India announces second CRM auction

CRM first auction

India Ministry of Mines sent on the 29th of November 2023 the first notice inviting tenders for an auction of 20 Critical and Strategic Mineral blocks. The bid due for the e-auction was due 20.02.2024. The government has received 56 offers from various tenders including Vedanta Group, Coal India Limited, Shree Cement Ltd., Ola Electric, Dalmia Bharat Group, and Jindal Power.

Second auction

On the 29th of February Pralhad Joshi announced the second part of the auction. A total of 18 mineral blocks worth approximately $362 billion will be offered. The minerals such as nickel, tungsten, vanadium, and cobalt have been offered. According to Joshi: Seventeen mineral blocks have been put up for a composite license, and one block is for a mining lease. A composite license includes a license to examine a block and mine it afterward.

The bidding will be held up to the mid-March and the winners will be announced in mid-April.

Auction goals

In the first bidding announcement, the India Ministry of Mines stated: The auction of Critical and Strategic Mineral Blocks aims to create a steady supply of these minerals, thus reducing our reliance on imports and ensuring a more secure and resilient supply chain. This will bring several key benefits including bolstering domestic production, reducing import dependency, promoting sustainable resource management, attracting investments in the mining sector, and developing key industries crucial for India’s industrial and technological advancement. This is a step towards creating a reliable supply chain of these Critical and Strategic minerals and a step towards making an ‘Atmanirbhar Bharat’ and contributing towards increased economic growth.

Moreover in the announcement it was highlighted that this will allow to bring expertise from the various mining companies. “Exploration License is foreseen to create an enabling mechanism for the Junior Mining Companies from across the world to bring in expertise in the field of exploration and mining sector as well as leverage the risk-taking ability in the discovery of critical and deep-seated mineral deposits through the adoption of advanced technologies.”