What are Mineral Royalties? What is the Difference Between Mineral Rights and Royalties?

Mineral royalties are a type of mineral right. A mineral royalty is owned by an investor of the mineral rights who receives mineral royalty payments, a share of the profit, that comes from a mine or the minerals being produced. There are both net and gross royalties. Net royalties deduct production costs, while gross royalties encompass the total value of the minerals, without any deductions.