India Launches First-Ever Auction of Exploration Licences for Critical Minerals

New Delhi- Union Coal and Mines Minister G. Kishan Reddy on Thursday inaugurated India’s first-ever auction of Exploration Licences (ELs) for 13 critical mineral blocks, marking a transformative step in the country’s mineral exploration sector. The event, held in Dona Paula, Goa, also featured a roadshow on the 5th Tranche of Critical Mineral Blocks and the launch of AI Hackathon 2025, focused on “Mineral Targeting using AI.”

The auction includes exploration rights for minerals such as rare earth elements (REE), zinc, diamonds, copper, and platinum group elements (PGE), across states like Andhra Pradesh, Gujarat, Jharkhand, Maharashtra, Uttar Pradesh, Chhattisgarh, Rajasthan, and Karnataka.

“Today marks another milestone in India’s mining industry,” said Minister Reddy. “We are laying the foundation for a new era in mineral exploration — faster, more technologically driven, and globally competitive.”

The initiative follows the 2023 amendment to the Mines and Minerals (Development and Regulation) (MMDR) Act, aimed at encouraging private sector participation. Each licence will allow exploration over 1,000 square metres, with the government absorbing 50% of the financial risk if exploration yields no results.

Goa Chief Minister Pramod Sawant hailed the initiative, calling it a “bold step toward tapping India’s untapped mineral wealth.” He emphasized the importance of securing critical minerals for industries like electronics and green energy.

Mines Secretary V.L. Kantha Rao highlighted the significance of the auction, noting that “some of these minerals are currently 100% imported. This move will pave the way for self-reliance.”