Cabinet rationalises royalty on Graphite, Caesium, Rubidium and Zirconium

The Union Cabinet rationalised royalty rates of Graphite, Caesium, Rubidium and Zirconium minerals Wednesday. An official statement said these are important minerals for high-tech applications and energy transition.

Royalty has been fixed at 2% of Average Sale Price (ASP) of Caesium and Rubidium chargeable on the metal contained in the ore produced. It is kept at 1% for Zirconium.

For Graphite with eighty per cent or more fixed carbon, royalty will now be 2% of ASP on ad valorem basis. For Graphite with less than eighty per cent fixed carbon, 4% of ASP on ad valorem basis will be charged as royalty.


Graphite and Zirconium are also among the 24 critical and strategic minerals listed in the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).

The decision will promote auction of blocks containing these minerals but will also encourage production of associated critical minerals found with them, such as Lithium, Tungsten, REES, and Niobium, among others, the statement added.