Kerala’s Legislative Assembly has unanimously passed a resolution, opposing the Central government’s amendments to the Offshore Areas Mineral (Development and Regulation) Act, 2002

The Kerala Government’s Opposition

• The Kerala Government opposes offshore mining along the Kerala coast and demands immediate withdrawal of the amendment and all subsequent actions by the Central government related to offshore mining.
• The Union Ministry of Mines has decided to conduct mineral mining auctions in Kollam, a traditional fishing area in Kerala
• Reason: Offshore Mining can have devastating consequences for the State’s  
  • Marine Resources: Deep-sea mining could lead to the destruction of vital marine life, exacerbate the extinction of marine species, increased carbon emissions from the oceans, and causing dangerous silting in seawater
  • National Security: The policy would grant private entities access to strategic minerals found in deep-sea areas posing significant threat to national security.
  • Economy: It will have an impact on Kerala’s fishing community jeopardising the livelihoods of lakhs of fishermen who rely on the State’s rich marine resources.

Amendments to the Offshore Areas Mineral (Development and Regulation) Act, 2002

• The amendment was passed in 2023.
• The amendment allows private participation in deep-sea mineral exploration and mining and allows the Union Ministry of Mines to auction deep-sea mineral blocks. 
• Key Provisions:
• • Auction-based allocation: Offshore mineral extraction rights will be granted through a competitive bidding process via auction, eliminating discretionary allocation. 
  • Composite License: A single “composite license” will be issued for both exploration and production activities, simplifying the process. 
  • Fixed Lease Duration: Production leases will be granted for a fixed period of 50 years. 
  • Area Restrictions: Maximum area has been restricted that one entity can acquire for mineral extraction.
  • Government Priority: Specific offshore areas with mineral deposits, particularly atomic minerals, will be reserved for government companies or PSUs. 
  • Offshore Areas Mineral Trust: A dedicated trust will be created to manage funds generated from offshore mineral extraction, which can be used for the benefit of affected communities.