Centre launches auction of two offshore mineral blocks in Andaman Sea

The Indian government recently announced the auction of two offshore mineral blocks located in the Andaman Sea. These blocks, namely Sewell Rise-01 and West Sewell Ridge-01, span over 1,632 square kilometres and are strategically significant areas. The mineral deposits within these blocks encompass various valuable resources such as cobalt, nickel, manganese, copper, and rare earth elements.

These minerals play a pivotal role in advanced manufacturing, clean energy technologies, electric mobility, electronics, and other strategic applications.

Keshav Chandra, the Secretary of the Ministry of Mines, virtually inaugurated the auction of these offshore mineral blocks. This initiative represents a significant stride towards unlocking India's offshore mineral potential and enhancing the country's long-term mineral security. Chandra emphasized the importance of offshore mineral resources as an emerging frontier for the Indian mineral sector and stressed the importance of scientific, technological, and environmentally responsible development of these resources.

He invited prospective bidders, industry stakeholders, and competent explorers to actively participate in the auction and contribute to the success of this endeavor. Chandra also called for greater participation and investment in offshore exploration, highlighting the need for suitable technologies to ensure responsible resource development. Offshore mineral resources are deemed crucial for technological advancements, the transition to green energy, and the establishment of resilient supply chains.

In November 2024, the government initiated the first round of mineral block auctions in offshore areas, offering 13 mines across the Arabian Sea and Andaman Sea. However, subsequent to this announcement, the auction was subsequently canceled.