Acceding to long-pending requests of mineral-rich states, the Union Cabinet on Wednesday decided to raise the mining royalty rates, the first in five years for many of them. The rate of royalty on iron ore will be 15% from 10% now.
Royalty is a tax levied by the government on miners in lieu of transfer of ownership rights of mines. While the government views it as a source of revenue, industrialists look at it as part of production costs. The proposals for the Cabinet approval were based on the recommendations of a study group set up by the UPA government in 2011.

Source - http://www.financialexpress.com