India Launches First-Ever Auction for Exploration Licences to Tap Critical Mineral Resources

India has taken a significant leap towards boosting its mineral self-reliance with the launch of its first-ever auction for exploration licences (ELs) targeting critical and deep-seated minerals. Union Minister G Kishan Reddy and Chief Minister of Goa Pramod Sawant jointly launched the auction on Thursday, March 13, 2025, offering 13 exploration blocks across 10 states. These blocks, which contain vital minerals such as rare earth elements (REEs), copper, gold, zinc, and platinum group elements (PGEs), are set to attract private investment in the nation’s mineral exploration sector.

The Exploration Licence (EL) auction, which will be conducted through a transparent online bidding system, is a direct result of the recently amended Mines and Minerals (Development and Regulation) (MMDR) Act, 2023. This legislative change paves the way for private companies to explore and develop critical minerals, with the government offering incentives such as long-term income based on successful discoveries. The move is expected to support India’s ambitious energy transition, as minerals like REEs and cobalt are essential for manufacturing renewable energy technologies, electric vehicles, and defence systems.

“For the first time, India is opening up systematic early-stage exploration through a structured and transparent auction process,” said Union Mines Minister G Kishan Reddy in the statement. “This reform will accelerate the discovery of critical and deep-seated minerals, boost investor confidence, and pave the way for a self-reliant, future-ready mineral ecosystem aligned with India’s clean energy and industrial ambitions.”

Mineral Blocks on Offer

The 13 exploration blocks offered in the first phase of the auction span a variety of high-value minerals, including gold, copper, diamonds, and vanadium, spread across the states of Chhattisgarh, Jharkhand, Maharashtra, Andhra Pradesh, Arunachal Pradesh, Gujarat, Karnataka, Madhya Pradesh, Rajasthan, and Uttar Pradesh. Among these, Chhattisgarh will auction diamond deposits, while Jharkhand offers blocks with both gold and copper reserves. States like Andhra Pradesh and Gujarat will auction blocks containing REEs and vanadium, respectively.

These minerals are crucial to sectors ranging from electronics and renewable energy to aerospace and defence. As the demand for these materials rises globally, especially for clean energy technologies, India aims to strengthen its role in the global mineral supply chain.

Private Investment and Mineral Security

The auction is part of India’s broader strategy to reduce dependency on foreign mineral imports. With a focus on minerals such as lithium, cobalt, and copper, which are essential for clean energy and electric vehicle production, this move is designed to encourage private sector participation in the exploration process. It is expected to provide valuable data on mineral reserves, which will, in turn, attract more investors and foster the development of a more robust mining industry.

To complement domestic efforts, India is also strengthening its international partnerships with mineral-rich countries. The government has been in talks with the Democratic Republic of Congo (DRC), one of the largest producers of cobalt, to secure a stable supply of critical minerals, according to a report by Reuters, and the DRC recently halted cobalt exports in response to production surpluses and falling prices, highlighting the volatility of the global mineral market.

Looking Ahead

The success of this auction is expected to lead to more such initiatives, unlocking the vast potential of India’s untapped mineral resources. In addition to helping meet the growing domestic demand, it will also strengthen India’s position in the global minerals market, particularly as countries around the world shift towards sustainable energy solutions.