Indian Mining and Cement Companies Seek Assistance from Royal IHC for Deep-Sea Mineral Blocks Auction

As India prepares to bid for deep-sea mineral blocks up for auction, some mining and cement companies in the country have turned to Dutch shipbuilder Royal IHC for technical assistance, according to sources familiar with the matter.

In November, India initiated the first tranche of auctions for 13 offshore deep-sea mineral blocks, which include lime mud blocks, construction sand blocks, and polymetallic nodule blocks. These blocks are known to contain critical minerals such as cobalt, copper, manganese, and nickel, essential for electric vehicles and solar panels.

The bidding for the initial tranche of the auction is set to conclude by the end of March, with Indian companies looking to secure these valuable mineral resources.

Despite the potential, India currently lacks the expertise in seabed mining compared to countries like China. However, with the growing demand for critical minerals, especially with India’s ambitious renewable energy targets, there is a pressing need to accelerate seabed mineral exploration.

With the aim of adding 500 gigawatts of renewable energy by 2030 and achieving net zero emissions by 2070, India is keen on tapping into offshore mineral resources to support its energy transition technologies.

Royal IHC has been instrumental in providing technical knowledge on mining techniques and assisting Indian companies in estimating extraction costs from offshore blocks. The shipbuilder is also open to providing mining equipment to clients if the opportunity arises.

Foreign miners from countries like France, Namibia, the Netherlands, Norway, and Sweden have shown interest in India’s offshore mining opportunities, participating in a government-sponsored virtual seminar to explore the potential in the region.

India has also introduced financial incentives to attract miners to participate in the seabed mineral exploration, as part of its efforts to secure a stable supply of critical minerals for its industrial needs.

Despite facing challenges in onshore critical minerals auctions, with only about half of the blocks successfully awarded, India remains optimistic about its offshore mining prospects.

As the country moves towards a greener and more sustainable future, the collaboration with Royal IHC and the participation of international miners signal a significant step towards unlocking the vast potential of India’s deep-sea mineral resources.

Source: Reuters – Reporting by Neha Arora; editing by Mayank Bhardwaj and David Evans