Vedanta, Oil India, Hindustan Zinc emerge top bidders in mineral auctions

The Ministry of Mines on Thursday announced the preferred bidders for eight critical mineral blocks awarded in the fourth round of auctions. Companies securing these blocks include Hindustan Zinc Limited, Vedanta, Oil India, Orissa Metaliks, and Mamco Mining.  This brings the total number of blocks awarded to 22, representing less than 45 per cent of the 49 blocks offered since the auction process commenced in November 2023.  

 

The latest awards follow a second-round auction held after the initial round failed to attract sufficient interest, as the government mandates at least three technically qualified bids per block for a successful first-round auction. In the second round, however, a single bidder can secure a block under the revised Mineral (Auction) Amendment Rules, 2024. Of the 22 blocks awarded so far, nearly half—10 blocks—were allocated through the second-round process.  

   

In the fourth auction round, the government offered 11 new blocks and 10 previously unclaimed ones. Among the new blocks, only two found takers: Mamco Mining secured the Endolin-Isholin Graphite Block in Arunachal Pradesh and the Barwar Phosphorite and Limestone Block in Uttar Pradesh, with auction premiums of 237.50 per cent and 320.00 per cent, respectively.  

 

In mining, the auction premium reflects the additional percentage or revenue share a mining company agrees to pay the government over and above the base royalty. This premium is quoted during the bidding process and represents the company’s share of proceeds from mining activities.  

 

Vedanta Limited secured two blocks: the Depo Vanadium and Graphite Block in Arunachal Pradesh and the Sanyasikoppa Cobalt, Manganese, and Iron Block in Karnataka, with auction premiums of 2.55 per cent and 45.00 per cent, respectively.  

 

Hindustan Zinc Limited was awarded the Balepalyam Tungsten Block in Andhra Pradesh and the Nayakkarpatti Tungsten Block in Tamil Nadu, with premiums of 6.55 per cent and 5.05 per cent.  

 

Oil India Limited won the Phop Graphite and Vanadium Block in Arunachal Pradesh with a premium of 76.05 per cent. Orissa Metaliks Private Limited acquired the Radhpu Graphite and Vanadium Block in the same state, offering a premium of 95.00 per cent.  

 

This fourth tranche of auctions was significant for India’s mineral landscape, particularly in the northeastern region, where four blocks were awarded for the first time.  

 

The round also marked the successful auction of tungsten and cobalt blocks for the first time. These critical minerals are essential for high-tech industries, defence, and energy storage applications, and the government aims to reduce import dependence by expanding domestic production.