Lok Sabha Question No. 618 (UNSTARRED), answered on 2025-12-03
Subject: Rationalisation of Royalty Rates of Critical Minerals
Ministry: MINES
Asked by: Prof. Sougata Ray

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 618

ANSWERED ON 03.12.2025

## RATIONALISATION OF ROYALTY RATES OF CRITICAL MINERALS

618. PROF. SOUGATA RAY:

Will the Minister of MINES be pleased to state:

- (a) whether the Government has taken any steps to rationalise the royalty rates of

critical minerals to reduce import dependence; (b) if so, the details of new royalty rates of various critical minerals; (c) the details of ratio of royalties among the Union and States of such minerals; (d) whether the new rationalised rates will help to promote the auction of mineral blocks of critical minerals like caesium, rubidium and zirconium; and

- (e) if so, the details thereof?

## ANSWER

## THE MINISTER OF COAL AND MINES (SHRI G. KISHAN REDDY)

(a) & (b): Yes, Sir. The Central Government has rationalized rates of royalty of critical minerals.  Details  of  royalty  rates  of  critical  minerals  rationalized  since  2022 are  at Annexure .

(c):  The  entire  royalty  from  mining  activities  accrues  to  the  respective  State Government.

(d) & (e): Yes, Sir. The rationalization of royalty rates of critical minerals will promote their auction. Till date, the Central Government has successfully auctioned 34 mineral blocks of critical and strategic minerals. Further, the Central Government has launched the  sixth  tranche  of  auction  of  critical  and  strategic  minerals  on  16.09.2025  for  23 mineral blocks including blocks of minerals Rubidium and Zirconium.

- *****

Annexure

## Referred in reply to part (a) & (b) of Lok Sabha Unstarred Question No. 618

| Sl. No.   | Minerals                             | Rates of Royalty                                                                                                                                                                                                                                            |
|-----------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.        | Beryllium                            | Two per cent. of the average sale price of Beryllium metal chargeable on the Beryllium metal contained in the ore produced.                                                                                                                                 |
| 2.        | Cadmium: (i) Primary (ii) By-product | Four per cent. of the average sale price of Cadmium metal chargeable on the Cadmium metal contained in the ore produced. Two per cent. of the average sale price of Cadmium metal chargeable on the by-product Cadmium metal contained in the ore produced. |
| 3.        | Cobalt:                              |                                                                                                                                                                                                                                                             |
|           | (i) Primary                          | Four per cent. of the average sale price of Cobalt metal chargeable on the Cobalt metal contained in the ore produced.                                                                                                                                      |
|           | (ii) By-product                      | Two per cent. of the average sale price of Cobalt metal chargeable on the by-product Cobalt metal contained in the ore produced.                                                                                                                            |
| 4.        | Gallium:                             |                                                                                                                                                                                                                                                             |
|           | (i) Primary                          | Four per cent. of the average sale price of Gallium metal chargeable on the Gallium metal contained in the ore produced.                                                                                                                                    |
| 5.        | Indium                               | Two per cent. of the average sale price of Indium metal chargeable on the Indium metal contained in the ore produced.                                                                                                                                       |
| 6.        | Rhenium                              | Two per cent. of the average sale price of Rhenium metal chargeable on the Rhenium metal contained in the ore produced.                                                                                                                                     |
| 7.        | Selenium:                            |                                                                                                                                                                                                                                                             |
|           | (i) Primary                          | Four per cent. of the average sale price of Selenium metal chargeable on the Selenium metal contained in the ore produced.                                                                                                                                  |
|           | (ii) By-product                      | Two per cent. of the average sale price of Selenium metal chargeable on the by-product Selenium metal contained in the ore produced.                                                                                                                        |

