Tarun Karthick
Campbell Bay, 30 November 2024
In a historic move, India has initiated its first-ever auction of offshore mineral blocks, marking a significant step towards tapping the nation’s vast undersea resources. Among the 13 blocks up for bidding, seven located off the coast of Great Nicobar in the Andaman Sea have drawn particular attention due to their richness in critical minerals essential for advanced technologies and green energy solutions.
Unveiling the Mineral Potential of Great Nicobar’s Offshore Reserves:
The seven blocks in the West Sewell Ridge near Great Nicobar contain polymetallic nodules and crusts, a treasure trove of critical minerals such as cobalt, nickel, copper, manganese, and rare earth elements (REE). These resources are crucial for high-demand sectors, including the production of electric vehicle batteries, renewable energy systems, and cutting-edge electronics.
Located within India’s Exclusive Economic Zone (EEZ), these blocks are part of a broader effort to harness the mineral wealth beneath India’s 2.37 million sq. km of maritime territory. The Ministry of Mines emphasized the strategic importance of these resources, which could help reduce India’s dependence on imported minerals and bolster domestic supply chains.
India’s Offshore Mineral Vision:
The auction is the first to be conducted under the amended Offshore Areas Mineral (Development and Regulation) Act, 2002, which was revised in August 2023 to mandate auctions as the sole mode of allocation for offshore mineral blocks. This reform aims to streamline the process of granting production leases and composite licenses for exploration and extraction, creating a more efficient framework for undersea resource utilisation.
Union Minister of Coal and Mines, Mr. G. Kishan Reddy, while inaugurating the auction, described it as a transformative moment in India’s mining sector. “For nearly two decades, offshore mining potential remained untapped. This auction marks India’s entry into a new frontier of mineral exploration, enabling us to harness our blue economy,” Reddy stated.
The Geological Survey of India (GSI) has conducted extensive studies on India’s offshore regions, identifying areas with significant geological potential. To date, only a third of India’s EEZ has been explored, and this auction represents a major step toward unlocking the country’s untapped maritime resources.
Beyond Great Nicobar, Other Blocks on Offer:
While the seven Great Nicobar blocks have captured the spotlight, the auction also includes six other blocks located in the Arabian Sea. These comprise:
– Three blocks near Kollam, Kerala: Rich in construction sand, these blocks are essential for infrastructure development, particularly in the production of concrete and building materials.
– Three blocks near Porbandar, Gujarat: Containing lime mud, a by-product high in calcium carbonate, these blocks are valuable for cement production, water treatment, and soil stabilization.
Though these blocks cater to different industrial needs, their inclusion highlights the government’s balanced approach to meeting infrastructure and industrial requirements while focusing on strategic minerals in the Andaman Sea.
Strategic Role of Great Nicobar:
The choice to auction seven blocks near Great Nicobar reflects the government’s growing emphasis on the island’s strategic significance. Great Nicobar is already a key focus area, with ongoing investments in a transshipment port project and improved air connectivity. The mineral-rich seabed near its shores is expected to complement these initiatives, turning the island into a hub for economic and strategic development.
Polymetallic nodules and crusts, abundant in these blocks, are particularly challenging to extract due to their deep-sea location, but they hold immense potential. These resources can support India’s transition to a green economy by reducing dependence on imports of critical minerals and fostering domestic industries.
A Step Toward Self-Reliance:
V. L. Kantha Rao, Secretary of the Ministry of Mines, underscored the importance of the auction in diversifying India’s mineral sources and reducing reliance on imports. “This initiative not only enhances our resource security but also strengthens our commitment to achieving net-zero emissions by 2070. By leveraging sustainable deep-sea mining technologies, we aim to build a resilient India,” he said.
Looking Ahead:
As India begins this new chapter in offshore mineral exploration, all eyes are on Great Nicobar and its transformative potential. The auction is not merely an economic venture but also a strategic initiative that underscores India’s resolve to become self-reliant in critical mineral resources.
Great Nicobar, with its abundant offshore reserves, is poised to play a pivotal role in this journey, becoming a cornerstone of India’s efforts to achieve sustainable industrial growth and energy security.