India's Ministry of Mines has launched an auction of two offshore mineral blocks in the Andaman Sea that hold seabed nodules containing cobalt, nickel, copper and manganese. It is a second attempt after the first offshore auction drew too little interest.
At a glance
- The two blocks, West Sewell Ridge-01 and Sewell Rise-01, cover about 1,632 square kilometres.
- Winning bidders will get composite licences covering both exploration and mining.
- The government cut the minimum number of qualified bidders needed for a first-round auction from three to two.
Background
Polymetallic nodules are potato-sized lumps on the seabed that contain metals such as cobalt, nickel, copper and manganese, all used in batteries and electronics. India imports most of these critical minerals. Offshore mining in India is governed by the Offshore Areas Mineral (Development and Regulation) Act, 2002.
What happened
The Ministry of Mines launched an auction of two offshore mineral blocks in the Andaman Sea on October 1. West Sewell Ridge-01, off Great Nicobar Island, covers 1,000 square kilometres, and Sewell Rise-01 covers 632 square kilometres.
Both blocks contain polymetallic nodules and crusts with cobalt, copper, manganese and nickel. They are being offered under composite licences, which allow a winner to explore and then mine.
Why this is a second attempt
India's first offshore auction, launched on November 28, 2024, offered 13 blocks, including seven with polymetallic nodules or crusts and six with construction sand or lime mud. It was cancelled in December 2025 because too few bidders took part.
On September 24, the government amended the rules to cut the minimum number of technically qualified bidders for a first-attempt auction from three to two. It said the change was "crucial to improve the success rate of auctions in the first attempt".
What it means
Cobalt and nickel are key battery metals that India almost entirely imports. A successful auction would be a first step towards a domestic source, though offshore mining is costly and technically demanding.
The auction will also test investor appetite. If bidders stay away again, it would suggest the economics of seabed mining remain unproven for Indian companies.
Our read
Outlook: neutral. Offshore exploration takes many years, so the auction adds no near-term supply of cobalt or nickel. It matters for India's long-term critical minerals plans.
What to watch
- How many companies bid for the two Andaman Sea blocks.
- Whether the relaxed two-bidder rule helps the auction succeed this time.
- Any further offshore tranches the Ministry of Mines offers.
For information only, not investment advice.
Cobalt price in India
metalscost.com India reference price as of 2026-10-03.
Detailed analysis
Timeline
- 2024-11-28: India launches its first offshore mineral auction with 13 blocks.
- 2026-09-24: The government cuts the minimum qualified bidders for a first-attempt auction from three to two.
- 2026-10-01: The Ministry of Mines launches an auction of two Andaman Sea blocks.
Supply Drivers
The blocks hold nodules with cobalt, nickel, copper and manganese, but production is many years away.
Government Policies
India relaxed its auction rules to two qualified bidders after its first offshore round failed.
What could lift prices
- India is pushing to secure its own battery metal supply.
- Seabed nodules hold several critical metals in one deposit.
What could weigh on prices
- Offshore mining is costly and unproven at scale, which may deter bidders.
- Any production is many years away.
Country impact
| Country | Impact | Reason |
|---|---|---|
| India | Medium | The auction is a step towards domestic sources of cobalt, nickel and copper. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Critical Minerals Mining | Positive | Offshore blocks open a new potential source of battery metals for India. |
Who gains, who loses
- Indian battery and electronics makers: A domestic source of cobalt and nickel would reduce reliance on imports over time.
- Marine ecosystems near the blocks: Seabed mining could disturb habitats if the blocks are eventually developed.
Other ways this could play out
- If the auction succeeds, exploration of the Andaman Sea blocks could begin under composite licences.
- If it fails again, India may need to rethink incentives for offshore mining.
Price risks
- Weak bidder interest could lead to another cancellation.
- Environmental concerns could slow any offshore development.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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