Chap XXIII.] 
BOTALTIES. 
491 
ly, and it is certain that a substantial increase in the royalty levied by 
Government would still leave a very handsome profit to the operators. 
[The royalty levied in the Panch Mahals district of Bombay is l-J 
annas a ton.] 
In any case, however, a sliding scale of royalties should be drawn up, 
so as to admit of the alteration of the royalty from time to time according 
to the price of manganese-ore per unit, the royalty levied being on a 
basis of 2-2 per cent, of the pit's mouth value of the mineral. In con- 
structing this scale of rovfilr-es it might seem as first sight as if it should 
be so drawn up as to take into account the differences in the quality of 
the ores from different deposits, the different distances of the deposits 
from the rail, the differences in the cost of winning the ores, and the fact 
that contracts for the supply of ore are often made a year or two ahead. 
This would, however, be so exceedingly complicated and so difficult of 
application, and would lead to so many disputes, and also to invidious 
distinctions between different firms, that it is desirable to avoid it. The 
average percentage of manganese in the ores exported from the Central 
Provinces can be taken as about 52. Hence if the royalty be fixed on the 
assumption that all ores are 50 per cent, ores, it would on the average 
be in favour of the operators. Hence, for the construction of what I 
think would be a fair schedule of royalties, I have taken a basis of 50 per 
cent, of manganese in the ores, and the quotations of the price per unit 
of first-grade ore as given in the Mining Journal, London. 
For the calculation of this table of rates it is necessary first to cal- 
culate what would be the pit's mouth value of the ore at the various 
prices per unit. Judging from the figures given in table 50 on page 486, 
a very fair average value for the cost of delivering the manganese- ore 
at the ports of destination would be Rs. 26-14, this being the value for 
the Central Provinces ore exported via Bombay. For the purposes of 
calculation Rs. 27 can be taken. Now the difference between this 
value and the price per ton the ore will fetch at the contract price 
when landed at the port of destination is the actual profit made by the 
operators. The true value at the pit's mouth is obtained by adding to 
this profit the cost per ton of quarrying or mining the ore and stacking it 
on the mine. The average value for this is Rs. 2-12. Now at a price of 
10 pence per unit, the price received per ton of ore is Rs. 31-4. Taking 
the average cost of delivery c.i.f. at the port of destination as Rs. 27, 
then the profit per ton at this price is Rs. 4-4. Adding to this the cost 
of mining, Rs. 2-12, the pit's mouth value works oat at Rs. 7. The 
III K 2 
