Cabinet revises royalty for four critical minerals to boost mining

NEW DELHI: The cabinet Wednesday approved higher royalty rates for four critical minerals - graphite, zirconium, caesium and rubidium - in a move aimed at boosting their mining and domestic production.

"The decision of the cabinet will promote auction of mineral blocks containing caesium, rubidium and zirconium, thereby not only unlocking these minerals but also associated critical minerals found with them such as lithium, tungsten, REEs and niobium," an official statement said after the cabinet meeting.

Amid a global rush for critical minerals, govt is seeking to strengthen energy and supply chain security by enhancing local output. In Sept, it floated a tender for auctioning critical mineral blocks, including graphite (five blocks), rubidium (two) and one each of caesium and zirconium.

"Royalty rate of graphite had been specified on a rupees-per-tonne basis since Sept 1, 2014. It was the only mineral in the list of critical and strategic minerals with such a rate," the statement said. I&B minister Ashwini Vaishnaw said that royalty will now be ad valorem.

Graphite with over 80% carbon will attract a 2% royalty on average selling price, while other grades will draw 4%. For zirconium, royalty has been fixed at 1% of ASP and 2% each for rubidium and caesium.

Graphite, a key EV battery component , is 60% imported. India currently has nine active mines, with 27 blocks auctioned and 20 more ready for bidding.