Oil India Ltd, Vedanta, Hindustan Zinc among top bidders in mineral auctions

On Thursday, the Ministry of Mines announced the preferred bidders for eight critical mineral blocks awarded in the fourth round of auctions. The companies that secured these blocks include Hindustan Zinc Limited, Vedanta, Oil India, Orissa Metaliks, and Mamco Mining. With this latest round, the total number of blocks awarded reaches 22, which represents less than 45 percent of the 49 blocks offered since the auction process began in November 2023.

The latest awards follow a second-round auction held after the initial round failed to attract sufficient interest, as the government mandates at least three technically qualified bids per block for a successful first-round auction.

In the second round, however, a single bidder can secure a block under the revised Mineral (Auction) Amendment Rules, 2024. Of the 22 blocks awarded so far, nearly half—10 blocks—were allocated through the second-round process.  

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In the fourth auction round, the government offered 11 new blocks and 10 previously unclaimed ones. Among the new blocks, only two found takers: Mamco Mining secured the Endolin-Isholin Graphite Block in Arunachal Pradesh and the Barwar Phosphorite and Limestone Block in Uttar Pradesh, with auction premiums of 237.50 percent and 320.00 percent, respectively.  

In the mining industry, the auction premium refers to the extra percentage or revenue share that a mining company agrees to pay the government in addition to the base royalty. This premium is specified during the bidding process and represents the company's portion of the proceeds generated from mining activities.

Vedanta Limited secured two blocks: the Depo Vanadium and Graphite Block in Arunachal Pradesh and the Sanyasikoppa Cobalt, Manganese, and Iron Block in Karnataka, with auction premiums of 2.55 percent and 45.00 percent, respectively.  

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Hindustan Zinc Limited was awarded the Balepalyam Tungsten Block in Andhra Pradesh and the Nayakkarpatti Tungsten Block in Tamil Nadu, with premiums of 6.55 percent and 5.05 percent.  Oil India Limited won the Phop Graphite and Vanadium Block in Arunachal Pradesh with a premium of 76.05 percent. Orissa Metaliks Private Limited acquired the Radhpu Graphite and Vanadium Block in the same state, offering a premium of 95.00 percent.  

The round also marked the successful auction of tungsten and cobalt blocks for the first time.

These critical minerals are essential for high-tech industries, defense, and energy storage applications, and the government aims to reduce import dependence by expanding domestic production. 

 This fourth tranche of auctions was significant for India’s mineral landscape, particularly in the northeastern region, where four blocks were awarded for the first time.  

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