Union Cabinet clears new royalty rates of critical minerals

13 NOVEMBER 2025

Seeking to reduce import dependence and vulnerabilities in the supply chain of critical minerals, the Union Cabinet approved the rationalisation of royalty rates of graphite, caesium, rubidium, and zirconium.
With the rationalisation structure, graphite, wherein royalty was previously sought on per tonne-basis (that is, a fixed amount for a specific weight of ore), will now be charged on an ad valorem basis.
Graphite with less than 80% fixed carbon content will be subject to 4% royalty of the average sale price, whilst that with 80% or more carbon content would attract 2%.
Caesium and rubidium would be subject to a royalty rate of 2% on the average sale price based on the specific metal contained in the ore produced.
A royalty rate of 1% would apply to zirconium.
The Cabinet said that the decision to rationalise would promote the auction of mineral blocks of caesium, rubidium, and zirconium.