Cabinet approves royalty rates for 12 critical minerals

The Cabinet has approved on Thursday the rates of royalty for 12 critical and strategic minerals — Beryllium, Cadmium, Cobalt, Gallium, Indium, Rhenium, Selenium, Tantalum, Tellurium, Titanium, Tungsten and Vanadium. “The Union Cabinet chaired by Prime Minister Shri Narendra Modi approved the amendment of Second Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 ('MMDR Act') for specifying rate of royalty in respect of 12 critical and strategic minerals…,” said an official statement.

This completes the exercise of the rationalisation of royalty rates for all 24 critical and strategic minerals. Earlier, the government had notified the royalty rate of four critical minerals — Glauconite, Potash, Molybdenum and Platinum Group of Minerals — on March 15, 2022 and of three critical minerals — Lithium, Niobium and Rare Earth Elements — on October 12, 2023.

Recently, the Mines and Minerals (Development and Regulation) Amendment Act, 2023, which has come into force on August 17, 2023, had listed 24 critical and strategic minerals in Part D of the First Schedule of the MMDR Act. The amendment provided that mining lease and composite licence of these 24 minerals shall be auctioned by the Central government.

“Today’s approval of the Union Cabinet for specification of rate of royalty will enable the Central 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 the auction of blocks. Further, the manner for calculation of average sale price (ASP) of these minerals has also been prepared by the Ministry of Mines which will enable determination of bid parameters,” said the statement.