Govt to auction 7 seabed mineral blocks near Great Nicobar Island

At the auction launch, Mines Secretary VL Kantha Rao stated that the 13 blocks were chosen after the Geological Survey of India (GSI) explored half of around 6 lakh square kilometers it identified as potential seabed mining areas.

“After the data that we have generated and the exploration work that we have done, it is now most important that we bring the private industry into the mining of these metals,” Rao said.

“To make it very attractive for the industry, we have kept the royalty rates at a very minimum level. We have selected some of the best blocks that are available, which are commercially viable and we are now looking for the industry partners who will come and partner with us in exploiting this mineral wealth, in making use of this mineral wealth for the economic development of the country,” he added.

Rao also announced that the ministry plans to conduct roadshows in countries such as the UK, Netherlands, and South Africa, which have advanced expertise in offshore mining technologies.

All 13 blocks are being auctioned for a composite licence, requiring winning bidders to conduct further exploration before commencing mining operations. Tender documents will be available from December 3, with the deadline for bid submissions set for February 27 next year. The reserve price for all blocks has been fixed at 1 percent.

These blocks lie within India’s Exclusive Economic Zone (EEZ), extending 200 nautical miles into the sea. Of the 13 blocks, three are off the Gujarat coast near Porbandar, while three off Kerala are located near Kollam.

The remaining seven, in the Andaman Sea, are situated on the West Sewell Ridge east of Great Nicobar Island, where the National Institute of Ocean Technology (NIOT) recently completed exploratory mining trials using an indigenously developed sea mining system. Rich in polymetallic nodules and crusts containing manganese, nickel, cobalt, and copper, these blocks hold minerals critical for clean energy technologies such as electric vehicle batteries and wind turbines.

The Great Nicobar Island is also the site of the central government’s Rs 72,000 crore mega infrastructure project, which includes a transshipment port, an airport, a gas and solar power plant, and two greenfield coastal cities. The project was initially conceived by the government’s apex think tank, NITI Aayog.

However, the project has sparked controversy due to environmental concerns, including potential harm to coral reefs, leatherback turtle nesting sites, Nicobar megapode nesting mounds, and the ancestral lands of the Great Nicobarese Scheduled Tribe community. Next month, the National Green Tribunal (NGT) is scheduled to hear ongoing petitions challenging the green clearances granted to the project by the Ministry of Environment, Forest and Climate Change.