New Delhi, Oct 11: The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved royalty rates for mining of three critical and strategic minerals – Lithium, Niobium and Rare Earth Elements (REEs).
The specification of rate of royalty will enable the central government to auction blocks for Lithium, Niobium and REEs for the first time in the country.
For Lithium, the royalty rate has been fixed at 3% of the London Metal Exchange (LME) price while in case of Niobium it is 3% of average sale price. For REEs, the royalty rate has been set at 1% of the average sale price of rare earth oxide.
Royalty rate on minerals is an important financial consideration for the bidders in auction of blocks.
Recently, the Mines and Minerals (Development and Regulation) Amendment act, 2023 was passed by the Parliament. The Amendment, among other things, delisted six minerals, including Lithium and Niobium, from the list of atomic minerals, thereby allowing grant of concessions for these minerals to private sector through auction.
Further, the amendment provided that mining lease and composite license of 24 critical and strategic minerals including Lithium, Niobium and REEs (not containing Uranium and Thorium), shall be auctioned by the central government.
“Critical minerals have become essential for economic development and national security in the country. Critical minerals such as Lithium and REEs have gained significance in view of India’s commitment towards energy transition and achieving net-zero emission by 2070,” an official statement said.
Lithium, Niobium and REEs have also emerged as strategic elements due their usages and geo-political scenario.
“Encouraging indigenous mining would lead to reduction in imports and setting up of related industries and infrastructure projects. The proposal is also expected to increase generation of employment in the mining sector,” said the official statement.
Meanwhile, the Cabinet also approved Memorandum of Understanding (MoU) between India and Trinidad and Tobago on cooperation in the field of sharing successful Digital Solutions implemented at Population Scale for Digital Transformation. It also gave its nod to MoU between India and France on cooperation in the field of Digital Technologies.
