1. Home
  2. Current Affairs
  3. Current News
  4. Rationalisation of Royalty Rates for Key Critical Minerals

Rationalisation of Royalty Rates for Key Critical Minerals

  • 13 Nov 2025

On 12th November 2025, the Union Cabinet chaired by Prime Minister Narendra Modi approved the rationalisation of royalty rates for Graphite, Caesium, Rubidium, and Zirconium — minerals crucial for high-tech applications and India’s green energy transition.

Key Points

  • Revised Royalty Structure:
    • Caesium & Rubidium: 2% of the Average Sale Price (ASP) of metal contained in the ore.
    • Zirconium: 1% of ASP.
    • Graphite: Ad valorem royalty — 2% for grades with 80% or more fixed carbon, 4% for grades with less than 80% fixed carbon.
  • Boost to Mineral Auctions: The new rates will facilitate auctions of mineral blocks containing these elements, unlocking their economic value along with associated critical minerals such as Lithium, Tungsten, Rare Earth Elements (REEs), and Niobium.
  • Strengthening Domestic Production: The decision is expected to enhance domestic output, reduce import dependence, and generate employment opportunities in the mineral sector.
  • Graphite & Zirconium as Critical Minerals: Both minerals are listed among the 24 critical and strategic minerals under the MMDR Act, 1957.
  • Operational and Upcoming Mines: India currently has nine operational Graphite mines, while 27 blocks have been auctioned and 20 additional blocks handed over by GSI and MECL for future auctions.