Government calls off auction of 11 critical mineral blocks over poor response

The central government has canceled the auction for more than half of the 21 critical mineral blocks that were offered in the fourth round of bidding. This decision was made due to a lack of interest, as noted in a notification from the Ministry of Mines on the MSTC e-commerce portal. Eleven of the blocks did not receive the required minimum of three technically qualified bidders necessary to move forward with the auction process.

The success rate improved marginally after the Ministry of Mines conducted a second round of bidding for two blocks that initially drew fewer than three technically qualified bidders.

While the first round mandates at least three qualified bidders to advance to the financial bids stage, the second round permits progress with just one. The two blocks were successfully auctioned in the second round, lifting the total number of auctioned blocks to 10. 

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The ministry noted that four blocks attracted no bids, while seven blocks failed to secure the minimum of three technically qualified bidders. The fourth-round offering included a range of critical mineral blocks, such as glauconite in Chhattisgarh; rare earth elements (REE) and associated minerals like copper and gold in Arunachal Pradesh; tungsten in Chhattisgarh; phosphorite and limestone in Chhattisgarh; phosphate and REE in Karnataka; nickel and platinum group elements (PGE) in Karnataka; potash and halite (two blocks) in Rajasthan; and REE in Uttar Pradesh. 

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Since the inception of critical mineral auctions, the ministry has successfully auctioned 24 of 49 blocks, translating to a success rate of 48.98 per cent. “Out of 48 blocks put to e-auction, 24 have been successfully auctioned, including four mining lease (ML) blocks and 20 composite license (CL) blocks,” the Ministry of Mines said in November.

However, one tungsten block in Tamil Nadu remains mired in a legal dispute between the state and the central government. The lack of detailed resource data has hampered the government’s plans to achieve self-sufficiency in critical minerals.

Around 10 per cent of total mineral blocks are designated for mining leases, typically auctioned at the G2 level, which provides sufficient resource clarity to enable immediate mining by successful bidders. 

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