India: Govt announces preferred bidders for 8 blocks of strategic minerals

• HZL, Mamco, Vedanta win 2 blocks each
  
  
• Announcement of 2 more blocks expected in Dec'24
  
  

The Ministry of Mines, having undertaken the responsibility of auctioning critical and strategic mineral blocks centrally, has concluded the auction of eight critical mineral blocks, launched under Tranche IV.

On 24 June 2024, the ministry invited tenders for 20 composite mining licences and one mining licence. However, only 10 of these progressed past the technical bid stage, of which the announcement of preferred bidders is expected on 2 December 2024.

Key details of the successful bidders are as follows:

• Hindustan Zinc emerged as the preferred bidder for two tungsten mines, one in Andhra Pradesh (Balepalyam Tungsten and Associated Mineral Block) and the other in Tamil Nadu (the Nayakkarpatti Tungsten Block).
  
  

Used in the filament of the regular lightbulb, tungsten's high melting point makes it useful in high-speed tools and surgical instruments, as well as in superalloys.

• Three blocks of graphite and vanadium, in Arunachal Pradesh were auctioned. Oil India emerged as the preferred bidder for the Phop block, Orissa Metaliks for the Radphu, and Vedanta for the Depo Vanadium and Graphite Block. Vedanta was also declared the preferred bidder for the Sanyasikoppa Cobalt, Manganese and Iron Block in Karnataka.
  
  

Notably, vanadium is used to improve the shock and vibration resistance of steel and is used in the making of high-speed stools, aircraft engines, springs, etc. It is also used in the production of superconductive magnets.

The auction for the graphite block in Arunachal (Endolin-Isholin Graphite Block) and a phosphorite block (Barwar) in Uttar Pradesh seem to have fetched extremely high premiums, 237.5% and 320%, respectively, from Jharkhand-based Mamco Mining Private Limited. The company's aggressive bids demonstrate its substantial optimism regarding the secured mines, when compared to Hindustan Zinc's 5% bid for the tungsten deposit or Vedanta's 45% bid for the cobalt, manganese, and iron ore block in Karnataka.