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Karnataka and Rajasthan have initiated auctions for exploration licences of critical and deep-seated minerals.

Rajasthan, Karnataka Launch India’s first Exploration licence Auction for Critical Minerals

• The auctions in Karnataka and Rajasthan included minerals like gold, copper, and lithium.
• Karnataka auctioned one block each of gold, copper, and lithium, while Rajasthan auctioned three blocks including rare earth elements, rare metals, and potash.

What Are Exploration Licences?

• Exploration licences are permissions or rights given by government authorities to carry out exploration activities in the designated areas.
• These  licenses help Junior Mining Companies get expertise from around the world to gather, process, and understand exploration data.
  • It helps companies to take risks to find deep-seated minerals using expertise and new mining technologies.

Benefits of Exploration Licences

• Empowering Junior Mining Companies

  • Expansion of knowledge: Exploration Licenses help small mining companies learn from experts worldwide.
  • Interpretation of Data: These companies can acquire, process, and interpret exploration data using cutting-edge technologies.
    • They use new tools and methods to find valuable minerals  deep in the earth.

• Boosting State Government Revenues

• • Exploration of minerals: With Exploration Licenses, companies search for minerals in specific areas.
    • They find specific areas where mining can happen.
  • Direct auction for mining leases: These explored blocks can then be directly auctioned for mining leases.
    • The money earned from selling these areas helps the state governments.

• Focusing on Important Minerals

• • Exploration Licenses help in finding vital minerals like gold, copper, and lithium.
    • Support to Other Industries: These minerals play a crucial role in various industries and technologies.
    • Exploring and using these minerals further help our economy grow and develop.

News Source: Thehindu