In a significant step, the governments of Karnataka, Rajasthan, Maharashtra, Madhya Pradesh, Andhra Pradesh and Chhattisgarh have issued notice inviting tenders (NIT) for the auction of exploration licence to unlock the potential of critical and deep-seated minerals.
The exploration licence (EL) regime was introduced through amendment to the Mines and Minerals (Development and Regulation) Act, 1957 to further boost exploration and mining of 29 critical and deep-seated minerals in the country. EL can be granted for minerals specified in the Seventh Schedule through auction.
Karnataka had launched the auction of one block of gold, copper and lithium in Raichur and Yadgir districts, while Rajasthan launched the auction of three blocks of rare earth elements and metals, and Potash minerals in Barmer, Jodhpur, Hanumangarh, Churu, Bikaner, Sri Ganganagar, Jaipur, Nagaur and Sikar districts, a press release stated.
This momentum continued with Maharashtra announcing its NIT for two EL blocks on March 7 followed by Madhya Pradesh and Andhra Pradesh with two and one EL blocks, respectively on March 11. Chhattisgarh with three EL blocks on March 13 leading the total tally to 12 EL blocks expanding the reach of the exploration licence regime nationwide.
“Maharashtra issued NIT for two EL blocks of Lead, Zinc & Copper (Base Metal), and Diamond in Gadchiroli district, Madhya Pradesh issued NIT for two EL blocks of Diamond with Copper, Lead, Zinc, and associated minerals (Base Metal), PGE & Associated minerals in Shivpuri, Gwalior and Betul Districts whereas Andhra Pradesh has issued NIT for one block of Rare Earth Element in Chittoor and Tirupati Districts. Further, Govt. of Chhattisgarh issued NIT for three EL blocks for Diamond and Rare Earth Group Minerals in the districts of Kondagoan, Narayanpur and Bastar,” the release said.
“In order to expedite the launch of NIT for auction of Exploration Licence, State Governments worked tirelessly to prepare the blocks for auction and the central government provided the necessary prior approval for auction. To further support and handhold the State Governments, the model tender document for auction for grant of Exploration Licence was provided by the Ministry of Mines on 01.03.2024,” it said.
The Exploration Licence regime is aimed at expediting the exploration of critical minerals such as lithium, copper, silver, diamond, and gold. It involves active participation from the private sector. Through the auction process, the licensee will be permitted to conduct reconnaissance and prospecting operations to identify viable mining areas. The license holder will get a share of revenue from the auction premium for 50 years as per the auction bid. Further, the EL holder can transfer the license after the execution of the EL.
Details of the blocks, timelines, among others, can be accessed on MSTC e-auction platform at https://www.mstcecommerce.com/auctionhome/mlcln/