NEW DELHI: The government on Wednesday sanctioned royalty rates for three pivotal and strategic minerals -- lithium, niobium, and rare earth elements (REEs).
The Cabinet approval of specification of rate for royalty will enable the government to auction blocks for lithium, niobium and REEs for the first time for the private sectors.
The royalty rates on these minerals are --- lithium at 3% of the London Metal Exchange price, niobium at 3% of the average sale price, both for primary and secondary sources, and for REE the rate will be 1% of the average sale price of rare earth oxide.
“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,” reads the government statement.
Recently, the Mines and Minerals (Development and Regulation) Amendment act, 2023, was passed. 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 the private sector through auction.