**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 for deep-sea mineral blocks, which are rich in critical minerals, has been indefinitely postponed. This development comes amid a lackluster response from potential bidders, government officials revealed to Moneycontrol.
Some companies had multiple queries regarding the auction, as it is the first time such an initiative has been launched in India. The auction was initially announced in November, offering 13 mineral blocks—comprising three lime mud blocks, three construction sand blocks, and seven polymetallic nodule blocks.
**Auction Schedule and Extensions**
The initial deadline for bidding was set for February 27, but it was extended multiple times—to April 2, then May 1, and later to August 22. However, the auction did not proceed on the last planned date.
An official confirmed that the government decided to postpone the auction to encourage wider participation from interested parties. A new date for the event has yet to be announced.
**About the Mineral Blocks**
The auctioned blocks are spread across seas 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—resources vital for the manufacturing of electric vehicles (EVs), defense equipment, and renewable energy technologies.
Despite the strategic importance of these minerals, the auction has faced resistance from political parties in Kerala and local fishing communities, who have raised environmental concerns over deep-sea mineral exploration.
**Technological Challenges**
Experts cite technology as the biggest hurdle in India’s endeavor to explore deep-sea minerals. Arvind Virmani, a member of Niti Aayog, remarked at the India Mining Summit on September 18, “Basically, the entire supply chain, including technology, has become concentrated. Now the whole world is scrambling to create new technologies.”
**Strategic Importance Amid Global Supply Concerns**
China currently dominates global production of critical minerals, including rare earth elements that are essential for electronics, EV batteries, and defense systems. This dominance has sparked worldwide concerns, particularly after China imposed export restrictions on certain minerals.
In response to the global supply crunch, India launched the National Critical Mineral Mission in January. This initiative aims to boost domestic exploration, enhance processing capabilities, and promote recycling of critical resources to reduce dependence on imports.
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India’s postponement of its first deep-sea mineral auction reflects the complex technological, environmental, and strategic challenges the country faces in tapping into these essential resources. The government continues to work towards a more inclusive and efficient auction process to unlock India’s potential in critical mineral supplies.
https://www.newsbytesapp.com/news/business/india-s-first-deep-sea-mineral-auction-postponed-amid-poor-response/story
