(MENAFN- KNN India) New Delhi, Nov 13 (KNN) The Union Cabinet has approved the specification and revision of royalty rates for four key minerals-Caesium, Graphite, Rubidium, and Zirconium-to facilitate their auction and promote domestic production.

Under the new structure, the royalty rate for Caesium has been set at 2 percent of the Average Sale Price (ASP) of Caesium metal, chargeable on the Caesium content in the ore produced.

Rubidium will also attract a 2 percent royalty on its ASP, while Zirconium will carry a 1 percent royalty on its ASP, both chargeable on the metal contained in the ore.

For Graphite, the rates will now be linked to the ASP on an ad valorem basis-2 percent for grades with 80 percent or more fixed carbon, and 4 percent for those with less than 80 percent fixed carbon.

This replaces the earlier per-tonne basis fixed in 2014, making royalty accruals more responsive to market price variations across grades.

The Cabinet's decision is expected to encourage the auction of mineral blocks containing Caesium, Rubidium, and Zirconium, thereby unlocking these and other associated critical minerals such as Lithium, Tungsten, Rare Earth Elements (REEs), and Niobium.

Enhanced domestic production of these minerals will help reduce import dependence, mitigate supply chain vulnerabilities, and generate employment opportunities.

Caesium, Rubidium, Graphite, and Zirconium are vital for high-technology and energy transition applications.

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

Graphite plays a crucial role in electric vehicle (EV) batteries as an anode material, but India currently imports about 60 percent of its requirements. At present, nine Graphite mines are operational, while 27 blocks have been auctioned.

The Geological Survey of India (GSI) and Mineral Exploration and Consultancy Limited (MECL) have handed over 20 additional blocks for upcoming auctions, with 26 more under exploration.

Zirconium is widely used in nuclear energy, aerospace, healthcare, and manufacturing for its corrosion resistance and high-temperature stability.

Caesium is crucial in high-precision applications, including atomic clocks, GPS systems, and medical instruments such as cancer therapy devices, while Rubidium is used in specialty glass, fibre optics, and night vision technologies.

On September 16, 2025, the Central Government issued a Notice Inviting Tender (NIT) for the sixth tranche of critical mineral block auctions, including five Graphite blocks, two Rubidium blocks, and one block each of Caesium and Zirconium.

The newly approved royalty rates are expected to enable bidders to submit rational and informed financial bids during these auctions.

(KNN Bureau)

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