NEW DELHI, November 6: The Ministry of Mines on Thursday launched the ninth tranche of auctions for critical and strategic mineral blocks, offering 20 blocks across eight states, along with a third tranche of 11 exploration licence blocks, at an event in Goa attended by Union Mines Minister G. Kishan Reddy and Goa Chief Minister Pramod Sawant. It also announced a rule change aimed at reducing the number of blocks that go unsold.
Key highlights
- Tranche IX: 20 critical and strategic mineral blocks in Andhra Pradesh, Bihar, Chhattisgarh, Madhya Pradesh, Maharashtra, Rajasthan, Telangana and West Bengal.
- Track record: of 100 blocks offered in the first eight tranches, 64 were auctioned, a 64% success rate.
- Exploration licences: 11 blocks in the third tranche; 11 such blocks have been sold in the first two tranches.
- Reform: rules notified on October 16, 2026 cut the minimum number of technically qualified bidders for the second round from three to two for Part D minerals.
- Deadlines: tender documents can be bought until January 1, 2027; bids are due by January 7, 2027.
| State | Blocks | Minerals |
|---|---|---|
| Chhattisgarh | 5 | Phosphorite-limestone, vanadium, gallium, titanium, rare earth elements, bauxite, aluminous laterite, glauconite |
| Rajasthan | 3 | Potash and halite, tungsten |
| Telangana | 3 | Titanium, vanadium, scandium, gallium, aluminous laterite |
| West Bengal | 3 | Graphite, rare earth elements, rare metal |
| Madhya Pradesh | 2 | Vanadium, gallium, titanium, bauxite, aluminous laterite |
| Maharashtra | 2 | Rare earth elements, rare metal, vanadium, gallium, titanium, bauxite, aluminous laterite |
| Andhra Pradesh | 1 | Graphite |
| Bihar | 1 | Glauconite |
How the auctions work
Mining blocks go through a two-stage ascending online auction in which the bidder offering the highest share of revenue to the state wins. Exploration licence blocks use a two-stage descending reverse auction, in which the winner is the bidder asking for the lowest share of the future mine lessee’s revenue. Exploration licences, introduced through Section 10BA of the mining law, let private firms explore for 29 critical and deep-seated minerals before mining starts. Letters of intent will now be issued automatically through the Unified Mining Portal.
Our calculation
- If tranche IX matches the earlier 64% success rate, about 13 of the 20 blocks would be sold.
- Rare earth elements feature in mining blocks in three states (Chhattisgarh, Maharashtra and West Bengal) and in exploration blocks in three states (West Bengal, Rajasthan and Telangana).
What it means
India needs a steady supply of minerals such as rare earths, graphite, vanadium and tungsten for electric vehicles, batteries, electronics and defence. The auctions come a day after the Cabinet approved a ₹2,814-crore scheme to support lithium and nickel processing plants (our report). Lowering the bidder threshold should help blocks that previously failed for want of enough bidders.
What to watch
- Bid submissions by January 7, 2027, and the number of blocks that attract enough bidders.
- Results of the exploration licence auction.
A specimen of wolframite, an ore of tungsten; Rajasthan has tungsten blocks in this tranche. Image: Shannon Heinle, CC0, via Wikimedia Commons. Photo source · Licence
Sources
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