Maiki South Mining Clinches Country's First Lithium Block in Landmark Auction

Maiki South Mining Pvt Ltd has secured India's first lithium block in Chhattisgarh, the government announced on Monday. The Katghora lithium and rare earth elements (REE) block was awarded to the company with an auction premium of 76.05%. This announcement coincided with the launch of the fourth round of auctions for critical and strategic minerals.

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Government Cancels Second Round Auction

The government also cancelled the auction of 14 critical minerals that were part of the second round. According to the Ministry of Mines' annulment notice on the MSTC website, five blocks received no bids, while the remaining blocks had fewer than the required three bids. This led to the cancellation of these auctions.

Union Minister of Coal and Mines G Kishan Reddy launched the fourth round of auctions, putting 21 blocks up for sale. These include 11 fresh blocks in states like Arunachal Pradesh, Jharkhand, and Karnataka. Speaking at the event, Reddy highlighted that reforms initiated in 2015 in the mining sector are now yielding benefits.

Preferred Bidders Announced

During the event, Maiki South Mining was named the preferred bidder for the Katghora lithium and REE block. The names of preferred bidders for six blocks from the first round were also revealed. Agrasen Sponge Pvt Ltd won two blocks in Odisha, Kundan Gold Mines Pvt Ltd secured a graphite mine in Odisha, Dalmia Bharat Refractories Ltd bagged a graphite block in Tamil Nadu, and Sagar Stone Industries won a phosphorite block in Uttar Pradesh.

Mines Secretary V L Kantha Rao assured that production from critical minerals would commence soon. He also promised reforms in the mining sector every 15 days. Additionally, he mentioned that bidders for the third tranche of critical minerals would be announced by mid-next month and that 10 offshore blocks would be auctioned within 100 days.

The first tranche of auctions began on November 29, 2023, receiving 56 physical and 56 online bids for 18 out of 20 blocks offered. However, due to a lukewarm response, auctions for 13 blocks were cancelled. Seven of these cancelled blocks have been re-notified for auction in the third round.

The government’s efforts to streamline and reform the mining sector appear to be ongoing. The focus remains on ensuring that critical mineral production starts promptly and that new opportunities are continually made available through regular auctions.