Sixth tranche of auction for critical and strategic minerals to be launched on Tuesday

The sixth tranche of auction for critical and strategic minerals would be launched on Tuesday (September 16, 2025), the Ministry of Mines informed on Monday (September 15, 2025) evening. The latest round would feature 4 mineral blocks where full-fledged mining operations can be undertaken, alongside 19 blocks with a license-cum-mining lease would be granted to prospect the mines and thereafter commence mining. Stationed across “multiple States”, the Ministry informed the mines house several minerals including rare-earths, tungsten, lithium, cobalt, gallium, potash and gallium, among others.

Striving to increase the availability of critical and strategic minerals in the country, the government amended the Mines and Minerals (Development and Regulation) Amendment Act in 2023. It introduced an auction-based regime to provision exploratory licenses for 29 critical and deep-seated minerals, including lithium, copper, silver, diamond and gold by involving the private sector. The regime for the first time granted exploratory licences for access to mines, with the objective of delineating blocks bearing mining prospects, which could be auctioned later at a premium. The (erstwhile) licensees receive a revenue share from the premium for fifty years.

Thirty-four blocks have been auctioned till date spanning across five tranches of auctions, encompassing 55 critical and strategic mineral blocks, and across multiple States. The entire revenue generated from the auction accrue to the respective State governments.

Exploration of critical minerals and rare earths have emerged as a policy imperative for New Delhi in light of the global headwinds triggered by U.S. President Donald Trump’s tariff regime and China’s retaliation blocking export of critical minerals. The Paris-headquartered International Energy Association (IEA) had assessed in their Global Critical Minerals Outlook 2025, that the tariff-induced uncertainty carved a “challenging environment for investors, potentially deterring some critical mineral supply projects, including for minerals like copper and lithium which medium-term supply deficits”.

IEA had also made a note of India possessing “major untapped resource potential”. Imperative to recall, the Union Cabinet September 3 had approved a ₹1,500 crore incentive scheme to develop recycling capacity in the country for the separation and production of critical minerals from secondary sources.

Other than commencement of the next tranche, the Ministry would also announce the successful bidders of the first tranche of auctions for exploratory license. Launched in March this year, the auction of 7 deep-seated and critical mineral blocks, of the total 13 exploration blocks put to auction, would also conclude on Tuesday. The mines span across six States, namely, Andhra Pradesh, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra and Rajasthan.