Union Coal Minister to launch 7th Tranche of Critical Mineral auctions tomorrow

New Delhi, Mar 22 (TNT): The Ministry of Mines will launch the seventh tranche of auctions for critical and strategic mineral blocks on Monday.

The auction will be inaugurated by Union Minister for Coal and Mines, G. Kishan Reddy, along with Minister of State, Satish Chandra Dubey.

Critical minerals are key to India’s economic growth and mineral security, particularly amid the global shift towards clean energy and advanced technologies.

Demand for minerals such as lithium, graphite, rare earth elements (REE), tungsten, vanadium and titanium has risen significantly, even as their limited availability and geographical concentration pose supply chain challenges globally.

To strengthen domestic supply, the Government amended the Mines and Minerals (Development and Regulation) Act, 1957, on August 17, 2023, identifying 24 minerals as critical and strategic. The amendment empowers the Centre to auction mining leases and composite licences for these minerals, with revenues accruing to the respective state governments.

So far, six tranches of auctions have been completed, with 46 blocks successfully auctioned, reflecting strong industry response and increasing confidence in India’s mineral sector.

In the seventh tranche, 19 blocks across multiple states will be offered under mining lease and composite licence categories. These include minerals crucial for clean energy, advanced technologies, fertilisers and strategic industries.

The government has also introduced reforms to streamline the auction process.

The Mineral (Auction) Second Amendment Rules, 2025, simplify post-auction procedures such as performance security, upfront payments and issuance of letters of intent.

The Mineral (Auction) Amendment Rules, 2026, allow insurance surety bonds as an alternative to bank guarantees, providing flexibility to bidders.

The auction will be conducted online through a transparent two-stage ascending forward auction process, with bidders selected based on the highest percentage of value of mineral dispatched quoted.

TNT KS