Centre scraps auction of nine critical mineral blocks

The government has cancelled the auction of nine critical and strategic mineral blocks, citing poor investor response and lack of qualified bidders. These blocks were put on the block in the seventh round of sale.

The development comes as a setback to the government’s efforts to ramp up domestic exploration and production of critical minerals that are central to the country’s push for energy security, clean-tech manufacturing and cutting down dependence on imports.

It also reflects the challenge of drawing private investment into riskier mineral assets, where technical complexities, higher capital costs and regulatory uncertainties tend to dampen bidding interest.

The government had cancelled several critical and strategic mineral block auctions in the previous rounds as well — 11 blocks in the sixth round, five in the fifth, 11 in the fourth, three in the third, 14 in the second and 13 in the first tranche.

“Since there were nil bids... the auction process for... two mineral blocks stands annulled,” the mines ministry said in a notice.