Cabinet Clears New Royalty Rates for Key Tech Minerals
COAL & MINING

Cabinet Clears New Royalty Rates for Key Tech Minerals

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved new and revised royalty rates for four critical minerals—caesium, graphite, rubidium and zirconium—aimed at accelerating mineral auctions, boosting domestic output and reducing import dependence. The revised royalty structure is as follows:

• Caesium: 2 per cent of Average Sale Price (ASP), chargeable on caesium metal contained in the ore • Graphite: — With 80 per cent or more fixed carbon: 2 per cent of ASP (ad valorem) — With less than 80 per cent fixed carbon: 4 per cent of ASP (ad valorem) • Rubidium: 2 per cent of ASP, chargeable on rubidium metal contained in the ore • Zirconium: 1 per cent of ASP, chargeable on zirconium metal contained in the ore

The Cabinet stated that the decision will help unlock mineral blocks containing caesium, rubidium and zirconium—minerals often found alongside other critical resources such as lithium, tungsten, rare-earth elements and niobium. Switching graphite to an ad valorem royalty structure will ensure royalties reflect market prices across varying grades.

Increasing domestic production is expected to reduce import dependence, strengthen supply-chain security and generate employment.

Graphite, caesium, rubidium and zirconium are essential for high-technology applications and India’s clean-energy transition. Graphite and zirconium are also listed among the 24 critical and strategic minerals identified under the Mines and Minerals (Development and Regulation) Act, 1957.

Graphite is a vital component of electric-vehicle batteries, yet India currently imports around 60 per cent of its requirement. Nine graphite mines are operational, with 27 blocks auctioned and 20 further blocks handed over by GSI and MECL for upcoming auctions. Another 26 blocks remain under exploration.

Zirconium is widely used across nuclear energy, aerospace, healthcare and advanced manufacturing due to its corrosion resistance and heat stability. Caesium plays a key role in ultra-precise electronic applications such as atomic clocks, GPS systems and medical instruments, while rubidium is used in speciality glass, fibre optics, telecommunications and night-vision systems.

On 16 September 2025, the Centre issued a Notice Inviting Tender for the sixth tranche of critical mineral block auctions. This includes five graphite blocks, two rubidium blocks and one each for caesium and zirconium. The newly approved royalty rates will help bidders prepare rational financial bids.

Graphite has been the only critical mineral with a fixed per-tonne royalty since September 2014. With significant grade-wise price variation, the government has now aligned graphite royalties with ad valorem norms, consistent with the recently established 2–4 per cent royalty range for most critical minerals.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved new and revised royalty rates for four critical minerals—caesium, graphite, rubidium and zirconium—aimed at accelerating mineral auctions, boosting domestic output and reducing import dependence. The revised royalty structure is as follows: • Caesium: 2 per cent of Average Sale Price (ASP), chargeable on caesium metal contained in the ore • Graphite: — With 80 per cent or more fixed carbon: 2 per cent of ASP (ad valorem) — With less than 80 per cent fixed carbon: 4 per cent of ASP (ad valorem) • Rubidium: 2 per cent of ASP, chargeable on rubidium metal contained in the ore • Zirconium: 1 per cent of ASP, chargeable on zirconium metal contained in the ore The Cabinet stated that the decision will help unlock mineral blocks containing caesium, rubidium and zirconium—minerals often found alongside other critical resources such as lithium, tungsten, rare-earth elements and niobium. Switching graphite to an ad valorem royalty structure will ensure royalties reflect market prices across varying grades. Increasing domestic production is expected to reduce import dependence, strengthen supply-chain security and generate employment. Graphite, caesium, rubidium and zirconium are essential for high-technology applications and India’s clean-energy transition. Graphite and zirconium are also listed among the 24 critical and strategic minerals identified under the Mines and Minerals (Development and Regulation) Act, 1957. Graphite is a vital component of electric-vehicle batteries, yet India currently imports around 60 per cent of its requirement. Nine graphite mines are operational, with 27 blocks auctioned and 20 further blocks handed over by GSI and MECL for upcoming auctions. Another 26 blocks remain under exploration. Zirconium is widely used across nuclear energy, aerospace, healthcare and advanced manufacturing due to its corrosion resistance and heat stability. Caesium plays a key role in ultra-precise electronic applications such as atomic clocks, GPS systems and medical instruments, while rubidium is used in speciality glass, fibre optics, telecommunications and night-vision systems. On 16 September 2025, the Centre issued a Notice Inviting Tender for the sixth tranche of critical mineral block auctions. This includes five graphite blocks, two rubidium blocks and one each for caesium and zirconium. The newly approved royalty rates will help bidders prepare rational financial bids. Graphite has been the only critical mineral with a fixed per-tonne royalty since September 2014. With significant grade-wise price variation, the government has now aligned graphite royalties with ad valorem norms, consistent with the recently established 2–4 per cent royalty range for most critical minerals.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement