Highlights

• India's Ministry of Mines announces sixth auction of critical and strategic minerals
• Features 23 mining blocks across multiple states
• The auction includes:
  • Rare earths
  • Tungsten
  • Lithium
  • Cobalt
  • Gallium
  • Potash
• Signals a shift from state-dominated resource model
• Aims to diversify global mineral supply chains
• Potentially challenge China's dominance in strategic mineral markets

The Ministry of Mines has confirmed that on September 16, 2025, India will launch its sixth tranche of auctions for critical and strategic minerals. This round includes four mining-ready blocks and 19 license-cum-mining lease blocks spread across multiple states. Minerals on offer include rare earths, tungsten, lithium, cobalt, gallium, and potash.

The numbers are consistent with India’s ongoing push since the 2023 amendment to the Mines and Minerals (Development and Regulation) Act, which enabled auction-based access for 29 minerals, ranging from lithium to copper and diamonds. The previous five tranches have already auctioned 34 blocks out of 55 identified critical/strategic blocks. These details published in The Hindu (opens in a new tab) align with official announcements and reflect real structural reform in India’s resource governance.

Where Spin Creeps In

The announcement frames auctions as a straightforward path to securing domestic supply. Yet history suggests caution. Exploration-to-production timelines in India are long; permitting and land acquisition are politically sensitive; and infrastructure bottlenecks remain. The inclusion of rare earths and gallium in the mineral roster sounds headline-worthy, but no commercial-scale REE mine has yet been developed in India. Without clarity on grades, tonnage, or processing capacity, auction rhetoric risks overselling near-term impact.

Speculation vs. Substance

Investors should note that license-cum-mining lease blocks are essentially exploratory plays. These grant rights to survey and potentially mine later, but not for immediate production. The idea of a quick supply infusion into global chains is speculative at best. Revenue-sharing incentives for licensees—50-year shares of auction premiums—may attract bidders, but success hinges on geology and state-level cooperation.

What Really Matters for Supply Chains

The notable piece here is India’s willingness to auction rare earths and other “strategic” minerals to private players, breaking from its historic state-dominated model. This signals intent to position India as a counterweight to China in future supply diversification. If even a handful of these blocks prove commercially viable, it could reshape regional supply dynamics for EV, defense, and electronics industries. But execution, not announcements, will determine whether this becomes material to global markets.

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