Indian mining legislation amendments envisage additional royalty payments by state-run iron ore miners

Wednesday, 17 February 2021 15:32:13 (GMT+3)   |   Kolkata
       

India’s proposed amendments to the Mines, Minerals (Development and Regulation) Act 2015 envisages higher royalty payment by government-run iron ore miners for securing direct allocation of iron ore blocks, a government official has said.

Under the proposed amendment to the laws, any government iron ore miner will have to pay 1.5 times additional royalty as such government mining companies are directly granted mining leases of iron ore without participation in auctions. This will translate to an effective royalty rate of 22.5 percent.

It has also been proposed in amendments that captive iron ore miners will be permitted commercial sale of 50 percent of production from mines after additional payment of 1.5 times the royalty rate prevalent.

The Ministry of Mines has put out the amendments for public circulation and is seeking comments from industry stakeholders until February 24, 2021.


Most Recent Related Articles

Ind-Ra: Indian steel exports to remain low in Q4 FY 2020-21

BCCL’s coking coal stock liquidation fails to take off despite price cut

India’s Ministry of Mines proposes additional payment structure for free sale from captive minerals for steelmaking

Resumed operations at three Indian iron ore mines to ease supply shortage

India’s NMDC resumes operations at Donimalai iron ore mines