Government Initiates Inaugural Auction for Critical Minerals Exploration Licenses

On March 13, Union Coal and Mines Minister G Kishan Reddy inaugurated India's first-ever auction for Exploration Licences (ELs) for 13 blocks in Dona Paula, Goa, aimed at critical minerals.

These licences cover exploration blocks for minerals such as rare earth elements (REE), zinc, diamonds, copper, platinum group elements (PGE), and more.

This initiative marks a significant reform to tap into India's underutilized critical and deep-seated mineral resources.

The minister said India's legal framework for mining exploration was limited until now.

Reddy unveiled the ELs alongside Goa Chief Minister Pramod Sawant.

The event also included a roadshow for the 5th Tranche of Critical Mineral Blocks and the launch of the AI Hackathon 2025, a Mineral Exploration Hackathon focused on “Mineral Targeting using AI” (Artificial Intelligence).

Speaking at the gathering, Union Minister Reddy stated that over the past decade, India's mining sector has reached numerous milestones and has become one of the country's fastest-growing and most dynamic industries.

According to PTI, he remarked that today signifies yet another significant achievement for the sector.

"We are laying the foundation for new era in mineral exploration," He added that this era is faster-paced, driven by technology, and highly competitive on a global scale.

"We have established ourselves as a serious player in the global mineral landscape, it has also opened flood gates of opportunities for the private sector," he said.

Reddy stated that even greater milestones lie ahead, paving the way for India's emergence as a global leader.

"Today we are launching 13 blocks for various critical and deep-seated minerals," the minister said.

He further added that this new framework will promote transparency, efficiency, and innovation, ensuring that only the most promising areas are selected for detailed exploration.

"In the first 10 years (of Narendra Modi government), we increased the exploration activities manifold. The biggest reform is the introduction of a transparent auction regime and the involvement of private sector," Reddy said.

The minister stated that India's legal framework for mining exploration had been restrictive until now.

"There was a crucial gap. There was no structural mechanism for the private companies. Recognising this, the Government of India introduced amendment to the MMDR Act in 2023. This is a reform that will open doors for a systematic exploration of minerals," he said.

Speaking at the gathering, CM Sawant expressed gratitude to the Union Mines Ministry for selecting Goa as the venue for the roadshow and the launch of the ELs.

He emphasized that mining has long been a vital part of the economy, playing a significant role in employment generation, industrial growth, and overall development.

"As we stand at the cusp of a new era of mineral exploration, this initiative reflects the government's firm commitment in self-reliance in critical minerals," he said.

"These minerals are an integral part of our electronic industry, green industry and others," Sawant added that many countries have yet to explore the availability of minerals.

The Chief Minister emphasized the need to accelerate exploration efforts across the country.

He described the amendment to the Mines and Minerals (Development and Regulation) (MMDR) Act as a bold move that will unlock the nation’s untapped mineral resources.

Goa is set to gain significantly from this initiative, he added.

As India transitions toward a green energy future, securing a steady supply of critical minerals will be crucial, he noted.

Speaking about Hackathon 2025, Sawant highlighted that Goa, with its rich mining heritage, stands to benefit from advancements in mining technology.

Mines Secretary V. L. Kantha Rao stated that this is a major event for the Union Ministry of Mines.

"Today there are 4-5 important initiatives that are showcased here, including critical mineral auction. Some of the critical minerals which are 100 per cent imported currently are part of the auction," he said.

Once auctioned and mined, these blocks will contribute to India's self-reliance in minerals, the official stated.

"This is a very important event in our journey towards Atmanirbharta," he added.

Kantha Rao mentioned that just as people in foreign countries venture out and explore independently, the same concept has been introduced here.

"A private company will do the exploration and if they find the deep-seated or critical mineral, then they will get an income for 50 years," he said.

"If nothing found in the exploration, 50 per cent of the risk is borne by the Government of India," he added.

(This Article was originally published by Money Control)