Government cancels auction of Nayakkarpatti tungsten mineral block in Tamil Nadu

The government on Thursday said it has cancelled the auction of Tamil Nadu's Nayakkarpatti tungsten mineral block which is near the Arittapatti Biodiversity site and a number of cultural heritage sites. Tungsten is a critical and strategic mineral.

The announcement came a day after representatives of local Ambalakarars community from Madurai district met coal and mines minister G Kishan Reddy and urged him to cancel the sale of the block.

"During the meeting on January 22, 2025, the Ambalakarars requested the Union minister to cancel the auction of the Nayakkarpatti tungsten block. The Union minister patiently heard the delegation and expressed that the Union government fully supports the bio diversity heritage protection.

"After detailed deliberations, considering the importance of the biodiversity heritage site in the area and the commitment of the government of India under Prime Minister Shri Narendra Modi's leadership towards protecting traditional rights, it has been decided to annul the auction of Nayakkarpatti tungsten mineral block," the mines minister said in a statement.

The mine covering over 20.16 sq km area was proposed for the auction in February last year. Inputs were taken from the government of Tamil Nadu before the block was put up for auction.

Tamil Nadu Chief Minister M K Stalin had earlier urged Prime Minister Narendra Modi to cancel the award of tungsten mining rights in Madurai district.

Stalin asserted that his government will not allow mining there considering aspects such as a biodiversity heritage site and people's opposition.

The state government had informed that land schedule details were unavailable.

It was also informed that a quarry lease for granite over 47.37 hectares in Aritapatti village, Melur Taluk, had been granted to TAMIN, a state government entity, on September 19, 2008 for 30 years.

Vedanta group firm Hindustan Zinc Ltd emerged as the preferred bidder in the auction of the block on November 7 last year.

Since February, when the block was first put to auction and till the declaration of result, "there was no communication from any quarter including state government regarding any opposition to the auction. Nor did the state government request the central government to drop the block from auction," the mines ministry said.

This block was auctioned as a composite licence block, which means that the block has been partially explored and the successful bidder will have to carry out exploration in the block before mining lease is granted.