Government Halts Auction of Critical Mineral Blocks Amid Lackluster Biding Response

The government has cancelled the auction of 14 critical mineral blocks from the second tranche due to insufficient bids. Despite putting 18 mines up for sale, only a few bids were received. Critical minerals play a vital role in technological advancements, and their scarcity can jeopardize supply chains.

The government has announced the cessation of the auction process for 14 critical mineral blocks in the second round, citing insufficient bids. The mines ministry initially offered 18 mines for sale in February. However, a significant number of these blocks received inadequate bid responses, leading to the annulment of the auction process.

According to a recent notice posted on the MSTC website by the ministry, five blocks had no bids, while the remaining nine received fewer than the required three bids. These blocks are spread across various states including Arunachal Pradesh, Maharashtra, Rajasthan, Andhra Pradesh, Chhattisgarh, Karnataka, and Tamil Nadu.

Critical minerals, foundational to modern industrial economies and essential for technological progress, are now posing supply chain vulnerabilities due to their scarcity and dependence on specific nations for processing. The recent amendments to the Mines and Minerals (Development and Regulation) Act, 1957, had empowered the Centre to grant mineral concessions for these vital resources. Nonetheless, a prior auction had also seen cancellations due to tepid responses.

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