India is scheduled to hold its first round of vital minerals auctions on November 29

 India is scheduled to hold its first round of vital minerals auctions on November 29

The ministry said that a transparent two-stage ascending auction method would be used for the online auction, and that qualified bidders will be chosen based on their percentage of the mineral's worth that is highest.

The first significant mineral auction is scheduled on November 29

On November 29, the mines ministry will start auctioning off the first batch of strategic and vital minerals, such graphite and lithium, in an effort to boost the country's domestic supply of raw materials needed to support its shift to renewable energy. The procedure would be started by Union Minister of Coal, Mines, and Parliamentary Affairs Pralhad Joshi, the ministry said in a statement on November 28.

This initiative coincides with the Mines Ministry's current work on developing a critical minerals strategy, which will include a roadmap for fortifying the critical mineral supply chain. The government said earlier this month that it will auction 20 blocks of essential minerals and that it would investigate indigenous technologies needed for these commodities' extraction and processing.

The ministry said that a transparent two-stage ascending forward auction method would be used for the online auction, and that qualified bidders will be chosen on the basis of their greatest percentage of the mineral's stated value.

The state governments will get the proceeds from these auctions. According to the government, 20 blocks of minerals will be put up for sale around the nation.

Make the shift to a low-carbon future

The action is being taken against the background of India's goal to attain 50% installed capacity of cumulative electricity from non-fossil sources by 2030. Growth will result from the plan's increased need for battery storage systems, wind and solar power installations, and electric vehicles. Demand for these vital minerals.

High concentrations of vital minerals, including cobalt, nickel, lithium, and other rare earth elements, are needed in the production of batteries. These raw resources are now entirely imported into India. The US, Belgium, China, Russia, Japan, and other nations are the country's main importers of these minerals, according to statistics from the ministry for 2020.

modifications to mining legislation

The Mines and Minerals (Development and Regulation) Amendment Bill was modified by the government in September, enabling private parties to investigate and extract these vital minerals. Previously, only government corporations were permitted to do so.

The Center authorized royalty rates last month: one percent for rare earth elements (REEs) and three percent apiece for lithium and niobium. Three percent for lithium, three percent for niobium, and one percent for rare earth elements are the royalty rates set by the government.