| 8.   | Tantalum (produced from ores other than Columbite-tantalite):                                                                                           |                                                                                                                                      |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
|      | (i) Primary                                                                                                                                             | Four per cent. of the average sale price of Tantalum metal chargeable on the Tantalum metal contained in the ore produced.           |
|      | (ii) By-product                                                                                                                                         | Two per cent. of the average sale price of Tantalum metal chargeable on the by-product Tantalum metal contained in the ore produced. |
| 9.   | Tellurium                                                                                                                                               | Two per cent. of the average sale price of Tellurium metal chargeable on the Tellurium metal contained in the ore produced.          |
| 10.  | Titanium (produced from ores other than Brown Ilmenite (Leucoxene), Ilmenite and Rutile occurring in Beach Sand Minerals found in teri or beach sands): |                                                                                                                                      |
|      | (i) Primary                                                                                                                                             | Four per cent. of the average sale price of Titanium metal chargeable on the Titanium metal contained in the ore produced.           |
|      | (ii) By-product                                                                                                                                         | Two per cent. of the average sale price of Titanium metal chargeable on the by-product Titanium metal contained in the ore produced. |
| 11.  | Tungsten:                                                                                                                                               | Three per cent. of the average sale price of Tungsten Trioxide (WO 3 ) on contained WO3 per tonne of ore on pro rata basis.          |
| 12.  | Vanadium:                                                                                                                                               |                                                                                                                                      |
|      | (i) Primary                                                                                                                                             | Four per cent. of the average sale price of Vanadium Pentoxide on contained V 2 O 5 per tonne of ore on pro rata basis.              |
|      | (ii) By-product                                                                                                                                         | Two per cent. of the average sale price of Vanadium Pentoxide on contained V 2 O 5 per tonne of ore on pro rata basis.               |
| 13.  | Lithium:                                                                                                                                                | Three per cent. of London Metal Exchange price chargeable on the Lithium metal in the ore produced.                                  |
| 14.  | Niobium:                                                                                                                                                |                                                                                                                                      |
|      | (i) Primary (produced from ores other than Columbite- tantalite) Three metal in                                                                         | per cent. of average sale price of Niobium chargeable on the Niobium metal contained the ore produced.                               |

|    | (ii) By-product (produced from ores other than Columbite-tantalite)                                        | Three per cent. of average sale price of Niobium metal chargeable on the by-product Niobium metal contained in the ore produced.                                                                                                                                                                                                                               |
|----|------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 15 | Rare Earth Elements (produced from ores other than Monazite occurring in beach sand minerals):             | One per cent. of average sale price of Rare Earth Oxide (REO) chargeable on the Rare Earth Oxide contained in the ore produced.                                                                                                                                                                                                                                |
| 16 | Glauconite and Potash                                                                                      | Two point five per cent. of price for Muriate of Potash published by the Government of India, Ministry of Chemicals and Fertilizers, Department of Fertilizers chargeable on the contained K2O in ore produced for those dispatched for making such Muriate of Potash.                                                                                         |
| 17 | Molybdenum                                                                                                 | Seven point five per cent. of London Metal Exchange Molybdenum metal price chargeable on the contained Molybdenum metal in ore produced.                                                                                                                                                                                                                       |
| 18 | Platinum Group of Metals: (i) Platinum and Palladium; (ii) Rhodium, Iridium and Ruthenium;                 | Four per cent. of London Bullion Market Association price chargeable on the Platinum and Palladium metals in ore produced; Four per cent. of Johnson Matthey Precious Metals Management price chargeable on the Rhodium, Iridium and Ruthenium metals in ore produced Four per cent. of Osmium-Preis.com price chargeable on the Osmium metal in ore produced. |
| 19 | Graphite: (i) With eighty per cent. or more fixed carbon (ii) With less than eighty per cent. Fixed carbon | Two per cent. of average sale price on ad valorem basis. Four per cent. of average sale price on ad valorem basis.                                                                                                                                                                                                                                             |
| 20 | Zirconium                                                                                                  | One per cent. of the average sale price of Zirconium metal chargeable on the Zirconium metal contained in the ore produced.                                                                                                                                                                                                                                    |