Ministry of Mines to auction two offshore mineral blocks in Andaman Sea on October 1

The latest market report highlights that The Ministry of Mines will launch the auction of offshore mineral blocks on Thursday, October 1, marking a step towards unlocking India’s offshore mineral potential and strengthening the country’s long-term mineral resource security.

According to the Ministry of Mines, offshore mineral resources are important in the context of technological advancement, the clean energy transition and resilient supply chains. Minerals such as cobalt, nickel, manganese, copper and rare earth elements are key inputs for electric mobility, renewable energy systems, advanced electronics and strategic industries.

“Development of domestic offshore mineral resources can as a result contribute to India’s objectives of self-reliance, resource security and sustainable economic expansion,” the ministry stated.

The auction is being conducted under the provisions of the Offshore Areas Mineral (Development and Regulation) Act, 2002 and the Offshore Areas Mineral (Auction) Rules, 2024, as amended from time to time.

Following amendments to the OAMDR Act in 2023, the Ministry of Mines was empowered to auction offshore mineral blocks, enabling transparent and competitive allocation of offshore mineral resources.

The auction comprises two offshore mineral blocks in the Andaman Sea region, which will be offered for grant of a Composite Licence. The ministry stated the auction is anticipated to encourage systematic exploration, attract investment and promote the adoption of advanced technologies for offshore mineral exploration and development.

The initiative reflects the government's commitment to expanding India’s mineral resource base through systematic exploration and responsible development of offshore resources.

It is additionally anticipated to facilitate greater private sector participation and technological innovation in an emerging area with potential to meet future industrial and strategic requirements.

The launch of the auction marks another step towards harnessing India’s offshore mineral wealth and strengthening the country’s mineral security for emerging technologies, industrial development and long-term economic expansion.