**India’s First Deep-Sea Mineral Auction Indefinitely Postponed: Here’s Why**
*By Mudit Dube | Sep 29, 2025, 05:20 PM*
India’s maiden auction of deep-sea mineral blocks, which are rich in critical minerals, has been indefinitely postponed. The decision follows a lukewarm response from potential bidders, according to government officials who spoke to Moneycontrol.
### Initial Auction and Response
The auction was launched in November, offering 13 mineral blocks, which included three lime mud blocks, three construction sand blocks, and seven polymetallic nodule blocks. As this was India’s first attempt at such an auction, some companies submitted numerous queries, highlighting the novelty and complexity of deep-sea mineral exploration.
### Schedule Changes and Extensions
Originally, the bidding deadline was set for February 27. However, the deadline was extended multiple times—to April 2, May 1, and then August 22. Despite these extensions, the auction did not take place on August 22 as planned. A government official confirmed that the postponement aims to attract wider participation in the auction. Currently, a new date for the event has yet to be finalized.
### Strategic Importance of the Mineral Deposits
The auctioned mineral blocks cover a vast area stretching from the Arabian Sea in the west to the Andaman Sea in the east. These blocks are rich in critical minerals such as cobalt, copper, manganese, and nickel. Such resources are essential components for electric vehicles (EVs), defense equipment, and renewable energy technologies.
### Environmental and Local Concerns
Despite the strategic importance, political parties in Kerala and local fishing communities have voiced concerns regarding the environmental risks of undersea mineral exploration. These apprehensions have added complexity to the auction process.
### Technological Challenges
Experts have highlighted technology as the biggest hurdle in India’s deep-sea mineral exploration efforts. Arvind Virmani, a member of NITI Aayog, noted during the India Mining Summit on September 18 that the entire global supply chain, including technology, is highly concentrated, with countries worldwide racing to develop new technologies to access these resources.
### Addressing China’s Dominance
China remains the world’s largest producer of critical minerals, including rare earth elements vital for electronics, EV batteries, and defense systems. Beijing’s export restrictions on certain critical minerals have raised global concerns over supply security.
In response, India launched the National Critical Mineral Mission in January. This strategic initiative aims to boost exploration activities, enhance domestic processing capabilities, and promote recycling of critical minerals to reduce dependency on imports and strengthen India’s position in the global supply chain.
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India’s deep-sea mineral auction marks an important step towards securing essential resources for future technologies. However, challenges related to bidder participation, technology, and environmental concerns must be addressed to move forward successfully.
https://www.newsbytesapp.com/news/business/india-s-first-deep-sea-mineral-auction-postponed-amid-poor-response/story