 |
| Vedanta Manganese Block |
Strategic acquisition marks Vedanta's entry into India's manganese mining landscape
Vedanta has been named the preferred bidder for the Vedanta manganese block in Andhra Pradesh. The Punnam block spans 152 hectares and is at the G4 exploration stage. This designation signals early-stage exploration with potential for scalable manganese extraction.
Composite license enables full-cycle exploration and mining
The Vedanta manganese block award includes a composite licence, allowing both prospecting and future mining. However, final approval depends on performance guarantees, regulatory clearance, and agreement execution with state authorities. This license structure aligns with India’s efforts to streamline mineral development and reduce import dependency.
Meanwhile, Vedanta confirmed its continued use of coal as a primary energy source for mining. The company aims to cut coal usage to 50–60% within four years by expanding renewable integration. Despite environmental pressures, coal remains central to current operations.
Government scrutiny continues amid corporate restructuring
In contrast, Vedanta faces regulatory challenges regarding its planned demerger into four entities. The Indian Government raised objections, citing concerns about recovering outstanding dues. During a recent tribunal hearing, officials accused Vedanta of altering the demerger terms post-approval by SEBI, India’s market regulator. This legal uncertainty may impact investor confidence and execution timelines.
Nevertheless, securing the Vedanta manganese block represents strategic diversification. Manganese is critical for steelmaking and battery technologies, and India seeks to localize supply chains for energy transition metals. Vedanta’s entry may enhance domestic capacity and reduce reliance on imports, especially from South Africa and Gabon.
ScrapInsight Commentary
Vedanta’s preferred bidder status for the Andhra Pradesh manganese block signals India's intent to localize strategic mineral assets. Manganese is crucial for both alloyed steel and emerging battery chemistries. If development proceeds, this asset could improve India's resource security while boosting Vedanta’s upstream portfolio. However, regulatory headwinds tied to Vedanta’s restructuring may complicate execution in the short term.
