New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the rationalisation of royalty rates for four critical minerals — graphite, caesium, rubidium, and zirconium.
The royalty rates have been specified or revised as follows: caesium and rubidium will each attract a 2 per cent royalty based on the average sale price (ASP) of the respective metal contained in the ore produced.
Zirconium will have a royalty rate of 1 per cent of ASP, while graphite will be charged 2 per cent of ASP on an ad valorem basis for ore with 80 per cent or more fixed carbon and 4 per cent for ore with less than 80 per cent fixed carbon, according to the Cabinet.
“The decision of the Union Cabinet will promote auction of mineral blocks containing caesium, rubidium and zirconium, thereby not only unlocking these minerals but also associated critical minerals found with them, such as lithium, tungsten, REES, niobium etc,” an official statement said.
Fixing of royalty rates of graphite on an ad valorem basis will proportionately reflect the change in prices of the mineral across grades.
An increase in indigenous production of these minerals would lead to a reduction in imports and supply chain vulnerabilities, and also generate employment opportunities in the country.
Graphite, caesium, rubidium, and zirconium are important minerals for high-tech applications and energy transition.
Graphite and Zirconium are also among the 24 critical and strategic minerals listed in the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).
According to the Cabinet, graphite is a crucial component in electric vehicle (EV) batteries, primarily serving as the anode material, which enables high conductivity and charge capacity.
However, India imports 60 per cent of its requirement of graphite.
At present, 9 graphite mines are working in the country, and a further 27 blocks have been successfully auctioned. Further, GSI and MECL have handed over 20 graphite blocks, which will be auctioned and around 26 blocks are under exploration.
Zirconium is a versatile metal used in various industries, including nuclear energy, aerospace, healthcare and manufacturing, due to exceptional corrosion resistance and high temperature stability.
Caesium is mainly used in the high-tech electronic sector, particularly in atomic clocks, GPS systems, other high precision instruments, medical instruments, including in cancer therapy, etc.
Rubidium is used in making specialty glasses used in fibre optics, telecommunication systems, night vision devices, etc.
(IANS)
