The Government of India launched the first round of auction for offshore mineral blocks.

Key Highlights of the Auction

• The inaugural auction of 13 mines including 3 lime mud blocks, 3 construction sand blocks and 7 polymetallic nodules and crusts.
• This development marks India’s entry into the exploration and development of undersea mineral resources within its offshore territories, advancing the nation’s mineral exploration and resource utilization capabilities.

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About Offshore Mining

• Definition: Offshore mining, also referred to as deep-sea mining, involves retrieving mineral deposits from the seabed at depths exceeding 200 meters.
• Significance:
• • Addresses the growing demand for critical metals amidst depleting terrestrial deposits.
  • Reduces India’s dependence on mineral imports, promoting self-reliance in critical resources.

Offshore Areas Mineral (Development & Regulation) Act, 2002 (OAMDR Act)

• The OAMDR Act, 2002 is administered by the Ministry of Mines.
• It governs the development and regulation of offshore mineral resources in India’s territorial waters, continental shelf, exclusive economic zone (EEZ), and other maritime zones.

Key Amendments in 2023

• Introduction of Transparent Auction Process: Eliminated discretionary renewals and established fair bidding for operational rights.
• Creation of Mining-Affected Persons Trust: Provides relief and rehabilitation for those affected by mining activities.
• Standard Lease Period: Set a uniform lease period of 50 years for all mining blocks.
• Composite License:
• • Combines exploration and extraction rights.
  • Allows holders to determine mineral resource presence, extent, and quality, followed by extraction if economically viable.
• Area Limits: Established limits for operating rights to ensure sustainable mining practices.

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About Critical Minerals

• Critical minerals are metallic or non-metallic elements essential for modern technologies, economies, and national security, but whose supply chains are vulnerable to disruption.
• Essential for Modern Applications: Used in advanced and low-emission technologies.
• Supply Chain Risk: Limited production sources and geopolitical factors pose supply chain risks.

Applications of Critical Minerals

• Advanced Technologies: Mobile phones, computers, fiber-optic cables, semiconductors, banknotes.
  • Plays significant role in defense, aerospace, and medical applications.
• Low-Emission Technologies: Electric vehicles, wind turbines, solar panels, and rechargeable batteries.
• Industrial Uses: Stainless steel production and electronics manufacturing.

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