Union Ministry of Mines on 28th November launched India’s first-ever tranche of 13 mineral blocks for auction in offshore areas.
Key points
- This marks India’s entry into the exploration and development of undersea mineral resources within the exclusive economic zone.
- The 13 blocks included three lime mud blocks, three for construction sand and seven for polymetallic nodules and crusts.
- The blocks are located off the coast of Gujarat (West Coast of Arabian Sea), off Kerala (West Coast of Arabian Sea) and off Great Nicobar Island (Andaman Sea).
- Offshore minerals are located deep within the earth’s crust and are difficult to extract compared to onshore minerals.
- India’s offshore mineral reserves include gold, diamond, copper, nickel, cobalt, copper, manganese, and rare earth elements.
- Auctions will help increase the availability of these minerals in India and reduce dependence on imports.
- Offshore construction sand is used for a variety of purposes including to make concrete; while lime mud finds usage in the cement, steel, and construction industry.
- Polymetallic nodules are mineral formations on the ocean floor that contain valuable metals, such as nickel, cobalt, and manganese. They are also known as manganese nodules or ferromanganese nodules.
- In August 2023, the Parliament amended the Offshore Areas Mineral (Development and Regulation) Act, 2002, making auctions the mandatory mode for allocating mineral blocks in offshore areas.
- The amendment enabled the government to streamline the process of granting of production leases and composite licences for resource exploration and extraction.
(Source: BL)
