In a surprising turn of events, the government has decided to scrap the auction of three critical mineral blocks, including a lithium mine in Jammu and Kashmir, due to a lower-than-required number of bidders. This decision comes as a setback to the government’s push towards cleaner alternatives and self-reliance in critical mineral supplies.
The three blocks that were up for auction included the Salal-Haimna Lithium, Titanium and Bauxite (Aluminous Laterite) Block in Jammu and Kashmir, Muskaniya-Gareriatola-Barwari Potash block in Jharkhand, and Kurunjakulam Graphite block in Tamil Nadu. However, as per a notice by the Mines Ministry, the auction had to be annulled as the required number of bids as per the mineral auction rules were not received.
This cancellation follows the government’s decision to cancel the auction of 14 blocks of critical minerals in the second tranche and the cancellation of 13 blocks in the first tranche due to a lukewarm response. The Centre has now launched the fourth round of auctions of critical and strategic mineral blocks, offering 21 mines in several states, including Arunachal Pradesh, Chhattisgarh, Jharkhand, Karnataka, Rajasthan, Maharashtra, and Uttar Pradesh.
These new blocks contain a variety of minerals such as graphite, glauconite, phosphorite, potash, nickel, PGE, phosphate, and rare earth elements (REE). The government’s efforts to secure a stable and self-reliant source of critical minerals continue with the launch of these new auctions.
Published on 28 July 2024 at 07:14 IST, this decision marks a significant development in the government’s mineral policy.
