The first tranche e-auction of Critical & Strategic Minerals was launched by the Union Government on 29th November, 2023. A total of 20 critical mineral blocks were auctioned in the first tranche.
Key points
- While most of the blocks (16) are being offered on a composite licence – with which an entity can explore the resource and get a lease to commercially extract minerals – four have been earmarked only for mining leases.
- Apart from lithium, critical minerals encompass titanium, bauxite (aluminous laterite), glauconite, nickel, chromium, potash, copper, graphite, manganese ore, molybdenum ore, phosphorite, platinum group elements, and rare earth elements.
- Two lithium blocks in Jammu and Kashmir have been offered. Once operational, they will help to cut down imports and build an Aatmanirbhar Bharat.
- Recently, through an amendment in the MMDR Act on 17th August 2023, 24 minerals were notified as Critical and Strategic minerals.
- The amendment confers the power to grant mineral concession of these minerals to the Central Government so that the Central Government can prioritise auction of these minerals looking at the requirements of the country.
- The revenue generated from these auctions shall accrue to State Governments. Subsequently, royalty rates of critical minerals have been rationalized to encourage more participation in auctions.
