Govt. Sets Royalty Rates For Lithium, Niobium & Rare Earth Metals Mining

- Advertisement -
- Advertisement -

Under PM Narendra Modi’s leadership, the Union Cabinet approved changes to the Mines and Minerals (Development and Regulation) Act, 1957, setting royalty rates for Lithium, Niobium, and Rare Earth Elements.

The recent Mines and Minerals (Development and Regulation) Amendment Act of 2023, enacted by Parliament and effective August 17, 2023, has introduced notable changes. One significant change includes the removal of six minerals, such as Lithium and Niobium, from the atomic minerals category. This alteration allows the private sector to obtain concessions for these minerals through auctions.

Moreover, the Act stipulates that the Central Government will oversee the auctioning of mining leases and composite licenses for 24 pivotal and strategic minerals, detailed in Part D of the Act’s First Schedule. This list encompasses minerals like Lithium, Niobium, and REEs (excluding Uranium and Thorium).

- Advertisement -

Following the Union Cabinet’s recent decision to define royalty rates, the Central Government is now poised to auction Lithium, Niobium, and REEs blocks for the first time domestically. The auction’s financial aspects for bidders heavily rely on the royalty rates. The Ministry of Mines has also outlined the method for computing the Average Sale Price (ASP) of these minerals, which will aid in setting auction parameters.

As outlined in the MMDR Act’s Second Schedule, different minerals have various royalty rates. In particular, Item No.55 states that minerals without a predefined royalty rate will carry a default rate of 12% of ASP. This rate is significantly high compared to other crucial minerals and doesn’t align with rates in other mineral-rich countries. Hence, the royalty rates for Lithium, Niobium, and REE have been set as:

  1. Lithium: 3% of the London Metal Exchange price.
  2. Niobium: 3% of the Average Sale Price (covering both primary and secondary sources).
  3. REE: 1% of the Average Sale Price of Rare Earth Oxide.

Critical minerals, including Lithium and REEs, are now fundamental to India’s economic growth and national defence, especially in light of the country’s dedication to energy transitions and the goal of achieving net-zero emissions by 2070. Given their applications and current geopolitical context, these minerals have also evolved as strategic elements. Boosting domestic mining will likely decrease imports, stimulate related industry growth, and initiate infrastructure projects, potentially leading to more job opportunities within the mining sector.

Recent reports on REE and Lithium block explorations have been presented by the Geological Survey of India (GSI). The GSI and other exploration entities are also actively investigating other critical minerals in India. The Central Government is gearing up to introduce the initial phase of auctions for these pivotal minerals, which includes elements like Lithium, REE, Nickel, and others, in the near future.

- Advertisement -

Related Artcles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Exclusive

Europe

European Car Market’s Best Post-Pandemic Year, Driven By 2 Million EVs

0
In 2023, Tesla surpassed Nissan and Volvo as battery-electric vehicles (EVs) neared the sales of diesel cars. For the first time in Europe, EV...

Global EV Sales: 69% Annual Increase, 26% Monthly Decrease – Rho Motion

0
In January, sales of fully electric cars and plug-in hybrids reached 1.1 million, an increase from 660,000 in January 2023. In January, global electric vehicle...

India Shifts Towards Expensive Smartphones, Market Stabilised With 2% YoY Decline In 2023

0
The Indian smartphone market is expected to grow by 5% for 2024, driven by 5G adoption and device upgrades. India's smartphone market experienced a slight...

Buzz

AI

Big Techs Collate To Protect Elections From AI Deception

0
The signatories of the tech accord include OpenAI, Microsoft, Adobe, and social media platforms like Meta Platforms, TikTok, and X. On February 16, a coalition...

CERC Issues Tariff Regulations For Renewable Energy Sources

0
The regulations empower CERC to relax provisions under special circumstances and address implementation difficulties. The Central Electricity Regulatory Commission (CERC), using its authority under the...

Tata Group On Partnership Lookout For Dholera Plant, Could Be UMC Or PSMC

0
The plant will start with initial capacity of 25,000 wafers per month, to 700-1,000 semiconductor chips per day at full efficiency. The Tata Group is...

Important Sectors

With Electric Vehicles, The Vehicle Service Industry Will Undergo The Biggest Disruption

0
With electric vehicles (EVs) becoming mainstream in India, how is the vehicle service sector responding? As this sector employs a large fraction of individuals...

CERC Issues Tariff Regulations For Renewable Energy Sources

0
The regulations empower CERC to relax provisions under special circumstances and address implementation difficulties. The Central Electricity Regulatory Commission (CERC), using its authority under the...

Tata Group On Partnership Lookout For Dholera Plant, Could Be UMC Or PSMC

0
The plant will start with initial capacity of 25,000 wafers per month, to 700-1,000 semiconductor chips per day at full efficiency. The Tata Group is...

Indian Govt Announces Two Multi-Billion Dollar Semiconductor Plants

0
India aims to further its success in electronics manufacturing, targeting $300 billion by 2026-27 The government has received four proposals for semiconductor manufacturing...

Applied Ventures Invests In VVDN Technologies To Boost Semiconductor Ecosystem

0
The investment underscores Applied Ventures' dedication to nurturing innovation, collaboration, and entrepreneurship within the semiconductor and electronics manufacturing landscapes. Applied Ventures, LLC has announced a...

Manufacturing

BorgWarner Produces E-Motor Parts For Chinese Automaker

0
In January 2024, production started for use in XPeng's X9 MPV; stator winding technology provides exceptional power density and efficiency, while oil cooling enhances...

Volkswagen Group And M&M Ink Supply Deal For MEB Components

0
The agreement includes the provision of specific electric components and unified cells. Volkswagen Group and Mahindra & Mahindra (M&M) have finalized the first supply agreement...

ZF Launches TN plant, Eyes EV Growth And Exports; Plans INR 1800 Cr Investment

0
The Oragadam facility marks ZF's 19th in India and 10th in TN, with 80% of its workforce expected to be women. In the first...

StoreDot’s Fast-Charging Cells Hit 100 Miles In 4 Minutes

0
StoreDot achieved its '100in4' goal ahead of schedule in early prototype tests through a series of cell improvements, enabling extremely fast charging with existing...

CG Power, Renesas, And Stars Microelectronics To Establish Chip Plant In India

0
The Murugappa Group, a new player in the Indian electric vehicle (EV) market and based in Chennai, stands to gain from the internal provision...