India Boosts Mineral Security with Revised Royalty Rates

The Union Cabinet approved new royalty rates for critical minerals including Caesium, Graphite, Rubidium, and Zirconium. This move aims to enhance domestic mineral production, reduce imports, secure supply chains, and attract new investments. Key minerals like Graphite and Zirconium are vital for high-tech and energy applications.

The Indian government's recent decision to revise royalty rates on essential minerals is set to invigorate the country's mineral landscape. By approving a proposal to adjust the royalties for Caesium, Graphite, Rubidium, and Zirconium, the Union Cabinet aims to amplify indigenous production, curtail import dependency, and boost supply chain reliability. This initiative is also expected to attract fresh investments into the mineral sector.

Speaking to reporters, Information and Broadcasting Minister Ashwini Vaishnaw highlighted the decision's potential to facilitate the auction of mineral blocks rich in Caesium, Rubidium, and Zirconium. This could unlock other critical minerals such as Lithium and Tungsten. The revamped royalty structure includes a two percent rate of the average sale price (ASP) for Caesium and Rubidium, and a variable rate for Graphite depending on its carbon content, while Zirconium will have a one percent ASP.

The Indian mineral industry is on the cusp of transformation, with efforts to auction Graphite, Caesium, Rubidium, and Zirconium blocks, alongside amendments to existing legislation. The updated royalty framework aligns royalties with the fluctuating market prices, reflecting the government's commitment to bolstering local production. With Graphite being a crucial element in EV batteries and Zirconium being pivotal to industries such as nuclear energy, this strategic move is poised to address both economic and infrastructural growth needs.

(With inputs from agencies.)