India has cut the minimum number of technically qualified bidders needed in critical mineral auctions to two from three, after many blocks went unsold. The mines ministry also launched a ninth tranche of 20 blocks, including rare earths and gallium, and 14 exploration licence blocks.
At a glance
- Of 100 blocks offered in the first eight tranches, 64 were auctioned and 36 remain unsold.
- Tender documents are on sale from November 5 to January 1, 2027.
- The exploration licence blocks cover copper, vanadium, rare earths, potash and halite.
Background
India auctions blocks of critical and strategic minerals to companies, which bid for the right to mine them. Auctions have been annulled when they drew no bids or fewer than three technically qualified bidders. Exploration licences, introduced under Section 10BA of the Mines and Minerals (Development and Regulation) Act, let private firms explore 29 critical and deep-seated minerals before mining begins.
What happened
India's mines ministry on Thursday launched the ninth tranche of critical and strategic mineral block auctions, offering 20 blocks across eight states, Business Standard reported. It also launched a third tranche of 14 exploration licence blocks across six states.
The tender documents include a rule change, notified on October 16, that cuts the minimum number of technically qualified bidders from three to two. Mines Minister G. Kishan Reddy launched the two tranches.
Why the rules changed
In the first eight tranches, 100 blocks were offered and 64 were auctioned, leaving 36 unsold. Several auctions were annulled because they drew no bids or lacked three technically qualified bidders.
The ministry said the change "addresses a key reason blocks have gone unsold". Letters of intent will also now be issued automatically through the Unified Mining Portal.
What is on offer
Chhattisgarh has the most blocks in the ninth tranche, with five, followed by Rajasthan, Telangana and West Bengal with three each. The minerals include graphite, vanadium, gallium, titanium, rare earth elements, bauxite, tungsten and scandium.
The ministry said these minerals are needed for clean energy, electric mobility, defence, aerospace and electronics. Tender documents can be bought until January 1, 2027.
Our read
Outlook: neutral. New Indian rare earth supply from these blocks is years away.
What to watch
- Bid submissions for the ninth tranche after tender sales close on January 1, 2027.
- Whether the two-bidder rule reduces the number of annulled auctions.
- Results of the third exploration licence tranche.
For information only, not investment advice.
Neodymium price in India
metalscost.com India reference price as of 2026-11-06.
Detailed analysis
Timeline
- 2026-10-16: India notifies the rule cutting the minimum qualified bidders to two.
- 2026-11-05: The mines ministry launches the ninth critical mineral auction tranche.
- 2027-01-01: Last date to buy tender documents.
Supply Drivers
Twenty more critical mineral blocks, including rare earths and gallium, are on offer.
Government Policies
India eased auction rules so blocks can be awarded with two qualified bidders.
What could lift prices
- Mining from the new blocks is years away.
- Thirty-six blocks from earlier tranches remain unsold.
What could weigh on prices
- Easier rules could bring more rare earth blocks into development.
- India is offering more rare earth and critical mineral blocks.
Country impact
| Country | Impact | Reason |
|---|---|---|
| India | High | India is offering 20 critical mineral blocks and 14 exploration blocks under easier rules. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Critical Minerals Mining | Positive | Blocks can now be awarded with two qualified bidders. |
| Mining Exploration | Positive | Fourteen exploration licence blocks are on offer. |
Who gains, who loses
- Bidders for critical mineral blocks: Auctions can now go ahead with two qualified bidders instead of three.
- Competing bidders: With fewer bidders required, auctions may close with less competition.
Other ways this could play out
- If more auctions succeed, India could develop new sources of rare earths and gallium.
- If bidder interest stays weak, blocks may remain unsold despite the rule change.
Price risks
- Unsold blocks delay new domestic supply.
- Exploration may not prove economic deposits.
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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