Royalty Rates for Minerals
Royalty Rates for Minerals
In a Statement is laid on the table of the Lok Sabha, The Minister for Mines
and Steel Shri Narendra Singh Tomar said that the rates of royalty for minerals
other than minerals notified as minor minerals under section 3 (e) of the MMDR
Act, 1957 are given inANNEXURE. The Ministry of Mines has revised the
rates of royalty and dead rent for major minerals (other than coal, lignite and
sand for stowing) with effect from 1st September 2014, which
have been published in the Gazette of India vide Notification No. 630(E) and
631(E) dated 1st September, 2014. The royalty is fixed on ad
valorem basis, while for some minerals it is fixed on tonnage basis.
The rates of royalty for minerals, including iron ore and bauxite, are
uniformly applicable for all States.
The Union Government has not received any request from State Government for
increasing the royalty rates of minerals after revising the rates of royalty on
1.9.2014.
The Mines and
Minerals (Development and Regulation) (MMDR) Act, 1957 was amended
through the MMDR Amendment Ordinance, 2015, which was promulgated on the 12th January,
2015. The MMDR Amendment Bill, 2015 to replace the MMDR Amendment Ordinance,
2015 was passed by the Parliament and has come into force with effect from 12th January,
2015.
The most important provision of the MMDR Amendment Act, 2015 is the grant of
mineral concessions, for major minerals including iron ore, through auction by
competitive bidding which is a transparent and non-discriminatory method and
which will also obtain for the State Government its fair share of value of the
mineral resources.
The other important provisions of the MMDR Amendment Act,
2015 are:
(i) Transition provisions for
extension of existing leases to obviate disruptions in supply of ore and to
ensure regular supply of raw material to the industry;
(ii) Establishment of District
Mineral Foundation for the interest and benefit of persons, and areas affected
by mining related operations;
(iii) Assured tenure and easy
transferability of mineral concessions granted through auction;
(iv) Establishment of National
Mineral Exploration Trust for regional and detailed exploration; and
(v) Stricter penalty provisions to
deter illegal mining.
Rates of royalty for minerals
other than minerals notified as minor minerals under section 3(e) of the MMDR
Act, 1957
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1.
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Apatite and Rock Phosphate:
(i) Apatite
(ii) Rock Phosphate
(a) Above 25% P2O5
(b) Upto 25% P2O5
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Five per cent. of average
sale price on ad valorem basis.
Twelve and half per cent. of
average sale price on ad valorem basis.
Six per cent. of average
sale price on ad valorem basis.
|
|
2.
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Asbestos:
(i) Chrysotile
(ii) Amphibole
|
Eight Hundred and Eighty rupees per tonne.
Fifteen per cent. of average
sale price on ad valorem basis.
|
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3.
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Bauxite:
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(a) Metallurgical Grade:
Zero point six zero per cent. of London Metal
Exchange Aluminium metal price chargeableon the contained aluminum metal in oreproduced
for those dispatched for use in alumina and aluminium metal extraction.
(b) Non Metallurgical Grade:
Twenty five per cent. of average sale price onad valorem basis for
those dispatched for use other than alumina & aluminium metal extraction.
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4.
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Brown Ilmenite (Leucoxene),
Ilmenite, Rutile and Zircon:
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Two per
cent. of average sale price on ad valorem basis.
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5.
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Cadmium:
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Fifteen per
cent. of average sale price on ad valorem basis.
|
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6.
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Coal (including Lignite):
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*
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7.
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Chromite:
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Fifteen per
cent. of average sale price on ad valorem basis.
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8.
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Columbite-tantalite:
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Ten per
cent. of average sale price on ad valorem basis.
|
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9.
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Copper:
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Four point six two per cent. of London Metal
Exchange Copper metal price chargeable on the contained copper metal in ore
produced.
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10.
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Diamond:
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Eleven point five per cent. of average sale price on ad valorem basis.
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11.
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Fluorspar:
(also called fluorite)
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Eight per
cent. of average sale price on ad valorem basis.
|
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12.
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Garnet:
(i) Abrasive
(ii) Gem
|
Four per
cent. of average sale price on ad valorem basis.
Ten per
cent. of average sale price on ad valorem basis.
|
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13.
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Gold:
(i) Primary
(ii) By-product gold
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Four per cent. of London Bullion Market
Association Price (commonly referred to as London Price) chargeable on the
gold metal in ore produced.
Three point three per cent. of London
Bullion Market Association Price (commonly referred to as London Price)
chargeable on the by-product gold metal actually produced.
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14.
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Graphite:
(i) With 80 per cent. or more fixed carbon
(ii) With 40 per cent. or more fixed carbon but
less than 80 per cent. fixed carbon
(iii) With 20 per cent. or more fixed carbon but
less than 40 per cent. fixed carbon
(iv) With less than 20 per cent. fixed carbon
|
Two hundred and twenty-five rupees per tonne.
One hundred and fifty rupees per tonne.
Sixty-five rupees per tonne.
Twenty-five rupees per tonne.
|
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15.
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Iron Ore:
(CLO, Lumps, fines and concentrates all grades)
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Fifteen per
cent. of average sale price on ad valorem basis.
|
|
16.
