J&K lithium auction: As limited data keep bidders away; govt mulls new approach

Srinagar: As the maiden auction of lithium critical mineral in Jammu & Kashmir (J&K) found  almost no takers, the government is said to consider a new approach with new terms and conditions.
According to sources, the government did not receive a single bid for the lithium block in J&K in the first round, Business Standard reported on Tuesday.

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.

2 COMMENTS

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