Government to auction 20 critical mineral blocks after elections; OFS for Hindustan Zinc only after testing the market: Mines Secretary

Mines Secretary VL Kantha Rao on Monday said the auction of critical mineral blocks is gaining momentum. The process for the seven blocks put up for sale in the first round is almost complete and the result will be declared within a month.

Critical minerals such as copper, lithium, nickel, cobalt and rare earth elements are essential components in many rapidly growing clean energy technologies, from wind turbines and power networks to electric vehicles. With the acceleration of clean energy transition, the demand for these minerals is increasing rapidly.

Speaking at an event on critical minerals, the Mines Secretary said 38 critical mineral blocks have already been auctioned and more than 100 are on the table for future auctions.

He invited the industry to study these blocks and bid for them.

stick to plan

Asked about the fate of the government’s stake in Vedanta group company Hindustan Zinc, Rao reiterated the government’s plan to sell its minority 29.54% stake through an offer for sale (OFS), but said it would be to test the market. It will happen only after doing.

“We are committed to OFS,” Rao said on the sidelines of the event. He said that the market is not ready yet and this step will be taken after knowing the interest of investors through road shows.

“Anyway, we have not agreed on the demerger,” the mines secretary said.

Rao said Hindustan Zinc had said it would continue to engage with the Center on the proposal to split the company into various units.

The company had said it was still in talks with the mines ministry on the proposal and trying to resolve some issues.

The Vedanta group company had announced plans to split its businesses, including zinc and silver, into separate entities to increase its market capitalisation.

“We as shareholders are not convinced by whatever reports are before us,” Rao said.

The Mines Secretary said the government will also start auctioning offshore mines in the next three months.

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Published: April 29, 2024, 09:19 PM IST