Govt to auction two offshore mineral blocks in Andaman Sea

The government has launched the auction of two offshore mineral blocks in the Andaman Sea, seeking to tap deposits of cobalt, nickel, manganese, copper and rare earth elements as the country moves to expand domestic supplies of minerals critical to electric mobility, clean-energy technologies and advanced manufacturing.

Keshav Chandra, secretary, ministry of mines, on Thursday virtually launched the auction of Sewell Rise-01 and West Sewell Ridge-01 for grant of composite licences.

The two blocks, spread over more than 1,632 sq km, contain polymetallic nodules and crusts that could provide access to a range of strategically important minerals.

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Sewell Rise-01 is located in the southern part of Sewell Rise, while West Sewell Ridge-01 lies off Great Nicobar Island. The blocks are among the offshore areas being brought into the country’s mineral exploration framework as the government seeks to widen the resource base beyond conventional terrestrial deposits.

The move comes against the backdrop of rising demand for critical minerals used in batteries, renewable-energy equipment, electronics and other high-technology industries. Securing reliable supplies of such minerals has emerged as an important component of the country’s broader effort to strengthen mineral security and build domestic manufacturing capacity.

Chandra described offshore mineral resources as a new frontier for the country’s mineral sector and said systematic exploration could complement efforts to increase domestic mineral availability.

He stressed that development of offshore resources would require scientific and technological capabilities and must be undertaken in an environmentally responsible manner.

The secretary also called on industry, prospective bidders and capable exploration companies to participate actively in the auction and invest in technologies required for responsible resource development.

The sale of tender documents began on October 1.

A pre-bid conference will be held on November 4, while November 13 is the deadline for submission of queries. Tender documents can be purchased until December 21, and bids can be submitted until December 28, both up to 5pm.

The auction will be conducted through MSTC’s electronic platform under the Offshore Areas Mineral (Development and Regulation) Act, 2002, and the Offshore Areas Mineral (Auction) Rules, 2024, as amended.