Mining royalties are payments made by mining companies to governments or landowners for the right to extract minerals or resources from a specific area. These payments are typically calculated as a percentage of the revenue generated from the sale of the mined materials, ensuring that the community benefits from the extraction of natural resources. The purpose of mining royalties is to provide a fair return to the public for the use of their land and resources. This system helps fund public services and infrastructure, while also promoting responsible mining practices that minimize environmental impact and support sustainable development.