UPSC Prelims Practice Questions — Ministry of Mines to Launch Eighth Tranche of Auction of Critical and Strategic Mineral Blocks

Q1. The Eighth Tranche of the auction of Critical and Strategic Mineral Blocks launched by the Ministry of Mines in July 2026 offers 20 blocks spread over 9 States. Which one of the following forms the single largest category among these 20 blocks?

  • A. Blocks newly identified and offered for auction for the first time
  • B. Blocks re-offered in a second attempt after an earlier unsuccessful auction
  • C. Offshore polymetallic nodule blocks within India's Exclusive Economic Zone
  • D. Blocks offered exclusively for grant of an Exploration Licence

Q2. With reference to the Eighth Tranche of auction of Critical and Strategic Mineral Blocks as compared with the Seventh Tranche, consider the following statements: 1. The Eighth Tranche offers a larger number of blocks than the Seventh Tranche did. 2. Unlike the Seventh Tranche, which was conducted by the Central Government, the Eighth Tranche is being conducted by the respective State Governments in whose territory the blocks lie. 3. The Eighth Tranche includes blocks that had been offered in an earlier tranche but did not find a successful bidder. Which of the statements given above is/are correct?

  1. The Eighth Tranche offers a larger number of blocks than the Seventh Tranche did.
  2. Unlike the Seventh Tranche, which was conducted by the Central Government, the Eighth Tranche is being conducted by the respective State Governments in whose territory the blocks lie.
  3. The Eighth Tranche includes blocks that had been offered in an earlier tranche but did not find a successful bidder.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q3. The 'Exploration Licence' introduced by the Mines and Minerals (Development and Regulation) Amendment Act, 2023 is best defined as which one of the following?

  • A. A concession granted invariably by the Central Government, on first-come-first-served basis, permitting only reconnaissance survey of deep-seated minerals
  • B. A concession granted by auction, in which the successful bidder is the one quoting the lowest share of the auction premium of the mining lease subsequently granted for the area, and which permits reconnaissance and prospecting operations for specified deep-seated and critical minerals
  • C. A licence that entitles its holder to an automatic mining lease over the entire licensed area on completion of exploration, without any further auction
  • D. A permit issued to public sector undertakings alone for exploring minerals notified in Part D of Schedule-I of the MMDR Act, 1957

Q4. With reference to India's list of 30 critical minerals released in 2023, which one of the following is correct?

  • A. The list was drawn up by a Committee constituted by the Ministry of Mines, which also recommended that a Centre of Excellence on Critical Minerals periodically update the list, preferably every three years
  • B. The list was drawn up by NITI Aayog and is required by statute to be revised every five years by the Geological Survey of India
  • C. The list was notified by the Ministry of Earth Sciences under the Offshore Areas Mineral (Development and Regulation) Act, 2002, and all 30 minerals were placed in Part D of Schedule-I
  • D. The list was prepared by the Indian Bureau of Mines and its updation was entrusted to the National Mineral Exploration Trust

Q5. Across the seven tranches of auction of critical and strategic mineral blocks completed before the launch of the Eighth Tranche, how many blocks were successfully auctioned?

  • A. 34 blocks
  • B. 46 blocks
  • C. 56 blocks
  • D. 88 blocks

Q6. In the tranche-wise auctions of critical and strategic mineral blocks, the expression 'block put up in a second attempt' refers to which one of the following?

  • A. A block whose auction in an earlier tranche was unsuccessful or had to be annulled, and which is therefore offered afresh in a subsequent tranche
  • B. A block in which the bidder who quoted the second-highest premium is declared the preferred bidder after the highest bidder withdraws
  • C. A block for which a Composite Licence was already granted and which is now re-offered for a Mining Lease after the prospecting stage is complete
  • D. A block whose mining lease has expired and which is being re-auctioned on the lapse of the original lease period

Q7. With reference to the grant of mineral concessions under the Mines and Minerals (Development and Regulation) Act, 1957, consider the following statements: 1. A Mining Lease is offered where the mineral deposit in the block has already been established through exploration, whereas a Composite Licence is offered where the block requires further prospecting before mining can begin. 2. A Composite Licence is a two-stage concession, comprising a prospecting licence followed, on establishment of the deposit, by a mining lease over the same area. 3. For the minerals listed in Part D of Schedule-I, both Mining Leases and Composite Licences are auctioned by the State Government in whose territory the block lies. Which of the statements given above is/are correct?

  1. A Mining Lease is offered where the mineral deposit in the block has already been established through exploration, whereas a Composite Licence is offered where the block requires further prospecting before mining can begin.
  2. A Composite Licence is a two-stage concession, comprising a prospecting licence followed, on establishment of the deposit, by a mining lease over the same area.
  3. For the minerals listed in Part D of Schedule-I, both Mining Leases and Composite Licences are auctioned by the State Government in whose territory the block lies.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q8. With reference to Khanij Bidesh India Ltd. (KABIL), which one of the following is correct?

  • A. It is a joint venture of NALCO, Hindustan Copper Ltd. and Mineral Exploration Company Ltd. in the equity ratio 40:30:30, set up under the Ministry of Mines to acquire strategic mineral assets abroad
  • B. It is a statutory corporation established under the MMDR Amendment Act, 2023 to conduct the auction of critical mineral blocks on behalf of the Central Government
  • C. It is a joint venture of the Geological Survey of India and the Indian Bureau of Mines under the Ministry of External Affairs, mandated to negotiate mineral supply agreements with friendly countries
  • D. It is a trust constituted under the MMDR Act, 1957 and financed by a levy on lease-holders, whose funds are used for regional and detailed exploration within India