The Union Cabinet chaired by Prime Minister Modi approved an amendment of the Mines and Minerals Act for specifying the rate of royalty in respect of 12 critical and strategic minerals.

The twelve commodities in question are beryllium, cadmium, cobalt, gallium, indium, rhenium, selenium, tantalum, tellurium, titanium, tungsten, and vanadium. The amendment completes the exercise of the rationalisation of royalty rates for 24 critical and strategic minerals as defined by India in 2019 (although India published a list of 30 materials in July 2023). 

Beryllium, indium, rhenium, and tellurium will see a rate of 2% of the average sale price of relevant metal chargeable on the relevant metal contained in the ore produced.

Cadmium, cobalt, gallium, selenium, tantalum and titanium will see a rate of 4% of the average sale price of relevant metal chargeable on the relevant metal contained in the ore produced or 2% in the case of by-product materials.

Tungsten will see a rate of 3% of the average sale price of tungsten trioxide (WO3) on a contained WO3 per tonne of ore on a pro-rata basis.

Finally, vanadium will see a rate of 4% of the average sale price of vanadium pentoxide on a contained V2O5 per tonne of ore on a pro-rata basis, and on a 2% basis for by-production (it is assumed that this refers to vanadium co-production from steel slag).  

The approval of the Union Cabinet for the specification of the rate of royalty will enable the Central Government to auction blocks for these 12 minerals for the first time in the country.