UPSC Prelims Practice Questions — Ministry of Mines to Launch Second Tranche of Exploration Licence Auctions

Q1. The auctions of Exploration Licence (EL) blocks for critical and deep-seated minerals, including the Second Tranche launched in 2026, are conducted under which Union Ministry?

  • A. Ministry of Mines
  • B. Ministry of Coal
  • C. Ministry of Earth Sciences
  • D. Ministry of Steel

Q2. Consider the following minerals with reference to the Seventh Schedule of the MMDR Act (minerals for which an Exploration Licence can be granted): 1. Lithium 2. Rare Earth Elements 3. Uranium 4. Molybdenum Which of the above is/are NOT correctly included among the minerals eligible for an Exploration Licence?

  1. Lithium is a mineral for which an Exploration Licence can be granted.
  2. Rare Earth Elements are minerals for which an Exploration Licence can be granted.
  3. Uranium is a mineral for which an Exploration Licence can be granted.
  4. Molybdenum is a mineral for which an Exploration Licence can be granted.
  • A. 1 and 2
  • B. 3 only
  • C. 2 and 4
  • D. 1, 3 and 4

Q3. Under the Mines and Minerals (Development and Regulation) Amendment Act, 2023, an Exploration Licence authorises the holder to undertake which of the following operations?

  • A. Reconnaissance and prospecting operations, or either of them
  • B. Prospecting and mining operations
  • C. Reconnaissance, prospecting and mining operations
  • D. Mining operations only

Q4. Under the MMDR Amendment Act, 2023, which single authority was empowered to EXCLUSIVELY auction Mining Leases and Composite Licences for the critical and strategic minerals listed in Part D of the First Schedule?

  • A. The Central Government
  • B. The concerned State Government
  • C. The Geological Survey of India
  • D. The Indian Bureau of Mines

Q5. The Second Tranche of Exploration Licence auctions launched by the Ministry of Mines in 2026 comprised how many mineral blocks?

  • A. 9 blocks
  • B. 10 blocks
  • C. 11 blocks
  • D. 13 blocks

Q6. With reference to the Second Tranche of Exploration Licence (EL) auctions and its predecessor, consider the following statements: 1. The Second Tranche offers Exploration Licences, whereas the first tranche of Critical & Strategic Mineral block auctions (November 2023) offered Composite Licences and Mining Leases. 2. The Second Tranche covers 11 blocks spread across eight States. 3. The Second Tranche was launched in November 2023. Which of the statements given above is/are correct?

  1. The Second Tranche offers Exploration Licences, whereas the first tranche of Critical & Strategic Mineral block auctions (November 2023) offered Composite Licences and Mining Leases.
  2. The Second Tranche covers 11 blocks spread across eight States.
  3. The Second Tranche was launched in November 2023.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q7. How many minerals were identified in the list of critical minerals for India released by the Ministry of Mines in 2023?

  • A. 24 minerals
  • B. 29 minerals
  • C. 30 minerals
  • D. 34 minerals

Q8. In the context of India's mineral policy, a 'critical mineral' is best described as which one of the following?

  • A. A mineral with high supply risk and high economic importance, essential for economic development and national security
  • B. A mineral that is entirely imported and never found within Indian territory
  • C. A mineral occurring only in deep-seated deposits below the reach of ordinary mining
  • D. A radioactive mineral reserved exclusively for use by the atomic energy sector

Q9. The first-ever auction (first tranche) of Critical and Strategic Mineral blocks launched on 29 November 2023 offered how many mineral blocks?

  • A. 16 blocks
  • B. 18 blocks
  • C. 20 blocks
  • D. 24 blocks

Q10. Consider the following statements about the Geological Survey of India (GSI): 1. It was established in 1851. 2. It functions as an attached office under the Ministry of Mines. 3. Its mandate includes creation and updating of national geoscientific information and mineral resource assessment. 4. It is the statutory authority empowered to auction critical mineral blocks. Which of the statements given above is/are NOT correct?

  1. It was established in 1851.
  2. It functions as an attached office under the Ministry of Mines.
  3. Its mandate includes creation and updating of national geoscientific information and mineral resource assessment.
  4. It is the statutory authority empowered to auction critical mineral blocks.
  • A. 1 and 3
  • B. 2 only
  • C. 4 only
  • D. 3 and 4

Q11. Under the MMDR Amendment Act, 2025 (effective 1 September 2025), which authority has been mandated to grant a lease for a minor mineral (other than sand) only after exploration of the area up to the G3 level?

  • A. The State Governments
  • B. The Central Government
  • C. The Geological Survey of India
  • D. The Indian Bureau of Mines

Q12. With reference to the types of mineral concessions under the MMDR framework, consider the following statements: 1. A Reconnaissance Permit may be granted for an area up to 5,000 sq km, whereas a Prospecting Licence is limited to an area up to 25 sq km. 2. An Exploration Licence permits operations under a single licence in an area up to 1,000 sq km. 3. A Mining Lease alone authorises reconnaissance operations. Which of the statements given above is/are correct?

  1. A Reconnaissance Permit may be granted for an area up to 5,000 sq km, whereas a Prospecting Licence is limited to an area up to 25 sq km.
  2. An Exploration Licence permits operations under a single licence in an area up to 1,000 sq km.
  3. A Mining Lease alone authorises reconnaissance operations.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3