The decision to fix rates for graphite, cesium, rubidium and zirconium was taken under the Critical Minerals Mission. This is expected to speed up the auction of mines of these minerals. Royalty will be available at 2% of average selling price (ASP) of metal produced on cesium and rubidium, 1% on zirconium, and 2% of ASP on graphite having 80% or more carbon and 4% of ASP on graphite having less than 80% carbon.
What will be the benefits of this decision?
The Government believes that setting royalties based on market prices will ensure a more fair balance between royalties for different qualities of graphite. This will increase domestic production and reduce our dependence on imports. Supply chain disruptions will be reduced and employment opportunities will be created.
Where is graphite used?
Graphite is important for electric vehicle (EV) batteries. It is mainly used to make anodes in batteries. This improves electrical conductivity and increases charging capacity. However, India imports 60 percent of its graphite requirements from other countries. Currently, nine graphite mines are under construction in India and 27 new mining blocks have been auctioned.
What is Zirconium used for?
Zirconium is a highly useful metal that is used in many industries. It is primarily used in nuclear power, aircraft and aerospace, healthcare and general manufacturing.
What is the use of cesium?
Cesium is mainly used in high-tech electronics. Its unique properties include its corrosion resistance and its stability at extremely high temperatures. It is used primarily in atomic clocks, GPS systems, cancer treatments, and other medical devices.
Rubidium Uses and Auction News
Rubidium is used in the manufacture of special glasses. These glasses are used in fiber optics, telephone systems, and night vision devices. The central government issued a notification on September 16 for the sixth round of auction of essential minerals. The auction includes five blocks of graphite, two blocks of rubidium, and one block each of cesium and zirconium. Once the royalty rates are finalized by the Union Cabinet, it will be easier for bidders to accurately estimate the auction prices.