Merchant Miners may face Royalty revision and Mineral Resource Tax
The government is expecting to revise the royalty rates on Iron Ore which is currently ten percent in the minerals rich state. The state of Orissa which has almost 35% of total Iron Ore reserves of India is also looking to impose the mineral resource rent to fifty percent on the guidelines on Australia which has announced the mineral resource rent of thirty percent which will be applicable on iron ore from July1, 2012.
The mining companies are making almost profit of eighty percent from mining and supplying iron ore from the iron ore rich state of Orissa. The government will use the extra royalty for development works and jobs.
The government sources believe that the royalty has to be revised along with the implementation of mineral resource tax. The profits made by merchants in iron ore industry is the highest in comparison to any other industry in India.