The Cabinet Ministers Meeting was held and Ministers supported to amend the Mineral Law of Mongolia“ and present the draft amendment to SGK after adding comments from the Cabinet Ministers.
When developing the draft, the initiators received opinion from the National Mining Association of Mongolia, according to the direction by the Government, and the Minister for Finance and Minister for Mineral Resource and Energy met with the representatives of mining companies.
The National Mining Association and mining companies supported the draft amendment. The reasons are as follows:
• To set the maximum royalty fee at 2.5% on extra income derived by the mineral product price surge.
• To increase the market price levels for fluorite and to set the maximum royalty fee at 5% on extra income derived by the mineral product surge
• If iron ore transportation cost exceeds 50% of its market price or $33 per ton, the nominal price will be calculated at $70 instead of $30
• To adopt coal classification standard of Mongolia
Ministry of Finance, Ministry of Mineral resource and Energy will study the proposal and approved the comment on fluorite and iron ore, adding into the draft law.
Also the Ministry of Mineral Resource and Energy and “Nuurs” (Coal) Association of Mongolia agreed upon the classification coal as “raw” and “processed”.
But, the Ministry declined the royalty fee cap amount comment.