Union Cabinet approves royalty rates for mining of 12 critical and strategic minerals including Beryllium, Cadmium, Cobalt, Tungsten, Vanadium etc.

Posted 02 Mar 2024

Updated 27 Mar 2024

2 min read

This would enable the Central Government to auction blocks for these 12 minerals for first time in India.
For specifying royalty, Cabinet approved the amendment of Second Schedule (containing royalty rates) to the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957.
- Royalty means payment made to owner of certain types of rights (government as mineral rights holder) by those who are permitted to exercise such rights.
MMDR Amendment Act 2023 had listed 24 critical and strategic minerals in Part D of First Schedule of MMDR Act.
- Critical and strategic minerals are those minerals that are essential for economic development and national security but their supply is limited and subject to disruption.

Significances of Critical Minerals
- Foundation of modern technology such as smartphones, electric vehicles, semiconductors etc.
- Role in manufacturing of clean energy technologies e.g. solar panels, advanced batteries etc.
- Strategic and geopolitical significance with usage in frontier technologies, defence equipment and concentrated supply chains.

Concerns associated with Critical Minerals for India
- Despite significant reserves (e.g. rare earth elements (REEs), titanium, thorium), India lacks commercial production capability due to high exploration and extraction costs.
- High import dependency on few countries like DR Congo, Australia, and China.

Identification of 30 critical minerals crucial for self-reliance.
India joined the Mineral Security Partnership (MSP) to bolster critical minerals supply chains.
Partnership with Australia for lithium and cobalt and with Argentina for lithium.
Khanij Bidesh India Limited (KABIL) formed to identify, acquire, process and make commercial use of strategic minerals in overseas locations for supply in India.

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