Auction of Exploration Licence for Important Minerals for the First Time in India

  • Karnataka and Rajasthan launched the first auction of Exploration Licence (EL) for critical and deep-seated minerals in the country. 
  • The MMDR Amendment Act, 2023 introduced new mineral concessions for 29 critical and deep-seated minerals. 
  • The licenses allow for reconnaissance and prospecting operations for these minerals. 
  • The Central Government notified the necessary amendments in the rules on 21.01.2024. 
  • The license aims to leverage the risk-taking ability of Junior Mining Companies in the discovery of deep-seated mineral deposits. 
  • The State Government of Karnataka and Rajasthan are the first to notify the auction of EL. 
  • The Exploration Licence holder will explore the blocks and identify areas that can be auctioned for Mining Lease. 
  • The preferred bidder in the auction of EL will be selected through reverse bidding. 
  • Details of the blocks and timelines can be accessed on the MSTC e-auction platform.
Posted in Current Affairs.