- The first ever auction of 13 offshore mineral blocks was launched in November 2024. The proposal has been resisted by fishers in Kerala, who say it will adversely impact livelihoods.
- A study from University of Kerala’s Department of Aquatic Biology and Fisheries found that the rocky reefs where offshore mining is proposed help sustain marine biodiversity and ensure fishery productivity.
- Apart from environmental considerations, bottlenecks in technology and regulation could impact industry confidence in offshore mining, say experts.
The central government’s proposal to carry out offshore mining in India has been met with strong resistance in Kerala, where fishers have categorically said they will not allow the seabed to be dug up for mineral extraction. “The livelihoods of more than 25,000 fishers will be affected by offshore mining,” said Charles George, President of the Kerala Matsya Thozhilali Aikya Vedi, a fishing union. “The dredging up of the seabed will lead to detrimental environmental damage which will deplete fish stocks.”
In November 2024, the Union Ministry of Mines launched the first ever auction of 13 offshore mineral blocks for mining. Union Minister G. Kishan Reddy said the auction would support India’s infrastructure development and energy transition, while also supporting the country’s quest for self-reliance in the global critical mineral supply chain.
Critical minerals are vital materials for batteries, solar panels, electric vehicles and other instruments used in renewable energy sources. Offshore mining could turn the country into “a leading player in the global critical minerals market,” Reddy had said.
On offer are three blocks of construction sand off the Kerala coast, three blocks of lime mud off the Gujarat coast, and seven blocks of polymetallic nodules off the coasts in the Andaman and Nicobar Islands. Polymetallic nodules are small rocks containing a mix of metals, like nickel, copper, zinc and iron, which are globally sought after.
The resistance to offshore mining, however, has now reached Parliament’s doorstep. Around 200 fishers from the Kerala Fisheries Coordination Committee marched to Parliament on February 27, demanding the mining blocks off the Kerala coast be cancelled. “We will not allow the offshore mining at any cost,” said chairman of the KFCC and former Member of Parliament T.N. Prathapan.
On March 17, K.C. Venugopal, member of Parliament from the Indian National Congress, also raised the issue of the fisher’s protest, seeking answers from the government on how their concerns would be addressed.
Experts say the protests against offshore mining may not be the only consideration for the government. “There is a lot of potential for offshore mining in India. Mining from offshore reserves could reduce import dependence on critical minerals if executed well. But the industry is hesitant at the moment because there are technological and regulatory bottlenecks, apart from environmental considerations,” said Arnab Majumder, Vice President, Metals and Mining at LSI Group, a consultancy firm specialising in the mining and metal sectors.
Even though extensive roadshows showcasing the offshore reserves were held in Gujarat and Kerala to attract bids, the deadline for bid submission was extended from February to April, delaying the tendering process.
“Offshore mining requires highly specialised equipment and considerable capital infusions, which means project proponents need strong technology partners. Given offshore mining is still at a nascent stage in India, it’s an expensive venture,” Majumder said.
Spotlight on livelihoods and biodiversity
The Geological Survey of India conducted seismic surveys and chemical analyses to determine reserves off the coasts of Kerala and Gujarat.
The three mining blocks off the coast of Kerala’s Kollam city are estimated to hold 302 million tonnes of construction sand in reserves, according to tender documents. Lime mud reserves off the coast of Gujarat’s Porbandar city are estimated to have 1,712 million tonnes of lime mud in reserves. No reserves were estimated for polymetallic nodules off the coast of Great Nicobar Island, where the GSI only conducted observational surveys using geomagnetic survey methods.
The fishers’ protests against mining the Kollam blocks have spotlighted the impacts of offshore mining on livelihoods and biodiversity. Unlike the other two destinations for offshore mining, the blocks in Kerala are of the shallowest depth, less than 100 meters from the sea bed. “The area that they want to mine has the most fish abundance. It is the most productive zone for fishermen where you can find mackerel, oil sardines, anchovy, king fish, tuna, and a variety of prawns,” said George.
Consultations with communities were not carried out when designing the auction process, according to an FAQ released by the government, which states consultations were only done with the Ministry of Fisheries, Animal Husbandry & Dairying and the Department of Fisheries before being launched.
Among the methods suggested for mining in Kollam is bucket dredging, in which miners “drag a bucket along the sea floor,” to collect the material. A report on the possible impacts of offshore mining in Kollam, published by the Department of Aquatic Biology and Fisheries in University of Kerala, found that Kollam houses two-thirds of Kerala’s recorded soft coral species.
