Govt sets royalty rates for 12 critical minerals

The move is expected to boost indigenous mining, reduce import dependence, and catalyze the establishment of related industrial and infrastructure projects, the government said.

With the amendment, royalty rates for all 24 critical and strategic minerals have now been rationalised.

The Union cabinet on Thursday gave its nod for the amendment of the Second Schedule to the Mines and Minerals (Development and Regulation) Act, 1957, to specify the royalty rates for 12 critical and strategic minerals.

The 12 minerals include Beryllium, Cadmium, Cobalt, Gallium, and various others that make use in sectors like defense, electronics, and renewable energy.With the amendment, royalty rates for all 24 critical and strategic minerals have now been rationalised.

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The government had earlier notified royalty rates for Glauconite, Potash, Molybdenum and Platinum in 2022 and then for Lithium, Niobium, and Rare Earth Elements in October 2023.The approval will further enable the government to auction blocks for these 12 minerals for the first time in the country.

Royalty rate on minerals is an important financial consideration for the bidders in auction of blocks. The royalty rates have been determined based on the Average Sale Price (ASP) of the minerals, with specific rates ranging from 2% to 4% for primary minerals and their by-products.The move is expected to boost indigenous mining, reduce import dependence, and catalyze the establishment of related industrial and infrastructure projects, the government said.

This article was first uploaded on March one, twenty twenty-four, at fifteen minutes past two in the night.