Mining Royalty Calculator (India)
Mining royalty in India is charged either as a percentage of the average sale value of the mineral dispatched, or as a fixed amount per tonne, depending on the mineral. The rate for each mineral is set in the Second Schedule of the MMDR Act 1957. On top of royalty, two further statutory contributions are payable: the District Mineral Foundation (DMF) and the National Mineral Exploration Trust (NMET). Both are calculated as percentages of the royalty, not of the sale value.
Worked example
Iron ore is charged at 15% of average sale price. Dispatching 100 tonnes at ₹5,000 per tonne gives a sale value of ₹5,00,000 and royalty of ₹75,000. For a lease granted before 12 January 2015 the DMF rate is 30% of royalty, adding ₹22,500, and NMET at 2% of royalty adds ₹1,500 — a total statutory cost of ₹99,000, or ₹990 per tonne.
- Sale value
- ₹5,00,000
- Royalty
- ₹75,000
- DMF (10% of royalty)
- ₹7,500
- NMET (2% of royalty)
- ₹1,500
- Total statutory cost
- ₹84,000
- Per tonne
- ₹840
Rates and sources
| Mineral | Grade | Rate | Effective from | Source |
|---|---|---|---|---|
| Iron ore | CLO, lumps, fines and concentrates — all grades | 15% of sale value | 2014-09-01 | MMDR Act 1957, Second Schedule (subs. by G.S.R. 630(E)) |
| Chromite | — | 15% of sale value | 2014-09-01 | MMDR Act 1957, Second Schedule (subs. by G.S.R. 630(E)) |
| Manganese ore | Ore of all grades | 5% of sale value | 2014-09-01 | MMDR Act 1957, Second Schedule (subs. by G.S.R. 630(E)) |
| Manganese ore | Concentrates | 1.7% of sale value | 2014-09-01 | MMDR Act 1957, Second Schedule (subs. by G.S.R. 630(E)) |
| Bauxite and laterite | Non-metallurgical grade | 25% of sale value | 2014-09-01 | MMDR Act 1957, Second Schedule (subs. by G.S.R. 630(E)) |
| Limestone | L.D. grade (less than 1.5% silica) | ₹90/t | 2014-09-01 | MMDR Act 1957, Second Schedule (subs. by G.S.R. 630(E)) |
| Limestone | Others | ₹80/t | 2014-09-01 | MMDR Act 1957, Second Schedule (subs. by G.S.R. 630(E)) |
DMF and NMET rates
- DMF — Mining lease granted on or after 12 January 2015: 10% of royalty
- DMF — Mining lease granted before 12 January 2015: 30% of royalty
- NMET: 2% of royalty (MMDR Act 1957, section 9C(4))
Metallurgical-grade bauxite is not listed: its royalty is 0.60% of the London Metal Exchange aluminium price on contained metal, which this calculator does not model. Rates are reproduced from the cited sources and are not legal advice — confirm against the current notification before filing.
Automating this on every dispatch
Royalty, DMF and NMET are recomputed on every consignment. iCeipts calculates them automatically from weighbridge data as part of mining ERP, reconciles the quantities against mineral transit passes, and syncs the result to i3MS.
Request a demo to see royalty reconciliation on your own dispatch data.