As per a recently released statement, the 7th Tranche of Auction of the Critical and Strategic Mineral Blocks will be launched by the Union Coal and Mines Minister G Krishan Reddy on Monday. To date, 6 tranches of auctions have been conducted by the Ministry of Mines, where 46 critical and strategic mineral blocks were successfully auctioned. This marks the country’s robust participation in the industry and a growing confidence in the mineral sector.

Why are leaders focused on critical minerals?  

Concerning the country’s economic growth and ensuring mineral security, the critical minerals are deemed to be highly vital. This is more so because the world is shifting towards clean energy and cutting-edge technologies, raising the demand for minerals like lithium, graphite, rare earth elements (REE), tungsten, vanadium, titanium and other rare metals. Given the limited availability and that are often found in specific regions, this creates mounting challenges for maintaining resilient supply chains around the globe.  

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The Act enabling the auction 

The Indian Government, after recognising the strategic significance it holds, on August 17, 2023, made some important changes to the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). This amendment included designating 24 minerals as critical and strategic and gives the central government the authority to auction off mining leases and composite licenses for these minerals. However, the proceeds from these auctions will go directly to the respective state governments, as stated in the announcement.

Moving into the 7th Tranche 

With the mining leaders focusing more on this and bringing more change for the same, this 7th Tranche auction will be offering a total of 19 blocks for many states, which come under the Mining Lease and Composite License. As included within the released statement, these blocks will represent a rich mix of minerals that are crucial for industries like clean energy, cutting-edge technologies, fertilisers and other strategic sectors. The auction framework has been continuously refined to promote transparency, boost efficiency and speed up the operationalisation of these mineral blocks.

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Pre & post-auction

The auction will take place via the online mode, which will be followed by a two-stage ascending forward auction process. In this process, the winning bidder will be chosen based on the highest percentage of the mineral value they quote for dispatch. 

The recent reforms, like the Mineral (Auction) Second Amendment Rules, 2025, have made the post-auction process smoother by streamlining timelines for things like submitting performance security, making upfront payments and issuing Letters of Intent. Additionally, the Mineral (Auction) Amendment Rules, 2026, have added the option of using an insurance surety bond instead of traditional bank guarantees, giving bidders more flexibility.

In another announcement made recently, the ministry shared that in New Delhi this coming Monday and Tuesday, they will be hosting the National District Mineral Foundation (DMF) Summit 2026 in New Delhi this coming Monday and Tuesday.

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