The Union Cabinet on October 11, 2023, approved the royalty rates for mining of three critical and strategic minerals- Lithium, Niobium, and Rare Earth Elements (REEs).
The following has been stated: -
•The Cabinet approved the amendment of the Second Schedule of the Mines and Minerals (Development and Regulation) Act, 1957 (‘MMDR Act’) for specifying the rate of royalty in respect of 3 critical and strategic minerals, namely, Lithium, Niobium and Rare Earth Elements (REEs).
•Approval of the Union Cabinet of specification of the rate of royalty will enable the Central Government to auction blocks for Lithium, niobium, and REEs for the first time in the country. The royalty rate on minerals is an important financial consideration for the bidders in the auction of blocks. Further, the manner for calculation of the Average Sale Price (ASP) of these minerals has also been prepared by the Ministry of Mines which will enable the determination of bid parameters.
•It is decided to specify a reasonable royalty rate for Lithium, Niobium, and REE as below:(i) Lithium – 3% of London Metal Exchange price, (ii) Niobium –3% of Average Sale Price (both for primary and secondary sources), (iii) REE- 1% of Average Sale Price of Rare Earth Oxide
• The Geological Survey of India (GSI) has recently handed over the exploration report of REE and Lithium blocks. Further, GSI and other exploration agencies are conducting exploration for critical and strategic minerals in the country. The Central Government is working to launch the first tranche of the auction of critical and strategic minerals such as Lithium, REE, Nickel, Platinum Group of Elements, Potash, Glauconite, Phosphorite, Graphite, Molybdenum, etc. shortly.
The detailed notification is attached in the document given below.
[Release ID: 1966595]
