Vedanta Named Preferred Bidder for Punnam Manganese Block in AP

HYDERABAD — Natural resources conglomerate Vedanta Limited has been officially declared the preferred bidder for the Punnam manganese block in Andhra Pradesh following a competitive e-auction conducted by the state government. The mineral concession, which covers an exploratory footprint of 152 hectares, represents a critical addition to the mining giant’s upstream mineral portfolio as domestic industrial demand for manganese accelerates across the steel manufacturing and clean energy transition sectors. The formal notification from the state’s mining authorities paves the way for the grant of a composite exploration-cum-mining license subject to statutory requirements and regulatory clearances.

E-Auction Outcome and Mineral Block Details

The allocation process was conducted by the Department of Mines & Geology, Government of Andhra Pradesh, under the transparent electronic auction framework mandated by India’s mineral concession rules. Following technical qualification during the initial bidding phase, Vedanta emerged as the highest bidder in the live auction.

The Punnam manganese block, situated in Andhra Pradesh, is classified at the G4 exploration level (reconnaissance stage). Under this classification, preliminary geological surveys have identified mineral potential, requiring the concessionaire to undertake detailed drilling, resource quantification, and feasibility studies.

Under the composite license framework, Vedanta will execute exploratory drilling to advance the block from G4 to G2/G1 reserve status, followed by formal commercial extraction rights once environmental and forest clearances are secured.

Regulatory Pathway and Milestone Requirements

The formal grant of the composite license for the Punnam manganese block remains contingent upon several procedural and statutory milestones:

• Performance Bank Guarantee: Submission of the required financial guarantee to the Andhra Pradesh state government.

• Statutory Compliance: Fulfillment of conditions outlined in the tender documents and model concession agreements.

• Environmental & Forest Clearances: Securing approvals from the Ministry of Environment, Forest and Climate Change (MoEFCC) and local pollution control boards prior to core drilling and commercial extraction.

• Mine Development & Production Agreement (MDPA): Formal execution of mining leases with the state authorities upon completion of the prospecting stage.

Strategic Significance for Steel and Energy Transition

Manganese serves as an indispensable raw material for the industrial economy, with more than 90% of global output utilized as an alloying element and deoxidizer in crude steel and ferroalloy production. Beyond metallurgy, manganese has emerged as a designated critical mineral essential for cathode chemistries in next-generation lithium-ion battery technology, electric vehicles (EVs), and grid energy storage systems.

For Vedanta, securing the Punnam manganese block in Andhra Pradesh expands its domestic resource base and reinforces supply security across heavy industrial value chains.

For institutional investors and industrial consumers, Vedanta’s entry into manganese mining aligns with the Government of India’s strategic mandate to reduce import dependency on essential minerals, bolster raw material self-reliance, and streamline domestic mineral auctions.

Official Sources

The disclosure was officially communicated via a regulatory compliance filing under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations:

• Corporate Announcement Portal, BSE Limited

• Regulatory Filings Desk, National Stock Exchange of India (NSE)

• Department of Mines & Geology, Government of Andhra Pradesh

• Media & Investor Relations, Vedanta Limited

Official Statement

"According to regulatory filings submitted to stock exchanges, Vedanta Limited confirmed it has received official communication declaring the company as the preferred bidder for the Punnam manganese block in Andhra Pradesh, with the formal grant of a composite license subject to the submission of performance bank guarantees and necessary statutory clearances."

Why It Matters

Securing domestic mineral concessions is essential for sustaining India's heavy manufacturing, infrastructure development, and clean mobility goals. Vedanta’s selection for the Punnam manganese block in Andhra Pradesh enhances domestic mining capacity, fosters regional employment opportunities in Andhra Pradesh, and supports long-term industrial self-sufficiency in essential alloying elements and critical battery materials.

Key Facts at a Glance

• Preferred Bidder: Vedanta Limited declared successful bidder for the Punnam manganese block.

• Geographical Footprint: 152 hectares located in Andhra Pradesh.

• License Structure: Composite License covering mineral prospecting and subsequent commercial mining.

• Mineral Usage: Critical for domestic steelmaking, ferroalloys, and advanced EV battery cathodes.

• Next Steps: Furnishing performance bank guarantee and securing environmental clearances.

Frequently Asked Questions

What did Vedanta win in the Andhra Pradesh auction?

Vedanta Limited emerged as the preferred bidder for the Punnam manganese block, a 152-hectare mineral block located in Andhra Pradesh, through a state-conducted e-auction.

What is a composite license?

A composite license (prospecting licence-cum-mining lease) grants the holder the legal right to explore an allotted area to establish mineral reserves and subsequently convert the concession into a full commercial mining lease if extraction is economically viable.

What stage of exploration is the Punnam manganese block in?

The block is currently classified at the G4 exploration stage, which represents the reconnaissance phase where preliminary geological surveying has identified mineral potential.

Why is manganese considered a critical raw material?

Manganese is a vital deoxidizing and alloying element in steel manufacturing and is increasingly utilized in advanced cathode chemistries for electric vehicle batteries and energy storage systems.

Sources:

• Corporate Announcements Desk, BSE India

• Regulatory Filings Section, NSE India

• Department of Mines & Geology, Government of Andhra Pradesh

• Corporate Disclosures Office, Vedanta Limited