Cabinet rationalises royalty rates of graphite, caesium, rubidium and zirconium
The Union Cabinet on 12 November 2025 specified or revised royalty rates for graphite, caesium, rubidium and zirconium, minerals important for green energy and high-tech uses, to encourage auction of blocks containing them.
Summary
The Cabinet fixed graphite royalty on an ad valorem basis at 2% of the Average Sale Price (ASP) for grades with 80% or more fixed carbon and 4% for grades below 80%; caesium and rubidium are set at 2% and zirconium at 1% of the ASP of the metal contained in the ore. The government said this will unlock these minerals and associated critical minerals such as lithium, tungsten, rare earths and niobium. Graphite and zirconium are among the 24 critical and strategic minerals in the MMDR Act, 1957; India imports 60% of its graphite, which is a key anode material in EV batteries, while caesium is used in atomic clocks and GPS systems.
Key facts
- Graphite (≥80% fixed carbon)
- 2% of ASP
- Graphite (<80%)
- 4% of ASP
- Caesium; Rubidium
- 2% of ASP of metal
- Zirconium
- 1% of ASP of metal
- Critical list
- Graphite & zirconium among 24 in MMDR Act
- Graphite imports
- 60% of requirement
Practice MCQs 3 questions
Under the royalty rates approved by the Cabinet in November 2025, what is the royalty on graphite with 80% or more fixed carbon?
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Correct answer: C — 2% of ASP
Graphite with 80% or more fixed carbon attracts 2% of ASP; graphite with less than 80% fixed carbon attracts 4%.
Consider the following statements in the context of the Cabinet decision on mineral royalties of 12 November 2025: 1. Graphite and zirconium are among the 24 critical and strategic minerals listed in the MMDR Act, 1957. 2. India imports about 90% of its graphite requirement. Which of the statements given above is/are correct?
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Correct answer: A — 1 only
Graphite and zirconium are among the 24 critical and strategic minerals in the MMDR Act. India imports 60%, not 90%, of its graphite requirement.
Which of the minerals covered by the November 2025 royalty decision is mainly used in atomic clocks and GPS systems?
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Correct answer: D — Caesium
The Cabinet release says caesium is mainly used in high-tech electronics, particularly atomic clocks and GPS systems.