The Union Cabinet on February 29, 2024, approved royalty rates for the mining of 12 critical and strategic minerals.
The following has been stated: -
•The amendment of Second Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 ('MMDR Act') for specifying the rate of royalty in respect of 12 critical and strategic minerals, viz., Beryllium, Cadmium, Cobalt, Gallium, Indium, Rhenium, Selenium, Tantalum, Tellurium, Titanium, Tungsten and Vanadium has been approved.
•This approval by the Union Cabinet for the specification of the rate of royalty will enable the Central Government to auction blocks for these 12 minerals for the first time in the country.
•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.
•Critical minerals have become essential for economic development and national security in the country. Critical minerals such as Cadmium, Cobalt, Gallium, Indium, Sellenium, and Vanadium have been used in batteries, semiconductors, solar panels, etc.
• The Geological Survey of India (GSI) and Mineral Exploration & Consultancy Ltd. (MECL) have recently handed over the exploration report of 13 blocks containing one or more critical minerals like Cobalt, Titanium, Gallium, Vanadium, and Tungsten. Further, these agencies are conducting exploration for these critical and strategic minerals in the country.
The detailed notification is given in the document attached below.
[Release ID: 2010126]
