Abstract: Mineral resource royalty is the economic manifestation of mineral resource ownership benefits. The size of royalty depends on the endowments of mineral resources. Based on the selection and evaluation of different factors, different results may be obtained, which will affect the efficiency of the allocation of resources. In order to improve the objective accuracy and practicability of the assessment results, based on the multiple regression analysis method and the virtual variable method, this paper establishes an assessment model based on the perspective of mineral resources endowment conditions, and verifies the feasibility of the assessment model through the empirical analysis of the iron mine in Anhui Province of China. Results of the study show that, (1) Among the occurrence conditions of iron ore resources, average geological grade, average mining depth, average thickness of ore body, hydrogeological conditions and beneficial or harmful elements have evident effects on mining costs. (2) The influence of mining cost level on royalty rate is negative effect. The study has its realistic significance towards China's proposal of establishing mineral resources royalty system at current stage.