Offshore Sand Mining in Kerala | 23 Jan 2025

Source: DTE 

Why in News?  

The Union government’s move to begin offshore sand mining along Kerala’s coast under the Offshore Areas Mineral (Development and Regulation) Amendment Act, 2023 ( (OAMDR Amendment Act), has drawn sharp opposition from the state government and local communities over concerns about ecological and livelihood impacts. 

Why is the Government Pushing for Offshore Sand Mining? 

• Economic Potential: The Centre's decision to permit offshore mining of construction sand is based on a study by the Geological Survey of India (GSI).  
  • Since 1985, GSI surveys have identified construction-grade sand resources off Ponnani, Chavakkad, Kochi, Alappuzha, and Kollam, at water depths ranging from 22 to 45 metres. 
  • These deposits, located within Indian territorial waters (up to 12 nautical miles) and in the Exclusive Economic Zone (EEZ), contain sand with a range of 80% to 96% purity and clay content between 4% and 20%.  
    • The sand, originally sourced from rivers, has undergone marine processes, making it suitable for construction after desalination.  
  • With an estimated 750 million tonnes of reserves, these sand deposits could satisfy Kerala's construction needs for the next 25 years, at a rate of 30 million metric tonnes annually. 
• Auction Plan: The Centre under the OAMDR Amendment Act, 2023 plans to auction sand blocks in five sectors of Kerala’s coastal areas, including Ponnani, Chavakkad, Alappuzha, Kollam North, and Kollam South. 
• Revenue Generation: The offshore sand mining is expected to bring in significant income through shipping, trade, and Goods and Services Tax (GST)  collection. 

What is Offshore Mining? 

• About:  Offshore mining involves extracting minerals or precious stones from the seabed. 
• Potential for Offshore Mining in India: India’s EEZ spans over two million square kilometers, the GSI has delineated resources of various minerals in the offshore areas. 
  • Lime mud: 153,996 million tons (off Gujarat and Maharashtra coasts) 
  • Construction-grade Sand: 745 million tons (off Kerala coast) 
  • Heavy Mineral Placers: 79 million tons (off Odisha, Andhra Pradesh, Kerala, Tamil Nadu, Maharashtra coasts) 
  • Polymetallic Nodules: Andaman Sea and Lakshadweep Sea. 
• Offshore Critical Mineral Auction: India launched its first-ever offshore critical mineral auction in 2024 under the OAMDR Act, 2002 offering 13 blocks across the Arabian Sea and Andaman Sea. 
  • The auction targets critical minerals like lithium, cobalt, nickel, and copper, essential for infrastructure, renewable energy, and advanced technologies.  
    • With this initiative, India aims to reduce import reliance, enhance resource availability, and strengthen its position in the global mineral market. 

What are the Laws and Rules Governing Offshore Mining? 

• OAMDR Amendment Act 2023: The Act amends the Offshore Areas Mineral (Development & Regulation) Act (OAMDR Act), 2002, which governs the exploration and extraction of mineral resources in India’s territorial waters, continental shelf, and EEZ.  
  • OAMDR Amendment Act 2023 introduces a transparent auction process for offshore operating rights, establishes a trust for mining-affected people, and boosts exploration.  
    • It removes discretionary renewals, and sets a 50-year lease period. 
  • To implement the amended provisions of the OAMDR Act, the Ministry of Mines has framed Offshore Areas (Existence of Mineral Resources) Rules, 2024 and Offshore Areas Operating Right Rules, 2024. 
• Offshore Areas (Existence of Mineral Resources) Rules, 2024: These rules apply to all minerals in offshore areas, excluding mineral oils, hydrocarbons.  
  • They do not affect the Atomic Energy Act, 1962, or the provisions related to minerals specified in Part B of the First Schedule of the Mines and Minerals (Development and Regulation) Act, 1957. 
  • Stages of Exploration: The rules define four stages for exploration. 
    • Reconnaissance Survey (G4): Initial phase for identifying mineral deposits. 
    • Preliminary Exploration (G3): More detailed exploration based on G4 findings. 
    • General Exploration (G2): Further detailed exploration that could lead to production. 
    • Detailed Exploration (G1): Final stage confirming the precise nature of resources. 
    • A minimum of G2 level exploration is required for auctioning blocks for production leases. 
• Offshore Areas Operating Right Rules, 2024: Lessees can surrender their lease after 10 years if operations become uneconomical.    
  • Lessees must report new mineral discoveries within 60 days and update their lease deeds accordingly. 
  • Government bodies have priority access to reserved offshore zones for securing operating rights. 

What are the Concerns Regarding Offshore Mining? 

• Pollution Risks: Offshore mining creates sediment plumes and releases toxic wastewater containing heavy metals, posing long-term risks to marine life, and ecosystems reliant on marine resources. 
  • In Kerala, environmentalists warn that offshore sand mining could destabilize ecosystems, weaken natural defenses against tsunamis, cyclones, erosion, and disrupt sediment dynamics, threatening aquatic habitats. 
• Revenue Collections: States like Kerala argue the OAMDR Amendment Act, 2023 does not safeguard state interests. 
  • Royalty revenues from mining are assigned entirely to the central government, sidelining state authorities. 
  • Private sector involvement allowed by the 2023 amendments has raised concerns about unchecked exploitation and lack of transparency. 
• Local Community’s Opposition: Fishermen’s and other marine-dependent communities oppose the tendering of mining, citing threats to livelihoods and the ecosystem. 
• Global Resource Competition: The rising demand for metals like cobalt, nickel, driven by renewable energy and electric vehicle industries, intensifies competition leading to exploitation of resources. 
• Climate Change: Disturbing seafloor ecosystems could release stored carbon, accelerating climate change by increasing atmospheric CO2 levels contributing to global warming. 
• Limited Knowledge: Offshore mining in India raises concerns due to the limited understanding of deep-sea ecosystems.  
  • It remains one of the least explored and poorly understood areas, making it challenging to predict the full environmental impact of mining activities. 
  • This uncertainty could lead to unforeseen damage to marine biodiversity and ecosystems, particularly as India begins exploring these resources. 

 Way Forward 

• Environmental Assessments: Mandate independent Environmental Impact Assessments (EIAs) to evaluate the ecological, social, and economic impacts before initiating projects. 
  • Adopt best practices from countries like Norway, where marine resource extraction is preceded by rigorous environmental planning. 
• Sustainable Mining Practices: Limit extraction volumes, designate no-mining zones near critical ecosystems, and align mining with Sustainable Development Goals (SDGs), particularly climate action (SDG 13) and life below water (SDG 14). 
• Equitable Revenue Sharing: Revise royalty frameworks to allocate a fair share of revenue to state governments and local communities. Establish community development funds for affected areas.