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Two sea mineral blocks near Nicobar marked for auction
Reported by Kavya Rao (Senior Writer) · Indian Express - Business ·
Reported by one source so far
Representative image · PexelsWhat Happened
The Ministry of Mines has notified two offshore mineral blocks near Great Nicobar Island in the Andaman Sea for licensing. These blocks cover a total area of 1,632 square kilometres and are meant for composite licences for polymetallic nodules and crusts. A composite licence asks the winning bidder to first explore the area and find out the mineral potential before starting any mining work. The two specific areas are West Sewell Ridge-01, which covers 1,000 square kilometres off Great Nicobar Island, and Sewell Rise-01, which covers 632 square kilometres in the southern part of Sewell Rise. These seabed deposits hold metals like nickel, cobalt, manganese, copper and rare earth elements.
Background and Context
This step follows an earlier failed attempt by the ministry to auction seven offshore mineral blocks with the same minerals in the same area during India's first-ever offshore auction. In November 2024, the government put 13 offshore mineral blocks on sale. This list included seven blocks near Great Nicobar Island, three lime mud blocks off Gujarat, and three construction sand blocks off Kerala. In December 2025, the government cancelled the auction for all 13 blocks because nobody placed bids. Four of the Nicobar blocks got zero bids, while the other three had no qualified bidders. Great Nicobar Island is also where the central government plans a Rs 72,000 crore mega infrastructure project that features a transshipment port, an airport, a power plant, and two coastal cities.
Concerns and Safeguards
The mega project and offshore mining have faced strong criticism over environmental damage. Critics point out risks to coral reefs, turtle nesting sites, bird nesting mounds, and the ancestral lands of the Great Nicobarese Scheduled Tribe. Fishing communities in Kerala and other areas have also opposed offshore mining to protect marine life and their livelihoods. The government states that the Offshore Areas Mineral Act of 2002 has enough safeguards for the environment and fishermen. Officials told parliament that rules require an approved production plan and an Environmental Management Plan before any exploration or production starts, and that local concerns will be addressed during this planning.
ExplainerWhy this matters
What Happened
The Ministry of Mines has notified two seabed mineral blocks near Great Nicobar Island for composite exploration licences after a previous attempt to auction 13 offshore blocks failed due to zero bids.
Why It Matters
This issue sits at the center of a major clash between India's push for critical mineral security and deep-sea resource extraction, and heavy environmental and tribal welfare concerns. Great Nicobar Island is already the site of a controversial Rs 72,000 crore mega project involving a port and urban centres. Opening up the surrounding seabed for mining seabed deposits like rare earth elements, nickel, and cobalt raises serious questions about marine biodiversity loss, protection of coral reefs, and the survival of the indigenous Great Nicobarese community, even as the government insists that existing legal frameworks and environmental management plans provide enough safeguards.
What Happens Next
It remains to be seen if private and public sector companies will show interest in bidding for these two newly notified blocks given that the previous auction round failed entirely. If bidders do step forward, they will have to complete exploration and submit detailed production and environmental plans before any actual mining can be approved or started.
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