Critical minerals: Tin debuts on the block, government awaits technical support from global mining companies

The Ministry of Mines has launched the auction of 21 critical mineral blocks in its fourth tranche, marking the entry of rare metal tin onto the auction block. The government expects the auction process to be completed within two to three months, with titanium, potash and graphite among the critical minerals forming part of the block’s mines.

The government has also looked at mineral blocks that have not been mined and plans to explore them further to make them more attractive to mining companies.

Mines Secretary VL Kantha Rao hailed the success of the maiden auction, in which all 48 critical mineral blocks were completely auctioned, fetching premiums ranging from 13% to an impressive 400%.

Rao pointed out that the combined resources of the 21 mineral blocks being auctioned are valued at around ₹83,000 crore.

More importantly, he told CNBC-TV18 that it was crucial to reduce India’s dependence on mineral imports, emphasizing the urgency of operationalizing these blocks at the earliest.

As the government targets an accrual rate of 50 per cent for the auction of mineral blocks to begin successfully, the secretary said royalty rates have been reduced from 10 per cent to 2 per cent and minimum prices Offers were kept low to keep them attractive to investors.

With all major domestic players in the mining sector bidding for critical minerals, the secretary termed the premium quoted in six mineral blocks as “encouraging”, while highlighting the 400 per cent premium attracted for phosphorite, with India being totally dependent on imports of this mineral. .

The government also hopes that large foreign mining players will establish Indian subsidiaries to participate in mineral auctions, as only some global mining players have the critical technology required for the next stage of transformation.