New Offshore Mineral Blocks Notified

Key Highlights: Offshore Mineral Exploration Near Great Nicobar Island

1. Constitutional and Legal Framework:

   • Governed by the Offshore Areas Mineral (Development and Regulation) Act, 2002, which regulates offshore mining activities, ensuring ecological balance and respecting fishermen's interests.
   • Compliance required under the Offshore Areas Mineral Conservation and Development Rules, 2024, mandates submission of a production plan and Environmental Management Plan (EMP) by lessees prior to exploration/production.

2. Government Actions:

   • The Ministry of Mines has announced two new offshore mineral blocks near Great Nicobar Island covering 1,632 square kilometers:
     • West Sewell Ridge-01: 1,000 square kilometers.
     • Sewell Rise-01: 632 square kilometers.
   • These blocks are for the grant of composite licenses for polymetallic nodules and crusts, which contain vital metals such as nickel, cobalt, manganese, copper, and rare earth elements.

3. Auction History and Challenges:

   • Previous auction (November 2024) included 13 offshore mineral blocks, of which seven near Great Nicobar Island failed to attract bidders, leading to the annulment of the auction in December 2025.
   • Resilience shown: Four of seven blocks received no bids, and remaining three lacked technically qualified bidders.

4. Economic and Developmental Context:

   • The Great Nicobar Island is integral to a Rs 72,000 crore mega infrastructure project by the central government, which includes:
     • A transshipment port.
     • Airport.
     • Gas and solar power plants.
     • Two greenfield coastal cities.
   • This project aims to enhance regional connectivity and economic activity but faces scrutiny over environmental implications.

5. Environmental Concerns:

   • Criticism highlights potential threats to:
     • Coral reefs.
     • Leatherback turtle nesting sites.
     • Nicobar megapode nesting mounds.
     • Ancestral lands of the Great Nicobarese Scheduled Tribe.
   • Community resistance noted, especially from fishing communities in Kerala, regarding the impacts on marine biodiversity and local livelihoods.

6. Stakeholder Engagement:

   • Government emphasizes involvement of local communities in the mining plans and commitment to addressing their concerns in the EMP.
   • Assurance of safeguards within the regulatory framework to protect ecological and community interests during mining activities.

7. Political and Social Dynamics:

   • Efforts to promote offshore mineral exploration align with broader economic development goals, despite facing opposition due to environmental advocacy and the rights of indigenous populations.

This summary highlights the intersection of legal frameworks, government initiatives, economic ambitions, and environmental considerations in the context of new offshore mineral exploration efforts near Great Nicobar Island.