Royalty Rates for Mining of Lithium, Niobium and Rare Earth Elements - amendment of Second Schedule of the Mines and Minerals (Development and Regulation) Act, 1957 (‘MMDR Act’)

The Union Cabinet has approved an amendment to the Mines and Minerals (Development and Regulation) Act, 1957, specifying the rate of royalty for Lithium, Niobium, and Rare Earth Elements (REEs). The royalty rate for Lithium is 3% of the London Metal Exchange price, for Niobium is 3% of the Average Sale Price (both for primary and secondary sources), and for REEs is 1% of the Average Sale Price of Rare Earth Oxide. The amendment also delisted six minerals, including Lithium and Niobium, from the list of atomic minerals, allowing concessions for these minerals to private sector through auction. The Central Government will auction mining lease and composite license of 24 critical and strategic minerals, including Lithium, Niobium, and REEs.