critical mineral: Karnataka, Rajasthan begin auction of exploration licences for critical minerals

Karnataka and Rajasthan have launched the auction of Exploration Licence (EL) for critical and deep seated minerals. An official statement said EL blocks are being auctioned for the first time in the country. Andhra Pradesh, Chhattisgarh, Madhya Pradesh, and Maharashtra are also expected to launch bids for EL in the coming days.

While Karnataka launched auction of one block expected to contain Gold, Copper and Lithium, Rajasthan launched auction of three blocks of Rare Earth Elements, Rare Metal, and Potash minerals, the statement added.

The Exploration Licence holder will explore the blocks and identify the areas that can be auctioned for Mining Lease. The blocks explored by the Exploration Licence holder can be directly auctioned for Mining Lease. Preferred bidder in the auction of Exploration Licence shall be selected through reverse bidding. The bidders will quote the share they will take in auction premium payable by the mining lease (ML) holder of the blocks explored by them. The bidder quoting lowest percentage bid shall be preferred bidder for exploration licence, the statement said.

Critical and deep-seated minerals such as Cobalt, Lithium, Nickel, Gold, Silver, Copper are difficult to explore and mine as compared to surficial or bulk minerals. The exploration licence granted through auction shall permits the licencee to undertake reconnaissance and prospecting operations for critical and deep-seated minerals.

The Mines and Minerals (Development and Regulation) Act, 1957 was amended in September 2023 to introduce new mineral concession of Exploration Licence for 29 critical and deep-seated minerals.

It is expected that Junior Mining Companies will bring in expertise from across the world in acquisition, processing and interpretation of exploration data, and leverage the risk-taking ability in discovery of deep-seated mineral deposits through adoption of expertise and latest technologies.Earlier this year, the centre handed over 20 blocks of EL to Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Telangana, Uttar Pradesh and Union Territories of Jammu & Kashmir and Ladakh. These Blocks contain Tin, Tungsten, Rare Earth Elements, Vanadium, Diamond, Copper, Zinc, Lithium, Platinum Group Elements (PGE), Potash, and Zirconium.