Boost to Critical Mineral Production: India's Strategic Move on Royalty Rates

In a move to enhance domestic mineral availability, the Indian Union Cabinet approved revised royalty rates for critical minerals including Caesium, Graphite, Rubidium, and Zirconium. This decision aims to increase indigenous production, reduce import reliance, and attract new investments, thereby securing supply chains and boosting employment opportunities.

In a decisive step to bolster local production of critical minerals, the Union Cabinet of India has approved the revision of royalty rates for Caesium, Graphite, Rubidium, and Zirconium. Information and Broadcasting Minister Ashwini Vaishnaw highlighted that this decision is pivotal for boosting high-tech mineral output, reducing dependence on imports, and enhancing energy security.

The new rates, set at two percent for most minerals, and one percent for Zirconium, are designed to support the auctioning of mineral blocks. The move is anticipated to unlock not only these specific minerals but also allied critical ones such as Lithium and Tungsten. Notably, Graphite, a vital component in electric vehicle batteries, is set to transition from a per-tonne royalty rate to an ad valorem basis.

With substantial reliance on imported Graphite, the expansion of domestic mining and auctioning of additional blocks is expected to mitigate supply disruptions and foster job creation. Moreover, these minerals, essential for industries ranging from nuclear energy to electronics, mark a strategic push to enhance India's industrial and technological capabilities. The government's announcement also includes plans to auction further Graphite, Rubidium, Caesium, and Zirconium blocks, reinforcing efforts to invigorate the mineral sector.

(With inputs from agencies.)