Andaman Offshore Mineral Auction
India launches a fresh auction for two Andaman offshore mineral blocks targeting clean energy.
Anonymous
Key Points
1
The blocks are West Sewell Ridge-01, off Great Nicobar Island, covering 1,000 square kilometers, and Sewell Rise-01, near Great Nicobar in the southern part of Sewell Rise, covering 632 square kilometers.
2
The auction is being held under the Offshore Areas Mineral (Development and Regulation) Act, 2002, and the Offshore Areas Mineral (Auction) Rules, 2024, as amended; 2023 amendments empowered the Centre to auction offshore mineral blocks.
3
After the earlier auction struggled to attract bidders, the Mines Ministry lowered the minimum number of technically qualified bidders needed for a first-attempt auction from three to two.
4
The earlier auction, launched in November 2024, offered 13 blocks—seven near Great Nicobar and six in the Arabian Sea off Kerala and Gujarat. Reuters reported that the tranche was valued at more than INR 1.5 trillion ($16 billion).
India has launched an auction for two offshore mineral blocks in the Andaman Sea covering 1,632 square kilometers, according to Hindustan Times. The blocks—West Sewell Ridge-01 and Sewell Rise-01—contain valuable metals like cobalt, nickel, and rare earths used in electric vehicles and clean-energy technology. Business Standard reports the move aims to strengthen India's domestic mineral security and attract investment in systematic exploration.
This auction follows the collapse of a larger effort in November 2024, when India offered 13 offshore blocks valued at more than 1.5 trillion rupees ($16 billion). Reuters reported that bid fell short because too few qualified companies showed interest. India's Mines Ministry responded by lowering the minimum bidders needed for future auctions from three to two.
Why India Needs These Rare Mineral Deposits
The two blocks sit in strategically important areas off Great Nicobar Island in the southern Andaman Sea, News18 reports. They hold polymetallic nodules and crusts rich in cobalt, nickel, manganese, copper, and rare earth elements. These metals power electric vehicles, smartphones, wind turbines, and defense systems—industries India wants to build domestically rather than depend on foreign imports.
How the Earlier Auction Failed to Attract Bidders
In November 2024, India offered 13 offshore blocks across two seas: seven near Great Nicobar and six off the coasts of Kerala and Gujarat. Reuters valued that tranche at more than $16 billion. But the auction attracted too few technically qualified bidders to meet the government's rules, forcing officials to cancel it and reassess their strategy.
The Ministry of Mines then made a key change: it reduced the minimum number of qualified bidders required for a first-attempt auction from three to two. This lower bar aims to make future auctions more realistic. The Hindu Business Line notes the new auction operates under updated offshore mineral rules from 2024.
Legal Framework Empowers the Centre to Auction Blocks
The auction is governed by the Offshore Areas Mineral Development and Regulation Act of 2002 and updated Auction Rules from 2024. Business Standard explains that 2023 amendments gave India's central government the power to auction offshore mineral blocks directly. The new composite licences grant winners both exploration rights and the ability to move into mining once resources are confirmed.
India's Push for Responsible Mineral Extraction
The government emphasized that development of these blocks must follow "appropriate technologies and responsible practices," Rediff Money reports. This language signals India's commitment to environmental safeguards in deep-sea mining—a concern raised by environmental groups worldwide. By attracting serious bidders with clear rules, India hopes to move from failed auctions to actual mineral production in the coming years.
Sentiment
Mostly PositiveNEGATIVENEUTRALPOSITIVE
Publishers
15
Articles
48
Reach
63
A
AnonymousAuthor
