\nIndia’s federal government has approved an increase in mining royalties for various minerals including iron ore, copper, zinc and lead, government officials said Wednesday.<\/p>\n
Two mining ministry officials, who didn’t want to be named, told Dow Jones Newswires that India’s cabinet committee on economic affairs has approved the proposal for changes in royalties on minerals other than coal, and a formal notification with immediate effect is expected this week.<\/p>\n
… The change in rates will increase states’ annual revenue from royalties to 46.3 billion rupees ($968.6 million) from 22.88 billion rupees.<\/p>\n
… The officials said the government will levy a 10% value-added or ad valorem royalty on iron ore mining.<\/p>\n
For iron ore miners, the new royalty will mean switching to a tax regime under which they will be charged based on the market value of the minerals compared with the existing system of flat rates based on weight, the officials said.<\/p>\n
At present, the government charges a fixed royalty of up to 27 rupees a metric ton on different grades of iron ore.<\/p>\n
Iron ore spot prices in the local market may rise by about 10% in the near future, … said Rahul Baldota, … But he added that iron ore producers in India, the world’s third-largest supplier of the commodity, will absorb the cost for exports in order to remain competitive.<\/p>\n
… India already charges value-added royalty rates for zinc, copper and lead, but the rates charged will now increase.<\/p>\n
The government will charge an 8% royalty on zinc ore, up from 6.6% earlier, while the rate on copper will rise to 4.2% from 3.2%. The royalty on lead ore will go up to 7% from 5%.<\/p>\n
On bauxite used for other than alumina and aluminum extraction and exports, a royalty of 25% will be charged. For use in alumina and aluminum extraction, the rate will be 0.5%. Previously, no royalties were charged.<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"
(Thanks to Umashankar babu for the tip.) Following is an excerpt from a report in the Wall Street Journal. India’s federal government has approved an increase in mining royalties for various minerals including iron ore, copper, zinc and lead, government officials said Wednesday. Two mining ministry officials, who didn’t want to be named, told Dow […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[467,214,408,129,361,128,40,119],"tags":[],"class_list":["post-2582","post","type-post","status-publish","format-standard","hentry","category-ad-valorem","category-bauxite","category-chromite","category-gemstones","category-granite","category-iron-ore","category-orissa-mining-and-minerals","category-mining-royalty"],"_links":{"self":[{"href":"https:\/\/www.orissalinks.com\/orissagrowth\/wp-json\/wp\/v2\/posts\/2582","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.orissalinks.com\/orissagrowth\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.orissalinks.com\/orissagrowth\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.orissalinks.com\/orissagrowth\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.orissalinks.com\/orissagrowth\/wp-json\/wp\/v2\/comments?post=2582"}],"version-history":[{"count":0,"href":"https:\/\/www.orissalinks.com\/orissagrowth\/wp-json\/wp\/v2\/posts\/2582\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.orissalinks.com\/orissagrowth\/wp-json\/wp\/v2\/media?parent=2582"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.orissalinks.com\/orissagrowth\/wp-json\/wp\/v2\/categories?post=2582"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.orissalinks.com\/orissagrowth\/wp-json\/wp\/v2\/tags?post=2582"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}