UPSC Prelims Practice Questions — Secretary, Ministry of Mines Virtually Launched Auction of Two Offshore Mineral Blocks; Urges Active Industry Participation

Q1. With reference to the rights of a coastal State over seabed resources under the United Nations Convention on the Law of the Sea (UNCLOS), consider the following statements: Which of the statements given above are correct?

  1. A coastal State's sovereignty over its territorial sea extends to the seabed and subsoil beneath that belt of sea.
  2. In its Exclusive Economic Zone, a coastal State's sovereign rights cover only living resources, so seabed minerals there lie outside those rights.
  3. If a coastal State does not exploit its continental shelf, no other State may do so without the express consent of the coastal State.
  4. A coastal State's continental shelf can extend beyond 200 nautical miles where its continental margin extends that far.
  • A. 1, 2, 3 and 4
  • B. 1, 3 and 4 only
  • C. 1 and 2 only
  • D. 2 and 4 only

Q2. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. Under UNCLOS, a coastal State that exploits the non-living resources of its continental shelf beyond 200 nautical miles must make payments or contributions through the International Seabed Authority.
  2. Under UNCLOS, the portion of a coastal State's continental shelf lying beyond 200 nautical miles forms part of 'the Area', whose resources are the common heritage of mankind.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q3. Consider the following assertion: The 2023 amendment to the Offshore Areas Mineral (Development and Regulation) Act, 2002 was designed to remove discretion from the allocation of offshore mineral rights to private parties. Which of the following statements support the above assertion?

  1. Production leases and composite licences can be granted to private entities only through competitive bidding.
  2. A production lease, including one granted under a composite licence, is valid for 50 years.
  3. The Act classifies offshore operations into reconnaissance, exploration and production.
  4. Applications for concessions pending under the earlier regime were rendered void.
  • A. 1, 2, 3 and 4
  • B. 1, 3 and 4 only
  • C. 2 and 3 only
  • D. 1 and 4 only

Q4. With reference to mineral concessions in India, consider the following statements: Which of the statements given above is/are correct?

  1. The exploration stage of an offshore composite licence is time-bound, so the licensee cannot hold the block indefinitely without proving resources.
  2. The onshore Exploration Licence introduced in 2023, like the offshore composite licence, carries a right to proceed to production of the minerals found.
  3. The onshore Exploration Licence covers reconnaissance and prospecting operations for critical and deep-seated minerals.
  • A. 1 and 3 only
  • B. 2 only
  • C. 1 only
  • D. 2 and 3 only

Q5. With reference to the International Seabed Authority (ISA), consider the following statements: Which of the statements given above is/are correct?

  1. It regulates exploration for and exploitation of mineral resources of the seabed beyond the limits of national jurisdiction.
  2. India explores polymetallic nodules in the Central Indian Ocean Basin under its own national auction regime, with no contract with the ISA.
  3. It is a body created by a resolution of the UN General Assembly, independent of the UN Convention on the Law of the Sea.
  • A. 1 and 2 only
  • B. 1, 2 and 3
  • C. 1 only
  • D. 2 and 3 only

Q6. Consider the following facts: IUCN supports a moratorium on deep-seabed mining unless and until conditions such as application of the precautionary principle are met. The International Seabed Authority, which governs mineral activity on the seabed beyond national jurisdiction, has not yet finalised its regulations for commercial exploitation. India has opened auctions for polymetallic nodule blocks in the Andaman Sea lying within its own maritime zones. Which of the following inferences can validly be drawn from the above?

  1. IUCN's call for a moratorium is legally binding on States that are members of the ISA.
  2. A moratorium adopted at the ISA would not, by itself, legally bar exploitation of the Andaman Sea blocks.
  3. India's auction of these blocks breaches its obligations under UNCLOS.
  4. A company seeking to commercially mine nodules in the international seabed today has no finalised ISA exploitation regime to operate under.
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 2, 3 and 4 only
  • D. 1, 2 and 4 only

Q7. With reference to the Offshore Areas Mineral Trust created by the 2023 amendment to the OAMDR Act, consider the following statements: Which of the statements given above is/are correct?

  1. Concession holders pay contributions to the Trust in addition to royalty, rather than as a share carved out of it.
  2. Funds of the Trust may be used for exploration in offshore areas but not for research on the ecological effects of offshore mining.
  • A. 1 only
  • B. 2 only
  • C. Both 1 and 2
  • D. Neither 1 nor 2