“Traditional fishing communities depend heavily on the rich fish stocks associated with these rocky reefs for their economic survival,” says the report, adding, “The proposed offshore sand mining activities, targeting depths of 40-60 meters off Kollam, directly threaten these rocky reef habitats. As these reefs serve as feeder systems that sustain marine biodiversity and ensure fishery productivity, their destruction could have severe consequences for marine life and the fishing communities that depend on them.”
The impacts of seabed mining, particularly at greater depths, are still being understood worldwide. Simulated impacts by the National Institute of Oceanography suggest offshore mining will result in considerable sediment displacement, which will “create turbidity and decrease the available sunlight for photosynthesis, causing long term effects on biological productivity,” in the water column. Impacts may also be felt by the marine life living within the water column.
Policy bottlenecks
Offshore mining is governed by the The Offshore Areas Mineral (Development and Regulation) Act, which was amended in 2023 to include an auction process to mine blocks. The Act permits the development of maritime resources in India’s territorial waters, continental shelf, exclusive economic zone (EEZ), and other maritime zones. The 13 blocks up for auction will award composite licenses that allow for the exploration and production of mineral resources by private players and Public Sector Undertakings.
In response to Venugopalan’s question about the environmental impacts of offshore mining, Union Environment Minister Bhupender Yadav said that in line with the law’s provisions, no production operations would occur “except in accordance with an approved production plan.” The concerns of fishermen and local communities “will be specifically addressed during the preparation of the production plan and Environmental Management Plan (EMP), which every lessee is required to submit before commencing exploration or production activities,” he went on to say.
But the ongoing protests could impact industry confidence, said Majumder. “Industry leaders worry that sustained protests could lead to stricter regulations, delays in project approvals, and reputational risks for participating companies. If public resistance continues to grow, companies may hesitate to commit large-scale investments without assurances of community engagement and sustainable mining practices,” he told Mongabay India.
The government’s enthusiasm for offshore mining comes against the backdrop of India’s aggressive push to strengthen its critical mineral supply chain. In January, the Cabinet approved the National Critical Mineral Mission – a Rs 16,000 crore (Rs. 160 billion)plan to undertake 1200 exploration projects and auction 100 mineral blocks.
The mission “aims to create a fast track regulatory approval process for critical mineral mining projects,” in addition to offering “financial incentives for critical mineral exploration and promote the recovery of these minerals from overburden and tailings,” says a statement from the Ministry of Mines .
Private players, however, have been slow to match the government’s enthusiasm. Four tranches of onshore critical mineral blocks have been met with lukewarm responses and cancellations. Several blocks included sought-after minerals like lithium, used in EVs. “When blocks containing significant minerals are not auctioned, it indicates there’s a problem either in operationality or profitability for players,” said Kartik Bansal, Research Associate at the Centre for Social and Economic Progress.
The bidding process favours players who promise higher premiums on the value of the mined mineral, which is paid to the state government in addition to royalties. This, however, resulted in “irrationally high bids,” from winning players, said Bansal. “Most of the bids came in at more than 50%, which raises questions about how these players plan on remaining profitable while paying considerable premiums to the government,” he said, adding, “Many winning companies also did not have previous experience mining critical minerals, which raises questions about their expertise,” he said.
The extraction of polymetallic nodules, found at depths between 900 and1500 meters off the Great Nicobar Island coast, are of particular interest given their potential contribution to the energy transition. Lack of information on the quantity of reserves and the potential for geopolitical tensions with China could cast doubt on the commercial viability of these mining blocks.
A report co-authored by Bansal on the challenges of India’s critical mineral supply chain also said lack of vertical integration opportunities from critical mineral mining could hamper commercial exploration efforts. “Demand for these mineral concentrates is also limited due to the absence of processing capacity in India,” the report says.
According to Majumder, the government should do more pilot projects and make data on reserves and environmental impacts public, and open the sector in a phase-wise manner. “This would ensure transparency and also help build confidence in the industry,” he said.
Mongabay India wrote to the Ministry of Mines seeking comment on the ongoing protests against offshore mining, as well as extension for bid submission. No response was received till the time of publishing.
Read more: Assessing coastal disaster risks in central Kerala
Banner image: An aerial view of the coast of Kollam, Kerala, whose three mineral blocks are estimated to hold 302 million tonnes of construction sand in reserves, according to tender documents. Image by Arunvrparavur via Wikimedia Commons (CC BY-SA 4.0).
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