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Lead:
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(a) Eight point five per cent. of London Metal
Exchange Lead metal price chargeable on the contained lead metal in ore produced.
(b) Fourteen point five per cent. of London Metal
Exchange Lead metal price chargeable on the contained lead metal in the
concentrate produced.
|
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17.
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Limestone:
(i) L. D. Grade (less than 1.5 per cent. silica
content)
(ii) Others
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Ninety rupees per tonne.
Eighty rupees per tonne.
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18.
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Limeshell:
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Eighty rupees per tonne.
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19.
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Magnesite:
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Three per
cent. of average sale price on ad valorem basis.
|
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20.
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Manganese Ore:
(i) Ore of all grade
(ii) Concentrates
|
Five per
cent. of average sale price on ad valorem basis.
One point seven per cent. of average sale price on ad valorem basis.
|
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21.
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Marl:
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Sixty rupees per tonne.
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22.
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Monazite:
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One hundred and twenty-five rupees per tonne.
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23.
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Nickel:
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Zero point one two per cent. of London Metal
Exchange Nickel metal price chargeable on the contained nickel metal in ore
produced.
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24.
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Pyrites:
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Two per
cent. of average sale price on ad valorem basis.
|
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25.
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Ruby:
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Ten per
cent. of average sale price on ad valorem basis.
|
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26.
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Sand for stowing:
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**
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27.
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Sillimanite:
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Two point five per cent. of average sale price on ad valorem basis.
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28.
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Silver:
(i) By-product
(ii) Primary Silver
|
Seven per cent. of London Metal Exchange Price
chargeable on by-product silver metal actually produced.
Five per cent. of London Metal Exchange Silver
Metal Price chargeable on the contained silver metal in ore produced.
|
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29.
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Tin:
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Seven point five per cent. of London Metal
Exchange Tin metal price chargeable on the contained tin metal in ore
produced.
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30.
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Tungsten:
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Twenty rupees per unit per cent. of contained WO3 per
tonne of ore and on pro rata basis.
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31.
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Uranium:
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Two per cent. of annual compensation amount
received by M/s. Uranium Corporation of India Ltd., to be apportioned among
the States on the basis of data provided by Department of Atomic Energy.
|
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32.
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Vanadium:
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Twenty per
cent. of average sale price on ad valorem basis.
|
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33.
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Vermiculite:
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Five per
cent. of average sale price on ad valorem basis.
|
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34.
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Wollastonite:
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Fifteen per
cent. of average sale price on ad valorem basis.
|
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35.
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Zinc:
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(a) Nine point five per cent. of London Metal
Exchange Zinc metal price on ad valorembasis chargeable on
contained zinc metal in ore produced.
(b) Ten per cent. of London Metal Exchange Zinc
metal price on ad valorem basis chargeable on contained zinc
metal in concentrate produced.
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36.
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All other minerals not herein before specified
(Kyanite, Perlite, Rock Salt, Selenite etc.)
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Twelve per
cent. of average sale price on ad valorem basis.
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*****
Welfare of People in Mining
Areas
The Mines and Minerals
(Development and Regulation) Act, 1957 was amended through the MMDR Amendment
Act, 2015 which was published in the Gazette of India on 27th March, 2015.
Section 9B of the MMDR Amendment Act, 2015, provides for setting up of District
Mineral Foundation (DMF) in every district affected by mining
activities. The funds of DMF are to flow as payment from concession holders at
a specified rate. Funds so collected are to be used to work for the interest
and benefit of persons, and areas, affected by mining related operations. State
Governments are empowered to frame rules for the manner in which DMF shall work
for the interest and benefit of persons and areas affected by mining as also
the composition and functions of DMF.
To facilitate synergy in implementation of DMF scheme across the States, the Government of India has also launched Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY). The objective of PMKKKY scheme is (a) to implement various developmental and welfare projects/programs in mining affected areas that complement the existing ongoing schemes/projects of State and Central Government; (b) to minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts; and (c) to ensure long-term sustainable livelihoods for the affected people in mining areas.
The DMFs will implement the PMKKKY scheme using the funds generated by the contribution to it. The Central Government has issued a directive to the State Governments, under Section 20A of the MMDR Act, 1957, laying down the guidelines for implementation of PMKKKY and directing the States to incorporate the same in the rules framed by them for the DMFs. The DMFs are deemed to have come into existence with effect from 12.01.2015. Hence there are no figures in respect of funds allocated, released and spent by the DMFs during each of the last three years. The detail of these amounts is not maintained centrally.
This information was given by Minister of State Sh. Vishnu Deo Sai in reply to a question in Lok Sabha today.
To facilitate synergy in implementation of DMF scheme across the States, the Government of India has also launched Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY). The objective of PMKKKY scheme is (a) to implement various developmental and welfare projects/programs in mining affected areas that complement the existing ongoing schemes/projects of State and Central Government; (b) to minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts; and (c) to ensure long-term sustainable livelihoods for the affected people in mining areas.
