2nd lithium auction in Reasi distt fails to attract bidders

*GSI initiates explorations at Salal East, Panasa

Govind Sharma
JAMMU, Dec 16: Government’s second attempt to auction lithium blocks in Reasi district of Jammu and Kashmir has failed as no bids were received for the Salal-Haimna Lithium Block. However, this development has sparked renewed efforts to address concerns over the viability and composition of the region’s lithium deposits, critical for India’s clean energy transition.
Responding to a query of Member Parliament Sanjay Raut in the Rajya Sabha, Union Minister of Coal and Mines, G Kishan Reddy, confirmed that the Salal-Haimna Lithium Block in Reasi district has been explored up to the G3 level. He informed the House that despite initial interest, the second attempt to auction the block was annulled. He said to resolve concerns regarding the quality of lithium deposits, mineral samples collected by the Geological Survey of India (GSI) have been sent to the Indian Bureau of Mines (IBM) in Nagpur and the Institute of Minerals and Materials Technology (IMMT) in Bhubaneswar for beneficiation studies.
Reddy further informed the House that the GSI has also initiated two additional preliminary exploration projects at Salal East and Panasa in the Reasi district during the 2024-25 fiscal year to further assess the region’s lithium potential and improve investor confidence.
Regarding the timeline for awarding mining rights for lithium in J&K, Reddy said it remains uncertain, as it depends on the outcome of ongoing exploration investigations. The Minister reiterated Government’s commitment to unlocking the potential of the country’s lithium reserves to support India’s clean energy goals.
Highlighting the broader context, Reddy stated that the Government has taken legislative steps to ensure the effective utilization of critical minerals like lithium. The Mines and Minerals (Development and Regulation) Amendment Act, 2023, which came into effect on August 17, 2023, empowers the Central Government to auction mining leases for critical minerals listed in Part D of the First Schedule. Lithium, a vital component for batteries and renewable energy technologies, is included in this list.
The Minister stated that India’s increasing focus on critical minerals comes as global demand for lithium surges, driven by the need for sustainable energy solutions. He said the strategic development of domestic lithium reserves is expected to play a key role in reducing the country’s reliance on imports and fostering energy security.

The post 2nd lithium auction in Reasi distt fails to attract bidders appeared first on Daily Excelsior.

jammu news state inner image