{"id":350002,"date":"2025-11-15T10:44:02","date_gmt":"2025-11-15T05:14:02","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=350002"},"modified":"2025-11-15T10:44:02","modified_gmt":"2025-11-15T05:14:02","slug":"new-royalty-rates-of-critical-minerals","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/new-royalty-rates-of-critical-minerals\/","title":{"rendered":"New Royalty Rates of Critical Minerals"},"content":{"rendered":"<p><strong>News<\/strong>&#8211; The Union Cabinet has approved the revision of royalty rates for four critical minerals- caesium, graphite, rubidium, and zirconium\u2014to encourage domestic production.<\/p>\n<table style=\"height: 379px; width: 98.549%; border-collapse: collapse; border-style: solid; background-color: #f7f2f2;\">\n<tbody>\n<tr>\n<td style=\"width: 100%;\"><strong>About Royalty Rate<\/strong><\/p>\n<ul>\n<li>A royalty rate is a fee imposed by the government on mining companies for extracting minerals from the earth. It ensures that the state receives an equitable return for exploiting its natural resources.<\/li>\n<li><strong>Legal Framework<\/strong>:\n<ul>\n<li>Governed by the<strong> Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act)<\/strong> and the Mineral Concession Rules, 1960.<\/li>\n<li>Central Government has the authority to fix and revise royalty rates, after consulting state governments.<\/li>\n<li>The <strong>Second Schedule of the MMDR Act<\/strong> lists royalty rates for each mineral.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Collection<\/strong>: Royalty is remitted by leaseholders or mining companies to the state government in accordance with central legislation. The rates are periodically revised to reflect market fluctuations and strategic priorities<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Key Features of the decision<\/strong><\/p>\n<ul>\n<li><strong>Graphite<\/strong>:\n<ul>\n<li><strong>Royalty<\/strong>: Graphite with 80% or higher carbon will have a royalty of 2% of <strong>average sale price (ASP)<\/strong>, while graphite with less than 80% carbon will attract 4% of ASP.<\/li>\n<li><strong>Note<\/strong>: Previously, royalty was charged per tonne, but it will now follow an<strong> ad valorem (price-linked) system<\/strong> to reflect market value.<\/li>\n<li><strong>Applications<\/strong>: Used as a key component in electric vehicle (EV) batteries, lubricants, and refractories.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Caesium<\/strong>:\n<ul>\n<li><strong>Royalty<\/strong>: 2% of ASP, calculated based on the metal content in the ore.<\/li>\n<li><strong>Applications<\/strong>: Critical for high-tech electronics, atomic clocks, GPS systems, and medical instruments.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Rubidium<\/strong>:\n<ul>\n<li><strong>Royalty<\/strong>: 2% of ASP, based on the metal content in the ore.<\/li>\n<li><strong>Applications<\/strong>: Used in specialty glasses, fibre optics, telecommunication systems, and night vision devices.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Zirconium<\/strong>:\n<ul>\n<li><strong>Royalty<\/strong>: 1% of ASP, calculated on the metal content in the ore.<\/li>\n<li><strong>Applications<\/strong>: Widely used in nuclear energy, aerospace, healthcare, and manufacturing.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News&#8211; The Union Cabinet has approved the revision of royalty rates for four critical minerals- caesium, graphite, rubidium, and zirconium\u2014to encourage domestic production. About Royalty Rate A royalty rate is a fee imposed by the government on mining companies for extracting minerals from the earth. It ensures that the state receives an equitable return for&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/new-royalty-rates-of-critical-minerals\/\">Continue reading <span class=\"screen-reader-text\">New Royalty Rates of Critical Minerals<\/span><\/a><\/p>\n","protected":false},"author":10367,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,12039],"tags":[11872],"class_list":["post-350002","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/350002","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10367"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=350002"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/350002\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=350002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=350002"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=350002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}