Centre gives one month relaxation in timelines for critical mineral auctions

The centre has given a one-month relaxation in timelines to facilitate site visits by bidders for India’s first critical mineral auctions. According to a top Mines Ministry official, bid documents have been sold for each of the 20 mines on offer, indicating healthy interest for the same. Under the revised timeline, due date for technical bid is February 20, while forward e-auction will be conducted from March 15 to April 2.

Preferred bidders will be announced from March 19 to April 8.

The government recently listed 24 minerals as strategic and critical for the country. These include graphite, molybdenum, lithium and platinum group elements. Efforts are now underway to speedily auction mining leases for these minerals. Mines ae spread across Jammu and Kashmir, Rajasthan, Madhya Pradesh, Chhattisgarh, and Tamil Nadu among others.


This is India’s first attempt to auction critical minerals in the country. To sweeten the deal, the Mines ministry has suggested capping the performance security and upfront amount for a mining lease at Rs 500 crore each. A cap of Rs 250 crore is in the works for performance security under a composite licence.

A mining licence or lease is for areas that have proven reserves of minerals. A composite licence, also called a prospecting-cum-mining licence, is for areas where preliminary exploration has been done but further exploration will be required by mining companies to establish more resources.

According to Yogesh Daruka, Partner, Mining Advisory at PwC, the critical mineral mines being bid out will require more expertise that conventional mining for iron ore or coal which usually happens in the country. “There is also scope to use automation in mining operations to improve safety and increase output,” he said while adding that incentives can be considered to reduce the upfront cost of procuring and hiring the newer machinery.