Indian firms seek help from Dutch Royal IHC for deep-sea mineral exploration

Some Indian mining and cement companies have approached Dutch shipbuilder Royal IHC for technical assistance as they prepare to bid for deep-sea mineral blocks up for auction, two sources with direct knowledge of the matter told Reuters.

In November, India launched the first tranche of auction for 13 offshore deep-sea mineral blocks, including three lime mud blocks, three construction sand blocks, and seven polymetallic nodule blocks.

The blocks contain critical minerals, including cobalt, copper, manganese, and nickel, which are vital for electric vehicles and solar panels.

Bidding for the first tranche of the auction is expected to conclude by the end of March.

Unlike countries like China, India is not yet prepared to extract minerals from the ocean's depths due to a lack of seabed mining expertise, experts say.

Anticipating a surge in demand, India, the world's fastest-growing major economy, is keen to accelerate seabed mineral exploration to boost the supply of raw materials critical for energy transition technologies.

India, the world's third-biggest emitter of greenhouse gases, aims to add 500 gigawatts (GW) of renewable energy by 2030, up from 165 GW currently, while also aiming for net zero emissions by 2070.

IHC has assisted with knowledge of mining techniques and helping Indian companies estimate costs for extracting minerals from offshore blocks, one of the sources said.

"The company is also open to providing mining equipment to its clients should the opportunity arise," the source said.

Both sources did not wish to be identified as talks were confidential.

India's Ministry of Mines did not respond to a Reuters email seeking comment, while Royal IHC declined to comment.

About 14 foreign miners from France, Namibia, the Netherlands, Norway, and Sweden participated in a government-sponsored virtual seminar aimed at explaining opportunities in offshore mining in India, according to the second source.

India has also offered financial incentives to encourage miners to participate in the country's first-ever attempt to explore seabed minerals, the sources said.

New Delhi has had limited success in its onshore critical minerals auction, with only about half of the 48 blocks successfully awarded to bidders.