UP begins fourth phase of mineral block auctions

Lucknow: In a bid to harness the wealth of mineral resources within Uttar Pradesh, the Yogi Adityanath government has started the fourth phase of mineral block auctions.

The geology and mining department of the state government will auction a total of 11 different mineral blocks in the fourth phase as part of the strategic mission of the government aimed at enhancing the prosperity of UP, according to a government spokesman.

“Through this initiative, the state government is poised to attract substantial investments and generate employment opportunities on a significant scale. It is worth highlighting that in 2022, the state government achieved notable success by successfully conducting auctions of four blocks in three phases,” said the spokesman.

He further said that for a long time, the state was dependent on other countries for various minerals, which often posed challenges related to their supply within the state. So, the state government decided to use its resources to meet the state’s needs, in addition to other states in the country. This will help stop imports while boosting export prospects in the state.

Besides, Uttar Pradesh will become self-reliant in the field of minerals while new employment opportunities will be available to the youth of the state through large-scale investment, he added.

In the fourth phase, 11 mineral blocks are being auctioned. Of these, a maximum of 10 blocks is in Sonbhadra, while one block is in Lalitpur (Bundelkhand). Sonbhadra includes five blocks of andalusite, two blocks of gold, and one block each of sillimanite, iron ore, and limestone, whereas there is a block of iron ore in Lalitpur.

“Notably, limestone plays a pivotal role in cement production, while iron ore is a vital component in the steel-making process, making these resources of paramount importance in various industries,” the spokesman said.

Prior to this, the government had conducted auctions in three phases in 2022 under the provisions of the Mineral Auction Rules, 2015, issued by the government. In these auctions, three blocks were for the extraction of rock phosphate, a key raw material in the production of phosphate fertiliser, in Lalitpur.

Additionally, approval had also been granted for one block in Sonbhadra for the extraction of gold metal.

In addition to this, preparations are underway for the auction of four more mineral blocks in October.

At the government level, action is being taken to issue a global tender in October for one block related to the highly valuable platinum group metals found in Lalitpur district of Uttar Pradesh, one block of fertiliser mineral rock phosphate, and two blocks related to the mineral potash used in potash fertiliser production in Sonbhadra.