The rates of royalty for the minerals iron ore, chromite ore, and non-metallurgical grade bauxite are fixed on ad valorem basis as a percentage of the Average Sale Price, says Pralhad Joshi

New Delhi : The rates of royalty for the minerals iron ore, chromite ore, and non-metallurgical grade bauxite are fixed on ad valorem basis as a percentage of the Average Sale Price. The rate of royalty for metallurgical grade bauxite is fixed as a percentage of London Metal Exchange (LME) Aliminium metal price chargeable on the contained aluminium metal in ore produced for those dispatched for use in alumina and aluminium metal extraction. Hence the increasing value of minerals as per the market / LME is automatically captured in the ad valorem rates as royalty is fixed as a percentage of the value of minerals.

Royalty rates were last revised on 01.09.2014. The rates of royalty on minerals are revised from time to time under Section 9(3) of the Mines and Minerals (Development and Regulation) Act, 1957.

This information was given by the Union Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi in a written reply in Rajya Sabha today.

Comments are closed.