Mines ministry to map off-shore mineral blocks for polymetallic nodules 

The Ministry of Mines is planning to map offshore mineral blocks (200 km from India’s shorelines) as it looks to mine polymetallic nodules.

Polymetallic nodules generally contain nickel, cobalt, manganese ore and copper, among others, which find usage in the production of batteries used in electric vehicles.

This follows the Ministry’s efforts to open up the sector to private miners after bringing in amendments to the Offshore Area Mineral (Development & Regulation) Act, 2002. The draft amendments have been notified and put up for public comment on the Ministry’s website. 

Allocation of mining blocks will only be through competitive bidding.

Composite licenses: Exploration-cum-production licenses will also be offered if the proposed amendments go through. 

According to a senior Mines Ministry official, the attempt would be to bring in private players for off-shore mining (including mapping activities), with the aim being usage of these minerals restricted “in India only”. 

“We would like to map these blocks, and then open them up for auction. But that’s a long-term plan. However, before that, we would need to bring in amendments to the Offshore Area Mineral (Development & Regulation) Act, so that private players take interest in the sector,” the official told businessline. 

Mining of atomic minerals will, however, remain under state control and will not be opened up to private miners. 

Previous attempts at opening up offshore mining to private players have been a practical non-starter in India.

Deep-sea mining

Unlike deep-sea mining, which requires approval and mining leases from the UN-affiliated International Seabed Authority, which is yet to come up with a code accepted by all parties, off-shore mining concentrates on tapping probable mineral reserves 200 km from the country’s shoreline. 

In India, deep-sea mining falls under the purview of the Ministry of Earth Sciences, while off-shore mining comes under the Ministry of Mines. 

In June 2021, the Cabinet approved the “Deep Ocean Mission” of the Ministry of Earth Sciences. 

At an estimated cost of ₹4,077 crore over five years, the Deep Ocean Mission will explore resources and develop deep-sea technologies. In the first phase]covering three years, the spend would be ₹2,823 crore. 

Also read: Bolstering the ongoing mining reforms

Amendments to off-shore mining law 

The government currently allocates off-shore production leases for blocks containing higher-grade atomic minerals — such as uranium and zircon — to state-controlled entities.

However, the proposed amendments will allow production leases to be granted to the private sector and state-controlled firms through auction route. 

The draft abolishes the provision for renewal of the production licence and grants a lease period of 50 years.

The Centre, under the proposed amendment, will have the right to determine threshold value for the mineral grade, above which only state-controlled firms will be granted production leases. 

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