India’s First Lithium Deposit Auction Process to Commence Next Week in Reasi, Jammu and Kashmir Union Territory
Authoritative sources have indicated that the process for auctioning India’s first-ever lithium deposits, located in the Reasi district of the Jammu and Kashmir Union Territory, is poised to begin next week with the issuance of global tenders. All necessary formalities have been nearly completed for this significant development.
These sources have informed Excelsior that preparations have been finalized for the auction of lithium reserves, and an e-tender inviting global bidders is expected to be released in the first week of October. The Government of India will be responsible for issuing the tender, following the recent classification of lithium as a strategic mineral among 24 minerals through an amendment to the Mines and Minerals (Development and Regulation) Act. Furthermore, the Government of the Jammu and Kashmir Union Territory has provided the essential data concerning the status of the land in the Salal-Haimna area of the Reasi district where the lithium deposits were discovered.
In February of the previous year, the government publicly announced the discovery of the first lithium deposits, estimated to contain 5.9 million tonnes, in the Reasi district. Lithium, a non-ferrous metal, plays a crucial role in Electric Vehicle batteries and various other industries.
According to sources, data from the Reasi District Administration reveals that there is a total of 18,913 Kanals and 17 Marlas of land containing lithium. This includes 3,929 Kanals of private land, 269 Kanals and 7 Marlas of state land, and 14,715 Kanals and 10 Marlas of forest land. Additionally, the area is inhabited by 326 families and includes 418 residential structures, 13 institutional structures, and 24,239 trees.
The latest information on land status was provided by the Government of Jammu and Kashmir to the Union Ministry of Mines, which will subsequently invite bids for the auction. Upon the successful completion of the auction, the Central Government will inform the J&K Government of the preferred bidder’s details. The exploration license will then be granted by the Government of J&K to the preferred bidder, as prescribed by the Central Government, for a period of five years from the date of execution of the exploration license.
It is worth noting that the Geological Survey of India (GSI), a subsidiary of the Ministry of Mines, conducted a G3 stage mineral exploration project in the Salal-Haimna areas of Reasi district during the 2020-21 and 2021-22 Field Seasons. The GSI estimated an inferred resource (G3) of 5.9 million tonnes of lithium ore during this exploration. Interestingly, while searching for limestone in Jammu and Kashmir, the exploration team stumbled upon deposits of limestone, bauxite, and lithium.
The processing and refining methods for lithium ore can vary depending on the type of lithium deposit, ore characteristics, and the intended use of the lithium compounds. According to the government, India possesses the capability to develop technologies for the beneficiation of lithium ore into lithium mineral concentrate. Successful experimentation has been conducted for lithium extraction from mineral concentrate on a laboratory scale.
