The Indian government has canceled the auction of three critical mineral blocks, including a lithium mine in Jammu and Kashmir, under the third tranche of mine sales. This decision was made due to a lower-than-required number of bidders. The auction was a part of the government’s push towards cleaner alternatives and self-reliance in critical mineral supplies. The three blocks in question were: the Salal-Haimna Lithium, Titanium, and Bauxite (Aluminous Laterite) Block in Jammu and Kashmir; the Muskaniya-Gareriatola-Barwari Potash block in Jharkhand; and the Kurunjakulam Graphite block in Tamil Nadu.
The Mines Ministry announced the annulment of the auction, stating that the “required number of bids as per the mineral auction rules have not been received.” The ministry had initially put seven critical mineral blocks up for sale in the third round of auctions on March 14. These blocks, which had received less than three bids in the first tranche, included critical minerals such as Glauconite, Graphite, Nickel, PGE, Potash, Lithium, and Titanium, and were spread across the states of Bihar, Jharkhand, Tamil Nadu, Uttar Pradesh, and the Union Territory of Jammu and Kashmir.
This latest cancellation follows a similar decision last month where the government canceled the auction of 14 blocks of critical minerals launched in the second tranche. In the first tranche of mineral sales, the Centre had also canceled the auction for 13 of the 20 blocks put on sale due to a lackluster response.
Despite these setbacks, the Centre launched the fourth round of auctions of critical and strategic mineral blocks last month, offering 21 mines in several states including Arunachal Pradesh, Chhattisgarh, Jharkhand, Karnataka, Rajasthan, Maharashtra, and Uttar Pradesh. Of these 21 blocks, 11 are new, spanning Arunachal Pradesh, Chhattisgarh, Jharkhand, Karnataka, Rajasthan, and Uttar Pradesh. These blocks contain a variety of minerals including Graphite, Glauconite, Phosphorite, Potash, Nickel, PGE, Phosphate, and Rare Earth Elements (REE). The government’s continued efforts to promote domestic mining of critical minerals highlight the importance of these resources for the country’s future economic and energy security.
