Union Cabinet Approves Revision of Royalty Rates for Critical Minerals

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the proposal to specify and revise the royalty rates for Caesium, Graphite, Rubidium, and Zirconium, aiming to promote their exploration, auction, and sustainable utilisation.

Objective of the Decision

• The revision will facilitate the auction of mineral blocks containing Caesium, Rubidium, and Zirconium, enabling their commercial exploitation.
• It will also help unlock associated critical minerals such as Lithium, Tungsten, Rare Earth Elements (REEs), and Niobium, contributing to India’s strategic mineral security.

Importance of the Minerals

Graphite

• A key component in electric vehicle (EV) batteries, serving as the anode material that provides high conductivity and charge capacity.
• India currently imports about 60% of its Graphite requirement.
• There are 9 operational Graphite mines in the country, and 27 additional blocks have been successfully auctioned.
• Graphite is one of the 24 critical and strategic minerals listed under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).

Zirconium

• A versatile metal known for corrosion resistance and high-temperature stability.
• Extensively used in nuclear energy, aerospace, healthcare, and manufacturing industries.
• Also listed among the 24 critical and strategic minerals under the MMDR Act.

Caesium

• A rare and valuable mineral primarily used in high-precision electronic applications, including:
  • Atomic clocks, GPS systems, and advanced medical instruments.
  • Plays an important role in cancer therapy and other scientific uses.

Rubidium

• Used in specialty glass manufacturing, particularly for fibre optics, telecommunication systems, and night vision devices.

Significance of Royalty Revision

• Encourages private sector participation through transparent mineral block auctions.
• Boosts India’s efforts to reduce import dependency and enhance domestic production of critical minerals.
• Aligns with the government’s focus on energy transition, high-tech manufacturing, and Atmanirbhar Bharat (self-reliant India).

🔹 Background

• The royalty rate for Graphite has been specified on a per-tonne basis since 1 September 2014, making it the only mineral among the critical list with such a structure.
• The latest revision brings uniformity and clarity to the royalty framework for critical and strategic minerals under the MMDR Act, 1957.

Source: PIB