India: CIL selected as preferred bidder for REE exploration block in AP

• Ontillu-Chandragiri block has mining area of over 200 sq. km
  
  
• New regime boosts exploration of 29 critical, deep-seated minerals
  
  

The Mines Ministry has granted Coal India (CIL) an exploration licence for the Ontillu-Chandragiri Rare Earth Elements (REE) Exploration Block in Andhra Pradesh, according to a stock exchange filing by the company on Tuesday. The Ontillu-Chandragiri REE Exploration Block has an area of 209.62 square kilometres.

The government introduced auction-based exploration licences (EL) for 29 critical and deep-seated minerals listed in the Seventh Schedule by amending the Mines and Minerals (Development and Regulation) Act, 1957. This new EL regime aims to boost exploration of minerals such as lithium, copper, silver, diamond, and gold by involving the private sector.

The licensees can conduct reconnaissance and prospecting to identify mining prospects, receive a revenue share from the auction premium for 50 years. EL holders will play a crucial role in delineating blocks suitable for subsequent mining lease auctions, thereby enhancing potential revenues for state governments, according to a press release from the Mines Ministry on Monday. The ministry also launched the sixth tranche of auctions for critical and strategic minerals in Hyderabad yesterday.