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India's miners fear royalty increases

February 08, 2012 - 16:16 GMT Location: New Delhi

KEYWORDS: India , mining royalties , Metal Bulletin , iron ore , bauxite , H C Daga , Dinsha Patel

India is reviewing the royalty rates paid for mining ten major minerals in the country – including iron ore, bauxite, zinc, lead and copper ore. New rates are expected to be announced by August.

A central government study group including representatives from state governments and industry bodies has already been formed, Indian mines minister Dinsha Patel has announced. The country’s mining industry is now anxiously waiting for the new rates, fearing they will be raised even higher than in the last review in December 2009. “We are concerned [enough] about the existing 10% royalty on iron ore, which is the highest of anywhere in the world,” said H C Daga, vice-president of Federation of Indian Mineral Industries (FIMI), who told Metal Bulletin he would like to see that rate cut by half. Before the 2009 revision of major mineral royalty rates, the rate for iron ore was based on weight; however, since then, it has been calculated according to the value...

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