The lack of bids for the Jammu and Kashmir lithium block in the first round of auctions likely stemmed from a couple of factors, the sources added.
“The biggest concern seems to be the level of exploration conducted. Referred to as “G3 level”, it indicates a relatively low level of confidence about the actual quantity and quality of the lithium reserves. This ambiguity makes it difficult for potential bidders to assess the true value of the block”, one of the potential bidders said.
Sources also indicate that there are concerns related to perceived unviability.
“In the face of limited data, there might be a perception that the block is not commercially viable. This could be due to factors like the amount of extractable lithium and the difficulty of extraction, due to logistical reasons”, an official said.
However, the lithium block is now being re-auctioned as part of a larger tranche encompassing several critical mineral blocks. This suggests the government might be hoping to attract interest by bundling the J&K block with other more promising ones.
The more promising blocks pertain to critical minerals, such as Glauconite, Graphite, Nickel, Platinum Group Elements (PGE), Potash, Lithium, and Titanium, according to a report in Business Standard. They are spread across Bihar, Jharkhand, Tamil Nadu and Uttar Pradesh.
