NEW DELHI: State-owned Oil and Natural Gas Corporation (ONGC) is looking to venture into mining of offshore minerals given the company’s technical expertise in drilling in subsurface and offshore areas, a senior executive at the company said.
“We are not looking to bid right now (under the first tranche of offshore mineral auction) but we do have acreages offshore so we will be happy if we get something there,” the source said.
This comes amid the government’s target of increasing domestic exploration and production of critical minerals to achieve the country’s net zero targets by 2070 and reduce dependency on imports of such minerals. Minerals like lithium, copper, cobalt and rare earth elements are used in various sectors like nuclear energy, renewable energy, space, defence, telecommunications, etc.
In line with this, the ministry of mines recently launched the first tranche of auction of offshore minerals putting 13 such blocks under the hammer. While ONGC may not bid under the first round, the executive noted that the company may bid for offshore blocks going forward.
“We have a lot of laboratories because we do it for the subsurface, so we can do it for this (offshore minerals) plus we are trying to give a little bit more emphasis to critical minerals,” said the source adding that the company wants to pool its resources with the government and come up with a holistic plan for offshore mineral mining.
In September, ONGC Videsh, a wholly-owned subsidiary of ONGC, along with Oil India (OIL), and Khanij Bidesh India (KABIL) signed a Memorandum of Understanding (MoU) with International Resources Holding (IRH), UAE, to collaborate globally on the critical mineral supply chain. The primary goal of this MoU is to identify, acquire, and develop critical mineral projects worldwide, including India, the company had said.
ONGC aims to achieve net zero operational emissions by 2038. To realise this goal, the company is also expanding its renewable energy portfolio developing wind, hydro, and hybrid projects. The government, under the first tranche of offshore mineral auction, has put three lime mud, three construction sand, and seven polymetallic nodules and crusts on sale.
The demand for critical minerals is going to rise in India with demand for lithium likely to rise eight times, the coal and mines minister G Kishan Reddy had said. The government is also expecting Cabinet’s approval on the Critical Mineral Mission soon.
Mines secretary V L Kantha Rao had earlier said that the government has kept royalty rates on mineral blocks at a lower level to attract industry partners. “We are now looking for industry partners to come and partner with us for exploiting mineral wealth,” he had said. The government is also seeking international tie-ups for exploration of critical minerals and plans to conduct roadshows in various countries.
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