On October 11, 2023, the government approved royalty rates for mining of three critical and strategic minerals: Lithium, Niobium, and Rare Earth Elements (REEs).
- This approval will enable the Central Government to auction blocks for these minerals for the first time.
- Lithium and REEs have gained importance in India’s efforts to transition to clean energy and achieve net-zero emissions by 2070.
- The royalty rate for Lithium will be three percent of the London Metal Exchange price, while the rate for Niobium will be three percent of the Average Sale Price. Rare Earth Elements (REEs) will have a royalty rate of one percent of the Average Sale Price of Rare Earth Oxide.
- In July of the same year, the Mines and Minerals (Development and Regulation) Amendment Act 2023 was passed in Parliament.
- The Act introduces an exploration license for deep-seated and critical minerals, aimed at encouraging private sector participation in mineral exploration.
- Six minerals, including Lithium and Niobium, were delisted from the list of atomic minerals, allowing concessions for these minerals to be granted to the private sector through auctions.
Q.: What are the three critical and strategic minerals for which royalty rates were approved by the government on October 11, 2023?
a. Gold, Silver, and Platinum
b. Lithium, Niobium, and Rare Earth Elements (REEs)
c. Copper, Iron, and Aluminum
d. Diamond, Ruby, and Sapphire
Ans : b. Lithium, Niobium, and Rare Earth Elements (REEs)