The DMFs will implement the PMKKKY scheme using the funds generated by the contribution to it. The Central Government has issued a directive to the State Governments, under Section 20A of the MMDR Act, 1957, laying down the guidelines for implementation of PMKKKY and directing the States to incorporate the same in the rules framed by them for the DMFs. The DMFs are deemed to have come into existence with effect from 12.01.2015. Hence there are no figures in respect of funds allocated, released and spent by the DMFs during each of the last three years. The detail of these amounts is not maintained centrally.
This information was given by Minister of State Sh. Vishnu Deo Sai in reply to a question in Lok Sabha today.
*****
Conservation of Natural
Resources
The National Mineral Policy
(NMP), 2008 recognizes that the extraction of minerals closely impacts other
natural resources like land, water, air and forest. NMP, 2008 inter-alia
enunciates that:
(i) conservation of minerals shall be construed not in the restrictive sense of abstinence from consumption or preservation for use in the distant future but as a positive concept leading to augmentation of reserve base through improvement in mining methods, beneficiation and utilisation of low grade ore and rejects and recovery of associated minerals.
(ii) all mining shall be undertaken within the parameters of a comprehensive Sustainable Development Framework which, inter-alia, includes guiding principles for a miner to leave the mining area in a better ecological condition after mining and for optimum utilization of the country’s natural mineral resources.
Section 18 of Mines and Minerals (Development and Regulation) Act, 1957 empowers Central Government to frame rules for the conservation and systematic development of minerals and for the protection of environment by preventing or controlling any pollution which may be caused by prospecting or mining operations. Accordingly, Mineral Conservation and Development Rules (MCDR), 1988 were framed wherein Rules 31 to 41 are on regulation of environmental aspects of mining. As regulators, Indian Bureau of Mines (IBM) (a subordinate office of the Ministry of Mines) and State Governments approve the mining plan /scheme of mining for systematic and optimum utilisation/extraction of mineral.
The Ministry of Environment, Forests and Climate Change has notified the Environment Impact Assessment (EIA) Notification, 2006 on 14th September, 2006 under the provisions of Environment (Protection) Act, 1986 to regulate the grant of environment clearance for various projects including mining projects. The impact on environment due to mining projects is assessed by an EIA study. Based on the same, Environmental Management Plan is prepared which is considered and the Environment Clearance is granted stipulating conditions to regulate impact on environment due to the project.
The Central Government while according approval under the Forest (Conservation) Act, 1980 stipulates appropriate mitigative measures, such as, creation and maintenance of compensatory afforestation, realization of Net Present Value of the diverted forest land, implementation of wildlife conservation plan (wherever required), phased reclamation of mined out area, demarcation of boundary of mining lease etc. Safeguards are in place to ensure that approvals under the Forest (Conservation) Act, 1980 for diversion of forest land for mining are accorded only after ascertaining that the area of forest land to be diverted is bare minimum and its diversion for nonforest purpose/ mining is unavoidable.
This information was given by Minister of State Sh. Vishnu Deo Sai in reply to a question in Lok Sabha today.
(i) conservation of minerals shall be construed not in the restrictive sense of abstinence from consumption or preservation for use in the distant future but as a positive concept leading to augmentation of reserve base through improvement in mining methods, beneficiation and utilisation of low grade ore and rejects and recovery of associated minerals.
(ii) all mining shall be undertaken within the parameters of a comprehensive Sustainable Development Framework which, inter-alia, includes guiding principles for a miner to leave the mining area in a better ecological condition after mining and for optimum utilization of the country’s natural mineral resources.
Section 18 of Mines and Minerals (Development and Regulation) Act, 1957 empowers Central Government to frame rules for the conservation and systematic development of minerals and for the protection of environment by preventing or controlling any pollution which may be caused by prospecting or mining operations. Accordingly, Mineral Conservation and Development Rules (MCDR), 1988 were framed wherein Rules 31 to 41 are on regulation of environmental aspects of mining. As regulators, Indian Bureau of Mines (IBM) (a subordinate office of the Ministry of Mines) and State Governments approve the mining plan /scheme of mining for systematic and optimum utilisation/extraction of mineral.
The Ministry of Environment, Forests and Climate Change has notified the Environment Impact Assessment (EIA) Notification, 2006 on 14th September, 2006 under the provisions of Environment (Protection) Act, 1986 to regulate the grant of environment clearance for various projects including mining projects. The impact on environment due to mining projects is assessed by an EIA study. Based on the same, Environmental Management Plan is prepared which is considered and the Environment Clearance is granted stipulating conditions to regulate impact on environment due to the project.
The Central Government while according approval under the Forest (Conservation) Act, 1980 stipulates appropriate mitigative measures, such as, creation and maintenance of compensatory afforestation, realization of Net Present Value of the diverted forest land, implementation of wildlife conservation plan (wherever required), phased reclamation of mined out area, demarcation of boundary of mining lease etc. Safeguards are in place to ensure that approvals under the Forest (Conservation) Act, 1980 for diversion of forest land for mining are accorded only after ascertaining that the area of forest land to be diverted is bare minimum and its diversion for nonforest purpose/ mining is unavoidable.
This information was given by Minister of State Sh. Vishnu Deo Sai in reply to a question in Lok Sabha today.
*****
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