India Puts Deep-Sea Mining Auction Plans on Hold Amid Low Interest
India has decided not to proceed with auctioning deep-sea mining rights for now, citing technological limitations and weak interest from potential bidders, according to sources familiar with the matter. The move comes months after the government announced its first-ever auction of 13 offshore mineral blocks in November 2024, which included lime mud, construction sand, and polymetallic nodule blocks containing key minerals.
These offshore reserves hold critical resources such as cobalt, copper, manganese, and nickel—essential for sectors like electric vehicles and renewable energy. However, the auction process failed to attract sufficient participation despite multiple deadline extensions, ultimately leading to its cancellation in December. The estimated value of the first tranche exceeded ₹1.5 trillion, but concerns over economic feasibility and the lack of advanced mining technology among domestic firms dampened investor enthusiasm.
Sources indicated that the high investment requirements and specialized expertise needed for deep-sea mining have made companies hesitant to commit. The government is now considering revising its approach, possibly by offering smaller or different blocks to gauge market interest. Meanwhile, India’s efforts to auction onshore critical mineral blocks have also seen limited success, with only around 60% of the 76 blocks awarded so far.
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