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News– The Union Cabinet has approved the revision of royalty rates for four critical minerals- caesium, graphite, rubidium, and zirconium—to encourage domestic production.
About Royalty Rate
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Key Features of the decision
- Graphite:
- Royalty: Graphite with 80% or higher carbon will have a royalty of 2% of average sale price (ASP), while graphite with less than 80% carbon will attract 4% of ASP.
- Note: Previously, royalty was charged per tonne, but it will now follow an ad valorem (price-linked) system to reflect market value.
- Applications: Used as a key component in electric vehicle (EV) batteries, lubricants, and refractories.
- Caesium:
- Royalty: 2% of ASP, calculated based on the metal content in the ore.
- Applications: Critical for high-tech electronics, atomic clocks, GPS systems, and medical instruments.
- Rubidium:
- Royalty: 2% of ASP, based on the metal content in the ore.
- Applications: Used in specialty glasses, fibre optics, telecommunication systems, and night vision devices.
- Zirconium:
- Royalty: 1% of ASP, calculated on the metal content in the ore.
- Applications: Widely used in nuclear energy, aerospace, healthcare, and manufacturing.
