Home » News » Mines & Minerals » Raising of Mineral Royalty Rates

Raising of Mineral Royalty Rates

In exercise of the powers conferred under sub-section (3) of Section 9 of the Mines and Minerals (Development and Regulation) Act, 1957, the Central Government notified the rates of royalty vide Gazette Notification dated 01.09.2014 and royalty rates prior to 2014 were notified vide Gazette Notification dated 13.08.2009. The current rates of royalty on iron ore, chromite, manganese ore, bauxite & limestone and the rates prior to the revision in 2014 are given at Annexure.

In order to evaluate the revision of royalty rates and dead rent for minerals (other than coal, lignite, sand for stowing and minor minerals), the Ministry of Mines vide order dated 09.02.2018 has constituted a Study Group. The Study Group submitted its final recommendation. Meanwhile, it has been decided to constitute a committee to formulate an index based mechanism for valuation of mineral resources and also for pricing for all statutory payments to the Government.

Accordingly, Ministry of Mines vide Order dated 06.04.2021 has constituted a Committee for developing a National Mineral Index (NMI) for valuation of mineral resources, determination of value for auction of mineral concessions and statutory payments for future auctions. Also, Ministry of Mines vide Order dated 27.10.2021 has constituted another committee for reviewing of rates of royalty of those minerals where royalty is calculated on tonnage basis.


Current rates of Royalty of minerals and rates prior to Revision in 2014 

S.No Mineral Rate of Royalty prior to Revision in 2014 Current Rate of Royalty (since 01.09.2014)
1. Iron Ore Ten per cent of sale price on ad

valorem basis.

Fifteen per cent. of average sale price

on ad valorem basis.

2. Chromite Ten per cent of sale price on ad

valorem basis.

Fifteen per cent. of average sale price

on ad valorem basis

3. Manganese Ore (i) Ore of all grades: Four point two per cent of sale price on ad valorem basis. (i) Ore of all grade : five per cent. of average sale price on ad valorem basis.
(ii) Concentrates: One point four per cent of sale price on ad valorem basis. (ii) Concentrates : One point seven per cent. of average sale price on ad valorem basis.
4. Bauxite (a) Zero point five zero per cent of London Metal Exchange Aluminium metal price chargeable on the contained aluminium metal in ore produced for those dispatched for use in alumina and aluminium metal extraction. (a) Metallurgical Grade: Zero point six zero per cent. of London Metal Exchange Aluminium metal price chargeable on the contained aluminium metal in ore produced for those dispatched for use in alumina and aluminium metal extraction.
(b) Twenty five per cent of sale price on ad valorem basis for those despatched for use other than alumina & aluminium metal extraction and for export. (b) Non Metallurgical Grade: Twenty five per cent. of average sale price on ad valorem basis for those dispatched for use other than alumina & aluminium metal extraction.
5. Limestone (i) L. D. Grade (less than one and half per cent silica content):

Seventy two rupees per tonne.

(i) L. D. Grade (less than 1.5 per cent. silica content): Ninety rupees

per tonne.

(ii) Others: Sixty three rupees per


(ii) Others: Eighty rupees per tonne

This information was given by the Union Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi in a written reply in Rajya Sabha

About IIPnews

Leave a Reply

Your email address will not be published. Required fields are marked *



Check Also

Efforts to Curb Illegal Mining

The Government has vested power in the State Governments for enacting laws to check illegal ...

Investors conclave on commercial coal mines auction and opportunities in mining sector held in Bengaluru

The Ministry of Coal and the Ministry of Mines jointly held the Investors’ conclave on ...

Treatment of Mine Water

As per Rule 41 of the Mineral Conservation and Development Rules (MCDR), 2017, leaseholders are ...

Illegal mining of beach sand minerals

Ministry of Mines has invited comments/suggestions of the stakeholders viz, Central Government Ministries/Departments, States Governments ...

Coal Ministry Expects Operationalization of 58 Coal Blocks During 2022-23; Targets 138.28 Million Ton Coal Production

The Ministry of Coal has allocated coal blocks for captive end use and sale of ...

Ministry of Coal with the support of Power, Steel and Mines Ministries organizes National Mineral Congress in Bhubaneswar

The Ministry of Coal organized the National Mineral Congress in Bhubaneswar today with the support ...

Shri Pralhad Joshi Launches Auction of 122 Coal/ Lignite Mines Including 18 New Mines

Including 18 new coal mines, the Ministry of Coal has placed on offer 122 coal ...

Details of Amount Collected & Activities Under District Mineral Foundation Funds

Till December 2021, ₹ 57,411 crore has been collected under District Mineral Foundation (DMF) in ...

Ministry of Coal Auctions 32 Coal Mines So Far

Total of 32 coal mines have been auctioned by Ministry of Coal from FY 2016-17 ...

Amendment of the Minerals (Evidence of Mineral Contents) Rules, 2015 and the Mineral (Auction) Rules, 2015 to facilitate identification of mineral blocks for auction for grant of Composite Licence

Ministry of Mines has notified the Minerals (Evidence of Mineral Contents) Second Amendment Rules, 2021 ...

WP2Social Auto Publish Powered By : XYZScripts.com