Proposed Changes in Royalty Rates for Minerals
The Mines Ministry of India has proposed modifications in the royalty rates for various minerals and introduced measures to enhance the beneficiation of low-grade iron ore. These changes are part of the proposed amendments to the second schedule of the Mines and Minerals (Development and Regulation) Act, 1957.
Key Proposals
- Graphite:
- For graphite ore with 80% or more fixed carbon, a royalty rate of 4% of the average sale price (ASP) on an ad valorem basis is proposed. This is aimed at attracting investments.
- For graphite ore with less than 80% fixed carbon, a higher royalty rate of 12% of ASP on an ad valorem basis is proposed.
- Limestone, Limekankar, Limeshell, Marl, Dolomite:
- A 50% increase in royalty rate is proposed for production from non-auctioned mines.
- No change in royalty rate for auctioned mines.
- Rubidium:
- A royalty rate of 2% of the ASP is proposed.
- Though rubidium has not been mined in India yet, discoveries have been established.
- Iron Ore:
- High-grade iron ore constitutes only 23.4% of total reserves, while 66.5% is medium and low-grade, which necessitates processing before utilization.
- To encourage beneficiation of lower grades, a new slab of 10% royalty rate is introduced for iron ore with less than 58% Fe content.
- For higher grade iron ore, the royalty continues at 15%.
