Mines ministry notifies new royalty rates for 4 critical minerals

New Delhi, Nov 28, 2025

The Union Cabinet earlier this month approved rate rationalisation for the four minerals to boost domestic production and facilitate their auctions

The mines ministry on Friday notified new rationalised royalty rates for four critical minerals: Caesium, graphite, rubidium and zirconium. Graphite will attract ad-valorem royalty rates, moving from the per tonne royalty in effect since September 2014.

Graphite was the only critical and strategic mineral whose royalty rate was specified on a per tonne basis. The shift to ad valorem royalty is in line with the huge variations seen in graphite prices across grades.

The Union Cabinet earlier this month approved rate rationalisation for the four minerals to boost domestic production and facilitate their auctions. The Cabinet’s decision followed the government’s sixth tranche of critical mineral auctions, announced on September 16, which includes five graphite blocks, two rubidium blocks, and one each of caesium and zirconium.

The rate rationalisation will ensure that royalty accruals in different grades would proportionately reflect the changes in the prices of the mineral. It will unlock better value for the four resources and associated critical minerals, such as lithium, tungsten and niobium.

[The Business Standard]