EEZ). Mines Minister G Kishan Reddy launched the auction. The blocks, which are located in the Arabian Sea and Andaman Sea, are rich in resources such as construction sand and lime mud.
Offshore mining to boost India's blue economy
Reddy stressed on the economic potential of offshore mining in his address. "This auction and exploration will unlock India's blue economy and allow the mining sector to be a part of Viksit Bharat journey," he said. He also noted that many countries are already into offshore mining and now India is joining this global trend. The government recently amended the Offshore Areas Mineral Act, paving the way for this historic auction.
Offshore exploration: A new era for India
Reddy called the auction "the beginning of a new era in offshore exploration." He emphasized that these mineral blocks in India's Exclusive Economic Zone will be key to securing critical resources for infrastructure, electric vehicles, and renewable energy sectors. The move is likely to greatly aid India's path toward self-reliance while adhering to sustainable mining practices to reduce environmental impact.
Auction details and commitment to sustainability
The first tranche of the auction consists of 13 blocks in total, including three each for construction sand and lime mud. The other seven blocks are polymetallic nodules whose value is yet to be determined. V L Kantha Rao, Secretary, Ministry of Mines stressed on reducing import reliance as "key to India's future." He also noted how this offshore auction will diversify India's mineral sources and support its Net Zero commitments by 2070.
Offshore minerals: A strategic asset for India
Offshore minerals, which are located deep inside the earth's crust, are difficult to extract than onshore minerals. India's offshore mineral reserves include gold, diamond, copper, nickel, cobalt, manganese and rare earth elements. The auction of these offshore blocks is likely to boost the availability of these minerals in India and lessen dependence on imports. The Ministry of Mines said "offshore minerals are vital to securing India's strategic and economic interests."
