The Centre has annulled the auction of nine critical and strategic mineral blocks in the seventh tranche after receiving either no bids or fewer than three technically qualified bidders.
The setback underlines persistent investor reluctance toward high-risk, capital-intensive mineral assets.
Complicating India’s plans to boost domestic supplies vital for energy security, clean-tech manufacturing and reducing import dependence.
Centre Scraps Auction of 9 Critical Mineral Blocks Citing Poor Investor Response
The development comes as a setback to the government's efforts to ramp up domestic exploration and production of critical minerals that are central to the country's push for energy security
Critical Mineral Blocks Observer Research Foundation
Summary
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The government has cancelled the auction of nine critical and strategic mineral blocks, citing poor investor response and lack of qualified bidders. These blocks were put on the block in the seventh round of sale.
The development comes as a setback to the government's efforts to ramp up domestic exploration and production of critical minerals that are central to the country's push for energy security, clean-tech manufacturing and cutting down dependence on imports.
It also reflects the challenge of drawing private investment into riskier mineral assets, where technical complexities, higher capital costs and regulatory uncertainties tend to dampen bidding interest.
The government had cancelled several critical and strategic mineral block auctions in the previous rounds as well -- 11 blocks in the sixth round, five in the fifth, 11 in the fourth, three in the third, 14 in the second and 13 in the first tranche.
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"Since there were nil bids... the auction process for... two mineral blocks stands annulled," the mines ministry said in a notice.
The two blocks -- Majhauli Titanium, Vanadium and Aluminous Laterite Block and RAMB Degana Tungsten, Lithium and Associated Mineral Block -- are in Madhya Pradesh and Rajasthan, the notice said.
It further said the auction process of seven other mineral blocks was annulled as there were less than three technically-qualified bidders.
"Since there were less than three technically qualified bidders...the auction process of... seven mineral blocks stands annulled." These seven blocks -- Nawara-Nawadih Glauconite Block, Tipa Glauconite Block, Shahpur Glauconite Block, Sapneri Vanadium bearing MagnetiteIlmenite Block, Gurur Glauconite Block, Karahibhadar Glauconite Block and Naringpanga (South) Graphite Block -- are in Bihar, Chhattisgarh and Odisha.
The seventh round of auction was launched through the Notice Inviting Tender (NIT) issued on March 23, offering 19 mineral blocks comprising critical and strategic minerals.
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It was conducted under the provisions of the Mines and Minerals (Development and Regulation) Act, 1957 and the Mineral (Auction) Rules, 2015, as amended from time to time.
The seventh tranche marked a significant expansion of the country's critical mineral exploration landscape, with critical mineral blocks auctioned for the first time in Gujarat, Uttarakhand and Telangana by the Centre.
The tranche included minerals such as graphite, rare earth elements (REE), vanadium, titanium, glauconite, rock phosphate and associated minerals, further widening the geographical reach of critical mineral exploration in the country.