India Rules Out Revival of Offshore Mining Auctions in Near Term

India Scraps Plans for Deep-Sea Mining Rights Auction

India has shelved plans to auction deep-sea mining rights due to concerns over a lack of technological preparedness and the expectation of a weak response from potential bidders. The decision comes after repeated extensions to the bidding timeline, which ultimately failed to yield the desired interest.

In November 2024, the Indian government announced the first auction of 13 offshore mineral blocks, including three lime mud blocks, three construction sands blocks, and seven polymetallic nodules blocks. The blocks contained critical minerals such as cobalt, copper, manganese, and nickel, essential for electric vehicles and solar panels.

The auction was initially valued at over 1.5 trillion rupees, a substantial investment opportunity. However, in December last year, the government was forced to cancel the auction due to a lack of interest from bidders. According to sources, the process requires specialized mining technology, which Indian companies currently lack. Furthermore, significant investments are required for such mining activities, and domestic miners are not prepared to commit to these endeavors.

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The Indian authorities may explore alternative options, such as auctioning different blocks to gauge interest among miners. This would require fresh assessments of the blocks, a process that would take some time.

India's experience with onshore critical minerals auctions has been limited, with only about 60% of the 76 blocks successfully awarded to bidders. The federal mines ministry has declined to comment on the matter.