June 24th 2024.
The Indian government has just announced that Maiki South Mining Pvt Ltd has successfully secured the first-ever lithium block in Chhattisgarh. This block was up for sale and Maiki South Mining emerged as the preferred bidder, beating out other competitors. The company had to pay a whopping 76.05% premium in order to secure the Katghora lithium and rare earth elements block.
In other news, the government has decided to cancel the auction of 14 critical minerals that were supposed to be up for grabs in the second round. This decision was made after no bids were received for five of the blocks, and the remaining blocks received less than the minimum requirement of three bids. The Ministry of Mines has also announced the launch of the fourth round of auctions for critical and strategic minerals, with 21 blocks up for sale.
During the launch event, Union Minister of Coal and Mines G Kishan Reddy highlighted the benefits of the reforms that were implemented in the mining and mineral sector back in 2015. These reforms have paved the way for successful auctions like this one. The government also received a significant number of bids for the first tranche of the auction, which began in November 2023. However, due to a lukewarm response, the auction for 13 of the 20 blocks was cancelled and seven of them were re-notified for the third round.
During the function, Mines Secretary V L Kantha Rao assured everyone that the production of critical minerals will start very soon and that the ministry will continue to push for reforms every 15 days. He also announced that the bidders for the third tranche will be revealed in the middle of next month. Additionally, the government plans to auction 10 offshore blocks in the next 100 days.
The blocks that were up for grabs in the first round were won by Agrasen Sponge Pvt Ltd, Kundan Gold Mines Pvt Ltd, Dalmia Bharat Refractories Ltd, and Sagar Stone Industries. These companies secured blocks in Odisha, Tamil Nadu, and Uttar Pradesh. The government is hopeful that the fourth round of auctions will be just as successful and will help boost the country's mineral production.
[This article has been trending online recently and has been generated with AI. Your feed is customized.]
[Generative AI is experimental.]
