India has officially launched its first-ever auction for 13 mineral blocks in offshore areas, marking a significant step towards harnessing the country’s undersea mineral resources. The move will allow India to explore and develop mineral deposits within its exclusive economic zone (EEZ), furthering the country's quest for self-reliance in critical minerals.

The 13 offshore blocks are spread across three major regions: the coast of Gujarat, Kerala, and Great Nicobar Island. These blocks are strategically selected for their potential to hold valuable minerals such as cobalt, nickel, rare earth elements (REE), gold, copper, and manganese. The blocks include a mix of composite licences, with three designated for lime mud, three for construction sand, and seven for polymetallic nodules and crusts.

Union Minister for Mines G Kishan Reddy, who launched the auction, emphasized the importance of these mineral resources in strengthening India’s economy. "The offshore blocks auction will give a boost to India’s quest for self-reliance in critical minerals where we are primarily import reliant," he said, underscoring the role of these minerals in reducing the country’s dependency on imports.

Offshore minerals are located deep beneath the Earth’s crust and are more challenging to extract compared to onshore minerals. However, they are essential for a range of industries, including the manufacturing of low-carbon technologies and clean energy solutions.

The offshore minerals being auctioned include polymetallic nodules—mineral formations found on the ocean floor containing valuable metals such as nickel, cobalt, and manganese. These nodules are important for the production of batteries and electronic components. Lime mud, used in cement, steel, and construction industries, and offshore construction sand, used for concrete production, are also part of the auction package.

The government aims to launch these mineral blocks within the next two to three months. In addition to domestic exploration, the Ministry of Mines is also planning international roadshows in countries like Zimbabwe and other African nations to foster collaborations and attract investments for processing these offshore minerals. Tech partnerships are also being explored with countries like Indonesia, Korea, and Australia.

The auction of offshore mineral blocks is part of the broader reforms introduced by the government to streamline the process of granting production leases and composite licences for resource exploration. In August 2023, India’s Parliament amended the Offshore Areas Mineral (Development and Regulation) Act, 2002, making the auction process mandatory for allocating mineral blocks in offshore areas.

As India continues to expand its capabilities in offshore resource extraction, the launch of this auction marks a critical milestone in securing the country’s long-term economic and strategic interests in the global mineral market.