From Tata Steel to NMDC, big firms weigh bids for critical mineral blocks

Tata Steel, Vedanta, NMDC among mining giants exploring the opportunity

Come January and India’s maiden auction round for critical mineral blocks may see interest from some of the biggest players in the industry. 

Tata Steel, Vedanta, and NMDC are already weighing bids for the blocks, according to companies and people in the know.

Cobalt, copper, graphite, lithium, nickel, silicon, strontium, titanium, zirconium, and cadmium are among the 30 critical minerals notified by the central government recently. 

The last date for submitting bids for the first round, comprising four mineral blocks for lease and 16 blocks for composite licence, is January 22.
 

“We are evaluating the government’s proposal on this,” said a spokesperson for Tata Steel in response to a Business Standard query on interest in the critical minerals auction process.

Tata Steel had said in July that the company, through its natural resources division, would consider economically viable opportunities in the battery minerals-related segment. 

In its latest response, the company did not disclose which minerals it is looking at.

“We have received a few enquiries,” said a senior executive from a legal consultancy firm who did not wish to be identified. “For sure, this (auction) will be a big boys’ play.”

Another executive from a battery component making firm said, “I expect the exploration and mining part to be something that big players who have prior mining experience will be suited for.”

Mining majors like Vedanta have said they will explore the opportunities in India. 

“Vedanta has always been keen to evaluate opportunities. Participation in the auction of critical minerals, both for exploration and mining, will be considered equally,” a spokesperson for the group said in a response to a query.

Hindalco Industries is another company with interest in the critical minerals segment. 

However, the company’s interest in the auction process could not be confirmed.

Among the state-run companies, NMDC is likely to consider putting 

in bids. 

“The company is in the process of formulating a plan and a calendar for this,” said a person in the know, requesting anonymity. 

The state miner is expected to show interest in minerals such as manganese and lithium.

Another executive from a major conglomerate that is scouting for critical minerals outside India added, “The group may participate in the initial rounds, but intent is not yet clear.”

Industry executives also agree that interest in the initial rounds of the bidding will be higher as most companies will aim to gain a better understanding of this new opportunity opening in India.

According to a Reuters report on December 6, Shree Cement also plans to bid for lithium mining rights through the auctions. 

A top executive at the company could not be reached for an immediate comment on Thursday.

Even as major companies take the centre-stage, those who are part of the battery-manufacturing value chain are likely to give the auctions a miss.

“We will not participate at the mining stage, our associates may. And we will sign supply leases with them when it is time. We will be setting up the refining capacity in the next five-six years, and that can cater to domestically available lithium,” said Anurag Choudhary, managing director and chief executive officer for Himadri Speciality Chemical. 

The company on Wednesday announced plans to build India’s first commercial plant for LFP cathode active material in India.

Minerals on offer

Lithium, Glauconite, Nickel, Chromium, Potash, Molybdenum Ore, Phosphorite, Titanium

First round of bids: 4 mineral blocks for mining lease 16 mineral blocks for composite licence
 

Companies to consider opportunities: Tata Steel, Vedanta, NMDC 
 

Last date for bid submission: January 22, 2024