India's first deep-sea mineral auction indefinitely postponed: Here's why
What's the story
India's first-ever auction of deep-sea blocks rich in critical minerals has been indefinitely postponed. The decision comes after a lackluster response from potential bidders, government officials told Moneycontrol. An official said some companies had multiple queries as this is the first time such an auction has been announced. The auction was launched in November with 13 mineral blocks on offer, including three lime mud blocks, three construction sand blocks, and seven polymetallic nodule blocks.
Schedule changes
Bidding deadline extended multiple times
The initial bidding deadline for the auction was set for February 27. However, it has been extended multiple times—to April 2, May 1, and then August 22. An official confirmed to Moneycontrol that "the auction did not take place on August 22 as was planned." The government is seeking broader participation in the auction process, which is why it was postponed. The official added that a new date is yet to be finalized for this event.
Mineral deposits
Blocks rich in critical minerals
The auctioned blocks stretch from the Arabian Sea in the west to the Andaman Sea in the east. They are rich in critical minerals such as cobalt, copper, manganese, and nickel. These resources are vital for electric vehicles (EVs), defense equipment, and renewable energy production. Despite their importance, political parties in Kerala and local fishing communities have expressed concerns over environmental risks associated with undersea mineral exploration.
Tech hurdles
Technology challenge in deep-sea exploration
Experts have pointed out that technology is the biggest challenge in India's foray into deep-sea mineral exploration. Arvind Virmani, a member of Niti Aayog, had said at the India Mining Summit on September 18, "Basically, the entire supply chain, including technology, has become concentrated. Now the whole world is scrambling to create new technologies."
Strategic move
China's dominance in critical minerals
China is the world's largest producer of critical minerals, including rare earth elements used in electronics, EV batteries, and defense equipment. Its dominance has raised global concerns, especially after Beijing imposed export restrictions on certain critical minerals. To combat this supply crunch, India launched the National Critical Mineral Mission in January. The initiative seeks to enhance exploration efforts, boost domestic processing capabilities, and promote recycling of these essential resources.