Central Government Launches Auction of Critical Mineral Blocks and Exploration Licences

The Union Ministry of Mines has launched the ninth tranche of e-auctions for critical and strategic mineral blocks and the third tranche of auctions for the grant of Exploration Licence (EL) blocks. The programme was inaugurated by the Union Minister for Coal and Mines, Shri G. Kishan Reddy. The Chief Minister of Goa, Dr. Pramod Sawant, was present as the chief guest, along with Union Minister of State Shri Satish Chandra Dubey. The event was attended by senior officials of the Government of India, representatives of state governments, Public Sector Undertakings (PSUs), and media representatives.

According to a PIB Delhi report, a total of 20 critical and strategic mineral blocks have been put up for auction in the ninth tranche under the provisions of the Mineral (Auction) Rules. In the previous eight tranches, a total of 100 unique critical and strategic mineral blocks were offered, of which 64 blocks were successfully auctioned, representing a success rate of 64%.

The ninth tranche includes blocks from various states. These include 1 block of graphite in Andhra Pradesh, 1 block of glaucophane in Bihar, and 5 blocks of phosphorite-limestone, vanadium, gallium, titanium, rare earth elements (REE), bauxite, aluminous laterite, and glaucophane in Chhattisgarh. In Madhya Pradesh, 2 blocks of vanadium, gallium, titanium, bauxite, and aluminous laterite have been offered, while Maharashtra has 2 blocks of rare earth elements, rare metals, vanadium, gallium, titanium, bauxite, and aluminous laterite. Rajasthan has 3 blocks of potash and halite as well as tungsten, Telangana has 3 blocks of titanium, vanadium, scandium, gallium, and aluminous laterite, and West Bengal has 3 blocks of graphite, rare earth elements, and rare metals.

These blocks are of immense importance for strategic sectors such as clean energy technology, electric mobility, advanced manufacturing, fertilisers, defence, aerospace, and electronics. This will strengthen India's mineral security and support the country's energy transition.

Additionally, the Ministry has launched the third tranche of auctions for Exploration Licences (EL). These licences, introduced under Section 10BA of the MMDR Act, provide private industries the opportunity to invest in the exploration of 29 critical and deep-seated minerals before mining commences. So far, 11 EL blocks have been successfully auctioned in two tranches.

Details of the EL blocks under the third tranche include 1 block of copper in Madhya Pradesh, 1 block of vanadium in Maharashtra, 1 block of rare earth elements in West Bengal, 4 blocks of potash and halite as well as rare earth elements and associated mineralisation in Rajasthan, 3 blocks of rare earth elements in Telangana, and 1 block of vanadium and associated mineralisation in Gujarat.

To improve auction outcomes, the government notified the Mineral (Auction) Third Amendment Rules, 2026, on October 16, 2026. Under this amendment, the minimum number of technically qualified bidders required for the second round for Part D minerals has been reduced from three to two. This change has been made to address the reasons why blocks remained unsold previously. Now, Letters of Intent (LoI) will be issued automatically through the Unified Mining Portal. These amendments build upon the Mineral (Auction) Second Amendment Rules, 2025, and efforts regarding insurance surety bonds, aiming to enhance the ease of doing business and investor confidence.

Sale of tender documents for both auction processes commenced on Thursday, November 05, 2026. The last date to purchase tender documents is Friday, January 01, 2027 (at 17:00 hours), and the last date to submit bids (technical bid and initial price offer) is Thursday, January 07, 2027 (at 17:00 hours).

The auction of critical mineral blocks (composite licence and mining lease) will be conducted through an online transparent two-stage ascending forward auction, where the bidder offering the highest revenue share will win. Meanwhile, the auction of Exploration Licence blocks will be conducted through an online two-stage descending reverse auction, where the bidder offering the lowest percentage of the future lessee's revenue share will be the winner. All these details are available on the MSTC e-auction platform.

Through this launch and these amendments, the government is moving towards increasing the availability of critical and strategic minerals in the country, encouraging private sector participation, and creating a globally competitive mineral ecosystem through responsible mining.