India Increases Royalty Charged on Iron Ore, Copper, Bauxite

Aug. 17 (Bloomberg) -- India increased the royalty it charges from mining companies on iron ore to 10 percent to help the nation’s states earn more revenue. The government notified on Aug. 13 that all grades of iron ore will attract the same ad valorem royalty, Mines Minister B.K. Handique said in an interview today. Cabinet approval for the measure was accorded on July 30. The annual earnings of states from mining royalty will more than double to 46.3 billion rupees (946 million) annually from 22.8 billion rupees, he said. The government earlier charged as much as 27 rupees a ton for iron ore lumps and 19 rupees a ton for fines. Out of every 100 tons of iron ore produced in India, 60 tons are fines and the rest are lumps. The government also increased royalty on diamonds, zinc, lead, copper, bauxite, graphite and gold, he said.