 "Cabinet approves royalty rates for mining of Lithium, Niobium REE")
The Union Cabinet has approved royalty rates for three critical and strategic minerals -- lithium, niobium and rare earth elements (REEs).
This decision follows Additional Mines Secretary Sanjay Lohiya’s announcement on October 5 that the government is set to initiate the auction of critical mineral mines in the coming weeks.
The Cabinet note specifies the royalty rates as follows: 3 per cent of the London Metal Exchange price for lithium, 3 per cent of the average sale price (ASP) for niobium from both primary and secondary sources, and 1 per cent of the ASP for REEs, based on rare earth oxide.
Although the standard practice for minerals lacking a specified rate traditionally pegs the royalty at 12 per cent of the ASP under the Mines and Minerals (Development and Regulation) Act, the government has chosen to amend this approach. The decision stems from the acknowledgement that the existing fixed rate was considerably higher than that of other critical and strategic minerals and exceeded the rates seen in other mineral-producing nations.
The Ministry of Mines has also developed a formula for calculating the ASP of these minerals, streamlining the process of establishing bidding parameters.
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According to the Cabinet statement, this approval for specifying royalty rates will mark the central government's maiden auction of lithium, niobium, and REEs blocks in India.
Beyond lithium, niobium, and REEs, the Central government is actively preparing to initiate the initial round of auctions for critical and strategic minerals, including nickel, the platinum group of elements, potash, glauconite, phosphorite, graphite, and molybdenum soon, the Cabinet note outlined.
The government’s initiative to auction critical minerals coincides with India’s goal of reaching net-zero emissions by 2070. Lithium is extensively used in batteries, niobium finds applications in superalloys and superconductors, and REEs are vital components in electronics and clean energy technologies.
Lithium, niobium and REEs have also emerged as strategic elements due to their usages and geopolitical scenario. “Encouraging indigenous mining would lead to a reduction in imports and setting up of related industries and infrastructure projects. The proposal is also expected to increase generation of employment in the mining sector,” stated the Cabinet note.
Parliament passed the Mines and Minerals (Development and Regulation) Amendment Act, 2023, which became effective on August 17, 2023. This amendment, among its various provisions, removed six minerals, including lithium and niobium, from the list of atomic minerals. Consequently, it now permits concessions for these minerals to be granted to the private sector through auctions.
Further, the amendment provided that mining lease and composite licence of 24 critical and strategic minerals (which are listed in Part D of the First Schedule of the Act), including lithium, niobium, and REEs (not containing uranium and thorium) shall be auctioned by the central government.
Go-ahead to digital tech pact with France
The Union Cabinet approved three separate MoUs with Papua New Guinea, France, Trinidad and Tobago in the field of digital technologies. The MoU with France intends to promote closer cooperation and exchange of information pertaining to digital technologies and will mutually support each participant's goal to promote access to digital technology in their countries, according to an official statement.
"The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved the signing of the Memorandum of Understanding (MoU) between the Ministry of Electronics and Information Technology of the Republic of India and the Ministry of Economy, Finance and Industrial and Digital Sovereignty of the French Republic on cooperation in the field of Digital Technologies," the statement said.
The MoU is likely to enhance bilateral cooperation in digital technologies in the G2G (government-to-government) and B2B (business-to-business) domains.
Nod to establish body for youth development
The Union Cabinet approved establishment of an autonomous body ‘Mera Yuva Bharat’ (MY Bharat) to serve as an overarching enabling mechanism powered by technology for youth development, Union minister Anurag Thakur said.
The body will provide equitable access to youth to actualise their aspirations and build a developed India across the entire spectrum of the government.
Thakur said the primary objective of ‘Mera Yuva Bharat’ is to make it a “whole of government platform for youth development.”
The body will be dedicated to the nation on October 31, the birth anniversary of Sardar Vallabhbhai Patel, he said.