In a move that will pave the way for auctioning of minor minerals such as glauconite, potash, emerald, platinum group of metals (PGM), andalusite, sillimanite and molybdenum for the first time in the country, the Union Cabinet on Wednesday approved the mines ministry’s proposals specifying the rates of royalty.
Royalty is charged on a per tonne basis, or as a percentage of sale price on an ad valorem basis. It is collected from miners and appropriated by the respective state governments. A miner’s contribution to the district mineral foundation (DMF) and other statutory contributions are also calculated as a percentage of the royalty.
In the absence of specified royalty rates, auctioning of these minerals have not taken place so far even as the mandatory auction regime for allocation of non-coal, non-fuel mineral blocks commenced in 2015.
“The approval would ensure auction of mineral blocks in respect of glauconite, potash, emerald, PGM, andalusite and molybdenum, thereby reducing import of these minerals, generating empowerment opportunity in the mining sector as well as manufacturing sector, which will help in ensuring inclusive growth of a large section of the society,” an official release issued after the meeting of the Cabinet said.
“The approval would ensure auction of mineral blocks in respect of these minerals for the first time in the country,” it said.
Minerals like glauconite and potash are used as fertiliser in agriculture. PGMs are high-value metals used in various industries and new innovative applications. Andalusite and molybdenum are vital minerals used in industrial applications.
Since the onset of the auction regime, more than 145 mineral blocks have been successfully auctioned in the country. With further impetus given by the reforms made in the year 2021, more than 146 blocks have been put up for auction in the financial year 2021-22.
Of this, 34 blocks have been successfully auctioned in the financial year.